Decree 305/2025/ND-CP on Vietnam’s provision of aid to foreign countries

DECREE

On Vietnam’s provision of aid to foreign countries^[1]

Pursuant to Law No. 63/2025/QH15 on the Organization of the Government;

Pursuant to Law No. 72/2025/QH15 on the Organization of Local Administration;

Pursuant to Law No. 64/2025/QH15 on the Promulgation of Legal Documents;

Pursuant to Law No. 83/2015/QH13 on the State Budget;

Pursuant to Law No. 56/2024/QH15 Amending and Supplementing a Number of Articles of the Law on Securities, the Law on Accounting, the Law on Independent Audit, the Law on the State Budget, the Law on Management and Use of Public Assets, the Law on Tax Administration, the Law on Personal Income Tax, the Law on National Reserves, and the Law on Handling of Administrative Violations;

Pursuant to Law No. 89/2025/QH15 on the State Budget;

Pursuant to Law No. 108/2016/QH13 on Treaties;

Pursuant to Bidding Law No. 22/2023/QH15;

Pursuant to Law No. 57/2024/QH15 Amending and Supplementing a Number of Articles of the Planning Law, the Law on Investment, the Law on Investment in the Form of Public-Private Partnership, and the Bidding Law;

Pursuant to Law No. 90/2025/QH15 Amending and Supplementing a Number of Articles of the Bidding Law, the Law on Investment in the Form of Public-Private Partnership, the Customs Law, the Law on Value-Added Tax, the Law on Export Duty and Import Duty, the Law on Investment, the Law on Public Investment, and the Law on Management and Use of Public Assets;

Pursuant to Law No. 50/2014/QH13 on Construction and Law No. 62/2020/QH14 Amending and Supplementing a Number of Articles of the Law on Construction;

Pursuant to the National Assembly’s Resolution No. 176/2025/QH15 on the organizational structure of the Government of the 15^th National Assembly;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on Vietnam’s provision of aid to foreign countries.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree provides the provision and management of Vietnam’s non-refundable aid to aid recipients, which shall be covered by expenditure items for aid of the central budget and local budgets as provided in Law No. 83/2015/QH13 on the State Budget; Law No. 56/2024/QH15 Amending and Supplementing a Number of Articles of the Law on Securities, the Law on Accounting, the Law on Independent Audit, the Law on the State Budget, the Law on Management and Use of Public Assets, the Law on Tax Administration, the Law on Personal Income Tax, the Law on National Reserves, and the Law on Handling of Administrative Violations; and Law No. 89/2025/QH15 on the State Budget.

2. This Decree does not regulate the following expenditure amounts and aid amounts:

a/ Annual dues, and voluntary, obligatory or annual contributions made by Vietnam to international and regional cooperation organizations, frameworks and forums to which Vietnam is a contracting party;

b/ Aid amounts provided to foreign countries in the field of national defense and security.

Article 2. Subjects of application

Agencies, organizations and individuals involved in or related to the provision, implementation and management of Vietnam’s aid to aid recipients.

Article 3. Interpretation of terms

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

1. Program/project steering committee means an organization established by the managing agency with the participation of authorized representatives of related agencies, organizations and units to direct, coordinate and supervise the implementation of a program/project. When necessary, after reaching agreement with the aid recipient, the program/project steering committee may have a representative of the aid recipient.

2. Aid management unit means an organization established to assist the managing agency or the aid amount owner in managing the implementation of one or more than one program/project/non-project activity.

3. Aid provision proposal report means a document presenting preliminary ideas of a program/project/non-project activity regarding backgrounds, necessity, objectives, scope, main outcomes, implementation period, total capital amount and capital structure, and economic and social efficiency for the aid recipient.

4. Aid provision policy report means a document presenting preliminary studies on the necessity, feasibility and efficiency of a program/project/non-project activity.

5. Feasibility study report means a document presenting studies on the necessity, feasibility, efficiency, and sources and level of aid capital of a construction project in accordance with the construction law.

6. Aid recipient means a foreign State, Government, agency or organization to which Vietnam provides aid.

7. Program means a collection of interrelated projects and non-project activities funded by the central budget aimed at achieving one or more than one defined objective, and implemented in a specific area and within a certain period.

8. Vietnam’s managing agency (below referred to as managing agency) means the central body of a political organization; the Supreme People’s Procuracy; the Supreme People’s Court; the Office of the National Assembly or an agency of the National Assembly; the State Audit Office of Vietnam; the Office of the President; a ministry, ministerial-level agency or government-attached agency; the People’s Committee of a province or centrally run city; the central body of the Vietnam Fatherland Front or of a socio-political organization; socio-political-professional organization, social organization or socio-professional organization performing tasks assigned by competent state agencies; or another agency or organization assigned to provide, implement or manage aid to foreign countries.

9. Aid amount owner means an agency/unit under the managing agency that is assigned by the managing agency to directly manage and implement a program/project/non-project activity.

10. Project means a collection of interrelated activities aimed at achieving one or more than one defined objective, and implemented in a specific area and within a certain period. Projects include:

a/ Construction projects, which involve the construction of new works or the repair or renovation of existing works, including also goods and equipment for the works and/or technical assistance for the exploitation and operation of the works;

b/ Technical assistance projects, which involve the provision of support for policy and institutional research and scientific and technological activities; improvement of professional qualifications and capacity; human resource development; preparation and support for implementation of construction projects; and the provision of services to address specific issues;

c/ Goods supply projects, which involve the provision of aid in kind (goods, equipment and machinery);

d/ Projects other than those specified at Points a, b and c of this Clause.

11. Aid treaty means a treaty that, as defined in the Law on Treaties, has the contents concerning the provision of Vietnam’s aid to an aid recipient.

12. Non-project activity means a method of providing aid as an individual aid item, e.g., aid in cash, aid in kind, services or experts, which does not constitute a specific project. Non-project activities include:

a/ Non-project activity on technical assistance, which provides technical assistance and services to promptly address specific issues, and facilitates capacity building such as conferences, seminars, and research, consultancy, survey, training and refresher activities;

b/ Non-project activity on annual plan-based training, which is a non-project activity on technical assistance to train human resources of the aid recipient through short-term or long-term training courses organized by Vietnam according to fast-track procedures and annual training plans and targets;

c/ Non-project activity on goods supply, which provides aid in kind (goods, equipment and machinery) to promptly address specific issues;

d/ Non-project activity on interest rate subsidy provision, which provides aid to cover the whole or part of the loan interest expenses payable by the aid recipient for loans borrowed from the Government of the Socialist Republic of Vietnam and Vietnamese agencies, organizations, enterprises or banks;

dd/ Non-project activity on cash aid provision, which involves the transfer of cash aid directly to the budget of the aid recipient;

e/ Non-project activities other than those specified at Points a, b, c, d and dd of this Clause.

13. Aid implementation method means the manner in which a program/project/non-project activity is implemented and its outcomes are transferred to the aid recipient.

14. Aid provision policy decision means the Prime Minister’s decision on the policy of providing aid to the aid recipient for the implementation of a program/project/non-project activity.

15. Aid provision decision means a competent authority’s decision on the implementation of a program/project/non-project activity.

16. Aid agreement means an agreement other than a treaty, having the contents concerning the provision of aid to the aid recipient, signed in the name of the Government of the Socialist Republic of Vietnam.

17. Aid document means a document presenting studies on the necessity, feasibility and efficiency of, and sources and level of aid capital for, a project/non-project activity, except construction projects.

18. Aid means an amount of financial assistance, goods or services provided by Vietnam from the state budget to the aid recipient on a non-refundable basis.

19. Emergency aid means aid provided according to fast-track procedures applicable to certain aid amounts classified as humanitarian aid or aid as gifts, including:

a/ Humanitarian aid, which should be urgently implemented to promptly assist the aid recipient in responding to, and remediating consequences of, disasters, epidemics, or political, economic, social or environmental crises, etc.;

b/ Aid as gifts, for which procedures should be promptly completed to serve the preparation for outbound visits, reception of delegates of the aid recipient, or participation in other events by leaders of the Party, the State, the National Assembly or the Government of the Socialist Republic of Vietnam.

20. Humanitarian aid means aid provided for humanitarian or humanitarian relief purposes to assist aid recipients in responding to, and remediating consequences of, disasters, epidemics, or political, economic, social or environmental crises, etc.

21. Aid as gifts means aid provided in the form of gifts on the occasion of outbound visits, reception of leaders of aid recipients, or participation in other events by leaders of the Party, the State, the National Assembly or the Government of the Socialist Republic of Vietnam.

22. Counterpart fund means a contribution made by the aid recipient to the total funding of a program/project/non-project activity in the form of cash, in-kind contributions or manpower, or other forms.

Article 4. Forms and methods of aid provision

1. Forms of aid provision:

a/ Construction investment;

b/ Technical assistance;

c/ Goods supply;

d/ Cash aid;

dd/ Other forms as decided by the Prime Minister.

2. Methods of aid provision:

a/ Program;

b/ Project;

c/ Non-project activity.

Article 5. Aid implementation methods

1. The Vietnamese partner directly implements a program/project/non-project activity and transfers outcomes thereof to the aid recipient.

2. The Vietnamese partner transfers money to the aid recipient for implementation of a project/non-project activity.

3. The transfer of money from the central budget to the aid recipient for implementation of a project/non-project activity under Clause 2 of this Article shall be approved by the competent authority at the stage of approval of the list of aid provision proposal reports or stated in an aid treaty/agreement with the aid recipient.

4. Conditions for transfer of money to the aid recipient under a project/non-project activity:

a/ The Vietnamese partner is not qualified to directly implement the project/non-project activity meeting quality, efficiency and safety requirements;

b/ The non-project activity provides cash aid or interest rate subsidy.

Article 6. Priority aid recipients and priority areas for aid provision

1. Priority aid recipients:

a/ States, Governments, agencies and organizations of countries or territories having special traditional relations or sharing borders with Vietnam;

b/ Foreign States, Governments, agencies and organizations of strategic politics-diplomacy, national defense-security, economic or humanitarian importance to Vietnam;

c/ Other aid recipients as decided by the Prime Minister.

2. Priority areas:

a/ Areas of strategic politics-diplomacy, national defense-security or economic importance to Vietnam, and involving cross-border issues;

b/ Human resource training and development; infrastructure development, agriculture, rural areas, and hunger elimination and poverty reduction; economic reform; application of scientific and technological research; healthcare; and culture;

c/ Assistance for the formulation of laws, regulations and policies of the aid recipients that are of significance to Vietnam;

d/ Humanitarian assistance, including emergency humanitarian relief;

dd/ Other priority areas as decided by the Prime Minister.

Article 7. Principles for provision and management of aid to foreign countries

1. The provision of aid to foreign countries aims at implementing Vietnam’s foreign policies and constitutes a component of state budget expenditure estimates, and shall be uniformly, publicly and transparently managed by the Government, ensuring the close coordination among and promoting the proactivity of related organizations, agencies, units and individuals.

2. Aid provision and management must comply with external affairs guidelines and policies, the Constitution and laws of Vietnam, treaties to which Vietnam is a contracting party, and priorities of aid recipients; and must conform to objectives, interests, resource-balancing capacity, budget, implementation capacity and practical conditions of Vietnam and aid recipients.

3. Aid provision and management must comply with relevant provisions of Vietnam’s laws and treaties to which Vietnam is a contracting party. In case a treaty to which the Socialist Republic of Vietnam is a contracting party contains provisions different from those of this Decree, the provisions of that treaty prevail.

4. Priority shall be given to Vietnam’s direct implementation of aid and transfer of outcomes to aid recipients, and to use of Vietnamese goods, services, techniques, human resources and contractors. Foreign goods, services, techniques, human resources and contractors may only be used in case Vietnam is unable to meet aid implementation requirements, or for ensuring political-diplomatic, national defense-security, socio-economic and human effectiveness and safety.

5. Aid provision and management shall be carried out in a concentrated, consistent, quality, thrifty and effective manner, ensuring the prevention and combat of corruption, loss, waste and negative practices.

6. Aid recipients shall pay taxes, charges and fees related to goods, services and aid provision activities, as well as costs of compensation, ground clearance and resettlement for programs/projects/non-project activities implemented within the territories or geographical areas of aid recipients, except cases in which Vietnamese partners agree to make such payment.

