Decision No. 49/2018/QD-TTg organization and operation charter of VTDF

Decision

Establishing, and approving the organization and operation charter of the Vietnam Tourism Development Fund[1]

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

Pursuant to the June 19, 2017 Tourism Law;

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

Pursuant to the November 26, 2014 Law on Enterprises;

Pursuant to the Government’s Decree No. 168/2017/ND-CP of December 31, 2017, detailing a number of articles of the Law on Tourism;

At the proposal of the Minister of Culture, Sports and Tourism;

The Prime Minister promulgates the Decision establishing, and approving the organization and operation charter of the Vietnam Tourism Development Fund.

Article 1.To establish the Vietnam Tourism Development Fund

To establish the Vietnam Tourism Development Fund (below referred to as the Fund) under the Ministry of Culture, Sports and Tourism.

Article 2.Organization and operation charter of the Fund

To approve and promulgate together with this Decision the organization and operation charter of the Fund.

Article 3.Transitional provisions

1. The national tourism promotion program approved under the Prime Minister’s Decision No. 2151/QD-TTg of November 11, 2013, and the national action program on tourism approved under the Prime Minister’s Decision No. 321/QD-TTg of February 18, 2013, shall continue to be implemented until legal documents on the organization, apparatus, financial mechanism and accounting regime of the Fund are issued by competent authorities and charter capital and operating funds of the Fund in the first year are allocated from the state budget.

2. After the national tourism promotion program and national action program on tourism finish, the Fund shall allocate funds for further implementation of tasks under these two programs which have been approved by competent authorities and are being implemented.

3. In case funds of the national tourism promotion program and national action program on tourism are not used up, the remainder shall be forwarded to the Fund for performance its tasks according to regulations and included into its operating funds in the first year to be allocated from the state budget.

Article 4.Implementation provisions

1. This Decision takes effect on February 1, 2019.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, provincial-level People’s Committee chairpersons, and related organizations and individuals shall implement this Decision.-

Prime Minister
NGUYEN XUAN PHUC

CHARTER

Of organization and operation of the Vietnam Tourism Development Fund

(Promulgated together with the Prime Minister’s Decision No. 49/2018/QD-TTg of December 12, 2018)

Chapter I

GENERAL PROVISIONS

Article 1.Legal position and legal status of the Vietnam Tourism Development Fund

1. The Vietnam Tourism Development Fund (below referred to as the Fund) is a state-run off-budget financial fund operating after the model of single-member limited liability company with 100% of charter capital held by the State and having the Ministry of Culture, Sports and Tourism acting as the representative of the owner.

2. The Fund is a dependent cost-accounting unit, has the legal person status, charter capital, and its own financial statements and seal; may open accounts at the State Treasury and commercial banks operating lawfully in Vietnam.

3. The Fund’s transaction name in English is Vietnam Tourism Development Fund, abbreviated as VTDF.

4. The head office of the Fund is located in Hanoi.

Article 2.Functions and tasks of the Fund

1. To formulate plans and arrange funds for organization of tourism promotion activities and provision of support for tourism development activities in accordance with the Tourism Law and in conformity with Vietnam’s tourism development strategy and master plan.

2. To manage and use funds allocated from the state budget, donations and voluntary contributions by enterprises, organizations and individuals at home and abroad, and funds from other lawful sources for organization of operation of the Fund.

3. To examine, oversee and evaluate the performance of tasks entitled to allocation of funds from the Fund.

4. To comply with regimes on reporting, financial management, accounting, audit and other relevant regulations on operation of the Fund.

5. To be submitted to the inspection, examination and audit by competent state management agencies in accordance with law.

6. Other tasks in accordance with law.

Chapter II

ORGANIZATIONAL APPARATUS OF THE FUND

Article 3.Organizational structure

The organizational structure of the Fund consists of:

1. The Fund Chairman.

2. The Fund Director and assisting apparatus.

3. The supervisor.

Article 4.The Fund Chairman

1. The Fund Chairman is the direct representative of the owner at the Fund; the term of office of the Fund Chairman, who shall work on a full-time basis, is 5 years. The Fund Chairman may not concurrently work as a cadre or public employee at a state agency, political organization or socio-political organization.

