Decree No. 242/2025/ND-CP on management and use of official development assistance (ODA) and concessional loans

 

DECREE

MANAGEMENT AND USE OF OFFICIAL DEVELOPMENT ASSISTANCE (ODA) AND CONCESSIONAL LOANS

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

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

Pursuant to the Law No. 83/2015/QH13 on State Budget and the Law No. 89/2025/QH15 on State Budget;

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

Pursuant to the Law No. 50/2014/QH13 on Construction amended by the Law No. 62/2020/QH14;

Pursuant to the Law on Management and Investment of State Capital in Enterprises No. 68/2025/QH15;

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

Pursuant to the Law on Management and Use of Public Assets No. 15/2017/QH14;

Pursuant to the Law on Management of Public Debts No. 20/2017/QH14;

Pursuant to the Law on Investment No. 61/2020/QH14;

Pursuant to the Law on Enterprises No. 59/2020/QH14 amended by the Law No. 76/2025/QH15;

Pursuant to the Law on Public – Private Partnership Investment No. 64/2020/QH14;

Pursuant to the Law on Environmental Protection No. 72/2020/QH14;

Pursuant to the Law on Science, Technology (amended) and innovation No. 93/2025/QH15;

Pursuant to the Law on amendments to the Law on Planning, the Law on Investment, the Law on Public-Private Partnership Investment and the Law on Bidding No. 57/2024/QH15;

Pursuant to the Law on Public Investment No. 58/2024/QH15;

Pursuant to the Law on amendments to Law on Bidding, Law on Public-Private Partnership Investment, Law on Customs, Law on Value-Added Tax, Law on Export and Import Duties, Law on Investment, Law on Public Investment, and Law on Management and Use of Public Property No. 90/2025/QH15;

At the request of the Minister of Finance;

The Government promulgates Decree on management and use of official development assistance (ODA) and concessional loans.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree provides for management and use of official development assistance (ODA) and concessional loans granted by foreign governments, international organizations, inter-government or international organizations, governmental organizations authorized by foreign governments (hereinafter referred to as “foreign donors”) to the State or the Government of Socialist Republic of Vietnam.

Article 2. Regulated entities

This Decree applies to authorities, organizations and individuals that participate in or are related to management and use of ODA and concessional loans granted by foreign donors, and reciprocal capital on the Vietnam’s side.

Article 3. Interpretation of terms

For the purposes of this Decree, the terms below shall be construed as follows:

1. Steering Committee for program or project funded by ODA and concessional loans granted by a foreign donor (hereinafter referred to as “Steering Committee”) means an organization established by an authority managing a program/project funded by ODA or concessional loans (hereinafter referred to as “program/project”) in which an authorized representative of the relevant authority participates to take control of, cooperate in, and supervise the execution of the program/project. Where necessary, under an agreement with the foreign donor, the Steering Committee may include the foreign donor’s representative.

2. Unit managing program or project funded by ODA and concessional loans granted by a foreign donor (hereinafter referred to as “Project Management Unit”) means an organization established to help the managing authority or the project owner in managing the execution of one or some programs/projects.

3. Program means a series of activities and projects funded by ODA or concessional loans that are interrelated and might be related to one or some different sectors, industries, territories or subjects with a view to achieving one or some targets, and is executed in one or several phases.

4. Program associated with a policy framework means a program that is subject to conditions for disbursement of ODA or concessional loans granted by foreign donors associated with the commitment of Vietnam’s government to building and implementing policies, regulations, solutions for socio-economic development in accordance with the scale and schedule agreed upon among the parties.

5. Regional or global program/project (hereinafter referred to as “regional program/project”) means a program/project that is sponsored on a global scale or for which aid is received by a group of nations in the same region or different regions to engage in cooperation in achieving certain targets for the benefits of participants and in the common interests of the whole region or world. Vietnam’s participation in such program/project can exist in either form as follow:

a) Participation in one or some activities readily designed by the foreign donor and embraced in the regional program/project;

b) Execution of operations for which aid is provided for Vietnam in order to develop and execute the program/project within the framework of the regional program/project.

6. Sectoral approach program means a program funded by ODA or concessional loans in which the foreign donor provides assistance according to the development program of an industry or sector in order to ensure concerted, sustainable and effective development of such industry or sector.

7. Authority managing a program/project/non-project funded by ODA and concessional loans (hereinafter referred to as “managing authority”) means a central authority of a political organization; the People’s Supreme Procuracy; the People’s Supreme Court, an authority of the National Assembly; the National Assembly’s Office; the State Audit Office; the President Office, a Ministry, ministerial authority or Governmental authority, the People’s Committee of a province or city (hereinafter referred to as provincial People’s Committee); the central authority of Vietnamese Fatherland Front, a socio-political organization, socio-political-professional organization, or socio-professional organization that performs duties assigned by a competent state authority, state-owned enterprises, other authorities, organizations and enterprises assigned by competent state authorities to execute public investment projects and duties in writing.

8. Project owner means an authority or organization assigned to directly manage an investment project, program, technical assistance project, or non-project funded by ODA and concessional loans granted by a foreign donor.

9. Domestic financial mechanism applied to a program/project funded by ODA/concessional loan (hereinafter referred to as “domestic financial mechanism”) means regulations on the use of ODA and concessional loans from the state budget for the program/project, including:

a) Full grant of 100% of the loan proceeds;

b) Grant and partial on-lending at the predetermined rate;

c) Full on-lending.

10. Project means a set of proposals that correlate in order to achieve one or more specified goals, and is implemented in a specified area within a predetermined period and based on defined resources.

Technical assistance project means a project aimed to assist in study into policies, institutions, professions, improvement of capacity through activities, such as provision of domestic and foreign experts, training, provision of equipment and materials, study visits, trips, domestic and overseas conventions, provision of equipment, development of demonstration model, preparation and support for execution of the investment project. Technical assistance projects are comprised of independent technical assistance projects and technical assistance projects making preparations for investment projects.

11. International treaty on ODA or concessional loans means an international treaty defined by the Law on Treaties on receipt, management and use of ODA and concessional loans, which can be either:

a) Framework international treaty on ODA or concessional loan, which is an international convention related to a strategy, policy and framework for cooperation, prioritized fields; principles and standards binding upon the provision and use of ODA or concessional loans; commitment on ODA or concessional loans for one or several years, and other matters agreed upon between its signatories;

b) Specific international treaty on ODA or concessional loan, which is an international convention on specific matters related to targets to be attained from, activities involved in, duration for implementation thereof, achievements; conditions for sponsoring, capital, capital structure, financial requirements of a loan and loan repayment schedule; management formalities; duties, responsibilities and powers of the parties towards management of the program/project funded by ODA or concessional loan, and other matters agreed upon between the signatories.

