Pursuant to …;

Regarding the issuance of the Regulation on Management and Utilization of Non-Governmental Foreign Aid

___________________________

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

At the proposal of the Minister of Planning and Investment,

DECISION:

Article 1. This Decision promulgates the Regulation on Management and Utilization of Non-Governmental Foreign Aid (hereinafter referred to as PCP).

Article 2. This Decision replaces Decision No. 28/1999/QĐ-TTg dated February 23, 1999 of the Prime Minister and takes effect 15 days from the date of signature. All previous regulations contrary to this Decision shall be abolished.

Article 3. The Minister of Planning and Investment and the Minister of Finance shall be responsible for guiding and supervising the implementation of this Decision.

Article 4. Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial people's committees, Chairperson of the Vietnam Association of Friendship Organizations, Heads of central agencies of mass organizations and people's organizations shall be responsible for implementing this Decision./.

REGULATIONS

Management and utilization of non-governmental foreign aid

_______________________

(Issued together with Decision No. 64/2001/QĐ-TTg

dated April 26, 2001 of the Prime Minister)

PART I

GENERAL PROVISIONS

Article 1. This Regulation governs all activities related to attracting, managing, and utilizing non-governmental foreign aid (hereinafter referred to as PCP).

PCP mentioned in this Regulation refers to non-repayable aid and assistance without profit-making purposes provided by foreign non-governmental organizations, other organizations, and individuals from abroad, including overseas Vietnamese (hereinafter referred to as the Donor) to support ministries, sectors, localities, and people's organizations (including mass organizations, political-social organizations, social-professional organizations, and some other organizations) of Vietnam (hereinafter referred to as the Vietnamese Party) to achieve humanitarian and development goals for Vietnam.

PCP mainly includes the following forms:

- Aid through programs and projects.

- Non-project aid (including emergency relief).

Article 2. Definitions

In this Regulation, the following terms shall be understood as follows:

1. "Program" is a set of interrelated projects involving multiple economic and technical sectors, regions, and different subjects, requiring implementation through an interdisciplinary approach, with a relatively long duration and resources mobilized from various sources and methods.

2. "Project" is a set of interrelated activities aimed at achieving specific objectives within a defined timeframe based on certain resources.

3. "Agreement on PCP Aid" is a document recording the initial intention (non-legally binding) regarding PCP aid between representatives of the Vietnamese Party and the Donor.

4. "Program and Project Aid Documentation" is an official document expressing the commitment between representatives of the Vietnamese Party and the Donor regarding a specific program or project, clearly defining: objectives, activities, results to be achieved, resources to be used, timeframes and implementation plans, rights, obligations, and responsibilities of the parties involved.

5. "Non-project aid" is aid not included in programs or projects, provided in the form of goods (commodities, materials, equipment), cash, or experts (including volunteer experts) for humanitarian and charitable purposes (hereinafter collectively referred to as humanitarian).

6. "Emergency Relief": is non-project aid implemented urgently immediately after emergencies occur (natural disasters or other calamities) and lasts up to two months after the emergencies end. If this relief continues beyond this period, it will be considered post-emergency recovery aid.

Article 3. PCP aid is used to implement humanitarian goals and support the achievement of priority socio-economic development goals of Vietnam during each period.

Chapter II

RAISING, NEGOTIATING, APPROVING AND SIGNING

NON-GOVERNMENTAL AID

Article 4. The work of raising PCP aid is conducted regularly, guided, and organized:

1. Raising PCP aid for programs and projects is carried out based on specific socio-economic development needs, public investment programs, planning, and plans for attracting and utilizing external support funds from the state or sectors and localities in each period; capacity to receive (including counterpart funds)...

2. Raising aid for humanitarian purposes must be based on social conditions and actual needs of ministries, sectors, localities, and people's organizations in each year or period.

3. Raising emergency relief must be based on specific damage levels concerning people, property, infrastructure, etc., in affected regions or localities due to natural disasters or other calamities. The Ministry of Foreign Affairs coordinates with relevant agencies to consider and submit to the Prime Minister for decision on the level of appeal for emergency international aid (including the Donors specified in this Regulation).