2. The Prime Minister shall authorize the Minister of Culture, Sports and Tourism to appoint the Fund Chairman.

3. Criteria and conditions for appointment as the Fund Chairman

a/ Being a Vietnamese citizen permanently residing in Vietnam;

b/ Having full civil act capacity and being physically fit to perform tasks;

c/ Possessing a bachelor’s or higher degree;

d/ Having at least 5 years’ experience in management and administration in finance, banking, law, economics or tourism;

dd/ Not being the spouse, natural parent, adoptive parent, natural child, adopted child, sibling, brother-in-law or sister-in-law of the Minister or a Deputy Minister of Culture, Sports and Tourism; the supervisor; or the Director, Deputy Director or chief accountant of the Fund.

4. Tasks and powers of the Fund Chairman

a/ To decide on operation plans and financial plans of the Fund after obtaining opinions of the Minister of Culture, Sports and Tourism;

b/ To propose the Ministry of Culture, Sports and Tourism to approve financial statements after obtaining appraisal opinions of the supervisor;

c/ To decide on the plan on operation, organizational apparatus and payroll of the Fund in accordance with this Charter and relevant laws after obtaining in-principle approval of the Minister of Culture, Sports and Tourism;

d/ To issue the operation regulation, internal spending regulation, regulation on receipt of donations and contributions; and other internal management regulations of the Fund;

dd/ To appoint, relieve from duty, sign and terminate contracts with, and implement reward and discipline policies towards, the Deputy Director, chief account and holders of other titles of the Fund at the request of the Fund Director;

e/ To decide or authorize the Fund Director to decide on plans on mobilization of donations and lawful voluntary contributions by enterprises, organizations and individuals at home and abroad; investment in, building, sale and purchase and lease of fixed assets; and on other activities according to his/her competence as prescribed in this Regulation and relevant laws;

g/ To exercise other powers and discharge other responsibilities in response to management requirements of the Ministry of Culture, Sports and Tourism in conformity with the Fund’s functions and tasks;

h/ To be held responsible before the Minister of Culture, Sports and Tourism and law for the performance of tasks and exercise of powers assigned or authorized to him/her.

Article 5.The Fund Director and assisting apparatus

1. The Fund Director is the at-law representative of the Fund, who is appointed by the Minister of Culture, Sports and Tourism; the term of office of the Fund Director, who shall work on a full-time basis, is 5 years. The Fund Director may not concurrently work as a cadre or public employee at a state agency, political organization or socio-political organization.

2. Criteria and conditions for appointment as the Fund Director

a/ Meeting the criteria and conditions prescribed at Points a, b, c and d, Clause 3, Article 4 of this Charter;

b/ Not being the spouse, natural parent, adoptive parent, natural child, adopted child, sibling, brother-in-law or sister-in-law of the Minister or a Deputy Minister of Culture, Sports and Tourism; the Fund Chairman, supervisor; Deputy Director or chief accountant of the Fund.

3. Powers and responsibilities of the Fund Director

a/ To administer operations of the Fund; to perform tasks and report performance results under decisions of the Fund Chairman and Minister of Culture, Sports and Tourism;

b/ To submit to the Fund Chairman for decision operation plans, financial plans and financial statements of the Fund in accordance with this Charter; to organize the implementation of these plans after they are approved;

c/ To submit to the Fund Chairman for decision the operation regulation, internal spending regulation, regulation on receipt of donations and contributions, and other internal management regulations of the Fund; to issue internal governance  documents according to his/her competence and other regulations concerning the operations of the Fund in accordance with this Charter;

d/ To submit to the Fund Chairman for decision plans on operation; payroll, and organizational structure of the Fund’s managerial apparatus and on the appointment, relief from duty, reward and discipline of holders of managerial titles at the Fund in accordance with this Charter;

dd/ To employ laborers and appoint managers according to his/her competence;

e/ To exercise other powers and perform other tasks as assigned or authorized or required by the Fund Chairman or Minister of Culture, Sports and Tourism in conformity with the Fund’s functions and tasks;

g/ To be held responsible before the Fund Chairman and law for the performance of tasks and exercise of powers as assigned or authorized.

