Consolidated Document number 62/VBHN-BTC Circular guiding the financial management mechanism and assessment of the effectiveness of operations of the Guarantee Fund for Small and Medium Enterprises (SMEs)

MINISTRY OF FINANCE --------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 62/CONSOLIDATED DOCUMENT - MINISTRY OF FINANCE	Hanoi, December 31, 2020

CIRCULAR[1]

GUIDELINES FOR THE FINANCIAL MANAGEMENT SYSTEM AND ASSESSMENT OF THE EFFECTIVENESS OF OPERATIONS OF THE GUARANTEE FUND FOR SMALL AND MEDIUM ENTERPRISES

Circular No. 15/2019/TT-BTC dated March 18, 2019, issued by the Ministry of Finance, guiding the financial management system and assessment of the effectiveness of operations of the Guarantee Fund for Small and Medium Enterprises, effective from June 1, 2019, amended and supplemented by:

Circular No. 84/2020/TT-BTC dated October 1, 2020, issued by the Ministry of Finance, amending and supplementing regulations on periodic reporting systems within the authority of the Minister of Finance in the field of finance and banking, effective from November 15, 2020.

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law Amending and Supplementing Certain Articles of the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Enterprise Law dated November 26, 2014;

Pursuant to the Law on Support for Small and Medium Enterprises dated June 12, 2017;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 34/2018/NĐ-CP dated March 8, 2018, of the Government on the establishment, organization, and operation of the Guarantee Fund for Small and Medium Enterprises;

At the proposal of the Director of the Department of Banking and Financial Institutions;

The Minister of Finance issues this Circular to guide the financial management system and assessment of the effectiveness of operations of the Guarantee Fund for Small and Medium Enterprises.[2]

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

2. Applicability:

This Circular stipulates on:

a) Financial management regime for the Guarantee Fund for Small and Medium Enterprises at the local level (hereinafter referred to as the Guarantee Fund or the Fund), established, organized, and operated in accordance with Decree No. 34/2018/NĐ-CP dated March 8, 2018, of the Government (hereinafter referred to as Decree No. 34/2018/NĐ-CP of the Government);

b) Assessment of the effectiveness of operations of the Guarantee Fund.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

a) Guarantee Fund;

b) Lending organizations as stipulated in Clause 5, Article 3 of Decree No. 34/2018/NĐ-CP of the Government;

c) Small and medium enterprises receiving credit guarantees in accordance with Decree No. 34/2018/NĐ-CP of the Government;

d) Other organizations and individuals related thereto.

Article 2. Principles of Financial Management

The Guarantee Fund operates independently in terms of finance, bears responsibility for its own activities in accordance with the law; implements capital preservation and development, compensates for costs and risks in operations; operates according to principles of transparency, thrift, and efficiency as prescribed in Decree No. 34/2018/NĐ-CP of the Government, this Circular, and relevant laws.

Chapter II

MANAGEMENT OF CAPITAL AND ASSETS OF THE GUARANTEE FUND

Article 3. Sources of operating capital of the Guarantee Fund

The sources of operating capital of the Guarantee Fund shall be implemented in accordance with Article 40 of Decree No. 34/2018/NĐ-CP of the Government.

Article 4. Management and use of capital of the Guarantee Fund

The Guarantee Fund manages and uses capital in accordance with Article 41 of Decree No. 34/2018/NĐ-CP.

Article 5. Ensuring the safety of capital and assets

The Guarantee Fund has the responsibility to fully implement regulations on ensuring the safety of capital and assets of the Fund, including:

1. Managing and using capital and assets in accordance with their intended purposes and in compliance with Decree No. 34/2018/NĐ-CP of the Government, this Circular, and relevant laws.

2. Purchasing insurance for assets, operational risk insurance for credit guarantees, and other insurances as prescribed by law.

3. Establishing risk reserves:

a) Fully establishing risk reserves for guarantees as part of the Fund's operating expenses in accordance with Article 36 of Decree No. 34/2018/NĐ-CP of the Government, this Circular, and relevant laws;

b) Establishing and utilizing other risk reserves in accordance with regulations applicable to enterprises.

4. Handling asset losses in accordance with Clause 2 of this Article, Point b, Clause 3, Article 43 of Decree No. 34/2018/NĐ-CP of the Government, and Article 8 of this Circular.

5. Fully complying with regulations on the objects, conditions, scope of guarantees, limits on guarantee issuance, and other contents related to the Guarantee Fund's credit guarantee operations as prescribed in Decree No. 34/2018/NĐ-CP of the Government.

