Circular No. 31/2013/TT-BTC dated March 18. 2013 of the Ministry of Finance guiding the financial management mechanism on national investment promotion program

THE MINISTRY OF FINANCE

Circular No. 31/2013/TT-BTC dated March 18. 2013 of the Ministry of Finance guiding the financial management mechanism on national investment promotion program

Pursuant to the Decree No. 60/2003/ND-CP dated June 06, 2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to the Decree No. 118/2008/ND-CP dated November 27, 2008 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Decision No. 26/2012/QD-TTg dated June 08, 2012 of the Prime Minister on issuing the regulations on building and performing the national investment promotion program;

At the proposal of the Manager of Enterprise and Finance Department;

The Ministry of Finance issues the Circular guiding the financial management mechanism on national investment promotion program as follows:

Section 1. GENERAL PROVISIONS

Article 1. Scope of adjustment

This Circular makes guidance on expenditure and financial management regimes applied to national investment promotion projects which are approved and performed in accordance with regulations in the Regulation on building and performing national investment promotion program issued with the Decision No. 26/2012/QD-TTg dated June 08, 2012 of the Prime Minister (hereafter called program).

Article 2. Objectives of application

1. Ministries, industries and People’s Committee’s provinces and municipal cities, Management board of economic zones, industrial zones, processing zones, high-tech zones that have national investment promotion scheme approved by authorized agencies shall take the prime responsibilities.

2. Units that take part in the program: agencies, enterprises, enterprise association.

Article 3. Financing resources for program performance

Financing resources for performing the national investment promotion program shall be allocated from the state budget for national investment promotion content ratified by the National Assembly yearly, other revenues or sponsor resources (if any).

Article 4.  Management principal on expenditure

1. The chair unit must use the state budget to the right purposes and efficiently in accordance with regulations on standards, current expenditure regime and expenditure level for the program’s contents in accordance with regulations in this Circular.

2. The chair unit shall be responsible for all decisions as well as accuracy, truthfulness of expenditure and other attached receipts basing on contract, receipts, actual expenditure in accordance with law for all contents that haven’t have any guidance regime.

3. For all expenditure must take bidding in accordance with regulations shall be applied to Law on Bidding and other guiding documents of Law on Bidding.

Section 1. REGULATIONS ON SUPPORT’S CONTENTS AND LIMITATION

Article 5. Expenditure contents and support’s limitation

Including all expenditure for contents of national investment promotion program prescribed in Article 3, Chapter 1 of the Regulation on building and performing national investment promotion program attached with the Decision No. 26/2012/QD-TTg dated June 08, 2012 of the Prime Minister, in particular:

1. To support 100% expenditure applied to contents prescribed at point a, b, c, clause 1, clause 2; point a, clause 3; point b, clause 4; point a and b, clause 5, Article 3 of Regulation on building and performing national investment promotion program, including:

a) Popularizing, broadcasting on Vietnam’s investment environment

- The expense for information, popularizing, broadcasting on Vietnam’s investment environment, Party and State’s guidelines and polices on investment in local and foreign public information stations; publishing documents in guiding investment, doing business and other relevant prints.

- The expense for ordering local and foreign communications agencies to write and make reports in newspaper, broadcast, television, electronic newspaper and films on investment environment in Vietnam with package contract.

- The expense for improving, remaining the operation of electronic newspaper that introduce Vietnam investment environment, connecting this electronic newspaper with electronic newspapers of Ministries, industries, localities in country and other prestige newspapers in the world.

b) Build directions, polices and strategies on investment promotion

- The building expenses on scheme that evaluating current situations in many industries, regions, economic zones to take them as the foundation to build and implement the investment promotion schemes.

- The building expenses for List of national major projects for calling domestic and foreign direct investments that are suitable with economic and social development plans and strategies in each period, economic – technical development planning; building detailed projects in national major projects, within that, support expenses as follows:

+ Expenses for holding workshops for collecting opinions: expenses for hiring meeting room, equipments, decoration, water, stationery;

+ Expenses for collecting and buying documents;

+ Expenses for exploring and investigating current situations;

+ Expense for translating documents;

+ Expense for consulting, designing, printing and building List or projects;

- Support expense for writing the scheme when having corporation with local and foreign organizations and individuals, writing the scheme to promote investment with strategic partners (nations or multi-national corporations)

c) Hold investment promotion mobilization program in major places in foreign countries in accordance with subjects and areas to attract foreign direct investment into Vietnam and promote Vietnam enterprise’s investments to foreign countries in some suitable sectors, and support following expenses:

- Business expenses for objectives taking participate in organizing or attending the program. For all investment promotion activities in remote regions from the center and requires to travel lot; if the expense is too big and the expense support in accordance with regulations is not enough to pay, it is possible to consider to support much more difference between real expenditure level and expenditure level in accordance with regulations on the travel schedules and real expenditure receipts.