4. The assisting apparatus consists of a deputy director, chief accountant and a professional section.

a/ The Deputy Director of the Fund shall assist the Fund Director in administering the Fund as assigned and authorized by the Fund Director; be held responsible before the Director and law for his/her assigned or authorized tasks;

b/ The chief accountant shall organize accounting work in conformity with the law on accounting, assist the Fund Director in supervising financial operations of Fund in accordance with the laws on finance and accounting; be held responsible before the Fund Director and Fund Chairman and law for the performance of tasks and exercise of powers assigned or authorized to him/her;

c/ The professional section shall be decided by the Fund Chairman.

Article 6.Supervisor

1. The supervisor shall be appointed by the Minister of Culture, Sports and Tourism to assist him/her in controlling the organization and implementation of management and governance activities by the Fund Chairman, and Director and other related works. The term of office of the supervisor, who shall work on a full-time basis, is 5 years. The supervisor may not concurrently work as cadre or public employee at a state agency, political organization or socio-political organization.

2. Criteria and conditions for appointment as the supervisor

a/ Meeting the criteria and conditions prescribed at Points a, b, and c, Clause 3, Article 4 of this Charter;

b/ Having at least 3 years’ experience in management and administration work in finance, banking, law, economics or tourism;

b/ Not being the spouse, natural parent, adoptive parent, natural child, adopted child, sibling, brother-in-law or sister-in-law of the Minister or a Deputy Minister of Culture, Sports and Tourism; the Fund Chairman, Director, Deputy Director or chief accountant of the Fund.

3. The working regime, responsibilities, powers and appointment of the supervisor, the relations between the supervisor and other related organizations and individuals and other issues must comply with the regulation on operation of the supervisorissued by the Minister of Culture, Sports and Tourism and conform with this Charter and other relevant laws.

Chapter III

FINANCIAL, ACCOUNTING, AUDIT AND REPORTING REGIMES

Article 7.General financial management principles

1. The Fund shall operate after the model of, and implement the financial mechanism applicable to, single-member limited liability companies with 100% of charter capital held by the State, operating not-for-profit purposes, conserving charter capital and covering management expenses by itself.

2. The Fund is exempt from tax and other payables to the state budget in accordance with law.

3. The Fund shall implement the financial management mechanism and accounting and statistics regimes in accordance with current laws and this Charter.

4. To ensure publicity, transparency, thrifty, effectiveness, compliance with set purposes and conformity with law.

5. The balance of funds of the Fund of a year may be carried forward to the subsequent year for further use.

6. The Fund shall submit to the examination, inspection and audit by agencies performing state management of finance and the State Audit Office of Vietnam regarding its financial operations.

7. Financial matters not yet specified in this Charter must comply with regulations currently applicable to enterprises.

Article 8.Charter capital and revenue sources of the Fund

1. The charter capital of the Fund is VND 300,000,000,000 (three hundred billion) and shall be allocated from the central budget in 3 years after its establishment. Capital shall be allocated after legal documents on the organization and apparatus of, and accounting regime applicable to the Fund are issued by competent authorities.

2. Annual operating funds of the Fund shall be allocated from the central budget, equaling 10% of total budget revenues from collection of fee for grant of visas and immigration papers to foreigners entering or leaving Vietnam and 5% of total budget revenues from collection of entrance fee.

3. Interests on the Fund’s deposits at banks.

3. Donations and lawful and voluntary contributions by enterprises, organizations and individuals at home and abroad to the Fund.

5. Deductions of the difference between annual revenues and expenditures.

6. Other lawful revenue sources in accordance with law.

Article 9.Management and use of charter capital and operating funds of the Fund

1. The Fund shall comply with regulations on use of operating funds, specifically:

a/ Managing and using funds properly and efficiently. Operating funds allocated from the state budget may be used only for performance of tourism promotion and advertising and tourism development support tasks. Funds from other sources (including also interests on bank deposits) shall be used to cover expenses for operation of the Fund’s apparatus and accounted as difference between revenues and expenditures and serve as a basis for deduction for setting up assorted funds;

b/ Making deductions and fully accounting them as operating expenses of the Fund in accordance with Article 11 of this Charter;

c/ Complying with regulations on subjects of, conditions for, and methods for implementing, tourism promotion and advertising activities and other supports for tourism development activities according to regulations;

d/ Not using operating funds for currency trading, securities investment, real estate trading, financial investment (except deposit of charter capital and idle capital at commercial banks), and other unlicensed business activities;

dd/ Neither raising operating funds in the form of receiving deposits from organizations and individuals nor issuing promissory notes, treasury bills and commercial bills to domestic and overseas organizations and individuals;

e/ Purchasing asset insurance and other insurance in accordance with law.