12. Agreement on ODA or concessional loan means a written arrangement on ODA or concessional loan concluded in the name of the Government of Socialist Republic of Vietnam and is not an international treaty. Such an agreement can be either:

a) A framework agreement, which is an agreement related to a strategy, policy and framework for cooperation, prioritized fields; principles and standards binding upon the provision and use of ODA or concessional loans; commitment on ODA or concessional loans for one or several years, and other matters agreed upon between its signatories;

b) A specific agreement, which is an agreement on ODA or concessional loan related to targets to be attained from, activities involved in, duration for implementation thereof, attained outcomes; conditions for sponsoring, capital, capital structure, financial requirements of a loan and loan repayment schedule; management formalities; duties, responsibilities and powers of the parties towards management of execution of the program/project funded by ODA or concessional loan, and other matters agreed upon between the signatories.

13. Budget support means a method of provision where ODA or concessional loan is transferred directly to the state budget, managed and used in accordance with state budget regulations and procedures in order to achieve set targets in agreement with the foreign donor. Budget support can be general budget support or central budget support given to a national target program approved by the competent authority.

14. Service bank means a bank selected to perform business transactions for ODA or concessional loan-funded projects.

15. Non-project means donation of money, objects, goods and experts (including volunteer experts), at one time or on separate occasions, and provision of inputs for organization of conferences and associations, seminars, research, surveys, and training.

16. Written agreement on guidelines for participation in a regional program/project means a written notification given by a competent authority of its consent to guidelines for participation in the regional program/project, including name of the program/project; donor, foreign co-donor; name of the managing authority. The written agreement on guidelines for participation in the regional program/project serves as a basis for the competent authority to approve document of the regional program/project intended for Vietnam (if any).

17. Document of a technical assistance project or non-project funded by the ODA grant (hereinafter referred to as “project document”) means any document that describes the context, necessity, targets, content, primary activities, results, execution duration, expected economic, social and environmental effects, total capital, capital sources and structure, other resources, sponsoring method, a foreign donor’s conditions (if any), approaches for management of execution of the project approved by the managing authority as a basis for execution of the technical assistance project or non-project.

18. ODA or concessional loan means capital provided by a foreign donor for the State or the Government of Socialist Republic of Vietnam to assist in development, assurance of welfare and social security, which is either:

a) ODA grant, which is an ODA financing, the refund of which to the foreign donor is not required, and which is provided in the form of an independent project or in combination with investment projects funded by ODA or foreign concessional loans;

b) ODA loan, which is a foreign loan with at least 35% grant element if the loan is tied to mandatory procurement of goods or services as required by the foreign donor, or at least 25% grant element if it is an untied aid. Calculation of the grant element is specified in Appendix I hereto;

c) Concessional loan, which is a foreign loan that sets terms and conditions that are more favorable than those of a commercial loan, but has the grant element of which is lower than that of an ODA loan mentioned in point b hereof.

19. Reciprocal capital means capital contributed on the Vietnam’s side (in cash or in kind) in a program/project funded by ODA or concessional loan in order to prepare for, execute and manage the program/project. Reciprocal capital is provided by the central government budget, the local government budget or the project owner, or contributed by the beneficiary, or other lawful capital source.

20. Mixed capital means capital combined from various sources of ODA and concessional loans with different levels of concession to improve the technical and financial capacity in various forms to increase the grant element of loans for a program/project.

21. Unused fund is the amount of ODA or concessional loan from the foreign donor that comes into existence during the period of implementation of a program or project, including post-bidding excess capital, excess capital arising due to exchange rate changes, unused reserve capital and other excess funds.

22. Emergency aid means an ODA or concessional loan provided to Vietnam by the foreign donor for relief and mitigation of natural disaster consequences that are not covered by the Government’s regulations on acquisition, management and utilization of international emergency aid for natural disaster relief and recovery; disaster relief, disease prevention; performance of urgent national defense, security and diplomatic tasks in accordance with decisions of competent authorities.

Article 4. Methods for provision of ODA and concessional loans

Methods for provision of ODA and concessional loans include:

1. Program.

2. Project.

3. Non-project.

4. Budget support.

Article 5. Priority use of ODA and concessional loans

1. ODA grants shall be prioritized for use to implement socio-economic infrastructure development and capacity building programs/projects; prevent, combat, mitigate the risk of natural disasters, provide disaster relief, prevent and control diseases; adapt to climate change; ensure green growth, science, technology, innovation, digital transformation and social security; prepare investment projects or co-finance projects using concessional loans to increase the grant elements of the loan.

2. ODA loans shall be prioritized for programs and projects in the fields of health, education, vocational education, climate change adaptation, environmental protection, essential economic infrastructure with no direct cost recovery possibility.

3. Concessional loans are prioritized for on-lending programs and projects in accordance with the Government’s regulatory provisions on on-lending of foreign ODA and concessional loans; programs and projects funded by the state budget in the field of socio-economic infrastructure development.

4. Special public investment projects; major and key projects and programs that are revolutionary or transformative; other priority cases shall comply with the Prime Minister’s decision on the Orientations to attract, manage and utilize foreign donors’ ODA and concessional loans from time to time.

Article 6. Contents and basic rules for state management of ODA and concessional loans

1. Scope of state management for ODA and concessional loans:

a) Formulate, promulgate and organize the implementation of legislative documents on management and use of ODA and concessional loans;

b) Formulate and implement Orientations to attract, manage and use ODA and concessional loans in each stage to facilitate the implementation of 5-year socio-economic development plans; measures and policies to effectively manage and use such funding sources;

c) Supervise and provide information about management and use of ODA and concessional loans;

d) Monitor, evaluate, and inspect the management and use of ODA and concessional loans according to regulatory provisions.

