Decree No. 80/2020/ND-CP use of grant aid not in the form of official development assistance of foreign agencies

DECREE

On management and use of non-refundable aid not belonging to official development assistance provided by foreign agencies, organizations and individuals for Vietnam^[1]

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

Pursuant to the June 22, 2015 Law on Promulgation of Legal Documents;

At the proposal of the Minister of Planning and Investment,

The Government promulgates the Decree on management and use of non-refundable aid not belonging to official development assistance provided by foreign agencies, organizations and individuals for Vietnam.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

1. This Decree prescribes the management and use of non-refundable aid not belonging to official development assistance (ODA) provided by foreign agencies, organizations and individuals for lawfully established agencies and organizations in Vietnam for socio-economic development or humanitarian assistance purpose, but not for profit or commercial purpose.

2. This Decree does not regulate:

a/ Non-refundable aid amounts of foreign agencies and organizations the receipt of which requires official signing of documents in accordance with the Law on Treaties, and  non-refundable aid amounts under ODA agreements which are required to be concluded in the name of the State or the Government of the Socialist Republic of Vietnam;

b/ Donations and gifts provided for agencies and organizations not for humanitarian assistance or charity purpose;

c/ Amounts financed under cooperation agreements, service contracts or technology transfer contracts to generate profits for distribution;

d/ Financed amounts received by individuals for scientific research activities, which must comply with Law No. 29/2013/QH13 on Science and Technology;

dd/ Emergency international aid provided by foreign governments, international organizations, foreign non-governmental organizations and foreign individuals as relief, which shall be approved and implemented within 3 months from the date of occurrence of a natural disaster, and emergency international aid for remediation of natural disaster consequences, which shall be approved and implemented within 9 months from the date of occurrence of a natural disaster.

Article 2.Subjects of application

1. This Decree applies to agencies, organizations and individuals engaged or involved in the management and use of non-refundable aid not belonging to ODA (below referred to as aid) specified in Article 1 of this Decree.

2. Aid donors referred to in this Decree are foreign organizations and individuals that have goodwill and respect and observe Vietnam’s law, including:

a/ Foreign non-governmental organizations, not-for-profit organizations, social funds, and private funds established under foreign laws;

b/ Foreign individuals, including overseas Vietnamese;

c/ Enterprises and companies established under foreign laws, excluding foreign-invested economic organizations operating in Vietnam in accordance with the Law on Investment;

d/ Research and training institutions established under foreign laws (including research institutes and cooperation institutions of foreign governments);

dd/ Ministries, agencies and organizations of foreign governments, and Vietnam-based diplomatic missions of foreign countries that provide aid amounts or authorize foreign legal entities to manage aid amounts of which the receipt and implementation neither require official signing of documents in accordance with the Law on Treaties nor require the Vietnamese partners to sign documents in the name of the State or the Government of the Socialist Republic of Vietnam.

3. Aid recipients referred to in this Decree are Vietnamese agencies and organizations established under Vietnam’s law, and having functions and tasks relevant to and operating in line with the objectives and contents of the aid amounts to be received, including:

a/ State agencies and public non-business units with their operating funds wholly or partially covered by the state budget;

b/ Socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, science and technology organizations, social funds, and charity funds established in accordance with Vietnam’s laws on societies, science and technology organizations, social funds, and charity funds;

c/ Social enterprises that receive aid for settlement of social and environmental issues;

d/ Other subjects as decided by the Prime Minister.

Article 3.Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Program or project management unit (below referred to as project management unit) means an apparatus established to assist the aid owner or project owner in managing the implementation of one or more than one program or project.

2. Aid-providing methods include program, project and non-project activity, of which:

a/ Program is a combination of activities related to one or more than one sector, multiple localities and multiple subjects aiming to achieve one or more than one specified objective, which is implemented in one or more than one period.

b/ Project is a combination of interrelated activities aiming to achieve one or more than one specified objective, which is implemented in a specific locality, within a specified period and with specified resources.

c/ Non-project activity refers to an aid amount which is granted in lump sum in cash, in kind, in goods or in expertise (even voluntary expertise) and provides inputs for organizing conferences, seminars, coaching courses, researches, surveys or training courses.

3. Managing agencies include:

a/ Central bodies of political organizations and their attached agencies; the Supreme People’s Procuracy; the Supreme People’s Court; agencies of the National Assembly; the State Audit Office of Vietnam; Office of the President; ministries, ministerial-level agencies and government-attached agencies; central bodies of the Vietnam Fatherland Front and socio-political organizations; and People’s Committees of provinces and centrally run cities (below referred to as provincial-level People’s Committees);

b/ For humanitarian aid amounts without specific recipients, the central body of the Vietnam Fatherland Front shall act as their managing agency;

c/ Ministries, ministerial-level agencies, government-attached agencies or provincial-level People’s Committees shall issue decisions on establishment of socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, science and technology organizations, social funds, and charity funds in accordance with Vietnam’s laws on associations, social funds, charity funds, and science and technology organizations;

d/ Central bodies of associations established under the Prime Minister’s decisions;

dd/ For aid amounts received by social enterprises, provincial-level People’s Committees of localities where the enterprises are registered shall act as managing agencies.

4. Aid owner means a unit assigned to manage and implement an aid amount approved by a competent authority. An aid owner may be regarded as the project owner in case the aid amount is provided in the form of program or project.