Article 5. Basis for negotiating and signing PCP aid:

1. For aid for programs and projects, there must be program and project documentation. If the implementation period exceeds one year, a plan of activities and an estimate of necessary funding for each year must be prepared, as well as clearly identifying the funding already available from the Donor and the amount needed to be raised in subsequent years.

2. For non-project aid, the content of the aid, the recipient, and the recipient entity must be clearly stated, along with a detailed list of goods if the aid is in kind, or the total value if the aid is in cash.

For emergency relief, in addition to the requirements mentioned above, the extent of damage and immediate essential needs that need to be addressed during the emergency must also be clearly stated.

3. Signing of PCP aid can only be carried out when approved by the competent authority as stipulated in Article 6 of this Regulation.

Article 6. Approval authority for PCP aid is as follows:

1. The Prime Minister approves:

a) Programs and projects using PCP aid with a capital amount of 500,000 USD or more.

b) All programs and projects related to institutional systems, policies, laws, administrative reform, information culture, religion, national defense, and security.

c) Non-project grants with a value of US$200,000 or more.

d) Non-project grants supporting activities mentioned in point b, Clause 1, Article 6.

e) Programs, projects, and non-project grants containing restricted import items (cars, motorcycles, used goods, and certain types of new drugs as specified in the list prescribed by the Government).

g) Emergency relief grants without specific addresses (the donor does not designate relief for a specific locality).

2. Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under central cities, Heads of central agencies of people's organizations (or competent authorities deciding establishment for organizations without central agencies) shall approve:

a) Programs and projects with capital below US$500,000 (except for points 1b and 1e of Article 6).

b) Non-project grants with a value below US$200,000 (except for points 1d and 1e of Article 6).

c) All emergency relief grants with specific addresses.

Article 7. The sale of goods under non-governmental organization (NGO) grants is regulated as follows:

1. Goods under NGO grants that are brought into Vietnam for sale to achieve predetermined objectives shall be subject to review and decision by the competent authority concurrently with the approval stipulated in Article 6 of this Regulation.

2. Such goods must be sold through public auction in accordance with Decree No. 86/CP dated December 19, 1996 of the Government on the issuance of regulations on public auction of assets.

Chapter III

STATE MANAGEMENT OF NON-GOVERNMENTAL ORGANIZATION GRANTS

Article 8. The Government shall uniformly manage all sources of NGO grants from fundraising to negotiation and signing of assistance agreements with donors, monitor and supervise the implementation process, and evaluate the results and effectiveness of the use of NGO grants.

Article 9. The Ministry of Planning and Investment shall be responsible for coordinating and managing programs and projects using NGO grants and compiling comprehensive reports on NGO grants every six months and annually to report to the Prime Minister. The Ministry of Planning and Investment shall have the following tasks:

1. Together with relevant agencies, guide ministries, sectors, localities, and people's organizations in building programs and projects to solicit NGO grants.

2. Review and compile opinions of relevant agencies to submit to the Prime Minister for consideration and approval of programs and projects as stipulated in points a, b, and e of Clause 1, Article 6 of this Regulation.

3. Participate in discussions with the Ministry of Finance to submit to the Prime Minister for consideration and approval of non-project grants as stipulated in points c, d, and e of Clause 1, Article 6 of this Regulation.

4. Coordinate with the Ministry of Finance to allocate counterpart funds in the annual state budget plan for units receiving state budget funding to implement programs and projects committed to donors in accordance with the State Budget Law and Decree No. 87/CP dated December 19, 1996 of the Government on the decentralization of management, preparation, execution, and settlement of the state budget.

5. Coordinate with the Ministry of Finance, the Vietnam Association of Friendship Organizations, and relevant agencies to organize monitoring, inspection, and supervision of the receipt, management, and implementation of NGO grants; compile, analyze, and evaluate the effectiveness of NGO grants; handle issues within their jurisdiction and recommend to the Prime Minister for consideration and decision on issues exceeding their jurisdiction.

6. Coordinate with the General Statistics Office to issue reporting forms for programs and projects.

Article 10. The Ministry of Finance shall be responsible for state financial management of NGO grants and shall primarily coordinate and manage non-project grants. The Ministry of Finance shall have the following tasks:

1. Coordinate with relevant agencies to establish financial management systems for NGO grants within their authority and recommend to the Prime Minister for consideration and decision on issues exceeding their authority.

