Decision No. 15/2012/QD-TTg dated March 6, 2012 of the Prime Minister on pilot application of a special financial mechanism to the Vietnam News Agency during 2012-2014

THE PRIME MINISTER

Decision No. 15/2012/QD-TTg of March 6, 2012, on pilot application of a special financial mechanism to the Vietnam News Agency during 2012-2014

Pursuant to December 16, 2002 Law No. 01/2002/QH11 on the State Budget;

Pursuant to November 29, 2005 Enterprise Law No. 60/2005/QH11;

Pursuant to June 3, 2008 Law No. 09/2008/QH12 on Management and Use of State Assets;

Pursuant to the Government’s Decree No. 60/2003/ND-CP of June 6, 2003, detailing and guiding the State Budget Law;

Pursuant to the Government’s Decree No. 142/2005/ND-CP of November 14, 2005, on collection of land and water surface rents;

Pursuant to the Government’s Decree No. 43/2006/ND-CP of April 25, 2006, providing the right to autonomy and accountability for task performance, organizational apparatus, state payroll and finance of public non-business units;

Pursuant to the Government’s Decree No. 52/2009/ND-CP of June 3, 2009, detailing and guiding a number of articles of the Law on Management and Use of State Assets;

Pursuant to the Government’s Decree No. 102/2010/ND-CP of October 1, 2010, guiding a number of articles of the 2005 State Enterprise Law;

At the proposal of the Minister of Finance,

The Prime Minister issues a decision on pilot application of a special financial mechanism to the Vietnam News Agency (VNA) during 2012-2014.

Article 1.

1. To apply on a pilot basis a special financial mechanism to the VNA during 2012-2014.

2. Objectives

a/ To encourage the VNA to step by step exercise the financial autonomy and take the initiative in utilizing assigned resources (state payroll, capital and assets), thereby diversifying activities and increasing revenues in order to contribute to well performing a state news agency’s tasks, improving quality, diversifying information products and improving the living standards of its officials and correspondents.

b/ To create favorable conditions for the VNA to renew its management mechanism, operational method and advanced physical and technical facilities so that it can develop into a powerful national communication group with diversified and plentiful types of information.

Article 2. Contents of the special financial mechanism to be applied on a pilot basis to the VNA

1. Operational types

The VNA is a unit which provides public services and may apply the mechanism of financial autonomy under the Government’s Decree No. 43/2006/ND-CP of April 25, 2006, providing for the right to autonomy and accountability for task performance, organization apparatus, state payroll and finance of public non-business units, the mechanism applicable to public non-business units with financial autonomy under the Government’s Decree No. 52/2009/ND-CP of June 3, 2009, detailing and guiding a number of articles of the Law on Management and Use of State Assets, and the special financial mechanism specified in this Decision.

2. Financial sources for the VNA’s operations

a/ The state budget:

- Funds for investment in capital construction: The State allocates annual capital for investment in capital construction for the VNA under plans and projects approved by competent authorities.

- Funds for regular operations: The state budget covers expenses for the VNA’s regular operations during three years (2012-2014) according to general regulations applicable to public non-business units.

b/ Revenues from its non-business operations.

c/ Other sources.

3. The salary and additional income fund

a/ The VNA may determine its salary and additional income fund with the maximum annual expenditure rate of 30% of estimated expenses for its regular operations (including the state budget estimates for annual regular operations and non-business revenue estimates).

b/ Within the framework of the salary and additional income fund allowed to be annually spent and based on the results of professional task performance, the VNA general director may regulate capital sources and agree on plans on payment of salaries and incomes for its attached units based on their assigned tasks’ performance.

c/ In case the salary and additional income fund is not spent up in a year, it will be carried forward for spending in the subsequent year.

4. Appropriation of funds

a/ The royalty fund: The VNA may appropriate the royalty fund under the Government’s Decree No. 61/2002/ND-CP of June 11, 2002, on the royalty regime. Sources for royalty payment are state budget allocations and the VNA’s non-business revenues. The VNA general director shall use the royalty fund to pay royalty to correspondents and editors and royalty remunerations for other VNA’s managerial officials participating in information production and provision.

b/ Other funds: In addition to the funds determined according to above regulations, the VNA may appropriate the non-business operation development fund, income stabilization fund, reward fund and welfare fund under the Government’s Decree No. 43/2006/ND-CP of April 25, 2006.

5. Management and use of assets

a/ For fixed assets serving its assigned political tasks, the VNA may apply the mechanism of management and use of state assets as provided.

b/ For a number of assets and physical facilities (assets built on land) which have not yet been fully utilized for its assigned political tasks, the VNA may lease them according to Article 43 of the Government’s Decree No. 52/2009/ND-CP so as to improve the utility effectiveness of state assets and seek additional revenues; and may account additional incomes provided at Point a, Clause 3, Article 2 of this Decision as lease expenses.

In the course of applying this pilot mechanism, land areas with assets for lease are eligible for land rent exemption.

6. Management of two attached enterprises

The VNA continues to act as the state owner representative at the Single-Member Limited Liability Commercial Printing Company and ITAXA Single-Member Limited Liability Company.

Article 3. Organization of implementation

1. The VNA shall elaborate its internal spending regulation. The distribution of incomes among its attached units is carried out in a public and democratic manner and under the promulgated regulation.

2. The VNA shall annually report the results of pilot application of the special financial mechanism to the Ministry of Finance. The Ministry of Finance shall supervise so as to ensure proper implementation of the mechanism. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the VNA in, reviewing and evaluating the implementation results in the third quarter of 2014, and then proposing to the Prime Minister a mechanism for the subsequent period.

Article 4. This Decision takes effect on April 20, 2012, and applies to the budget years of 2012, 2013 and 2014.

The VNA, the Ministry of Finance and related ministries and sectors shall implement this Decision.-

Prime Minister
NGUYEN TAN DUNG