Circular No. 62/NH-TT guiding the implementation of Decision No. 146-HĐBT dated August 25, 1982 of the Council of Ministers on amending and supplementing Decision No. 25-CP dated January 21, 1981 of the Council of Ministers.

CIRCULAR

OF THE GOVERNOR OF THE STATE BANK NO. 62/NH-TT
AUGUST 30, 1982 GUIDING IMPLEMENTATION OF THE DECISION
NO. 146-HĐBT AUGUST 25, 1982 OF THE COUNCIL OF MINISTERS ON AMENDING AND COMPLEMENTING THE DECISION
NO. 25-CP JANUARY 21, 1981 OF THE COUNCIL OF MINISTERS

Implementing Decision No. 146-HĐBT dated August 25, 1982 of the Council of Ministers on amending and complementing Decision No. 25-CP, the Central State Bank guides certain points related to currency, credit, and payment as follows:

I. BANKS PARTICIPATE IN REASSESSING THE DIRECTION
AND TASKS OF PRODUCTION AND BUSINESS OPERATIONS OF STATE INDUSTRIAL ENTERPRISES IN ACCORDANCE WITH
CURRENT SPECIFIC CONDITIONS

1. The Council of Ministers' Decision stipulates that "based on the actual capacity for balancing energy, materials, raw materials, spare parts, The decision to switch the issuance of coats, overcoats, windbreakers, and down jackets to other uniforms for civil servants working at the National Market Management and Development Agency is decided by the Minister of Industry and Trade.the State Planning Committee will work with relevant Ministries, The decision to switch the issuance of coats, overcoats, windbreakers, and down jackets to other uniforms for civil servants working at the National Market Management and Development Agency is decided by the Minister of Industry and Trade.provincial People's Committees, industrial associations to rearrange production, classify enterprises, and accurately determine the production and business tasks of each unit to suit current conditions."

Central specialized banks, provincial banks, and basic-level banks, within their respective functions, have the responsibility to participate with Ministries, General Departments, provinces, cities, and enterprises in rearranging production facilities into three categories.

a) Enterprises with significant positions in the national economy, which the State prioritizes to ensure sufficient means, materials, and primary raw materials for stable production.

b) Enterprises not provided with sufficient primary materials by the State may independently seek additional materials and raw materials from various sources, including borrowing foreign currency from the State Bank to import materials and spare parts.

c) Enterprises unable to continue operations or operate without economic efficiency shall be allowed to change production direction or temporarily cease production.

The bases for rearranging production facilities according to the guidance in Directive No. 120-HĐBT dated July 17, 1982 of the Council of Ministers and other related documents of the The decision to switch the issuance of coats, overcoats, windbreakers, and down jackets to other uniforms for civil servants working at the National Market Management and Development Agency is decided by the Minister of Industry and Trade.State Planning Committee.

2. Based on clearly defined directions and tasks for production and business operations, basic-level banks must assist and promote enterprises in building production plans, technical financial plans, including plans for circulating capital quotas, requesting supplementary circulating capital either through self-funding or profit reinvestment according to current regulations.

Decision No. 146-HĐBT stipulates that "depending on specific conditions regarding the State's capacity to balance and supply primary materials to enterprises, the plan may include portions assigned by the State for material balance and portions where enterprises independently seek materials for production." Therefore, the circulating capital quota plan must include both aforementioned contents. In addition to the main production plan, enterprises also develop auxiliary production plans (if applicable).

II. CREDIT AND PAYMENT WORK FOR STATE INDUSTRIAL ENTERPRISES

1. Credit for enterprises with stable production.

The State Bank concentrates funds to meet the necessary circulating capital needs as planned, aiming to help enterprises complete their production and business plans successfully. Enterprises with sudden capital needs, if economically viable and adding products for the State, will be considered for loans according to current regulations.

For construction projects, credit involves participating in investments in state-planned projects, focusing on deep investments to promote technological progress, rationalize production, improve, expand, and enhance existing production capacity and technical infrastructure with minimal investment but high and quick economic returns.

2. Credit for enterprises required to seek materials for production independently.

a) For enterprises not supplied with sufficient primary materials by the State and thus needing to seek additional materials from other sources, in addition to providing regular circulating capital loans for purchasing distributed materials and production costs to fulfill state-assigned targets, enterprises can also borrow for supplementary plans.