2. Basic rules for state management of ODA and concessional loans:

a) ODA and concessional loans shall be used for development investment expenditures, and are not available for recurrent expenditures. Foreign loans must not be used to carry out activities, such as training or drilling for capacity increase, except transfer of technologies and skills in operation of equipment and machinery; make study visits or trips; pay taxes, fees, interest expenses on loans; audit costs; purchase cars, except for specialized cars decided by competent authorities, reserve supplies and equipment for operation phase after the project is completed, except for special ones decided by competent authorities in accordance with regulations of law; pay compensation, support and relocation expenses; pay operating expenses of the Project Management Unit;

b) The Government shall unify the state management of ODA and concessional loans on the basis of assurance of the effective use of capital and solvency; delegation associated with accountability, power, managerial capability of ministries, central and local authorities; assurance of coordinated management, supervision and evaluation of concerned authorities in accordance with applicable laws;

c) Be public and transparent; promote accountability in terms of policies, procedures for raising, managing and using ODA and concessional loans among industries, sectors and localities; and effectiveness of using ODA and concessional loans;

d) Disclose information about cooperation policies, priority fields and loan conditions of foreign donors on the Government’s web portals (chinhphu.vn; mof.gov.vn);

dd) Prevent and combat corruption, losses and wastefulness in management and use of ODA and concessional loans; prevent and impose penalties for these acts in accordance with law;

e) Methods of determining development investment expenditures funded by the state budget. Development investment expenditures are determined in compliance with the provisions of the Law on Public Investment, the Law on State Budget, the Law on Construction and other relevant legal documents.

Article 7. Principles of applying domestic financial mechanism for ODA and concessional loans

1. Regarding programs/projects funded by central government budget, the method of full grant of foreign ODA loans and concessional loans from the central government budget shall be applied.

2. Regarding investment programs/projects funded by local government budget, the method of partial or full on-lending of foreign ODA and concessional loans as prescribed by regulations of law on on-lending of the Government’s foreign ODA loans and concessional loans shall be applied.

Regarding investment programs/projects funded by local government budget that use foreign ODA and concessional loans to finance the locality’s contribution to public-private partnership (PPP) projects, the method of full on-lending of foreign ODA and concessional loans as prescribed by legislation on on-lending of foreign ODA and concessional loans shall be applied.

3. Regarding programs/projects with full or partial cost recoverability, the method of full or partial on-lending of foreign ODA and concessional loans as prescribed by regulations of law on on-lending of foreign ODA and concessional loans shall be applied.

4. Regarding ODA grants, including those associated with loans, ODA grants for investment projects, technical assistance projects (e.g. independent projects, preparatory and supporting projects), and non-projects, the method of full grant of 100% of the loan proceeds shall be applied.

Article 8. Procedures for management and use of ODA and concessional loans

1. Regarding a program/project funded by ODA and concessional loans:

a) Draft, appraise and decide guidelines for investment in the program/project;

b) Send an official notification of the decision on guidelines for investment in the program/project to the foreign donor;

c) Draft, appraise and decide investment in the program/project;

d) Depending on regulations issued by the donor, one of the following procedures shall be implemented: sign international treaties, agreements on ODA and concessional loans;

dd) Carry out performance management and financial management;

e) Complete and transfer the results.

2. Regarding a technical assistance project or non-project funded by ODA grant:

a) Formulate a project/non-project document;

b) Appraise and approve the project/non-project document;

c) Officially notify the foreign donor of the approval for the project/non-project document and the proposal for sponsoring;

d) Depending on the foreign donor’s regulations, one of the following procedures shall be implemented: sign international treaties, agreements on ODA grants; sign aide memoire (commitment letter, letter of intent, discussion record, memorandum of understanding, etc.) on the project funded by ODA grant, the technical assistance project or the non-project;

dd) Carry out performance management and financial management;

e) Complete and transfer the results.

3. Regarding a regional program/project:

a) Submit guidelines for participation in the regional program/project for approval as prescribed in Article 10 of this Decree;

b) Formulate, appraise and approve a regional project/program document intended for Vietnam (if any);

c) Depending on the foreign donor’s regulations, one of the following procedures shall be implemented: sign international treaties, agreements on ODA grants; sign aide memoire (commitment letter, letter of intent, discussion record, memorandum of understanding, etc.) on the technical assistance project or the non-project;

d) Carry out performance management and financial management;

dd) Complete and transfer the results.

4. Regarding budget support:

a) Make documents and records on the budget support;

b) Decide guidelines for receipt of the budget support;

c) Sign international treaties, agreements on ODA and concessional loans for the budget support;

d) Carry out performance management and financial management;

dd) Complete and transfer the results (regarding budget support for the national target program).

5. Regarding programs/projects funded by mixed capital: The managing authority shall follow procedures applied to programs and projects funded ODA and concessional loans as specified in clause 1 of this Article.

6. Regarding an investment project funded by ODA grant:

a) Draft, appraise and decide investment in the project;

b) Send an official notification of the decision on investment in the project and the proposal for sponsoring to the foreign donor;

c) Depending on the foreign donor’s regulations, one of the following procedures shall be implemented: sign international treaties, agreements on ODA grants; sign aide memoire (commitment letter, letter of intent, discussion record, memorandum of understanding, etc.) on the project;

d) Carry out performance management and financial management;

dd) Complete and transfer the results.

Article 9. Guidelines for receipt of budget support

1. Procedures for deciding guidelines for receipt of general budget support are prescribed as follows:

a) The Ministry of Finance shall preside over formulating a document on budget support, specifying the central government budget’s balance and a proposed plan to cover budget deficit; shall adhere to the principles of budget support loans used as development investment expenditures, and get comments from relevant agencies;

b) On the basis of these consolidated comments, the Ministry of Finance shall preside over and report to the Prime Minister on necessity, objectives, socio-economic efficiency, total capital, funding sources and structure, conditions for receipt of budget support, benefits and obligations, funding methods and forms of management;

c) The Prime Minister shall consider deciding guidelines for receipt of the budget support, which will serve as a basis for signature and receipt of the general budget support as per regulations.

d) According to the Prime Minister’s decision, the Minister of Finance shall approve the document on budget support (program documents applied to budget support loan)

2. Procedures for decision on guidelines for receipt of the central government budget support for implementation of the national target program approved by a competent authority are prescribed as follows:

a) According to the competent authority’s decision on approval of guidelines for investment in the national target program, the authority managing the national target program sends an Official Letter to the Ministry of Finance, enclosed with the Document on the budget support, clearly specifying the context, necessity, targets, total capital, funding sources and structure, other resources; conditions for receipt of the budget support, benefits and obligations; funding methods and forms of management; plans to use loans to serve the objectives of the national target program; principles, criteria, list of the projects funded by the budget support, plans to assign loan use plans to ministries, central and local authorities as a basis to allocate midterm and annual public investment capital;

b) On the basis of the consolidated comments from relevant agencies, the Ministry of Finance shall preside over assessing capability to receive the budget support for accomplishment of targets determined in the national target program and conditions for receipt of the budget support, and requesting the Prime Minister to approve guidelines for receipt of the central government budget support for implementation of the national target program, including principles, criteria, list of the projects funded by the budget support, plans to assign loan use plans to ministries, central and local authorities. The report must be submitted within 60 working days after satisfactory documents are received.

c) The Prime Minister considers approving guidelines for receipt of the budget support, principles, criteria, financial mechanism, detailed list of projects, plans to allocate funding to ministries, central and local authorities;

d) According to the Prime Minister’s decision, the authority managing the project shall implement procedures for conducting appraisal and deciding to invest in a particular project funded by the budget support that is part of the national target program as provided by relevant law.

