Decree No. 80/2020/NĐ-CP on the management and use of non-refundable aid not included in official development assistance from foreign agencies, organizations, and individuals for Vietnam.

DECREE

Management and utilization of non-refundable aid not included in official development assistance provided by foreign agencies, organizations, and individuals for VietnamNon-refundable aid not included in official development assistance provided by foreign agencies, organizations, and individuals for Vietnam organizations and individuals abroad for Vietnam

^{______________}

||| Pursuant to the Law on Organization of the Government dated June 19, 2015;

Based on the Law on Enactment of Legislative Acts dated June 22, 2015;

At the proposal of the Minister of Planning and Investment;

The Government promulgates this Decree on the management and utilization of non-refundable aid not included in official development assistance provided by foreign agencies, organizations, and individuals for Vietnam.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Decree stipulates the management and utilization of non-refundable aid not included in official development assistance provided by foreign agencies, organizations, and individuals to legitimate Vietnamese agencies and organizations for the purpose of economic and social development, humanitarian support, and not for profit or commercial purposes.

2. Cases not within the scope of regulation of this Decree:

a) Non-refundable aid from foreign agencies and organizations that must be officially signed according to the Law on International Treaties and non-refundable aid in agreements on ODA funds which must be signed on behalf of the State or the Government of the Socialist Republic of Vietnam;

b) Gifts and donations to agencies and organizations not for humanitarian support or charitable purposes;

c) Sponsorships under cooperation agreements, service contracts, technology transfer contracts generating profits to be shared;

d) Individuals receiving sponsorship for scientific research activities carried out according to the Science and Technology Law No. 29/2013/QH13;

đ) Emergency international aid from governments, international organizations, non-governmental organizations, and foreign individuals for disaster relief approved and implemented within three months from the date of occurrence of natural disasters and emergency international aid to mitigate the consequences of natural disasters approved and implemented within nine months from the date of occurrence of natural disasters.

Article 2. Applicability

1. This Decree applies to agencies, organizations, and individuals participating in or related to the management and utilization of non-refundable aid not included in official development assistance (hereinafter referred to as aid) within the scope of regulation specified in Article 1 of this Decree.

2. The provider of aid under this Decree is foreign organizations and individuals with good intentions, respecting and complying with Vietnamese laws, including:

a) Foreign non-governmental organizations, non-profit organizations, social funds, private funds established under foreign laws;

b) Foreign individuals, including overseas Vietnamese;

c) Businesses and companies established under foreign laws, excluding economic organizations with foreign capital operating in Vietnam according to the Investment Law;

d) Research and training organizations established under foreign laws (including research institutes and government-affiliated cooperative organizations);

đ) Ministries, agencies, and organizations under foreign governments, diplomatic missions of countries in Vietnam directly providing aid, or authorizing foreign legal entities to manage aid where receipt and implementation of the aid does not require formal signing according to the Law on International Treaties or does not require Vietnam to sign on behalf of the State or the Government of the Socialist Republic of Vietnam.

3. The recipient of aid under this Decree is Vietnamese agencies and organizations established under Vietnamese laws, having functions, tasks, and activities consistent with the objectives and content of the received aid:

a) State agencies, public service units fully or partially funded by the state budget for their operational expenses;

b) Political-social organizations, political-social-professional organizations, social organizations, social-professional organizations, science and technology organizations, and social funds, charitable funds established legally according to Vietnamese laws on associations, science and technology organizations, social funds, and charitable funds;

c) Social enterprises receiving aid to implement the goal of addressing social and environmental issues.

d) Other subjects as decided by the Prime Minister.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. "Program/project management board" (hereinafter referred to as "project management board") is an organization established to assist the aid provider, project owner in managing and implementing one or more programs/projects.

2. Forms of aid include: program, project, non-project, wherein:

a) "Program" is a set of activities related to one or more sectors, fields, multiple regions, different subjects aimed at achieving one or more specific goals, implemented over one or more phases.

b) "Project" is a set of interrelated activities aimed at achieving one or more goals, implemented in a specific area, within a defined timeframe, based on defined resources.

c) "Non-project" is one-time, individual aid in the form of money, goods, materials, experts (including volunteer experts), providing inputs for organizing conferences, seminars, training, research, surveys, and training.

3. "Head agency" includes:

a) Central agencies of political organizations and their affiliated agencies; Supreme People's Procuracy; Supreme People's Court; agencies under the National Assembly; State Audit Agency; Office of the President; ministries, ministerial-level agencies, agencies under the Government; central agencies of the Vietnam Fatherland Front and political-social organizations; Provincial People's Committees (hereinafter referred to as provincial-level People's Committees);

b) In cases of humanitarian aid without a specific address, the central agency of the Vietnam Fatherland Front is the head agency;

c) Ministries, ministerial-level agencies, agencies under the Government, provincial-level People's Committees issue decisions to establish political-social organizations, political-social-professional organizations, social organizations, social-professional organizations, science and technology organizations, social funds, charitable funds according to Vietnamese laws on associations, social funds, charitable funds, and science and technology organizations.

d) The central agency of associations or Confederations established by the Prime Minister's Decision;

đ) In the case where the recipient of the aid grant is a social enterprise, the People's Committee of the province where the enterprise is registered for business shall be the supervisory authority.

4. "Aid Grant Administrator" means the entity entrusted with the responsibility to manage and implement the aid grant that has been approved by the competent authority. The Aid Grant Administrator is referred to as the "Project Leader" when the aid grant is implemented through a program or project approach.

5. "Aid Grant" within the scope of this Decree refers to financial support or goods and services that do not need to be repaid, which the Aid Provider offers to the Aid Recipient to achieve economic and social development and humanitarian goals, without commercial or profit-making purposes.

6. "Program or Project Documentation" means the formal document reflecting the commitment between the Aid Provider and the Aid Recipient regarding a specific program or project, clearly defining: objectives, activities, expected results, resources to be utilized, timeframes and implementation plans, organizational management of the program or project, obligations and rights of the parties involved.

7. "Recovery Assistance" includes:

a) Emergency relief grants, assistance grants aimed at mitigating the consequences of emergencies (excluding international aid grants mentioned in point đ, Clause 2, Article 1 of this Decree);

b) Relief grants provided three months after the occurrence of natural disasters, disaster recovery assistance implemented nine months after the occurrence of natural disasters.

8. "State budget revenue-based aid grants" refer to aid grants if the recipient is state agencies or organizations:

a) Party agencies, National Assembly, Supreme People's Court, Supreme People's Procuracy; ministries, ministerial-level agencies, government-affiliated agencies and affiliated legal entities; People's Committees at all levels and affiliated legal entities;

b) Vietnam Fatherland Front, Vietnam General Confederation of Labor, Ho Chi Minh Communist Youth Union, Vietnam Farmers' Association, Vietnam Veterans' Association, Vietnam Women's Union;

c) State-owned enterprises holding 100% of charter capital and other objects under the management of income and expenditure as prescribed by laws on state budget;

d) Other recipients as decided by the Prime Minister.

9. "Counterpart Funding" is the contribution of Vietnam's side (in kind or cash) to receive and implement the aid grant. Counterpart funding can be allocated from the central budget, local budget, self-arranged by the aid grant administrator, contributions from beneficiaries, and other lawful sources. Counterpart funding is used for the preparation and implementation processes of aid grants according to the specific requirements of programs and projects.

Article 4. Principles in managing and using aid grants

1. Managing and using aid grants must comply with Vietnamese law. Aid grants may only be received, implemented, and used after being approved by the competent authority of Vietnam. The aid grant funds must be legitimate money and assets.

2. Goods (including materials and equipment) listed in the prohibited import items under the law shall not be accepted.

3. The supervisory authority is responsible for comprehensive management and effective use of the aid grant.

4. The inflow and outflow of funds for the aid grant must be conducted through the aid grant account, ensuring transparency and full reporting as stipulated in Chapters III, IV, and V of this Decree.

5. State budget revenue-based aid grants must be fully budgeted, accounted for, and settled in the state budget.

6. For aid grants not sourced from state budget revenues, the Aid Grant Administrator is permitted to manage independently and is responsible for the purpose of aid usage, the outcome of aid usage, ensuring compliance with Vietnamese law and commitments to sponsors. The Aid Grant Administrator periodically reports to the supervisory authority for consolidation and reports to the Ministry of Planning and Investment for overall consolidation.

7. Six months after the approval of the aid grant, if the aid grant has not been initiated without valid reasons, the approving authority may revoke the decision to approve the receipt of the aid grant. The supervisory authority is responsible for notifying the Aid Provider about the revocation of the approval decision for the aid grant.

Article 5. Prohibited acts in the use of aid

1. Using aid to serve money laundering purposes, financing terrorism, tax evasion, harming national security and public order, undermining the unity of the entire people; violating social morals, customs, and the cultural identity of the nation.

2. Using aid to seek profit distribution, personal gain, not for humanitarian purposes, economic and social development, and community benefits.

3. Acts of corruption, causing loss and waste in the management and use of aid.

Article 6. Prepared capital for aid grants

1. For aid grants managed by units whose operating costs are guaranteed by the state budget or part thereof, the managing agency shall prepare a capital plan to be included in the annual consolidated budget plan in accordance with the State Budget Law.

2. For aid grants not from the state budget revenue (central and local), the grant recipient shall balance and allocate the prepared capital for the aid grant.

3. In cases where the aid provider provides financial support to prepare programs and projects, the grant recipient shall include the prepared capital in the total capital of the aid grant.

Chapter II
REVIEW AND APPROVAL OF AID GRANTS

Article 7. Approval authority

1. The Prime Minister approves:

a) Aid grants related to national defense and security, religion, and those directly supporting the drafting of legal regulations;

b) Imported goods within the approval authority of the Prime Minister according to relevant laws;

c) Other cases not specified in Clauses 2, 3, and 4 of this Article.

2. The head of the managing agency shall approve:

a) Aid grants not specified in Clause 1 of this Article and direct aid grants to rectify consequences provided to a ministry, sector, or locality without depending on the scale of the aid grant;

b) Aid grants where the recipient organizations are established or their charters approved by the managing agency, in line with the functions and tasks of the aid recipient organization, except for organizations established by the Ministry of Home Affairs.

3. The Minister of Home Affairs shall approve aid grants for associations and charitable funds established and approved by the Ministry of Home Affairs.

4. The Chairman of the Vietnam Fatherland Front Central Committee shall approve non-specific humanitarian aid grants (the aid provider does not designate aid for a specific locality).

5. The heads of associations or federations established by the Prime Minister's Decision shall approve aid grants for agencies under their management as stipulated by law.

Article 8. Documentation for aid grants

Documentation for aid grants shall be prepared in six sets, with foreign language documents accompanied by certified Vietnamese translations.

1. Documentation for programs and projects includes the following documents:

a) Request for approval of the program or project;

b) Agreement on providing aid from the aid provider;

c) Program or project documentation;

d) Legal entity certification documents (not applicable if the aid provider is diplomatic missions or government agencies of foreign countries);

For foreign non-governmental organizations registered in Vietnam: Copies of registration certificates issued by competent Vietnamese authorities;

For individual aid providers: Certified copies of valid passports;

For other aid providers: Certified copies of valid documents proving the legal status of the organization.

2. Documentation for non-project aid includes the following documents:

a) Request for approval of non-project aid;

b) Agreement on providing aid from the aid provider;

c) Non-project aid documentation jointly developed by the aid recipient and the aid provider, including main contents such as purpose, content, list of goods (for goods-based aid), expected results of the aid grant; implementation period; value of the non-project aid grant; organizational methods and coordination mechanisms during implementation; obligation to report results after receiving and using the aid;

d) Legal entity certification documents (not applicable if the aid provider is diplomatic missions or government agencies of foreign countries);

For foreign non-governmental organizations registered in Vietnam: Copies of registration certificates issued by competent Vietnamese authorities;

For individual aid providers: Certified copies of valid passports;

For other aid providers: Certified copies of valid documents proving the legal status of the organization.

đ) For non-project aid implemented through expert provision, the documentation includes: documents mentioned in points a, b, c, and d of this clause; a brief expert resume with a commitment to the accuracy of the information provided; work program; labor permit and legal documents regarding the expert's professional activities as prescribed by relevant laws;

3. Documentation for non-project aid grants that are used goods, equipment, or vehicles, subject to approval by the Prime Minister:

a) In addition to the requirements stated in Clause 2 of this Article, there must also be a quality inspection certificate issued by a legitimate and competent organization recognized by Vietnam or the country of origin. The inspection certificate must state that the goods, equipment, or transportation means meet the requirements of Vietnamese standards or equivalent standards accepted by Vietnam;

b) For non-project aid grants involving used transportation means, additional documents are required: certified Vietnamese translations of the registration form or ownership certificate of the aid provider; certified Vietnamese translations of the inspection certificate issued by the authorized authority of the aid provider's country. If there are temporarily imported and re-exported items, then the inspection certificate of the authorized Vietnamese authority is required.

4. Program and project documentation and non-project aid documentation shall be prepared according to the templates specified in Appendices I, II, and III attached to this Decree.

5. For projects involving official development assistance with public investment content, construction investments must be carried out in accordance with the provisions of the laws on public investment management and construction of public works.

6. The agency receiving the application files:

a) Ministry of Planning and Investment: For grants within the approval authority of the Prime Minister.

b) The managing agency: For grants not within the approval authority of the Prime Minister.

Article 9. Leading Agency for Appraisal

1. Program, project, and non-project documents must be appraised to serve as the basis for approval, signing, and implementation.

2. For grants within the approval authority of the Prime Minister as stipulated in Clause 1, Article 7 of this Decree, the Ministry of Planning and Investment shall be the leading agency for appraisal.

3. For grants within the approval authority of the head of the managing agency as specified in Clauses 2, 3, 4, and 5 of Article 7 of this Decree at the central level, the managing agency shall assign a relevant specialized unit to lead the organization of the appraisal; at the local level, the Department of Planning and Investment shall be the leading agency for appraisal.

4. Depending on the scale, nature, and content of the project, the leading agency for appraisal may invite specialized agencies at the central and local levels, consulting organizations, and independent consultants to support the appraisal of programs and projects.

5. Agencies, organizations, and individuals participating in the appraisal bear legal responsibility for the content of the appraisal related to their scope of management responsibility.

Article 10. Procedures and processes for appraisal and approval of program, project, and non-project grant documents

1. Evaluation of the validity of the appraisal file based on the provisions of Article 8 of this Decree.

2. Solicit written opinions from relevant agencies:

a) For grants as stipulated in Clause 1 of Article 7 of this Decree, the Ministry of Planning and Investment sends the complete application file to solicit comments for appraisal to the Ministry of Finance, the Ministry of Public Security, the Ministry of Foreign Affairs, and the Vietnam Association of Friendship Organizations (in cases where the grant provider is a foreign non-governmental organization) and other relevant agencies.

b) For grants as stipulated in Clauses 2, 3, 4, and 5 of Article 7 of this Decree implemented at the central level, the managing agency sends the complete application file to solicit comments to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Public Security, the Ministry of Foreign Affairs, and the Vietnam Association of Friendship Organizations (in cases where the grant provider is a foreign non-governmental organization) and other relevant agencies.

c) For grants within the approval authority as stipulated in Clauses 2, 3, and 4 of Article 7 of this Decree implemented at the local level, the Department of Planning and Investment sends the complete application file to the Department of Finance, Provincial Police, and other relevant provincial departments to seek opinions. In cases where the content of the grant exceeds the management authority of the locality, the Department of Planning and Investment reports to the Provincial People's Committee to seek opinions from relevant ministries and sectors.

3. Appraisal of Grants

Depending on the scale, nature, and content of the grant, the leading agency for appraisal organizes the appraisal through a comprehensive review of opinions or by organizing an appraisal meeting. The concluding opinion of the leading agency for appraisal serves as the basis for the competent authority to consider and decide on the approval to accept the grant.

In cases where the grant does not meet the conditions for acceptance, the managing agency informs the grant provider about the decision not to accept the grant.

4. For relief assistance, when approving program and non-program documents, the head of the managing agency is not required to seek the appraisal opinions of relevant agencies.

5. Content of Appraisal

a) The appropriateness of the objectives of the program, project, and purpose of accepting non-project grants with the specific development goals of the ministry, sector, locality, implementing and benefiting units of the program, and project;

b) Legal status of the grant providers and recipients and the legality of the relevant organizations and individuals according to Vietnamese law; the consistency between the purpose of the grant and the functions, tasks, and authority of the recipient;

c) The capacity of the grant recipient to accept and organize the implementation of the grant; the contribution capacity of the Vietnamese side;

d) Contents regarding domestic financial mechanisms for grants from state budget revenues; the rationality in the budget structure of the program and project allocated to the main components of the program and project;

đ) Commitments, preconditions, and other conditions of the parties involved;

e) Economic and social effectiveness, impact on national security and social order, applicability of the results of the program and project to practical situations, and sustainability of the program and project after completion; effectiveness of the use of non-project grants.

6. The appraisal period shall not exceed twenty days from the date of receipt of a complete valid file.

Article 11. Approval Decision

1. The approval decision shall include the following main contents:

a) Name of the program, project, or non-project;

b) Name of the managing agency, grant recipient agency; Grant provider, co-provider of foreign grants;

c) Objectives and main results of the grant; for non-project grants in the form of goods and materials, accompanied by a list of goods and materials.

d) Time and location of implementation;

đ) Total capital of the program, project, or non-project grant (non-repayable grant funds, counterpart funds); non-repayable grant funds managed and implemented by the recipient agency, non-repayable grant funds managed and implemented by the funding agency;

e) Financial mechanism applicable to the grant: from state budget revenue; not from state budget revenue.

g) Management and implementation methods.

2. Within five days from the date the competent authority issues the approval decision on the grant, the managing agency shall notify the grant provider about the approval decision on the grant, and simultaneously send the managing agency's approval decision to the Ministry of Planning and Investment, the Ministry of Finance, and relevant agencies for supervision and coordination in implementation.

Chapter III
MANAGEMENT OF GRANTS

Article 12. Organization of Program and Project Management

Based on the scale, nature, specific conditions for implementing the program, project, and organizational management capacity, the managing agency decides to apply one of the following forms of program and project management organization:

1. Utilizing a specialized unit under direct jurisdiction that has the necessary conditions and capacity to manage and implement projects with a scale below US$200,000 (two hundred thousand US dollars).

2. Using an existing management board to manage new programs and projects.

3. Establishing a separate management board for each program and project.

Article 13. Tasks and Authorities of the Managing Agency

1. Mobilizing grants based on needs, economic and social development orientation, and capacity to accept grants.

2. Approving grants within its authority.

3. Deciding on the organizational structure for managing and implementing programs and projects.

4. Approving the implementation plan for programs and projects; preparing annual financial plans and budget estimates based on proposals from the grant recipient agency, in accordance with relevant laws.

5. Directing bidding activities in accordance with current laws. In cases where grants do not come from state budget revenues, the implementation of bidding activities shall be carried out according to agreements with the grant provider.

6. Being responsible for financial management, reporting comprehensively on received funds and assets, and the use of grants. Approving annual settlement and final settlement upon completion of the project.

7. Periodically compiling and reporting financial statements on approved grants.

8. Inspecting and supervising the implementation of projects and compliance with current regulations on project management.

9. Implementing regular annual reporting on disbursement and use of grants; submitting annual consolidated reports on grant mobilization results, implementation status, supervision, and evaluation of grants under its management to the Ministry of Planning and Investment, the Ministry of Finance, and related agencies no later than January 15 of the following year; submitting final grant reports to the Ministry of Planning and Investment and the Ministry of Finance within six months after the end of the grant.

10. Being responsible for losses, waste, corruption, and other violations in the management and use of grants under its management.

Article 14. Tasks and Authorities of the Aid Account Holder

1. The aid account holder must be determined in the decision approving the acceptance of aid.

2. The aid account holder shall be responsible for:

a) Organizing the management structure and implementing the program/project based on the decision of the supervising authority. Managing and using the aid funds and counterpart capital of the program/project effectively. In cases where a Project Management Board is not established, the aid account holder must open an account to receive and disburse the aid at the State Treasury or commercial bank established and operating under Vietnamese law. Conducting all activities related to revenue and expenditure for the aid through the aforementioned account based on the approved financial plan;

b) Building annual activity plans and financial plans to submit to the competent authority for approval; preparing annual budget revenue and expenditure forecasts for aid sourced from state budget revenues to submit to the competent authority for approval;

c) Implementing bidding procedures in accordance with current laws on bidding;

d) Supervising the implementation of contracts and resolving arising issues within their authority;

e) Monitoring and evaluating the program/project.

3. Shall be responsible for accounting, settlement, and reporting all sources of capital received and utilized.

4. Reporting on the receipt of aid, implementation, and disbursement of the aid every six months and annually to the supervising authority. The final report on the aid must be submitted to the supervising authority no later than six months after completion.

5. Shall be responsible for losses, waste, corruption, and violations within their authority in organizing and managing the implementation of programs/projects/non-project activities causing economic, social, environmental damage, affecting the overall objectives and effectiveness of the program/project;

6. Other tasks and authorities as prescribed by law.

Article 15. Tasks and Authorities of the Project Management Board

1. Representing the project owner, being accountable to the project owner, supervising authority, and the law for their decisions.

2. The Project Management Board must open an account at the State Treasury system or commercial bank established and operating under Vietnamese law. Conducting all activities related to revenue and expenditure for the aid through the aforementioned account based on the approved financial plan.

3. The Project Management Board shall perform tasks within the scope of the project, including:

a) Preparing comprehensive and annual implementation plans, and financial plans of the project to submit to the head of the supervising authority for approval;

b) Negotiating and signing contracts;

c) Implementing bidding activities and managing contracts within the assigned scope;

d) Managing finances, assets, and performing disbursement, accounting, and settlement procedures according to the financial management regulations stipulated in this Decree and consistent with the provisions of the Aid Provider.

4. Developing detailed monitoring and evaluation plans for the implementation of the program/project.

5. Regularly reporting every six months and annually on the implementation of the program/project and financial management to the project owner and supervising authority.

6. Finalizing, handing over, and settling the program/project. Within six months after the completion of the program/project, the Project Management Board must complete the final report on the program/project and submit it to the Project Owner.

7. Other tasks assigned.

Article 16. Adjustment, amendment, and supplementation of programs and projects during implementation

1. For programs and projects decided by the Prime Minister of the Government:

The managing agency shall proceed with the procedures to submit to the Prime Minister of the Government when there are adjustments, amendments, and supplements leading to changes in the contents of the approval decision on grant aid.

2. For programs and projects within the approval authority of the managing agency:

a) Adjustments, amendments, and supplements that make the program or project become one of the cases prescribed in Clause 1 of Article 7 of this Decree must be submitted for consideration and approval by the Prime Minister of the Government;

b) Adjustments, amendments, and supplements not falling under the provisions of point a of this clause shall be handled by the agency issuing the approval decision on grant aid.

3. The procedures and formalities shall be carried out in accordance with the provisions of Articles 8, 10, and 11 of this Decree.

Article 17. Sale of goods under grant aid

Goods under grant aid that are agreed by the recipient and the provider of grant aid to be brought into Vietnam for sale must be approved simultaneously with the approval of the grant aid by the competent authority prescribed in Article 7 of this Decree, based on the written agreement of the Ministry of Finance. Used goods permitted to be imported into Vietnam are not commercial goods and may not be auctioned. New goods at 100% and still within their shelf life must be auctioned according to current regulations on asset auctions.

Article 18. Handover of assistance implementation results

After completion, the project owner shall organize acceptance, evaluation, and take necessary measures to exploit and hand over the achieved results to the project beneficiaries and report the final project report to the managing agency, the Ministry of Planning and Investment, and the Ministry of Finance.

Article 19. Dispute Resolution

In case disputes arise related to contracts during the implementation of programs and projects, the parties involved have the responsibility to negotiate and resolve them. If no agreement can be reached between the parties, dispute resolution shall be conducted through mediation, arbitration, or court proceedings in accordance with the laws and the contract signed by both parties.

Chapter IV
FINANCIAL MANAGEMENT OF GRANT AID

Article 20. Principles of Financial Management for Grant Aid Funds

1. The principles of financial management for grant aid funds from state budget revenue only apply to grant aid managed and implemented by the project owner.

2. For grant aid directly managed and implemented by the grant aid provider: The managing agency is responsible for managing the documentation of the approved program and project; performing its functions and tasks as stipulated; complying with accounting, tax regulations, and other relevant laws. In the event that the grant aid provider transfers ownership of assets and equipment of the program and project to the project owner, the project owner shall establish asset ownership according to current regulations.

3. Grant aid from state budget revenue shall be budgeted, controlled, recorded, and settled according to the State Budget Law and financial management regulations set forth in this Decree. Newly generated items not included in the original budget shall be allocated and assigned plans by the competent authority, and the project owner shall prepare supplementary budgets in accordance with the law on state management and relevant laws.

4. For grant aid funds not from state budget revenue, the recipient manages and uses them according to the documentation of the program, project, or non-project approved by the competent authority; the organizational charter and activities of the recipient; and complies with accounting, tax regulations, and other relevant laws.

5. For grant aid from state budget revenue for enterprises where the State holds 100% capital, depending on the nature of the grant aid, it will either increase the state capital at the enterprise or be recorded as other income of the enterprise.

Article 21. Opening accounts for programs and projects using aid funds

1. Counterpart capital account:

a) Counterpart capital account using state budget funds: The project owner shall open an account at the State Treasury system where transactions take place to implement control and payment activities related to the counterpart capital of the project;

b) Counterpart capital account outside state budget funds: The project owner shall open an account at the State Treasury system where transactions take place or at a commercial bank established and operating under Vietnamese law.

