Joint Circular No. 39-LT/TT stipulates specific principles for capital allocation to shipyards.

 JOINT CIRCULAR
Regulations on the Principles for Capital Allocation to Shipbuilding Workshops

Implementing Decision No. 054-TTg dated February 19, 1959 of the Prime Minister stipulating principles for circulating capital for state-owned enterprises in industry, forestry, agriculture, transportation, and posts; setting standards for circulating capital for state-owned enterprises; and providing for loans from the National Bank within the limits of circulating capital;

Based on Circular No. 3189-LĐ/TL dated July 10, 1959 of the Ministry of Transport and Posts, which classifies shipbuilding workshops 1, 2, 3, and 4 as industrial enterprises;

Considering that after applying the principle of payment for construction projects between construction units and workshops, there have been many instances of capital accumulation, causing difficulties in managing capital at the workshops;

To save state capital while helping the workshops have favorable conditions to consolidate their economic accounting system;

The Joint Ministries of Finance, Transport and Posts, and the National Bank hereby specify the principles for capital allocation to shipbuilding workshops as follows:

1. The determination of circulating capital for shipbuilding workshops must be based on the principle of determining circulating capital for non-seasonal industrial enterprises, which requires basing it on the annual production volume to set the average annual circulating capital.

2. After the circulating capital limit has been reviewed, the State will allocate 30% to the National Bank for lending within the limit; the remaining 70%, after deducting planned debt, if insufficient, the State will provide additional funds to make up the 70%, and if excess, the workshop must return it to the budget.

3. In cases where raw materials imported exceed the limit specified in the plan, the National Bank will lend the necessary capital to the workshop to store materials above the standard according to the short-term loan regulations and measures for state-owned industrial enterprises issued on August 23, 1957.

4. For products under manufacture, only the capital limit for a maximum cycle of three months shall be calculated. In cases where the production cycle exceeds three months, the completion and payment of products in stages shall be based on contracts between construction units and workshops using allocated capital from the Construction Bank.

Based on these principles, the Ministry of Transport and Posts will issue specific guidelines for implementation.