Decision No. 2011/QD-TTg dated November 5, 2010 of the Prime Minister on the pilot provision of export credit insurance

THE PRIME MINISTER

Decision No. 2011/QD-TTg of November 5, 2010, on the pilot provision of export credit insurance

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the December 9, 2000 Law on Insurance Business;

At the proposal of the Minister of Finance in Report No. 89/TTr-BTC of July 12, 2010, and Official Letter No. 14306/BTC-QLBH of October 25, 2010, on the pilot provision of export credit insurance,

DECIDES:

Article 1. To provide export credit insurance on a pilot basis during 2011-2013 with the following principal contents:

1. To prevent and reduce export credit risks, contributing to assuring financial security and boosting export.

2. Export credit insurance participants are traders that export goods of the commodity groups specified in the Appendix to this Decision.

3. Export credit insurance covers commercial and political risks specified by the Ministry of Finance.

4. The insurance product is short-term export credit insurance.

5. By the end of 2013, at most 3% of export turnover will be covered by export credit insurance.

6. Bases for calculation of export credit insurance premiums include the (estimated) degree of risk and loss, management costs and other costs related to the insured risk.

7. The Ministry of Finance shall specify criteria for insurance companies to register for the pilot provision of export credit insurance.

8. The state budget will support the pilot provision of export credit insurance under the Finance Ministry’s regulations. Annual budget supports will be incorporated in the funds for the national trade, investment and tourism promotion program.

Article 2. Organization of implementation

1. The Ministry of Finance shall:

a/ Guide and direct the pilot provision of export credit insurance; identify insurance enterprises to provide export credit insurance on a pilot basis; direct the Insurance Management and Supervision Department to manage, supervise and evaluate the pilot provision of credit export insurance under this Decision;

b/ Determine the levels of state budget support for the pilot provision of export credit insurance; coordinate with the Ministry of Planning and Investment in annually allocating state budget funds for the pilot provision of credit export insurance under Clause 8, Article 1 of this Decision;

c/ Guide the management and use of state budget support; specify the contents and levels of support for the pilot provision of credit export insurance and examine and supervise the use of state budget support;

d/ Coordinate with the Ministry of Information and Communications; the Ministry of Industry and Trade; the State Bank of Vietnam, the Association of Vietnamese Insurers, trade associations and insurance companies selected to provide credit export insurance on a pilot basis in disseminating and raising exporters’ awareness about and encouraging them to participate in credit export insurance;

e/ Annually, report to the Prime Minister on results of the pilot provision of credit export insurance. At the end of the pilot period, review and evaluate results of the pilot provision of export credit insurance and propose solutions for the development of export credit insurance in the subsequent period for reporting to the Prime Minister.

2. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, allocating state budget funds in support of pilot provision of export credit insurance under Clause 8, Article 1 of this Decision.

3. The Ministry of Industry and Trade shall assume the prime responsibility for and coordinate with the Ministries of Finance and other relevant ministries in:

a/ Encouraging exporters to actively participate in export credit insurance;

b/ Providing guidance on the pilot provision of export credit insurance regarding subjects, goods items and markets encouraged for export; regularly provide information on countries of importation, imports and importers and on risks in major export markets;

c/ Directing overseas commercial representations to coordinate with insurance companies selected to carry out the pilot provision of export credit insurance in recovering debts and handling related matters.

4. The State Bank of Vietnam shall direct the Credit Information Center to sign agreements on the provision on information relating to the performance of export credit insurance operations with insurance companies selected to provide export credit insurance on a pilot basis; direct credit institutions to provide insurance companies selected to provide export credit insurance on a pilot basis with lists of exporters borrowing bank loans to serve public information on benefits brought about by export credit insurance.

5. Provincial-level People’s Committees shall direct and encourage exporters in their localities to participate in export credit insurance.

6. Selected insurance companies shall provide export credit insurance on a pilot basis and report its results according to regulations.

Article 3. This Decision takes effect on the date of its signing and applies from the 2011 budgetary year.

Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decision.

Prime Minister
NGUYEN TAN DUNG

Appendix

List of commodity groups encouraged for participation in export credit insurance

(To the Prime Minister’s Decision No. 2011/QD-TTg of November 5, 2010)

I. Group 1, including the following 9 commodity groups:

1. Aquatic products

2. Rice

3. Coffee

4. Vegetables and fruits

5. Rubber

6. Pepper

7. Cashew nut

8. Tea

9. Cassava and cassava products.

II. Group 2, including the following 14 commodity groups:

1. Textiles and garments

2. Footwear

3. Electronic devices and computer components

4. Ceramics and porcelain

5. Glass

6. Rattan, bamboo and sedge products and carpets

7. Wood products

8. Plastic products

9. Electric wires and cables

10. Bicycles and parts

11. Handbags, suitcases, hats and umbrellas

12. Iron and steel products

13. Machinery and equipment

14. Vehicles.-