Circular No. 82-TC/TCNH guides the financial management regulations for the National Investment Support Fund.

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 82 TC/TCNH DATED DECEMBER 24, 1996 GUIDING REGULATIONS ON THE MANAGEMENT OF FINANCIAL RESOURCES FOR THE NATIONAL INVESTMENT SUPPORT FUND

Pursuant to Decision No. 808/TTg dated December 9, 1995 of the Prime Minister on the establishment of the National Investment Support Fund.
Pursuant to Decision No. 462/TTg dated July 9, 1996 of the Prime Minister approving the Charter of the National Investment Support Fund.
Pursuant to Decree No. 178/CP dated October 28, 1994 of the Government stipulating the tasks, powers, and organizational structure of the Ministry of Finance.
The Ministry of Finance guides the financial management regulations for the National Investment Support Fund as follows:

I. GENERAL PROVISIONS

1. The National Investment Support Fund is a state financial organization operating throughout the country. The Fund has the function of mobilizing capital from organizations and individuals both within and outside the country; receiving state investment funds to lend to projects developing industries and sectors favored by all economic components and regions with difficulties as prescribed by the Government. The Fund's activities are not aimed at profit-making objectives.

2. The National Investment Support Fund has legal personality, with a charter capital of 1,100 billion VND (one thousand one hundred billion dong) upon establishment, is financially autonomous, and bears responsibility for its operations before the law. It is exempted from taxes and from paying the amount received from the State budget usage to reduce lending interest rates but must ensure repayment of principal and coverage of costs.

3. Implement revenue, expenditure, accounting, and settlement of financial revenues and expenditures according to the Accounting and Statistics Ordinance and the financial regime of the State. The fiscal year of the Fund runs from January 1 to December 31 annually.

4. The National Investment Support Fund is subject to financial management by the Ministry of Finance.

II. CONTENTS OF FINANCIAL MANAGEMENT

1. Regarding the sources of capital for the operation of the National Investment Support Fund

a. The charter capital at establishment and increase of the National Investment Support Fund is formed from the following sources:

- Capital provided by the State Budget: 50% of the total charter capital.

- Capital contributions from insurance organizations, state-owned credit institutions, and state-owned enterprises (hereinafter referred to collectively as state-owned enterprises) with a list and contribution levels determined by the Minister of Finance submitting to the Prime Minister for decision. The capital contribution from state-owned enterprises is derived from post-tax profits of the previous year with a minimum level of 3%. - Voluntary capital contributions from individuals and organizations both within and outside the country.

Annually, based on actual investment needs, the capacity of the State Budget and state-owned enterprises, and the proposal of the Management Board of the Fund, the Minister of Finance submits to the Prime Minister for decision on the additional contribution level to the charter capital of the National Investment Support Fund. b. Mobilized capital: The Fund can mobilize and receive from the following sources: - Medium and long-term loans from organizations and individuals both within and outside the country.

- Receiving state investment funds, including government loans and official development assistance (ODA) to lend to projects specified by the Government.

- Mobilizing medium and long-term capital from organizations and individuals both within and outside the country through issuing various types of bonds.

- Accepting entrusted capital for investment development from organizations and individuals both within and outside the country.

- Receiving funds from economic and social organizations and individuals voluntarily deposited with the National Investment Support Fund for investment development.

2. Using capital and preserving capital:

- The operational capital of the Fund is mainly used to lend to medium and long-term investment projects in industries and sectors favored by the Government or in ethnic minority areas, mountainous regions, islands, and other difficult regions as prescribed by the Government. For new production and business establishments as stipulated in Article 9 and 11 of the Law on Encouraging Domestic Investment, the Fund may lend at interest rates decided by the Management Board in accordance with the principle of ensuring repayment and covering management costs.

- The Fund is responsible for managing and using the capital for its intended purpose, targeting the right beneficiaries, effectively recovering both principal and interest promptly to ensure repayment, cover management costs, and timely and fully repay to organizations and individuals who have lent to the Fund.

- Operational risks due to objective reasons will be covered by the Operational Risk Reserve Fund. For unavoidable risks such as natural disasters, typhoons, floods, or implementing tasks directed by the State..., after using the Operational Risk Reserve Fund to cover losses and still being insufficient, the Fund must report clearly the causes and extent of damage to the Ministry of Finance for consideration and submission to the Government for resolution.

- The loan amount, term, and interest rate for loans are applied according to the provisions of Articles 11, 12, and 13 of the Charter of the National Investment Support Fund issued together with Decision No. 462/TTg dated July 9, 1996 of the Prime Minister.

3. Financial income and expenditure of the Fund

a. Income of the Fund includes the following items:

- Interest income from loans

- Interest income from deposits with the State Treasury and Banks

- Service fees include:

+ Service fees for projects that the Fund accepts to re-lend on behalf of others. Revenue is the service fee for re-lending obtained from the lending entity according to the contract.

+ Service fees for transferring capital domestically and internationally for financial organizations and units transacting with the Fund (if applicable).

+ Other service fees.

- Other income generated during the course of operations beyond the above items.

b. Operating expenses of the Fund:

- Business expenses include:

+ Payment of interest on bonds raised for capital.

+ Payment of interest on medium and long-term loans from organizations and individuals both within and outside the country.

+ Payment of interest on entrusted capital received from organizations and individuals both within and outside the country if they pay interest (if applicable).

+ Expenses for issuing bonds and raising capital

+ Other expenses arising from loan appraisal, inspection, and recovery of project investment loans.