6. Not to use operating capital for monetary business purposes, securities investment, equity investment, purchasing shares of enterprises, real estate business, and other unauthorized business and investment activities (except idle funds of the Fund used in accordance with Clause 3, Article 41 of Decree No. 34/2018/NĐ-CP of the Government).

7. Not to raise capital through deposit-taking from organizations and individuals; issuing promissory notes, bonds, and bills.

8. Implementing other measures to ensure the safety of capital in accordance with the law.

Article 6. Classification of debts, establishment of risk reserve fund for guarantees, and risk management

1. The classification of debts, establishment of risk reserve fund for guarantees, and risk management of the Credit Guarantee Fund shall be carried out in accordance with the provisions of Article 36 and Article 37 of Decree No. 34/2018/ND-CP of the Government and relevant laws.

2. The time for establishing the risk reserve: The Credit Guarantee Fund shall establish the risk reserve fund for guarantees on December 31 of each year.

Article 7. Management of assets

1. The Credit Guarantee Fund shall develop the Regulation on the management of investment construction, procurement, and fixed asset management activities, to be submitted for approval by the Chairman of the Fund in accordance with Decree No. 34/2018/ND-CP of the Government, the Charter on Organization and Operation of the Credit Guarantee Fund, and relevant laws.

2. Investment, construction, and procurement of fixed assets by the Credit Guarantee Fund:

a) The authority to decide on investment projects, construction, and procurement of fixed assets of the Credit Guarantee Fund shall be implemented in accordance with the provisions of Decree No. 34/2018/ND-CP of the Government, the Charter on Organization and Operation, the Regulation on the management of investment construction, procurement, and fixed asset management of the Credit Guarantee Fund, and relevant laws;

b) The procedures for investment construction, procurement, and repair of fixed assets of the Credit Guarantee Fund shall be carried out in accordance with the regulations of a Limited Liability Company wholly owned by the State and the Regulation on the management of investment construction, procurement, and fixed asset management of the Credit Guarantee Fund;

c) The procurement of means of transportation for the operation of the Credit Guarantee Fund shall be applied according to the regulations applicable to a Limited Liability Company wholly owned by the State and the Regulation on the management of investment construction, procurement, and fixed asset management of the Credit Guarantee Fund;

d) The Credit Guarantee Fund shall implement investment construction and procurement of fixed assets serving the operations of the Fund within the scope of the capital stipulated in point b, Clause 1, Article 41 of Decree No. 34/2018/ND-CP of the Government.

3. Principles of depreciation, management, use, and depreciation period of fixed assets: The Credit Guarantee Fund shall implement the regulations on depreciation of fixed assets applicable to a Limited Liability Company wholly owned by the State and the Regulation on the management of investment construction, procurement, and fixed asset management of the Credit Guarantee Fund.

4. Leasing of fixed assets:

a) The Credit Guarantee Fund has the right to lease fixed assets based on the principle of efficiency, preservation, and development of capital in accordance with the law applicable to a Limited Liability Company wholly owned by the State;

b) The competent authority approving investment, construction, and procurement projects of fixed assets of the Credit Guarantee Fund is the authority deciding on leasing, mortgaging, or pledging of fixed assets.

5. Liquidation and sale of fixed assets:

a) The Credit Guarantee Fund has the right to proactively sell or liquidate fixed assets that are damaged, technologically obsolete, or not needed or usable;

b) The competent authority approving investment, construction, and procurement projects of fixed assets of the Credit Guarantee Fund is the authority deciding on the liquidation or sale of fixed assets;

c) The methods, procedures, and formalities for the liquidation and sale of fixed assets of the Credit Guarantee Fund shall be carried out in accordance with the law applicable to a Limited Liability Company wholly owned by the State and the Regulation on the management of investment construction, procurement, and fixed asset management of the Credit Guarantee Fund.

6. Inventory and revaluation of fixed assets:

a) The Credit Guarantee Fund must organize periodic or spot inventory to determine the quantity of fixed assets in the following cases: When closing the accounting books to prepare annual financial reports; after natural disasters, epidemics, or other reasons causing fluctuations in the assets of the Credit Guarantee Fund; as prescribed by competent state agencies;

b) For excess or missing assets, the cause and responsibility of related organizations and individuals must be clearly identified, and the amount of material compensation must be determined in accordance with Decree No. 34/2018/ND-CP of the Government and Article 8 of this Circular;

c) The Credit Guarantee Fund shall conduct revaluation of fixed assets upon the decision of a competent state agency or other cases as prescribed by law;

d) The revaluation of fixed assets and accounting treatment for increases or decreases in value due to revaluation of assets of the Credit Guarantee Fund shall be carried out in accordance with the regulations applicable to a Limited Liability Company wholly owned by the State.

