Circular No. 29/2018/TT-BTC dated March 28, 2018 of the Ministry of Finance on guiding the estimation, management and use of the fund for the Program on development of supporting industries

CIRCULAR

Guiding the estimation, management and use of the fund for the Program on development of supporting industries

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

Pursuant to the Government's Decree No. 163/2016/ND-CP of December21, 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 July26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Decree No. 111/2015/ND-CP of November3, 2015, on development of supporting industries;

Pursuant to the Prime Minister’s Decision No. 10/2017/QD-TTg of April 3, 2017, promulgating the Regulation on management and implementation of the Program on development of supporting industries;

At the proposal of the Director of the Department of Administrative and Non-Business Finance,

The Minister of Finance promulgates the Circular guiding the estimation, management and use of the fund for the Program on development of supporting industries

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

1. This Circular guides the estimation, management and use of the fund for the Program on development of supporting industries in accordance with the Regulation on management and use of the Program on development of supporting industries issued together with the  Prime Minister’s Decision No. 10/2017/QD-TTg of April 3, 2017 (below referred to as the Program).

2. This Circular applies to the agency managing the Program, units in charge of implementing schemes under the Program (below referred to as implementing units) and organizations and individuals participating in carrying out activities of the Program.

Article 2.Subjects of application

To implement a scheme under the Program, a unit must fully satisfy the following conditions:

1. Being a state management agency in charge of supporting industry development or an organization assigned to implement a scheme under the Program.

2.Being able to mobilize various resources for organizing the implementation of schemes under the Program.

3. Having a strategy for development of a specific supporting industry or supporting industry products on a target market.

4.Clearly understanding the supporting industry development needs of support beneficiaries. 

5.Being experienced in and capable of organizing supporting industry development activities.

6. Implementing the Program to bring about benefits for the business community, not for profit-making purpose.

Article 3.Funding sources for the implementation of the Program

1. The fund for the implementation of the Program at the central level comes from the following sources:

a/ The central budget.

b/ Financial contributions from organizations and individuals at home and abroad.

c/ Other lawful funding sources.

2. The fund for the implementation of the Program at the local level comes from the following sources:

a/ The local budget.

b/ Financial contributions from organizations and individuals at home and abroad.

c/ Other lawful funding sources.

Article 4.Principles of use of the fund for supporting industry development

1. The fund for implementation of the Program at the central level shall be used for supporting industry development activities and tasks managed and organized by the Ministry of Industry and Trade aiming at developing supporting industries at regional and national levels with spillover effects to promote the development of supporting industries. Regional and national supporting industry activities shall be determined by the Minister of Industry and Trade.

2. The fund for implementation of the Program at the local level shall be used for supporting industry development activities managed and carried out by provincial-level People's Committees in their localities in conformity with local supporting industry development strategies and orientations aiming at developing supporting industries in their localities.

3. The fund for supporting industry development shall be used for proper purposes and according to regulations under the inspection and control of competent authorities; and expenses paid from the fund shall be finalized under current regulations.

Article 5.Conditions for receiving supports from the fund for supporting industry development

Organizations and individuals may receive supports from the Program when fully satisfying the following conditions:

1.The contents of their tasks and schemes conform with the contents specified in Clause 2, Article 10 of the Prime Minister’s Decision No. 10/2017/QD-TTg of April 3, 2017, promulgating the Regulation on management and implementation of the Program on development of supporting industries.

2.Their tasks and schemes are approved by a competent agency (the Ministry of Industry and Trade with regard to supporting industry development tasks and schemes at the central level; provincial-, district- and commune-level People's Committees with regard to supporting industry development tasks and schemes at the local level).

3. They have invested funds or committed to invest sufficient funds in the implementation of the schemes already approved by competent authorities (after subtracting the funding supports from the state budget).

4. Their commitment to implement the supporting industry scheme has not yet received any support from any funding sources of the State for the same content and the appraisal of the scheme-approving agency.