7. Aid budgets allocated for a year shall be used within that year. The carry-forward or extension of aid budgets to subsequent years must comply with Vietnam’s law on budget management.

8. For aid amounts from provincial-level budgets, the following provisions shall also apply:

a/ Provinces and centrally run cities may use provincial-level budgets to provide aid to foreign countries’ localities with which they have cooperation agreements (except emergency aid), provided that such aid does not fall within the scope of international cooperation agreements between the Government of the Socialist Republic of Vietnam and foreign governments;

b/ The total amount of aid provided by a Vietnamese locality to foreign localities in a year must not exceed 10% of the provincial-level budget’s contingency amount;

c/ Aid shall be used for investment in localities; assistance for socio-economic development activities; and remediation of consequences of disasters, catastrophes or serious epidemics.

Article 8. Process of provision and management of aid to foreign countries

1. Summarizing, and selecting the list of, aid provision proposal reports.

2. Formulating and appraising documentation, and deciding on aid provision policy.

3. Formulating and appraising documentation, and deciding on aid provision.

4. Notifying, exchanging opinions on, and reaching agreement with aid recipients on basic contents and requirements of aid from Vietnam; assisting aid recipients in completing dossiers and procedures for receiving aid from Vietnam in accordance with relevant regulations of Vietnam and aid recipients.

5. Negotiating and signing aid treaties or agreements, or exchanging aid document with aid recipients.

6. Formulating and arranging aid plans.

7. Managing the implementation and performing financial management of aid programs/projects/non-project activities.

8. Adjusting aid (when necessary).

9. Monitoring, supervising, evaluating, reporting on, inspecting and auditing aid provision.

10. Completing, acceptance testing, and transferring outcomes of aid provision.

11. For specific aid amounts, depending on the type, sector, form and method of aid provision and method of aid implementation, the procedures specified in Chapters II, III, IV and V of this Decree shall be carried out.

Article 9. Principles for determining expenses related to aid capital

1. Aid capital may be used to cover:

a/ Expenses for implementing items and activities within the scope of a program/project/non-project activity falling within the responsibility of the Vietnamese partner;

b/ Expenses for preparation and appraisal of the aid provision policy report, feasibility study report and aid document by the managing agency;

c/ Expenses for assisting the aid recipient in preparing for the receipt of aid (when necessary);

d/ Expenses for managing the program/project/non-project activity of the aid amount owner, aid management unit, or consultant hired to manage the program/project/non-project activity;

dd/ Expenses for preparing bidding documents, and selecting, and signing contracts with, contractors;

e/ Expenses for monitoring, inspecting and evaluating the program/project/non-project activity falling within the responsibility of the aid amount owner;

g/ Insurance costs;

h/ Contingency costs; and,

i/ Other expenses and costs as decided by the Prime Minister for aid from the central budget, or by the Chairperson of the provincial-level People’s Committee for aid from local budgets.

2. Aid capital may not be used to cover:

a/ Taxes, charges and fees payable by the aid recipient in relation to goods, services and aid activities;

b/ Expenses for compensation, ground clearance and resettlement in case the program/project/non-project activity is implemented within the territory or geographical area of the aid recipient;

c/ Expenses for management of the program/project/non-project activity falling within the responsibility of the aid recipient;

d/ The use of aid capital to cover the expenses specified at Points a, b and c of this Clause, when necessary, shall be decided by the Prime Minister for aid from the central budget, or by the Chairperson of the provincial-level People’s Committee for aid from local budgets.

Chapter II

AID PROVISION PROPOSAL REPORTS, AID PROVISION POLICY DECISIONS AND AID PROVISION DECISIONS

Section 1

SUMMARIZATION AND SELECTION OF THE LIST OF AID PROVISION PROPOSAL REPORTS

Article 10. Procedures for the summarization and selection of the list of aid provision proposal reports

1. On the basis of the budget-balancing capacity and practical conditions, the Ministry of Finance, related agencies and the managing agency shall notify and guide, and exchange opinions and work with, the aid recipient or an agency authorized by the aid recipient regarding relevant policies, regulations, procedures and dossiers, and Vietnam’s capacity to provide aid; and shall identify the aid recipient’s needs, capacity, policies, regulations, procedures and priorities in receiving, managing and using aid.

2. For aid other than emergency aid from the central budget, the Ministry of Finance shall summarize aid provision needs and report thereon to the Prime Minister on the basis of:

a/ The aid recipient’s request enclosed with the aid provision proposal report (in English and Vietnamese), submitted to the Ministry of Finance or through diplomatic channels or cooperation mechanisms between Vietnam and the aid recipient;

b/ In case the aid recipient has identified the managing agency and has no conditions or capacity to prepare an aid provision proposal report; or in case of humanitarian aid or aid as gifts: Based on the aid recipient’s request or actual needs, the managing agency shall prepare an aid provision proposal report (in English and Vietnamese) and submit it to the Ministry of Finance;

c/ In case the aid recipient has yet to identify the managing agency and has prepared an aid provision proposal report (in English and Vietnamese): The Ministry of Finance shall assume the prime responsibility for, and coordinate with related agencies in, identifying and proposing an appropriate agency to act as the managing agency;

d/ In case the aid recipient has neither identified the managing agency nor prepared an aid provision proposal report: The Ministry of Finance shall assume the prime responsibility for, and coordinate with related agencies in, identifying and proposing an appropriate agency to act as the managing agency to prepare an aid provision proposal report (in English and Vietnamese) for submission to the Ministry of Finance;

dd/ Based on set principles, priorities, the capacity to balance budgets for aid expenditures, practical implementation, and written opinions of the Ministry of Foreign Affairs and related agencies, the Ministry of Finance shall summarize a list of aid provision proposal reports meeting the criteria specified in Clause 2, Article 11 of this Decree, and send reports thereon to the Prime Minister for consideration and approval every 6 months or when necessary as directed by the leaders of the Party, the State and the Government.

3. For emergency aid from the central budget, the Ministry of Foreign Affairs shall assume the prime responsibility for summarizing aid needs and submitting to the Prime Minister the list of aid provision proposal reports on the basis of:

a/ The actual situation and arising needs;

b/ Opinions of the Ministry of Finance and related agencies;

c/ For non-project activities providing cash aid, the Ministry of Foreign Affairs shall act as the managing agency;

d/ For projects/non-project activities other than those specified at Point c, Clause 3 of this Article, the Ministry of Foreign Affairs shall propose an appropriate agency or local authority to act as the managing agency;

dd/ A plan on supplementation of the annual aid budget plan with the use of the central budget’s contingency for the managing agencies to provide emergency aid.

4. For aid from the local budget, the provincial-level People’s Committee shall summarize aid needs on the basis of:

a/ The aid recipient’s request enclosed with an aid provision proposal report (in English and Vietnamese), or through diplomatic channels or cooperation mechanisms between Vietnam and the aid recipient;

b/ Based on set principles, priorities, the capacity to balance budget for aid expenditures, and implementation situation, the provincial-level People’s Committee shall summarize a list of aid provision proposal reports meeting the criteria specified in Clause 2, Article 11 of this Decree;

c/ Contents on aid to foreign countries to perform emergency external affairs tasks as directed by the leaders of the Party, the State and the Government.

5. The Prime Minister shall approve the list of aid provision proposal reports with the use of the central budget and supplement annual aid budget plans with the use of the central budget’s contingency for the managing agencies to implement emergency aid. Chairpersons of provincial-level People’s Committees shall approve the lists of aid provision proposal reports with the use of local budgets.

6.  The Ministry of Finance shall notify the Prime Minister’s approval decision to the Ministry of Foreign Affairs, the managing agency and the aid recipient; and the provincial-level People’s Committee shall notify the approval decision of the Chairperson of the provincial-level People’s Committee to the Ministry of Finance, the Ministry of Foreign Affairs and the aid recipient.

7. Procedures for summarizing and selecting the list of aid provision proposal reports are not required for:

a/ Emergency aid with the use of provincial-level budgets;

b/ Aid amounts with the use of the central budget as agreed upon between the Vietnamese partner and the aid recipient and stated in the aid treaty or agreement, or minutes of meetings of Joint Committees or Intergovernmental Committees, or meetings between leaders of the Party, the State, the National Assembly or the Government and the aid recipient; and aid amounts with the use of provincial-level budgets as agreed upon between localities of the Vietnamese partner and the aid recipient at meetings between the two sides;

c/ Projects/non-project activities under an aid program;

d/ Other cases as decided by the Prime Minister.

Article 11. Contents, and criteria for selection, of aid provision proposal reports

1. Aid provision proposal reports shall be made according to the form provided in Appendix I to this Decree.

2. Criteria for selection of an aid provision proposal report:

a/ Compliance with Vietnam’s law, guidelines, policies and plans on external affairs in each period, and with treaties to which Vietnam is a contracting party;

b/ Compliance with Vietnam’s policies, regulations and procedures, and conformity with Vietnam’s priorities, budget-balancing capacity, resources, strengths, implementation capacity and practical conditions;

c/ Compliance with the aid recipient’s policies, regulations and procedures, and conformity with the aid recipients’ priorities, budget-balancing capacity, resources, implementation capacity and practical conditions;

d/ Assurance of Vietnam’s interests and effective and sustainable contributions to the aid recipient’s socio-economic development;

dd/ Assurance of no overlaps with other projects/non-project activities of the aid recipient;

e/ Contents on provision of aid to foreign countries to perform emergency external-affairs tasks as directed by the leaders of the Party, the State and the Government.

Section 2

FORMULATION AND APPRAISAL OF, AND DECISION ON, AID PROVISION POLICY

Article 12. Competence to decide on aid provision policy

1. The Prime Minister may decide on aid provision policy with the use of the central budget for:

a/ Programs;

b/ Projects/non-project activities each with an aid amount of VND 500 billion or more;

c/ Other cases as decided by the Prime Minister.

2. Procedures for deciding on aid provision policy are not required for:

a/ Projects/non-project activities under programs for which the Prime Minister has decided on aid provision policy;

b/ Non-project activities on annual plan-based training;

c/ Aid provision with the use of local budgets;

d/ Cases other than those specified in Clause 1 of this Article and at Points a, b and c of this Clause.

Article 13. Procedures for deciding on aid provision policy

1. Based on the Prime Minister-approved list of aid provision proposal reports; relevant contents of aid treaties or agreements, or minutes of meetings of Joint Committees or Intergovernmental Committees, or meetings between leaders of the Party, the State, the National Assembly or the Government and the aid recipient; and the actual situation, the managing agency shall assume the prime responsibility for, and coordinate with the aid recipient in, preparing an aid provision policy report, and submit it to the Ministry of Finance.

2. The Ministry of Finance shall assume the prime responsibility for appraising the report after collecting written opinions of the Ministry of Foreign Affairs and related agencies or through organizing an appraisal meeting.

3. Based on appraisal results, the managing agency shall finalize the aid provision policy report and submit it to the Ministry of Finance.

4. The Ministry of Finance shall submit to the Prime Minister the report on appraisal results together with the aid provision policy report.

5. The Prime Minister shall consider and decide on aid provision policy.

Article 14. Dossier, contents, and time limit for appraisal of an aid provision policy report

1. A dossier for appraisal of an aid provision policy report must comprise:

a/ The managing agency’s request for appraisal;

b/ The aid provision policy report, prepared according to the form provided in Appendix II to this Decree;

c/ Other relevant documents (if any).

2. Number of appraisal dossiers submitted to the Ministry of Finance: 10 sets.

3. Contents of appraisal of an aid provision policy report:

a/ Necessity, non-overlaps, and consistency of interests of Vietnam and the aid recipient;

b/ Evaluation of socio-economic and trade-investment efficiency, assurance of national defense and security, cultural aspects, sustainable development, and political and diplomatic relationship between Vietnam and the aid recipient;

c/ Compliance and conformity with aid treaties and agreements (if any), Vietnam’s policies and laws, and the aid recipient’s policies, strategies, master plans, development plans and laws;

d/ Feasibility in terms of implementation method, scale and scope; location and time; solutions and technologies to be applied; environmental impacts; and management and implementation capacity of related agencies and units of Vietnam and the aid recipient;

dd/ Capacity for balancing and allocating budgets and resources of Vietnam and the aid recipient;

e/ Method of aid implementation;

g/ Potential risks and notes due to characteristics of the aid recipient, and proposed solutions;

h/ Sustainability and future effectiveness of the aid amount after completion;

i/ Preparatory activities and supplementation of the aid provision plan (if any);

k/ Other necessary contents (if required).