Article 8. Handling Losses of the Credit Guarantee Fund's Assets

When suffering asset losses, the Credit Guarantee Fund must establish a Board to determine the extent of the loss, causes, responsibilities, and handle as follows:

1. Clearly identify objective and force majeure causes (natural disasters, epidemics, fires, unexpected accidents, political risks) and subjective causes.

2. If the cause is subjective, the individuals or groups causing the loss must compensate for damages according to the provisions of the law. The Credit Guarantee Fund shall specify the compensation procedures and decide on appropriate compensation amounts in accordance with the law and be responsible for its decisions.

3. If the assets have been insured, they shall be handled according to the laws on insurance.

4. Utilize the reserve funds established within expenses to offset losses in accordance with Decree No. 34/2018/NĐ-CP of the Government, this Circular, and related laws.

5. The value of the loss after compensating with personal and organizational insurance payments and using reserve funds established within expenses, if insufficient, shall be recorded as expenses of the Credit Guarantee Fund for the period.

Chapter III

MANAGEMENT OF INCOME, EXPENSES AND DISTRIBUTION OF FINANCIAL RESULTS

Article 9. Income of the Credit Guarantee Fund

The income of the Credit Guarantee Fund includes receivables generated during the period, determined in accordance with Vietnamese accounting standards and relevant laws, with valid invoices or supporting documents, and must be fully recorded as revenue, including:

1. Income from credit guarantee business activities:

a) Fees for reviewing loan guarantee application files;

b) Guarantee fees;

c) Mandatory collection fees from customers.

2. Income from financial activities;

a) Interest from deposits;

b) Interest income from government bonds, treasury bills, construction bonds, and government-guaranteed bonds;

c) Fees from managing sources of aid, support, sponsorship, and contributions (if applicable);

d) Fees for acting as an agent for local authorities, local financial funds, domestic and foreign organizations and individuals (the principal) to fulfill the principal's requirements as stipulated by law.

3. Other income:

a) Income from the liquidation and sale of assets;

b) Compensation money from insurance (the remaining amount after offsetting losses occurred);

c) Penalties for breach of economic contracts;

d) Income from service activities and rental income from the Credit Guarantee Fund's assets;

đ) Exchange rate differences (if applicable);

e) Other lawful income as prescribed by law.

4. The Credit Guarantee Fund is responsible for collecting income accurately, completely, and promptly according to the prescribed regulations.

Article 10. Expenses of the Credit Guarantee Fund

The expenses of the Credit Guarantee Fund include necessary costs incurred during the period for the operation of the Credit Guarantee Fund, adhering to the principle of matching income and expenses, with valid invoices and supporting documents as required by law, including:

1. Expenses for credit guarantee business activities:

a) Interest payments and other funding costs as prescribed by law;

b) Reserve fund establishment for credit guarantee risk as prescribed in Article 6 of this Circular;

c) Insurance premiums for business risks and other types of insurance as prescribed in Decree No. 34/2018/NĐ-CP of the Government and related laws;

d) Exchange rate differences (if applicable);

đ) Taxes and fees paid for activities as required by current laws;

e) Other expenses for business activities: Expenses for recovering written-off debts, bad debts, service fees for debt recovery from authorized organizations, expenses for purchasing and selling debts, expenses for seizing, preserving, and exploiting collateral assets during the process of handling bad debts, expenses for handling capital and asset losses and substitute repayments after offsetting with prescribed sources, legal fees, consulting fees, court fees, payment of debts that were previously determined not to have a debtor but later identified, expenses for items recorded as income but not actually received and not reduced from income, agency fees, outsourcing service fees serving business activities, and other expenses as prescribed by law.

2. Expenses for financial activities: Expenses related to depositing funds at commercial banks and other financial activity expenses as prescribed in this Circular.

3. Administrative expenses:

Expenses for personnel and management of the Credit Guarantee Fund according to the State regulations for a wholly state-owned limited liability company:

a) Personnel expenses: Salary, allowances, wages, social security contributions, health insurance, unemployment insurance, work injury and occupational disease insurance, trade union fees, meal allowances, female worker allowances, labor protection expenses, transaction uniform expenses, annual leave expenses, severance pay, job loss assistance for workers, and other expenses related to staff reduction when the Credit Guarantee Fund implements restructuring according to approved plans; other employee expenses as prescribed by law;

b) For management activities and public services: Travel expenses for employees and managers of the Fund when traveling domestically and internationally; expenses for purchasing office supplies, office equipment, paper, ink, documentation materials, books, newspapers, and other materials; postal, telephone, and communication fees; rental expenses for assets and equipment serving the operations of the Fund; conference, seminar, training, and staff development expenses; publicity, printing, reception, ceremonial, transaction, external relations, and group entry and exit expenses; hospitality, publicity, and advertising expenses as prescribed by law; inspection, supervision, and audit expenses related to the operations of the Fund; support expenses for the activities of the Party organization and mass organizations of the Fund; electricity, water, sanitation, environmental protection, and health care expenses; other expenses in accordance with the provisions of the law.