- Expense for holding workshops and forums to call investment includes: expenses for hiring meeting room, equipments, printing, photos, translations, tea-break, party (if any); stationery;

- Expense for popularizing and introducing on holding investment promotion program in foreign public stations;

- Expense for hiring events agencies, document’s transportation; equipments; post matter and documents by post.

d)  To train officer of investment promotion directly under Ministries, industries, People’s Committees of provinces and municipal cities, management boards of economic zones, industrial zones, processing zones, high-tech zones by organizing the group to explore, study, exchange experiences with successful investment promotion organizations in the world, in particular:

- Business expenses for objectives in the group of exploration, study, experience exchange and investment promotion. Support 1 people/1 unit to participate in the group.

- Expenses for hiring meeting rooms, equipments, decoration, tea-break, printing and photocopy, stationery, hiring lecturers and presenters.

dd) Other activities:

- Support expenses in supplying information, promoting, popularizing and implementing projects with large scale and have great and important effects on economic – social development in regions, major economic regions, in particular:

+ The expense for performing, publishing and delivering leaflets and relevant documents to the project;

+ The expense for communications and document transportations;

+ The expense for promoting, popularizing on project by meeting and public stations

- To perform investment promotion in land including holding talks on polices, finishing legal scale, solving difficulties and problems of enterprises having investments in Vietnam;

2.To support at maximum 70% expense for contents prescribed in point b, clause 3, Article 3 of the Regulation in building and performing national investment promotion program in organizing workshops and conferences on local investment promotion in accordance with regions, industries and areas in order to attract investment in major industries, area and economic zones. For all units attending in the conference, workshop, only one person per unit shall be supported.

3. For point d, clause 1; point a, clause 4 and point c, clause 5 of Article 3 of Regulations in building and performing national investment promotion program, the expense support shall be as follows:

a) Organize or participate in domestic and overseas exhibition in order to introduce investment environment and investment results in Vietnam.

- Support 100% expense for exhibition organization including hiring places for national exhibition, expenses of electricity, water, decoration, design, necessary materials, printing and photocopy documents, document transportation, stationery, popularization for exhibition activities, hiring event company.

- Support 100% business expense for all objectives who are public employees of state managing agencies in the course.

- Support 70% business expense for all objectives receive salaries from state budget in the courses

c) For all the activities in support investors from countries having high potential technology resources to have specific regime for investors from these countries: Support at maximize 70% expense for Center’s operations in 1 year from the establishment year, including: expense for hiring office, buying necessary equipments, buying documents and stationeries.

4. For all other investment promotion activities in accordance with Prime Minister’s Decision, the support level shall be in accordance with Prime Minister’s decisions and other regulations in this Circular.

Article 6. Expenditure limits for program’s contents

State budgets that support expenses for national investment promotion projects are prescribed in Article 5 of this Circular and approved by authorized agencies in accordance with suitable real expenses but cannot exceed current limits on expenditure for state administrative agencies and public career units. In particular:

1. Pay expenses for meeting, workshop and work-trip allowance for all objectives that go on business in country in accordance with decisions of agencies approved the program and units taking prime responsibilities for all investment promotion works in accordance with the Circular No. 97/2010/TT-BTC dated July 06, 2010 of the Ministry of Finance on work-trip allowances and conference expenditures applicable to state agencies and public non-business units.

2. Pay expenses work-trip allowance for all objectives that go on business overseas to attend investment promotion programs in accordance with the Circular No. 102/2012/TT-BTC dated June 21, 2012 of the Ministry of Finance stipulating the regime of working-trip allowances for state officials and employees who travel abroad on short working missions funded by the state budget.

3. Pay expenses for reception of foreign guests, holding international seminars and conferences on investment promotion in accordance with the Circular No. 01/2010/TT-BTCdated January 6, 2010 of the Ministry of Finance regulating spending regimes for reception of foreign guests working in Vietnam, organization of international conferences and seminars in Vietnam and reception of domestic guests.

4. Pay expenses for training course for improving capacities and skills in investment promotion for state managing agencies and organizations operating in investment sector and enterprises in accordance with the Circular No. 139/2010/TT-BTCdated September 21, 2010 of the Ministry of Finance defining the formulation of estimate, management and use of funds from state budget for training and retraining cadres and civil servants.

6. Pay expenses for improving and remaining the electronic website on Vietnam investment environment, connecting this website with other websites of Ministries, localities in country and prestige websites in the world in accordance with the Circular No. 137/2007/TT-BTC dated November 28, 2007 of the Ministry of Finance guiding levels of expense for the creation of electronic information and the Joint Circular No. 19/2012/TTLT-BTC-BKHDT-BTTTT dated 15/02/2010 of the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Information and Communications guiding the management and use of expenses in performing National Program in Information Technology Application in state agency’s activities.