2. Aid capital account: The project owner shall open an account to receive aid funds at the State Treasury system where transactions take place or at a commercial bank established and operating under Vietnamese law.

a) The procedures and formalities for opening an account at the State Treasury and the management and use of the account shall be carried out in accordance with current regulations;

b) The State Treasury organizes the control and payment for the project from aid funds sourced from state budget revenues;

c) The procedures and formalities for opening an account at a commercial bank established and operating under Vietnamese law shall be carried out in accordance with relevant laws.

Article 22. Establishing financial plans for non-repayable aid funds from state budget revenues

1. Based on the decision approving the Project Documentation, non-project documentation, or investment decision for programs and projects, the project owner shall establish a three-year plan for aid fund revenue and expenditure and an annual budget estimate for aid fund revenue and expenditure in accordance with the State Budget Law and related laws, and submit it to the supervising agency for consolidation.

2. The preparation of the annual budget estimate for aid fund revenue and expenditure from state budget revenues shall be detailed according to each donor, each program, project, or non-project.

3. Establishing, consolidating, submitting, approving, allocating, and adjusting supplementary aid fund plans:

a) For aid funds used for public investment expenditures, they shall be implemented in accordance with the laws on public investment;

b) For aid funds used for regular expenditures, they shall be implemented in accordance with the laws on state budgets.

4. On the basis of the annual funding limit allocated by the competent authority, the supervising agency shall detail the allocation for each program, project, or non-project and notify the Ministry of Finance and the Ministry of Planning and Investment about the detailed allocation plan.

5. The supervising agency shall direct and organize the implementation of the budget estimates and report on the execution of the aid fund revenue and expenditure plan in accordance with current regulations.

Article 23. Controlling expenditures, disbursing, accounting, and recording income and expenditure of non-repayable aid funds in cash

1. The project owner shall carry out expenditure control at the State Treasury in accordance with the regulations on state budget management for aid funds from state budget revenues. The procedures and formalities for controlling expenditures, accounting, and recording income and expenditure shall be carried out in accordance with the legal provisions on administrative procedures within the domain of the State Treasury.

2. The initial expenditure control file sent to the State Treasury includes:

a) The decision on the allocation of the budget estimate or additional allocation of the budget estimate by the competent authority;

b) A certified copy of the document regarding the commitment and receipt of aid funds;

c) A certified copy of the Decision approving the program, project, or investment program documentation and approved project documentation;

d) Purchase contracts for goods and services related (if any). In cases where the contract is signed in a foreign language, a Vietnamese translation with the signature and stamp of the project owner must be attached. The project owner is responsible under the law for the accuracy and correctness of the Vietnamese translation content;

đ) A request for confirmation of eligible expenses for public services or a request for investment capital payment by the project owner in accordance with the Government's regulations on administrative procedures within the domain of the State Treasury.

3. The payment file sent to the State Treasury for each transaction shall be carried out in accordance with the regulations for state budget fund expenditures.

4. Disbursing non-repayable aid funds from state budget revenues in cash for programs and projects: Based on the results of expenditure control, based on the requirements of the project owner, the State Treasury or commercial bank shall disburse funds for the project in accordance with the regulations; monthly, it shall report the amount of non-repayable aid fund disbursement for each account holder according to each program and project to the Ministry of Finance.

5. Accounting and recording income and expenditure for projects using non-repayable aid funds from state budget revenues:

a) Monthly or according to each occurrence, based on the results of expenditure control, the State Treasury simultaneously records income and expenditure in accordance with the regulations. In cases where the project owner opens an aid fund account at a commercial bank, in addition to the above documents, the project owner shall attach a statement of account from the commercial bank showing the payment vouchers from the aid fund account;

b) The State Treasury shall record into the state budget according to the content of aid expenditures in the state budget ledger as prescribed. Advance payments made according to the regulations shall be recorded as advance payments. Recovered advance payments shall be recorded as reductions in advance payments. Payments for completed work volumes shall be recorded as actual expenditures and annual settlement shall be carried out;

c) The time for accounting shall be in accordance with the current regulations for state budget funds.

6. Temporary advance payments and expenditure control from non-repayable aid funds from state budget revenues in cash shall be carried out in accordance with the current regulations for state budget funds.

7. Interest generated from aid fund deposits on deposit accounts must be separately accounted for and used to pay bank service fees as prescribed. Bank service fees are expenditures belonging to the project.

8. When the expenditure activity on the non-repayable aid fund account at a commercial bank ends, if there is no commitment in the approved project documentation regarding the use of interest from aid fund deposits, the project owner shall deposit the entire accrued interest balance into the state budget in accordance with current regulations. The use of the accrued interest balance shall be carried out in accordance with the laws on public investment and state budgets.

9. For aid not from state budget revenues:

a) The accounting, bookkeeping, and final settlement for non-budgetary state funds aid shall be carried out in accordance with the laws on accounting and the charter on organization and operation of the aid recipient entity. The project leader shall prepare an annual final settlement report on the aid and upon completion of the project based on quarterly disbursement figures that have been reconciled with the commercial bank where the aid receiving account is opened and the aid provider to submit to the supervising authority for approval of the final settlement;

b) The supervising authority shall approve the final settlement, consolidate it, and send it to the Ministry of Finance, the Ministry of Planning and Investment, and related agencies;

The supervising authority shall not later than June 30 each year approve the annual final settlement report for the project and consolidate it, then send it to the Ministry of Finance, the Ministry of Planning and Investment, and related agencies.

