Circular No. 44/2009/TT-BNNPTNT guides the financial management of foreign aid sources under the jurisdiction of the Ministry of Agriculture and Rural Development.

CIRCULAR

Guidelines for managing financial resources from foreign support within the scope

under the management of the Ministry of Agriculture and Rural Development

 _____________________

Pursuant to Decree No. 01/2008/NĐ-CP, January 3, 2008, of the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development;

Pursuant to Decree No. 60/2003/NĐ-CP, June 6, 2003, of the Government, promulgating detailed regulations and guidelines for implementing the Law on State Budget;

Pursuant to Decree No. 131/2006/NĐ-CP, November 9, 2006, of the Government, promulgating the Regulation on management and use of official development assistance;

Pursuant to Decision No. 64/2001/QĐ-TTg, April 26, 2001, of the Prime Minister, promulgating the Regulation on management and use of non-governmental foreign aid;

Pursuant to Circulars of the Ministry of Finance: Circular No. 82/2007/TT-BTC, July 12, 2007, guiding the financial management regime for non-reimbursable foreign aid included in state budget revenue; Circular No. 108/2007/TT-BTC, September 7, 2007, guiding the financial management mechanism for official development assistance (ODA) programs and projects; Circular No. 116/2005/TT-BTC, December 19, 2005, guiding the management and handling of assets of projects using state budget funds upon project completion
The Ministry of Agriculture and Rural Development guides the management of financial resources from foreign support within the scope under the management of the Ministry of Agriculture and Rural Development as follows:

PART I

GENERAL PROVISIONS

Article 1. Objectives and Scope of Application

This Circular aims to enhance the effectiveness and efficiency of financial resource management from foreign support, including official development assistance (ODA) and non-governmental foreign aid (NGO) invested through programs, projects, and non-project grants to administrative agencies, public institutions, Sector Support Partnership Offices, Sector Trust Funds, and Project Management Boards under the jurisdiction of the Ministry of Agriculture and Rural Development.

Article 2. Applicability

Administrative agencies, public institutions, Sector Support Partnership Offices, Sector Trust Funds, and Project Management Boards under the Ministry, which are assigned by the Ministry to be the main program/project managers or tasked with coordinating and implementing part (for projects with multiple sub-projects or components) or the entire program/project and non-project grants (referred to collectively as the Project Manager), must strictly comply with the provisions and guidelines set forth in this Circular.

Article 3. Principles of financial management

Clause 1. ODA and NGO funding invested and supported through programs, projects, and non-project grants (collectively referred to as projects) are all state budget (NSNN) funds, and must be fully recorded and reflected through accounting records, reports, and managed and utilized according to the provisions of the State Budget Law, relevant decrees, and current guiding documents.

Clause 2. Except in special cases approved by the Government,

Clause 3. The Project Manager shall bear legal responsibility before the law and the Minister for fulfilling commitments stipulated in international treaties, project documents; national regulations on program/project implementation and financial management; establishing financial planning systems, accounting, auditing, settlement, asset management, and reporting in accordance with current national regulations.

Clause 4. In cases where international treaties, agreements, or commitments that Vietnam has joined or signed provide different provisions than those in domestic regulations, such international treaties, agreements, or commitments shall prevail. If the donor or an organization authorized by the donor directly manages expenditures for the program/project, financial management shall be carried out in accordance with the provisions of the Agreements, Memorandums of Understanding, or Project Documents signed with the donor.

Article 4. Content of Financial Management

1. The content of financial management for foreign aid sources under the jurisdiction of the Ministry of Agriculture and Rural Development includes: Establishing and consolidating financial plans (also known as budget estimates for revenue and expenditure of the State Budget); implementing expenditure control systems and state budget accounting; implementing procurement systems and expenditure standards; implementing reporting, accounting, auditing, and settlement systems; implementing capital and asset management systems formed from project funding sources; and implementing tax policies.

2. In addition to the aforementioned contents, for independent grant programs and projects (not accompanied by loan projects) must also confirm grants with the Ministry of Finance (Department of Debt Management and External Financial Affairs) in accordance with Circular No. 82/2007/TT-BTC dated July 12, 2007 of the Ministry of Finance, guiding the state financial management system for non-reimbursable foreign aid included in state budget revenue and subsequent amendments, supplements, or replacements to this Circular.

