Decision No. 10/2017/QD-TTg dated April 3, 2017 of the Prime Minister prescribing the regulation on management and implementation of the program on development of supporting industries

THE PRIME MINISTER

Decision No. 10/2017/QD-TTg datedApril 3, 2017 of the Prime Minister prescribing theregulation on management and implementation of the program on development of supporting industries

Pursuant to June 19, 2015 Law on Organization of the Government;

Pursuant to the Government’s Decree No. 111/2015/ND-CP of November 3, 2015, on development of supporting industries;

At the proposal of the Minister of Industry and Trade;

The Prime Minister promulgates the Decision promulgating the Regulation on management and implementation of the Program on development of supporting industries.

Article 1.To promulgate together with this Decision the Regulation on management and implementation of the Program on development of supporting industries.

Article 2.This Decision takes effect on May 25, 2017.

Article 3.Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and related organizations, units and individuals shall implement this Decision.–

The Prime Minister

Nguyen Xuan Phuc

REGULATION

ON MANAGEMENT AND IMPLEMENTATION OF THE PROGRAM ON DEVELOPMENT OF SUPPORTING INDUSTRIES
(Promulgated together with the Prime Minister’s Decision No. 10/2017/QD-TTg of April 3, 2017)

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation and subjects of application

1. This Regulation prescribes the management and implementation of the Program on development of supporting industries approved by the Prime Minister in each period (below referred to as the Program).

2. This Regulation applies to units responsible for implementing schemes under the Program (below referred to as responsible units), agencies managing the Program, beneficiaries of the Program and organizations and persons involved in supporting industry development activities.

Article 2.Responsible units

1. Responsible units are central and local state management agencies in charge of supporting industry development; and organizations assigned to implement schemes under the Program.

2. Responsible units may receive non-business funds and other funds to implement schemes and shall settle these funds in accordance with law.

3. Responsible units may sign contracts with organizations and individuals to perform work items under schemes.

Article 3.Funds for the Program implementation

1. Funds for the Program implementation at the central level shall come from the following sources:

a/ State budget funds that are allocated annually under plans;

b/ Funds and contributions from organizations and persons implementing supporting industry development activities;

c/ Funds and contributions from organizations and individuals at home and abroad;

d/ Other lawful funding sources as prescribed by law.

2. Funds for the Program implementation at the local level shall come from the following sources:

a/ State budget funds annually allocated to provincial-level People’s Committees;

b/ Funds and contributions from organizations and persons implementing supporting industry development activities;

c/ Funds and contributions from organizations and individuals at home and abroad;

d/ Other lawful funding sources as prescribed by law.

3. State budget funds shall be allocated for the Program according to the following principles:

a/ Funds for the Program implementation at the central level shall be incorporated in annual budget expenditure estimates of the Ministry of Industry and Trade in accordance with regulations;

b/ Funds for the Program implementation at the local level shall be incorporated in annual budgets of provincial-level People’s Committees.

Article 4.Management of funds of the Program

1. The Ministry of Industry and Trade shall plan and estimate funds for the Program implementation at the central level, incorporate them into its annual budget estimates and submit them to competent state agencies for approval in accordance with law.

The Minister of Industry and Trade shall approve the Program and annual funds for implementation of its schemes on the basis of approved budget expenditure estimates for the Program notified by the Ministry of Finance.

2. Plans and cost estimates for the Program implementation at the local level shall be elaborated and incorporated into local budget estimates by provincial-level People’s Committees for submission to competent agencies for approval in accordance with law.

3. State budget funds for the Program implementation shall be estimated, approved, allocated, used, accounted and settled according to a separate code in the state budget index.

4. The Ministry of Industry and Trade may sign contracts on implementation of schemes under the Program at the central level; and competent local agencies may sign contracts on implementation of schemes under the Program at the local level.

5. Within 30 days after schemes are accepted under contracts, units implementing these schemes shall complete financial settlement dossiers under regulations.

6. For assigned and contracted schemes, allocated budget funds which have not been used up shall be dealt with in accordance with the current law on the state budget.