Article 10. Participation in regional programs/projects

1. The Prime Minister considers approving guidelines for participation in regional programs and projects in the fields of security, defense, and religion.

2. Heads of managing authorities shall consider approving guidelines for participation in regional programs and projects in cases not specified in clause 1 of this Article and shall be responsible for their decision.

3. In cases where an authority managing a regional program or project has not been identified, on the basis of a foreign donor’s proposal on the participation in the regional program or project, the Ministry of Finance shall preside over and cooperate with relevant agencies in requesting the Prime Minister to consider deciding Vietnam’s guidelines for participation in the regional program/project and designating the managing authority.

4. Procedures for requesting the Prime Minister to consider approving guidelines for participation in a regional program/project:

a) The managing authority shall send the Ministry of Finance, the Ministry of Foreign Affairs and relevant agencies an official letter, enclosed with the regional program/project document given by the foreign donor, clearly specifying name of the regional program/project; the donor and co-donor (if any); interests and duties of Vietnam as a participant; names of countries participating in the regional program/project; implementation period; assessment of capacity to fulfill the obligations and activities expected to be performed in Vietnam;

b) The managing authority shall consolidate comments from the Ministry of Finance, the Ministry of Foreign Affairs and relevant agencies and request the Prime Minister to consider deciding guidelines for participation in the regional program/project.

5. For regional programs and projects not specified in clause 1 of this Article, the head of the managing authority shall consider deciding guidelines for participation in these regional programs/projects on the basis of the consolidated comments from the Ministry of Finance, the Ministry of Foreign Affairs and relevant agencies and shall be responsible for his/her decision.

6. Where a foreign donor provides ODA or concessional loan to develop and implement a program/project within the framework of a regional program/project, on the basis of the competent authority’s decision on Vietnam’s guidelines for participation in the regional program/project as per clause 1, 2 or 3 of this Article, the managing authority shall formulate, appraise and make decision on approval for a document on a technical assistance project funded by ODA grant as specified in Chapter III of this Decree; formulate, appraise and request the competent authority to decide investment guidelines and investment in the program/project funded by ODA and concessional loans in accordance with Chapter II herein; make, appraise and decide investment in the investment program/project funded by ODA grant as specified in Chapter II of this Decree.

7. The written approval for guidelines for participation in the regional program/project shall contain:

a) Name of the program/project:

b) Donor and co-donor (if any);

c) Vietnam’s managing authority.

Article 11. Private sector’s access to ODA and concessional loans

1. The private sector may access ODA and concessional loans in accordance with policies on provision of ODA and concessional loans of foreign donors.

2. Methods for accessing and using ODA and concessional loans by the private sector:

a) Access to ODA and concessional loans used by ministries, central authorities and provincial People’s Committees to finance project preparation and bidding for selection of investor or finance the state contribution in PPP projects in accordance with applicable provisions on PPP and specific international treaties, specific agreements on ODA and concessional loans;

b) Access to and use of ODA and concessional loans through participation in private sector support programs/projects of managing authorities;

c) Implementation of public investment projects/duties assigned by competent authorities as prescribed in clause 4 Article 4 of the Law on Public Investment.

Chapter II

DRAFTING, APPRAISING, AND MAKING INVESTMENT GUIDELINE DECISION AND INVESTMENT DECISION ON PROGRAMS/PROJECTS FUNDED BY ODA, CONCESSIONAL LOANS; INVESTMENT PROGRAMS/PROJECTS FUNDED BY ODA GRANTS AND TECHNICAL ASSISTANCE PROJECTS FUNDED BY ODA GRANTS FOR INVESTMENT PROJECT PREPARATION

Section 1. DRAFTING, APPRAISING AND DECIDING GUIDELINES FOR INVESTMENT IN PUBLIC INVESTMENT PROGRAMS/PROJECTS

Article 12. Jurisdiction to decide guidelines for investment in investment programs/projects funded by ODA, concessional loans

Jurisdiction to decide guidelines for investment in programs/projects shall be exercised in accordance with clauses 1, 2, 3, 4, 5 and 7 Article 18 of the Law on Public Investment.

Article 13. Dossiers, contents and time limit for appraisal of pre-feasibility study reports and reports on investment guideline proposals for programs/projects funded by ODA and concessional loans

1. A dossier on appraisal of a pre-feasibility study report or report on an investment guideline proposal for a program/project funded by ODA and concessional loans includes:

a) According to the Government’s regulations on a number of articles of the Law on Public Investment: a written proposal for decision on guidelines for investment in the public investment program/project according to the Form in Appendix II, Form No. 01; pre-feasibility study report and project investment guideline proposal report according to the Form in Appendix II, Form No. 02 and Form No. 03; a written proposal for appraisal of pre-feasibility study report and project investment guideline proposal report according to the Form in Appendix II, Form No. 04 attached to this Decree;

b) Letter of interest or sponsorship commitment letter from the sponsor;

c) Written opinions from the Ministry of Finance and relevant agencies;

d) Other relevant documents (if any).

2. The required minimum number of appraisal dossiers to be submitted to the Appraisal Council or the authority presiding over appraisal is 10.

3. Contents of appraisal of guidelines for investment in the public investment program/project funded by ODA, concessional loans include:

a) According to the Government’s regulations on a number of articles of the Law on Public Investment;

b) Funding sources and capacity to balance ODA, concessional loans in accordance with clause 5, Article 36 of the Law on Public Investment and the Government’s regulations on a number of articles of the Law on Public Investment.

4. Time limit for appraisal of the investment guideline proposal report or pre-feasibility study report of the program or project from the date on which the Appraisal Council or the authority presiding over appraisal receives the complete and valid dossier is determined as follows:

a) National target program: No more than 40 working days;

b) Public investment program (except for national target program): No more than 30 working days;

c) Category A projects: No more than 30 working days;

d) Projects other than those prescribed in points a, b and c of this clause: No more than 20 working days;

In case the dossier is invalid or the content of the pre-feasibility study report or investment guideline proposal report of the program or project does not conform with regulations of Articles 33, 34 and 35 of the Law on Public Investment, within 10 days from the day on which the dossier is received, the Appraisal Council or the authority presiding over appraisal shall send written feedback to request the appraisal-requesting authority to supplement the dossier and complete the pre-feasibility study report or investment guideline proposal report.

