Circular No. 28/2018/TT-BTC dated March 28, 2018 of the Ministry of Finance on guiding the estimation, management and use of industrial extension funds

CIRCULAR

Guiding the estimation, management and use of industrial extension funds

Pursuant to the June 25, 2015 Law on the State Budget;

Pursuant to the Government’s Decree No. 163/2016/ND-CP of December 21, 2016, detailing a number of articles of the Law on the State Budget;

Pursuant to the Government’s Decree No. 87/2017/ND-CP of July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Decree No. 45/2012/ND-CP of May 21, 2012, on industrial extension;

At the proposal of the Director of the Department of Non-Business Administrative Finance;

The Minister of Finance promulgates the circular guiding the estimation, management and use of industrial extension funds.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular guides the estimation, management and use of industrial extension funds under the Government’s Decree No. 45/2012/ND-CP of May 21, 2013, on industrial extension (below referred to as Decree No. 45/2012/ND-CP).

Article 2. Subjects of application

1. Organizations and individuals directly investing in industrial and cottage industry production in rural districts, towns, townships, communes and wards of grade-2 and grade-3 cities and wards of grade-1 cities which have been upgraded from communes within 5 years, including small- and medium-sized enterprises, cooperatives, cooperative groups and business households established and operating in accordance with law (below collectively referred to as rural industrial establishments).

2. Industrial production establishments applying cleaner production.

3. Domestic and foreign organizations and individuals engaged in the management and provision of industrial extension services.

Article 3. Funding sources for industrial extension activities

1. The central budget shall allocate funds for national industrial extension activities managed and organized by the Ministry of Industry and Trade.

2. Local budgets shall allocate funds for local industrial extension activities managed and organized by People’s Committees of provinces and centrally run cities (below referred to as provincial-level People’s Committees), district-level and commune-level People’s Committees.

3. In addition to the above funds, the Ministry of Industry and Trade and People’s Committees at all levels shall mobilize other lawful financial sources and integrate projects under the national target programs, target programs and other socio-economic development programs in order to achieve industrial extension objectives.

Article 4. Principles of use of industrial extension funds

1. National industrial extension funds cover expenses for industrial extension activities managed and organized by the Ministry of Industry and Trade, including promotion of development of rural industry on the regional or national scale; key national industrial extension schemes with spillover effects to promote the development of rural industry. Criteria for identifying industrial extension activities on the regional or national scale and key national industrial extension schemes shall be prescribed by the Minister of Industry and Trade.

Local industrial extension funds cover expenses for industrial extension activities managed and organized by People’s Committees at all levels, including promotion of development of rural industry of provincial significance and in line with provincial strategies and master plans.

2. Industrial extension schemes and tasks shall be implemented by the method of consideration and selection under regulations of the Ministry of Industry and Trade (for national industrial extension funds) or of People’s Committees at all levels (for local industrial extension funds) or through bidding under current regulations.

Article 5. Conditions for receiving industrial extension financial support

To be entitled to industrial extension financial support, an organization or individual must satisfy the following conditions:

1. Its/his/her tasks or scheme conform to Article 4 and its/his/her business line or sector conform to the list of business lines and sectors specified in Article 5 of Decree No. 45/2012/ND-CP.

2. Its/his/her tasks or scheme has been approved by a competent agency (the Ministry of Industry and Trade for national industrial extension; People’s Committees at all levels for local industrial extension).

3. It/he/she has invested capital or made a commitment to investing sufficient capital for implementation of its/his/her scheme approved by a competent authority (after subtracting the state budget’s financial support).

4. It/he/she has made a commitment to implementing or benefiting from an industrial extension scheme which has not yet received support from any funding source of the State for the same spending item eligible for industrial extension financial support.

5. Industrial extension service providers and other service providers that are experienced and capable for organizing industrial extension activities (except activities directly organized by state management agencies).

Chapter II

SPENDING CONTENTS AND LEVELS

Article 6. Contents of spending on industrial extension

1. Short-term job training, combining theoretical study with practical drills according to needs of rural industrial establishments, in order to create jobs and improve professional skills of laborers; training of skilled workmen and handicraft and cottage industry artisans in order to form a pool of trainers to serve programs on job training, improvement of professional skills and traditional job training in rural areas.

2. Support for counseling, training, retraining, seminars and forums; organization of domestic and overseas study tours and experience-learning visits in order to build the corporate governance capacity and capacity to apply cleaner production in agriculture; training in business startup; establishment of rural industrial production enterprises; expansion of domestic consumption and export markets for rural industrial products.

3. Support for the building of technical performance models in industrial, handicraft and cottage industrial production; building of pilot models of application of cleaner production; application of modern machinery and equipment and technological lines; transfer of technologies and scientific and technical advances in industrial and cottage industry production.

4. Organization of votes for selection of typical rural industrial products; organization of fairs and exhibitions of rural industrial goods and handicraft and fine art articles; support for rural industrial establishments to participate in fairs and exhibitions; support for the development and registration of brands; support for building of showrooms for product display and marketing (at industrial extension centers and rural industrial establishments) and other trade promotion activities.

5. Provision of counseling on formulation of investment and marketing projects; production, finance, accounting and human resource management; formation of production and business joint ventures and associations; designing of product models and packages; application of new technologies and equipment; provision of guidance and support for organizations and individuals to enjoy investment incentives, preferential policies on land, science and technology, finance-credit and other preferential policies of the State.

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