Circular No. 97/2005/TT-BTC guiding the financial support mechanism for Defense Economic Zones

CIRCULAR

Guidelines for Financial Support Mechanisms for National Defense Economic Zones

Implementing the Prime Minister's Directive at Circular No. 138/TTg-KTTH dated February 1, 2005 on certain financial support mechanisms for National Defense Economic Zones;

After receiving unified opinions from the Ministry of National Defense (Circular No. 4391/QP dated August 31, 2005) and the Ministry of Planning and Investment (Circular No. 5846/BKH-QPAN dated August 29, 2005), the Ministry of Finance provides guidelines for implementing financial support mechanisms for National Defense Economic Zones as follows:

I. SUBJECTS AND SCOPE OF APPLICATION

1. Scope of Application.

- State-owned enterprises, State-owned corporations, independent accounting units under State-owned corporations directly subordinate to the Ministry of National Defense (hereinafter referred to as state-owned enterprises) located within the territory of National Defense Economic Zones.

- National Defense Economic Teams directly subordinate to National Defense Economic Zones established pursuant to the decision of the Minister of National Defense.

2. Scope of Application.

- For State-owned Enterprises: Capital contribution to registered capital; financial support for part of production and processing activities of agricultural and forestry products; funding for nursery and kindergarten operations, and health care expenses.

- For National Defense Economic Teams: Financial support to ensure conditions for unit activities to implement social policy work and mass mobilization propaganda when other sources of funds are insufficient or not yet sufficient to carry out such tasks.

II. FINANCIAL SUPPORT FOR STATE-OWNED ENTERPRISES UNDER THE MINISTRY OF NATIONAL DEFENSE LOCATED IN NATIONAL DEFENSE ECONOMIC ZONES

II. FINANCIAL SUPPORT FOR STATE-OWNED ENTERPRISES UNDER THE MINISTRY OF NATIONAL DEFENSE LOCATED IN NATIONAL DEFENSE ECONOMIC ZONES

1. The provision of registered capital to state-owned enterprises under the Ministry of National Defense in national defense economic zones shall be carried out according to the supplementary registered capital plan for state-owned enterprises approved by the Prime Minister.

2. State-owned enterprises engaged in production and processing of agricultural and forestry products shall implement financial support mechanisms similar to those for businesses producing and supplying public utility products and services.

In cases where they are compensated for the difference between selling price and full cost of agricultural and forestry products sold, these enterprises shall not be supported with transportation costs for fertilizers, pesticides, seedlings, and livestock according to Point 3, Section II below.

3. Support for transportation costs of fertilizers, pesticides, seedlings, and livestock from purchase locations to production teams of the enterprise to serve business operations based on actual and reasonable invoices.

4. Support for nursery and kindergarten operations managed directly by the enterprise in areas without schools or kindergartens in the education system (confirmed by the local Department of Education and Training in the national defense economic zone):

4.1. Initial investment costs for building classrooms and purchasing desks, chairs, and teaching materials not exceeding 50,000,000 VND/classroom (for facilities that have not been equipped). In cases where classrooms and teaching materials are damaged and need replacement and supplementation, the expenditure shall not exceed 5,000,000 VND/classroom/year.

4.2. Funding to ensure salaries and other prescribed benefits for teachers and caregivers according to current regulations of the state for the area where the unit is stationed.

5. Support for medical work in areas requiring the maintenance of hospitals and clinics due to special conditions:

5.1. Investment and equipment costs for initial setup not exceeding 70,000,000 VND/hospital or clinic.

5.2. Regular operating costs for hospital and clinic activities.

5.2.1. For existing hospitals and clinics: the level of support is determined based on the actual regular operating costs of the unit in the previous year.

5.2.2. For newly established hospitals and clinics: the level of support is based on the budgeted regular operating costs for the unit's activities and approved by the competent authority.