Chapter II

ESTABLISHMENT AND APPROVAL OF FINANCIAL PLANS

Article 5. Principles for Establishing Financial Plans

1. A financial plan is an investment capital plan (for construction projects), or an administrative and public service capital plan (for administrative and public service projects), or a credit lending plan (for credit projects). The content of the financial plan includes: ODA and NGO capital (loan capital, non-reimbursable grant capital, categorized by country or organization), domestic counterpart capital (central government budget capital, local government budget capital, domestic credit capital, self-funded capital of the Project Owner, beneficiary contributions, value-added tax refund capital (if applicable), and other sources of capital as prescribed by Vietnamese law).

2. For mixed construction and administrative and public service projects, the Project Owner shall establish and submit for approval specific financial plans according to each project expenditure item. For projects with multiple Project Owners, each Project Owner is responsible for establishing the financial plan for the portion of the project they undertake. In cases where there is a lead coordinating agency for projects with multiple Project Owners, the coordinating agency will be responsible for establishing the financial plan for activities carried out by the coordinating agency, while simultaneously compiling the overall financial plan for the entire project.

3. The annual financial plan of the project must detail expenditures according to each component, major activity of the project, detailed according to each source of funding, counterpart capital, self-funded capital of the Project Owner, beneficiary contributions, credit capital (if applicable), and must include a report explaining the basis and calculation method for each expenditure item.

4. The annual financial plan of the project, once approved by the competent authority and notified, serves as the basis for expenditure control, withdrawal of counterpart capital, and foreign capital for the project. After the financial plan has been approved, the Project Management Board sends the financial plan to the Ministry of Finance (Department of Debt Management and External Financial Affairs) and the State Treasury where transactions are registered.

5. The annual financial plan of the project is established in accordance with the guidance provided in Circular No. 108/2007/TT-BTC dated September 7, 2007 of the Ministry of Finance, guiding the financial management mechanism for official development assistance programs and projects. To meet management requirements and actual conditions, detailed forms for establishing and summarizing financial plans are specified, including three appendices:

Appendix 1: Form for Summarizing Annual Financial Plan. This form is compiled from detailed projects listed in Appendices 2 and 3.

Appendix 2: Annual Financial Plan

Appendix 3: Detailed Annual Project Budget Estimate

Article 6. Establishment and Approval of Financial Plans

1. Annually, before July 15, coinciding with the time of preparing the State Budget estimate, according to current regulations, based on the content of the project proposal, overall plan, progress of the project implementation, the Project Owner, which is a second-level budget unit, directs the Project Management Board and subordinate units to establish and consolidate the capital plan for the following year, agree/no objection (No Objection) from the Funding Source (if required), serving as the basis for submission to the Ministry for review and sending to the Ministry of Finance and the Ministry of Planning and Investment to consolidate the State Budget for approval by the Government and the National Assembly.

2. For projects with investment nature (referred to as construction projects), the Project Owner establishes and submits the financial plan report to the Department of Planning for examination and consolidation before submitting to the Ministry of Planning and Investment. For projects with administrative and public service expenditure nature (referred to as administrative and public service projects), the Project Owner establishes and submits the financial plan report to the Department of Finance for examination and consolidation before submitting to the Ministry of Finance.

3. In August, according to their assigned functions and tasks, the Department of Finance (for administrative and public service projects), the Department of Planning (for construction projects) take the lead, coordinating with relevant Departments and Bureaus to make final adjustments to the State Budget plan/project estimate of the Ministry for consolidation and submission to the Ministry of Finance and the Ministry of Planning and Investment. During the annual State Budget plan/project estimate establishment process, Departments, Bureaus, other public institutions, and authorized agencies, based on their assigned functions and tasks, take the lead or coordinate to organize reviews and approve financial plans/project estimates for State Budget expenditures for projects under their management, with completion deadlines before October 31.

4. Immediately after being assigned the State Budget revenue and expenditure plan by the Prime Minister, and after the competent authority has reviewed the capital allocation plan, the Department of Finance submits to the Minister for a decision to assign the State Budget expenditure plan for administrative and public service projects; the Department of Planning leads the submission to the Minister to notify the capital plan for construction projects to second-level budget units; completion deadline before December 31. Second-level budget units are responsible for notifying the capital plan to dependent units within five working days from receiving the decision/notification of the assignment of the plan/estimate from the Ministry.