5. Aid amount regulated by this Decree means non-refundable financial amount or goods or services provided by the aid donor for the aid recipient to realize socio-economic development and humanitarian objectives but not for commercial or profit-making purpose.

6. Program or project document means an official document stating the commitment between the aid donor and the aid recipient regarding a specific program or project, and specifying the objectives, activities, expected outcomes, resources used, implementation period and plan, management of the implementation of the program or project, and obligations and benefits of the stakeholders.

7. Aid amounts for consequence remediation include:

a/ Emergency relief amounts, and aid amounts for remediation of consequences of emergency cases (excluding the international aid amounts referred to at Point dd, Clause 2, Article 1 of this Decree);

b/ Relief amounts provided after 3 months from the date of occurrence of a natural disaster, and aid amounts for remediation of natural disaster consequences provided after 9 months from the date of occurrence of a natural disaster.

8. Aid amounts belonging to state budget revenues include aid amounts to be received by:

a/ Agencies of the Party, National Assembly, Supreme People’s Court, and Supreme People’s Procuracy; ministries, ministerial-level agencies and government-attached agencies and their dependent and attached legal persons; and People’s Committees at all levels and their attached legal persons;

b/ The Vietnam Fatherland Front, Vietnam General Confederation of Labor, Ho Chi Minh Communist Youth Union, Vietnam Peasants’ Association, Vietnam War Veterans’ Association, and Vietnam Women’s Union;

c/ Enterprises with 100% charter capital owned by the State and other entities having their revenues and expenditures regulated by the law on the state budget;

d/ Other entities defined under the Prime Minister’s decisions.

9. Counterpart fund means a funding amount contributed by the Vietnamese counterpart (in kind or in cash) for receipt and implementation of an aid amount. Counterpart funds shall be allocated from the central budget or local budgets, provided by aid owners themselves or contributed by beneficiaries, or come from other lawful funding sources. Counterpart funds shall be used for the preparation and implementation of aid amounts as specifically required by programs and projects.

Article 4.Principles of aid management and use

1. Aid management and use must comply with Vietnam’s law. Aid amounts may only be received, implemented and used only after being approved by  competent Vietnamese authorities. Aid amounts must be money or assets of lawful origin.

2. It is prohibited to receive goods (including supplies and equipment) banned from import under law.

3. Managing agencies shall take full responsibility in the management and use of aid amounts.

4. Cash flows received and spent as aid must go through aid receipt accounts, ensuring publicity and transparency, and shall be fully reported in accordance with Chapters III, IV and V of this Decree.

5. Aid amounts belonging to state budget revenues shall be estimated, accounted and fully finalized into the state budget.

6. For aid amounts not belonging to state budget revenues, aid owners may themselves manage them, and take responsibility for their use purposes and results, ensuring compliance with Vietnam’s law and commitments with donors. Aid owners shall send periodical reports to managing agencies for summarization and reporting to the Ministry of Planning and Investment for inclusion in sum-up reports.

7. After 6 months from the date of approval of an aid amount, if such amount is not yet spent without a plausible reason, the competent authority having issued the decision approving the receipt of such aid amount may revoke such decision. The managing agency shall notify the aid donor of the revocation of the above decision.

Article 5. Prohibited acts in aid use

1. Using aid for the purposes of laundering money, financing terrorism, evading taxes, infringing upon national security or social order and security, undermining the bloc of great national unity; or harming social morality, fine customs and habits, and cultural identity of the nation.

2. Using aid to seek profits or personal gains, but not for humanitarian or socio-economic development purposes or not for the sake of the community.

3. Acts of corruption or causing loss or waste in aid management and use.

Article 6.Funds for preparation for aid amounts

1. For aid amounts of which the managing agencies have their operating funds partially or wholly covered by the state budget, the managing agencies shall estimate preparation funds for inclusion in annual budget plans in accordance with the Law on the State Budget.

2. For aid amounts not belonging to state (central or local) budget revenues, aid owners shall themselves allocate preparation funds.

3. In case the aid donor provides financial support for preparation of a program or project, the aid owner shall include the funding amount for preparation for the aid amount in the total funding amount of such aid.

Chapter II

APPRAISAL AND APPROVAL OF AID AMOUNTS

Article 7.Approval competence

1. The Prime Minister shall approve:

a/ Aid amounts related to security, national defense or religion, and aid amounts to be directly used for supporting the formulation of legal documents;

b/ Imported goods falling within the Prime Minister’s competence as prescribed by relevant laws;

c/ Other aid amounts not listed in Clauses 2, 3 and 4 of this Article.

2. Heads of managing agencies shall approve:

a/ Aid amounts not listed in Clause 1 of this Article, and aid amounts, large and small, for consequence remediation which are provided directly to ministries, sectors or localities;

b/ Aid amounts to be received by organizations established under decisions of or having their charters approved or operation registration certificates granted by managing agencies as suitable to the functions and tasks of such organizations, except organizations established under decisions of the Ministry of Home Affairs.

3. The Minister of Home Affairs shall approve aid amounts of associations, social funds or charity funds established under decisions of and having their charters approved by his/her Ministry.

4. The Chairperson of the Vietnam Fatherland Front Central Committee shall approve humanitarian relief amounts without specific recipients (aid donors do not intend to provide aid for specific localities).