c) Asset-related expenses: Depreciation expenses for fixed assets according to general regulations applicable to enterprises; expenses for purchasing tools and equipment; asset rental expenses; maintenance, repair, and operation expenses for assets; insurance expenses for assets, sale and liquidation expenses for assets excluding the residual value of liquidated and transferred fixed assets (if any).

4. The cost standards stipulated in Clause 1, Clause 2, and Clause 3 of this Article shall be implemented in accordance with the provisions of the law for a limited liability company wholly owned by the State. In cases where the law has not provided specific regulations or does not control cost standards, the Credit Guarantee Fund shall base its financial capacity to establish cost standards and decide on expenditures that ensure appropriateness, efficiency, and legal responsibility.

5. The determination of revenue and expenses for corporate income tax purposes of the Credit Guarantee Fund shall be carried out in accordance with the provisions of the tax law.

Article 11. Items Not Included in the Operating Expenses of the Credit Guarantee Fund

1. Losses that have been supported by the State or compensated by insurance agencies, the party causing damage.

2. Administrative penalty expenses, including traffic law violations, accounting and statistical law violations, and other administrative penalties as prescribed by law.

3. Expenses without invoices or invalid receipts.

4. Expenses from other funding sources.

5. Expenses supporting localities, social organizations, and other agencies.

6. Expenses exceeding the limits prescribed in this Circular and other relevant regulatory documents.

Article 12. Financial Results and Distribution of Financial Results

1. The financial results and distribution of financial results of the Credit Guarantee Fund shall be implemented in accordance with the provisions of Article 43 of Decree No. 34/2018/ND-CP of the Government.

2. Establishment of incentive and welfare funds:

a) Credit Guarantee Funds classified as Class A shall allocate three months' salary for the establishment of incentive and welfare funds.

b) Credit Guarantee Funds classified as Class B shall allocate one and a half months' salary for the establishment of incentive and welfare funds.

c) Credit Guarantee Funds classified as Class C shall allocate one month's salary for the establishment of incentive and welfare funds.

3. Establishment of management bonus fund (including the Chairman, Supervisor, Director, Deputy Directors, and Chief Accountant of the Credit Guarantee Fund):

a) Credit Guarantee Funds classified as Class A shall allocate one and a half months' salary for the establishment of the management bonus fund.

b) Credit Guarantee Funds classified as Class B shall allocate one month's salary for the establishment of the management bonus fund.

c) Credit Guarantee Funds classified as Class C shall not establish a management bonus fund.

4. In cases where the surplus from revenues minus expenses remains insufficient after establishing the investment development reserve fund and financial contingency reserve fund to cover the required amounts for the incentive and welfare fund and management bonus fund as prescribed, the Credit Guarantee Fund may reduce the allocation to the investment development reserve fund to supplement the necessary amount for the incentive and welfare fund and management bonus fund, but must ensure the minimum allocation to the investment development reserve fund as prescribed in Article 43 of Decree No. 34/2018/ND-CP of the Government.

Article 13. Management and use of funds

The management and use of funds of the Credit Guarantee Fund shall be carried out in accordance with the provisions of Article 43 of Decree No. 34/2018/NĐ-CP of the Government.

Chapter IV

ASSESSMENT OF EFFECTIVENESS AND RANKING OF THE CREDIT GUARANTEE FUND

Article 14. Indicators for assessing effectiveness

1. The annual indicators for assessing the effectiveness of the Credit Guarantee Fund include:

a) Indicator 1: Growth rate of credit guarantee issuance volume;

b) Indicator 2: Ratio of debt repaid on behalf of enterprises;

c) Indicator 3: Ratio of compulsory debt recovery for annual credit guarantee activities;

d) Indicator 4: Total income minus total expenses;

đ) Indicator 5: Compliance with laws on investment, management, and use of capital and assets, obligations to the state budget, and financial reporting systems of the Credit Guarantee Fund.