To obtain necessary circulating capital loans promptly to meet production and business requirements, enterprises need:

- A supplementary production plan, sales plan, and circulating capital quota plan reviewed concurrently with the state-assigned plan already balanced for materials, approved by the management authority or financial body for supplementary funding or a plan to reinvest profits to self-fund circulating capital according to prescribed ratios. During production, if enterprises find additional material sources for supplementary plans, the bank will consider these for loans without requiring reapproval of circulating capital quotas.

- Clearly explain that production yields profitable products with valid sales contracts.

- Ensure timely repayment of bank loans.

b) Regarding prices for lending and payments:

- Materials supplied by the State according to plan targets are lent and paid at State-directed prices.

Excess materials from other enterprises transferred on a cooperative basis are lent and paid at wholesale State material prices plus reasonable storage and transportation costs agreed upon by both parties.

- Technically approved surplus materials are lent and paid at State-directed surplus material prices.

- Agricultural, forestry, and marine products under unified State management are lent and paid at State-directed price ranges set by the price management bodies authorized to regulate them.

Materials not under unified State management are lent and paid at negotiated prices in accordance with local provincial or city People's Committee regulations and guidelines.

Basic-level banks must not lend for enterprises to purchase on the free market materials exclusively distributed by the State.

c) The loan account and repayment period shall be carried out as with ordinary loans within and above the quota (or within and outside the plan). Enterprises that previously borrowed funds for self-production according to the approved plan, reflected in sub-item 30 of the working capital loan account, will now transfer their remaining balances to the loan account within and above the quota (or within and outside the plan) to settle sub-item 30.

3. For enterprises changing production direction or temporarily suspending production.

a) For enterprises encountering difficulties and unable to continue production according to the approved tasks but must shift production to another industry, profession, or product type, the basic bank needs to assist and encourage the enterprise to develop a production-technical-financial plan according to the requirements of the new task, submit it to the competent authority for review, and the bank will provide working capital loans to the enterprise according to current regulations.

b) For enterprises temporarily suspending production, the basic bank needs to coordinate with the management agency of the enterprise and related agencies to help the enterprise inventory and preserve fixed assets, sell products, transfer surplus materials in stock, settle receivables and payables, handle losses according to regulations, and recover receivables (including loss compensation sources). From the date of the decision to suspend production, the bank will stop all loans and continue to recover debts from deposit accounts and income from the liquidation results of the enterprise. The provincial or city bank director may decide to waive interest on outstanding debts from the date of the suspension decision.

4. Credit for sideline production.

a) The State Bank provides loans to enterprises to implement sideline production aimed at helping enterprises utilize excess labor, equipment, factories, waste materials, and by-products to produce additional products to meet market demand.

To obtain loans, enterprises need to:

- Submit to the Bank a sideline production plan approved by the superior management agency regarding the product item, cost, and selling price.

- Explain clearly that producing the product is profitable and there is a sales contract or a self-sales plan (if state trade does not purchase).

- Have some working capital invested in production.

b) The objects of loan are materials that the enterprise must purchase for production. Waste materials and by-products utilized from main production will be refunded when the enterprise sells sideline products and are not loan objects of the bank.

For enterprises needing to purchase additional equipment or build additional factories to implement sideline production, the bank will consider and resolve loans according to the current fixed asset loan regulations.

c) Regarding prices, the bank will lend and settle payments for materials purchased externally as stipulated in paragraph b, point 2, section II.

d) Working capital loans for sideline production will be accounted under a simple account. The loan amount is recorded in sub-item 29 for working capital loans for sideline production. The maximum term for each loan is three months, and in special cases, upon the request of the enterprise director, the bank manager may extend it but not exceeding six months. The loan interest rate follows the current interest rate schedule.

5. Payment operations.

Payment for raw material purchases and labor supply between enterprises with accounts at the bank shall be conducted through transfers. It is strictly prohibited to demand payment in cash, advance payments, or pre-receipts in cash.

AWidespread use of hand-carried money orders in transferring funds from one province or city to another to shorten payment time.

Amounts below the transfer payment limit or special cases, enterprises must negotiate with the bank before making cash payments.

In transactions for raw material purchases between enterprises and individuals without bank accounts, enterprises can pay in cash.

III. FOREIGN CURRENCY CREDIT

Decision No. 146-HĐBT stipulates: "If foreign currency loans are needed to import materials, spare parts for production, enterprises must prepare specific production and business plans, including consumption, export, and foreign currency settlement, and submit them to the Minister of the principal ministry or the Chairman of the People's Committee of the province or city for approval and allocation of plan quotas."