5. Heads of associations or unions of associations established under the Prime Minister’s decisions shall approve aid amounts for agencies under their management in accordance with law.

Article 8.Aid amount dossiers

An aid amount dossier shall be made in 6 sets. Foreign-language documents shall be accompanied by their notarized Vietnamese translations.

1. A program or project dossier must comprise:

a/ A written request for approval of the program or project;

b/ The aid donor’s written consent to providing aid;

c/ The program or project documents;

d/ Papers evidencing the legal person status of the aid donor (not applicable to aid donors being diplomatic missions or authorities under foreign governments or local administrations), specifically as follows:

A copy of the registration certificate issued by a competent Vietnamese agency, for foreign non-governmental organizations already registered in Vietnam;

Certified copies of valid passports, for aid donors being individuals;

Certified copies of valid papers evidencing the legal status, for other aid donors being organizations.

2. A non-project activity dossier must comprise:

a/ A written request for approval of the non-project activity;

b/ The aid donor’s written consent to providing aid;

c/ The non-project aid documents, prepared by the aid owner in coordination with the aid donor, which must state the following major contents: purposes and contents of the aid amount, list of goods (for aid provided in goods or in kind), expected outcomes brought about by the aid amount; implementation duration; value of the aid amount; implementation organization method and coordination mechanism during implementation; and the obligation to report on outcomes of the use of aid;

d/ Papers evidencing the legal person status of the aid donor (not applicable to aid donors being diplomatic missions or authorities under foreign governments or local administrations), specifically as follows:

A copy of the registration certificate issued by a competent Vietnamese agency, for foreign non-governmental organizations already registered in Vietnam;

Certified copies of valid passports, for aid donors being individuals;

Certified copies of valid papers evidencing the legal status, for other aid donors being organizations.

dd/ For non-project aid provided in the form of expertise, an aid amount dossier must comprise the papers listed at Points a, b, c and d of this Clause; resumes of experts with their commitment to take responsibility for the provided information; activity program; work permits and legal papers proving professional activities of experts as prescribed by relevant laws.

3. A dossier for the non-project aid provided in the form of goods or used equipment or vehicles and falling within the Prime Minister’s competence must comprise:

a/ A goods quality assessment certificate issued by a lawful and capable assessment institution recognized by Vietnam or the host country, in addition to the papers specified in Clause 2 of this Article. This certificate must contain a confirmation that the quality of goods, equipment or vehicles satisfies relevant Vietnam standards or equivalent standards accepted by Vietnam.

b/ For the non-project aid provided in the form of used vehicles, the following papers are also required: a notarized Vietnamese translation of the aid donor’s vehicle registration certificate or vehicle ownership certificate; and a notarized Vietnamese translation of the registration and inspection certificate issued by the competent authority of the aid donor’s country. For vehicles temporarily imported for re-export, the registration and inspection certificate issued by the competent Vietnamese agency is required.

4. Documents of programs and projects and documents of non-project aid amounts shall be made according to the forms provided in Appendices I, II and III to this Decree.

5. Aid projects with public investment or construction investment contents shall be formulated in accordance with the regulations on public investment management and work construction investment.

6. Dossier-receiving agencies:

a/ The Ministry of Planning and Investment, for aid amounts to be approved by the Prime Minister;

b/ Managing agencies, for aid amounts not to be approved by the Prime Minister.

Article 9.Agencies in charge of appraisal

1. Documents of programs, projects and non-project activities shall be appraised as a basis for approval, signing and implementation of such programs, projects and non-project activities.

2. For aid amounts to be approved by the Prime Minister as prescribed in Clause 1, Article 7 of this Decree, the Ministry of Planning and Investment shall take charge of their appraisal.

3. For aid amounts to be approved by heads of managing agencies as prescribed in Clauses 2 thru 5, Article 7 of this Decree and implemented at the central level, managing agencies shall assign their attached specialized units to take charge of their appraisal; for those to be implemented at the local level, provincial-level Departments of Planning and Investment shall take charge of their appraisal.

4. Depending on the size, characteristics and contents of a program or project, the agency in charge of appraisal may invite central and local specialized agencies, consultancy organizations and independent consultants to assist in appraising the program or project.

5. Agencies, organizations and individuals participating in appraisal shall take responsibility before law for the appraised contents in the fields under their management.

Article 10.Order and procedures for appraisal and approval of documents of programs, projects and non-project aid amounts

1. Checking the validity of dossiers for appraisal based on Article 8 of this Decree.

2. Collecting written opinions from related agencies, specifically as follows:

a/ For the aid amounts mentioned in Clause 1, Article 7 of this Decree, the Ministry of Planning and Investment shall send dossiers of request for opinion to the Ministry of Finance, Ministry of Public Security, Ministry of Foreign Affairs, Vietnam Union of Friendship Organizations (in case aid donors are foreign non-governmental organizations), and related specialized agencies.

b/ For the aid amounts mentioned in Clauses 2 thru 5, Article 7 of this Decree and to be implemented at the central level, managing agencies shall send dossiers of request for opinion to the Ministry of Planning and Investment, Ministry of Finance, Ministry of Public Security, Ministry of Foreign Affairs, Vietnam Union of Friendship Organizations (in case aid donors are foreign non-governmental organizations), and related specialized agencies.

c/ For the aid amounts mentioned in Clauses 2, 3 and 4, Article 7 of this Decree and to be implemented at the local level, provincial-level Departments of Planning and Investment shall send dossiers of request for opinion to provincial-level Departments of Finance, Departments of Public Security and related local departments and sectors. In case the contents to be covered by an aid amount fall beyond the competence of a locality, the provincial-level Department of Planning and Investment shall report such to the provincial-level People’s Committee for consulting related ministries and sectors.