Chapter II

CONTENTS AND LEVELS OF SUPPORT

Article 5.Connecting and assisting supporting industry enterprises to become product suppliers of domestic and foreign customers; promoting and attracting foreign investment in supporting industries

1. Main activities:

a/ To survey and assess demands, and develop standards and quality control regulations for supporting industry products;

b/ To assess and certify the capacity of supporting industry enterprises;

c/To provide technical consultancy and assistance for supporting industry enterprises;

d/ To provide consultancy and support for enterprises to invest in supporting industries;

dd/ To assess and recognize enterprises with capacity and size meeting international requirements;

e/ To connect Vietnamese supporting industry enterprises with domestic and overseas enterprises;

g/ To hold seminars to promote and attract domestic and foreign investment in supporting industries;

h/ To organize fairs and exhibitions to connect supporting industries;

i/To organize programs to promote and attract foreign direct investment in supporting industries;

k/ To support enterprises in advertising and registering supporting industry product brands;

l/ To assist supporting industry enterprises in seeking and developing domestic and foreign markets for their products;

m/ To disseminate information on supporting industries in the mass media.

2. A support level of maximum 100% shall apply to the activities prescribed at Points a, b, c, d and dd, Clause 1 of this Article; and a support level of maximum 70% shall apply to the activities prescribed at Points e, g, h, i, k, 1 and m, Clause 1 of this Article.

Article 6.Supporting enterprises to apply management systems that satisfy business administration and manufacturing administration requirements of global manufacturing chains

1. Main activities:

a/ To assess capacity and demand for application of manufacturing management standards and systems in enterprises;

b/ To develop training programs and organize training for enterprises;

c/ To assess and recognize business administration and manufacturing administration systems.

2. A support level of maximum 100% shall apply to the activities prescribed in Clause 1 of this Article.

Article 7.Supporting training to raise the quality of human resources to meet requirements of the manufacture of supporting industry products

1. Main activities:

a/ To study and assess human resources demands of supporting industry enterprises;

b/ To develop training programs to raise qualifications and skills for state management staff and managers and technicians of supporting industry enterprises;

c/ To organize training courses on policy, management, technology and trade for state management staff and managers and technicians of supporting industry enterprises;

d/ To hire, cooperate and align with foreign specialists to support the training of manufacturing managers and administrators, technicians and technologists, etc.

2. A support level of maximum 70% shall apply to the activities prescribed in Clause 1 of this Article.

Article 8.Supporting research and development, application, transfer and renovation of technologies in the experimental manufacture of components, spare parts and materials

1. Main activities:

a/ To develop and promulgate national technical regulations in the field of supporting industries;

b/ To develop and announce standards on raw materials, materials, components and spare parts; and national standards on raw materials, materials, components and spare parts in conformity with international standards;

c/ To introduce and disseminate a number of manufacturing technology processes and technical requirements on supporting industry products for supporting industry enterprises in Vietnam;

d/ To connect national and foreign experts to directly support domestic supporting industry enterprises;

dd/ To support research and application, experimental manufacture of supporting industry products, to prioritize technology development and transfer for supporting industry enterprises and research institutions;

e/ To support supporting industry enterprises in improving and renovating technology and experimentally manufacturing supporting industry products prioritized for development;

g/ To support enterprises in receiving advanced and state-of-the-art technologies, buying copyrights, patents and software; hiring foreign experts and training human resources;

h/ To support projects on research and experimental manufacture of supporting industry products prioritized for development. To partially fund researches that have been conducted by organizations or individuals with their own funds and brought about highly economic results in manufacturing activities;

i/To support the purchase of main manufacturing and testing equipment for manufacturing activities and laboratories of supporting industry development centers under the scheme approved by the Ministry of Industry and Trade;

k/ To support the development and improvement of criteria for assessing enterprises in terms of supporting industry technology and products;

l/ To carry out international cooperation in technology training, research and transfer.

2. A support level of maximum 50% shall apply to the activities prescribed at Points dd, e, g, h, k and m, Clause 1 of this Article; a support level of maximum 70% shall apply to the activities prescribed at Points d and 1, Clause 1 of this Article; and a support level of maximum 100% shall apply to the activities prescribed at Points a, b, c and i, Clause 1 of this Article.

