Decree No. 38/1998/ND-CP detailing the implementation of the Ordinance on thrift and anti-waste

DECREE OF THE GOVERNMENT

Detailed Implementation Regulations for the Decree on Practicing Thrift and Combating Wastefulness

 THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated September 30, 1992;

Pursuant to the Decree on Thrift and Prevention of Waste dated February 26, 1998;

At the proposal of the Minister of Finance,

DECREE: 

PART I
GENERAL PROVISIONS

Article 1. The subjects practicing thrift and combating wastefulness include:

1. Organizations using state budget funds:

a) Administrative and public service agencies;

b) Military units.

2. Organizations whose operational expenses are guaranteed by the state budget:

a) Communist Party of Vietnam;

b) Political and social organizations including: Vietnam Fatherland Front, Vietnam General Confederation of Labor, Ho Chi Minh Communist Youth Union, Vietnam Veterans Association, Vietnam Women's Union, Vietnam Farmers' Union.

3. Social organizations and social-professional organizations partially funded by the state budget according to the State Budget Law.

4. State-owned enterprises.

5. Economic organizations of political organizations, political-social organizations, social organizations, social-professional organizations, people's armed forces units, administrative and public service agencies using state budget capital.

6. All citizens have the obligation to practice thrift and combat wastefulness in production and consumption to reserve capital for development for their own benefit and that of the country.

Article 2

1. The system of norms, standards, and regulations serving as the basis for practicing thrift and combating wastefulness must meet the following requirements:

a) Complete, coherent, and specific in all fields as stipulated in Article 1 of the Decree on Practicing Thrift and Combating Wastefulness;

b) Issued in accordance with the prescribed authority.

2. It is strictly prohibited to issue and implement norms, standards, and regulations contrary to the provisions.

Article 3. State management agencies within the scope of their functions, tasks, and powers must develop, issue, and publicly announce procedures and processes for handling matters; inspection and supervision regulations for implementing these procedures and processes in managing and using state capital and assets to practice thrift and combat wastefulness.

Organizations, based on management regulations issued by competent state authorities, are responsible for developing and issuing internal management procedures and inspection and supervision regulations to practice thrift and combat wastefulness, ensuring they are appropriate to the conditions and requirements of the work.

Article 4

1. Organizations must comply with financial transparency regulations as prescribed by the Prime Minister.

2. Financial transparency regulations include:

a) Regulations on the public disclosure of state budgets at various levels;

b) Regulations on the public disclosure of financial affairs for budgetary units;

c) Regulations on the public disclosure of financial affairs for state-owned enterprises;

d) Regulations on the public disclosure of financial affairs for funds with revenue from contributions by the people.

Chapter II
SPECIFIC PROVISIONS ON PRACTICING THRIFT AND COMBATING WASTEFULNESS

PART 1
PRACTICING THRIFT AND COMBATING WASTEFULNESS IN THE USE OF REGULAR EXPENSES FROM THE STATE BUDGET

Article 5

1. The establishment of new organizations, mergers, divisions, and splits of organizations, and adjustments to administrative boundaries must be linked to actual needs, ensuring economic and social efficiency, national defense, and security, decided by competent state authorities, and when implemented, must thoroughly practice thrift and combat wastefulness.

2. Decisions to establish new organizations, merge, divide, or split organizations contrary to current regulations shall be immediately suspended by competent state authorities; simultaneously, financial authorities shall suspend the allocation of budget funds to implement such decisions. Persons making decisions contrary to regulations shall be subject to disciplinary action or criminal liability depending on the nature and severity of the violation, and if wastefulness occurs, they must compensate for losses. Compensation includes:

a) Salaries paid to hired workers;

Article 6

b) Training costs for reassignment to other jobs;

c) Bonuses, social insurance, and health insurance (if applicable).

3. Dividing or splitting organizations must not increase staffing or salary funds; in cases where it is truly necessary to increase staffing and salary funds, approval from competent state authorities is required.

1. Organizations receiving state budget salaries must comply with staffing and salary regulations prescribed by competent state authorities.

Recruitment of labor must be transparent regarding recruitment needs, qualifications, and conditions for candidates.