5. For ODA and NGO projects where international treaties and agreements have been signed but not yet effective or are effective but have not completed domestic investment procedures, the agency designated as the Project Owner must submit to the Ministry (through the Department of Planning for construction project funds, and the Department of Finance for administrative and public service project funds) for the Ministry to consolidate and report to the Ministry of Planning and Investment and the Ministry of Finance (during the budget estimate preparation period) to allocate in the contingency fund for construction project expenditures or administrative and public service expenditures, and submit to the competent authority for a decision (if it involves the central government budget responsible for allocating counterpart funds).

Article 7. Adjustment and Supplement to Financial Plans

For newly arising projects or approved projects that require adjustment and supplementation after the budget plan establishment and allocation, upon the Project Owner's request, based on the nature of fund usage, the Department of Planning (for construction project funds) and the Department of Finance (for administrative and public service project funds) examine and submit to the Minister for approval of adjustments (for cases where adjustments do not increase the total capital amount) and report consolidated supplementary plans (for cases requiring additional funding) at the time of annual budget plan supplementation or report to the Ministry of Planning and Investment and the Ministry of Finance to handle each specific case (for urgent and emergency situations).

Chapter III

ESTABLISHING ACCOUNTS, DISBURSEMENT, AND EXPENDITURE CONTROL

Article 8. Opening and using accounts

1. The project owner shall open an account at a commercial bank or an account at the State Treasury at the location where the transaction registration office is located to facilitate the receipt and disbursement of foreign aid funds, as well as the counterpart funds allocated from the State budget for implementing the program or project.

2. In the case of opening an account to receive foreign capital at a bank, the project owner shall be responsible for requesting the bank to open an additional account to separately track accrued interest and require the bank to send a monthly statement to the project for consolidation and tracking of accrued interest.

3. It is strictly prohibited to use personal accounts, borrow or use the accounts of other agencies, units, organizations, or similar methods to receive and use foreign aid funds for programs and projects.

Article 9. Confirmation of Aid, Reporting on Receipt and Use of Aid

1. Confirmation of aid money and goods with the Ministry of Finance (Department of Debt Management and External Financial Affairs), and reporting on the receipt and use of aid shall only apply to independent non-repayable aid programs and projects.

The form of the declaration and the time for confirming aid are stipulated in Circular No. 82/2007/TT-BTC dated July 12, 2007 of the Ministry of Finance, including:

1.1 Form C1-HD/XNVT: "Declaration for confirmation of imported aid goods" (Annex 1a) used for declaring and confirming aid for equipment, machinery, materials, raw materials, utensils, and other goods imported from abroad. This declaration is prepared immediately after receiving the import documents.

1.2 Form C2-HD/XNVT: "Declaration for confirmation of domestic aid goods and services" (Annex 1b) used for declaring and confirming aid for equipment, machinery, materials, raw materials, utensils, and other goods purchased domestically (including service costs) funded by foreign aid money. This declaration is prepared monthly, simultaneously with the value-added tax refund declaration.

1.3 Form C3-HD/XNVT: "Declaration for confirmation of aid money" (Annex 1c) used for declaring foreign aid money. This declaration is prepared immediately after receiving the transfer documents from the donor.

2. Within 15 days after the end of each quarter, the project owner must prepare a report on the receipt and use of aid (according to the model provided in Annex 5 issued together with Circular No. 82/2007/TT-BTC dated July 12, 2007 of the Ministry of Finance) and submit it to the Ministry (Financial Department) for consolidation and submission to the Ministry of Finance.

3. Programs and projects under ODA concessional loans or mixed programs/projects shall follow the provisions of Circular No. 108/2007/TT-BTC dated September 7, 2007, guiding the financial management mechanism for official development assistance (ODA) programs/projects, and are not required to confirm aid.

Article 10. Budgetary Standards

1. Budgetary standards for the use of domestic counterpart funds and loans through programs/projects cooperated with foreign countries shall be applied according to the provisions of Decision No. 61/2006/QĐ-BTC dated November 2, 2006 of the Minister of Finance, promulgating "Some budgetary standards applicable to projects/programs using official development assistance (ODA)" and any amendments, supplements, or replacements thereof.

2. Budgetary standards for the use of non-repayable foreign aid funds shall be applied according to the provisions of the Agreement, Memorandum, Project Document, or Memorandum of Understanding on foreign aid signed with the donor.

