Joint Circular No. 88 TT/LB guides the implementation of policies for film funding.

JOINT CIRCULAR

Guidelines for Implementing the Policy on Film Subsidies.

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Pursuant to Decision No. 417/CT dated December 26, 1991 of the Chairman of the Council of Ministers (now Prime Minister) regarding the restructuring of the film industry organization and Circular No. 237/TB dated September 21, 1993 of the Government Office on the conclusions of the Prime Minister's comments on the proposal to restructure the film industry organization: The Ministry of Culture and Information and the Ministry of Finance provide guidelines for implementing the policy on film subsidies as follows:

I/ GENERAL PRINCIPLES:

1. Motion pictures (including celluloid films, videos, and other recording materials) are cultural ideological products that the State subsidizes to develop the national film industry according to the socialist orientation and contribute to political ideological propaganda, enhance aesthetic appreciation, and serve the spiritual cultural life of the people.

2. Feature films (including print runs), documentary films, scientific films, and feature films on revolutionary themes, historical themes, and children’s themes decided by the Minister of Culture and Information, as well as film screenings to implement social policies for the people in mountainous areas, ethnic minority regions, remote rural areas, and islands, are subsidized by the State within the approved annual budget.

3. Films subsidized by the State shall prioritize copyright ownership to the State, and the agencies responsible for importing, exporting, and screening films shall be tasked with collecting, organizing, and disseminating subsidized films to serve the people and recover costs.

4. The funding for film subsidies comes from the State Budget and is managed according to the provisions of Joint Circular No. 06/TT-LB dated July 10, 1993 of the Government Price Control Board and the Ministry of Finance on guiding the management mechanism for prices of goods and services subject to price subsidies and government orders from the State Budget in the fields of culture, information, health care, education, training, sports, and physical culture.

II. SUBSIDY METHODS:

1. Annually, film units assigned the task of producing and distributing subsidized films must prepare budgets attached with literary scripts... and submit them to the Ministry of Culture and Information and the Provincial Department of Culture and Information for review and consolidation before submitting to the financial authorities at the same level for examination and approval within their authority. Based on the approved subsidy plan, the Ministry of Culture and Information and the Provincial Department of Culture and Information assign quantity targets (number of films, print runs, and screenings) and the amount of subsidy funds for the film units to implement.

2. The subsidy methods are specified as follows:

a. Regarding film production.

For subsidized films, after receiving opinions from the Film Council and a decision by the Minister of Culture and Information to assign the production unit, the unit must prepare a comprehensive budget for submission to the supervising agency and the Financial and Price Control Agency for review of the cost and percentage of State Budget subsidy, specifically:

+ Documentary films, scientific films, animated films produced using celluloid, video, and other materials will be fully subsidized at 100% of the reasonable costs of each film reviewed by the aforementioned agencies, but must ensure within the approved annual quantity and funding subsidy targets.

+ Feature films on revolutionary, historical, and children’s themes approved for production by the Ministry of Culture and Information will receive a subsidy not exceeding 60% of the reasonable costs of each film reviewed by the aforementioned agencies within the announced annual budget plan.

In special cases where certain films are not included in the approved annual subsidy plan but are required for political tasks, after receiving opinions from the Film Council and a decision by the Minister of Culture and Information, the Ministry of Culture and Information and the Ministry of Finance will consider and resolve.

+ Films ordered by the Prime Minister or authorized agencies by the Government will have the Ministry of Finance allocate funds to the production unit after completing the review process by the Ministry of Culture and Information.

To ensure the progress of film production according to the assigned plan, financial authorities at all levels will advance 50% of the subsidy funds for the subsidized film. After the film is completed and permitted for circulation based on the Minister of Culture and Information's decision on its ideological content and artistic quality, and upon purchase or acceptance by the film distribution and screening agency, the remaining subsidy funds will be settled. In cases of significant changes in ideological content or artistic quality, the Film Council will review and provide opinions, and the Minister of Culture and Information will make a new decision, after which the reviewing agency will reconsider the subsidy fund level for settlement purposes.

b. Regarding film distribution.

For documentary films, scientific films, animated films, and feature films on revolutionary, historical themes... distributed to film units serving ethnic minorities in mountainous areas, remote rural areas, and islands according to the approved annual plan will be fully subsidized for the costs of mass printing (including raw material costs, labor costs...). And distribution costs, after being reviewed by the supervising agency and the Financial and Price Control Agency.

c. Regarding film screenings.

c.1. For screenings of children's films, feature films on revolutionary and historical themes, and those serving mountainous areas, remote rural areas, islands, children, and social policy beneficiaries assigned targets by the Provincial Department of Culture and Information, the following subsidy method will be applied:

- Calculating the number of screenings (x) multiplied by the average reasonable costs per screening according to current regulations.

- Film distribution and screening units prepare budgets for screening costs for these target groups and submit them to the Provincial Department of Culture and Information and the Provincial Financial and Price Control Agency for review and processing as follows:

+ For profit-making film distribution and screening units, the approved service costs will be recorded as circulation expenses.

+ For loss-making film distribution and screening units according to the approved plan, the State Budget will provide the approved service costs after quarterly settlement.

c.2/ For film distribution and projection units that have been identified as state-owned enterprises under Decree No. 388/HĐBT dated November 20, 1991, the expenses for renting films, purchasing films, video tapes... serving political tasks shall be calculated within the working capital norms for review and allocation by the supervising authority and the financial pricing authority according to current regulations.

3/ The funding support for film units to carry out the above tasks must be settled simultaneously with the period of financial settlement report of the unit.

4/ The source of funding support belonging to which budget level shall be resolved by that budget level.

III/ CONDITIONS FOR IMPLEMENTATION:

These provisions in this Circular shall take effect from the date of signature. During implementation, if there are difficulties or obstacles, please reflect them in writing to the Ministry of Culture, Sports and Tourism - Ministry of Finance for consideration and resolution./.