5. The Appraisal Council or the authority presiding over appraisal of the pre-feasibility study report of a category A project and the investment guideline proposal report shall send an appraisal report as follows:

a) For a public investment program: Submit it to the managing authority and the competent authority in charge of making investment guideline decision;

b) For a category A project that falls within the approval jurisdiction of the Prime Minister: Comply with the Government’s regulations on a number of articles of the Law on Public Investment;

c) For another project not specified at point a or b of this clause: Submit it to the appraisal-requesting authority and the competent authority in charge of making investment guideline decision.

Article 14. Dossiers submitted to competent authority and time limit for making investment guideline decision on program/project funded by ODA/concessional loan

1. A dossier submitted to a competent authority for investment guideline decision on a program/project funded by ODA/concessional loan includes:

a) Documents specified in clause 1 of Article 13 herein, including a written proposal, pre-feasibility study report and investment guideline proposal report specified at point a clause 1 of Article 13 in this Decree that have been completed according to the appraisal report prepared by the Appraisal Council or the authority presiding over appraisal;

b) Appraisal report prepared by the Appraisal Council or the authority presiding over appraisal of guidelines for investment in the program/project, using the Form in Appendix II Form No. 05 enclosed with this Decree.

2. The required number of dossiers submitted to the competent authority to seek its decision on guidelines for investment in the program/project as specified in clause 1 of this Article, shall be 05.

3. From the date on which the competent authority deciding investment guidelines receives the complete and valid dossier, the time limit for decision on investment guidelines shall be determined as follows:

a) Public investment program (except for national target program): No more than 20 working days;

b) Category A project: No more than 15 working days;

c) Another project not prescribed in point a or b of this clause: No more than 10 working days;

4. Within 15 working days from the date on which the competent authority issues a decision on guidelines for investment in the program/project, the managing authority shall submit such decision approved by the competent authority to the Ministry of Finance.

Article 15. Prior activities

1. After project investment guidelines are approved and before an international treaty or agreement on ODA/concessional loan is signed, prior activities include preparation, submission for approval, appraisal, and approval of a contractor selection plan, EOI request, prequalification document, bidding documents, request for proposals, and drawing up of the shortlist.

A contract is only concluded after the project is approved for investment.

2. Regarding prior activities, grounds for preparation, appraisal and approval of the contractor selection plan include:

a) Decision to approve project investment guidelines;

b) Donor’s agreement with the preparation, appraisal and approval of the contractor selection plan.

3. For the contract package for which the bidding is conducted in advance, the bidder shall not furnish a bid security but must provide a commitment in its bid;”.

4. The bidder participating in the expression of interest, prequalification or bidding shall be liable for all costs associated with preparation and submission of their expression of interest, prequalification application or bid. In case bidders are shortlisted but the international treaty or agreement on ODA/concessional loan is not signed, the employer shall notify the shortlisted bidders of bid cancellation. The contractor is selected but the international treaty or agreement on ODA/concessional loan is not signed, the employer shall follow bid cancellation procedures without reimbursing bidders for their costs incurred during participation in bidding.

5. EOI request, prequalification document, bidding documents shall clearly determine responsibilities of bidders and of the employer in bidding in advance as prescribed in this Article.

Article 16. Major contents of Decision on guidelines for investment in program/project funded by ODA/concessional loans

1. According to regulations in clause 5 Article 20, clause 4 Article 23, clause 2 Article 25, clause 2 Article 26, clause 2 Article 27, clause 2 Article 28, clause 2 Article 29 of the Law on Public Investment.

2. Name of the donor and co-donor.

3. Name of the managing authority.

4. Total investment and fund structure (denominated in Vietnamese dong, converted into base currency and US dollars), including:

a) ODA grants, ODA loans, concessional loans;

b) Reciprocal capital.

5. Domestic financial mechanism.

Article 17. Adjustments to guidelines for investment in programs/projects funded by ODA and concessional loans

1. The jurisdiction to decide adjustments to guidelines for investment in programs/projects shall be exercised in accordance with clause 1 of Article 37 in the Law on Public Investment.

2. Regarding a public investment program/project of national importance:

a) Regarding the public investment program to which adjustments lead to changes to contents specified in clause 2 Article 37 in the Law on Public Investment and major contents of the investment guideline decision as provided in clauses 2, 3, 4 and 5 Article 16 herein, adjustments shall comply with regulations laid down in clause 3 of Article 37 of the Law on Public Investment;

b) Regarding the project of national importance to which adjustments lead to changes to contents specified in clause 2 Article 37 in the Law on Public Investment and major contents of the investment guideline decision as provided in clauses 2, 3, 4 and 5 Article 16 herein, adjustments shall comply with regulations laid down in clause 3 of Article 37 of the Law on Public Investment and the Government’s regulations on procedures for appraisal of projects of national importance, supervision and assessment of investment.

3. Regarding a project within the Prime Minister’s jurisdiction to approve investment guidelines, if adjustments to the project lead to changes to contents specified in clause 2 Article 37 in the Law on Public Investment and major contents of the investment guideline decision as provided in clauses 2, 3, 4 and 5 Article 16 herein, adjustments shall comply with the Government’s regulations on a number of articles of the Law on Public Investment.

4. Regarding a project within the jurisdiction to decide investment guidelines of the Minister, the head of managing authority, the provincial People’s Council or the provincial People’s Committee, if adjustments to the program/project lead to changes to contents specified in clause 2 Article 37 in the Law on Public Investment and major contents as provided in clauses 2, 3, 4 and 5 Article 16 herein, the managing authority shall make adjustments to investment guidelines according to procedures specified in clause 2 Article 37 of the Law on Public Investment.

Article 2. DRAFTING, APPRAISING AND DECIDING INVESTMENT IN PROGRAMS/PROJECTS FUNDED BY ODA AND CONCESSIONAL LOANS

Article 18. Jurisdiction to decide investment in programs/projects funded by ODA and concessional loans

The jurisdiction shall be exercised in accordance with Article 38 of the Law on Public Investment.