3. Appraisal of aid amounts

Depending on the size, characteristics and contents of an aid amount, the agency in charge of appraisal shall organize appraisal by collecting opinions or holding an appraisal meeting. Conclusions of the agency in charge of appraisal shall serve as a basis for a competent authority to consider and decide to approve the receipt of the aid amount.

In case the aid amount is found unacceptable, the managing agency shall notify its refusal of the aid amount to the aid donor.

4. For aid amounts for consequence remediation, when approving documents of projects or non-project activities, heads of managing agencies are not required to collect appraisal opinions from related agencies.

5. Appraisal contents

a/ Conformity of the objectives of the program or project and purposes of receipt of the non-project activity with specific development objectives set out by the ministry, sector, locality or unit that will implement and benefit from the program or project;

b/ Legal person status of aid donors and aid recipients and lawfulness of related organizations and individuals as required by Vietnam’s law; and conformity of aid purposes with the functions, tasks and competence of aid recipients;

c/ Capabilities of aid owners to receive, and organize the implementation of, the aid amounts; and capabilities of the Vietnamese counterpart to contribute counterpart funds;

d/ Domestic financial mechanism, for aid amounts belonging to state budget revenues; and rationality in the structure of budget funds to be earmarked for key items of programs or projects;

dd/ Commitments, prerequisites and other conditions set by the participants in the program or project;

e/ Effectiveness, socio-economic impacts, security, social order, possibility to apply outcomes of the program or project to practice, and the sustainability of the program or project after it is completed; and use efficiency of the non-project aid.

6. The time limit for appraisal is 20 days from the date of receipt of a complete and valid dossier.

Article 11.Approval decisions

1. An approval decision must have the following principal contents:

a/ Name of the program, project or non-project activity;

b/ Name of the managing agency or aid owner; foreign aid donor or co-donors;

c/ Objectives of and main outcomes to be brought about by the aid amount; list of goods and items, for non-project aid provided in goods or in kind;

d/ Time and place of implementation;

dd/ Total funding of the program, project or non-project activity (non-refundable aid and counterpart fund); non-refundable aid to be managed and implemented by the aid recipient and non-refundable aid to be managed and implemented by the aid donor;

e/ Financial mechanism applicable to the aid amount: Whether the aid amount will belong or not belong to state budget revenues;

g/ Method of implementation management.

2. Within 5 days after a competent authority issues a decision to approve an aid amount, the managing agency shall notify such decision to the aid donor and concurrently send it to the Ministry of Planning and Investment, Ministry of Finance and related agencies for supervision and coordination in implementation.

Chapter III

MANAGEMENT OF AID IMPLEMENTATION

Article 12.Organization of management of programs and projects

Depending on the size and characteristics, specific conditions for implementation, and capabilities to organize the management, of programs or projects, managing agencies shall decide to apply one of the following forms of organizing the management of programs and projects:

1. Using their attached specialized units which are eligible and capable to manage and implement projects, for projects capitalized at under USD 200,000 (two hundred thousand US dollars).

2. Using existing management units to manage new programs or projects.

3. Forming a separate management unit for each program or project.

Article 13.Tasks and powers of managing agencies

1. To mobilize aid based on aid demands, socio-economic development orientations and aid-receiving capacity.

2. To approve aid amounts according to their competence.

3. To decide on the management apparatus of the implementation of programs or projects.

4. To approve program or project implementation plans; to make annual financial plans and state budget revenue-expenditure estimates at the proposal of aid owners in accordance with relevant laws.

5. To direct bidding activities in accordance with current law. For aid amounts not belonging to state budget revenues, bidding shall be conducted as agreed upon with aid donors.

6. To take responsibility for financial management, fully report on funding sources and assets received, and use of aid amounts. To approve final accounts annually and upon completion of projects.

7. To periodically summarize financial statements on aid amounts they have approved.

8. To examine and supervise the implementation of projects and the observance of current regulations on project management.

9. To send annual reports on disbursement and use of aid; to send annual sum-up reports on results of aid mobilization as well as implementation, monitoring and evaluation of aid amounts under their management to the Ministry of Planning and Investment, Ministry of Finance and related agencies no later than January 15 of the subsequent year; to send reports on use of aid amounts to the Ministry of Planning and Investment and Ministry of Finance within 6 months from the date of complete use.

10. To take responsibility for the loss, waste, corruption or other violations committed in the management and use of aid under their management.