Article 24. Acceptance of Aid in the Form of Goods and Services

1. The acceptance of imported aid goods shall be carried out in accordance with the Law on Customs, the Law on Export Tax, Import Tax, and the Law on Tax Administration. The customs clearance documentation for imported aid goods submitted to the customs authority includes:

a) Approval decision on program, project, non-project aid document: one copy with confirmation of true copy stamp from the competent authority as prescribed by relevant laws;

b) Other documents as required by the law on customs procedures.

2. Documentation for tax refund or exemption for domestically purchased goods and services funded by aid shall be submitted to the tax authority including:

a) Approval decision on program, project, non-project aid document: one copy;

b) Request for confirmation of valid expenditure for public funds and request for payment of investment capital by the project leader according to the Government's regulations on administrative procedures under the State Treasury domain (for cases of non-reimbursable aid from state budget revenue);

c) Other documents as required by the law related to tax refund or exemption.

3. Taxes, fees, and charges shall be implemented in accordance with current laws on taxes, fees, and charges.

4. For cases of accepting aid from state budget revenue, after the handover of goods, the project leader shall prepare documentation to submit to the State Treasury for recording state budget income and expenditure as prescribed. The documentation for recording income and expenditure includes:

a) Approval decision on program, project, non-project aid document: one copy with confirmation of true copy stamp from the competent authority as prescribed by relevant laws;

b) Request for recording income and expenditure according to the Government's regulations on administrative procedures under the State Treasury domain;

c) In case of imported goods: Contract, bill of lading or other transport documents of equivalent value, commercial invoice or import declaration form for cases without a commercial invoice: one copy with confirmation of true copy stamp from the competent authority as prescribed by relevant laws. In case of domestically purchased goods: Purchase and sale contract, VAT invoice, delivery receipt: one copy with confirmation of true copy stamp from the competent authority as prescribed by relevant laws;

d) Decision on the aid budget allocation from state budget revenue or adjusted budget supplement for the year by the competent authority.

5. The State Treasury shall record the cost of imported goods for accounting purposes at a price excluding taxes, fees, and charges as prescribed.

6. Management of assets for assets of aid from state budget revenue shall be carried out in accordance with the Law on Public Asset Management and guiding documents. In cases where there is a different agreement with the aid provider, the project leader must seek the opinion of the Ministry of Finance before implementation.

7. For assets of aid not from state budget revenue:

a) The aid recipient shall open a separate ledger;

b) The management and use of assets of programs and projects and assets formed from projects shall be carried out according to the agreement with the aid provider as stated in the approved project document;

c) Upon completion of the project, assets of the program and project and assets formed from the program and project shall be considered as the property of the project leader; they may not be sold, gifted, transferred, or given away in any form;

d) In cases of change of ownership or division, merger, bankruptcy, assets of the aid project shall be transferred to an organization with similar functions as prescribed by the competent authority to continue implementing the program and project (if the program and project have not yet ended) or returned to the supervising authority based on the supervising authority's approval. In cases where these options cannot be implemented, the supervising authority shall be responsible for reporting to the Ministry of Finance to develop a resolution plan.

Article 25. Tax on Aid Grants

The tax on aid grants shall be implemented in accordance with the current laws of Vietnam.

Article 26. Audit of Aid Grants

1. Aid grants from state budget revenue are subject to state audit.

2. Aid grants not from state budget revenue: independent audits shall be conducted at the request of the aid provider.

Chapter V
STATE MANAGEMENT OF AID GRANTS

Article 27. Contents of State Management of Aid Grants

1. Issuing and implementing legal documents on management and utilization of aid grants in accordance with Vietnamese law.

2. Providing information on management and utilization of aid grants within the scope regulated by this Decree.

3. Monitoring and evaluating the situation and results of management and utilization of aid grants within the scope regulated by this Decree in accordance with current laws.

4. Handling violations, resolving complaints and denunciations of organizations and individuals related to the activities of managing and utilizing aid grants.

5. Awarding agencies, organizations, and individuals in Vietnam and aid providers who have achieved success in providing, managing, and utilizing aid grants.

Article 28. Tasks and Authorities of the Ministry of Planning and Investment

1. It is the lead agency responsible for state management of aid grants within the scope regulated by this Decree.

2. Taking the lead in drafting, submitting for issuance, or issuing legal documents on management and utilization of aid grants within its authority.

3. Taking the lead in reviewing and consolidating opinions of relevant agencies to submit to the Prime Minister for consideration and approval of aid grants within the Prime Minister's authority.

4. Submitting annual consolidated reports on the management and utilization of aid grants to the Prime Minister; proposing measures to improve the effectiveness of management and utilization of aid grants within the scope regulated by this Decree.

5. Inspecting compliance with regulations on receiving, approving, and implementing aid grants within its authority for agencies and units receiving aid grants within the scope regulated by this Decree.

Article 29. Tasks and Authorities of the Ministry of Finance

1. Leading and coordinating with relevant agencies to develop financial management systems for state aid.

2. Participating in opinions on aid grants as prescribed.

3. Managing state finances for aid grants from state budget revenue.

4. Summarizing the financial management situation of aid grants. Regularly submitting annual reports to the Ministry of Planning and Investment for consolidation and reporting to the Prime Minister.