3. Except for aid provided in the form of budget support, for cases using non-repayable aid funds within programs/projects funded by member countries of the European Union (EU) or United Nations (UN) organizations such as FAO, UNDP, WHO, UNICEF..., the local cost standards according to the updated version of the "EU-UN Guidelines on Local Costs in Development Cooperation with Vietnam" published on the website of the European Union Delegation in Vietnam shall be applied:

http://www.delvnm.ec.europa.eu/eu_vn_relations/development_coo/publications.htm

4. Economic and technical standards, investment construction standards for special activities of sectors, investment-oriented activities shall be implemented according to current regulations of the Government of Vietnam (irrespective of the source of funds).

5. Additionally, if there are no specific budgetary standards stipulated in the agreements or funding arrangements, or if the project involves multiple ministries/departments (ministry being the main managing body), units, localities, and related partners but lacks unified budgetary standards or existing ones are insufficient or do not meet practical requirements, upon the request of the project owner and after agreement with the donor representative, the Ministry of Agriculture and Rural Development (Financial Department) will seek the opinion of the Ministry of Finance before issuing regulations on unified budgetary standards applicable throughout the project.

Article 11. Disbursement

1. For foreign capital: Depending on the provisions in the agreement, the financing agreement, and the requirements for each payment, the withdrawal and payment using ODA and NGO funds through project financing methods shall be carried out according to one or more of the following forms: direct payment withdrawal/transferring money, payment withdrawal via commitment letter/or special commitment, repayment withdrawal, retroactive withdrawal, payment through a special account/or advance account, and other special withdrawal forms agreed upon separately with the financier.

For ODA programs and projects with preferential loans or mixed ODA, according to the provisions in Section III, Part II, Circular No. 108/2007/TT-BTC dated September 7, 2007 of the Ministry of Finance, the Project Management Board is responsible for submitting a complete set of valid withdrawal documents to the Ministry of Finance. Within five working days from receiving the complete set of valid documents, the Ministry of Finance will review and sign/or co-sign the Withdrawal Request Form to request the financier's consideration and acceptance, and notify the bank serving the disbursement.

2. For counterpart capital: Within five working days, based on the results of expenditure control confirmed on the Payment Request Form, the State Treasury at all levels will make payments for the counterpart capital allocated from the budget to the project, in accordance with the annual approved counterpart capital plan by the competent authority.

Article 12. Expenditure Control

1. Expenditure control is the process of checking and confirming expenditures and payment documents from aid, preferential loan funds by the Project Owner in compliance with state budget expenditure management regulations conducted by the State Treasury or the lending agency authorized by the Ministry of Finance.

2. Expenditure control applies to all programs and projects funded by ODA preferential loans, non-reimbursable ODA co-financing within ODA loan projects, mixed ODA loan sources, and independent non-reimbursable aid projects. According to the provision in Point 1, Section I, Part II of Circular No. 108/2007/TT-BTC dated September 7, 2007 of the Ministry of Finance, the withdrawal of ODA project funds outside the country is not limited by the project's annual financial plan but must not exceed the overall project's financial plan.

3. Specifically, for aid in kind; non-material non-reimbursable aid (intellectual property assets); amounts spent by the financier or its representative for beneficiaries who are "non-residents" (fees for hiring consulting organizations, long-term foreign experts working in Vietnam; costs for foreign experts conducting survey, evaluation, and assessment trips in Vietnam...from foreign aid sources) in independent non-reimbursable aid projects, expenditure control procedures are not implemented.

4. In cases where accounts are opened at commercial banks, the Project Owner still has the responsibility to provide all legal documents, agreements/memorandums/understandings with the financier regarding budget estimates, expenditure plans, and related documentation to the State Treasury to ensure accurate expenditure control without affecting the project schedule and commitments to the financier.

5. For independent non-reimbursable aid projects, within ten working days from the beginning of the month, the Project Owner must prepare a "Summary Table of Expenditures and Payments from Non-Reimbursable Aid Funds" based on each "Confirmation Form of Non-Reimbursable Aid Funds" and submit it to the State Treasury for verification and confirmation of total expenditures from aid funds, then send these documents to the Ministry (Financial Department) to compile these Summary Tables and submit them to the Ministry of Finance for recording income and expenditure in the state budget according to the current State Budget Classification.

