Circular No. 61/2001/TT-BTC guides the provision of support funds for market development activities and the promotion of trade.

CIRCULAR

Guidelines for financial support for market development activities and enhanced trade promotion

Implementing Resolution No. 05/2001/NQ-CP dated May 24, 2001 of the Government on supplementing certain measures to manage the economic plan for 2001;

Based on the opinions of the Ministry of Trade, the Ministry of Planning and Investment, the Government Price Control Board, and the directives of the Prime Minister in Circular No. 3075/VPCP-KTTH dated July 10, 2001 of the Government Office, to further encourage and enhance exports, the Ministry of Finance hereby stipulates the mechanism for financial support for market development activities and enhanced trade promotion as follows:

I - GENERAL PROVISIONS

1- Market development activities and enhanced trade promotion (hereinafter referred to as trade promotion activities), aimed at encouraging exports, include:

1.1 Collecting information on markets, customers, and exported goods;

1.2 Engaging economic trade consultants;

1.3 Conducting market search for export activities;

1.4 Organizing exhibition booths and trade fairs abroad;

1.5 Establishing Vietnam Trade Promotion Centers abroad;

1.6 Setting up representative offices of enterprises and industry associations abroad.

2- The costs for these activities shall be covered by the following sources:

Costs incurred by public institutions shall be covered by the State budget through business expenses and support for rural industries;

Costs incurred by enterprises shall be included in the cost price or operating expenses of the enterprise and partially supported from the Export Support Fund;

3- This Circular stipulates the provisions for financial support from the Export Support Fund for trade promotion activities at enterprises.

4- Principles of support:

The State will provide partial funding for trade promotion activities based on actual expenditure and foreign currency revenue of the enterprise annually;

Enterprises receiving State support for trade promotion expenses must ensure that the funds are used economically and effectively and bear responsibility for the content of the expenditures according to current regulations; The business receiving State support for promoting trade must ensure that the supported funds are used economically and effectively, and shall be responsible for the content of expenditures in accordance with the current regulations.

II - SPECIFIC PROVISIONS

1. Eligible recipients: are enterprises engaged in export business (of all economic sectors) with annual foreign currency income;

Enterprises engaged in organizing trade promotion activities are not eligible for trade promotion expense support under this Circular;

Export value-based trade promotion expense support shall not apply to the following cases:

Exported goods for debt repayment and foreign aid;

Goods exported under Government Agreements;

Goods exported under barter arrangements;

Re-exported goods;

Goods with high commercial competition such as oil and gas.

2. Level of support for trade promotion:

2.1 For trade promotion activities mentioned in Section 1.1, 1.2, 1.3, and 1.4 of Part I, the level of support is determined at 0.2% of the export value (calculated based on FOB prices at Vietnamese ports or equivalent delivery terms) actually received in the year, but not exceeding the actual expenditure of the enterprise on these activities. The level of support is calculated in Vietnamese Dong based on the exchange rate prevailing in the inter-bank market at the time of support.

2.2 For trade promotion activities mentioned in Section 1.5 and 1.6 of Part I, enterprises will receive partial funding for initial investment costs. The level of support is determined at 0.1% of the export value (calculated based on FOB prices at Vietnamese ports or equivalent delivery terms) actually received in the year, but not exceeding 50% of the initial investment costs determined by the Ministry of Finance in coordination with the Ministry of Trade for each project approved by the competent authority.

3- Industry associations conducting trade promotion activities that result in export contracts for member units may enjoy support through the reallocation of support funds from member units. The level of reallocation is agreed upon between the association and its member units.

4- Source of funds: All expenses for market development and trade promotion are sourced from the Export Support Fund.

5- Application procedures:

5.1 Supporting application dossier: After the end of the year, exporting enterprises submit relevant supporting documentation to the Ministry of Finance, specifically as follows:

a) For support as specified in Section 2.1 of Part II:

a.1- Enterprise's request for support letter;

a.2- A statement of actual export value received by the enterprise during the reporting period, confirmed by the commercial bank where the enterprise has an account for foreign currency receipts from exports;

a.3- Report on business results during the reporting period, including detailed reports on trade promotion expenses.

b) For support as specified in Section 2.2 of Part II: In addition to the documents specified above in points a.1 and a.2, the enterprise must also provide:

b.1- Opinion Proposal of the Ministry of Trade;

b.2- Project approved by the competent authority;

b.3- Actual cost report;

b.4- Business results report during the reporting period.

5.2 Based on the submitted documents and the support levels stipulated in this Circular, the Minister of Finance decides to allocate funds from the Export Support Fund to support the enterprise.

6- Accounting regulations:

For enterprises: Expenses for market development and trade promotion are accounted for as follows:

Reducing business expenses (management expenses) of the enterprise for support under Section 2.1 of Part II.

Allocating to state investment capital for the project for support under Section 2.2 of Part II.

For associations: Allocating transferred funds from member enterprises into the association's revenue for trade promotion activities.

The enterprise director and the association chairman are responsible for managing, using, and accounting for the support funds in accordance with state regulations.

III- IMPLEMENTATION PROVISIONS

1- This Circular takes effect from January 1, 2001.

2- During implementation, if there are difficulties or obstacles, enterprises are requested to report to the Ministry of Finance for study and resolution./.