Determining the level of regular operational support for hospitals and clinics may refer to and apply the regular operational expenditure levels of similar healthcare facilities of the same scale in the region where the unit is stationed.

The Ministry of National Defense approves the list of hospitals and clinics directly subordinate to state-owned enterprises eligible for this support.

6. Support for funding social policy work and mass mobilization propaganda activities such as training and vocational education for ethnic laborers for up to six months; poverty alleviation, stable farming and settlement... at a rate of 50,000 VND/person/month.

7. Enjoy other financial preferential policies and mechanisms currently applicable to national defense enterprises operating in strategic areas combining economy with national defense.

State-owned enterprises may only receive the above funding support if they have not been equipped according to the provisions of this Circular. The support provisions in Points 5 and 6, Section II above shall only be implemented in areas without National Defense Economic Teams.

III. FINANCIAL SUPPORT FOR NATIONAL DEFENSE ECONOMIC TEAMS

(OPERATING UNDER THE UNIT BUDGET SYSTEM)

In addition to being provided with state budget funds to ensure regular expenditures according to the prescribed regulations for budget units under the Ministry of National Defense, National Defense Economic Teams are supported financially by the state to ensure the conditions for unit activities to implement social policy work and mass mobilization propaganda as follows:

1. Support for nursery and kindergarten operations managed directly by National Defense Economic Teams in areas without schools or kindergartens in the education system (confirmed by the local Department of Education and Training).

1.1. Initial investment costs for building classrooms and purchasing desks, chairs, and teaching materials not exceeding 50,000,000 VND/classroom (for units that have not been equipped). In cases where classrooms and teaching materials are damaged and need replacement and supplementation, the expenditure shall not exceed 5,000,000 VND/classroom/year.

1.2. Funding to ensure salaries and other prescribed benefits for teachers and caregivers according to the rank and grade prescribed by the state in the area.

2. Support for hospitals and clinics directly managed by National Defense Economic Teams listed in the personnel establishment of the Ministry of National Defense.

2.1. Investment and equipment costs for initial setup not exceeding 70,000,000 VND/hospital or clinic.

Specifically, hospitals and clinics in areas with 20 beds or more are additionally supported with funding for the installation of one complete X-ray machine (14 inches) including film development and drying equipment based on actual expenditures but not exceeding 300,000,000 VND/unit; one ambulance vehicle based on actual expenditures but not exceeding 350,000,000 VND/vehicle; one black-and-white ultrasound machine for hospitals and clinics at the division level and equivalent based on actual expenditures but not exceeding 300,000,000 VND.

These investment funds shall only be supported if they have not been installed or equipped.

2.2. Funding for social policy work:

- Funding for purchasing medicine for medical examination and treatment for civilians at units stationed in remote areas far from district health centers shall be based on actual expenditure but not exceeding 30,000,000 VND/year for Medical Outposts with less than 10 beds, 40,000,000 VND/year for Medical Outposts with 10 to less than 20 beds, and 50,000,000 VND/year for Medical Outposts and hospitals with 20 beds or more.

- Subsidizing food expenses for civilian patients admitted for inpatient treatment at hospitals and medical outposts at a rate of 10,000 VND/person/day.

3. Funding for propaganda and mobilization work.

3.1. For production teams with a staffing level of three people or more (excluding those within the reinforcement team structure deployed in the Central Highlands, Southwest, Northwest regions, and border provinces of Vietnam-Laos) shall be supported:

3.1.1. Funding for purchasing one motorcycle or one to two horses with a maximum amount of 20,000,000 VND/team.

3.1.2. Funding for purchasing one television, one radio, one megaphone, and one water filter (if necessary) with a maximum amount of 8,000,000 VND.

3.1.3. Funding for purchasing one set of tables and chairs, one file cabinet for serving communal cultural activities and public reception with a maximum amount of 4,000,000 VND/team.