Article 14.Tasks and powers of aid owners

1. Aid owners shall be identified in decisions approving the receipt of aid.

2. Aid owners have the following responsibilities:

a/ To organize the management apparatus and implement programs or projects in pursuance to decisions of managing agencies. To manage and effectively use aid sources and counterpart funds of programs or projects. If not establishing project management units, to open accounts for receiving and disbursing aid amounts at State Treasury offices or commercial banks established and operating under Vietnam’s law. To receive and spend aid amounts via accounts under approved financial plans;

b/ To make annual activity plans and financial plans and submit them to competent authorities for approval; to make annual estimates of state budget revenues and expenditures for aid amounts belonging to state budget revenues and submit them to competent authorities for approval;

c/ To perform bidding work in accordance with the current bidding law;

d/ To supervise the performance of contracts and handle problems according to their competence;

dd/ To monitor and evaluate programs and projects.

3. To perform accounting and account finalization for and fully report on funding sources and assets received and used.

4. To report on the receipt of aid and implementation and disbursement of aid amounts every 6 months and every year to managing agencies. To send reports on use of aid amounts to managing agencies within 6 months from the date of complete use.

5. To take responsibility for the loss, waste, corruption and violations committed in the management of the implementation of programs, projects or non-project activities that cause economic, social or environmental damage, thus affecting general objectives and efficiency of programs or projects.

6. To perform other tasks and exercise other powers in accordance with law.

Article 15.Tasks and powers of project management units

1. To represent project owners and take responsibility before project owners, managing agencies and law for their decisions.

2. To open accounts at State Treasury offices where they conduct transactions or at commercial banks established and operating under Vietnam’s law. To receive and spend aid amounts via accounts under approved financial plans.

3. To perform the tasks within projects, specifically as follows:

a/ Making overall and annual implementation plans and financial plans of projects and submitting them to heads of managing agencies for approval;

b/ Negotiating and signing contracts;

c/ Carrying out bidding activities and managing contracts as assigned;

d/ Managing finance and assets and carrying out procedures for disbursement, accounting and account finalization according to this Decree’s provisions on financial management and regulations of aid donors.

4. To make detailed plans on monitoring and evaluation of the implementation of programs or projects.

5. Every 6 months and every year, to report on the implementation of programs or projects and on financial management to project owners and managing agencies.

6. To conduct pre-acceptance test, handover and account finalization for programs or projects. Within 6 months from the date of completion of programs or projects, to prepare reports on completion of programs or projects and send them to project owners.

7. To perform other tasks as assigned.

Article 16.Adjustment, modification and supplementation of programs or projects during implementation

1. For programs and projects decided by the Prime Minister:

Managing agencies shall report to the Prime Minister any adjustments, modifications or supplementations that lead to the change of the contents of decisions on approval of aid amounts.

2. For programs and projects to be approved by managing agencies:

a/ Adjustments, modifications or supplementations that make a program or project fall into one of the cases specified in Clause 1, Article 7 of this Decree shall be reported to the Prime Minister for consideration and approval;

b/ Adjustments, modifications or supplementations not specified at Point a of this Clause shall be approved by agencies having issued decisions on approval of aid amounts.

3. The order and procedures must comply with Articles 8, 10 and 11 of this Decree.

Article 17.Sale of goods included in aid

Goods included in aid which are brought into Vietnam for sale as agreed upon by the aid recipient and the aid donor shall be decided by a competent authority defined in Article 7 of this Decree simultaneously with the approval of aid amounts after obtaining the Ministry of Finance’s written approval. Used goods other than commercial goods that are permitted for import into Vietnam may not be auctioned. Brand-new goods remaining usable shall be auctioned in accordance with current law on property auction.

Article 18.Handover of aid results

Once a project is completed, the project owner shall organize pre-acceptance test and evaluation of the project and take necessary measures to exploit and hand over the project’s results to the project beneficiaries and send a project completion report to the managing agency, Ministry of Planning and Investment and Ministry of Finance.

Article 19.Handling of disputes

In case of occurrence of a contract-related dispute in the process of implementation of a program or project, the parties shall hold negotiations on the settlement of the dispute. If the parties cannot reach an agreement, the dispute shall be settled through conciliation or arbitration or at court in accordance with law as stated in the signed contract.

Chapter IV

FINANCIAL MANAGEMENT OF AID

Article 20.Principles for financial management of aid

1. The principles for financial management of aid amounts belonging to state budget revenues are only applicable to aid amounts managed and implemented by project owners.

2. For aid amounts directly managed and implemented by aid donors: Managing agencies shall manage the approved program and project documents; perform their assigned functions and tasks; and comply with regulations on accounting and tax and relevant laws. In case aid donors hand over their ownership over assets and equipment of the programs and projects to the project owners, the latter shall establish asset ownership in accordance with current regulations.

3. Aid amounts belonging to state budget revenues shall be subject to estimation, spending control, accounting, recording as expenditures and revenues, and account-finalization in accordance with the law on the state budget, and subject to financial management prescribed in this Decree. For an aid amount not yet included in the estimate allocated and assigned under a plan by a competent authority, the project owner shall make an additional estimate in accordance with the regulations on state management and relevant regulations.

4. For aid amounts not belonging to state budget revenues, the recipients shall manage and use them according to the approved documents of programs, projects or non-project activities and their organization and operation charters, and comply with regulations on accounting and tax and relevant laws.

5. Depending on its nature, an aid amount belonging to state budget revenues which is granted to a wholly state-owned enterprise for implementation may be accounted as an increase in state capital in the enterprise or as other revenue of the enterprise.