5. Supervising and inspecting the financial management situation and compliance with financial regulations for organizations and units receiving aid grants within the scope regulated by this Decree.

Article 30. Tasks and Authorities of the Ministry of Foreign Affairs

1. Participating in providing opinions on aid grants as prescribed.

2. Participating in supervising the implementation of aid grants by foreign non-governmental organizations in accordance with their aid commitments and registered activities with competent state authorities.

3. Regularly and fully providing information on the issuance, extension, amendment, and supplementation of registration certificates and activities of foreign non-governmental organizations to serve as a basis for conducting advocacy and assessment of aid grants by foreign non-governmental organizations as stipulated in this Decree.

Article 31. Tasks and Authorities of the Ministry of Public Security

1. Guide and support Vietnamese agencies and organizations in receiving and using aid funds in accordance with Vietnam's laws on national security protection and social order maintenance.

2. Participate in reviewing and providing comments to the Ministry of Planning and Investment on related aid funds before submitting them for consideration and decision by the Prime Minister; participate in reviewing and providing comments.

3. Coordinate with relevant agencies to inspect, examine, and supervise the receipt and use of aid to ensure political security and social order.

4. Carry out tasks within its authority when signs of violations related to the receipt and use of aid funds are detected.

5. Provide information related to the review process during the assessment of aid funds to the Ministry of Planning and Investment, Ministry of Finance, Ministry of Foreign Affairs, and Ministry of Home Affairs.

Article 32. Tasks and Authorities of the Ministry of Home Affairs

1. Lead the review and approval according to its authority; participate in reviewing and providing comments on the receipt of aid funds with related content.

2. Guide and support Vietnamese agencies and organizations in implementing state policies on religion during the receipt and use of aid funds.

3. Annually compile the situation of management and use of aid by associations and social welfare and charitable funds under the jurisdiction of Vietnamese law. Report periodically annually to the Ministry of Planning and Investment for consolidation and reporting to the Prime Minister.

4. Inspect, supervise the situation of receipt, management, and use of aid by associations, social welfare, and charitable funds according to the management authority of the Ministry of Home Affairs.

Article 33. Tasks and Authorities of the Managing Agency

In addition to the tasks and authorities stipulated in Chapters I, II, III, and IV of this Decree, the managing agency has the following tasks and authorities:

1. Ministries, agencies at the level of ministries, government agencies, provincial People's Committees, and centrally governed city People's Committees, according to their assigned functions and tasks, coordinate in the management and use of aid within their respective areas of management as prescribed by law.

2. Participate in providing opinions during the review and approval of aid funds in specialized fields managed by the government's assignment.

3. The head of the managing agency is responsible for approving aid funds within the authority defined in this Decree and must bear responsibility under the law for their approval decisions.

4. Provincial and centrally governed city People's Committees assign the Department of Planning and Investment to be the focal point for managing and using aid funds within the scope regulated by this Decree.

5. Issue internal regulations on the management and use of aid based on this Decree and related legal normative documents.

6. Direct, guide, and inspect subordinate units in the receipt, management, and use of aid in accordance with current regulations, and fulfill commitments with the aid provider.

7. Supervise and evaluate the receipt and implementation of approved aid funds; promptly identify and handle issues, difficulties, and violations during the implementation of aid receipt and use processes or report to relevant state management agencies on aid mentioned in this Chapter for handling.

8. Adequately and timely allocate preparatory capital and counterpart capital to implement aid programs and projects in accordance with provisions in approved program and project documentation.

9. Bear responsibility to the Government for the quality, effectiveness, and progress of aid program and project implementation in compliance with legal provisions.

10. Fully comply with reporting systems as prescribed.

Chapter VI
IMPLEMENTING PROVISIONS

Article 34. Implementation Organization

1. The Ministry of Planning and Investment shall issue guidance documents on reporting forms in accordance with the provisions of this Decree.

2. The Ministry of Finance shall issue guidance documents on financial management reporting forms in accordance with the provisions of this Decree.

Article 35. Transitional Provisions

1. Assistance grants that have been submitted to the authority approving assistance grants or the Ministry of Planning and Investment for review and submission to the Prime Minister for consideration and approval before this Decree takes effect shall continue to be implemented in accordance with the provisions of Government Decree No. 93/2009/NĐ-CP dated October 22, 2009 on the issuance of regulations governing the management and use of non-governmental foreign aid.

2. Assistance grants approved before this Decree takes effect shall be managed financially and report according to the provisions of Government Decree No. 93/2009/NĐ-CP dated October 22, 2009 on the issuance of regulations governing the management and use of non-governmental foreign aid and the guiding documents implementing Government Decree No. 93/2009/NĐ-CP dated October 22, 2009 until the end date specified in the decision approving the grant by the competent authority.

Article 36. Effectiveness and Responsibility for Implementation

1. This Decree takes effect from September 17, 2020 and replaces Government Decree No. 93/2009/NĐ-CP dated October 22, 2009 on the issuance of regulations governing the management and use of non-governmental foreign aid.

2. Ministers, heads of ministerial-level agencies, heads of government agencies, Chairpersons of provincial People's Committees under central cities, organizations, and individuals related to this matter are responsible for implementing this Decree./.