2. Allocate counterpart funds in the annual state budget plan as stipulated in Clause 4, Article 9 of this Regulation.

3. Monitor and inspect the receipt, use, management, and implementation of NGO grants within the scope of their professional expertise.

4. Compile non-project grants; settle financial accounts for all NGO grants; participate with the Ministry of Planning and Investment in compiling comprehensive reports on NGO grants every six months and annually to report to the Prime Minister.

5. Participate in reviewing programs and projects approved by the Prime Minister.

6. Compile opinions to submit to the Prime Minister for consideration and decision on non-project grants as stipulated in points c, d, e, and g of Clause 1, Article 6 of this Regulation.

7. Be responsible for organizing the receipt, distribution, and use of emergency relief grants as stipulated in point g, Clause 1, Article 6 of this Regulation and report to the Prime Minister on the results of implementation.

8. Coordinate with the Ministry of Planning and Investment and the General Statistics Office to issue reporting forms for non-project grants.

Article 11. The Ministry of Foreign Affairs shall have the following responsibilities:

1. Coordinate with relevant agencies in soliciting and securing NGO grants.

2. Coordinate with the Vietnam Association of Friendship Organizations in calling for emergency relief as stipulated in Clause 2, Article 5 of this Regulation.

Article 12. The Office of the Government shall have the following responsibilities:

1. Assist the Prime Minister in inspecting and urging the implementation of this Regulation.

2. Participate in the review work and propose policy recommendations regarding programs and projects; provide opinions on non-project grants within the Prime Minister's decision-making authority before submitting to the Prime Minister.

Article 13. The Vietnam Association of Friendship Organizations shall be primarily responsible for relations and solicitation of grants from donors. The Vietnam Association of Friendship Organizations shall have the following tasks:

1. Coordinate with the Ministry of Foreign Affairs and relevant agencies to organize the solicitation of NGO grants based on areas, priority directions, and general foreign policy.

2. Participate in the review (mainly providing information and comments on the activities of the Donor...) of programs and projects; provide opinions to the Ministry of Finance regarding non-project aid within the Prime Minister's decision-making authority and monitor the activities of PCP aid projects.

3. Report to the Ministry of Planning and Investment on the situation of soliciting PCP aid every six months and annually for the Ministry of Planning and Investment to compile and report to the Prime Minister.

4. Coordinate with the Ministry of Foreign Affairs to make recommendations to the Prime Minister regarding the policy for soliciting emergency relief.

Article 14. The Ministry of Public Security has the following responsibilities:

1. Guide and support Vietnamese agencies and organizations in implementing regulations on security protection during the receipt and use of PCP aid.

2. Provide opinions to the Ministry of Planning and Investment and the Ministry of Finance regarding programs, projects, and non-project aid related to state institutions, policies, laws, religion, national defense, and security before submitting them to the Prime Minister for consideration and decision.

Article 15. The Government Office of Religion has the responsibility to guide and support Vietnamese agencies and organizations in implementing state policies on religion during the receipt and use of PCP aid.

Article 16. Ministries, ministerial-level agencies, government agencies, provincial people's committees under the central government, and central agencies of people's organizations have the responsibility:

1. Identify subordinate agencies and units with sufficient capacity to serve as focal points and manage PCP aid in accordance with the actual situation of each agency and locality.

2. Direct subordinate units to solicit and seek PCP aid from donors based on their annual plans or specific periods and the country's overall foreign policy.

3. Direct subordinate units to prepare the contents of programs, projects, humanitarian aid proposals, and submit them to the state management agencies mentioned in Articles 9, 10, 11, 12, and 13 of this Regulation as a basis for soliciting and approving PCP aid.

4. Coordinate with relevant agencies to understand and contact donors.

5. Ministers, heads of ministerial-level agencies, heads of government agencies, chairpersons of provincial people's committees under the central government, and heads of central agencies of people's organizations approve foreign PCP aid within their respective authorities as stipulated in Article 6 of this Regulation (For PCP aid related to ministries, sectors, or localities, it is necessary to obtain their opinions before approval). They are responsible for the approval, allocation of counterpart funds, and management of such aid. Approval decisions (with attached documents and files) shall be sent to the Ministry of Planning and Investment and the Ministry of Finance within 15 days after approval.

