Circular No. 86/2002/TT-BTC guides the provision of financial support for trade promotion activities to boost exports.

CIRCULAR

Guidelines for Providing Financial Support for Trade Promotion Activities to Enhance Export

Implementing Resolution No. 05/2002/NQ-CP dated April 24, 2002 of the Government on certain measures to implement the socio-economic plan for 2002;

After receiving comments from the Ministry of Trade, the Ministry of Planning and Investment, some industry associations, and instructions from the Prime Minister in Official Letter No. 5109/VPCP-KTTH dated September 16, 2002 of the Government Office, to strengthen encouragement and enhance exports, the Ministry of Finance stipulates the mechanism for providing financial support for market development activities and trade promotion as follows:

I - GENERAL PROVISIONS

1. Annually, the State allocates a budget based on the export turnover to support trade promotion activities aimed at enhancing exports under national key programs (hereinafter referred to as trade promotion programs) with the objectives:

- To facilitate enterprises' access to export markets.

- To enhance the competitiveness of exported products.

- To improve knowledge and marketing skills for exports.

- To diversify product lines, improve commodity structure, and expand export markets.

- To promote Vietnamese export goods.

2. Based on the State's export orientation for each period, the Ministry of Trade will coordinate with relevant ministries and sectors to compile and evaluate, and propose key national trade promotion programs, specifying the program content, implementation time frame, responsible agency, and budget estimate for submission to the Prime Minister for approval.

3. For localities that can allocate budgets from surplus revenue and other legitimate sources, the Chairman of the People's Committee of the province or city shall issue a decision to establish a Trade Promotion Fund or Export Support Fund of the locality to be used for encouraging exports, including trade promotion activities as prescribed in this circular.

The Department of Trade shall lead in developing key local trade promotion programs for submission to the People's Committee of the province or centrally-administered city for approval.

4. Principles of Support:

- The funding for implementing key trade promotion programs shall be contributed by participating enterprises and partially supported by the State through the responsible agency.

- The agency assigned to lead the program must ensure the efficient and economical use of funds and bear responsibility for expenditures in accordance with current regulations.

II - SPECIFIC PROVISIONS

1. The activities of key trade promotion supported include:

1.1. Commercial information, export publicity, and establishment of data centers to support enterprises.

1.2. Export advisory services.

1.3. Training to enhance business capabilities and export marketing skills for enterprises.

1.4. Export product exhibitions.

1.5. Market research and exploration for exports.

1.6. National brand and characteristic export product promotion.

1.7. Initial costs for establishing trade promotion infrastructure: bonded warehouses, trade promotion centers, and product displays both domestically and internationally.

1.8. Research and application of e-commerce development to serve exports.

1.9. Other trade promotion activities as decided by the Prime Minister.

2. Eligible recipients of support: Enterprises of all economic components participating in key trade promotion programs.

3. Recipients of support: Industry associations or trade promotion agencies under ministries and sectors, and some enterprises designated as responsible agencies for national key trade promotion programs approved by the Prime Minister (for programs supported by central government budget) or by the Chairman of the People's Committee of the province or centrally-administered city (for programs supported by local budget).

Service enterprises engaged in trade promotion activities are not eligible recipients of support.

The responsible agency for the program has the responsibility to mobilize funding contributions from participating enterprises of all economic components and to accept state support funds to use them appropriately and effectively for the program.

4. Level of Support:

- Support 50% of the costs for activities listed from Point 1.1 to Point 1.5 under Section 1 of Part II.

- Support 70% of the costs for the remaining activities.

Special cases shall be decided by the Prime Minister or the Chairman of the People's Committee of the province or centrally-administered city (for localities).

5. Source of Support Funds:

Annually, the State allocates a budget equal to 0.25% of the total value of the previous year's national export turnover (excluding crude oil) to be transferred into the Export Support Fund to form a source of support for national key trade promotion programs. If unused, it will be deducted from the allocation of the following year.

For localities: The People's Committee of the province or centrally-administered city shall base their decisions on the locality's capacity and the need for export encouragement spending to determine the amount to be allocated to the local Trade Promotion Fund or Export Support Fund in accordance with the situation.

6. Procedures for Granting Support:

- Based on the total budget for each approved national key trade promotion program, annually, the responsible agency shall prepare a budget for trade promotion activities and estimate the amount of support to send to the Ministry of Finance (with a copy sent to the Ministry of Trade).

For localities, send to the Department of Finance and Price Control (with a copy sent to the Department of Trade).

- Based on the budget estimates and progress, after review, the Ministry of Finance shall disburse from the Export Support Fund (or the Department of Finance and Price Control shall disburse from the local Trade Promotion Fund or Export Support Fund) a provisional payment of the estimated support amount to the responsible agency to carry out trade promotion activities.

7. Settlement of Support Funds:

Annually, the leading agency of the program shall be responsible for consolidating all actual revenues and expenditures, and allocating funds according to the ratio specified in Part II, Section 3, to publicly announce the final accounts with the financial authority (the Department of Enterprise Finance - Ministry of Finance or the Provincial/Municipal Department of Finance and Prices) and participating enterprises, and simultaneously sending them to the corresponding trade authorities.

Based on the final accounts, the leading agency of the program must return excess funds or accept additional funds from the parties obligated to contribute to the program.

The leading agency of the program is subject to inspection and supervision by competent authorities as prescribed.

8. Provisions on accounting:

- Participating enterprises may include their contributions to the leading agency of the program in their cost of production and circulation fees.

- Leading agencies of the program shall organize separate and complete accounting for all revenues and expenditures under the program in accordance with state regulations.

III - IMPLEMENTATION PROVISIONS

1. This Circular takes effect from the date of issuance and applies to trade promotion activities from 2002 to 2005, replacing Circular No. 61/2001/TT-BTC dated August 1, 2001, issued by the Ministry of Finance on guidelines for funding support for market development activities and enhanced trade promotion.

2. During implementation, if there are difficulties or obstacles, they should be reported to the Ministry of Finance by relevant agencies and enterprises for study and resolution.