Decision No. 65/2008/QD-TTg On Supplying Public Postal Services

Pursuant to …;

On the provision of universal postal services

_______________

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the State Enterprise Law 2005;

Pursuant to the amended and supplemented Press Law 1999;

Pursuant to the Posts and Telecommunications Ordinance dated May 25, 2002;

Pursuant to Decree No. 157/2004/NĐ-CP dated August 18, 2004 of the Government detailing the implementation of certain provisions of the Posts and Telecommunications Ordinance regarding posts;

Pursuant to Decree No. 31/2005/NĐ-CP dated March 11, 2005 of the Government on production and supply of public goods and services;

Considering the proposal of the Minister of Information and Communications.

DECISION:

Article 1. List of universal postal services

Universal postal services include basic domestic and international mail service (with weight not exceeding 2 kg) and mandatory postal services.

1. Basic domestic and international mail service: basic mail service within the country and internationally (with weight not exceeding 2 kg).

2. Mandatory postal services include:

a) Postal services provided at the request of the State for the purpose of economic and social development and national defense and security;

b) Urgent postal services for disaster prevention and control, disease prevention and control;

c) Other mandatory postal services as decided by the Prime Minister.

Article 2. Distribution of press through public postal network

1. The distribution of newspapers such as People's Newspaper, People's Army Newspaper, newspapers published by Party Committees of provinces and centrally governed cities under the central government, and other types of press as decided by the Prime Minister, shall be public postal services guaranteed by the State for distribution through the public postal network as stipulated herein.

2. For press that does not fall under Clause 1 of this Article, when there is a need for distribution through the public postal network, press agencies shall enter into distribution contracts with Vietnam Post on a negotiated basis.

Article 3. Method of providing universal postal services

The State orders Vietnam Post to provide universal postal services as specified in Article 1 and distribute newspapers as specified in Clause 1 of Article 2 of this Decision (hereinafter referred to collectively as universal postal services).

Article 4. Technical standards for universal postal services

Universal postal services ordered by the State shall be provided in accordance with national technical standards for universal postal services issued by the Ministry of Information and Communications.

Article 5. Special financial mechanism to ensure the provision of universal postal services

1. The State allocates an annual subsidy to Vietnam Post to maintain the public postal network for the provision of universal postal services from the time Vietnam Post operates independently from telecommunications, but no later than the end of 2013; thereafter, Vietnam Post will self-fund the maintenance of the public postal network. The subsidy level is implemented according to the principle of gradually reducing direct state funding annually and is determined based on the following principles:

a) Allocate operating costs of the public postal network based on the relationship between labor costs and other costs. Among which, the salary cost of management positions and employees belonging to the public postal network over three years (2008, 2009, 2010) is determined based on ensuring stability compared to before the separation from telecommunications and being consistent with current regulations on salaries in state-owned enterprises;

b) Allocate the percentage of operating costs of the public postal network that Vietnam Post must cover from income generated from other business activities outside the provision of universal postal services. In 2008, the portion of operating costs of the public postal network covered by Vietnam Post is 40%; specific ratios in subsequent years are decided by the Ministry of Information and Communications after consulting the Ministry of Finance, following the principle of gradually increasing the self-funding of operating costs of the public postal network by Vietnam Post;

c) Allocate an annual increase in production volume for universal postal services ordered by the State. Specifically:

- The minimum annual increase in production volume of basic mail service compared to the previous year is 10%. The Ministry of Information and Communications decides the annual production plan for universal postal services;

- The production volume of newspaper distribution services as specified in Clause 1 of Article 2 of this Decision is determined by the Ministry of Information and Communications in line with actual conditions.

d) The profit margin for the provision of universal postal services is determined according to current regulations of the State.

Based on the provisions of this Article and the attached Appendix to the Decision, the Ministry of Information and Communications, in collaboration with the Ministry of Finance, determines the subsidy level for Vietnam Post each year in accordance with national technical standards for universal postal services.

During the implementation process, the Ministry of Information and Communications coordinates with relevant ministries and sectors to guide Vietnam Post to take necessary organizational and management measures to reduce subsidies quickly and to terminate direct state funding for maintaining the public postal network as soon as possible.

2. Sources of funds for subsidizing Vietnam Post to provide universal postal services:

a) From 2008 to 2010: The State allocates a portion of post-tax profits distributed according to state investment capital at Vietnam Posts and Telecommunications Group to subsidize Vietnam Post. If the subsidy amount for Vietnam Post during this period exceeds 20% of the post-tax profits distributed according to state investment capital at the Group (excluding profits distributed according to state investment capital at Vietnam Post Corporation), the Ministry of Information and Communications, in collaboration with the Ministry of Finance, reports to the Prime Minister for consideration and decision on additional funding sources;

b) From 2011 to 2013: The State subsidizes Vietnam Post from the state budget.

Article 6. Other State measures and mechanisms to ensure the provision of universal postal services

1. Adequate capital investment for Vietnam Post to establish a modern, efficient public postal network.

2. Gradually adjusting postal service rates for universal postal services to gradually offset the costs of providing these services, in line with market mechanisms, people's living standards, and the rates of similar services in neighboring countries.

3. Provide dedicated service provisions and dedicated service tariff rates for Vietnam Post to support the provision of public postal services.

4. Implement preferential policies on investment, tax, and land use for activities related to the provision of public postal services in accordance with the law.