Article 21.Opening of accounts for aid-funded programs and projects

1. Counterpart fund accounts:

a/ Counterpart fund accounts using state budget capital: The project owner shall open its account at the State Treasury office where its transactions are conducted to control and make payments for counterpart funds of the project;

b/ For counterpart fund accounts not using state budget capital: The project owner shall open its account at the State Treasury office where its transactions are conducted, or at a commercial bank established and operating in accordance with Vietnam’s law.

2. Aid accounts: The project owner shall open its aid receipt account at the State Treasury office where its transactions are conducted, or at a commercial bank established and operating in accordance with Vietnam’s law.

a/ The order and procedures for opening accounts at the State Treasury and the management and use of such accounts must comply with current regulations;

b/ The State Treasury shall organize the control of and make payments for the projects from aid amounts belonging to state budget revenues;

c/ The order and procedures for opening accounts at commercial banks established and operating in accordance with Vietnam’s law must comply with relevant laws.

Article 22.Making of financial plans for non-refundable aid amounts belonging to state budget revenues

1. The project owner shall, based on the decision approving documents of the project or non-project activity, or decision on investment in the program or project, make a 3-year plan on revenues and expenditures from aid and an annual estimate of revenues and expenditures from aid in accordance with the Law on the State Budget and relevant laws for submission to the managing agency for summarization.

2. The annual estimation of revenues and expenditures from aid amounts belonging to state budget revenues shall be made in detail by donor, program, project or non-project activity.

3. Formulation, summarization, submission, approval, assignment, and supplementation of aid plans:

a/ For aid used as expenditures for public investment, the law on public investment shall apply;

b/ For aid used as regular expenditures, the law on the state budget shall apply;

4. Managing agencies shall, based on the annual funding limits assigned by competent agencies, specifically allocate funds to each program, project or non-project activity and notify the detailed allocation plans to the Ministry of Finance and Ministry of Planning and Investment.

5. Managing agencies shall direct and organize the implementation of estimates, and report on implementation of plans on revenues and expenditures from aid under current regulations.

Article 23.Spending control, disbursement, accounting and revenue-expenditure recording of non-refundable aid in cash

1. Project owners shall carry out spending control at the State Treasury in accordance with the regulations on state budget management for aid amounts belonging to state budget revenues. The order and procedures for spending control, accounting and revenue-expenditure recording must comply with the law on administrative procedures applicable in the State Treasury sector.

2. A spending control dossier submitted for the first time to the State Treasury must comprise:

a/ The competent authority’s decision on assignment of estimates or supplementation of assigned estimates;

b/ A certified copy of the exchange document on the commitment and receipt of aid;

c/ A certified copy of the decision approving the project or program documents or decision on investment in the program and the approved project document;

d/ A goods procurement or service provision contract (if any). In case the contract is signed in a foreign language, it shall be accompanied by its Vietnamese translation bearing the signature and seal of the project owner. The project owner shall take responsibility before law for the correctness and accuracy of the Vietnamese translation;

dd/ A written request for certifying valid expenditures from non-business capital or a written request for payment of investment capital of the project owner according to the Government’s regulations on administrative procedures applicable in the State Treasury sector.

3. A dossier of installment payment submitted to the State Treasury must comply with the regulations on expenditures from state budget capital.

4. Disbursement of aid amounts belonging to state budget revenues in cash for programs and projects: Based on the result of spending control and request of the project owner, the State Treasury office or commercial bank concerned shall make disbursement for the project under regulations; and monthly notify the Ministry of Finance of the disbursed amount of non-refundable aid of each account holder for each program or project.

5. Accounting of revenue-expenditure recording for projects funded with aid amounts belonging to state budget revenues:

a/ Based on the result of spending control, the State Treasury shall make revenue-expenditure records on a monthly or case-by-case basis in accordance with regulations. In case the project owner opens its aid account at a commercial bank, it shall, in addition to the aforementioned dossier, submit bank statements of payment documents from such account;

b/ The State Treasury shall conduct accounting into the state budget based on aid expenditure contents in the state budget index under regulations. Advance amounts paid under regulations shall be accounted as advance expenditures. Advance amounts recovered shall be accounted as a decrease in advance expenditures. The payments for completed volumes shall be accounted as revenues and expenditures as actually arising and account-finalized in the annual budget funds.

c/ The time limit for accounting must comply with current regulations applicable to state budget capital.

6. The payment of advance amounts and control of expenditures from aid in cash belonging to state budget revenues must comply with current regulations applicable to state budget capital.

7. Interests on deposits in aid earned from deposit accounts shall be separately accounted and monitored, and used for payment of banking service charges under regulations. Banking service charges constitute an expenditure of the project.

8. Upon the completion of spending activities on non-refundable aid accounts at commercial banks, if there is no commitment made in approved project documents on use of interests on deposits in aid, project owners shall remit the entire balance of interests on deposit accounts into the state budget under current regulations. The use of the balance of interests earned must comply with the law on public investment and the law on the state budget.