5. Within 2 years up to the time of submitting a dossier of request for support, they do not fall into one of the following cases: Having presided over a supporting industry development scheme which is assessed as “fail”; having handed over the product behind schedule without the consent of the Ministry of Industry and Trade; using the fund under a supporting industry development scheme in violation of current regulations.

Chapter II

EXPPENSES AND EXPENSE LEVELS

Article 6.Connection and support of supporting industry enterprises into product suppliers for domestic and foreign customers; promotion of foreign investment into the field of supporting industries

1. The maximum support level is 100% for expenses for the following tasks:

a/ Elaboration and promulgation of national technical regulations according to Joint Circular No. 145/2009/TTLT-BTC-BKHDT of July 17, 2009, of the Ministry of Finance and the Ministry of Science and Technology, guiding the management and use of funds for the elaboration of national standards and technical regulations.

b/ Assessment and certification of capability of supporting industry enterprises: study and formulation of assessment criteria. Workshop to announce assessment results.

Expense for assessment of capability of enterprises: The maximum support is VND 7 million per enterprise.

c/ Technical consultancy and assistance for supporting industry enterprises.

d/ Consultancy and assistance for enterprises investing in supporting industries.

dd/ Assessment and recognition of enterprises’ capability and size meeting international requirements: Study and formulation of assessment criteria. Workshop to announce assessment results.

Expense for assessment of capability of enterprises: The maximum support is VND 7 million per enterprise (in case of hiring domestic consultants).

In case of hiring foreign consultants, the support level shall be based on the expense for hiring foreign consultants approved by heads of competent agencies approving the Program or its schemes and tasks.

1. The maximum support level is 70% for expenses for the following tasks:

a/ Holding workshops to promote domestic and foreign investment in the field of supporting industries.

b/Organizing fairs to connect domestic supporting industries: renting venues and design and installation of stalls; services: electricity, water, cleaning, security and protection (if not yet included in the expense for renting venues and stalls); management expense of the fair organizers; general decoration of fairs; opening and closing ceremonies: invitation cards, reception, decoration, sound and lighting; holding workshops: renting venues and equipment; other expenses (if any).

The maximum support for this content is VND 12 million per participating unit. 

A fair specialized in supporting industries must have at least 200 standard stalls (3 m x 3 m) and 100 participating enterprises, if organized by a central organization; 150 standard stalls and 75 participating enterprises, if organized by a local organization.

b/ Organizing overseas fairs to connect supporting industries: renting venues and design and installation of stalls; general decoration of Vietnam’s zone (including the national stall, if any); holding the opening ceremony (if being an exclusive exhibition fair of Vietnam): invitation cards, reception, decoration, sound and lighting; holding workshops: renting venues and equipment, decoration, sound and lighting, interpretation, security, protocols, drinking water, documents and speakers; product presentation: renting venues, design and stage decoration, sound, lighting, equipment, presenters, masters of ceremony, interpreters; working mission allowances for organizers; other expenses (if any).

The maximum support for this content is VND 150 million per participating unit. 

An overseas fair connecting supporting industry may be organized or participated in if it has at least 7 standard stalls (3 m x 3 m) and 7 participating enterprises.

d/ Organizing investment transaction and promotion delegations overseas: 1 return airfare per participating unit; holding trade exchange workshops: renting venues and equipment, invitation cards, interpretation and documents; information, advertising and invitation of guests to the event; working trip allowances for organizers; other expenses (if any).

The maximum support for this content: VND 28 million per unit participating in trade transactions in Asia; VND 42 million per unit participating in trade transactions in Europe, Africa, Australia, North America and West Asia; and VND 70 million per unit participating in trade transactions in Central America and Latin America.

A trade transaction delegation to foreign countries may be organized when it is participated by at least 7 supporting industry enterprises.  

dd/ Support for enterprises to advertise and register trademarks of their supporting industry products, with the maximum support level of VND 50 million per trademark.

e/ Propagating and advertising supporting industry activities on print and online newspapers, radio and television, publications and other media of communication.