4. The time limit for appraisal and submission of an aid provision policy report to the Prime Minister for consideration is 30 days from the date of receipt of a complete and valid dossier.

In case the dossier is invalid or contents of the aid provision policy report do not comply with Clause 3 of this Article, the Ministry of Finance shall request in writing the managing agency to finalize the report within 5 working days.

Article 15. Principal contents of an aid provision policy decision

1. For a program:

a/ Name of the program;

b/ Name of the managing agency of the program and the managing agencies of component projects/non-project activities of the Vietnamese partner, and name of the aid-receiving representative agency of the aid recipient;

c/ Objectives of the program;

d/ Location and duration;

dd/ Total amount of aid provided by Vietnam (in Vietnam dong) and its structure by managing agency of each component project/non-project activity or by each major component of the program;

e/ Method of aid implementation;

g/ Other contents (if required).

2. For a project/non-project activity:

a/ Name of the project/non-project activity;

b/ Name of Vietnam’s managing agency and the aid-receiving representative agency of the aid recipient;

c/ Objectives;

d/ Location and duration;

dd/ Total amount of aid provided by Vietnam (in Vietnam dong);

e/ Method of aid implementation;

g/ Other contents (if required).

Article 16. Adjustment of aid provision policy decisions

In case the adjustment of a program/project/non-project activity leads to changes in the main contents of the aid provision policy decision as specified in Article 15 of this Decree, the procedures and dossier for deciding on the adjustment of the aid provision policy decision must comply with Articles 13 and 14 of this Decree.

Section 3

PREPARATION AND APPRAISAL OF DOCUMENTATION, DECISION ON AID PROVISION

Article 17. Competence to decide on aid provision

1. Cases where procedures for deciding on aid provision are not required:

a/ Programs;

b/ Projects/non-project activities providing cash aid, interest rate subsidy or annual plan-based training wholly from the central budget, under which money is transferred to the aid recipient for self-implementation;

c/ Non-project activities on annual plan-based training with the use of local budgets;

d/ Technical assistance projects, goods supply projects, and non-project activities for which the aid provision policy has been decided;

dd/ Other cases as decided by the Prime Minister.

2. The managing agency may decide on aid provision for projects/non-project activities other than those specified in Clause 1 of this Article.

Article 18. Procedures for deciding on aid provision for projects/non-project activities within the competence of the managing agency

1. Based on the aid treaty or agreement (if any), the decision approving the list of aid provision proposal reports, and the aid provision policy decision of the competent authority, the managing agency shall issue a decision designating the aid amount owner and the aid management unit (when necessary), and assume the prime responsibility for, and coordinate with the aid recipient in, preparing the feasibility study report and the aid document.

2. The managing agency shall assume the prime responsibility for appraising the feasibility study report and the aid document:

a/ For a project/non-project activity for which an aid provision policy decision has been issued, the managing agency shall appraise, or assign a specialized agency to appraise, the feasibility study report and the aid document;

b/ For a project/non-project activity not subject to aid provision policy decision, the managing agency shall appraise, or assign a specialized agency to appraise the feasibility study report and the aid document through obtaining written opinions of the Ministry of Finance, the Ministry of Foreign Affairs and related agencies, or by organizing an appraisal meeting.

3. Based on appraisal results, the managing agency shall modify, supplement and finalize the dossier and approve the aid provision decision with principal contents specified in Clause 2, Article 21 of this Decree.

4. To be qualified for implementation,  a construction project must comply with relevant provisions of the construction law and other relevant laws of Vietnam and the aid recipient.

Article 19. Bases for preparation of a feasibility study report and aid document

1. Aid treaties or agreements, policies and laws of Vietnam; and policies, strategies, master plans, development plans and laws of the aid recipient.

2. The decision approving the aid provision proposal report and the aid provision policy decision of the competent authority.

3. Necessity, significance and objectives of aid provision.

4. Effectiveness, feasibility and sustainability.

5. Capacity for balancing and allocating budgets and resources of Vietnam and the aid recipient.

6. Results of consultations, discussions and agreements with the aid recipient on matters related to the program/project/non-project activity.

Article 20. Contents of a feasibility study report and aid document

1. Aid document for projects/non-project activities, except construction projects, shall be prepared according to the form provided in Appendix III to this Decree.

2. The feasibility study report for construction projects must comply with the construction law and other relevant laws of Vietnam and the aid recipient, and additionally have contents on necessity, significance, effectiveness, readiness for aid receipt, and requirements of the aid recipient.

Article 21. Dossier, contents and duration of appraisal of a feasibility study report and aid document

1. A dossier for appraisal of a feasibility study report and aid document must comprise:

a/ The managing agency’s request for appraisal;

b/ The feasibility study report and the aid document;

c/ The decision approving the list of aid provision proposal reports and the aid provision policy decision of the competent authority;

d/ The report on internal appraisal of the feasibility study report and the aid document;

dd/ Other relevant documents (if any).

2. Contents of appraisal of a feasibility study report and the aid document:

a/ Necessity and significance for Vietnam and the aid recipient;

b/ Compliance and conformity with aid treaties or agreements (if any), the aid provision policy decision, Vietnam’s policies and laws, and policies, strategies, master plans, development plans and laws of the aid recipient;

c/ Analysis and identification of objectives, tasks and outcomes;

d/ Analysis of socio-economic and trade-investment efficiency, national defense and security, cultural aspects, sustainable development, and political and diplomatic cooperation between Vietnam and the aid recipient;

dd/ Analysis of the feasibility of the aid amount in terms of aid implementation method; scale and scope; cost norms; location and time; solutions and technologies to be applied; readiness of human resources, goods and services; environmental impacts; and management and implementation capacity of related agencies and units of Vietnam and the aid recipient;

e/ Analysis of organizational and management models and coordination with the aid recipient in implementation;

g/ Capacity for balancing and allocating budgets and resources of Vietnam and the aid recipient;

h/ Detailed assessment of potential risks, and solutions;

i/ Sustainability and future effectiveness of the aid amount after completion;

k/ Notes due to the characteristics of the aid recipient.

3. Time limits for appraisal and approval of an aid provision decision:

a/ The managing agency shall send a consultation dossier to the Ministry of Finance, the Ministry of Foreign Affairs and related agencies based on the contents specified in Clause 2 of this Article. Upon receipt of appraisal opinions from the consulted agencies, the managing agency shall finalize the feasibility study report and the aid document and approve the aid provision decision within 10 working days;

b/ The Ministry of Finance, the Ministry of Foreign Affairs and related agencies shall provide appraisal opinions within 10 working days after receiving a complete and valid dossier for appraisal.

Article 22. Adjustment of contents of an aid provision decision

The managing agency shall adjust the feasibility study report and the aid document and appraise and approve the adjusted aid provision decision in accordance with Article 18 of this Decree.

Article 23. Cancellation of programs/projects/non-project activities

1. Bases for deciding on the cancellation of a program/project/non-project activity:

a/ When the aid recipient no longer has demand, fails to meet the required conditions, fails to comply with commitments in the aid treaty or agreement, or exchange documents on aid, or encounters force majeure events that make it impossible to continue implementing the program/project/non-project activity with the Vietnamese partner;

b/ When the state budget and related agencies of the Vietnamese partner encounter force majeure events that make it impossible to allocate sufficient aid capital or to continue the implementation to complete the program/project/non-project activity;

c/ When the Vietnamese partner is unable to continue providing aid due to changes in law or force majeure events such as disasters, wars or epidemics, or other circumstances;

d/ When the competent authority specified in this Decree has allocated sufficient capital for provision of the aid amount but the aid amount has not yet been disbursed for 2 consecutive fiscal years and there is no written approval from the competent authority of the adjustment of the annual aid provision plan or extension of the implementation period.

2. Procedures for cancellation of a program/project/non-project activity:

a/ For aid amounts from the central budget for which no disbursement has commenced: The managing agency shall obtain written opinions of the Ministry of Finance, the Ministry of Foreign Affairs and related agencies, and report on the cancellation to the Prime Minister for consideration and decision; the Government shall report on annual aid provision plans and corresponding annual budget estimates for aid amounts already allocated but later cancelled and left unused to the National Assembly Standing Committee and to the National Assembly at the upcoming session;

b/ For aid amounts from local budgets for which no disbursement has commenced: The provincial-level People’s Committee shall obtain written opinions of the Ministry of Finance, the Ministry of Foreign Affairs and related agencies, and report on the cancellation to the provincial-level People’s Council for consideration and decision, including the cancellation of the annual aid provision plan and corresponding budget estimates for the aid amounts already allocated but later cancelled and left unused;

c/ For a program/project/non-project activity that has commenced its implementation, the Vietnamese partner’s managing agency shall carry out required steps to cancel the annual aid provision plan and estimates for the aid amount that have been allocated but not yet disbursed according to the procedures specified at Points a and b, Clause 2 of this Article.

On the basis of the competent authority’s cancellation decision, the managing agency shall hand over the outcomes to the aid recipient and complete accounting and account-finalization procedures for the disbursed aid amount in accordance with regulations.

d/ Agencies proposing the cancellation of programs/projects/non-project activities as specified at Points a, b and c, Clause 2 of this Article shall bear full responsibility for the accuracy of data on disbursement, accounting and account-finalization, and shall comply with the law against corruption and waste.

Section 4

FAST-TRACK PROCEDURES FOR AID PROVISION

Article 24. Cases of application of fast-track procedures for aid provision

1. Emergency aid.

2. Non-project activities on annual plan-based training.

3. Other cases as decided by the Prime Minister.

Article 25. Procedures for approval of decisions on emergency aid provision policy for projects/non-project activities subject to the Prime Minister’s decision

1. Based on the decision approving the list of aid provision proposal reports and the actual situation, the managing agency shall prepare an aid provision policy report according to the form provided in Appendix II to this Decree.

2. The managing agency shall, within 5 working days, send the aid provision policy report to the Ministry of Finance, the Ministry of Foreign Affairs and related agencies for soliciting the latter’s written opinions.

3. Based on received opinions, the managing agency shall revise and finalize the aid provision policy report for submission to the Prime Minister.

4. The Prime Minister shall decide on aid provision policy with the main contents specified in Clause 2, Article 15 of this Decree.

5. The managing agency shall issue a decision designating the aid amount owner and the aid management unit (when necessary).

6. The managing agency shall provide aid according to simplified procedures and by the most convenient and appropriate organizational, management and implementation methods specified in Chapters III, IV and V of this Decree.

7. In case of adjustment of the aid provision policy decision, the managing agency shall comply with Clauses 1 thru 5 of this Article.

Article 26. Procedures for deciding on provision of emergency aid for projects/non-project activities funded by the central budget

1. For construction projects:

a/ Based on the decision approving the list of aid provision proposal reports, the aid provision policy decision, the aid treaty or agreement (if any), and the actual situation, the managing agency shall issue a decision designating the aid amount owner and the aid management unit, and coordinate with the aid recipient in preparing the feasibility study report, ensuring compliance with the construction law and other relevant laws of Vietnam and the aid recipient, for use as bases for the project implementation;

b/ The managing agency shall appraise, or assign a specialized agency to appraise, the feasibility study report by sending the report to the Ministry of Finance, the Ministry of Foreign Affairs and related agencies within 5 working days for soliciting the latter’s opinions;

c/ Based on received opinions, the managing agency shall finalize the dossier and approve the aid provision decision with the main contents specified in Clause 2, Article 21 of this Decree;

d/ The managing agency shall provide aid according to simplified procedures and by the most convenient and appropriate organizational, management and implementation methods specified in Chapters III, IV and V of this Decree;

dd/ In case of adjustment of the aid provision decision, the managing agency shall comply with Points a, b and c of this Clause.