2. Conservation of charter capital

a/ The charter capital of the Fund must be conserved. The Fund Chairman is responsible for conservation of the Fund’s charter capital. The conservation of charter capital allocated from the central budget must be displayed in the financial statement on December 31 of the reporting year;

b/ Charter capital shall be conserved by the following methods: managing and using charter capital according to the Fund’s operation regulation; deducting contingencies and risk provisions; complying with financial management regulations applicable to single-member limited liability companies with 100% of charter capital held by the State;

c/ The Fund Chairman shall report all increases and decreases of charter capital to the Ministry of Culture, Sports and Tourism and the Ministry of Finance for monitoring; comply with regulations on management and use of capital and assets; distribution of profits and other financial management regimes and accounting regimes in accordance with law and this Charter; and other measures for conserving state capital at the enterprise in accordance with law.

3. Charter capital and idle capital of the Fund may be deposited as savings at credit institutions on the list of credit institutions approved by the Minister of Culture, Sports and Tourism in each period, adhering to the principle of capital conservation and development. The Fund Chairman shall issue a regulation on management of charter capital and idle funds deposited at commercial banks for implementation.

4. After 5 years of operation, the Ministry of Culture, Sports and Tourism shall evaluate the situation and effectiveness of operation of the Fund for reporting to the Prime Minister for consideration, including addition of annual operating funds to the Fund, after reaching agreement with the Ministry of Finance, ensuring conformity with the use of the Fund’s capital in reality; and at the same time, adopt plans to mobilize donations and lawful voluntary contributions by enterprises, organizations and individuals at home and abroad and other lawful revenue sources in accordance with law, striving for the target that the Fund itself may balance and ensure funds for performance of tourism development support tasks and its operation.

Article 10.Management of assets

1. The Fund shall formulate a Regulation on management of procurement and management of fixed assets and submit it to the Fund Chairman for approval in accordance with its organization and operation charter and relevant laws. The regulation must clearly clarify the coordination among different managerial sections of the Fund and specify each section’s and individual’s responsibility to pay compensation upon occurrence of damage to or loss of the Fund’s assets.

2. Procurement of the Fund’s fixed assets

a/ The competence to decide on investment in and procurement of fixed assets; and criteria, norms, order and procedures for investment in and procurement and repair of fixed assets must comply with regulations applicable to single-member limited liability companies with 100% of charter capital held by the State, ensuring publicity, transparency, thrifty and efficiency;

b/ The procurement of fixed assets serving operation of the Fund must adhere to the principle that the remaining value of total fixed assets must not exceed 5% of the actual charter capital of the Fund at the time of procurement.

3. Principles of making deduction for depreciation of fixed assets; management and use of, and period of making, deductions for depreciation must comply with regulations on depreciation of fixed assets applicable to enterprises.

4. Hire and lease of fixed assets

a/ The Fund may hire or lease its fixed assets, following the principle of efficiency and conservation and development of capital in accordance with the law applicable to enterprises;

b/ The competence to decide to hire or lease fixed assets must comply with the regulations applicable to single-member limited liability companies with 100% of charter capital held by the State.

5. Liquidation and sale of fixed assets

a/ The Fund may take the initiative in liquidating or selling fixed assets that have been damaged, technically obsolete, no longer used or neither can be used nor used efficiently to recover capital on the principles of publicity, transparency and capital conservation;

b/ The competence to decide on liquidation and sale of fixed assets must comply with  regulations applicable to single-member limited liability companies with 100% of charter capital held by the State;

c/ The order and procedures for liquidation and sale of the Fund’s fixed assets must comply with laws applicable to enterprises.