9. For aid amounts not belonging to state budget revenues:

a/ The accounting and account-finalization of aid amounts not belonging to state budget revenues must comply with the law on accounting, and the organization and operation charters of aid recipients. The project owner shall make a report on account-finalization of the aid amount on an annual basis and upon the completion of the project on the basis of the quarterly disbursement data, which are crosschecked between the commercial bank where the project owner’s aid receipt account is opened and the aid donor for submission to the managing agency for approval;

b/ The managing agency shall approve the account-finalization report, and summarize it for submission to the Ministry of Finance, Ministry of Planning and Investment, and related agencies;

The managing agency shall approve the annual account-finalization report of a project, and summarize it for submission to the Ministry of Finance, Ministry of Planning and Investment, and related agencies no later than June 30 every year.

Article 24.Receipt of aid in goods and services

1. The receipt of aid goods imported from abroad must comply with the Laws on Customs, Import Duty and Export Duty, and Tax Administration. A dossier submitted to the customs office for carrying out customs clearance procedures of imported aid goods must comprise:

a/ A decision approving the program or project document or non-project aid amount, and the document of the program, project or non-project activity: 1 certified true copy made by the competent authority under relevant laws;

b/ Other papers as prescribed in the law on customs procedures.

2. A dossier for tax refund or tax exemption for goods and services purchased domestically with aid to be submitted to the tax office must comprise:

a/ The decision approving the program or project document or non-project aid amount and the document of the program, project or non-project activity: 1 copy;

b/ A request for certification of valid expenditures from non-business capital and a request for payment of investment capital, made by the project owner in accordance with the Government’s regulations on administrative procedures applicable in the State Treasury sector (in case of receipt of non-refundable aid amounts belonging to state budget revenues).

c/ Other papers as prescribed by regulations related to tax refund or tax exemption.

3. Taxes, charges and fees must comply with current regulations on taxes, charges and fees.

4. In case of receipt of aid amounts belonging to state budget revenues, the project owner shall, after the goods delivery and receipt, make a dossier and send it to the State Treasury for recording state budget revenues and expenditures in accordance with law. A dossier for revenue and expenditure recording must comprise:

a/ A decision approving the program or project document or non-project aid amount and the document of the program, project or non-project activity: 1 certified true copy made by the competent authority under relevant laws;

b/ A request for revenue and expenditure recording in accordance with the Government’s regulations on administrative procedures applicable in the State Treasury sector;

c/ For imported goods: contracts, bills of lading or other equivalent transportation documents, commercial invoices or imported goods declarations in case no commercial invoices are available: 1 certified true copy made by the competent authority under relevant laws. For domestically purchased goods, purchase and sale contracts, value-added tax invoices and goods handover minutes: 1 certified true copy made by the competent authority under relevant laws;

d/ A competent authority’s decision to assign the estimates of aid amounts belonging to state budget revenues or the adjusted estimates in a year.

5. The State Treasury shall account in revenues and expenditures the prices of imported goods which are exclusive of taxes, charges and fees as prescribed by law.

6. The management of assets of aid amounts belonging to state budget revenues must comply with the Law on Public Asset Management and guiding documents. If having another agreement with the aid donor, the project owner shall consult the Ministry of Finance before implementation.

7. For assets of aid amounts not belonging to state budget revenues:

a/ The aid owners shall open books for separately monitoring such assets;

b/ The management and use of assets of and assets formed from programs and projects must comply with the agreement with the aid donors as stated in the approved project documents;

c/ Upon the completion of a program or project, the assets of and assets formed from such program or project shall be considered assets of the project owner, which may not be purchased, sold, presented, donated or transferred in any form;

d/ In case of change of the owner or division, splitting, merger or bankruptcy, assets of an aid program or project shall be transferred to an organization with similar functions as prescribed by competent authorities for further implementation of such program or project (if the program or project has not yet been completed) or transferred to the managing agency as approved by such managing agency. If the above-mentioned solution cannot be realized, the managing agency shall report it to the Ministry of Finance for handling.

Article 25.Taxes on aid amounts

Taxes on aid amounts must comply with current regulations of Vietnam’s law.

Article 26.Audit of aid amounts

1. Aid amounts belonging to state budget revenues shall be subject to the state audit.

2. Aid amounts not belonging to state budget revenues shall be subject to independent audit at the request of the aid donor.

Chapter V

STATE MANAGEMENT OF AID

Article 27.Contents of state management of aid

1. To promulgate, and organize the implementation of, legal documents on aid management and use in accordance with Vietnam’s law.

2. To provide information on management and use of aid regulated by this Decree.

3. To supervise and evaluate the situation and results of management and use of aid regulated by this Decree according to current regulations.

4. To handle violations committed and settle complaints and denunciations related to aid management and use which are lodged by organizations and individuals.

5. To commend Vietnamese agencies, organizations and individuals and aid donors for their achievements in the provision, management and use of aid.

Article 28.Tasks and powers of the Ministry of Planning and Investment

1. To act as the focal point in performing the state management of aid regulated by this Decree.

2. To assume the prime responsibility for drafting, submitting for promulgation or promulgating legal documents on aid management and use according to its competence.

3. To assume the prime responsibility for appraising and summarizing opinions of related agencies for submission to the Prime Minister for considering and approving aid amounts falling within the Prime Minister’s competence.

4. To submit to the Prime Minister annual summarization reports on aid management and use; to propose solutions for raising efficiency of the management and use of aid regulated by this Decree.

5. To examine the compliance with regulations on receipt, approval and implementation of aid amounts by aid recipients regulated by this Decree.