Article 19. Procedures for drafting, appraising and deciding investment in programs/projects funded by ODA and concessional loans

1. Procedures shall be followed in accordance with Articles 40,41,42 and 43 of the Law on Public Investment.

2. Feasibility study reports of programs/projects shall be prepared in accordance with Article 47 of the Law on Public Investment and relevant regulations, taking into account the contents of the samples provided by foreign donors, ensuring the consistency with investment guideline decisions and harmonizing procedures between Vietnam and foreign donors.

3. Dossiers, contents, time limit for appraisal and decision on investment in programs and projects shall comply with Article 48 of the Law on Public Investment and the Government’s regulations on a number of articles of the Law on Public Investment. To be specific:

a) In case a program/project is eligible for full or partial on-lending of ODA or concessional loan from the state budget, the project owner shall enclose proofs of the financial capacity, debt repayment plans and other documents prescribed by regulations of the law on public debt management;

b) Documents related to the program/project in foreign language must have attached Vietnamese translations;

4. Within 15 working days from the date on which a decision on investment in the program/project is issued by a competent authority, the managing authority shall notify the foreign donor and the project owner of the decision, and send it to the Ministry of Finance and relevant agencies (original or notarized copy) together with the feasibility study report which has been approved and bears the seal of the managing authority for their supervision and cooperation.

Article 20. Adjustments to programs/projects funded by ODA and concessional loans

1. The jurisdiction to decide adjustments to programs/projects shall be exercised in accordance with clause 3 of Article 46 in the Law on Public Investment.

2. Adjustments to the programs and projects shall be made in the cases specified in clauses 1 and 2 of Article 46 in the Law on Public Investment.

3. Regarding a project of national importance, adjustments shall comply with regulations laid down in Article 43 of the Law on Public Investment and the Government’s Decree on procedures for appraisal of projects of national importance, supervision and assessment of investment.

4. Regarding a project within the Prime Minister’s jurisdiction to decide investment guidelines, adjustments shall comply with Article 46 of the Law on Public Investment and the Government’s Decree on elaboration of a number of articles of the Law on Public Investment

5. Regarding a category A, B or C program/project:

a) Contents of and procedures for drafting and appraising adjustments to the program/project shall comply with Article 46 in the Law on Public Investment and the Government’s Decree on elaboration of a number of articles of the Law on Public Investment;

b) Where the adjustment to a program/project in progress leads to a change in main contents of the investment guideline decision, one of the contents specified in clause 2 Article 37 of the Law on Public Investment, and contents specified in clauses 2, 3, 4, 5 Article 16 of this Decree, the managing authority shall adjust investment guidelines according to Article 17 in this Decree before following procedures for adjustments to the program/project.

6. Where the adjustment to a program/project in progress leads to amendments or extension of a specific treaty or agreement on ODA and concessional loans:

a) On the basis of the investment guideline decision/investment decision approved by the competent authority, the managing authority shall request in writing the signature-proposing authority to amend and extend the specific international treaty/specific agreement on ODA and concessional loans;

b) Where adjustments to contents of the program/project do not result in change in the main content of the investment guideline decision, the managing authority shall adjust the investment decision by way of consolidating opinions of the Ministry of Finance, and relevant agencies to serve as a basis to amend and extend the specific international treaty/specific agreement on ODA and concessional loans.

Section 3. Termination of use of ODA and concessional loans

Article 21. Cases of termination of use of ODA and concessional loans

1. Continuation in execution of programs/projects causes consequences in terms of economy, society, national defense, security, foreign affairs and environment.

2. There are inappropriate factors or force majeure reasons in terms of capital, institutions, policies or other reasons that make it impossible to continue executing programs/projects.

Article 22. Termination of use of ODA/concessional loans in case when programs/projects have not yet been executed

1. Procedures for terminating investment guidelines/projects shall be followed in accordance with Article 37, clause 1 Article 66 of the Law on Public Investment and the Government’s regulations on a number of articles of the Law on Public Investment.

2. Dossier, contents and period of decision on termination of use of ODA/concessional loans:

a) Written request submitted to a competent authority for termination of use of ODA/concessional loans, including reasons, assessment of impacts of termination of investment and use of ODA/concessional loans, plans to implement works, costs incurred, and other related contents;

b) Written comments from relevant agencies;

c) Other relevant documents (if any);

d) Number of dossiers to be submitted to the competent authority: 05;

dd) Within 15 working days from the date on which the full dossier is received, the authority having jurisdiction to issue the investment guideline decision shall decide to terminate such guidelines for investment in the program/project;

e) The authority deciding to terminate the program/project shall send a report to the authority issuing the investment guideline decision and the Prime Minister within 10 working days from the date of decision to terminate the program/project.

3. According to the request from the authority managing the program/project, the Ministry of Finance shall notify the donor of termination of use of ODA/concessional loans for the program/project.

Article 23. Termination of use of ODA and concessional loans for programs/projects in progress

1. The managing authority shall report to the Prime Minister on decision to terminate use of ODA/concessional loans for any program/project in progress according to procedures specified in clause 2 Article 66 of the Law on Public Investment.

2. The Ministry of Finance shall send an official notification to the donor of decision issued by the competent authority on termination of use of ODA/concessional loans for the program/project and follow procedures for terminating use of ODA/concessional loans.

3. Dossier, contents and period of decision on termination of use of ODA/concessional loans:

a) Written proposal submitted to the Prime Minister for termination of the use of ODA/concessional loans for the program/project, including reasons for termination of the use of ODA/concessional loans for the program/project; costs invested and incurred; assessment of economic, social, environmental, political and diplomatic impacts of termination of the use of ODA/concessional loans; inspection and assessment of work volume compared to the expected investment plan; plan to handle volume and costs invested; investment plan to complete the project using other capital sources; opinions and handling plans provided by the donor; plan to use other capital sources to continue investment (if any); other related contents;

b) Written comments from the Ministry of Finance and relevant agencies;

c) Other relevant documents (if any);

d) Number of dossiers to be submitted to the competent authority: 05;

dd) Within 15 working days from the date of receipt of the full and valid dossier, the Prime Minister shall decide to terminate use of ODA/concessional loans for the program/project.

Chapter III

FORMULATING, APPRAISING AND DECIDING TO APPROVE DOCUMENTS OF TECHNICAL ASSISTANCE PROJECTS AND NON-PROJECTS FUNDED BY ODA GRANTS

Article 24. Jurisdiction to approve documents of technical assistance projects and non-projects

The head of the managing authority shall approve documents of a technical assistance project/non-project funded by ODA grant; documents of a technical assistance project funded by ODA grant to prepare an investment project; documents of a technical assistance project/non-project funded by ODA grant on the basis of written agreement with guidelines for participation in a regional program/project of a competent authority as specified in Article 10 of this Decree.