6. In addition to the above contents, detailed procedures for documents, materials, forms of expenditure control, timeframes, and responsibilities of the parties involved during the expenditure control process are implemented according to each type of project, specifically:

6.1 For programs and projects funded by ODA preferential loans, non-reimbursable ODA co-financing within ODA loan projects, and mixed ODA loan sources, they are implemented according to the provisions in Section I, Part II of Circular No. 108/2007/TT-BTC dated September 7, 2007 of the Ministry of Finance, guiding the financial management mechanism for Official Development Assistance (ODA) programs and projects.

6.2 For independent non-reimbursable aid projects, they are implemented according to Point 2, Section III, Part II of Circular No. 82/2007/TT-BTC dated July 12, 2007 of the Ministry of Finance, guiding the financial management system for non-reimbursable foreign aid under state budget revenue.

Chapter IV

ACCOUNTING AND AUDITING

Article 13. Accounting System

1. Depending on the scale, nature, and management model of each project, the Project Owner shall proactively propose an accounting model, organize the accounting system, arrange full-time or part-time accounting staff, or recruit/newly hire accounting personnel meeting all conditions and standards stipulated in the Accounting Law and related regulatory documents, with requirements for qualifications, experience, suitability to the management field, ensuring the completion of project accounting tasks.

2. The accounting system, specific positions, and number of accountants must be clearly recorded in the decision assigning tasks or establishing the Project Management Board by the competent authority or the agency/unit authorized. Each position within the accounting system must establish a job description (Job Description).

Article 14. Accounting System

1. The administrative and public service accounting system issued together with Decision No. 19/2006/QD-BTC dated March 30, 2006 by the Minister of Finance shall apply to technical assistance programs, capacity building projects, research, policy innovation, institutional reform projects with administrative and public service characteristics.

2. The accounting system for the project owner issued together with Decision No. 214/2000/QD-BTC dated December 28, 2000 by the Minister of Finance shall apply to construction investment projects using capital, permitted to establish a separate Project Management Board.

3. The current accounting system of the unit shall be applied to perform accounting work in cases where the project is small-scale, simple, with a small volume of accounting work, without establishing a Project Management Board; however, the Project Owner must separately record the project's capital sources, project expenses, and not mix Official Development Assistance (ODA) funds with the unit's funds.

Article 15. Accounting Records

Administrative agencies, public service units, Industry Support Partner Offices, Industry Entrusted Funds, and Project Management Boards under the Ministry must uniformly use a set of accounts, open complete ledgers, and prepare reports according to the applicable accounting systems as mentioned in Article 14 above to fully, truthfully, and promptly reflect the situation of receiving, managing, and utilizing funds, as well as the procurement, purchase, and use of assets of the project.

Article 16. Project Audit

Auditing of projects mainly includes annual financial statement auditing and final settlement auditing upon project completion, specifically:

1. Annual financial statement auditing is conducted in accordance with the sponsor's regulations or the audit requirements of the competent Vietnamese authorities to: (i) verify and confirm the accuracy and reasonableness of the project's financial statements for a fiscal year; (ii) simultaneously confirm that the project's resources have been used appropriately in accordance with the procedures, regulations, policies, and financial and accounting systems agreed upon by the Government and the sponsor within the framework of the project.

2. Final settlement auditing applies to all important national ODA projects, ODA Group A projects, and ODA Group B projects using state capital upon completion (before submitting to the competent authority for review and approval of the final settlement); other projects will conduct final settlement auditing based on the sponsor's and competent authority's requirements.

3. Additionally, in certain specific cases, as required by the sponsor, performance audits, cost-effectiveness audits, or procurement audits may also be conducted.

4. The auditing firm selected to provide auditing services for the project must meet the following basic requirements: (i) be legally operating auditing companies in Vietnam listed annually by the Ministry of Finance (or organizations authorized by the Ministry of Finance) as having the necessary conditions to conduct audits, except where government agreements with sponsors specify otherwise; (ii) comply with current auditing regulations, auditing standards, and auditing ethical standards.

5. The Project Owner must prepare and submit to the Ministry (Financial Department) for examination and approval the Audit Plan and Tender Documents/Tender Conditions for annual auditing services or for auditing throughout the project phase (except for cases already authorized by the Minister) before proceeding with subsequent procedures in accordance with current bidding laws.