6. Asset inventory and fixed asset revaluation

a/ Asset inventory

- The Fund shall make periodical or extraordinary inventory to determine the quantity of its assets upon closure of its account book in order to make annual financial statements; after the occurrence of a natural disaster or an enemy sabotage or change in its assets  due to certain reasons; or as required by a competent state agency;

- For surplus or deficient assets, it is necessary to identify causes and responsibilities of related organizations and individuals and determine the amount of material compensation in accordance with law.

b/ Asset revaluation

The Fund shall revaluate its assets in accordance with the laws applicable to enterprises. Any increase or decrease in value as a result of asset revaluation shall be handled in accordance with regulations on a case-by-case basis.

7. Asset loss handling

In case its assets are lost, the Fund shall determine the value of the lost assets, identify causes and responsibilities and handle  the case as follows:

a/ Clearly identifying objective causes (natural disasters, fires or accidents) and subjective causes;

b/ If the loss is due to a subjective cause, the organization or individual that causes the loss shall pay compensation and be handled in accordance with law. The Fund shall specify the compensation and decide on compensation amounts in accordance with law and take responsibility for its decision;

c/ The loss of insured assets shall be handled under insurance contracts;

d/ After being covered by the compensations of the loss-causing organizations or individuals or insurers and  using provisions, the remaining value of the lost assets shall be accounted as expenses arising in the period;

dd/ In special cases when the Fund itself cannot settle serious damage caused by natural disasters orforce majeureevents, the Fund Director shall report the loss handling plan to the Fund Chairperson for submission to the Minister of Culture, Sports and Tourism for decision.

Article 11.The Fund’s expenses

Expenses of the Fund are those that arise in a period and are necessary for the Fund’s operation, accompanied with sufficient valid invoices and documents as prescribed by law and fully reflected in the Fund’s account books under the current accounting regime and the Ministry of Finance’s guidance, including:

1. Expenses for professional activities:

a/ Arrangement of expenses for tourism promotion and advertising

- To organize Vietnam’s tourism promotion and advertising activities:

+ Organizing Vietnam’s tourism introduction programs overseas;

+ Participating in international tourism fairs overseas;

+ Coordinating in organizing transnational, regional and international tourism promotion and advertising activities;

+ Promoting Vietnam’s tourism on advertising and communications means and at Vietnam’s important economic, political and social events; organizing conferences, seminars, press conferences, and events to promote Vietnam’s tourism at home and abroad;

+ Organizing Vietnam’s tourist product and destination exploration tours for domestic and foreign travel agents, transport firms and press agencies to acquire information and disseminate and introduce Vietnam’s tourism;

+ Organizing inter-regional and inter-locality tourism promotion and advertising activities.

- To develop electronic marketing for tourism promotion and advertising:

+ Assisting the building and maintenance of a tourism e-transaction and promotion portal;

+ Creating e-databases and e-publications; developing applications for smart mobile devices;

+ Conducting tourism advertising on social networking sites and search applications.

- To organize the production of publications and articles to serve tourism promotion and advertising;

- To build, develop and disseminate Vietnam’s tourism brands.

b/ Support for other tourism development activities

- Supporting market research and tourism product development;

- Supporting the training and development of human resources for the tourism sector;

- Supporting public information about tourism in communities.

2. Expenses for financial operations: Expenses related to deposit of money at commercial banks and other financial operation expenses must comply with this Charter.

3. Payments to cadres and employees:

a/ Salaries and amounts of salary nature payable to the Fund’s cadres and employees in accordance with law;

b/ Deductions for payment of social insurance and health insurance premiums, trade union dues, and unemployment insurance premiums;

c/ Expenses for medical care and female employees under current regulations; labor protection expenses; expenses for employees’ outfits.

4. The Fund’s management expenses:

a/ Expenses for fixed asset depreciation in accordance with law; lease of fixed assets; expenses for asset insurance purchase; expenses for asset maintenance and repair; expenses for lease and procurement of tools and instruments, assets, equipment and stationery serving the Fund’s operation; expenses for covering asset loss according to regulations;

b/ Expenses for external services: electricity, water, telephone, post and telecommunications charges; audit and legal service charges; charges for using technical documents, patents, technical services; transportation, fire prevention and fighting expenses;

c/ Expenses for business trips, travel allowances for the Fund’s cadres and employees on domestic and overseas business trips;

d/ Expenses for transaction, external relations, conferences, receptions and festivals in accordance with law;

dd/ Expenses relating to the appraisal of dossiers of proposal for supporting tourism development activities;

e/ Other expenses as prescribed by law.