Article 25. Formulation of documents of technical assistance projects/non-projects

Managing authorities shall cooperate with foreign donors in formulating documents of projects and non-projects by using Forms given in Appendix II Form No. 07 and Appendix II Form No. 08 enclosed with this Decree.

Article 26. Procedures and contents of appraisal and decision on approval of documents of technical assistance projects and non-project

1. The managing authority shall preside over appraisal and send written enquiries enclosed with project or non-project documents and other relevant documents (if any) to the Ministry of Finance and relevant agencies;

2. Within 10 days from the date on which such valid documents are received, the consulted agencies shall send their written comments thereon with a focus on necessity, key objectives and outcomes; funding sources and financial mechanisms; the foreign donor’s conditions (if any) and response capacity of Vietnam and relevant necessary matters.

3. The compatibility of the project/non-project with specific development objectives set by ministries, central and local authorities, units and beneficiaries; the appropriateness of the implementation method; fund and capital balancing capability, financial mechanism; the rationality of funding structure for major categories; commitments, prerequisites and other conditions of the foreign donor and the stakeholders (if any); effectiveness, the ability to apply results to real practices and sustainability after the project or non-project is completely executed; unanimous opinions or discrepancies amongst the parties shall be appraised.

4. An appraisal dossier includes a written request for approval of project/non-project documents; draft project or non-project documents; written comments of relevant agencies; and other relevant documents (if any), such as the donor’s written endorsement for project or non-project contents, notification of commitment to consider funding, memorandum of understanding with the donor, report prepared by the appraisal expert team at the request of the donor;

5. On the basis of appraisal results, the head of the managing authority shall decide whether project or non-project documents are approved;

6. The time limit for appraisal of project or non-project documents shall not exceed 20 days from the date of receipt of the completed and valid dossier.

7. Where a project/non-project is funded by an ODA grant worth USD 500.000 or less, the head of the managing authority may approve project or non-project documents without having to consult relevant agencies and shall be responsible for his/her decision.

8. The managing authority shall send a written notification to the Ministry of Finance and other relevant agencies, enclosed with project or non-project documents that have been approved and bear the affixed seal of the managing authority and relevant documents for supervision and cooperation.

9. Main contents of the decision to approve technical assistance project/non-project documents:

a) Name of the project or non-project;

b) Name of the foreign donor and co-donor (if any);

c) Name of the managing authority and project owner;

d) Execution duration and location;

dd) Objectives, operations and results;

e) Management organization;

g) Implementation method;

h) Total fund and funding structure, including ODA grants (base currency and VND equivalent) and reciprocal capital (in VND);

i) Other contents.

10. The Ministry of Finance shall send an official notification and a funding request to the foreign donor.

Article 27. Adjustments to Decision on approval of documents of technical assistance project/non-project

1. A Decision on approval of documents of a technical assistance project/non-project shall be adjusted when there are changes specified in clause 9 Article 26 of this Decree. The managing authority shall conduct appraisal and decide to adjust the Decision on approval of documents of the technical assistance project/non-project and be responsible for its decision.

2. In case the adjustment to the Decision leads to increase in reciprocal capital or ODA grant by USD 500.000 or more:

a) The managing authority shall send written enquiries to the Ministry of Finance and relevant agencies about adjustments to contents of the Decision on approval of documents of the project/non-project, enclosed with the adjusted documents;

b) On the basis of the comments from the Ministry of Finance and relevant agencies (if any), the head of the managing authority shall decide whether to approve these adjustments;

Chapter IV

SIGNATURE OF INTERNATIONAL TREATIES AND AGREEMENTS ON ODA AND CONCESSIONAL LOANS

Section 1. SIGNATURE OF INTERNATIONAL TREATIES AND AGREEMENTS ON ODA AND CONCESSIONAL LOANS

Article 28. Bases for proposal to sign international treaties on ODA/concessional loans

1. Bases for proposal to sign a framework treaty on ODA or concessional loan are result of rise, development and cooperation strategy and policy, priority fields for the use of ODA/concessional loans as agreed between Vietnam and the foreign donor, or decision on guidelines for investment in a program/project if specific program/project is involved.

2. Bases for proposal to sign a specific international treaty on ODA/concessional loans:

a) Regarding a program/project funded by ODA, concessional loans, or a program/project funded by ODA grant: the approved feasibility study report; the decision on investment in the program/project; the Prime Minister’s decision on approval of on-lending (with respect to on-lending programs/projects);

b) Regarding a technical assistance project/non-project funded by ODA grant: project/non-project documents, and Decision to approve project/non-project documents.

Article 29. Authorities proposing signature of international treaties on ODA/concessional loans

1. The Ministry of Finance may send proposals to the Government for signature of framework and specific international treaties on ODA loans, concessional loans or ODA grants for programs/projects, except for the cases specified in clauses 2 and 3 of this Article.

2. The People’s Supreme Court, the People’s Supreme Procuracy, State Audit Office, ministries, ministerial authorities, and Governmental authorities, may send proposals to the Government for signature of specific international treaties on ODA grants for their programs and projects, except for the case specified in clause 3 of this Article.

3. The State Bank of Vietnam may send proposals to the Government for signature of specific international treaties on ODA grants that are not associated with loans granted by international banks and monetary and financial institutions represented by the State Bank of Vietnam, except for the cases specified in clause 1 and clause 2 of this Article.

Article 30. Procedures for signing, amending and extending international treaties on ODA and concessional loans

1. Procedures for signing, amending and extending international treaties on ODA and concessional loans shall be followed in accordance with regulations of the Law on International Treaties.