2. Implement salary cost-sharing for organizations meeting the following conditions:

a) Having stable functions and tasks decided by competent state authorities;

b) Having established positions and regulations, and standards for officials and civil servants in the unit;

c) Receiving and approving stable staffing quotas from competent state authorities.

Based on ensuring the completion of assigned tasks, organizations implementing salary cost-sharing may use savings from the salary fund to supplement income for officials and civil servants in their unit.

The Ministry of Finance will guide the implementation of salary cost-sharing for organizations meeting the prescribed conditions.

3. Strictly prohibit the use of labor and salary funds exceeding approved quotas.

4. Persons making hiring, employment, promotion, and transfer decisions contrary to job requirements and regulations must revoke those decisions and be subject to disciplinary action or criminal liability as stipulated by law; if wastefulness occurs, they must compensate. Compensation includes:

d) Other related costs.

Article 7. a) Salaries paid to hired workers;

b) Training costs for reassignment to other jobs;

c) Bonuses, social insurance, and health insurance (if applicable).

Procurement and provision of transportation means, equipment, and other assets (collectively referred to as equipment) in organizations are regulated as follows:

1. Procurement and provision of equipment in organizations must comply with norms, standards, and regulations prescribed by competent state authorities.

2. Market average prices at the time of purchase serve as the basis for controlling expenditure on equipment procurement.

c) Domestic production equipment at the same price level as foreign-produced equipment of the same type, but with lower quality and inferior performance.

4. The purchase of equipment that must be tendered shall be carried out in accordance with the bidding regulations prescribed by the competent state agency.

5. The Prime Minister shall stipulate the standards, norms, and usage regimes for small passenger cars.

6. The Ministry of Finance shall stipulate the standards, norms, and usage regimes for purchasing other equipment.

Article 8

1. Organizations must arrange and regulate the use of transportation means within their internal operations in accordance with the intended purpose, within the prescribed standards and norms, to ensure the completion of assigned tasks.

2. The Ministry of Finance shall compile and report to the Prime Minister on the situation of transportation means in administrative agencies, public institutions, and political-social organizations to reallocate from surplus areas to deficit areas as provided by law.

Article 9. Individuals violating the provisions of Article 7 and Article 8 of this Decree shall, depending on the nature and degree of violation, be subject to disciplinary measures such as reprimand, warning, demotion in salary grade, demotion in rank, dismissal, and forced resignation; they may also be held criminally liable according to the law; if damage is caused, compensation must be made.

Compensation shall be made by returning the property once within thirty days from the date of the decision to return it, if there is no ability to return it once, then it shall be deducted gradually from monthly income but not less than 10% and not more than 30% of the total monthly income from salary and allowances (if any).

Article 10

1. The dispatching of officials and civil servants for work assignments must be planned and carried out according to job requirements, with clear objectives, ensuring effectiveness. Travel expenses must be in accordance with the standards and norms prescribed by the competent state agency and must be included in the annual approved budget estimate.

2. Those dispatched for work assignments who fail to reach the designated location or perform the assigned tasks shall bear all related costs themselves. If false invoices or documents are used to claim travel expenses, they shall be subject to disciplinary action and must refund the amount received.

3. The standards and norms for domestic travel expense expenditures must ensure that those dispatched have the ability to cover necessary expenses for food, accommodation, and transportation during the work assignment period, taking into account the specific characteristics of mountainous, island, remote, and far-flung regions.

The Ministry of Finance shall stipulate the standards, norms, and regimes for domestic and international travel expense expenditures and provide guidance on the allocation of travel expense expenditures to organizations.

Article 11

1. The organization of conferences must clearly define the content, number of delegates, time, and appropriate venue, and should not organize unnecessary conferences.

2. National-wide conferences across the country (excluding training sessions) must obtain permission from the Prime Minister; provincial-wide conferences must obtain permission from the Chairman of the Provincial People's Committee.

The duration of organizing a conference shall not exceed three days, and training sessions shall not exceed seven days.

Conference expenses include: hall rental fees, printing costs, beverage expenses, transportation expenses for delegates from their accommodation to the conference venue, delegate meal support expenses, and other necessary expenses.

Conference funding must be within the annual approved budget estimate.