Article 9.Developing and annually disclosing information on supporting industries

1. Main activities:

a/ To survey, build and update databases on enterprises manufacturing finished products and supporting industry products in textile and garment, footwear, electronics, auto manufacture and assembly, manufacture engineering (including key engineering products) and hi-tech industries;

b/ To buy databases for common use by supporting industries (for databases that are unavailable in Vietnam or are available but unreliable);

c/ To provide information on supply and demand of the markets of supporting industry products and policies on supporting industries;

d/ To organize annual workshops to disclose information on national supporting industry production capacity;

dd/ To publish publications on supporting industries;

e/ To operate the supporting industry website.

2. A support level of maximum 100% shall apply to the activities prescribed in this Article.

Chapter III

DEVELOPMENT AND IMPLEMENTATION OF SCHEMES UNDER THE PROGRAM

Article 10.Development of schemes

1. A responsible unit shall develop a scheme with the following contents:

a/ Description of the responsible unit’s experience, capacity and capability for implementation;

b/ Necessity and relevance of the scheme; c/ Detailed activities;

d/ Detailed cost estimates (covering proposed support levels from the Program’s funds and own funds (if any));

dd/ Implementation schedule;

e/ Expected results and products;

g/ Assessment of the scheme’s benefits and impacts.

2. A scheme must meet the following requirements:

a/ To meet the practical requirements for supporting industry development;

b/ To be in line with approved supporting industry development orientations;

c/ To be in line with government-approved development strategies and master plans for economic regions, sectors and localities;

d/ To be feasible in terms of implementation method, time and schedule, human resources, funding and physical and technical foundations;

dd/ For schemes to be implemented over more than 1 fiscal year, the responsible unit shall plan contents and funds by year.

Article 11.Receipt and assessment of schemes

1. Schemes in need of central budget funds shall be submitted to the Ministry of Industry and Trade before March 31 of the year preceding the planning year.

The Ministry of Industry and Trade’s unit in charge of state management of supporting industries shall assess contents of schemes against scheme selection requirements and criteria and send the selected schemes to the Appraisal Council.

2. For schemes in need of local budget funds, competent local agencies shall receive these schemes after guiding responsible units in submitting them; assess their contents against scheme selection requirements and criteria and send them to appraisal councils established by local authorities.

Article 12.Appraisal and approval of schemes

1. The Minister of Industry and Trade shall establish the Appraisal Council for schemes under the Program (below referred to as the Appraisal Council) with the chairperson being a leader of the Ministry and members being representatives of the Ministry and related ministries, sectors and organizations. In the course of appraising schemes developed by responsible units, the Appraisal Council may consult specialists.

The Ministry of Industry and Trade shall guide the preparation, receipt and preliminary assessment of schemes; sum up and send them to the Appraisal Council for appraisal; and approve schemes on the basis of appraisal results of the Appraisal Council.

2. Provincial-level People’s Committees shall establish Appraisal Councils for appraisal, assessment and approval of locally funded schemes under the Program.

Provincial-level People’s Committees shall guide the preparation, receipt and preliminary assessment of schemes; sum up and send them to Appraisal Councils for appraisal; and approve schemes on the basis of appraisal results of Appraisal Councils.

Article 13.Adjustment and termination of implementation of schemes

1. A responsible unit which adjusts or modifies contents or terminates the implementation of an approved scheme shall send a document clearly stating the reason and the adjustment plan to a competent agency for consideration and decision.

2. The Ministry of Industry and Trade or a competent local agency shall consider and decide on the termination of implementation of a scheme which the responsible unit has failed to implement according to its approved objectives, contents and schedule or of a scheme the contents of which are no longer appropriate.

3. After the issuance of a decision adjusting or terminating the implementation of a scheme, the competent agency shall transfer unused funds (if any) to related agencies and units for management and use in accordance with the law on management and use of budget funds.

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 14.Responsibilities of the Ministry of Industry and Trade

The Ministry of Industry and Trade, which is assigned by the Government to manage the Program, shall perform the following tasks:

1. To assume the prime responsibility for, and coordinate with other related ministries, sectors, localities and commodity associations in, setting orientations for supporting industry development.