2. Methods for determining the annual effectiveness assessment indicators of the Credit Guarantee Fund:

a) The growth rate indicator of credit guarantee issuance volume is determined based on the actual credit guarantee issuance volume reported in the annual business operation report approved by the Chairman of the Fund and the annual plan assigned by the Chairman of the Credit Guarantee Fund;

b) The ratio indicator of debt repaid on behalf of enterprises is determined based on the actual ratio of debt repaid on behalf of enterprises reported in the annual business operation report approved by the Chairman of the Fund and the annual plan assigned by the Chairman of the Credit Guarantee Fund;

c) The ratio indicator of compulsory debt recovery is determined by the ratio of actually recovered principal debt over the total due principal debt at the end of the year for the guaranteed party, and this indicator is based on the actual performance reported in the annual business operation report approved by the Chairman of the Fund and the annual plan assigned by the Chairman of the Credit Guarantee Fund;

d) The total income minus total expenses indicator is determined based on the actual figures reported in the annual financial audit report according to regulations and the annual plan assigned by the Chairman of the Credit Guarantee Fund;

đ) Compliance with policies and legal systems: Based on compliance with and implementation of national policies and systems in the field of finance, including accounting and auditing systems, financial reporting systems for the Credit Guarantee Fund, expenditure systems, procurement and asset management systems to determine this indicator. Compliance with policies and legal systems means adhering to the regulations without any acts of non-compliance, omission, incomplete, untimely, or non-implementation.

3. The indicators specified in points a, b, c, and d of Clause 2 of this Article shall not be adjusted throughout the implementation period when evaluating the effectiveness of the Fund's operations. In cases where adjustments to the effectiveness assessment indicators of the Fund specified in Clause 1 and Clause 2 of this Article are made due to objective and force majeure reasons (natural disasters, epidemics, fires, unexpected accidents, political risks), the Chairman of the Fund shall consider and decide after obtaining approval from the Chairman of the Provincial People's Committee.

4. The Chairman of the Credit Guarantee Fund shall establish indicators for the growth rate of credit guarantee issuance volume, the ratio of debt repaid on behalf of enterprises, the ratio of compulsory debt recovery, total income minus total expenses in the annual financial plan and other indicators (if any) and report them to the Chairman of the Provincial People's Committee for review and approval before issuing the decision. These indicators should be reported to the Chairman of the Provincial People's Committee before March 15 of the planning year to serve as a basis for assessing the effectiveness of the Credit Guarantee Fund's operations.

5. The effectiveness assessment indicators of the Credit Guarantee Fund specified in points a, b, and c of Clause 2 of this Article shall apply to all guaranteed amounts and compulsory debts from the date Decree No. 34/2018/NĐ-CP of the Government takes effect.

Article 15. Method for assessing the effectiveness and classification results of the Credit Guarantee Fund

1. Indicator 1: Growth rate of credit guarantee business volume

a) The Credit Guarantee Fund is classified as type A when the growth rate of credit guarantee business volume achieved is at least 90% of the assigned plan for the year;

b) The Credit Guarantee Fund is classified as type B when the growth rate of credit guarantee business volume achieved is from 75% to less than 90% of the assigned plan;

c) The Credit Guarantee Fund is classified as type C when the growth rate of credit guarantee business volume achieved is below 75% of the assigned plan.

2. Indicator 2: Ratio of debt repaid on behalf of small and medium-sized enterprises

a) The Credit Guarantee Fund is classified as type A when the ratio of debt repaid on behalf of small and medium-sized enterprises over the total outstanding guarantee balance is equal to or lower than the assigned plan;

b) The Credit Guarantee Fund is classified as type B when the ratio of debt repaid on behalf of small and medium-sized enterprises over the total outstanding guarantee balance is from above 100% to 110% of the assigned plan;

c) The Credit Guarantee Fund is classified as type C when the ratio of debt repaid on behalf of small and medium-sized enterprises over the total outstanding guarantee balance exceeds 110% of the assigned plan.

3. Indicator 3: Ratio of compulsory debt recovery

a) The Credit Guarantee Fund is classified as type A when the ratio of compulsory debt recovery achieved is at least 90% of the assigned plan for the year;

b) The Credit Guarantee Fund is classified as type B when the ratio of compulsory debt recovery achieved is from 75% to less than 90% of the assigned plan;

c) The Credit Guarantee Fund is classified as type C when the ratio of compulsory debt recovery achieved is below 75% of the assigned plan.

4. Indicator 4: Total income minus total expenses

a) The Credit Guarantee Fund is classified as type A when the total income minus total expenses achieved is at least 90% of the assigned plan for the year;

b) The Credit Guarantee Fund is classified as type B when the total income minus total expenses achieved is from 75% to less than 90% of the assigned plan;

c) The Credit Guarantee Fund is classified as type C when the total income minus total expenses achieved is below 75% of the assigned plan.