+ Other business expenses (if applicable)

- Management expenses:

+ Salary and allowances

+ Contributions to social insurance, health insurance, and other payments required under salary regulations of the State.

+ Allowances for members of the Management Board and other positions according to current regulations.

+ Depreciation of fixed assets according to State regulations.

+ Expenditure on purchasing labor tools and working equipment.

+ Payment for renting office space and other fixed assets.

+ Repair and maintenance expenses.

+ Travel expenses

+ Information and propaganda fees.

+ Office supplies and seals.

+ Professional training costs.

+ Protective equipment and uniforms according to the State regulations.

+ Other necessary and reasonable expenses such as electricity, water, office cleaning, reception, conference costs... as prescribed by the State.

c. Financial revenue and expenditure management:

- The National Investment Support Fund is responsible for collecting revenues accurately, fully, and promptly from all sources arising during its operations to record them as income of the Fund, without leaving any revenues off the books or failing to record them as income.

- The National Investment Support Fund may allocate expenditures based on its activities according to the following provisions:

* Operational expenses: These are allocated based on the actual amount incurred for the expenses specified in paragraph b.

* Management costs:

+ Wages and allowances for full-time staff working for the Fund shall be implemented in accordance with Decree No. 25/CP dated May 23, 1993 of the Government. For part-time staff and members of the Management Board, the level of allowance shall be determined by the General Director based on the nature and volume of work, to be reported to the Management Board for consideration and decision.

+ Depreciation of fixed assets: The National Investment Support Fund is entitled to allocate depreciation of fixed assets based on the actual value of fixed assets used by the Investment Department. The annual depreciation amount will be considered as basic construction investment capital provided by the State and can be used to purchase fixed assets and other necessary items for the Fund's operations. The Fund is responsible for managing and using this capital in accordance with the Investment and Construction Management Regulations issued together with Decree No. 42/CP dated July 16, 1996 of the Government.

+ For remaining management costs such as purchasing labor tools, repairing and maintaining assets, information communication fees, office supplies, seals, electricity, water, office cleaning, travel expenses, reception costs... since the Fund does not have its own organizational structure but uses the Investment Development Department's structure to operate, these management costs are allocated based on the ratio of the Fund's business turnover compared to the Investment Development Department's business turnover to be recorded as the Fund's expenses.

The National Investment Support Fund records the following expenses:

- Losses and damages to assets caused by individuals or groups within the Fund.

- Expenses for construction and purchase of fixed assets from basic construction investment capital.

- Risks covered by the Risk Reserve Fund.

If any of the above expenses occur, they must be funded from the designated source or deducted from the welfare and incentive funds of the Fund to cover the costs.

4. Distribution of surplus revenue over expenditure

a. If revenue exceeds expenditure, the National Investment Support Fund is entitled to:

- Set aside 25% of total profit to establish the "Operational Risk Reserve Fund." This fund will be established until it equals 100% of the actual registered charter capital at the time of establishment. The Operational Risk Reserve Fund can only be used to offset risks and capital losses in the Fund's operations due to external factors and decided by the Management Board. In cases caused by internal factors, individual responsibility will be pursued or deducted from the welfare and incentive funds of the unit.

- Set aside 15% of total profit to establish the "Capital Supplement Reserve Fund."

- Set aside 15% of total profit to establish the "Technical Development Fund."

- Distribute profits to capital contributors and investors at 30%-35% of total profit. The specific ratio and distribution level are decided annually by the Management Board.

- The remainder is set aside for two welfare and incentive funds. The maximum contribution rate for each fund is controlled according to the regulations for state-owned enterprises. The specific annual contributions are reviewed and determined by the Ministry of Finance based on the Management Board's recommendations. The incentive and welfare funds are used to cover welfare and incentive needs for the Fund's staff and organizations or individuals who have contributed to the Fund's operations. Any remaining amount (if any) after setting aside the welfare and incentive funds (at the approved annual contribution rate) will be added to the technical development fund.

b. In cases where revenue is less than expenditure, based on the actual situation, after using existing funds to cover the shortfall and if it is still insufficient, the Fund reports to the Ministry of Finance for review and handling.

5. Accounting and bookkeeping system:

- The National Investment Support Fund must implement accounting books, record vouchers, and conduct financial accounting and reporting in accordance with the Accounting and Statistics Law and the regulations of the Ministry of Finance.

- The National Investment Support Fund is responsible for finalizing financial accounts and submitting quarterly and annual reports to the Ministry of Finance (Department of Banking and Financial Organization Finance):

+ Balance sheet.

+ Income and expense settlement report.

+ Capital source and utilization report.

Deadline for submission of reports:

- Quarterly reports must be submitted no later than 10 days after the end of the quarter.

- Annual settlement reports must be submitted no later than 30 days after the end of the year.

6. Financial planning:

- The National Investment Support Fund is responsible for developing the annual financial plan at the budget planning stage and sending it to the Ministry of Finance, including:

+ Plan for capital sources and utilization.

+ Financial income and expenditure plan.

The Management Board of the Fund is responsible for reviewing the above plans of the Fund. The financial targets approved by the Ministry of Finance will serve as the basis for the Fund's implementation throughout the year.

III. IMPLEMENTATION PROVISIONS

The National Investment Support Fund is legally responsible for the use and guarantee of State and social capital for investment development purposes and is subject to financial inspection by the State according to the Accounting and Statistics Law and the financial regulations stipulated in this Circular.

This Circular takes effect from the date of signature.

During implementation, if there are any difficulties, please reflect them to the Ministry of Finance for timely supplementation and amendment.