CIRCULAR

Guidelines on financial management for the Civil Aviation Air Traffic Control Center of Vietnam.

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 Pursuant to Decree No. 242/HĐBT dated June 30, 1992 of the Council of Ministers (now the Government) regarding the establishment of the Civil Aviation Administration of Vietnam;

Pursuant to Decision No. 36/TTg dated February 6, 1993 of the Prime Minister regarding the issuance of the charter on organization and operation of the Civil Aviation Administration of Vietnam.

Pursuant to Decision No. 276/CT dated July 28, 1992 of the Chairman of the Council of Ministers (now the Prime Minister) regarding the unified management of various fees and charges;

Pursuant to Decision No. 746 QĐ/TCCB-LĐ dated April 20, 1993 of the Minister of Transport regarding the establishment of the Civil Aviation Air Traffic Control Center of Vietnam.

After consultation with the Minister of Transport, the Ministry of Finance provides guidelines on financial management for the Civil Aviation Air Traffic Control Center of Vietnam as follows:

I/ GENERAL PRINCIPLES.

- The Civil Aviation Air Traffic Control Center of Vietnam (referred to as the Air Traffic Control Center) is a state-owned economic entity directly under the Civil Aviation Administration of Vietnam (referred to as the Civil Aviation Administration), authorized by the Civil Aviation Administration to manage civil air traffic control, provide air traffic control and flight management services to domestic and international aviation transport units, and other related services.

- The Air Traffic Control Center is a revenue-generating entity, with its operational funds provided by the State budget. However, to ensure normal and continuous operations, the Center retains a portion of its revenues for expenditure according to approved budgets, with the remainder remitted to the State budget.

- Revenues remitted to the State budget from the Air Traffic Control Center shall be prioritized for investment in construction and development of the Air Traffic Control Center and the overall development of the Civil Aviation Industry of Vietnam through annual national plans.

II/ SPECIFIC PROVISIONS:

1/ Revenue Content of the Air Traffic Control Center:

The revenue content of the Air Traffic Control Center (including both foreign currency and Vietnamese dong) includes:

Revenue from directing foreign aircraft flying over Vietnamese airspace.

Revenue from air traffic control and flight management services for aircraft operated by domestic and international aviation transport units.

- Other revenue services (if applicable)

2. Fee levels:

- For revenue from directing foreign aircraft flying over Vietnamese airspace, the current rate is 250 USD per flight transit. If it is necessary to adjust the revenue rate to be appropriate, the Air Traffic Control Center will propose to the Civil Aviation Administration for decision after consultation with the Ministry of Finance and the Minister of Transport.

- For revenue from air traffic control and flight management services for aircraft operated by domestic and international aviation transport units and other revenue services, the Civil Aviation Administration will consider and decide based on the proposal of the Air Traffic Control Center.

3/ Expenditure Content of the Air Traffic Control Center:

The expenditure content of the Air Traffic Control Center (including both foreign currency and Vietnamese dong) includes: regular expenditures, non-regular expenditures, and basic construction investment expenditures.

a/ Regular expenditures include:

+ Salaries for staff.

+ Social insurance and trade union expenses.

+ Regular maintenance and repair of fixed assets.

+ Major repairs of fixed assets.

+ Fuel and power.

+ Flight calibration costs.

+ Rent for communication channels, telephones, Telex, Fax.

+ Establishment of two reward and welfare funds.

+ Other management costs.

b/ Non-Regular Expenditures

+ Purchase of small equipment.

+ Training of staff and application of specialized scientific and technical knowledge in air traffic management.

+ Emergency reserves...

c/ Basic construction investment expenditures.

To be allocated by the State budget according to the approved plan.

4/ Approval of the Budget for Revenue and Expenditure of the Air Traffic Control Center.

Annually, the Civil Aviation Air Traffic Control Center of Vietnam prepares a budget for revenue and expenditure (in both foreign currency and Vietnamese dong) according to the above contents and submits it to the Civil Aviation Administration. After obtaining the agreement of the Minister of Transport and the Ministry of Finance, the Civil Aviation Administration approves the regular and non-regular expenditure budgets of the Air Traffic Control Center and assigns it to implement them.

As for basic construction investment expenditures, the procedures for planning, approving expenditures, and funding implementation follow Decree No. 385/HĐBT dated November 7, 1990 of the Council of Ministers on basic construction management.

