Circular No. 97/2025/TT-BTC guides the implementation of financial policies for enterprises directly serving national defense and security as stipulated in Points b, c, d, đ, e Clause 1 Article 7 Decree No. 16/2023/NĐ-CP dated April 25, 2023 of the Government on the organization of management and operation of enterprises directly serving national defense and security and enterprises combining economy with national defense and security.

CIRCULAR

Guidelines for implementing financial policies for enterprises directly serving national defense and security as stipulated in points b, c, d, đ, e Clause 1 Article 7 Decree No. 16/2023/NĐ-CP dated April 25, 2023 of the Government on organizational management and operation of enterprises directly serving national defense and security and enterprises combining economy with national defense and security

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On the basis of Law on State Capital Management and Investment in Enterprises June 14, 2025;

On the basis of Law on State Budget June 25, 2025;

On the basis of Enterprise Law June 17, 2020 (amended and supplemented by Law No. 03/2022/QH15 January 11, 2022 and Law No. 76/2025/QH15 June 17, 2025);

Decree No. Decree No. 16/2023/NĐ-CP dated April 25, 2023 of the Government on organizational management and operation of enterprises directly serving national defense and security and enterprises combining economy with national defense and security; amending the provisions at point g Clause 1 Article 23 Decree No. 47/2021/NĐ-CP dated April 1, 2021 of the Government detailing certain articles of Enterprise Law;

Decree No. Decision No. February 24, 2025 of the Government on functions, tasks, powers, and organizational structure of the Ministry of Finance (amended and supplemented by Decree No. 166/2025/NĐ-CP June 30, 2025);

At the proposal of the Director of the State-Owned Enterprise Development Department,

The Minister of Finance issues this Circular guiding the implementation of policies for enterprises directly serving national defense and security as stipulated in points b, c, d, đ, e Clause 1 Article 7 Decree No. 16/2023/NĐ-CP dated April 25, 2023 of the Government on organizational management and operation of enterprises directly serving national defense and security and enterprises combining economy with national defense and security.

Article 1. Scope of Regulation

This Circular guides the implementation of financial support from the state budget for enterprises directly serving national defense and security as stipulated in points b, c, d, đ, e Clause 1 Article 7 Decree No. 16/2023/NĐ-CP dated April 25, 2023 of the Government on organizational management and operation of enterprises directly serving national defense and security and enterprises combining economy with national defense and security; amending the provisions at point g Clause 1 Article 23 Decree No. 47/2021/NĐ-CP dated April 1, 2021 of the Government detailing certain articles of Enterprise Law (hereinafter referred to as Decree No. 16/2023/NĐ-CP).

Article 2. Applicability

1. Enterprises directly serving national defense and security as stipulated in Article 3 of Decree No. 16/2023/NĐ-CP (hereinafter referred to as the enterprise).

2. Agencies, organizations, and individuals related to the implementation of policies for enterprises as stipulated in this Circular.

Article 3. Policies for enterprises directly serving national defense and security

1. The State allocates the state budget and other resources to ensure expenditures according to regulations and standards set forth by law, including: uniforms for officers, non-commissioned officers, defense workers, defense officials, lower-ranking non-commissioned officers, police workers, and personnel engaged in confidential work; expenses for training exercises, combat training, and reserve mobilization training; expenses for national defense and security work, national defense service work, and military-civilian relations.

In cases where the state budget and other resources cannot fully cover these expenses, the enterprise may bear the costs and include them in deductible expenses when determining corporate income tax according to the Corporate Income Tax Law and its guiding documents; when the enterprise bears the shortfall of state budget funds, it shall be excluded from business evaluation and classification according to government regulations and the following provisions:

a) Uniforms for officers, non-commissioned officers, defense workers, defense officials, lower-ranking non-commissioned officers, police workers, and personnel engaged in confidential work who are assigned to enterprises under the establishment decision of the Minister of National Defense and the Minister of Public Security and are currently working in the enterprise.