2. For projects/non-project activities other than those specified in Clause 1 of this Article:

a/ Based on the decision approving the list of aid provision proposal reports, the aid provision policy decision, the aid treaty or agreement (if any), and the actual situation, the managing agency shall issue a decision designating the aid amount owner and the aid management unit (when necessary) and prepare the aid document according to the form provided in Appendix III to this Decree;

b/ The managing agency shall appraise, or assign a specialized agency to appraise, the aid document by sending the aid document to the Ministry of Finance, the Ministry of Foreign Affairs and related agencies within 3 working days for soliciting the latter’s opinions;

c/ Based on received opinions, the managing agency shall finalize the aid document and approve the aid provision decision with the main contents specified in Clause 2, Article 21 of this Decree;

d/ The managing agency shall provide aid according to simplified procedures and by the most convenient and appropriate organizational, management and implementation methods specified in Chapters III, IV and V of this Decree;

dd/ In case of adjustment of the aid provision decision, the managing agency shall comply with Points a, b and c of this Clause.

Article 27. Procedures for deciding on emergency aid for projects and non-project activities funded by local budgets

1. For construction projects:

a/ Based on practical conditions, provincial-level People’s Committees shall issue decisions on aid amount owners and aid management units, and coordinate with aid recipients in preparing feasibility study reports, ensuring compliance with relevant provisions of the law on construction and relevant regulations of Vietnam and of aid recipients in order to have sufficient bases for project implementation;

b/ Provincial-level People’s Committees shall assume the prime responsibility for appraising, or assign specialized agencies to appraise, feasibility study reports by soliciting written opinions of the Ministry of Finance, the Ministry of Foreign Affairs and related agencies within 5 working days;

c/ Based on appraisal results, provincial-level People’s Committees shall modify, supplement and complete dossiers and approve aid provision decisions with the principal contents specified in Clause 2, Article 21 of this Decree; and supplement local budget expenditure estimates for unscheduled aid provision from provincial-level budget contingencies or other appropriate sources;

d/ In case of modifying contents of aid provision decisions, provincial-level People’s Committees shall carry out the procedures specified at Points a, b and c of this Clause;

dd/ Provincial-level People’s Committees shall report to Standing Bodies of provincial-level People’s Councils and to provincial-level People’s Councils at their upcoming sessions on the supplementation of local budget expenditure estimates for unscheduled aid provision from provincial-level budget contingencies or other appropriate sources.

2. For projects and non-project activities other than those specified in Clause 1 of this Article:

a/ Based on practical conditions, provincial-level People’s Committees shall issue decisions on aid amount owners and aid management units (when necessary) and prepare aid document according to the form provided in Appendix III to this Decree;

b/ Provincial-level People’s Committees shall assume the prime responsibility for appraising, or assign specialized agencies to appraise, aid document by soliciting written opinions of the Ministry of Finance, the Ministry of Foreign Affairs and related agencies within 3 working days;

c/ Based on appraisal results, provincial-level People’s Committees shall modify, supplement and complete dossiers and approve aid provision decisions with the principal contents specified in Clause 2, Article 21 of this Decree; and supplement local budget expenditure estimates for unscheduled aid provision from provincial-level budget contingencies or other appropriate sources;

d/ In case of modifying contents of aid provision decisions, provincial-level People’s Committees shall carry out the procedures specified at Points a, b and c of this Clause;

dd/ Provincial-level People’s Committees shall report to Standing Bodies of provincial-level People’s Councils and to provincial-level People’s Councils at their upcoming sessions on the supplementation of local budget expenditure estimates for unscheduled aid provision from provincial-level budget contingencies or other appropriate sources.

Article 28. Procedures for non-project activities on annual plan-based training

1. Based on the list of aid provision proposal reports approved by the competent authority, managing agencies shall exchange opinions and reach agreement with aid recipients on training targets, sector/field-based structure and training duration of non-project activities on annual plan-based training.

2. Based on training cost norms, managing agencies shall formulate and include aid funding estimates for non-project activities on annual plan-based training in annual aid provision plans.

3. The Prime Minister shall assign annual aid provision plans funded by the central budget, including aid funds for non-project activities on annual plan-based training funded by the central budget, to managing agencies under Article 45 of this Decree.

4. Provincial-level People’s Councils shall assign annual aid provision plans funded by local budgets, including aid funds for non-project activities on annual plan-based training funded by local budgets, under Article 45 of this Decree.

5. Managing agencies shall assign training targets and aid-funded annual training plans for non-project activities on annual plan-based training and to related agencies, organizations and units for implementation under Article 45 of this Decree.

6. If it is necessary to adjust or add aid for non-project activities on annual plan-based training outside the assigned annual aid provision plans, managing agencies shall comply with Clause 1 of this Article and Article 47 of this Decree.

Chapter III

SUPPORT FOR AID RECIPIENTS IN PREPARING TO RECEIVE AID AND NEGOTIATING AND CONCLUDING AID TREATIES OR AGREEMENTS, AND EXCHANGING AID DOCUMENTS

Article 29. Notification of the Vietnamese side’s decisions to aid recipients

1. Based on the list of aid provision proposal reports approved by the competent authority, aid provision policy decisions and aid provision decisions of competent authorities, the Ministry of Finance and provincial-level People’s Committees shall notify aid recipients or agencies authorized by aid recipients of the aid provision by Vietnam, requesting the preparation of procedures for negotiating and concluding aid treaties or agreements, or exchanging documents, and requesting the exchange of opinions and organization of working sessions with Vietnamese managing agencies to prepare and complete procedures for both sides for the implementation of programs, projects or non-project activities.

2. Based on decisions of competent authorities, managing agencies shall send to aid recipients or agencies authorized by aid recipients a notice of the aid provision by Vietnam enclosed with the aid provision proposal report, the aid provision policy report, the feasibility study report, aid document, and relevant information and documents (excluding contents on evaluation and analysis of internal benefits of the Vietnamese side), requesting the aid recipients to exchange documents and complete internal procedures for the foreign side to receive Vietnam’s aid.

Article 30. Support for aid recipients in preparing to receive aid

1. Managing agencies shall assign aid amount owners or their subordinate agencies/units to base themselves on the list of aid provision proposal reports approved by the competent authority, the aid provision policy decision and the aid provision decision to support aid recipients in preparing and approving the receipt of Vietnam’s aid in accordance with regulations of aid recipients.

2. When necessary, managing agencies may assign aid amount owners or their subordinate agencies/units to conduct surveys and field investigations in order to support aid recipients in carrying out the activities specified in Clause 1 of this Article and to serve the preparation for the implementation of programs, projects or non-project activities in accordance with regulations of Vietnam and aid recipients.

Article 31. Requirements for conclusion of aid treaties or agreements, and exchange of aid documents

1. An aid treaty may be concluded in the following cases:

a/ In-principle contents on objectives, scale, conditions, and priorities for aid provision for a given period or a specific program, project or non-project activity that requires commitments of the aid recipient that are legally binding under international law in order to ensure their feasibility and satisfaction of requirements and incentives regarding aid and interests of Vietnam, liability exemption under certain circumstances and conditions, the provision of aid in accordance with regulations of Vietnam, and safety for related Vietnamese agencies, organizations and individuals;

b/ Other cases as decided by the Prime Minister.

2. An aid agreement shall be concluded in cases requiring commitments of the aid recipient regarding the contents specified in Clause 1 of this Article that are not legally binding under international law provided it is not at variance with regulations of Vietnam and the aid recipient.

3. Form of document exchange: In addition to the cases specified in Clauses 1 and 2 of this Article, the state management agency in charge of aid and the managing agency shall exchange documents based on practical requirements and requests of the aid recipient, and in accordance with relevant regulations of Vietnam and treaties to which Vietnam and the aid recipient are contracting parties.

4. Principles of aid provision and management as specified in regulations of Vietnam, and the principle of prioritizing the use of Vietnamese goods, services, techniques, human resources and contractors as specified in Article 7 of this Decree should be expressed in aid treaties or agreements, and aid documents exchanged with the aid recipient, except specific cases making it impossible to be applied.

Article 32. Bases for conclusion of aid treaties and agreements, and exchange of aid documents

1. Development cooperation strategies, plans and priority areas, and relevant regulations of Vietnam and aid recipients, and treaties to which Vietnam and aid recipients are contracting parties.

2. Lists of aid provision proposal reports, aid provision policy decisions, and aid provision decisions approved by competent authorities of Vietnam and aid approval decisions of aid recipients.

3. Necessity of making commitments by Vietnam and aid recipients for implementing programs, projects or non-project activities.

4. Results of exchange of opinions and negotiations between related agencies of Vietnam and aid recipients.

Article 33. Agencies proposing the negotiation and conclusion of aid treaties and agreements

1. The Ministry of Finance shall propose the negotiation and conclusion of aid treaties and agreements related to strategies, policies, cooperation frameworks and priority areas; objectives, principles and compulsory conditions; aid provision commitments; obligations, responsibilities and rights of the parties, and other contents for a given period, for a set of programs, projects or non-project activities, or for a specific program, project or non-project activity; management regulations and financial, disbursement, payment and account-finalization operations for aid amounts.

2. Managing agencies shall propose the negotiation and conclusion of aid agreements related to a set of programs, projects or non-project activities or a specific program, project or non-project activity.

Article 34. Procedures for negotiation, conclusion, amendment, supplementation and extension of treaties

1. Procedures for negotiation, conclusion, amendment, supplementation and extension of treaties must comply with the law on treaties.

2. In case the amendment, supplementation and extension of a treaty lead to changes in contents of an aid provision policy decision or aid provision decision: Such aid provision policy decision or aid provision decision shall be modified before proceeding with the procedures for amendment, supplementation and extension of the treaty.

Article 35. Procedures for negotiation, conclusion, amendment, supplementation and extension of aid agreements

1. The agency proposing the conclusion of an aid agreement shall draft the agreement and discuss and reach agreement with the aid recipient.

2. The agency proposing the conclusion of the aid agreement shall solicit written opinions of the Ministry of Foreign Affairs, the Ministry of Justice, the Ministry of Finance and related agencies on the draft agreement. The consulted agencies shall give their written opinions within 10 working days after receiving the consultation request and related documents.

3. Based on opinions of the consulted agencies, the agency proposing the negotiation and conclusion of the aid agreement shall exchange opinions with the aid recipient again in order to finalize the draft agreement and submit it to the Prime Minister.

4. The Prime Minister shall approve the aid agreement and assign the Ministry of Foreign Affairs to grant the authority to conclude the aid agreement.

5. Based on the Prime Minister’s decision, the head of the agency proposing the conclusion of the aid agreement or the person authorized by the Prime Minister shall conclude the aid agreement with the aid recipient.

6. The agency proposing the conclusion of the aid agreement shall archive the original of the aid agreement, and make and send true copies of the aid agreement to the Ministry of Foreign Affairs, the Ministry of Finance and related agencies for implementation monitoring and coordination.

7. In case of amendment, supplementation or extension of the aid agreement: The agency proposing the conclusion of the aid agreement shall carry out the procedures specified in Clauses 1 thru 6 of this Article.

8. In case the amendment, supplementation and extension of the aid agreement lead to changes in contents of the aid provision policy decision or aid provision decision: The procedures for adjustment of such aid provision policy decision or aid provision decision shall be carried out before proceeding with the procedures for amendment, supplementation and extension of the aid agreement.

Article 36. Exchange of aid documents

In case the conclusion of an aid treaty or agreement is neither required nor necessary, the Ministry of Finance, the managing agency and the aid recipient shall exchange documents on the implementation of the aid-funded program, project or non-project activity regarding contents under their responsibilities; archive the original of the aid treaty or agreement and make and send true copies thereof to the Ministry of Foreign Affairs, the Ministry of Finance and related agencies for implementation monitoring and coordination.

Chapter IV

FORMULATION, ALLOCATION, AND ORGANIZATION OF THE IMPLEMENTATION, OF AID SCHEMES AND PLANS

Section 1

GENERAL PROVISIONS

Article 37. Classification of aid schemes and plans

1. By duration, aid schemes and plans include:

a/ Five-year aid schemes;

b/ Annual aid plans for implementation of 5-year aid schemes.

2. By management authority, aid schemes and plans include:

a/ National aid schemes and plans;

b/ Managing agencies’ aid plans.

3. By budget source, aid schemes and plans include:

a/ Aid plans funded by the central budget;

b/ Aid plans funded by local budgets.

Article 38. Contents of reports on aid schemes and plans to be submitted to competent authorities for approval

1. Contents of a report on a 5-year aid scheme:

a/ Implementation and assessment of implementation results of the previous period’s 5-year aid scheme;

b/ Objectives and orientations;

c/ Priority areas and aid recipients for aid provision;

d/ List of ongoing programs, projects and non-project activities and tentative list of new programs, projects and non-project activities (if any);

dd/ Expected results and solutions.

2. Contents of a report on an annual aid plan:

a/ Implementation and assessment of implementation results of the previous year’s aid plan;

b/ Expected results of aid provision in the plan year;

c/ List of aid items and specific aid levels to be allocated for each program, project or non-project activity as suitable to the annual aid source-balancing capacity of the central budget and local budgets;

d/ Expected results and management and implementation organization solutions.

Article 39. Bases for formulation of aid schemes and plans

1. Bases for formulation of a 5-year aid scheme:

a/ Guidelines and policies on foreign affairs and international cooperation and integration of the Party, the State and the Government;

b/ Budget and resource demand and balancing capacity for aid expenditures during the 5-year planning period;

c/ Socio-economic development strategy; 5-year socio-economic development plan; and 5-year financial plan;

d/ Aid treaties and agreements, and documents on cooperation between Vietnam and aid recipients;

dd/ Forecast of developments in the world, the region and foreign countries during the 5-year planning period;

e/ Implementation and results of the implementation of the previous period’s 5-year aid scheme;

g/ Performance of necessary procedures for programs, projects and non-project activities by Vietnam and aid recipients.

2. Bases for formulation of an annual aid plan:

a/ A 5-year aid scheme;

b/ Aid treaties and agreements, and documents on cooperation between Vietnam and aid recipients;

c/ Socio-economic development plan and budget estimates of the plan year;

d/ Implementation and results of the implementation of the previous year’s aid plan;

dd/ Budget demand and balancing capacity for aid expenditures in the plan year;

e/ Performance of necessary procedures for programs, projects and non-project activities by Vietnam and aid recipients.

Article 40. Principles for formulation of 5-year aid schemes and annual aid plans

1. Complying with the bases specified in Article 39 of this Decree.

2. Prioritizing the allocation of annual aid plans by managing agency, by aid recipient, and by sector, in accordance with Article 6 of this Decree and objectives and orientations for provision of aid for foreign countries in each period.

3. Ensuring that the allocation of annual aid plans complies with aid allocation objectives, principles, criteria and norms approved by competent authorities.

4. Ensuring publicity, transparency and fairness; ensuring centralized and unified management of objectives, mechanisms and policies; implementing the decentralization of powers in aid management, giving autonomy to managing agencies in accordance with law in order to increase aid efficiency and effects.

5. Ensuring that annual aid plans conform to approved 5-year aid schemes.

6. Ensuring that the allocation of annual aid plans fully meets needs of programs, projects and non-project activities of higher priority before allocating aid to those of lower priority, following the order of priority below:

a/ Emergency projects and non-project activities;

b/ Non-project activities on annual plan-based training;

c/ Programs, projects and non-project activities already completed and handed over for commissioning but not yet receiving sufficient funds;

d/ Programs, projects and non-project activities expected to be completed in the plan year;

dd/ Ongoing programs, projects and non-project activities implemented according to approved schedules;

e/ Newly commenced programs, projects and non-project activities.

7. The aid amount to be annually allocated for each program, project or non-project activity must not exceed the approved total aid amount for such program, project or non-project activity that remains to be disbursed and must conform to the actual aid disbursement progress and capacity.

8. The total aid amount to be allocated for programs, projects and non-project activities must not exceed the total aid amount to be allocated to managing agencies as approved by competent authorities in the plan year.

9. The Prime Minister shall decide on the use of annual central budget contingencies for aid expenditures.

10. Provincial-level People’s Committees may decide on the use of annual provincial-level budget contingencies for aid expenditures.

Article 41. Conditions for programs, projects and non-project activities to be included in annual aid plans

To be included in an annual aid plan, a program, project or non-project activity must meet one of the following conditions:

1. The aid provision is on the list of aid provision proposal reports approved by the competent authority.

2. The aid provision has been agreed upon by Vietnam and the aid recipient and stated in an aid treaty or agreement, or minutes of meetings of Joint Committees or Inter-Governmental Committees, and meetings of Party, State, National Assembly and Government leaders with the aid recipient.

3. The aid provision policy decision or aid provision decision has been issued, for emergency aid.

Section 2

FORMULATION, APPRAISAL AND APPROVAL OF AID SCHEMES, AND ASSIGNMENT OF AID PLANS

Article 42. Procedures for formulation of 5-year aid schemes

Before August 31 of the fifth year of the previous period’s 5-year aid scheme, the Ministry of Finance shall solicit opinions of the Ministry of Foreign Affairs and related agencies for synthesis and formulate the national 5-year aid scheme for the subsequent period and report it to the Prime Minister.

Article 43. Approval of national 5-year aid schemes

Before November 30 of the fifth year of the previous period’s 5-year aid scheme, the Prime Minister shall approve the national 5-year aid scheme for the subsequent period, which must have the following contents:

1. Objectives, orientations and priority areas for provision of aid for foreign countries in general and for each partner receiving Vietnam’s aid.

2. Main solutions and policies to implement the 5-year aid scheme.

3. Tasks of state management agencies in charge of aid and managing agencies.

Article 44. Procedures for formulation and appraisal of annual aid plans

1. For aid plans funded by the central budget:

a/ Before June 15 every year, the Prime Minister shall promulgate regulations on formulation of aid plans for the subsequent year, which must state objectives, orientations, principles and criteria for formulation and allocation of aid plans based on proposals of the Ministry of Finance;

b/ Before July 1 every year, the Ministry of Finance shall guide managing agencies in formulating aid plans for the subsequent year and setting objectives, requirements, contents, time limit and schedule of plan formulation;

c/ Based on the Prime Minister’s regulations and the Ministry of Finance’s guidance, managing agencies shall assign specialized agencies or units in charge of aid management to complete tentative aid plans for the subsequent year; and before July 15 every year, send to the Ministry of Finance their aid plans for the subsequent year (along with reports on implementation and disbursement of such aid plans for the first half of the year);

d/ Before August 1 every year, the Ministry of Finance shall calculate and notify aid expenditure amounts to be allocated from the central budget to managing agencies for the subsequent year (check figures);

dd/ Before August 15 every year, managing agencies shall finalize tentative aid plans for the subsequent year and send them to the Ministry of Finance;

e/ Before August 31 every year, the Ministry of Finance shall summarize aid plans for the subsequent year and report them to the Prime Minister and the Government.

2. For aid plans funded by local budgets:

Provincial-level People’s Committees shall synthesize and formulate aid plans funded by local budgets for the subsequent year and report them to Standing Bodies of provincial-level People’s Councils and provincial-level People’s Councils; and concurrently send them to the Ministry of Finance.

Article 45. Submission, approval and assignment of annual aid plans

1. For aid plans funded by the central budget:

a/ Before October 20 every year, the Government shall submit to the National Assembly for decision: the total aid amount of aid plans for the subsequent year; detailed allocation of the total amounts under the aid plan for the subsequent year to each central-level managing agency and the total aid amount for localities;

b/ Before November 20 every year, the Prime Minister shall assign aid plans for the subsequent year according to the total aid expenditures and aid expenditure structure decided by the National Assembly to the managing agencies;

c/ Before December 31 every year, managing agencies shall assign detailed aid plans for the subsequent year for their programs, projects and non-project activities in conformity with the Prime Minister’s plan assignment decisions; and concurrently sends them to the Ministry of Finance;

2. For aid plans funded by local budgets:

a/ Before December 10 every year, provincial-level People’s Councils shall decide on aid plans funded by local budgets for the subsequent year;

b/ Before December 31 every year, provincial-level People’s Committees shall assign aid plans funded by local budgets for the subsequent year for aid-funded projects and non-project activities; and concurrently send them to the Ministry of Finance.

Article 46. Adjustment of national 5-year aid schemes

In case of adjustment of contents of a national 5-year aid scheme approved by the Prime Minister:

1. The Ministry of Finance shall assume the prime responsibility for, and coordinate with related agencies in, identifying and assessing managing agencies’ needs for adjustment and the practical conditions.

2. The Ministry of Finance shall submit to the Prime Minister a plan on adjustment of the national 5-year aid scheme.

3. The Prime Minister shall decide on the adjustment of the national 5-year aid scheme.

Article 47. Adjustment or supplementation of annual aid plans and use of annual budget contingencies for aid expenditures

1. In case of adjustment or supplementation of an annual aid plan assigned by the Prime Minister to the managing agency:

a/ The Ministry of Finance shall assume the prime responsibility for, and coordinate with related agencies in, identifying and assessing the managing agency’s need for adjustment or supplementation of the annual aid plan;

b/ The Ministry of Finance shall submit to the Prime Minister and the Government a plan on adjustment or supplementation of the managing agency’s annual aid plan;

c/ The Government shall submit to the National Assembly for decision the adjustment of the total level of the annual aid plan and the annual aid plan of the central-level managing agency, and the total level of annual aid plans of localities;

d/ The Prime Minister shall decide on adjustment or supplementation of the managing agency’s annual aid plan;

dd/ The managing agency shall adjust or supplement the detailed assignment of the aid plan to its programs, projects or non-project activities in accordance with the Prime Minister’s decision, and concurrently send it to the Ministry of Finance.

2. In case of use of annual central budget contingencies for aid expenditures to perform unscheduled or emergency foreign affairs tasks:

a/ The Ministry of Finance shall assume the prime responsibility for, and coordinate with related agencies in, identifying and assessing the managing agency’s need to use annual central budget contingencies for aid expenditures;

b/ The Ministry of Finance shall submit to the Prime Minister a plan on use of annual central budget contingencies for aid expenditures;

c/ In case of emergency aid as specified in Articles 10, 25 and 26 of this Decree, the Ministry of Foreign Affairs shall submit to the Prime Minister a plan on use of annual central budget contingencies (when necessary) together with an aid provision proposal report;

d/ The Prime Minister shall decide on use of annual central budget contingencies for aid expenditures to perform unscheduled or emergency foreign affairs tasks in accordance with the Law on the State Budget.

dd/ The managing agency shall adjust or supplement the detailed assignment of the aid plan to its programs, projects or non-project activities in accordance with the Prime Minister’s decision on use of central budget contingencies, and concurrently send it to the Ministry of Finance.

3. In case of adjustment or supplementation of an annual aid plan funded by local budgets as assigned by a provincial-level People’s Council:

a/ The provincial-level People’s Committee shall report to the Standing Body of the provincial-level People’s Council and the provincial-level People’s Council on the adjustment or supplementation of the aid plan funded by local budgets, and concurrently send it to the Ministry of Finance;

b/ The provincial-level People’s Council shall decide on the adjustment or supplementation of the aid plan funded by local budgets;

c/ The provincial-level People’s Committee shall adjust or supplement the detailed assignment of the aid plan to the managing agency’s programs, projects or non-project activities in accordance with the decision of the provincial-level People’s Council; and concurrently send it to the Ministry of Finance.

4. In case of use of annual provincial-level budget contingencies for aid expenditures:

a/ The provincial-level People’s Committee shall decide on use of annual provincial-level budget contingencies for aid expenditures; and ensure the total aid amount of the locality for the whole year does not exceed 10% of provincial-level budget contingencies;

b/ The provincial-level People’s Committee shall report to the Standing Body of the provincial-level People’s Council and report to the provincial-level People’s Council at its upcoming session on use of annual provincial-level budget contingencies for aid expenditures.

5. In case of adjustment of an annual aid plan due to the managing agency’ detailed assignment of such plan to its programs, projects or non-project activities: To ensure it is within the annual aid expenditure limit assigned by the Prime Minister and the provincial-level People’s Council to the managing agency, and concurrently send it to the Ministry of Finance.

Section 3

ORGANIZATION OF IMPLEMENTATION OF AID PLANS

Article 48. Organization of the management of aid plans

Based on the National Assembly’s resolutions on the 5-year socio-economic development plan, 5-year financial plan and annual budget estimates, the Government shall specify general solutions for organization and implementation.

Article 49. Execution of aid plans

1. Managing agencies shall:

a/ Decide to assign annual aid plans to their agencies, units and aid-funded programs, projects or non-project activities;

b/ Report to related agencies and competent authorities on the assignment and implementation of aid plans.

2. Aid-implementing agencies and units shall report to managing agencies on the implementation of aid plans.

3. State management agencies in charge of aid and managing agencies shall inspect and urge the implementation of aid plans in order to ensure the assignment and execution of aid plans comply with decisions of competent authorities.

Article 50. Implementation of aid plans

1. Managing agencies shall:

a/ Organize the implementation of aid plans in conformity with the objectives decided by competent authorities;

b/ Organize the implementation of their programs, projects or non-project activities in conformity with schedules and aid plans decided by competent authorities.

2. Aid-implementing agencies and units shall implement aid plans in accordance with decisions of their managing agencies.

3. The Ministry of Finance shall ensure the allocation and payment of sufficient budget funds under annual aid plans decided by competent authorities.

Article 51. Period of implementation and disbursement of annual aid plans

1. The period of implementation and disbursement of funds to implement an aid plan of a year lasts through January 31 of the subsequent year.

2. For aid amounts of a year for which estimates have been assigned by competent authorities but are not yet spent or not fully spent by January 31 of the subsequent year, they may be carried forward to the subsequent year for implementation and accounted and account-finalized into the subsequent year’s budget in accordance with the Law on the State Budget.

Section 4

MONITORING, SUPERVISION, EXAMINATION, EVALUATION AND INSPECTION OF, AND REPORTING ON, AID PLANS

Article 52. Monitoring, supervision and examination of aid plans

1. The Ministry of Finance and managing agencies shall organize the monitoring, supervision and examination of aid plans falling under their responsibility.

2. The monitoring, supervision and examination of an aid plan cover:

a/ Implementation of relevant regulations and of the aid plan;

b/ Coordination with the aid recipient and notes from the aid recipient in the course of implementation of the aid plan;

c/ Formulation, appraisal, approval and assignment of the aid plan;

d/ Formulation, appraisal, approval and implementation of programs, projects or non-project activities for which funds are allocated under the aid plan;

dd/ Outstanding debts, waste and loss in aid provision.

Article 53. Evaluation of aid plans

1. Once every 6 months or every year or when necessary, the Ministry of Finance and managing agencies shall organize the evaluation of aid plans falling under their responsibility before reporting them to competent authorities.

2. The evaluation of an aid plan covers:

a/ Level of achievement compared to the plan approved by the competent authority;

b/ Impacts of the aid plan in bringing benefits to Vietnam and promoting socio-economic development of the aid recipient;

c/ Implementation of programs, projects or non-project activities covered by the aid plan;

d/ Management of aid and cooperation with the aid recipient;

dd/ Problems and limitations; and causes of problems and limitations in the implementation of the aid plan, and solutions.

Article 54. Aid inspection

1. The inspection of aid management and use must comply with the law on inspection.

2. Aid inspection shall be associated with the performance of inspection functions and tasks by agencies and organizations and must comply with the inspection procedures specified by the law on inspection.

3. Aid inspection conclusions shall be publicized in accordance with law. Inspection agencies shall handle violations of the law on aid according to their competence or transfer the violation files to competent state agencies for handling.

Article 55. Reporting on implementation and disbursement of aid plans

1. Managing agencies shall report in detail on the implementation of aid plans, and on results of the evaluation and disbursement, to the Ministry of Finance, specifically as follows:

a/ Before July 15 every year, they shall report in detail on the implementation; evaluation results; difficulties, problems and solutions; cumulative disbursements, and disbursements in the first 6 months of the year for programs, projects or non-project activities; and progress and expected results of implementation and disbursement of programs, projects or non-project activities through the end of the plan year (submitted together with aid plans for the subsequent year);

b/ Before March 1 every year, they shall report in detail on the implementation; evaluation results; difficulties, problems and solutions; cumulative disbursements, and disbursements in the previous plan year for programs, projects or non-project activities;

c/ The shall make ad hoc reports in case problems arise and need to be urgently resolved or at the request of the Prime Minister and state management agencies in charge of aid.

2. Once every 6 months or every year or when requested, the Ministry of Finance shall report to the Prime Minister on the implementation; evaluation results; difficulties, problems, responsible agencies, and solutions; biannual, annual and cumulative disbursement of aid amounts of the whole country, managing agencies, and programs, projects or non-project activities; and other relevant contents.

Chapter V

MANAGEMENT AND IMPLEMENTATION OF PROGRAMS, PROJECTS AND NON-PROJECT ACTIVITIES

Section 1

ORGANIZATION OF THE MANAGEMENT AND IMPLEMENTATION OF PROGRAMS, PROJECTS AND NON-PROJECT ACTIVITIES

Article 56. Tasks and powers of managing agencies in managing and implementing programs, projects and non-project activities

1. To decide on aid amount owners, models of organization of the management of programs, projects or non-project activities, and establish program steering committees headed by leaders of managing agencies (when necessary).

2. To approve the overall plan and annual plans on implementation of programs, projects or non-project activities, and balance and allocate resources for the implementation of programs, projects or non-project activities.

3. To direct and assign tasks to aid amount owners and aid management units in managing and implementing programs, projects or non-project activities.

4. To direct bidding work in accordance with current regulations and aid treaties or agreements.

5. To determine and assign tasks to and direct agencies and units in performing jobs of programs, projects or non-project activities to which it is impossible to apply one of the contractor selection forms in accordance with law.

6. To organize monitoring, supervision, examination and evaluation of the implementation and direct the acceptance testing and handover of outcomes of programs, projects or non-project activities to aid recipients, ensuring the satisfaction of schedule and quality requirements and the achievement of the set objectives.

7. To take responsibility for additional costs arising due to subjective reasons, loss, waste, corruption, and violations in the provision and management of aid for foreign countries falling under their management.

8. To perform other tasks and exercise other powers in accordance with law, and aid treaties and agreements.

Article 57. Tasks and powers of aid amount owners in managing and implementing programs, projects or non-project activities

1. To exchange opinions and coordinate with, and support aid recipients in order to reach agreement on contents of programs, projects or non-project activities; to request aid recipients to complete procedures and perform the obligation to implement programs, projects or non-project activities; to request aid recipients to provide information, dossiers, documents and data related to unit prices, norms, natural and social conditions, regulations, policies and master plans; to coordinate with foreign partners in addressing, and reporting to competent authorities on, difficulties, problems and other necessary contents related to programs, projects or non-project activities.

2. To organize management apparatuses for programs, projects or non-project activities based on decisions of managing agencies and direct and assign tasks to aid management units and aid management consultancy units to implement programs, projects or non-project activities.

3. To formulate and submit to managing agencies for approval the overall plan and annual plans on implementation of programs, projects or non-project activities; to formulate, approve and implement quarterly plans on implementation of programs, projects or non-project activities; to send to managing agencies periodical or unscheduled reports on the progress of implementation of programs, projects or non-project activities.

4. To carry out bidding work in accordance with the bidding law and aid treaties and agreements, and under responsibilities assigned or delegated by managing agencies.

5. To negotiate, conclude, and monitor the performance of, contracts and tasks of implementing agencies and units, and address arising problems according to their competence.

6. To approve designs and construction drawings for implementing construction and installation items in construction projects and other documents and contents related to programs, projects or non-project activities assigned or delegated by managing agencies.

7. To assist managing agencies in directing, managing, monitoring, supervising, examining and evaluating aid plans; to monitor, supervise and evaluate programs, projects or non-project activities falling within their assigned competence in order to ensure the satisfaction of schedule and quality requirements and the achievement of the set objectives.

8. To prepare completion reports and account-finalization reports, and carry out procedures for closing and auditing programs, projects or non-project activities; to carry out acceptance testing and handover of outcomes of programs, projects or non-project activities to aid recipients, and other activities in accordance with Vietnam’s law and aid treaties and agreements, and under responsibilities assigned or delegated by managing agencies.

9. To take responsibility before law and managing agencies for the management of programs, projects or non-project activities within the ambit of their rights and obligations, ensuring compliance with approved decisions and aid plans allocated from the stage of preparation and implementation to the stage of handover of outcomes of programs, projects or non-project activities to aid recipients; to take responsibility for loss, waste, corruption and violations, and financial, economic, social and environmental damage, adversely affecting overall objectives and efficiency of programs, projects or non-project activities.

10. To perform other tasks and exercise powers assigned or delegated by managing agencies in accordance with law and aid treaties and agreements.

Article 58. Models of organization of management of programs, projects or non-project activities

Based on relevant regulations; scale, nature and characteristics of programs, projects or non-project activities; specific conditions of aid recipients; and capacity of their subordinate agencies and units, managing agencies shall decide to apply the following models of organization of management of programs, projects or non-project activities:

1. Aid amount owners directly manage projects or non-project activities: For small-sized and simple projects or non-project activities and projects or non-project activities applying the method of transferring money to aid recipients for self-implementation:

a/ Aid amount owners decide to assign additional tasks to their subordinate units and individuals to perform the management of projects or non-project activities;

b/ Aid amount owners arrange focal-point personnel with appropriate professional qualifications for general management and those for financial management to work on a part-time or full-time basis.

2. Aid amount owners establish an aid management boards: applicable to construction programs or projects; and programs, projects or non-project activities subject to many requirements on procedures, processes and professional and technical standards that are directly implemented by Vietnam before transferring outcomes to aid recipients.

3. Aid amount owners hire consultants to manage part or the whole of programs, projects or non-project activities: applicable in case aid amount owners and aid management units lack capability, conditions or expertise, or perform management work with lower effectiveness and higher costs.

a/ Organizations or units providing consultancy on management of programs, projects or non-project activities shall perform jobs and make commitments under contracts signed with aid amount owners and in accordance with current relevant regulations;

b/ Aid amount owners shall select consultants for management of programs or projects through bidding and sign consultancy contracts in accordance with the law on bidding. When applying the form of hiring consultants for management of programs or projects, aid amount owners shall designate specialized units within their apparatuses or focal points to examine and supervise contract performance by consultants.

4. Other models as decided by managing agencies that can help effectively assist managing agencies and aid amount owners in organizing the implementation of programs, projects or non-project activities with operation cost norms compliant with relevant regulations.

Article 59. Establishment of aid management units

1. Heads of managing agencies shall issue decisions to establish aid management units. If aid amount owners have the full legal person status, heads of managing agencies may authorize the aid amount owners to issue decisions to establish aid management units.

2. A decision to establish an aid management unit must have the contents on the organization and operation regulation; functions and tasks; assigned or delegated responsibilities, powers and tasks of the aid management unit; responsibilities and powers of holders of key positions; financial and accounting management mechanism, and operation costs; accounts and seal; and mechanism for coordination and participation of aid recipients in the aid management unit (when necessary), ensuring compliance with relevant regulations and aid treaties and agreements.

3. In case the existing aid management unit or project management unit is used to manage a new program, project or non-project activity, the managing agency shall adjust and supplement the contents of the decision to establish such aid management unit or project management unit as appropriate.

Article 60. Tasks and powers of aid management units in managing and implementing programs, projects or non-project activities

1. Tasks and powers of aid management units shall be assigned/delegated by managing agencies or aid amount owners under decisions to establish aid management units.

2. To decide on jobs/matters or sign documents within their competence or as authorized by aid amount owners in the course of management and implementation of programs, projects or non-project activities.

3. If unable to perform some jobs in the management, monitoring and supervision of programs, projects or non-project activities, aid management units may hire consultants to perform such jobs with the consent of aid amount owners.

4. To organize job performance and report on results of job performance, covering:

a/ Entering into cooperation, exchanging opinions and working with aid recipients in the management and implementation of programs, projects or non-project activities;

b/ Formulating overall plans, annual plans and quarterly plans on implementation of programs, projects or non-project activities;

c/ Preparing conditions for the implementation of, and implementing, programs, projects or non-project activities;

d/ Performing activities serving bidding and contract management;

dd/ Performing disbursement, and managing finances and assets of programs, projects or non-project activities;

e/ Reporting, monitoring, supervising, and evaluating the implementation of programs, projects or non-project activities;

g/ Preparing conditions for the acceptance testing and handover of outcomes of programs, projects or non-project activities upon their completion; completing the payment, account-finalization, auditing and handover of assets and outcomes of programs, projects or non-project activities; preparing reports on completion and reports on account-finalization of programs, projects or non-project activities; implementing Vietnam’s law and aid treaties and agreements on closure of programs, projects or non-project activities;

h/ Performing other tasks within the framework of programs, projects or non-project activities as assigned or authorized by managing agencies or aid amount owners.

5. To take responsibility before law, managing agencies and aid amount owners within the ambit of their assigned tasks and delegated powers.

Article 61. Forms of implementation of programs/projects/non-project activities

Based on the competent authority’s approval decision, aid treaty or agreement; the approved method of aid implementation; actual conditions, and the capacity of the agencies and units under the managing agency, and the capacity of the aid recipient; and the nature and characteristics of a program/project/non-project activity, the managing agency shall determine the appropriate form of implementation of the program/project/non-project activity, specifically as follows:

1. In case funds are transferred to the aid recipient for self-implementation:

a/ To assign the aid amount owner to carry out procedures for transferring funds to the aid recipient, and manage the funds in accordance with this Decree’s provisions on financial management, the aid treaty or agreement, and relevant regulations;

b/ To assign the aid amount owner to monitor, supervise, examine, evaluate, and report on the, progress and results of implementation by the aid recipient, ensuring efficiency, quality and objectives of Vietnam’s provision of aid.

2. In case the Vietnamese side directly implements and transfers outcomes to the aid recipient:

a/ To organize bidding to select a unit to implement components and activities of the program/project/non-project activity in accordance with the law on bidding, while ensuring adherence to the principle of prioritizing the use of Vietnam’s goods, services, technologies, human resources and contractors as specified in Clause 4, Article 7 of this Decree;

b/ In case it is impossible to apply one of the contractor selection forms or bidding is not required in accordance with law and the aid treaty or agreement, to designate and assign tasks to the agencies and units to implement components and activities of the program/project/non-project activity, ensuring compliance with the regulations on the use of the state budget, state assets, expense norms and quality standards.

Article 62. Formulation, approval and adjustment of overall, annual and quarterly plans for implementation of programs/projects/non-project activities

1. Overall plans for implementation of programs/projects/non-project activities:

a/ An overall plan shall be formulated for the entire duration of implementation of a program/project/non-project activity, which must have the contents on components, items, activities, funding sources (aid and counterpart funds) and the implementation schedule, based on the competent authority’s decision approving the program/project/non-project activity, the aid treaty or agreement, and the outcomes of opinion exchange with the aid recipient;

b/ The aid amount owner shall coordinate with the aid recipient in formulating the overall plan for implementation of the program/project/non-project activity approved by the competent authorities of Vietnam and the aid recipient, and shall adjust the overall plan for implementation of the program/project/non-project activity upon occurrence of a change in actual conditions, and submit it to the managing agency for consideration and approval;

c/ Within 5 working days after approving the overall plan for implementation of the program/project/non-project activity, the managing agency shall send the approval decision together with the overall plan to the Ministry of Finance, related agencies and the aid recipient for monitoring, supervision, examination, evaluation and coordination in implementation of the program/project/non-project activity.

2. Annual plans for implementation of programs/projects/non-project activities:

a/ An annual plan for implementation of a program/project/non-project activity constitutes part of the annual aid plan of the managing agency and part of the overall plan for implementation of a program/project/non-project activity, which must have detailed contents on components, items, activities, funding sources and the implementation schedule in a planning year, and shall be formulated on the basis of the managing agency-approved overall plan for implementation of a program/project/non-project activity, the implementation of the program/project/non-project activity, and the outcomes of opinion exchange with the aid recipient;

b/ The aid amount owner shall coordinate with the foreign partner in formulating an annual plan for implementation of the program/project/non-project activity before the managing agency formulates the annual aid plan, and shall adjust the annual plan for implementation of the program/project/non-project activity upon occurrence of a change in actual conditions in the planning year, and submit it to the managing agency for consideration and approval;

c/ Within 5 working days after approving the annual plan for implementation of the program/project/non-project activity, the managing agency shall send the approval decision together with the annual plan to the Ministry of Finance, related agencies and the aid recipient for monitoring, supervision, examination, evaluation and coordination in implementation of the program/project/non-project activity.

3. Quarterly plans for implementation of programs/projects/non-project activities:

Based on the overall plan and the annual plan, the aid amount owner shall formulate, approve and implement a quarterly plan for implementation of the program/project/non-project activity.

Article 63. Organization of bidding for selection of units to implement programs/projects/non-project activities

The managing agency shall perform the responsibilities of a competent person, and the aid amount owner shall perform the responsibilities of a project owner in accordance with the law on bidding in organizing the bidding for selection of a unit to implement a program/project/non-project activity, while ensuring adherence to the principle of prioritizing the use of Vietnam’s goods, services, technologies, human resources and contractors as specified in Clause 4, Article 7 of this Decree, specifically as follows:

1. The managing agency shall assign the aid amount owner to formulate a contractor selection plan and prepare a bidding dossier and other necessary procedures and documents after the Prime Minister approves the aid provision policy for the project/non-project activity or after the managing agency decides on aid provision (in case the aid provision policy decision is not required).

2. The managing agency shall approve the contractor selection plan after the aid provision is decided for the project/non-project activity.

3. The managing agency shall assign the aid amount owner to organize contractor selection in accordance with the approved contractor selection plan.

4. The aid amount owner shall approve the bidding results and conclude a contract with the contractor.

5. Contractor appointment may be considered for application to emergency projects/non-project activities and other cases in accordance with the law on bidding.

Section 2

IMPLEMENTATION, MONITORING, SUPERVISION, EXAMINATION, EVALUATION OF AND REPORTING ON PROGRAMS/PROJECTS/NON-PROJECT ACTIVITIES

Article 64. Implementation of programs/projects/non-project activities

1. Managing agencies and aid amount owners shall implement programs/projects/non-project activities in accordance with relevant laws, aid treaties or agreements; and aid decisions and aid plans, and plans for implementation of programs/projects/non-project activities approved by competent authorities, ensuring quality, schedule and objectives.

2. For import and export of goods, equipment and vehicles serving the implementation of programs/projects/non-project activities:

a/ Import and export activities must comply with aid treaties or agreements, and laws of Vietnam and aid recipients;

b/ Aid recipients shall facilitate, and complete procedures for, import and export of goods, equipment and vehicles serving the implementation of programs/projects/non-project activities (including procedures for exemption from import duty and other taxes and charges);

c/ Upon the completion of programs/projects/non-project activities, aid amount owners and Vietnamese contractors shall transfer unused goods, equipment and vehicles to Vietnam or liquidate them within the territories or geographical areas of aid recipients in accordance with aid treaties or agreements and the laws of Vietnam and aid recipients.

3. For construction projects implemented by the Vietnamese side within the territories or geographical areas of aid recipients and transferred to the aid recipients:

a/ The aid recipients shall complete procedures for applying for land allocation (for land-using projects), construction permits (when necessary); compensation for site clearance and resettlement support (when necessary); and preparation of construction sites (when necessary);

b/ Construction survey; preparation, appraisal and approval of designs, construction drawings, total estimates and estimates of items; selection of contractors providing services (consultancy, construction, equipment); conclusion and performance supervision of contracts; management of work progress and quality; acceptance testing of completed work volumes; advance payment and payment of investment capital; and construction work warranty and insurance must comply with aid treaties or agreements, and the laws on construction investment management of Vietnam and the aid recipients;

c/ Aid amount owners shall closely coordinate with the aid recipients in managing the implementation of programs/projects, including management of quality, progress, volumes of completed work, occupational safety, and environmental protection, and management of contractors’ performance.

Article 65. Monitoring, supervision and examination of programs/projects/non-project activities

1. State management agencies in charge of aid, managing agencies and aid amount owners shall monitor, supervise and examine the entire process of preparation and implementation of programs/projects/non-project activities based on the approved contents that fall within their respective management.

2. Examination of programs/projects/non-project activities:

a/ State management agencies in charge of aid shall decide to conduct scheduled or unscheduled examination of programs/projects/non-project activities;

b/ Managing agencies shall conduct examination at least once for programs/projects/non-project activities each to be implemented for a duration exceeding 12 months;

c/ Managing agencies shall conduct examination when adjustments to programs/projects/non-project activities lead to changes in location, objective, scale, and an increase in total aid amounts, or in other necessary cases;

d/ Aid amount owners shall examine programs/projects/non-project activities assigned to them for management.

3. The Ministry of Finance shall assume the prime responsibility for, and coordinate with related agencies of Vietnam and aid recipients in, examining, when necessary, the implementation of programs/projects/non-project activities; summarize and report thereon to the Prime Minister; and propose measures to promote implementation and opinion exchange at meetings between Vietnam and aid recipients.

Article 66. Evaluation of programs/projects/non-project activities

1. Evaluation of programs/projects/non-project activities covers initial evaluation, mid-term evaluation, annual evaluation, unscheduled evaluation, and final evaluation carried out by aid amount owners; evaluation results shall be reported to managing agencies.

2. For construction programs and projects, initial evaluation, mid-term evaluation or annual evaluation, and final evaluation shall be carried out. In case of necessity, managing agencies shall assign aid amount owners to carry out other evaluations as specified in Clause 1 of this Article.

3. For projects other than construction projects/non-project activities, final evaluation shall be carried out. In case of necessity, managing agencies shall assign aid amount owners to carry out other evaluations as specified in Clause 1 of this Article.

4. Aid amount owners shall carry out evaluation by themselves or hire qualified and competent consultancy experts or organizations to carry out evaluation.

Article 67. Contents of evaluation of programs/projects/non-project activities

1. Initial evaluation must cover:

a/ Preparation, organization and mobilization of resources for implementation of programs/projects, ensuring compliance with the approved objectives and schedules;

b/ Emerging issues as compared to the time of approval of programs/projects;

c/ Proposal of measures to address emerging issues in line with actual conditions.

2. Mid-term evaluation and annual evaluation must cover:

a/ Consistency of outcomes of programs/projects/non-project activities with aid objectives;

b/ Levels of completion of workload by the time of evaluation as compared to approved plans;

c/ Possibility of completing work on schedule and ensuring objectives and effectiveness;

d/ Proposal of necessary measures, including also adjustments to programs/projects/non-project activities.

3. Final evaluation must covers:

a/ Summarization of the process of management and implementation of programs/projects/non-project activities; outcomes thereof; resources mobilized and used;

b/ Benefits, significance and impacts of programs/projects/non-project activities for Vietnam and aid recipients in terms of socio-economic development, environment and security;

c/ Sustainability and effectiveness in the course of operation of programs/projects/non-project activities;

d/ Lessons learned from the implementation and operation of programs/projects/non-project activities; responsibilities of state management agencies, managing agencies, aid amount owners, and implementing units; responsibilities of related agencies, organizations and individuals of Vietnam and aid recipients; and recommendations.

4. Unscheduled evaluation must cover:

a/ Consistency of outcomes of programs/projects/non-project activities by the time of evaluation as compared to aid objectives;

b/ Levels of completion of workload by the time of evaluation as compared to approved plans;

c/ Identification of unanticipated issues (if any), causes thereof, and responsibilities of related agencies, organizations and individuals;

d/ Impacts and extent of impacts of unanticipated issues on the implementation of programs/projects/non-project activities and the possibility of achieving objectives of programs/projects/non-project activities;

dd/ Proposed necessary measures.

Article 68. Reports on implementation of programs/projects/non-project activities

1. Aid amount owners shall, on a quarterly basis and when necessary, report to managing agencies on the implementation of aid programs/projects/non-project activities, including main results achieved, disbursement results, evaluation results (if any), difficulties, obstacles, and proposed solutions.

2. Managing agencies shall summarize the implementation of programs/projects/non-project activities in order to report on implementation and disbursement of aid plans as specified in Clause 1, Article 55 of this Decree.

Section 3

COMPLETION, ACCEPTANCE TESTING, HANDOVER OF OUTCOMES, AND AUDIT AND ACCOUNT-FINALIZATION OF PROGRAMS/PROJECTS/NON-PROJECT ACTIVITIES

Article 69. Acceptance testing of programs/projects/non-project activities

1. After a program/project/non-project activity has completed the whole of its components, the aid amount owner shall coordinate with the aid recipient in establishing a joint acceptance testing council to carry out acceptance testing.

2. Acceptance testing must comply with aid treaties or agreements, and laws of Vietnam and aid recipients.

3. Organizations and individuals engaged in acceptance testing shall take responsibility for the acceptance testing results they certify in accordance with laws of Vietnam and aid recipients.

Article 70. Handover of outcomes of programs/projects/non-project activities

1. Outcomes of a program/project/non-project activity shall be handed over and put into operation and use after the joint acceptance testing council issues a minutes certifying that the program/project/non-project activity meets the requirements on approved objectives, quality, conditions, standards and effectiveness in accordance with laws of Vietnam and the aid recipient.

2. For a construction work, it may be handed over and put into operation if meeting requirements on construction designs, applicable standards, technical regulations, and regulations on management and use of construction materials of Vietnam and the aid recipient.

3. After the joint acceptance testing minutes is signed, the managing agency shall sign a minutes of handover and receipt of outcomes of the program/project/non-project activity with the aid recipient, and send a copy thereof to the Ministry of Finance, the representative mission of Vietnam in the geographical area of the aid recipient, and related agencies.

4. A dossier of handover and receipt minutes must comprise:

a/ Legal documents related to the program/project/non-project activity;

b/ Legal documents related to implementation process;

c/ A joint acceptance testing minutes, a design dossier, and documents and products related to the program/project/non-project activity;

d/ Economic and technical contents related to the program/project/non-project activity: objectives, scale, main components; implementation duration; initially approved total funds and adjustments (if any);

dd/ Quality evaluation of the program/project/non-project activity;

e/ For a construction program or project handed over to the aid recipient, the dossier must additionally comprise the following documents: designs, as-built drawings, technical infrastructure systems, operation manuals, maintenance process, lists of equipment, spare parts, and substitute supplies, and other relevant documents.

Article 71. Audit and account-finalization of programs/projects/non-project activities

1. Audit and account-finalization of programs/projects/non-project activities must comply with aid treaties or agreements and laws of Vietnam.

2. Within 30 days after a program/project/non-project activity has undergone acceptance testing and been handed over to the aid recipient, the aid amount owner shall make a dossier on account-finalization of the aid amount, covering all lawful expenses within approved designs, total estimates and total expenses of the program/project/non-project activity, and submit them to the managing agency for approval.

3. Within 60 days after receiving the dossier on account-finalization of the aid amount, the managing agency shall examine and approve account-finalization of the aid amount.

4. After approving account-finalization of the aid amount, the managing agency shall send a dossier on account-finalization and related documents (including the audit report) to the Ministry of Finance, the representative mission of Vietnam in the geographical area of the aid recipient, related agencies and the aid recipient.

Chapter VI

TASKS, POWERS AND RESPONSIBILITIES OF AGENCIES AND ORGANIZATIONS IN PROVIDING AND MANAGING AID TO FOREIGN COUNTRIES

Article 72. The Government

1. To uniformly perform the state management of aid provided to foreign countries.

2. To submit to the National Assembly Standing Committee and the National Assembly for decision the adjustment of annual estimates of aid expenditures in accordance with the Law on the State Budget; to report to the National Assembly Standing Committee and the National Assembly on the use of the central budget’s contingencies for aid expenditures in accordance with the Law on the State Budget.

Article 73. The Prime Minister

1. To approve the list of aid provision proposal reports for programs/projects/non-project activities submitted by the Ministry of Finance and the Ministry of Foreign Affairs.

2. To decide on aid provision policy for programs/projects/non-project activities.

3. To approve national 5-year aid schemes and assign annual aid plans and annual estimates to managing agencies.

4. To decide on the use of the central budget’s annual contingencies for aid expenditures in accordance with Point d, Clause 2, Article 47 of this Decree.

5. To assign subordinate agencies to organize implementation, monitoring, examination, evaluation and inspection of the implementation of 5-year and annual aid schemes, and programs/projects/non-project activities; to inspect the implementation of objectives and policies on provision of aid to foreign countries by managing agencies.

Article 74. The Ministry of Finance

To act as the focal-point agency assisting the Government in performing the state management of aid provided to foreign countries, having the following tasks and powers:

1. To promulgate or submit to competent authorities for promulgation legal documents, policies and orientations on aid, principles, criteria and norms for allocation and management of aid; and regulations on financial management and financial operation, disbursement, payment and account-finalization of aid amounts; to provide guidance thereon to managing agencies and aid recipients .

2. To assume the prime responsibility for, and coordinate with related agencies in, reporting to the Prime Minister and the Government on determination of annual aid plans funded by the central budget.

3. To provide managing agencies and aid recipients with notification and guidance on decisions, solutions, policies, orientations and criteria related to aid and aid plans.

4. To consult related agencies for selecting the list of aid provision proposal reports for aid funded by the central budget and report such to the Prime Minister for consideration and decision.

5. To summarize, report and submit to the Prime Minister for the latter to decide and adjust 5-year aid schemes and annual aid plans; and the use of the central budget’s annual contingencies for aid expenditures.

6. To assume the prime responsibility for, and coordinate with related agencies in, appraising aid provision policy reports for programs/projects/non-project activities, and aid plans submitted by managing agencies to the Prime Minister for consideration and approval.

7. To provide opinions on aid provision proposal reports, aid provision policy reports, feasibility study reports for programs/projects/non-project activities, and annual aid plans of managing agencies; and draft agreements and documents on aid.

8. To propose the negotiation and conclusion of aid treaties and agreements.

9. To organize monitoring, examination, supervision, evaluation and inspection of the implementation of aid plans, programs/projects/non-project activities, and other state management tasks related to aid.

10. To act as the focal point for summarizing difficulties and obstacles arising in the course of carrying out procedures, preparation and implementation of programs/projects/non-project activities; to resolve issues involving multiple agencies and organizations; to propose competent authorities to decide on measures to address issues on aid provided to foreign countries. In case of necessity, to assume the prime responsibility for establishing interdisciplinary working delegations to directly work with managing agencies, aid amount owners, aid management units, and related agencies and organizations of aid recipients in order to review, evaluate and promptly resolve obstacles within their competence.

11. To submit to the Prime Minister periodical and unscheduled summary reports on provision, implementation, disbursement and management of aid provided to foreign countries; to propose solutions to overcome difficulties in the course of implementation of programs/projects/non-project activities.

12. To take responsibility before the Prime Minister and the Government for overall effectiveness of aid provided to foreign countries.

13. To act as the managing agency and represent the Government in providing non-project aid and interest rate difference subsidies funded by the central budget.

14. To allocate aid capital from the central budget to managing agencies in accordance with Vietnam’s regulations on state budget management, aid treaties or agreements and this Decree.

15. To carry out account-finalization of total annual aid amounts allocated and actually used according to the approved estimates.

Article 75. The Ministry of Foreign Affairs

1. To guide and support the receipt of aid-related requests from aid recipients through diplomatic channel; to forward requests of aid recipients to responsible agencies, and provide aid recipients with notification and guidance on Vietnam’s solutions, policies, orientations, regulations and criteria related to aid.

2. To coordinate with the Ministry of Finance, related agencies and managing agencies in formulating legal documents, policies, orientations, principles and criteria for aid provision; and 5-year aid schemes; and in negotiating and formulating draft aid treaties and agreements and draft aid documents.

3. To give its opinions on managing agencies’ aid provision proposal reports, aid provision policy reports and feasibility study reports for programs/projects/non-project activities; and draft aid treaties and agreements and draft aid documents.

4. To grant authorization for conclusion of aid treaties and agreements.

5. To monitor and examine the performance of procedures for conclusion and implementation of aid treaties in accordance with law.

6. To coordinate with the Ministry of Finance and related agencies in directing and guiding representative missions of Vietnam within the territories or geographical areas of aid recipients to cooperate with and support Vietnam and aid recipients in implementing and addressing arising issues of programs/projects/non-project activities.

7. To consult related agencies in formulating the list of aid provision proposal reports for extraordinary requirements for aid funds from the central budget and to report such to the Prime Minister for consideration and decision.

8. To act as the managing agency for non-project activities on aid funds from the central budget.

Article 76. The Ministry of Justice

1. To give its opinions on, participate in negotiations on, and appraise, draft aid treaties in accordance with law.

2. To coordinate with the Ministry of Finance, managing agencies and related agencies in formulating legal documents, policies and orientations on aid provision.

3. To give its opinions on managing agencies’ aid provision proposal reports, aid provision policy reports and feasibility study reports for programs/projects/non-project activities; and draft aid treaties and agreements and draft aid documents.

Article 77. Managing agencies

1. To perform the state management of aid within the ambit of their assigned responsibilities in accordance with law.

2. To coordinate with the Ministry of Finance and related agencies in formulating legal documents, policies, orientations, principles and criteria for aid provision; and aid allocation plans to be included in annual aid plans.

3. To provide aid recipients with notification and guidance on decisions, solutions, policies, orientations and criteria related to aid and aid plans.

4. To summarize, process and prepare aid provision proposal reports.

5. To prepare aid provision policy reports, aid documents and feasibility study reports for submission to competent authorities for decision or approval within their competence.

6. To give their opinions on aid provision policy reports, aid documents and feasibility study reports for programs/projects/non-project activities; draft aid treaties and agreements; and aid-related documents.

7. To coordinate with the Ministry of Finance in submitting to competent authorities the negotiation and conclusion of aid treaties and agreements relating to programs/projects/non-project activities of which they act as managing agencies.

8. To prepare, submit to competent authorities, and assign annual aid plans within their competence.

9. To carry out monitoring, examination, supervision, evaluation, inspection and reporting on the implementation of aid plans, aid agreements and programs/projects/non-project activities and the performance of state management tasks on aid within the ambit of their assigned responsibilities.

10. To ensure publicity, transparency and accountability for effectiveness of aid management under programs/projects/non-project activities of which they act as managing agencies and in sectors they take charge of.

Article 78. Ministries, ministerial-level agencies, government-attached agencies, and provincial-level People’s Committees

1. To perform the state management of aid within the ambit of their assigned responsibilities in accordance with law.

2. To coordinate with the Ministry of Finance and related agencies in formulating legal documents, policies, orientations, principles and criteria for aid provision; and plans for inclusion of aid in annual aid plans.

3. To give their opinions on aid provision proposal reports, aid provision policy reports and feasibility study reports for programs/projects/non-project activities; and draft aid treaties and agreements; and aid-related documents.

Article 79. Handling of violations

Agencies, organizations and individuals committing violations of this Decree shall, depending on the nature and severity of violations, be disciplined, administrative sanctioned or examined for penal liability; and, if causing damage, pay compensation in accordance with law.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 80. Organization of implementation

1. 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.

2. The Ministry of Finance shall promulgate legal documents guiding the implementation of this Decree with respect to management regulations and financial operations, disbursement, payment and account-finalization of aid amounts within its competence.

Article 81. Transitional handling

1. Programs/projects/non-project activities that have been approved or are awaiting approval by competent authorities before the effective date of this Decree continue to be implemented based on the contents already approved or awaiting approval by competent authorities. Any adjustments must comply with this Decree.

2. Five-year aid schemes shall be formulated and implemented for the 2026-2030 period.

3. For aid and aid programs/projects/non-project activities within the framework of aid treaties and agreements concluded by the Socialist Republic of Vietnam with aid recipients, if there are differences in the procedures between aid treaties and agreements and this Decree, the provisions of the aid treaties and agreements shall prevail.

4. This Decree’s provisions on the Prime Minister’s competence in considering and deciding on the use of the central budget’s contingencies for provision of aid to foreign countries take effect on January 1, 2026. The competence to decide on the use of the central budget’s contingencies from the effective date of this Decree to December 31, 2025, must comply with Clause 3, Article 10 of Law No. 83/2015/QH13 on the State Budget, and Clause 3, Article 7 of the Government’s Decree No. 163/2016/ND-CP of June 21, 2016, detailing the implementation of a number of articles of the Law on the State Budget.

Article 82. Implementation provisions

1. This Decree takes effect on the date of its signing.

2. If the legal documents referred to in this Decree are replaced, amended or supplemented, the replacing, amending or supplementing documents shall apply.-

On the behalf of the Government
For the Prime Minister
Deputy Prime Minister
BUI THANH SON

* The appendices to this Decree are not translated.