5. Indicator 5: Compliance with systems and policies

a) The Credit Guarantee Fund is classified as type A if it has not been issued a notice or conclusion by competent authorities regarding violations of mechanisms and policies as stipulated in Clause 2, Point d of Article 14 of this Circular;

b) The Credit Guarantee Fund is classified as type B if it violates one of the following situations: It is reminded in writing by the Ministry of Finance or other competent authority for failing to submit reports on the operation status, financial statements, and other reports as required and within the prescribed time limit for the second time for each type of report; It is administratively penalized by competent authorities with fines, where the amount of each fine does not exceed VND 50,000,000 (excluding the amount required to be paid to rectify the consequences) arising during the fiscal year in which the evaluation and classification of the Credit Guarantee Fund is conducted;

c) The Credit Guarantee Fund is classified as type C if it violates one of the following situations: It fails to submit reports on the operation status, financial statements, and other reports as required or submits them incorrectly or late, being reminded in writing by the Ministry of Finance or other competent authority three times or more for each type of report; It is administratively penalized by competent authorities with fines, where the amount of each fine is VND 50,000,000 or more (excluding the amount required to be paid to rectify the consequences) arising during the fiscal year in which the evaluation and classification of the Credit Guarantee Fund is conducted; The manager or executive of the Credit Guarantee Fund commits acts violating laws during the performance of their duties to the extent that they are criminally prosecuted.

6. The assessment of the effectiveness and classification of the Credit Guarantee Fund is based on comparing the assigned plans, objectives, and tasks with the actual results and monitoring outcomes of the Credit Guarantee Fund's operations.

Article 16. Classification of Credit Guarantee Funds

1. A Credit Guarantee Fund shall be classified as Class A if it does not have any criteria classified as Class C, and at least two (2) of the following criteria are reclassified as Class A: criterion 1, criterion 2, criterion 3, criterion 4, and criterion 5.

2. A Credit Guarantee Fund shall be classified as Class C if two (2) or more of the five (5) criteria are classified as Class C.

3. A Credit Guarantee Fund shall be classified as Class B in cases where it is not classified as Class A or Class C.

4. Annually, based on the evaluation criteria for operational effectiveness set forth in this Circular, the Credit Guarantee Fund shall report its operational results and classification to the Chairman of the Provincial People's Committee for the purpose of classifying the Credit Guarantee Fund.

Article 17. Classification of Credit Guarantee Fund Managers

1. The manager of a Credit Guarantee Fund shall be deemed to have satisfactorily fulfilled their duties when:

a) They effectively implement the assessment criteria for managerial performance as prescribed by the Government regarding management of officials in state-owned joint stock companies with 100% state capital and according to the guidelines of the Ministry of Home Affairs;

b) They achieve or exceed the targets set by the Chairman of the Credit Guarantee Fund for growth in credit guarantee turnover and the rate of compulsory debt recovery. They complete or exceed the approved financial plan before March 1st of the assessment year;

c) The Credit Guarantee Fund is classified as Class A under this Circular.

2. The manager of a Credit Guarantee Fund shall be deemed to have failed to fulfill their duties when:

a) They do not effectively implement the assessment criteria for managerial performance as prescribed by the Ministry of Home Affairs;

b) They achieve less than eighty-five percent (85%) of the targets set by the Chairman of the Credit Guarantee Fund for growth in credit guarantee turnover and the rate of compulsory debt recovery. They achieve less than ninety percent (90%) of the approved financial plan before March 1st of the assessment year;

c) The Credit Guarantee Fund is classified as Class C under this Circular.

3. The manager of a Credit Guarantee Fund fulfills their duties in all other cases not covered by paragraphs 1 and 2 of this Article.

Chapter V

ACCOUNTING SYSTEM, FINANCIAL PLANNING, INFORMATION REGIME, REPORTING AND AUDITING

Article 18. Accounting and Statistics of Credit Guarantee Funds

1. Credit Guarantee Funds shall comply with the legal provisions on accounting systems and statistics, maintain complete original vouchers, update accounting records, and accurately, timely, truthfully, and objectively reflect all activities of the Fund.

2. The fiscal year of a Credit Guarantee Fund runs from January 1st to December 31st each year.

Article 19. Annual Financial Plan of Credit Guarantee Funds

1. Credit Guarantee Funds shall be responsible for developing an annual financial plan to be decided upon by the Chairman of the Fund after obtaining approval from the Provincial People's Committee, including:

a) Capital sources and usage plans; total income and total expenses; plans for purchasing fixed assets according to Appendices 1, 2, 3, 4, and 5 attached to this Circular;

b) The ratio of debt repaid on behalf of enterprises, the rate of compulsory debt recovery.