The equipment standards are implemented according to Decree No. 76/2016/NĐ-CP dated July 1, 2016 of the Government on material standards for active-duty military personnel, defense workers, and defense officials (Catalogue Nos. 02, 03, 04), Decree No. 32/2013/NĐ-CP dated April 16, 2013 of the Government detailing and guiding the implementation of certain articles of the Confidential Work Law regarding the system and policies for personnel engaged in confidential work (Catalogue No. 01); Decree No. 01/2021/NĐ-CP dated October 21, 2021 of the Government on standards and quotas for material logistics in the People's Public Security (Appendix II).

b) Expenses for training exercises, combat training, and reserve mobilization training for personnel under the establishment decision of the Minister of National Defense and the Minister of Public Security who are currently working in the enterprise (excluding training exercises already funded by the state for units organizing the exercises) must follow plans and orders issued by competent authorities according to regulations.

The content and quotas for expenses for training exercises and combat training are carried out according to the regulations of the Minister of National Defense and the Minister of Public Security. The system and policies for reserve mobilization training are implemented according to Decree No. 79/2020/NĐ-CP dated July 8, 2020 of the Government on the system and policies for building and mobilizing reserve forces.

c) Expenses for national defense and security work, national defense service work, and military-civilian relations, as follows:

- Enterprises operating in border areas, remote areas, and economically disadvantaged areas are supported:

+ Individuals within the establishment of the enterprise assigned to propaganda and people contact duties receive living allowances at a rate of VND 18,000,000 per person per year. The number of individuals within the establishment assigned to propaganda and people contact duties is decided by the enterprise, with a maximum of three persons per enterprise. When receiving this allowance, individuals are not entitled to travel expenses if they work within the area where the enterprise is located.

||| Support for expenses related to meetings and gift-giving during festivals and holidays for village elders, heads of hamlets, and policy beneficiaries, at a rate of 3,000,000 VND per village or hamlet within the management scope of enterprises.

||| Enterprises are supported with funds for purchasing materials and organizing technical guidance conferences on livestock breeding and crop cultivation according to the current regulations of the Ministry of Finance regarding conference expense standards.

||| Enterprises that employ ethnic minority workers are supported as follows:

||| + Vocational training according to the current regulations of the Prime Minister concerning support policies for primary level education and vocational training programs lasting less than three months for ethnic minority workers.

||| + Paying on behalf of the workers' contributions to health insurance, social insurance, and unemployment insurance for ethnic minority workers for a maximum period of five years from the date of signing the labor contract for each worker.

||| The State allocates budget and other resources to provide funding for maintaining, repairing, and operating production lines and equipment for national defense and security products during actual periods when production of such products is suspended according to decisions by competent authorities (Ministry of National Defense, Ministry of Public Security, or specialized agencies subordinate to these ministries) regarding the suspension period for each production line and equipment and the standards and norms for maintenance, repair, and operation of these facilities.

||| The State allocates budget and other resources to support welfare and incentive funds equivalent to two months' salary in cases where enterprises lack sufficient post-tax profit to establish such funds based on enterprise evaluation and post-tax profit distribution plans as stipulated by law.

||| The State allocates budget and other resources to support nursery and educational facility costs in areas without public school systems; medical care costs in places requiring the maintenance of clinics or nurseries due to special conditions, according to decisions by the Ministers of National Defense and Public Security as follows:

||| a) Support for nursery and educational facility costs in areas without public school systems that must be maintained according to decisions by the Ministers of National Defense and Public Security:

||| - Conditions for receiving support:

||| + Nursery and educational facilities (collectively referred to as early childhood education) under enterprise management in areas without public school systems and in areas deemed necessary must be approved by local state management agencies responsible for education and training; they must be established and maintained according to decisions by the Ministers of National Defense and Public Security.

||| - Content and level of financial support:

||| + Financial support for purchasing and repairing teaching equipment for early childhood education facilities at a cost of 50,000,000 VND per class per year.

||| + Financial support to ensure salaries, social insurance, health insurance, unemployment insurance, and other preferential policies for teachers and caregivers according to current state regulations.