2. To guide the preparation of, and receive, appraise, approve and sign with responsible units to implement, schemes in accordance with this Regulation.

3. To approve lists of schemes under the Program and supervise and examine the implementation of these schemes.

4. To organize pre-acceptance tests of implementation results of schemes under the Program and assess the conformity of these results with the objectives of each scheme and with the Program’s goals.

5. To sum up and prepare cost estimates for the Program implementation and incorporate them into its budget estimates for sending to the Ministry of Planning and Investment and Ministry of Finance for consideration and allocation of funds and submission to competent authorities for decision under the Law on the State Budget.

6. To manage non-business funds allocated from the state budget for the Program implementation.

7. To annually review and assess the results of the Program implementation and report them to the Prime Minister.

8. To develop and improve legal documents and guide localities and related organizations, individuals and units in implementing the Program.

9. To cooperate with organizations and individuals at home and abroad in attracting funds and resources to serve the development of supporting industries.

10. To perform other state management functions specified in Article 14 of the Government’s Decree No. 111/2015/ND-CP of November 3, 2015, on development of supporting industries.

Article 15.Responsibilities of ministries and sectors

1. The Ministry of Planning and Investment

a/ To assume the prime responsibility for allocating investment development funds in accordance with the Law on the State Budget for implementing the Program developed by the Ministry of Industry and Trade;

b/ To coordinate with the Ministry of Industry and Trade in guiding, examining and supervising the implementation of investment projects to build supporting industry development centers.

2. The Ministry of Finance

a/ To assume the prime responsibility for allocating non-business funds for supporting industry development activities in accordance with the Law on the State Budget;

b/ To formulate and promulgate documents guiding the preparation, management and use of funds for the Program at the proposal of the Ministry of Industry and Trade;

c/ To issue a separate code for funds for the Program implementation in the state budget index;

d/ To coordinate with the Ministry of Industry and Trade in guiding, inspecting and supervising the Program implementation.

Article 16.Responsibilities of provincial-level People’s Committees

To perform the state management of the Program within their localities, specifically:

1. To prepare, receive, appraise, approve, and organize the implementation of, the Program in their localities annually and in each period.

2. To decide on the form and level of support of funds for the Program implementation in their localities for the activities prescribed in this Decision.

3. To ensure local budget funds for the Program implementation in their localities in accordance with this Decision.

4. To develop and send to the Ministry of Industry and Trade for sum-up centrally funded schemes under the Program.

5. To organize examination and inspection, and settle complaints and denunciations in the Program implementation in their localities.

6. To actively attract non-budget funds of their localities for the Program implementation.

7. To monitor, assess and annually report to the Ministry of Industry and Trade on the Program implementation in their localities.

Article 17.Responsibilities of responsible units

1. To organize the implementation of approved schemes according to the objectives, contents, schedules and cost estimates under signed contracts; to ensure efficient and effective use of funds and take responsibility for expenditures according tocurrentfinancial regulations.

2. To report on the implementation of centrally funded schemes to the Ministry of Industry and Trade before December 1 every year.

3. To report on the implementation of locally funded schemes to competent local agencies for sum-up and reporting to the Ministry of Industry and Trade before December 1 every year.

4. To provide sufficient documents and accurate information on the implementation of schemes and facilitate examination and supervision activities in accordance with regulations.

Article 18.Organization of examination and implementation of the Program

1. The Ministry of Industry and Trade shall coordinate with the Ministry of Finance and Ministry of Planning and Investment in periodically and irregularlyexamining and assessing the performance of tasks and objectives of schemes to ensure proper, efficient and effective management and use of funds for the Program.

2. The unit in charge of state management of supporting industries shall not receive schemes in the following year from responsible units that have violated Clauses 1,2 and 3, Article 17 of this Regulation.

3. Ministers, heads of ministerial-level agencies and government-attached agencies, chairpersons of provincial-level People’s Committees and heads of related agencies shall, within the ambit of their functions and tasks, specifically guide and examine the implementation of this Decision.

4. Depending on the severity of their violations, violators of this Regulation be handled in accordance with current law.-