6. Responsible for directing, guiding, urging, inspecting, and supervising subordinate units in receiving, managing, and using PCP aid in accordance with current regulations, fulfilling commitments to donors. Timely identify and address any violations related to religion, security, ethnicity, management regulations, etc., during the implementation of PCP aid reception work, and handle them according to their authority or report to the relevant agencies mentioned in Articles 10 to 15 of this Regulation.

7. Compile periodic, final, and ad hoc reports (if any) and send them to the Ministry of Planning and Investment, the Ministry of Finance, and the General Statistics Office on the results of PCP aid implementation by their agency or locality.

8. Compile and report the results of receiving and distributing emergency aid as specified in Point c Clause 2 Article 6 of this Regulation to the Prime Minister and send them to the Ministry of Planning and Investment and the Ministry of Finance.

Chapter IV

IMPLEMENTATION OF NON-GOVERNMENT AID FUNDS

Article 17. Materials, goods, machinery, equipment, and transportation vehicles imported or purchased domestically from approved PCP aid sources are exempted from import duties, special consumption taxes, and VAT (if applicable) according to current tax laws.

Article 18.

1. Do not accept goods (including materials and equipment) listed in the prohibited import items catalog as prescribed by the Government.

2. For used goods, the receiving agency may only agree to accept if the donor provides confirmation from the competent authority of the donor country that the goods are still in good condition at 80% or more quality, and only notify the donor to ship the goods when permitted by the competent authority of Vietnam as stipulated in Article 6.

Article 19. Responsibilities of the unit directly receiving and implementing PCP aid:

1. Units assigned to prepare programs and projects are responsible for drafting program and project documents and submitting them to the competent authorities for approval before implementation.

2. Clarify the content, objectives, value, and beneficiaries of non-project aid, and submit them to the competent authorities for approval before acceptance and use.

3. Proceed with the procedures for accepting used goods as specified in Clause 2 Article 18 of this Regulation.

4. Collaborate with the donor and relevant agencies to carry out necessary preparatory and supporting work.

5. Implement aid as agreed and committed with the donor and in compliance with current government regulations on financial management, monetary affairs, construction, procurement, and bidding, and follow the guidance of superior agencies as stipulated in Clause 6 Article 16 of this Regulation.

6. Prepare periodic, final, and ad hoc (if any) reports on the situation of receiving, implementing, and financing PCP aid by their unit and submit them to the superior management agency for compilation and reporting to the relevant agencies as stipulated in Clause 2 Article 20 of this Regulation.

Article 20. Reporting on the implementation of PCP aid is conducted periodically every six months and annually, and upon completion:

1. Ministries, ministerial-level agencies, government agencies, provincial people's committees under the central government, and central agencies of people's organizations are responsible for compiling and reporting on the implementation and financial status of all PCP aid.

2. Not later than two weeks after the end of six months and one month after the end of each year of implementation, as well as three months after the completion of all PCP aid disbursements, reports must be submitted to the Ministry of Planning and Investment, the Ministry of Finance, and the General Statistics Office for monitoring and compiling a report to be submitted to the Prime Minister.

3. The contents of the reports shall be carried out in accordance with the guidelines set forth in Clause 6, Article 9 and Clause 8, Article 10 of this Regulation by the Ministry of Planning and Investment and the Ministry of Finance.

Article 21. Inspection and audit of the receipt and use of PCP aid:

1. Annual regular inspection and supervision shall be conducted by the Ministry of Planning and Investment in coordination with the Ministry of Finance.

2. Unscheduled inspections and audits shall be proposed and organized by relevant competent authorities according to specific requirements.

3. Ministers, Heads of ministerial-level agencies, Heads of central government agencies, Chairpersons of provincial people's committees under the direct jurisdiction of the Central Government, and Heads of central agencies of people's organizations shall be responsible for directing competent agencies to monitor and inspect the implementation of tasks by sectors, levels, and units receiving and using PCP aid as stipulated in this Regulation; conducting audits against acts that show signs of violating this Regulation.

Any organization or individual violating this Regulation shall be subject to legal sanctions.