||| b) Support for medical care costs in areas with special conditions or areas requiring the maintenance of clinics:

||| - Conditions for receiving support:

||| Clinics under enterprise management in areas with special conditions or areas deemed necessary are established and maintained according to decisions by the Ministers of National Defense and Public Security.

||| - Content and level of financial support:

||| + Financial support for purchasing and repairing medical equipment and medicines for outpatient and inpatient treatment up to 25% of the initial equipment standard for battalion-level military medical units, brigades, and equivalent units according to the medical equipment and professional uniform standards set out in Appendix 7 of Decree No. 76/2016/NĐ-CP dated July 1, 2016, issued by the Government regarding material standards for active-duty military personnel, defense workers, and civil servants.

||| + Financial support to ensure salaries, allowances according to rank, social insurance, health insurance, and unemployment insurance for healthcare staff according to current state regulations.

||| The provision of financial support to enterprises shall be carried out in accordance with the principle that if an enterprise and its employees benefit from multiple support policies covering the same content, they will only receive the highest policy; if an enterprise receives state budget funding for specific programs, projects, or tasks as mentioned above, it shall implement them according to the approved program, project, or task plan.

Article 4. Depreciation deduction for fixed assets specified in point e, Clause 1, Article 7 of Decree No. 16/2023/NĐ-CP

1. On the basis of the method of depreciation of fixed assets stipulated in Circular No. 45/2013/TT-BTC dated April 25, 2013 of the Ministry of Finance, the Ministry of National Defense and the Ministry of Public Security shall decide the framework period for depreciation of fixed assets which are production and repair lines for weapons, equipment, facilities, and other specialized and special-purpose assets serving national defense and security tasks of enterprises (outside the time frame determined according to the provisions of Circular No. 45/2013/TT-BTC).

2. Annually, the Ministry of National Defense and the Ministry of Public Security shall decide on assigning tasks to enterprises directly serving national defense and security; among which, specific rates of depreciation for the assets specified in Clause 1 of this Article shall be defined to inform the enterprises and relevant agencies.

3. For enterprises included in the list of core national defense and security industrial bases, the depreciation of fixed assets of such enterprises shall be carried out in accordance with the provisions of Decree No. 09/2025/NĐ-CP dated June 3, 2025 of the Government detailing certain articles of the Law on National Defense and Security Industry and Mobilization regarding financial resource management for national defense and security industry and the National Defense and Security Industry Fund.

Article 5. Preparation of budget estimates for state support funds

1. Annually, based on assigned tasks, enterprises eligible for policy benefits shall prepare detailed budget estimates for the following year according to the contents prescribed in Article 3 of this Circular and the State Budget Law, and submit them to higher-level units for review and consolidation, then report to the Ministry of National Defense and the Ministry of Public Security for consideration and decision, and consolidate within the state budget estimate, to be submitted to the Ministry of Finance before July 20 each year.

The Ministry of Finance shall consolidate the budget estimates for state support funds for enterprises directly serving national defense and security within the regular expenditure budget of the Ministry of National Defense and the Ministry of Public Security; report to the Government for submission to the National Assembly for decision in accordance with the State Budget Law.

2. Based on the approved annual regular expenditure budget, the Ministry of National Defense and the Ministry of Public Security shall implement the allocation of spending tasks and assign budgets in accordance with the State Budget Law.

Article 6. Settlement and finalization of expenses

1. At the end of the fiscal year, enterprises receiving expense support shall prepare financial reports in accordance with current regulations, including a report on the settlement of the use of state-supported funds to be consolidated in the finalization of the state budget expenditures of the Ministry of National Defense and the Ministry of Public Security. In cases where enterprises receive support from other sources during the year for expenses as prescribed in Article 3 of this Circular, enterprises shall have the responsibility to report to competent authorities to settle adjusted reductions in state-supported funds according to regulations.

2. The Ministry of National Defense and the Ministry of Public Security shall take the lead and coordinate with the Ministry of Finance to conduct periodic and spot checks on the use and settlement of state support funds in accordance with the established regulations of the state and this Circular.