It is strictly prohibited to use conference funds to organize banquets, receptions, gift-giving under any form or for purposes contrary to regulations.

4. The Ministry of Finance shall stipulate the standards, norms, and regimes for conference expenses.

Article 12. Based on the annual approved state budget estimate, implement the allocation of travel and conference expenses to enable organizations to manage and use the state budget efficiently and economically.

The savings achieved through the allocation of travel and conference expenses shall be budgeted and used for other essential needs to enhance the efficiency of management. The use of these savings must comply with current standards and norms and must be reported to the financial authority at the same level.

Article 13

1. Hospitality and ceremonial expenses must be within the annual approved budget estimate.

2. Alcohol, beer, and tobacco shall not be used for hospitality (except in certain cases of hosting foreign guests with special regulations).

3. Hospitality and gift-giving expenses for domestic and foreign guests must be in accordance with the hospitality expenditure standards prescribed by the Ministry of Finance.

Article 14

1. The organization of anniversary celebrations must be thoroughly economical, meaningful, but not ostentatious or formalistic.

2. Nationwide or provincial-wide anniversary celebrations can only be organized every five years if deemed truly necessary and must obtain approval from.

3. The Ministry of Finance shall stipulate the standards, norms, and regimes for anniversary celebration expenses.

Article 15

1. Award ceremonies for commendations, medals, and badges must be combined with occasions such as holidays, anniversaries, or meetings of units and organizations, and must be simple, economical, and not ostentatious or formalistic.

2. The standards, norms, and regimes for award ceremony expenses shall apply the same as for conference expenses.

3. It is strictly prohibited to use public funds or state budget funds to organize receptions for attendees.

Article 16

1. Based on the particularities of each sector and field of work, the Minister of Defense and the Minister of Public Security shall issue regulations on thrift in special expense items in the defense and security sectors.

2. The Ministries of Defense and Public Security shall be responsible for coordinating with the Ministry of Finance to closely monitor and supervise thrift practices within their respective sectors and regularly report to the Prime Minister on special expense items.

PART 2
PRACTICES TO ENSURE ECONOMY AND PREVENT WASTE IN INVESTMENT CONSTRUCTION PROJECTS USING STATE BUDGET FUNDS, STATE FUNDS, AND STATE ASSETS

Article 17. The approval of planning, investment plans, and capital allocation must ensure economic and social efficiency and be commensurate with the capacity of the economy.

Investment projects must be within the planning scheme approved by the competent authority. Any investment decision not included in the planning scheme, not approved by the competent authority, failing to meet the conditions stipulated, and not following the prescribed procedures and formalities shall be suspended and shall not be settled.

Article 18

1. The decision to invest using state capital must be comprehensively reviewed concerning the construction planning, architectural schemes, technology, land use, natural resources, economic and social efficiency, ecological environment protection, financial needs, and other social aspects, ensuring that the project is feasible and meets the requirements set forth.

2. Individuals or organizations making incorrect investment decisions, leading to investments that do not achieve the required economic and social efficiency and causing waste, shall be subject to legal sanctions according to the nature and degree of violation.

Organizations or individuals conducting incorrect project evaluations leading to incorrect investment decisions shall bear joint responsibility and be subject to legal sanctions.

Article 19

1. The preparation of technical design estimates and approvals for construction works of investment projects must comply with construction standards and economic-technical norms established by authorized state agencies, ensuring economic and social efficiency and ecological environmental protection.

2. Organizations or individuals violating regulations on the preparation, evaluation, and approval of technical designs for construction works of investment projects, causing waste, shall compensate and be subject to legal sanctions.

Article 20

1. The evaluation and approval of total budget estimates and construction project budgets for investment projects must strictly follow the approved technical design, economic-technical norms, and unit prices as prescribed by authorized state agencies.

2. Organizations or individuals violating regulations on the evaluation and approval of total budget estimates and construction project budgets for investment projects, causing waste, shall compensate and be subject to legal sanctions.

Article 21

1. Investment projects requiring bidding must be conducted through bidding processes. Construction work bidding must be carried out in accordance with the bidding regulations established by the Government.

2. Organizations or individuals violating regulations on construction work bidding, causing waste, shall compensate and be subject to legal sanctions.