5. The norms of the expenses specified in Clauses 1, 2, 3 and 4 of this Article must comply with the law applicable to single-member limited liability companies with 100% of charter capital held by the State. The Fund’s expenses paid with state budget funds must comply with state budget spending regimes and norms. For expenses not yet prescribed by law, the Fund shall, based on its financial capacity, formulate norms and make spending decision in an appropriate and efficient manner and shall take responsibility before law. The Fund shall identify responsibilities of related organizations and individuals for unlawful or excessive payments and submit a reimbursement plan to competent authorities for decision.

Article 12.Payments which may not be accounted as the Fund’s operating expenses

1. Payments exceeding the currently prescribed norms.

2. Losses already covered by the State or insurers or damage-causing parties.

3. Payments for fines for administrative violations due to subjective causes, fines for violations of financial regimes.

4. Payments for procurement, upgrading or renovation of fixed assets from the source of capital construction investment capital.

5. Payments without valid and lawful invoices and documents.

6. Payments not relating to the Fund’s operations according to its functions and tasks.

7. Payments made with other funds.

Article 13.Financial results, distribution of financial results

1. The Fund’s annual financial result means the positive difference between the total revenue from various sources in the year (exclusive of charter capital and annual operating funds allocated from the state budget) and the total rational and valid expenditure arising in the fiscal year.

2. After fulfilling financial obligations to the State as prescribed, if the total revenue in the year is higher than the total expenditure, the difference shall be distributed in the following order:

a/ To set aside 30% for the development investment fund;

b/ To make deductions to set up the commendation fund and welfare fund:

- If rated at level A, the Fund may make deductions at the maximum rate of 3 months of salary;

- If rated at level B, the Fund may make deductions at the maximum rate of 1.5 months of salary;

- If rated at level C, the Fund may make deductions at the maximum rate of 1 month of salary.

c/ To make deductions to set up a bonus fund for managers (including the Fund Chairperson, Supervisor, Director, Deputy Directors, and chief accountant):

- If rated at level A, the Fund may make deductions at the maximum rate of 1.5 months of managers’ salary;

- If rated at level B, the Fund may make deductions at the maximum rate of 1 month of managers’ salary;

- If rated at level C or in case of failure to conduct the rating, the Fund may not make deductions to set up a bonus fund for managers.

d/ The remainder left after making deductions to set up the above funds shall be further deducted for the development investment fund.

dd/ In case the remainder of the difference between revenue and expenditure left after making deductions to set up the development investment fund is not sufficient for making deductions for the commendation fund, the welfare fund and the bonus fund for managers according to the prescribed rates, the Fund may reduce its deductions for the development investment fund so as to be able to make addition to the latter at the prescribed rates but the maximum reduction rate must not exceed the deduction rate for the development investment fund in the fiscal year.

3. Management and use of funds

a/ The development investment fund shall be used to add the Fund’s charter capital;

b/ The commendation fund shall be used to make periodical or extraordinary rewards to the Fund’s individuals and collectives that have technical renovations or professional process reform initiatives, helping heighten the Fund’s operation effectiveness; and to collectives and individuals inside and outside the Fund that make effective contributions to the Fund’s operation;

c/ The welfare fund shall be used for sports, culture and public welfare activities of the Fund’s employees; provision of subsidies to the Fund’s employees suffering chronic or unexpected difficult circumstances; and for building or repair of the Fund’s welfare facilities.

Norms of the above-said payments shall be decided by the Fund Chairperson and stated in the Regulation on management and use of the Fund’s assorted funds. The Fund Chairperson and Director shall coordinate with the Fund’s Trade Union in managing and using such funds in a public and transparent manner.

d/ Bonus fund for managers:

- This fund shall be used to make rewards to the Fund Chairperson, Supervisor, Director, Deputy Directors and Chief Accountant similarly to single-member limited liability companies with 100% of charter capital held by the State;

- The bonus levels shall be decided by the Fund Chairperson and stated in the Regulation on management and use of the Fund’s assorted funds.