6. Immediately upon receipt of the annual financial audit report and the final settlement audit report from the auditing firm, within ten working days, along with sending the audit report to the sponsor as required, the Project Owner must also send one copy (including the management letter) to the Financial Department to grasp information and recommendations for management purposes, which also serves as one of the bases for reviewing and approving the final settlement of the project.

Chapter V

FINAL SETTLEMENT OF THE YEAR AND FINAL SETTLEMENT UPON PROJECT COMPLETION

Article 17. Annual Settlement of Projects

1. Each year, the Project Owners who are budgetary units at level II shall be responsible for reviewing and approving the annual settlement report reflecting all sources of funds (foreign aid and counterpart funds...) provided to level III units, project management boards, and subordinate units, then compiling and submitting the annual settlement report promptly to the Ministry (Financial Department) for review, verification, and annual settlement notification.

2. For construction projects, the annual settlement of projects shall be carried out in accordance with Circular No. 53/2005/TT-BTC dated June 23, 2005 of the Ministry of Finance and Decision No. 2533/QĐ-BNN-TC dated August 19, 2008 of the Minister of Agriculture and Rural Development, guiding the preparation, verification, and notification of annual settlement reports on basic construction investment funds from state budgets according to annual budget periods and any amendments, supplements, or replacements thereof.

3. For administrative and public service projects, the annual settlement of projects shall be carried out in accordance with Circular No. 01/2007/TT-BTC dated January 2, 2007 of the Ministry of Finance, guiding the review, verification, and notification of annual settlement reports for administrative agencies, public institutions, and organizations supported by state budgets; Decision No. 3833/QĐ-BNN-TC dated December 3, 2008 of the Minister of Agriculture and Rural Development, promulgating regulations on the review, verification, and notification of annual settlement reports for administrative agencies, public institutions, organizations assigned to use budgets managed by the Ministry of Agriculture and Rural Development, and any amendments, supplements, or replacements thereof.

Article 18. Settlement of Completed Projects

1. Upon completion of the project, each Project Owner must prepare a final investment settlement report (for construction projects) or a final administrative and public service expenditure settlement report (for projects with administrative and public service expenditure characteristics), reflecting all project funding sources to submit to the Ministry (Financial Department) for examination, verification, and approval according to current accounting regulations.

2. The final investment settlement report for completed construction projects shall be implemented in accordance with the provisions of Circular No. 33/2007/TT-BTC dated April 9, 2007 of the Ministry of Finance, Decision No. 2707/QĐ-BNN-TC dated September 3, 2008 of the Minister of Agriculture and Rural Development, guiding the settlement of investment funds, and any amendments, supplements, or replacements thereof.

3. The final administrative and public service expenditure settlement report for completed projects shall be implemented in accordance with the provisions of Decision No. 19/2006/QĐ-BTC dated March 30, 2006 of the Minister of Finance, promulgating the accounting system for administrative and public services, and any amendments, supplements, or replacements thereof.

Chapter VI

EQUIPMENT PURCHASE AND ASSET MANAGEMENT

Article 19. Equipment Purchase and Asset Management

1. The procurement and purchase of assets for project management must be consistent with the approved project documentation, assigned tasks, and national standards and norms, ensuring thrift and prevention of waste.

2. In cases where new equipment is purchased, it must be conducted in accordance with the current laws on bidding. The Project Owner must prepare a comprehensive bidding plan to be submitted to the Ministry for approval before proceeding with subsequent procurement procedures (except for packages that need to be executed earlier).

3. If specific international agreements on ODA or financial assistance commitments contain different provisions regarding asset procurement, purchase, and management by the Project Management Board compared to current Vietnamese regulations, the Project Owner must report to the Ministry (Financial Department) to seek the Prime Minister's opinion before signing or implementing procurement according to the provisions of that international agreement.

Article 20. Management of Assets

1. Assets equipped or purchased by the project must be used for their intended purpose, with detailed tracking records maintained and fully accounted for according to the prescribed regulations. The depreciation of assets shall be calculated in accordance with the Asset Management and Depreciation Regulations for Fixed Assets in State Agencies, Public Service Units, and Organizations Using State Budgets issued together with Decision No. 32/2008/QĐ-BTC dated May 29, 2008 by the Minister of Finance and subsequent amendments and supplements thereto.