5. Specify accounting procedures, reporting; supervise and inspect the situation of providing public postal services in accordance with the law.

Article 7. Implementation

Ministries, ministerial-level agencies, government agencies, People's Committees of provinces and centrally governed cities shall manage the provision of public postal services in accordance with the law. Some agencies are assigned to perform specific tasks as follows:

The Ministry of Information and Communications shall be responsible before the Government for state management of basic information, including the following responsibilities:

The Ministry of Information and Communications, as the agency responsible for state management of public services in the postal sector, shall be in charge of implementing the following contents:

a) Issuing national technical standards for public postal services and forms of publication of technical standards for public postal services;

b) Organizing the development and approval of plans for the provision of public postal services in accordance with the law; placing orders for Vietnam Post to implement annual plans;

c) Determining and deciding the annual subsidy level for Vietnam Post regarding the provision of public postal services ordered by the State after obtaining the agreement of the Ministry of Finance;

d) Accepting the results of annual contracted service provision for public postal services;

đ) Specifying the scope of dedicated services for Vietnam Post during each period;

e) Specifying the tariff rates for public postal services and dedicated services for Vietnam Post in accordance with the law;

g) Specifying reporting procedures; supervising, inspecting the situation of providing public postal services and compiling reports annually to the Prime Minister;

h) Submitting to the Prime Minister for consideration and amendment of this Decision to align with changes in state mechanisms and policies, market fluctuations, and the operation of the public postal network after obtaining opinions from relevant ministries and sectors;

i) Directing the implementation of this Decision within its authority.

2. Ministry of Planning and Investment

a) Cooperating with the Ministry of Information and Communications in issuing reporting procedures for the provision of public postal services and supervising, inspecting, and evaluating the provision of these services;

b) Leading and cooperating with the Ministry of Information and Communications to develop mechanisms and preferential policies for investment in gradually modernizing and effectively operating the public postal network;

c) Compiling the situation of providing public postal services into the national socio-economic development plan in accordance with the law;

3. Ministry of Finance

a) Leading and cooperating with the Ministry of Information and Communications to guide financial management mechanisms to ensure the provision of public postal services and the distribution of post-tax profits from Vietnam Post Group to subsidize Vietnam Post in accordance with this Decision;

b) Guiding accounting procedures for the provision of public postal services in accordance with this Decision and other business activities of Vietnam Post;

c) Guiding the implementation of preferential tax policies for the provision of public postal services in accordance with the law;

đ) Cooperating with the Ministry of Information and Communications to determine the annual subsidy levels for the provision of public postal services;

đ) Cooperating with the Ministry of Information and Communications in supervising and inspecting the provision of public postal services; in determining the tariff rates for public postal services and dedicated services for Vietnam Post in accordance with the law;

4. Ministry of Labor, Invalids, and Social Affairs

Leading and cooperating with relevant ministries to guide and inspect the determination of unit labor costs for Vietnam Post in accordance with this Decision and related laws;

5. Provincial People's Committees under the Central Government

a) Resolving within its authority proposals from Vietnam Post during the establishment of transaction bases, exploitation processes, and the operation of the public postal network at the local level in accordance with the law;

b) Supervising and inspecting the provision of public postal services at the local level in accordance with the law.

Article 8. Responsibilities of the Vietnam Posts and Telecommunications Group and Vietnam Post

1. Vietnam Posts and Telecommunications Group

a) Based on orders for the provision of public postal services issued by the Ministry of Information and Communications to Vietnam Post and guidance from the Ministry of Finance, temporarily advance, settle, and account for annual subsidy funds for Vietnam Post;

b) Deciding the level of profit mobilization after tax distributed according to state investment capital in member units within the Group to subsidize Vietnam Post, ensuring sufficient annual state-subsidized levels for Vietnam Post.

2. Vietnam Post

a) Based on guidance from the Ministry of Information and Communications and the Ministry of Finance, propose plans and subsidy levels for the provision of public postal services and the issuance of various types of press through the public postal network ordered annually by the State;

b) Based on orders from the Ministry of Information and Communications, organize the provision of public postal services in accordance with national technical standards and state-determined tariff rates;

c) Based on the scale of the public postal network detailed in the Appendix of this Decision, organize and manage the network effectively;

d) Develop and propose pricing schemes for public postal services and dedicated services for Vietnam Post to report to the Ministry of Information and Communications;

đ) Be responsible for managing and using state-subsidized funds for their intended purposes and efficiently; be subject to supervision and inspection by the Ministry of Information and Communications and competent authorities regarding compliance with national technical standards and state-determined tariff rates for services ordered by the State, and the use of state-subsidized funds in accordance with the law.

e) Comply fully with the accounting system and report on the provision of universal postal services; provide all financial information and other relevant information to serve the management of the provision of universal postal services in accordance with the regulations of the Ministry of Information and Communications, the Ministry of Finance, and other competent state agencies;

g) Recommend to the competent state agency to amend and supplement mechanisms and policies on the provision of universal postal services to enhance the effectiveness of such policies and business performance of enterprises;

Article 9. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

Article 10. The Minister of Information and Communications, the Minister of Finance, the Minister of Planning and Investment, the Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally governed cities, Chairpersons of the Board of Directors of Vietnam Post and Telecommunications Group, General Directors of Vietnam Post Joint Stock Corporation, and Heads of related units are responsible for implementing this Decision./.