In cases where changes in tasks, state policies, and fluctuations in prices affect the approved financial revenue and expenditure budget, the Air Traffic Control Center must prepare an adjusted budget for approval.

5/ Management of Revenue and Expenditure and Remittance to the State Budget of the Air Traffic Control Center.

a/ Revenue Management

The Air Traffic Control Center is responsible for maintaining accounting records to fully track all sources of revenue generated.

Revenue receipts are issued by the Ministry of Finance (General Department of Taxation). In cases requiring special receipts (including those on computers), the Air Traffic Control Center must register with the General Department of Taxation to implement them.

b/ Expenditure Management:

The Air Traffic Control Center retains a portion of its revenue for regular and non-regular expenditures according to the approved budget.

To establish a basis for preparing expenditure budgets and managing expenditures strictly, the Air Traffic Control Center needs to develop expenditure standards for review by the Civil Aviation Administration.

In cases where there is a shortage of Vietnamese dong for expenditures, the Air Traffic Control Center may convert foreign currency into Vietnamese dong at banks authorized to deal in foreign exchange.

c/ Remittance to the State Budget

The Air Traffic Control Center is responsible for remitting the difference between its revenue and regular and non-regular expenditures to the State Budget through the National Treasury system at its location. Monthly, the Local Tax Authority is responsible for checking and urging the Air Traffic Control Center to timely remit the amount due to the State Budget based on the approved revenue-expenditure surplus plan at the beginning of the year.

At the end of the year, when the final settlement is approved, if the amount already remitted is less than the actual revenue-expenditure surplus approved, the Air Traffic Control Center is responsible for remitting the remaining amount to the State Budget. Conversely, the excess can be deducted from the amount to be remitted to the State Budget in the following year.

For revenues collected in foreign currency, whichever original currency is received shall be deposited into the centralized foreign currency fund of the State Budget in that original currency. When depositing into the State Budget, the Center will be calculated to convert into Vietnamese dong at the buying rate announced by the Vietnam Foreign Trade Budget to determine the amount of State Budget payment in Vietnamese dong.

All revenues of the Air Traffic Management Center deposited into the State Budget shall be centrally regulated at 100% for the Central State Budget, and when deposited, they shall be recorded under item 35 according to the chapter, type, clause, and category corresponding to the State Budget ledger.

6/ Accounting system and financial reporting.

The Air Traffic Management Center shall apply the accounting system for public institutions as stipulated in Decision No. 257-TC/CĐKT dated June 1, 1990 of the Ministry of Finance.

Quarterly and annually, the Air Traffic Management Center is responsible for preparing final accounts and submitting final account reports to the Civil Aviation Administration and the Ministry of Finance. Final account reports must fully reflect revenue, expenditure (including foreign currency revenue and expenditure), and State Budget payments.

Based on the final account report of the Air Traffic Management Center, the Civil Aviation Administration is responsible for reviewing and approving the final accounts for units with the participation of financial agencies according to current regulations.

7/ Rewards and Financial Penalties

The Air Traffic Management Center is allowed to establish two reward and welfare funds amounting to 2.5% of actual total revenue, with the maximum level of the reward fund not exceeding six months' salary. Based on the above deduction rate, the Center can temporarily deduct 70% monthly to establish the funds. At the end of the year, after the approved annual final accounts, the actual amounts to be deducted into the two funds will be determined and will be deducted from the amount payable to the State Budget.

If the Air Traffic Management Center violates financial management policies and regulations, it will be subject to penalties deducted from the common funds according to state regulations.

III/ IMPLEMENTATION PROVISIONS:

This Circular takes effect from July 1, 1993. During implementation, if there are any difficulties, units are requested to promptly report to the Ministry of Finance for research and resolution.

/ MINISTRY||| REGARDING THE APPLICATION OF DANGEROUS SUBSIDIES AND COMMISSIONS IN THE FORM OF GOODS FOR STATE TREASURY OFFICERS WORKING IN DANGEROUS ENVIRONMENTSAT THE MINISTRY OF FINANCE

Deputyof this Decree shall take effect from January 1, 2026.”Minister

(- Office of the President of the State (Signed)

Pham Van Trongm Văn Trọng