2. All assets acquired, received pursuant to decisions of competent authorities, and leased for the operation of the project must be used for their intended purpose, for the designated recipients, and within the national standards and norms; it is strictly prohibited to: (i) sell, exchange, transfer, give away, or lend without authorization from competent authorities; (ii) lease, lend, or allow use by organizations or individuals; (iii) use for personal purposes.

3. The Project Owner/Project Management Board directly responsible for managing and using assets must issue regulations on asset management and usage; establish fuel consumption standards for transportation vehicles; annually conduct inventory checks and report the results to the Ministry (Financial Department) in accordance with current regulations.

4. Assets acquired to serve the operation of the project must be maintained and repaired in accordance with the state's technical management regulations for each type of asset. The funds for maintenance and repair of assets shall be sourced from the annual budget of the Project Management Board.

Article 21. Handling of Assets During Usage and After Project Completion

1. The handling of assets of projects upon completion or when they are no longer needed during implementation must be carried out in accordance with Circular No. 116/2005/TT-BTC dated December 19, 2005 of the Ministry of Finance, guiding the management and disposal of assets of projects funded by state budgets upon completion, along with related legal regulations and subsequent amendments and supplements thereto.

2. Documents submitted to the Ministry (Financial Department) for asset disposal include:

2.1 Letter requesting disposal of completed project assets;

2.2 Inventory record of completed project assets (according to Appendix 01/TSDA model);

2.3 Summary list of assets proposed for disposal (according to Appendix 02/TSDA model);

2.4 Document requesting asset transfer from units in need (for assets transferred to localities, there must be a letter from the Provincial People's Committee);

2.5 Copy of the Agreement/Memorandum/Cooperative Agreement on funding;

2.6 Diplomatic note or agreement on asset transfer from the financier (if applicable);

2.7 Report on vehicle usage situation (in cases of requesting asset transfer);

2.8 Copy of other relevant documents concerning asset usage rights (for office buildings, land, structures attached to land, and transportation vehicles).

3. The procedure for asset disposal includes the following steps:

3.1 Prior to the project's completion, the Project Owner must direct the Project Management Board to prepare documents and materials, form an asset inventory committee; within thirty days from the date of project completion or when assets are no longer usable or needed during project implementation, the Project Management Board is responsible for conducting an inventory and recording it in the Inventory Record (Appendix 01/TSDA model) and proposing a disposal plan (Appendix 02/TSDA model) as stipulated in Circular No. 116/2005/TT-BTC dated December 19, 2005 of the Ministry of Finance.

3.2 The Project Owner reviews and compiles the Project Management Board's inventory results, submits the documents in accordance with Clause 2, Article 21 of this Circular to the Ministry for decision on asset disposal;

3.3 Within ten working days from receiving valid documents, the Financial Department will submit a document to the Ministry for approval from the Ministry of Finance regarding the disposal plan;

3.4 Within five working days from receiving the Ministry of Finance's response, the Financial Department will submit a document to the Ministry for issuance of the disposal decision;

3.5 Based on the Ministry's disposal decision, within ten working days, the Project Owner directs the Project Management Board to form a committee to proceed with asset transfer (in case of asset transfer) or organize liquidation and public auction for assets with residual value, or destroy those severely damaged and irreparable and without residual value.

3.6 The Project Owner must report the disposal results to the Ministry through the Financial Department no later than ten working days from the completion of asset transfer and disposal for monitoring and inspection purposes.

4. The Project Owner shall bear full legal responsibility before the Ministry and the Minister if there is lax asset management leading to loss, waste, damage, delayed disposal of project assets upon completion, or unauthorized asset transfer.

Chapter VII

TAX POLICY AND TAX INCENTIVES

Article 22. Types of taxes

The types of taxes applicable to the project include: export tax, import tax, special consumption tax, value-added tax, personal income tax, corporate income tax, fees, and charges.

Article 23. Tax policies and tax incentives

1. For non-reimbursable ODA projects implemented in accordance with Section II of Circular No. 123/2007/TT-BTC dated October 23, 2007, issued by the Ministry of Finance, guiding the implementation of tax policies and tax incentives for programs and projects using ODA sources, and any subsequent amendments, supplements, or replacements to this Circular.