4. The above-said funds must be managed and used for the proper purposes and subjects. The Fund shall formulate and promulgate the regulations on management and use of assorted funds for internal application after obtaining the Ministry of Culture, Sports and Tourism’s consensus in accordance with law, ensuring publicity and transparency according to its financial disclosure and grassroots democracy regulation and the State’s regulations.

Article 14.Accounting regime

1. The Fund shall implement the accounting regime in accordance with the Accounting Law, the Ministry of Finance’s guidance and relevant laws, fully record original documents, update account books and reflect the Fund’s operations in a full, timely, truthful, accurate and objective manner.

2. The Fund shall organize statistics work in accordance with the Statistics Law and guiding documents.

3. A fiscal year of the Fund begins on January 1 and ends on December 31.

Article 15.Formulation of annual operation plans and financial plans

1. Every year at the time of formulating estimates, the Fund Director shall, based on the results of implementation of tasks of the previous year and the Fund’s plans, tasks and operation targets of the planning year, formulate an operation plan and a financial plan, covering:

a/ A plan to add charter capital and operating funds using the state budget under Clauses 1 and 2, Article 8 of this Charter;

b/ Estimations of the balance of operating funds allocated by the state budget, plans to mobilize other sources;

c/ A plan on performance of tourism promotion and advertising tasks and provision of support for other tourism development activities using annual operating funds allocated by the state budget and non-state budget funds;

d/ A plan on current expenditures for the Fund’s management apparatus.

2. The Fund Director shall send the Fund’s operation plan and financial plan to the Supervisor for appraisal, submit them to the Fund Chairperson  for subsequent submission to the Ministry of Culture, Sports and Tourism for inclusion into the state budget estimates.

3. The Ministry of Finance shall arrange funds according to the state budget estimates, the Law on the State Budget and guiding documents.

4. Based on the operating funds allocated by the state budget every year, the Fund Chairperson shall approve and send the Fund’s annual financial plans to the Ministry of Culture, Sports and Tourism and the Ministry of Finance for management, supervision and evaluation of the Fund’s operation effectiveness.

5. The Fund Director shall make and send the Fund’s financial finalization statements to the Supervisor for appraisal and submit them to the Fund Chairperson and the Ministry of Culture, Sports and Tourism for approval and to the Ministry of Finance.

Article 16.Order of priority in selecting tasks

1. Tourism promotion and advertising in major markets, development of new potential tourism overseas markets; building of the national tourism brand.

2. Tasks bearing transnational, regional and international nature or scale involving Vietnam.

3. Tasks bearing national, inter-regional and inter-locality nature or scale; provision of support to develop potential tourism areas into national tourist zones as well as tourism in areas with socio-economic difficulties or extreme socio-economic difficulties.

Article 17.Methods for implementation

1. To assign tasks, place orders and organize bidding to select agencies, enterprises, organizations and individuals to perform tasks in accordance with law.

2. To support enterprises, organizations and individuals satisfying the conditions specified in Article 18 of this Charter to perform the tasks.

Article 18.Conditions for receiving the Fund’s financial support

Enterprises, organizations and individuals satisfying the following conditions shall be considered to receive financial support from the Fund:

1. The tasks they proposed are conformable with the provisions at Point b, Clause 1, Article 11 of this Charter and not identical with those which have been or are being performed with funds allocated from the Fund or other state budget sources.

2. They do not commit violations of the economic law and this Charter.

Article 19.Information and reporting regimes

1. The Fund shall make and send annual reports to the Ministry of Culture, Sports and Tourism and the Ministry of Finance.

2. Annual reports specified in Clause 1 of this Article include:

a/ Financial statements, including financial situation report; report on operation results; statement of cash flows; and explanatory note to financial statement in accordance with law;

b/ Report on the audit of the annual financial statement;

c/ State budget account finalization report.

3. Time limits for sending such reports: Annual reports shall be sent within 90 days after the end of the fiscal year; particularly, the report on the audit of the annual financial statement of an independent audit firm shall be sent within 120 days after the end of the fiscal year.