In borrowing and using foreign currency, enterprises must follow state regulations on foreign currency management, banking credit, and import-export; enterprises must ensure profitable production and business in foreign currency, repay the borrowed foreign currency (both principal and interest), and remit foreign currency accumulations to the state. In case of losses, the Minister of the principal ministry or the Chairman of the Provincial or City People's Committee must take responsibility before the Chairman of the Council of Ministers and find internal measures within the sector or locality to repay the borrowed foreign currency, including interest, to the bank."

The State Bank provides further guidance as follows:

1. The bank provides foreign currency loans to enterprises for importing materials, raw materials, materials, spare parts, and individual equipment for production.

2. To borrow foreign currency, enterprises need to:

- Submit to the Foreign Trade Bank serving them a production and sales plan approved by the management agency (Ministry, General Department, Provincial or Municipal People's Committee) and the opinion of the State Bank branch where the enterprise has its main account;

- Have a valid sales contract signed with domestic purchasing units settled in foreign currency, or with foreign trade organizations entrusted to export abroad;

- Ensure timely repayment of the bank's foreign currency loan principal and interest.

3. The term of foreign currency loans is determined according to the production and business plan, ensuring one production cycle, but not exceeding twelve months.

4. The bank provides foreign currency loans under a simple loan account. The debt term is agreed monthly between the bank and the enterprise. All foreign currency revenue from sales must be deposited into the foreign currency deposit account at the bank and earn foreign currency deposit interest. Upon maturity, the bank will deduct sufficient amounts from the foreign currency deposit account to cover the debt, and overdue debts of each term will be transferred to overdue debts.

5. The interest rate for foreign currency loans shall be based on the international market interest rate for the amount of foreign currency used for lending. Overdue interest shall be calculated according to the current foreign currency loan interest rate regime of the State Bank of Vietnam.

6. The right to use the foreign currency earned during the business process of the enterprise shall be applied in accordance with Article 6 of Decision No. 113-HĐBT dated July 10, 1982 of the Council of Ministers: 30% of the accumulated foreign currency must be remitted to the State, while the remaining 70% constitutes self-owned foreign currency. This amount (the right to use foreign currency) shall be opened by the Foreign Trade Bank for the enterprise in a separate foreign currency account for monitoring purposes. The use of foreign currency shall only serve the development of production and shall not be used for other purposes.

7. Foreign currency lending shall be carried out by the Central Foreign Trade Bank and its branches in provinces, cities, and special zones according to the plan reviewed and announced by the Central State Bank based on the lending plan developed by the Foreign Trade Bank. Enterprises may open foreign currency deposit accounts and borrow foreign currency from one branch of the Foreign Trade Bank within the assigned region.

IV. MANAGEMENT OF CASH AND CONTROL OF WAGE FUNDS

1. The bank shall ensure sufficient cash supply for enterprises to spend according to their intended purpose, plan, and the scope of cash usage determined and agreed upon between the enterprise and the bank.

2. Enterprises are not allowed to transport cash from one province or city to another for spending but must transfer funds through the bank. The bank branch where the enterprise transfers money to has the responsibility to provide sufficient and timely cash for the enterprise's use in compliance with the State's regulations on cash management, market conditions, and prices.

3. Enterprises must deposit all cash revenue from sales into the State Bank – those units with regular purchasing needs may retain a portion of the cash revenue from sales for immediate spending, subject to agreement with the bank.

The bank branch assists the enterprise in calculating and adjusting the cash reserve level to suit the actual situation, in accordance with Circular No. 235-NH/CV dated November 14, 1981 of the Central State Bank.

4. Enterprises must register their production plans, labor plans, and wages with the bank in accordance with the prescribed regulations.

The bank controls the use of wage funds according to the implementation level of production and business plans, basic construction projects; the bank provides cash for enterprises to pay wages and bonuses promptly and in proportion to the volume of products completed by the enterprise. The bank will refuse to pay wages and bonuses if the enterprise exceeds the completion ratio of the production plan or awards improperly as stipulated in Decision No. 146-HĐBT and the guidelines of the Ministry of Labor.

V. IMPLEMENTATION ORGANIZATION.

This Circular applies to state-owned industrial enterprises (and joint ventures) under various sectors and levels (from county and district upwards) managed in accordance with Point 7 of Decision No. 146-HĐBT of the Council of Ministers.

Any provisions in previous documents issued by the State Bank that conflict with this document shall become invalid.

During the implementation process, any suggestions for supplementation or modification should be reported by provincial and municipal banks to the Central Bank along with specific recommendations for consideration and resolution.