Article 22

1. Contractors must implement in accordance with the approved technical design, economic-technical norms, construction schedule, total budget estimate, project budget, or winning bid price.

2. Project sponsors and investors must supervise construction, inspect and accept individual construction components and the entire project in compliance with the approved technical design, budget estimates, and must be responsible for the quantity and quality of accepted work.

3. Organizations or individuals violating regulations on construction, supervision, and inspection of construction projects, causing waste, shall compensate and be subject to legal sanctions.

Article 23

1. Organizations or individuals disbursing funds for investment projects must ensure timely progress, completed volume, consistency with the design and budget estimates, and must monitor and oversee fund usage.

2. Authorized organizations or individuals disbursing funds improperly managing investment construction capital, causing waste, loss of state assets, shall compensate and be subject to legal sanctions.

"d) Within no more than one working day from the date of receiving the dossier submitted for administrative procedures by the specialized agency assigned by the Provincial People's Committee, the Chairman of the Provincial People's Committee shall issue a notification of the result of the inspection of plant-based food exports or a certificate at the request of the importing country."

1. Upon completion, construction works, individual components, and investment projects must undergo final settlement of construction investment capital as prescribed. For projects spanning multiple years, annual settlements of construction investment costs for completed volumes must be conducted.

2. Organizations or individuals failing to properly settle completed volumes and final settlement of construction investment capital, causing waste, shall compensate and be subject to legal sanctions.

PART 3
PRACTICING ECONOMY AND COMBATING WASTE IN THE MANAGEMENT AND USE OF LAND, OFFICE SPACE, PUBLIC HOUSING, AND NATURAL RESOURCES

Article 25

1. Land allocation and leasing must comply with laws on land management and laws on practicing economy and combating waste.

2. Organizations or individuals allocating or leasing land beyond their authority, exceeding prescribed norms and regulations, causing waste, shall compensate and be subject to legal sanctions.

3. Organizations or individuals receiving leased or allocated land who misuse it or fail to use it as prescribed shall be subject to legal sanctions.

Article 26

1. Office space, public housing, and other architectural works belonging to state property must be used for their intended purposes in accordance with prescribed norms and regulations.

2. Office space may not be used for leasing, conversion to commercial or service establishments, residential purposes, or other unauthorized uses.

3. Organizations or individuals violating regulations on the management and use of office space, public housing, and other architectural works shall be subject to legal sanctions; all revenues derived from unauthorized use must be fully remitted to the state budget.

4. The Prime Minister shall establish norms, standards, and regulations for the use of office space and other architectural works within organizations.

Article 27

1. Management and exploitation of natural resources must comply with legal provisions. State agencies within their functions and responsibilities must regularly inspect and supervise implementation, promptly suspending cases of illegal exploration, exploitation, and use of natural resources causing waste and environmental pollution.

2. Organizations or individuals violating regulations on the management, exploitation, and use of natural resources, causing waste, shall compensate and be subject to legal sanctions.

PART 4

PRACTICING ECONOMY AND COMBATING WASTE IN THE MANAGEMENT AND USE OF CAPITAL AND ASSETS AT STATE ENTERPRISES

Article 28

1. State enterprises must comply with financial systems in managing and utilizing capital and assets, controlling expenses, revenue, income distribution, accounting, and statistics as prescribed by law.

2. On the basis of the economic and technical norms, standards, and expenditure regimes issued by competent state agencies, state-owned enterprises shall establish administrative expenditure norms, reception standards, meeting and transaction regimes within their enterprises and report to the state financial authorities.

Article 29. State-owned enterprises must implement wage systems and income distribution regimes in accordance with the provisions of the State.

The person deciding on labor recruitment, wage payment, and income distribution not in accordance with regulations shall be liable for compensation. The compensation amounts shall be implemented in accordance with Clause 4, Article 6 of this Decree.

Article 30.

1. The purchase and use of transportation means and other management and operation equipment and assets in state-owned enterprises must comply with the norms, standards, and regimes prescribed by the State.

In cases where purchases and installations exceed the norms, standards, and regimes, they must be handled according to the provisions of the law.