2. Timeframe for planning:

a) Before November 1st of each year, the Credit Guarantee Fund shall prepare the annual financial plan for the planning year to submit for review and comments by the Chairman of the Fund;

b) Before December 31st of each year, the Chairman of the Fund shall report to the Provincial People's Committee on the annual financial plan of the Credit Guarantee Fund for the planning year;

c) Before March 30th of the planning year, the Provincial People's Committee shall review and approve the annual financial plan of the Credit Guarantee Fund for the planning year;

d) Within three (3) working days from the date of approval of the annual financial plan of the Credit Guarantee Fund by the Provincial People's Committee, the Chairman of the Fund shall issue a Decision approving the annual financial plan of the Credit Guarantee Fund for the planning year for implementation by the Fund and send it to the Chairman of the Provincial People's Committee and relevant agencies as prescribed for management and supervision.

Article 20. Information, Reporting, Audit, and Public Disclosure of Financial Statements of the Credit Guarantee Fund.

1. The information, reporting, audit, and public disclosure of financial statements of the Credit Guarantee Fund shall be implemented in accordance with the provisions of Article 44 and Article 45 of Decree No. 34/2018/ND-CP of the Government.

2. [3] The method for submitting reports shall be carried out through one of the following methods:

a) Directly in paper form;

b) Through postal service in paper form;

c) Sending via the electronic mail system or the specialized information reporting software system;

d) Other methods as prescribed by law.

Chapter VI

RESPONSIBILITIES OF THE AUTHORITIES

Article 21. Responsibilities of the Ministry of Finance

1. Implement the responsibilities prescribed in Article 58 of Decree No. 34/2018/ND-CP of the Government.

2. Amend and supplement the financial management mechanism and assess the effectiveness of operations for the Credit Guarantee Fund (if necessary).

Article 22. Responsibilities of the Credit Guarantee Fund

1. The Credit Guarantee Fund is responsible for strictly implementing the provisions stipulated in Decree No. 34/2018/ND-CP of the Government, detailed guidance provided in this Circular, and other relevant legal documents.

2. Adhere to the financial management regime as prescribed in this Circular and other relevant legal documents.

3. Based on the provisions of this Circular and related regulations, the Fund has the responsibility to issue business operation rules and financial management rules to ensure the safe and effective management and utilization of state capital under its management.

Chapter VII

IMPLEMENTATION

Article 23. Transitional Provisions

For Credit Guarantee Funds that have been established, are currently operating, and are implementing the financial mechanism as prescribed in Circular No. 147/2014/TT-BTC dated October 8, 2014, of the Ministry of Finance guiding certain provisions of Decision No. 58/2013/QĐ-TTg dated October 15, 2013, of the Prime Minister regarding the establishment, organization, and operation of Credit Guarantee Funds for small and medium-sized enterprises, and handling the balances at the end of December 31, 2018 (capital reserve fund, financial reserve fund, business development investment fund, reward fund, and welfare fund) established according to Circular No. 147/2014/TT-BTC, the balances shall be handled as follows:

1. The balances of the additional capital reserve fund and the business development investment fund shall be transferred to the investment development fund prescribed in Decree No. 34/2018/ND-CP of the Government and this Circular.

2. The balances of the funds set aside after profit distribution, including the financial reserve fund, reward fund, and welfare fund, shall be transferred to funds with the same purpose of use as prescribed in Article 43 of Decree No. 34/2018/ND-CP of the Government and this Circular.

Article 24. Effective Date

[4]

1. This Circular takes effect from June 1, 2019, and applies from the fiscal year 2019. This Circular replaces Circular No. 147/2014/TT-BTC dated October 8, 2014, guiding certain provisions of Decision No. 58/2013/QĐ-TTg dated October 15, 2013, of the Prime Minister regarding the establishment, organization, and operation of Credit Guarantee Funds for small and medium-sized enterprises.

2. During implementation, if there are difficulties or obstacles, the relevant agencies and units are requested to report to the Ministry of Finance for guidance in accordance with the law./.

CERTIFIED CONSOLIDATED DOCUMENT DEPUTY MINISTER DEPUTY MINISTER Huynh Quang Hai

ANNEX 1

FINANCIAL PLAN FOR THE YEAR...