3.1.4. Funding for purchasing fuel, repairing equipment, and facilities with an annual allocation of 2,000,000 VND.

3.1.5. Funding (for fuel) for operating a generator to provide television signals for civilians to watch television (ensuring three hours/day) with an annual allocation of 5,000,000 VND/generator for units stationed in areas without television signal coverage.

3.1.6. Funding for professional training and learning ethnic languages with a rate of 300,000 VND/person.

3.1.7. Individuals engaged in propaganda work shall receive living allowances according to an annual allocation of 2,000,000 VND/person/year. When receiving this allowance, they shall not receive travel allowances if working in the assigned area.

For items mentioned in points 3.1.1, 3.1.2, and 3.1.3, support shall only be provided if such equipment has not yet been supplied.

3.2. For the superior level of the Team.

Supporting travel expenses and fuel costs for conducting and directing general situation monitoring in the assigned areas of the Teams according to an annual allocation:

- For Brigade and equivalent levels: 100,000,000 VND/year.

- For Division and equivalent levels: 200,000,000 VND/year.

3.3. Funding for meeting and gift-giving during holidays and festivals for village elders, heads of villages, and policy beneficiaries according to an annual allocation:

- For Brigade and equivalent levels: 10,000,000 VND/year.

- For Division and equivalent levels: 20,000,000 VND/year.

IV. BUDGET ESTIMATION, DISTRIBUTION AND SETTLEMENT

SETTLEMENT OF SUPPORT FUNDS EXPENSES

1. Budget Estimation.

All forms of support for State-owned Enterprises under the Ministry of National Defense located within the Defense Economic Zone and the Defense Economic Corps must be included in the annual budget allocated to the Ministry of National Defense.

Based on assigned tasks, State-owned Enterprises and the Defense Economic Corps shall prepare detailed budgets for each specific item stipulated in Sections II and III of this Circular and report to the higher management authority for review before submitting to the Ministry of National Defense for consolidation in the Ministry's annual budget.

The Ministry of National Defense shall review the budgets of the units, consolidate the budgets of the State-owned Enterprises and the Defense Economic Corps, and submit them to the Ministry of Finance for presentation to the Prime Minister for reporting to the National Assembly for decision-making (accompanied by the budget preparation form).

2. Distribution of funds.

Based on the approved budget, the Ministry of National Defense will allocate funds according to regulations; based on the Ministry of National Defense's proposal, the Ministry of Finance will issue payment orders to the Ministry of National Defense. State-owned Enterprises will directly receive financial support from the state budget for each unit according to current regulations.

3. Settlement of funds.

At the end of the year, units must prepare a final settlement report on financial support along with the annual financial report (in case of State-owned Enterprises) to be submitted to the Ministry of National Defense and the Ministry of Finance. The Ministry of National Defense is responsible for reviewing the settlement of financial support usage to ensure compliance with state regulations and this Circular. In cases of improper expenditures or exceeding the prescribed limits, the Ministry of National Defense will rectify the improper expenditures and overlimits. Those who issue improper payment orders must compensate and may face penalties according to the law depending on the severity.

V. IMPLEMENTATION

1. The Ministry of National Defense shall specify the responsibilities of relevant agencies in directing implementation, supplementing funds for the Defense Economic Corps, ensuring material conditions for units to effectively perform social policy work and propaganda mobilization among the masses in the Defense Economic Zone.

2. The Defense Economic Corps and State-owned Enterprises under the Ministry of National Defense located within the Defense Economic Zone shall responsibly use the financial support provided by the state for their intended purposes and effectively; implement accounting, management, and utilization of assets according to current state regulations.

3. Financial support for the Defense Economic Corps and State-owned Enterprises under the Ministry of National Defense located within the Defense Economic Zone as stipulated in this Circular shall be guaranteed by the state budget and arranged in the annual budget of the Ministry of National Defense.

4. This Circular shall take effect fifteen days after its publication in the Official Gazette.

During implementation, if there are any difficulties, units should report to the Ministry of Finance for research and supplementary guidance./.