4. In an unexpected case, the Fund shall provide information and reports to competent agencies at the latter’s request.

5. Annually, the Ministry of Culture, Sports and Tourism shall report the Fund’s operations to the Prime Minister and send such reports to the Ministry of Finance. Such a report must cover:

a/ The Fund’s operations;

b/ The Fund’s finances: operating funds; revenue-expenditure;

c/ Comments, evaluations and recommendations on the Fund’s operations.

Article 20.Supervision and evaluation of the Fund’s operations

1. The Ministry of Culture, Sports and Tourism shall supervise and evaluate the Fund’s operations in:

a/ Managing and using the Fund’s charter capital, its annual operating funds and assets;

b/ The Fund’s operation results;

c/ Complying with the Fund’s regulations on wages, remunerations and bonuses;

d/ Other relevant contents of supervision at the request of the Ministry of Culture, Sports and Tourism.

2. The Ministry of Culture, Sports and Tourism shall supervise directly or indirectly via the Fund’s reports to detect financial risks and limitations in the Fund’s management and its operation effectiveness and give warnings and prompt settlement solutions in accordance with the regulations on financial supervision, assessment of operation efficiency and disclosure of financial information of state enterprises.

3. Criteria for assessing the Fund’s operations include:

a/ Criterion 1: quantity, frequency, scale and professionalism of tasks performed by the Fund;

b/ Criterion 2: mobilization of donations and lawful voluntary contributions to the Fund from enterprises, organizations and individuals at home and abroad;

c/ Criterion 3: observance of the regulations on management and use of charter capital and the Fund’s operating funds and assets, reporting regime;

d/ Criterion 4: number of tourists; length of stay and spending of tourists; evaluations of tourism brand and images of tourist destinations of Vietnam by international organizations and tourists.

4. Objective factors to be considered and excluded upon the evaluation of the Fund’s operations:

a/ Natural disasters, fires, epidemics, political-economic fluctuations, warfare and otherforce majeurecircumstances;

b/ Changes in relevant policies affecting tourism activities and the Fund’s operation results.

Article 21.Audit and disclosure of financial statements

1. The Fund’s annual financial statements shall be audited by an independent audit or or the state audit and made public in accordance with current law.

2. In case the state audit agency has no plan to audit the Fund, the Fund’s financial statements shall be audited by the independent audit firm established and operating in Vietnam suggested by the Supervisor to the Fund Chairperson for selection.

3. The Fund Supervisor shall examine and control the scheduled implementation of financial and accounting regimes in the Fund and report examination and control results to the Fund Chairperson.

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 22.Responsibilities of the Ministry of Culture, Sports and Tourism

1. To perform the state management of the Fund. To assume the prime responsibility for, and coordinate with related ministries and sectors in, finalizing, amending and supplementing legal documents on the Fund’s organization and operation and submit them to competent agencies for promulgation or promulgate them according to their competence.

2. To assume the prime responsibility for, and coordinate with related ministries and sectors in, guiding the implementation of contents and regulations on the Fund’s organization and operation.

3. To manage, organize, monitor, examine and supervise all activities of the Fund in accordance with the Enterprise Law, the Law on Management  and Use of State Capital Invested in Production and Business at Enterprises and guiding documents, and this Charter.

4. To appoint and relieve from duty holders of titles of the Fund Chairperson, Director and Supervisor.

5. To promulgate regulations on the Supervisor’s activities.

6. To perform other duties and exercise other powers of the representative of the state owner at the Fund as mentioned in this Charter and relevant legal documents.

Article 23.Responsibilities of the Ministry of Finance

1. To guide the accounting regime applicable to the Fund.

2. To arrange charter capital and annual operating funds for the Fund under Clauses 1 and 2, Article 8 of this Charter and submit them to competent authorities for consideration and decision.

Article 24.Responsibilities of ministries and sectors and People’s Committees at all levels

1. To coordinate in organizing the Fund’s activities in compliance with this Charter.

2. To create favorable conditions for the Fund’s performance of tasks involving ministries, sectors and localities.

Article 25.Responsibilities of agencies, enterprises, organizations and individuals using the Fund’s funds

1. To use funds efficiently and properly.

2. To take joint responsibility for explaining the use of funds provided by the Fund to competent agencies when requested.

3. To fully comply with the commitments in the contracts and relevant laws.-

Prime Minister
NGUYEN XUAN PHUC