2. The General Director, Director, or authorized person who decides on the purchase and installation of transportation means and administrative management equipment of the enterprise, and implements financial expenditures not in accordance with regulations, causing waste, shall be liable for compensation and, depending on the nature and degree of violation, shall be dealt with according to the provisions of the law.

Article 31. The establishment and use of funds in state-owned enterprises must be carried out in accordance with the provisions of competent state agencies. Unauthorized fund establishment is strictly prohibited. In cases where unauthorized funds are discovered, they must be remitted to the state budget.

The person deciding on the establishment of unauthorized funds shall be dealt with according to the provisions of the law.

PART 5

IMPLEMENTATION OF ECONOMY AND WASTE PREVENTION IN PRODUCTION AND CONSUMPTION BY THE PEOPLE

Article 32

1. The Ministry of Culture, Sports and Tourism shall develop model frameworks for organizing festivals, weddings, funerals, and other cultural activities, ensuring thorough economy, healthiness, civility, and preservation of traditional customs and national cultural identity, to mobilize the entire population to implement them, creating public opinion support for these models and criticizing wasteful phenomena that violate traditional customs.

2. People's Councils and People's Committees at all levels, based on the model frameworks, local conditions, and circumstances, shall guide grassroots authorities to cooperate with mass organizations in mobilizing the people to build and implement regulations on organizing festivals, weddings, funerals, and other cultural activities; closely monitor and direct this campaign in their respective areas.

Article 33

1. State agencies have the responsibility to coordinate with the Vietnam Fatherland Front and its member organizations to organize and mobilize cadres, civil servants, public officials, and the people to practice economy and prevent waste according to the model frameworks, regulations, and conventions on organizing festivals, weddings, funerals, and other cultural activities that have been established.

2. Cadres, civil servants, and public officials must set a good example by following the model frameworks, regulations, and conventions on organizing festivals, weddings, funerals, and other cultural activities that have been guided and mobilize the people to join in, forming a widespread mass movement throughout the country.

Chapter III

IMPLEMENTATION

Article 34

1. Ministries, agencies equivalent to ministries, government-affiliated agencies, People's Councils, People's Committees at all levels, state-owned enterprises, and other organizations using state budget funds have the responsibility to implement regulations on practicing economy and preventing waste and to guide subordinate units to properly implement financial transparency regimes. The head of the organization entrusted with managing and using state capital and assets has the direct responsibility to practice economy and prevent waste.

2. Organizations using state budget funds, managing and using state capital and assets have the responsibility to develop programs and measures to practice economy and prevent waste within their units.

3. Competent state agencies have the responsibility to inspect, supervise, detect, and promptly handle violations of regulations on practicing economy and preventing waste according to the provisions of the law.

Article 35

1. Ministries, agencies equivalent to ministries, government-affiliated agencies, People's Councils, and People's Committees at all levels have the responsibility to coordinate with the Vietnam Fatherland Front and its member organizations to organize, educate, and mobilize the people to practice economy and prevent waste; supervise organizations and individuals in implementing the State's regulations on practicing economy and preventing waste.

2. Mass media agencies have the responsibility to promote and mobilize the people to implement the State's regulations on practicing economy and preventing waste; follow the model frameworks, regulations, and conventions on organizing festivals, weddings, funerals, and other cultural activities; set examples of good people and good deeds in practicing economy and preventing waste and struggle against and criticize wasteful behaviors in production and consumption.

Article 36. Organizations and individuals who fail to implement or implement incorrectly the State's regulations on practicing economy and preventing waste shall, depending on the nature and degree of violation, be subject to disciplinary action, administrative penalties, or criminal prosecution according to the provisions of the law; if they cause waste, they must compensate.

If an organization has individuals violating the regulations on practicing economy and preventing waste, the head of that organization shall bear joint liability.

Article 37. Organizations and individuals who achieve success in practicing economy and preventing waste shall be rewarded according to the State's regulations.

Chapter IV
IMPLEMENTING PROVISIONS

Article 38. This Decree takes effect from the date of signature.

Article 39. Ministers, Heads of agencies equivalent to ministries, Heads of government-affiliated agencies, Chairmen of People's Committees at all levels, and Heads of related organizations are responsible for implementing this Decree./.