3. Annually, the Ministry of National Defense and the Ministry of Public Security shall be responsible for reviewing and finalizing the state support funds provided to enterprises and consolidating them into the overall finalization of the Ministry of National Defense and the Ministry of Public Security in accordance with the State Budget Law.

4. Payment and disbursement of support expenses as stipulated in this Circular shall be carried out in accordance with the State Budget Law. Documentation, procedures, and formalities for payment and disbursement in transactions with the State Treasury shall be implemented in accordance with administrative procedures under the State Treasury domain.

Article 7. Effective Date

4. In cases where legal normative documents cited in this Circular are amended, supplemented, or replaced by other legal normative documents, the provisions of those amended, supplemented, or replacing documents shall apply.

2. This Circular replaces Circular No. 151/2016/TT-BTC dated October 17, 2016 of the Ministry of Finance guiding the operational mechanism for enterprises and workers at national defense and security enterprises as stipulated in Decree No. 93/2015/NĐ-CP dated October 15, 2015 of the Government on the organization, management, and operation of national defense and security enterprises.

3. The provisions set forth in Clause 4, Article 3 of Circular No. 02/2018/TT-BTC dated January 2, 2018 of the Ministry of Finance guiding the financial support mechanism for the National Defense Economic Zone shall cease to be effective after the transition period specified in Article 8 of this Circular.

4. The provisions set forth in point a, Clause 4, Article 3 regarding financial support for purchasing and repairing educational equipment for preschool education institutions shall continue to be implemented until the Government's Decree detailing Resolution No. 218/2025/QH15 dated June 26, 2025 of the National Assembly on universal preschool education for children aged 3 to 5 years, which provides for financial support for purchasing and repairing educational equipment for preschool education institutions, comes into effect.

Article 8. Transitional Provisions

1. Enterprises recognized or re-recognized as national defense and security enterprises in accordance with Decree No. 93/2015/NĐ-CP dated October 15, 2015 of the Government on the organization, management, and operation of national defense and security enterprises, and assigned tasks to build the National Defense-Economic Zone as stipulated in Clause 2, Article 36 of Decree No. 22/2021/NĐ-CP dated March 19, 2021 of the Government on the National Defense-Economic Zone, shall continue to implement the policies stipulated in Clause 4, Article 3 of Circular No. 02/2018/TT-BTC dated January 2, 2018 of the Ministry of Finance guiding the financial support mechanism for the National Defense Economic Zone until the end of three years from the date of the recognition or re-recognition decision for national defense and security enterprises.

2. An enterprise that has been recognized or re-recognized as a defense and security enterprise under Decree No. 47/2021/NĐ-CP dated April 1, 2021 of the Government detailing certain provisions of the Enterprise Law, which has been assigned the task of establishing a Defense-Economic Zone pursuant to Clause 2, Article 36 of Decree No. 22/2021/NĐ-CP dated March 19, 2021 of the Government on Defense-Economic Zones, shall continue to implement the policy provided for in Clause 4, Article 3 of Circular No. 02/2018/TT-BTC dated January 2, 2018 of the Ministry of Finance regarding the financial support mechanism for Defense-Economic Zones until the end of the five-year period from the date of the decision recognizing or re-recognizing the defense and security enterprise.

3. An enterprise that has been recognized or re-recognized as a defense and security enterprise under Decree No. 47/2021/NĐ-CP dated April 1, 2021 of the Government detailing certain provisions of the Enterprise Law shall implement the policy applicable to enterprises and workers directly serving defense and security as stipulated in this Circular until the end of the five-year period from the date of the decision recognizing or re-recognizing the defense and security enterprise.

4. In cases where legal normative documents cited in this Circular are amended, supplemented, or replaced by other legal normative documents, the provisions of the amended, supplemented, or replacing document shall apply.

5. Any difficulties encountered during implementation should be promptly reported to the Ministry of Finance for study, supplementation, and amendment.