(Annexed to Circular No. 15/2019/TT-BTC dated March 18, 2019, of the Ministry of Finance)

I. Indicators

Unit of measurement:...VND

No.	Content	Implementation Year , excluding abnormal one-off costs in year	Implementation Year N-1	Plan Year N	Comparison
I	Total income
1	Business Activity Revenue
2	Financial Activity Revenue
3	Other income
II	Value-added tax and other taxes (as applicable)
1	Business Activity Expenses
2	Expenses for Fund Staff
3	Management and Administrative Expenses
4	Benefits protecting economic activities
III	Pre-tax Financial Results
IV	Obligations to the State Budget (if any)
V	Post-tax Revenue Difference
VI	Business Activity Indicators

II. Explanation

1. Evaluation of the business activity situation in the implementation year.

2. Evaluation of the financial situation in the implementation year (income, expenses, profit, loss).

3. Business activity plan for the planning year.

4. Financial plan for the planning year, including the following contents:

- Assumptions used to develop the financial plan, income and expense plans (details of each type of income and expense according to Appendix 2); reasons for increasing or decreasing the plan for each type of income and expense.

- Capital source plan and capital utilization plan.

- Investment and fixed asset procurement plan (details according to Appendix 3).

- Labor, salary, and bonus plan.

STATE BANK OF VIETNAM (FOREIGN EXCHANGE MANAGEMENT DEPARTMENT (Sign and write full name)

ANNEX XVIII (Sign and write full name)

… day … month … year … DIRECTOR (Signature and full name, stamp)

Appendix 2

DETAIL OF INCOME AND EXPENSE PLAN FOR THE YEAR...

(Annexed to Circular No. 15/2019/TT-BTC dated March 18, 2019, of the Ministry of Finance)

I. INCOME

Unit of measurement:...VND

No.	Content	Implementation Year N-2	Implementation Year N-1	Plan Year N	Comparison
I	Business Activity Revenue
	Details of each type of income
	..........
II	Financial Activity Revenue
	..........
	..........
III	Other income
	..........
	..........

Note: The explanation should clearly state the basis for determining income and analyze the reasons for the increase or decrease in each type of income in the planning year.

II. EXPENSES

1	Content	Implementation Year N-2	Implementation Year N-1	Plan Year N	Comparison
I	Business Activity Expenses
	Details of each type of expense
	..........
	..........
II	Expenses for Fund Staff
III	Management and Administrative Expenses
	..........
IV	Benefits protecting economic activities
	..........

Note: The explanation should clearly state the basis for establishing expenses and analyze the reasons for the increase or decrease in each type of expense in the planning year.

Tel:

FIXED ASSET PROCUREMENT PLAN FOR THE YEAR...

(Annexed to Circular No. 15/2019/TT-BTC dated March 18, 2019, of the Ministry of Finance)

I. Fixed Asset Procurement Plan

Unit of measurement:...VND

No.	Content	Unit of Measurement	Quantity	Unit price	Total Amount	Remarks
	Details
	Total

II. Explanation

- Current asset status.

- Proposed fixed asset procurement plan for the year (clearly stating the reasons and necessity).

Appendix 4

REPORT ON FINANCIAL INCOME AND EXPENDITURE SITUATION FOR THE YEAR...

(Annexed to Circular No. 15/2019/TT-BTC dated March 18, 2019, of the Ministry of Finance)

Unit of measurement:...VND

Account Number	Content	Occurrence during the year	Remarks
1	2	3	4
I	INCOME
	Business Activity Income
	Details of each income item
	................
	Financial Activity Revenue
	................
	Other income
	................
II	EXPENSES
	Business Activity Expenses
	Details of each expense item
	................
	Expense for risk provision
	Guarantee risk provision expense
	Financial risk provision expense
	Financial activity expense
	Expenses for Fund Staff
	................
	Management and administrative expense
	Asset expense
	Benefits protecting economic activities
	................
III	INCOME EXPENSE DIFFERENCE (III = I - II)

STATE BANK OF VIETNAM (FOREIGN EXCHANGE MANAGEMENT DEPARTMENT (Sign and write full name)

ANNEX XVIII (Sign and write full name)

...day...month...year... DIRECTOR (Signature and full name, stamp)

… (Name of economic organization) requests to change the Certificate of Registration for Currency Exchange Agent with the following content:

REPORT ON DISTRIBUTION OF FINANCIAL RESULTS AND USE OF FUNDS FOR THE YEAR...

(Annexed to Circular No. 15/2019/TT-BTC dated March 18, 2019, of the Ministry of Finance)

Unit of measurement:...VND

Serial number	Income Distribution	Beginning Balance	Occurrence during the year		Ending Balance	Remarks
			Increase Occurrence	Decrease Occurrence
1	2	3	4	5	6	7
1	Development Investment Fund
2	Financial Reserve Fund
3	Manager Reward Fund
4	Reward fund
5	Welfare fund
	Total

STATE BANK OF VIETNAM (FOREIGN EXCHANGE MANAGEMENT DEPARTMENT (Sign and write full name)

ANNEX XVIII (Sign and write full name)

… day … month … year … DIRECTOR (Signature and full name, stamp)