7. For all contents that have not have guidance, special expenses such as activities in information and popularization for domestic and oversea public information; publishing edits, books, documents, making films, advertisement, events and so on, it is necessary to offer competitive price or make bidding in accordance with regulations in the Law on Bidding and guiding documents for the Law on Bidding.

Article 7. For all investment promotions of People’s Committees of provinces and municipal cities,management board of economic zones, industrial zones, processing zones and high-tech zones.

People’s Committee of provinces, management board of economic zones, industrial zones, processing zones and high-tech zones shall perform investment promotion projects from local budget resources and other legal financial resources basing on guidance on contents and expense level prescribed in this Circular.

Section 3. REGULATIONS ON EXPENSE ESTIMATION, EXPENSE ALLOCATION AND ADVACE PAYMENT FOR PROGRAM

Article 8.  General construction and expense estimation and allocation

1. The Ministry of Planning and Investment collects demands and plans on expenses for supporting national investment promotion program’s performance and sends to the Ministry of Finance. The Ministry of Finance shall consider and collect to the annual budget plan and report to the Government and submit to the National Assembly for approval basing on state budget balance.

2. Basing on state budget estimation, the Ministry of Planning and Investment shall approve the program and expense allocation for detailed national investment promotion program for each unit that takes prime responsibilities in performing programs and contents prescribed in Article 5,6 of this Circular on the total support expense for project’s performance that cannot exceed approved estimation.

Article 9. Procedures for advance payment and account for support expense

1. Advance payment for expense

a) Basing on approved decision on annual national investment promotion program of the Minister of Planning and Investment within the informed state budget plan, unit that takes prime responsibilities shall send detailed estimations approved by program’s agency in charge or higher-level agency in charge, attached with dossier of expense advance payment to the Ministry of Finance (Enterprise Finance Department).

b) The dossier of expense advance payment shall include:

- Official gazette for expense advance payment;

- Decision for program approval by authorized agencies;

- Detailed estimation approved by authorized agencies;

- Progress and time of program in accordance with plan;

- Other relevant documents to program performance;

c) Level of expense advance payment

The maximum expense advance payment is 70% detailed estimation that is approved by authorized agencies and checked by the Ministry of Finance.

d) The time for checking advance payment: the Ministry of Finance shall check and allocate support expense so that the unit in charge can perform right to approve progress within 10 working days after receiving full dossier from the unit in charge.

2. Expense settlement

2.1 Expense settlement for each program

a) The unit in charge shall be responsible for collecting full receipts and make reports on settlement for the agency in charge or higher-level agency in charge for investigation and settlement approval and send to the Ministry of Finance (Enterprise Finance Department) for checking and considering to support fully expense or return all advance expense payment that exceeds approved amount within 30 working days after finishing the program.

b) The dossier for expense support includes:

- Request for expense support after settlement;

- Decision on expense approval by authorized agencies attached with dossiers and receipts of program performance;

- Reports on performance results;

- Other relevant documents to program’s performance.

c) Within 15 working days from the date of receiving valid dossier for expense support from the unit in charge, the Ministry of Finance shall be responsible for checking and make decisions in supporting expenses for the unit in charge or take expense back if the advance payment exceeds the settlement.

2.2 General annual settlement: To the den of December 31, the unit in charge shall be responsible for collecting support expense for all programs, make reports and sign to send to the Ministry of Finance and the Ministry of Planning and Investment at least before January 31 the next year so that the Ministry of Finance checks the general settlement for performed program and inform results to the unit in charge. In the case that the settlement time is after January 31 of the next year, the settlement shall be transferred and collected to the next year but cannot later than March 31 of the next year.

Article 10. Receipts, dossiers of the unit in charge

1. Receipt’s collection and store: The unit in charge shall be responsible for collecting all expense’s receipts right to content, time, place and other conditions prescribed in the Decision approving national investment promotion program of the Ministry of Planning and Investment.

The unit in charge shall store relevant original receipts to items of expense supported by the state in accordance with legal regulations.

2.  For all contents supported partly by the state, the unit in charge shall be responsible for calling all expense sources.

3. The unit in charge shall be responsible for accuracy and truthfulness of receipts and invoices. All violations in receipts and invoices shall be fined in accordance with legal regulations and refused to pay.

Article 11. Transfer of expense resources

Expenses for annual national investment promotion by the state budget that haven’t used up in year shall be supplement to the next year. The Ministry of Finance shall have written notice on this amount basing on General report and settlement of program performance in year from the Ministry of Planning and Investment.

Section 4. IMPLEMENTATION EFFECT

Article 12. Implementation effect

This Circular takes effect on May 05, 2013

Any arising problems in the course of implementation shall be reflected to the Ministry of Finance for promote solution.