Article 29.Tasks and powers of the Ministry of Finance

1. To assume the prime responsibility for, and coordinate with related agencies in, formulating regulations guiding state financial management of aid.

2. To give opinions on aid amounts in accordance with law.

3. To perform the state financial management of aid amounts belonging to state budget revenues.

4. To synthesize the situation of financial management of aid amounts. Annually, to send reports to the Ministry of Planning and Investment for summarization and reporting to the Prime Minister.

5. To examine and supervise the financial management and compliance with financial regulations by aid recipients regulated by this Decree.

Article 30.Tasks and powers of the Ministry of Foreign Affairs

1. To give comments on aid amounts in accordance with law.

2. To supervise the implementation of aid amounts of foreign non-governmental organizations according to aid commitments and foreign non-governmental organizations’ compliance with activities registered with competent state agencies.

3. To regularly and fully provide information on the issuance, renewal, modification and supplementation of registration certificates and operation of foreign non-governmental organizations as a basis for mobilization and appraisal of aid of foreign non-governmental organizations in accordance with this Decree.

Article 31.Tasks and powers of the Ministry of Public Security

1. To guide and support Vietnamese agencies and organizations in the process of receiving and using aid amounts to strictly comply with Vietnam’s law on national security protection and social order and security maintenance.

2. To appraise, and advise the Ministry of Planning and Investment on, relevant aid amounts before submitting them to the Prime Minister for consideration and decision; to participate in appraisal and give opinions.

3. To coordinate with related agencies in inspecting, examining and supervising the receipt and use of aid to ensure political security and social order and safety.

4. To perform the tasks according to its competence when detecting signs of violation related to the receipt and use of aid amounts.

5. To provide relevant information as a basis for consideration in the process of appraisal of aid amounts to the Ministry of Planning and Investment, Ministry of Finance, Ministry of Foreign Affairs and Ministry of Home Affairs.

Article 32.Tasks and powers of the Ministry of Home Affairs

1. To assume the prime responsibility for appraising aid amounts according to its approval competence; to participate in the appraisal of and give opinions on the receipt of aid amounts with related contents.

2. To guide and support Vietnamese agencies and organizations in observing the State’s religious guidelines and policies in the process of receiving and using aid amounts.

3. To annually summarize information on management and use of aid by organizations regulated by Vietnam’s law on associations, social funds and charity funds. To submit annual reports to the Ministry of Planning and Investment for summarization and reporting to the Prime Minister.

4. To examine and supervise the receipt, management and use of aid by associations, social funds and charity funds according to its state management competence.

Article 33.Tasks and powers of managing agencies

In addition to the tasks and powers specified in Chapters I, II, III and IV of this Decree, managing agencies have the following tasks and powers:

1. Ministries, ministerial-level agencies, government-attached agencies and provincial-level People’s Committees shall, within the ambit of their assigned functions and tasks, coordinate with one another in managing and using aid amounts in the fields under their management as prescribed by law.

2. To give opinions in the process of appraising and approving aid amounts on specialized fields under their management as assigned by the Government.

3. Heads of managing agencies shall approve aid amounts according to the competence specified in this Decree and take responsibility before law for their approval decisions.

4. Provincial-level People’s Committees shall assign provincial-level Departments of Planning and Investment to act as the focal points in managing and using aid amounts regulated by this Decree.

5. To promulgate the Regulation on management and use of aid within managing agencies in pursuant to this Decree and relevant legal documents.

6. To direct, guide and examine attached units in receiving, managing and using aid according to current regulations, and strictly comply with the commitments with aid donors.

7. To supervise and evaluate the receipt and implementation of aid amounts approved by heads of managing agencies; to promptly detect and handle according to their competence problems, difficulties and violations in the process of organizing the receipt and use of aid or notify related state management agencies in charge of aid as mentioned in this Chapter for handling.

8. To fully and promptly allocate funds for preparation and counterpart funds for the implementation of aid programs and projects in accordance with the approved program or project documents.

9. To take responsibility before the Government for the quality, effectiveness and implementation progress of aid programs and projects in accordance with law.

10. To fully implement reporting regimes as prescribed by law.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 34.Organization of implementation

1. The Ministry of Planning and Investment shall promulgate documents guiding forms of reports for implementation of the reporting regime in accordance with this Decree.

2. The Ministry of Finance shall promulgate documents guiding forms of reports on financial management in accordance with this Decree.

Article 35.Transitional handling

1. Aid amounts the receipt of which is submitted to the aid-approving agency or the Ministry of Planning and Investment for appraisal and submission to the Prime Minister for consideration and approval before the effective date of this Decree must continue complying with the Government’s Decree No. 93/2009/ND-CP of October 22, 2009, promulgating the Regulation on management and use of foreign non-governmental aid.

2. Aid amounts approved before the effective date of this Decree shall be subject to financial management and reporting regimes prescribed in the Government’s Decree No. 93/2009/ND-CP of October 22, 2009, promulgating the Regulation on management and use of foreign non-governmental aid, and guiding documents, until the completion of such aid amounts as stated in the approval decisions of competent authorities.

Article 36.Effect and implementation responsibility

1. This Decree takes effect on September 17, 2020, and replaces the Government’s Decree No. 93/2009/ND-CP of October 22, 2009, promulgating the Regulation on management and use of foreign non-governmental aid.

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

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC