MINISTRY OF FINANCE | SOCIALIST REPUBLIC OF VIETNAM |
No.28/2018/TT-BTC | Hanoi, March 28, 2018 |
CIRCULAR
GUIDING ESTABLISHMENT, MANAGEMENT AND USE OF INDUSTRIAL ENCOURAGEMENT FUNDING
Pursuant to the Law on State Budget dated June 25, 2015;
Pursuant to Decree No.163/2016/ND-CP dated December 21, 2016 of the Government on elaboration of the Law on State Budget;
Pursuant to Decree No.87/2017/ND-CP dated July 26, 2017 of the Government on functions, duties, rights and organizational structure of the Ministry of Finance;
Pursuant to Decree No.45/2012/ND-CP dated May 21, 2012 of the Government on industrial encouragement;
At the request of Director General of the Department of Public Expenditure;
The Minister of Finance promulgates a Circular provides guidelines for establishment, management and use of industrial encouragement funding.
Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Circular provides guidelines for establishment, management and use of industrial encouragement funding as prescribed in Decree No.45/2012/ND-CP dated May 21, 2012 of the Government on industrial encouragement (hereinafter referred to as Decree No.45/2012/ND-CP).
Article 2. Regulated entities
1. Organizations and individuals directly investing in industrial production and handicraft production in districts, townships, towns, communes and wards affiliated to type 2 and 5 cities or wards affiliated to type 1 cities that are converted from communes within previous 5 years including small and medium-scale enterprises, cooperatives, cooperative groups, business households founded and operated under provisions of laws (hereinafter referred to as rural industrial facilities)
2. Industrial production facilities adopting cleaner production methods
3. Domestic and foreign organizations and individuals engaged in management and performance of industrial encouragement activities or services.
Article 3. Funding for industrial encouragement activities
1. Funding from central budget for industrial encouragement activities will be provided and managed by the Ministry of Industry and Trade.
2. Funding from local budget for industrial encouragement activities will be provided and managed by People’s Committees of provinces and centrally-affiliated cities (hereinafter referred to as provincial People’s Committees) and People's Committees of communes or districts.
3. Apart from above-mentioned funding, the Ministry of Industry and Trade, provincial People's Committees, People's Committees of districts and communes take responsibility to mobilize other legal funding sources, combine projects included in National target programs, Target programs with those in Socio-economic development programs for the purpose of successfully fulfilling the objectives of industrial encouragement programs.
Article 4. Rules on use of industrial encouragement funding
1. National industrial encouragement funding (hereinafter referred to as national funding) will be managed and provided by the Ministry of Industry and Trade for regional and national rural industrial development encouragement activities; key national industrial encouragement schemes that positively affect or foster rural industry development. Criteria for determining national and regional industrial encouragement activities as well as key national industrial encouragement schemes shall be specified by the Minister of Industry and Trade.
Local industrial encouragement funding (hereinafter referred to as local finding) will be managed and provided by People's Committees of all levels for meaningful rural industrial development encouragement activities in provinces that are consistent with provincial planning and strategies.
2. Industrial encouragement assignments and schemes eligible for funding will be selected by the Ministry of Industry and Trade (for national funding) or People's Committees of provinces, districts or communes (for local funding) or through bidding in accordance with provisions in force.
Article 5. Requirements for receiving industrial encouragement funding
Organizations and individuals are eligible to be funded for industrial encouragement if meeting the following requirements:
1. Industrial encouragement activities stated in the scheme and sectors and professions must be consistent with Article 4 and the list of sectors and professions eligible for industrial encouragement policies prescribed in Article 5 of Decree No.45/2012/ND-CP, respectively.
2. Assignments and schemes must be approved by competent authorities, to be specific, the Ministry of Industry and Trade for national industrial encouragement programs and People's Committees of provinces, districts or communes for local industrial encouragement programs.
3. The organization or individual has invested in or committed to provide funding for the scheme approved by competent authorities (exclusive funding from state budget).
4. The organization or individual running the industrial encouragement scheme or beneficiary of such scheme the not funded by any state authority commits to the same expenditure from industrial encouragement funding.
5. Industrial encouragement service provider or other service providers have experiences and capacity to perform industrial encouragement activities, exclusive activities done directly by supervisory authorities.
Chapter II
EXPENDITURE AND MAXIMUM EXPENDITURE
Article 6. Expenditure on industrial encouragement activities
Industrial encouragement funding is used for:
1. short-term profession training or handing-down with the combination between lesson and practice time as required by rural industrial facilities for the purpose of creating jobs and improving vocational skills for the labors as well as training skilled workers and handicraft workers to form a group of trainers serving the program for teaching, training or handing down profession in rural areas.
2. consultancy, training, teaching activities, seminars, forums; sightseeing and survey for learning domestic and foreign experiences in pursuit of increasing business management capacity and capacity to apply clearer production methods in industrial production; training startup companies; founding rural industrial production enterprises as well as expanding consumption market and export market of rural industrial products
3. developing a technical demonstration model in industrial and handicraft production; establishing a model of pilot settlement of application of clearer production methods; applying advanced machines and equipments as well as production technology line and transferring technologies, scientific and technical advances into industrial and handicraft production
4. organizing selection of representative rural industrial products; fairs and exhibitions of rural industrial products and handicraft products as well as assisting rural industrial facilities in participating in such fairs and exhibitions building and registering trademark, assisting in investment in showrooms for product introduction and promotion in industrial encouragement centers and rural industrial facilities and other trade promotions activities
5. supporting consultancy activities such as preparation of plans for investment and marketing; management of production-finance-accounting-personnel; enterprise foundation; partnership in business production; model and package designing; application of new technologies and equipments; instructions provided for organizations and individuals to get access to investment incentive policies, policies on land, science and technology, finance-credit and other incentive policies issued by the State
6. setting television program and radio broadcast; publishing newspapers and books; collecting data, making websites and issuing leaflet as well as developing other public media concerning industry and trade development
7. assisting in joint ventures, partnership and cooperation in economics and development of industrial clusters and relocation of facilities that cause environmental pollution, specifically as follows:
a) assisting rural industrial facilities in founding associations or groups of profession and building cluster collaboration of industrial enterprises
b) preparing detailed planning; building infrastructure; organizing conferences, seminars and forums for attracting investment in industrial cluster development
c) providing advice and support loan interest for rural industrial facilities causing environmental pollution to relocated into industrial clusters or industrial areas
d) repairing and reforming environmental pollution control system in industrial clusters or rural industrial facilities
8. international cooperation in industrial encouragement, including:
a) preparing programs, schemes and plans for international cooperation in industrial encouragement and clearer production
b) exchanging and learning experiences in industrial encouragement works, industrial development encouragement, industrial clusters and clearer production with foreign organizations and individuals in accordance with provisions of Vietnam laws through conferences, seminars and forums
c) increasing capacity and improving knowledge and skills for officials in charge of industrial encouragement works through international cooperation programs and schemes for oversea studying
9. increasing capacity to manage and perform industrial encouragement activities, including:
a) preparing programs, documents and training as well as improving professional knowledge and skills for officials in charge of industrial encouragement works
b) organizing domestic programs for surveying and learning experiences; theme seminars; conferences about evaluation of industrial encouragement activities; establishing, maintaining and popularizing data systems as well as websites about industrial encouragement and clearer production
c) refining infrastructure, equipments and instruments used in national industrial encouragement centers in regions and provincial industrial encouragement centers; remuneration for collaborators for maintaining industrial encouragement collaborator network
d) preparing industrial encouragement program for each period and annual industrial encouragement plans
dd) examining, supervising and providing guidelines for running industrial encouragement programs or plans
10. covering other expenses serving industrial encouragement activities
Article 7. General maximum expenditure
Organizations and individuals using industrial encouragement funding must comply with expenditure regime and restriction in force issued by competent regulatory agencies. This Circular provides detailed guidelines for the following maximum expenditure:
1. Expenditure on development of training programs, syllabuses and documents for industrial encouragement and technical introduction and instructions, knowledge dissemination and increase in capacity to apply clearer production methods in accordance with Circular No.123/2009/TT-BTC dated June 17, 2009 of the Ministry of Finance which specifies expenditure on developing program framework and writing training programs and syllabuses used in universities, colleges and vocational training facilities.
2. Expenditure on training and handing down profession in accordance with Circular No.152/2016/TT-BTC dated October 10, 2016 of the Ministry of Finance which prescribed the management and use of funding for primary training programs and less than 3-month programs (including allowances for meals and transportation during the training provided for skilled workers and handicraft workers who take up advanced study to become vocational teachers)
3. Expenditure on conferences, seminars and forums prescribed in Circular No.40/2017/TT-BTC dated April 28, 2017 of the Ministry of Finance on business travel allowances and conference expenditure
4. Expenditure on sightseeing, experience learning, surveys, fairs and exhibitions, seminars and forums in foreign countries prescribed in Circular No.102/2012/TT-BTC dated June 21, 2012 of the Ministry of Finance on business travel allowances for state officials and employees who take a short-term business trip overseas funded by state budget
5. Expenditure on programs for exchanging and learning experiences in industrial encouragement works, industrial development encouragement, industrial cluster management and clearer production with foreign organizations and individuals through conferences, seminars and forums in Vietnam prescribed in Circular No.01/2010/TT-BTC dated January 06, 2010 of the Ministry of Finance which specifies the regime for expenditure on reception of foreign guests working in Vietnam, international seminars and conferences in Vietnam as well as reception of domestic guests
6. Expenditure on contests and campaigns for industrial encouragement activities prescribed in Circular No.55/2013/TT-BTC dated May 06, 2013 of the Ministry of Finance which stipulated the management and use of funding sources for the scheme for creating a cultural environment of employees working in industrial zones to 2015 with vision towards 2020
7. Expenditure on training classes for improving management capacity and capacity to adopt clearer production methods in industry; training, broadening and sharpening professional knowledge and skills for teachers and officials in charge of industrial encouragement works prescribed in Circular No.139/2010/TT-BTC dated September 21, 2010 of the Ministry of Finance on regulations on cost estimate making, management and use of funding from state budget for training officials and public employees.
8. Expenditure on training courses for startup and business management prescribed in Joint Circular No.04/2014/TTLT-BKHDT-BTC dated August 13, 2014 of the Ministry of Planning and Investment and Ministry of Finance which provided guidelines for training human resources applied to small and medium-scale enterprises
9. Expenditure on application of information technology prescribed in Circular No.194/2012/TT-BTC dated November 15, 2012 of the Ministry of Finance which provided guidelines on the maximum expenditure on electronic information for maintaining operations of authorities and entities funded by state budget
10. Expenditure on hiring experts prescribed in Circular No.02/2015/TT-BLDTBXH dated January 12, 2015 of the Ministry of Labor, War Invalids and Social Affairs on salaries of domestic consultants as the basis for making cost estimate of contracts for procurement of the advisory service provision in the form of fixed-term contract funded by state budget
11. Expenditure on reforming infrastructure and equipments used in national industrial encouragement centers in regions and provincial industrial encouragement centers; the maximum expenditure subject to the cost estimate will be approved by competent authorities.
Article 8. The maximum expenditure on national industrial encouragement
1. Expenditure on founding rural industrial production enterprises in localities having poor conditions and seriously poor conditions for socio-economic development in accordance with provisions of laws, including expenditure on finalizing the business plan and enterprise establishment plan as well as expenses relating to enterprise registration; the maximum expenditure is up to VND 10 million per enterprise.
2. Expenditure on developing a technical demonstration system, specifically as follows:
a) Expenditure on demonstration systems for popularizing new technologies as well as creating new products shall include expenses incurred on building and purchasing machines and equipments; completing the document on technology and production process serving the technical demonstration; the maximum expenditure is equal to 30% of expenses but not excess VND 1 million per model.
b) Expenditure on effective models of rural industrial facilities that need to be popularized as good examples to other organizations and individuals including expenses incurred on completing documents on technology process and finalizing the production process serving technical demonstration; the maximum expenditure is up to VND 100 million per model.
3. Expenditure on establishing a model of pilot settlement of adopting clearer production methods in industry applied to industrial production facilities including expenses of alternative raw materials, fuels and materials, renewing machines, equipments and technological line; training for increasing management capacity; training for improving the craftsmanship of workers; consuming products; completing documents on technology line and production line serving technical demonstration The maximum expenditure is equal to 30% of expenses but not excess VND 500 million per model.
4. Expenditure on applying advanced machines and equipments, transferring technologies and technical science advances in industrial and handicraft production; the maximum expenditure is up to 50% of expenses but not excess VND 300 million per facility. With regard to expenditure on technology line, the maximum expenditure is up to 1.5 times the maximum expenditure on applying advanced machines and equipments, transferring technologies and technical science advances in industrial and handicraft production.
5. Expenditure on fairs and exhibitions of rural industrial products, domestic handicraft products including expenses of hiring stall, propaganda and activities of the board of organization of fairs and exhibitions based on the bid or the price approved by competent authorities when it is not eligible for bidding
For the case in which rural industrial facilities participate in other domestic fairs and exhibitions, the maximum expenditure is 80% of the price for hiring a stall.
6. Expenditure on organization and participation in oversea fairs and exhibitions for rural industrial facilities Funding 100% for house lease, stall building and designing, general decoration of Vietnam areas including national stall, if any; funding for inauguration in case of Vietnam fairs and exhibitions including expenses of letter of invitation, reception, decoration, sound, lights and propaganda; seminars and product display including expenses incurred on hall lease, equipments, decoration and inauguration and funding for officials running the program Expenses shall be calculated based on the bid or the price approved by competent authorities when it is not eligible for bidding.
7. Expenditure on purchasing flight tickets for rural industrial facilities going abroad for surveying and learning experiences. The number of beneficiary of the funding will be decided by competent authorities.
8. Expenditure on selecting and granting certificate for regional and national representative rural industrial products
a) Expenditure on selecting and granting certificate for regional and national representative rural industrial product. The maximum expenditure is up to VND 200million per time for regional products and VND 400 million per time for national products.
b) Expenditure on award for representative industrial products in rural areas selected including expenditure on certificates, frames, commemoratives and bonuses The award for regional representative products is up to VND 5 million per product and up to VND 10 million per product for national representative products.
9. Expenditure on building and registering trademark of rural industrial products; the maximum expenditure is up to VND 35 million per trademark.
10. Expenditure on advisory and assistance provision for rural industrial facilities in making plans for investment and marketing; management of production, finance, accounting and personnel; model and package designing as well as application of new technologies and equipments The maximum expenditure is up to 50% of expenses but not excess VND 35 million per facility.
11. Expenditure on developing television programs and radio broadcast; publishing newspapers, books, leaflets and other forms of public media The maximum expenditure shall be determined under the contract between the propaganda agency and mass media body in the form of bidding or based on the unit price approved by competent authorities in case of assignment or order.
12. Expenditure on founding regional and national groups, associations of sectors and professions The maximum expenditure is up to 30% of foundation expense but not excess VND 70 million per regional group or association and VND 100 million per national group or association.
13. Expenditure on forming cluster collaboration for industrial enterprises; the maximum expenditure is up to 50% of the expense but not excess VND 150 million per collaboration cluster.
14. Expenditure on support for loan interest for rural industrial facilities causing environmental pollution relocated to industrial clusters or industrial zones after such facilities finish the investment. The maximum expenditure is up to 50% of interest of loans for investment in houses, premises, machines, equipments and technology line in the first 2 years but not excess VND 500 million per facility. Interest support shall be applied to medium and long-term loans in Vietnam dong repaid in repayment period or prior to the repayment period but not applied to overdue loans according to loan contracts. The lowest loan interest rate in the interest frame shall be applied to loans for investment serving business operation having same repayment period in the same stage of loans from the Development Bank of Vietnam.
15. Expenditure on repair and reform of environmental pollution control system in industrial clusters or rural industrial facilities; the maximum expenditure is up to 30% of expenses but not excess VND 300 million per facility.
16. Expenditure on repair and reform of environmental pollution control system in industrial clusters; the maximum expenditure is up to 30% of the expense but not excess VND 1.500 million per industrial cluster.
17. Expenditure on preparing detailed planning for industrial clusters; the maximum expenditure is up to 50% of the expense but not excess VND 500 million per industrial cluster.
18. Expenditure on investment in construction of infrastructure of industrial clusters including expenditure on grade land, internal roads, systems of water provision and water drainage and environmental pollution control systems in industrial clusters; the maximum expenditure is up to VND 6.000 million per industrial cluster.
19. Expenditure on training classes including:
a) expenditure on training for improving craftsmanship of works prescribed in Circular No.152/2016/TT-BTC dated October 17, 2016 of the Ministry of Finance on management and use of funding for primary training course and less than 3-month-training course.
b) expenditure on training skilled workers and craftsman for maintaining and developing profession as well as forming a group of teachers serving the program for training profession, improving craftsmanship and handing down profession Maximum expenditure subject to the cost estimate will be approved by competent authorities.
20. Expenditure on remuneration for industrial encouragement collaborators: the maximum expenditure is up to 1 times basic salary/person/month.
21. Expenditure on showrooms for introducing and promoting products at national industrial encouragement centers in regions and rural industrial facilities
a) Expenditure on management instruments, machines, equipments used in showrooms of national industrial encouragement centers in regions. The maximum expenditure is up to VND 500 million per showroom.
b) Expenditure on primary management instruments and equipments used for display in rural industrial facilities whose products are deemed national representative. The maximum expenditure is up to VND 70 million per showroom.
b) Expenditure on primary management instruments and equipments used for display in rural industrial facilities whose products are deemed regional representative. The maximum expenditure is up to VND 50 million per showroom.
22. Expenditure on management of industrial encouragement schemes
a) The authority in charge of industrial encouragement funding management may provide up to 1.5% of annual industrial encourage funding by competent authorities for preparing schemes and programs; examination, supervision and inspection including expenditure on experts and labor lease (if any); extra work as regulated; stationery; telephones, post, water and electronic provisions; business travel, petrol and vehicles for examination (if any); appraisal for selection and inspection of industrial encouragement programs or schemes and other expenditure (if any). Expenditure purposes and funding will be decided by competent authorities.
b) With regard to organization performing national industrial encouragement services: The organization running the industrial encouragement program may use 3% of cost estimate of such program (up to 4% for programs run in localities having poor conditions and seriously poor conditions for socio-economic development and poor districts in accordance with regulations issued by the Government) to cover expenses of management, instruction, supervision and other expenses (if any).
23. The priority maximum funding for programs, schemes prescribed in Clause 1 and 2 in Article 6 of Decree No.45/2012/ND-CP approved by the Ministry of Industry and Trade that encourages organizations and individuals to invest in industry and handicraft development as well as apply clearer production methods in localities and priority sectors and professions is up to 1.2 times the maximum funding mentioned above.
Article 9. Maximum expenditure on local industrial encouragement
1. Pursuant to Decree No.45/2012/ND-CP and maximum expenditure prescribed in this Circular, provincial People’s Committees shall make a regulation on management of local funding and stipulate the maximum expenditure on local industrial encouragement activities suitable for local budget balance capacity.
2. Depending on the local reality and local budget, provincial People's Committees submit other regulations and maximum expenditure apart from that prescribed in this Circular which are suitable for the local reality to provincial People’s Councils.
Chapter III
PREPARING, IMPLEMENTING FINAL ACCOUNTS
Article 10. Preparing and implementing final accounts
Preparation and implementation of final accounts for funding from state budget for industrial encouragement activities shall comply with provisions of the Law on State Budget and documents guiding the enforcement of such Law and regulations in this Circular.
Article 11. Making and allocating cost estimate
1. With regard to national funding
a) According to the results upon the examination of state budget cost estimate provided by the Ministry of Finance; industrial encouragement program approved by competent authorities and maximum expenditure prescribed in this Circular, the Ministry of Industry and Trade shall make annual cost estimate of national funding then consolidate such cost estimate into cost estimate made for state budget by such Ministry and send it to the Ministry of Finance which is finally submitted to the Government in accordance with regulations in force.
b) According to the assigned cost estimate, the Ministry of Industry and Trade shall assign detailed industrial encouragement program to entities as prescribed in this Circular and send the assignment report to the Ministry of Finance for inspection in compliance with regulations in force.
National funding shall be allocated to entities making cost estimate affiliated to the Ministry of Industry and Trade based on the cost estimate made for assigned industrial encouragement program.
2. With regard to local funding
a) According to the examination results provided by competent authorities; industrial encouragement program approved by competent authorities and maximum expenditure regulated by provincial People's Committees, the Department of Industry and Trade or industrial encouragement centers shall make annual cost estimate of local funding then consolidate such cost estimate into the cost estimate of state budget made by the Department of Industry and Trade and send it to the Department of Finance which is finally consolidated into local budget cost estimate and submitted to provincial People’s Committees in accordance with regulations in force.
b) According to the assigned cost estimate, the Department of Industry and Trade shall allocate funding for detail local industrial encouragement programs to entities running such programs as prescribed and send the allocation report to the Department of Finance for inspection in compliance with regulations in force.
c) The making and allocation of local funding cost estimate for programs run in districts or communes of provinces will be decided by provincial People's Committees in consistent with local industrial encouragement activities and the Law on State Budget.
Article 12. Implementing cost estimate
1. According to state budget cost estimate assigned by competent authorities, entities running programs shall submit applications and documents to the State Treasury where the transaction is conducted for management.
2. The State Treasury shall control and cover all expenses of industrial encouragement schemes as prescribed in Circular No.161/2012/TT-BTC dated October 02, 2012 of the Ministry of Finance on regime for controlling and settling Government expenditure through State Treasury and Circular No.39/2016/TT-BTC dated March 01, 2016 of the Ministry of Finance which amended the former Circular and amended or replaced documents (if any). Especially, the advance provided for industrial encouragement schemes shall be up to 70% of total industrial encouragement funding under the contract.
Article 13. Audit and final accounts preparation
1. Funded entities shall take responsibility to audit and prepare final accounts for funding provided for industrial encouragement schemes in type 280 in clause 309 "industrial encouragement activities" in the equivalent chapter of State Budget List.
2. With regard to industrial encouragement schemes or assignments not carried out under the contract between the entity running such scheme and presiding authority, documents as the basis for payment and preparing final accounts that are kept at the presiding authority include: agreement on completing assignment with detailed cost estimate of funding approved by competent authorities; minutes of contract inspection and liquidation; payment order or payment note and other relevant documents as regulated by the Ministry of Industry and Trade. Expenditure documents of the entity carrying out industrial encouragement assignments will be kept at such entity.
3. Entities receiving industrial encouragement funding must prepare final accounts for the funding used in a year and submit it to the Ministry of Industry and Trade (for national funding) and the Department of Industry and Trade (for provincial funding). Final accounts prepared for funding used in a year will be submitted to finance authority at the same level for appraisal by the Ministry and Department of Industry and Trade. The making of report, time for submitting and approving such report must comply with regulations in force.
Management and allocation of local funding for programs run in districts or communes will be stipulated by provincial People's Committees in consistent with local industrial encouragement activities.
Chapter IV
IMPLEMENTATION
Article 14. Examination, supervision and report
1. The Ministry and Department of Industry and Trade must cooperate with the finance authority at same level in periodically and irregularly examining, supervising and assessing the progress of scheme running; ensuring industrial encouragement funding is managed and used economically and effectively for right purposes.
2. The Ministry of Industry and Trade must supervise and assess to make periodical reports of performance of nationwide industrial encouragement assignments or schemes then send it to the Prime Minister.
3. Provincial People’s Committees take responsibility to supervise, assess and submit a report of local industrial encouragement activities to the Ministry of Industry and Trade every 3 months.
Article 15. Implementation
1. This Circular comes into force from May 11, 2018.
2. Joint Circular No.26/2014/TTLT-BTC-BCT dated February 18, 2014 of the Ministry of Finance and Industry and Trade which provided guidelines on establishment, management and use of national funding and local funding will run out of effect from the day on which this Circular comes into force.
3. If documents mentioned in this Circular are amended or replaced, such amended or replaced documents will prevail.
4. Timely notify the Ministry of Finance for appropriate adjustment if any question arises during the implementation./.
| PP. MINISTER |
---------------
This document is handled by Vinas Doc. Document reference purposes only. Any comments, please send to email: [email protected]