2. For preferential loan ODA projects and mixed loan ODA projects (collectively referred to as loan ODA projects), they shall be implemented in accordance with Section III of Circular No. 123/2007/TT-BTC dated October 23, 2007, issued by the Ministry of Finance, guiding the implementation of tax policies and tax incentives for programs and projects using ODA sources, and any subsequent amendments, supplements, or replacements to this Circular.

Article 24. Compliance with tax obligations

1. To fulfill tax obligations, the Project Owner must register with the Tax Authority at the location of their business headquarters to obtain a tax registration number. The procedures for tax registration and issuance of the tax registration number shall be carried out in accordance with Circular No. 85/2007/TT-BTC dated July 18, 2007, issued by the Ministry of Finance, guiding the implementation of the Law on Tax Administration regarding tax registration, and any subsequent amendments, supplements, or replacements to this Circular.

2. Specifically, for value-added tax, the procedures for refunding tax, declaration deadlines, organization of receiving and refunding tax documents shall be carried out in accordance with Circular No. 60/2007/TT-BTC dated June 14, 2007, issued by the Ministry of Finance, guiding the implementation of certain provisions of the Law on Tax Administration and guiding the implementation of Decree No. 85/2007/NĐ-CP dated May 25, 2007, issued by the Government, detailing the implementation of certain provisions of the Law on Tax Administration, and any subsequent amendments, supplements, or replacements to these provisions.

3. For experts, consultants, and staff working for the project, the Project Owner is responsible for withholding at source, registering, declaring, and paying personal income tax in accordance with the Law on Personal Income Tax and any guidance documents for its implementation (except for foreign experts who are exempt from tax and fees when implementing programs and projects using ODA sources in accordance with Circular No. 52/2000/TT-BKH dated June 5, 2000, issued by the Ministry of Planning and Investment).

4. For foreign organizations and individuals conducting business in Vietnam or earning income in Vietnam providing services to the project, they must comply with tax obligations as stipulated in Circular No. 134/2008/TT-BTC dated December 31, 2008, issued by the Ministry of Finance, and any subsequent amendments, supplements, or replacements to this Circular.

Chapter VIII

IMPLEMENTING PROVISIONS

Article 25. Implementation organization

1. The Director of the Financial Department shall organize guidance, monitoring, and inspection of the implementation of this Circular.

2. Heads of administrative agencies, units under public service, Directors of Sectoral Support Partner Offices, Sectoral Trust Funds, and Project Management Boards under Ministries assigned by the Ministry to be the program/project owner, or assigned to coordinate or implement part or all of the program/project, shall have the responsibility to widely disseminate, strictly organize, and implement the provisions of this Circular.

3. Assign the International Cooperation Department to prepare and compile a list of approved projects in the previous year and a list of planned projects to be mobilized, negotiated, and signed in the current year in the first quarter of each year, to be submitted to relevant authorities, while also sending it to the Financial Department and the Planning Department for coordination in monitoring and serving the overall reporting work of the Ministry and reporting to related ministries and sectors.

4. Assign the International Cooperation Department to cooperate with the Financial Department, the Planning Department, and other relevant Bureaus/Departments, annually to develop plans for regular and spot inspections of the situation of receiving, managing, and utilizing foreign aid through programs and projects; promptly identify violations and signs of violations, and propose measures to the Minister for handling.

Article 26. Handling Violations

1. Throughout the implementation process of the project, as well as upon completion of the project, if the Project Owner shows signs or manifestations of violating current State regulations on financial management, failing to prepare and submit to the Ministry for approval of the final settlement report, and not proposing a plan for the disposal of completed project assets resulting in improper use or unauthorized transfer of assets, the Financial Department will cooperate with the Cadre Organization Department, the International Cooperation Department, and the Inspectorate of the Ministry to investigate and clarify responsibilities, and report to the Minister not to assign the unit to undertake new projects.

2. In addition to the measures mentioned above, any organization or individual violating the provisions of this Circular shall be subject to legal sanctions depending on the nature and degree of violation, and shall bear responsibility for self-criticism before the Minister for such violations.

Article 27. Effective Date

This Circular takes effect forty-five days from the date of signature. During the implementation period, if there are difficulties, obstacles, or newly emerging issues, heads of administrative agencies, units under public service, Directors of Sectoral Support Partner Offices, Sectoral Trust Funds, and Project Management Board Directors under Ministries shall promptly report to the Ministry for consolidation and consideration, and decision-making to amend and supplement appropriately./.