JOINT CIRCULAR No. 38/TTLB GUIDING THE DISTRIBUTION AND MANAGEMENT OF INCOME FOR UNITS UNDER THE MINISTRY OF WATER RESOURCES PARTICIPATING IN LABOR COOPERATION IN THE REPUBLIC OF IRAQ

JOINT CIRCULAR

Guidelines for the distribution and management of income of units under the Ministry of Water Resources participating in labor cooperation in the Republic of Iraq.

 Implementing the directive of the Chairman of the Council of Ministers in Circular No. 1997-KTĐN dated August 18, 1988, of the Council of Ministers, which assigned the Water Resources sector to lead labor cooperation in the water resources field with the Republic of Iraq; to create conditions for units under the Ministry of Water Resources participating in labor cooperation in the Republic of Iraq to conduct economic accounting, bear financial responsibility independently, and manage proactively their revenues and expenditures; while ensuring centralized state management to achieve the required level of state budget revenue and a reasonable income level for workers;

The Ministry of Finance and the Ministry of Water Resources have jointly established guidelines for the distribution and management of income of units under the Ministry of Water Resources participating in labor cooperation in the Republic of Iraq as follows:

I. IMPLEMENTATION OF OBLIGATIONS TO THE STATE BUDGET.

Based on the agreement signed between our government and the Government of Iraq and the contract for providing Vietnamese labor to Project 395 of Iraq, the distribution of income shall be carried out as follows:

1. The portion allocated to our government to repay the Government of Iraq.

According to the current contract, after deducting 240 Dinars Iraqi to be transferred to the workers upon completion of their contract term, 60% of the wages recorded in the contract will be used by our government to repay the Government of Iraq.

2. The remaining portion is used to pay the workers : (food allowance, pocket money, vacation allowance in Iraqi Dinars not convertible, payment to workers upon completion of their contract term in convertible Iraqi Dinars) and external management costs of the unit and the supervising ministry.

3. For the portion our government allocates to repay the Government of Iraq, the state budget will provide the Ministry of Water Resources with Vietnamese Dong equivalent to 100% of the value of the foreign currency allocated for repayment. The Ministry of Water Resources will use this amount to pay domestic wages to workers, purchase uniforms, cover training and selection expenses, provide allowances to workers before departure..., and fund the construction of technical facilities directly serving the development of international labor cooperation activities for the unit and the Ministry of Water Resources.

The Ministry of Finance will settle accounts with the Ministry of Water Resources quarterly according to the exchange rate published by the State Bank.

Payments for social insurance funds and trade union fees will be settled by the state budget with the Vietnam General Confederation of Labor.

II. Settlement of foreign currency payments to the state budget (planning the centralized foreign currency reserve of the state)

1. At the beginning of the fourth quarter of the previous year, units under the Ministry of Water Resources participating in labor cooperation in Iraq must prepare a plan for foreign currency income and expenditure (broken down by quarter within the year) to report to the Ministry of Water Resources for approval. The Ministry of Water Resources will review and, after reaching agreement with the Ministry of Finance on the total foreign currency repaid to the Government of Iraq, request allocation of Vietnamese Dong equivalent to 10% as stipulated in Point 3 of Section I of this Circular (according to the attached settlement report form).

3. Annually, no later than two months after the end of the year, the Ministry of Water Resources will settle accounts with the Ministry of Finance (according to the attached settlement report form) regarding:

- The amount of foreign currency repaid to the Government of Iraq.

- The amount of Vietnamese Dong provided by the state budget equivalent to 10% of the value of the foreign currency repaid.

III.Implementation Provisions :

1. This Circular takes effect from January 1, 1989. Previous regulations inconsistent with this Circular are no longer in effect.

2. The Ministry of Water Resources will base itself on this Circular to specify detailed revenue and expenditure items concerning consumption standards for units under the Ministry of Water Resources participating in labor cooperation in Iraq to implement uniformly.