2. In urgent cases where it is required that international treaties on ODA and concessional loans are signed in the name of the Government and competent authorities grant consent, the negotiation and signature of international treaties on ODA/concessional loans in the name of the Government shall be comply with regulations. To be specific:

a) Pursuant to regulations of Article 28 of this Decree and written requests from the managing authority and state-owned enterprises, the Ministry of Finance shall request foreign donors or lenders to send draft international treaties on ODA/concessional loans;

b) The Ministry of Finance shall consult the Ministry of Foreign Affairs, the Ministry of Justice and relevant agencies about draft international treaties on ODA/concessional loans. Consulted agencies shall reply in writing to the Ministry of Finance within 05 working days from the date of receipt of complete consultancy dossiers;

c) According to comments from relevant agencies, the Ministry of Finance shall formulate plans for negotiation of international treaties on ODA/concessional loans and submit them to the Prime Minister. Dossiers to be submitted on negotiation of international treaties shall comply with regulations laid down in Article 11 in the Law on International Treaties;

d) The Ministry of Finance shall preside over and cooperate with the Ministry of Foreign Affairs, the Ministry of Justice and relevant agencies in, negotiating with foreign donors or lenders about draft international treaties on ODA/concessional loans; promptly reporting to the Prime Minister on problems that arise in the course of negotiation and proposing remedial measures;

dd) According to negotiation results, the Ministry of Finance shall seek the Government’s decision to sign international treaties on ODA/concessional loans. Dossiers on proposals to sign international treaties shall comply with regulations laid down in clauses 1, 2 and 6 of Article 17 in the Law on International Treaties;

e) On the basis of the Government’s decision, the Minister of Finance or the person authorized to act on the Government’s behalf shall sign international treaties on ODA/concessional loans with foreign donors or lenders;

g) Within 10 working days from the date on which the international treaty is signed domestically by both parties, or from the date on which the team signing the international treaty abroad arrives in Vietnam, the proposing authority shall send the Ministry of Foreign Affairs an original copy of the international treaty; the Vietnamese translation in the event that the international treaty in foreign language is signed.

3. In case where the amendment to or extension of a specific international treaty on ODA/concessional loan in the name of the Government related to the contents already approved by the competent authority in the Decision to adjust investment guidelines or the investment decision does not give rise to more debt repayment obligations of the Government of Vietnam, or does not require a new international treaty to be signed for amendment purposes; or technical amendments to the specific international treaty are made:

a) The Ministry of Finance may decide not to consult the Ministry of Foreign Affairs, the Ministry of Justice and other relevant agencies when seeking the Government’s decision on amendment to or extension of the international treaty;

b) Dossiers to be submitted on amendment or extension of the international treaty shall comply with regulations laid down in clause 6 of Article 54 in the Law on International Treaties, except for comments from relevant agencies. When being consulted by the Ministry of Finance, relevant agencies shall reply in writing within 05 working days from the date of receipt of complete consultancy documents.

4. Regarding a program/project funded by ODA/concessional loans, which is signed under multiple international treaties corresponding to the program/project’s phases:

a) In case of the international treaty signed for the first loan, regulations in clause 1 or clause 2 of this Article shall be complied with;

b) In case of the international treaty signed for the subsequent loans: On the basis the state-owned enterprise/managing authority’s proposal for necessity of the next loan; ODA/concessional loan limits approved by the competent authority in the investment decision; project progress and disbursement results under the signed international treaties, the Ministry of Finance shall preside over and cooperate with the managing authority, the state-owned enterprise and relevant agencies in determining the value of the next loan, discuss and agree with the donor and proceed with procedures specified in clause 1 or clause 2 of this Article.

5. Where an international treaty requires legal comments from the Ministry of Justice, after receiving the complete dossier in accordance with applicable regulations on provision of legal comments, the Ministry of Justice shall initiate procedures for providing legal comments as per law.

Section 2. SIGNATURE OF AGREEMENTS ON ODA AND CONCESSIONAL LOANS

Article 31. Bases for proposals to sign agreements on ODA/concessional loans

1. Regarding framework agreements on ODA/concessional loans: Bases for proposals to sign such agreements are results of rise, development and cooperation strategies and policies, priority fields for the use of ODA or concessional loans agreed between Vietnam and foreign donors.

2. Regarding specific agreements on ODA/concessional loans: Bases for proposals to sign such agreements are framework international treaties or framework agreements on ODA/concessional loans (if any) and decisions on investment in programs/projects.

3. Regarding specific agreements on ODA grants: In case donors requests to sign, bases for proposals to sign such agreements are framework international treaties on ODA grants (if any) and project/non-project documents or feasibility study reports (for investment projects) approved by competent authorities.

Article 32. Authorities proposing to sign agreements on ODA and concessional loans

1. The Ministry of Finance may send proposals to the Prime Minister for signature of framework and specific agreements on ODA/concessional loans or ODA grants for programs/projects.

2. The People’s Supreme Court, the People’s Supreme Procuracy, State Audit Office, ministries, ministerial authorities, and Governmental authorities, may send proposals to the Prime Minister for signature of specific agreements on ODA grants for their programs and projects, except for those specified in clause 1 of this Article.

Article 33. Procedures for signing, amending and extending agreements on ODA and concessional loans

1. Procedures for signing framework agreements on ODA/concessional loans:

a) Pursuant to regulations of Article 31 of this Decree, the Ministry of Finance shall request foreign donors or lenders to send draft framework agreements on ODA/concessional loans;

b) The Ministry of Finance shall request the Prime Minister to decide to negotiate framework agreements on ODA/concessional loans. A dossier submitted to the Prime Minister on negotiation includes a written proposal for negotiation guidelines; a draft framework agreement on ODA/concessional loan;

c) Pursuant to the negotiation approval granted by the Prime Minister, the Ministry of Finance shall consult the Ministry of Foreign Affairs, the Ministry of Justice and relevant agencies about draft framework agreements on ODA/concessional loans. Consulted agencies shall reply in writing to the Ministry of Finance within 05 working days from the date of receipt of complete consultancy dossiers and relevant documents;

d) The Ministry of Finance shall preside over and cooperate with the Ministry of Foreign Affairs, the Ministry of Justice and relevant agencies in, negotiating with foreign donors or lenders about draft framework agreements on ODA/concessional loans;

dd) According to negotiation results, the Ministry of Finance shall request the Prime Minister to decide to sign draft framework agreements on ODA/concessional loans with foreign donors or lenders;

e) On the basis of the Prime Minister’s decision, the Minister of Finance or the person authorized to act on the Prime Minister’s behalf shall sign framework agreements on ODA/concessional loans with foreign donors or lenders;

2. Procedures for amending and extending framework agreements on ODA/concessional loans:

a) The Ministry of Finance shall consult the Ministry of Foreign Affairs, the Ministry of Justice and relevant agencies about requests for amendments or extension of framework agreements on ODA/concessional loans. Consulted agencies shall reply in writing to the Ministry of Finance within 05 working days from the date of receipt of written requests for comments and relevant documents;

b) The Ministry of Finance shall request the Prime Minister to approve amendments to/extension of framework agreements on ODA/concessional loans;

c) Pursuant to the Prime Minister’s approval, the Ministry of Finance shall follow procedures for amendments to/extension of framework agreements on ODA/concessional loans with foreign donors or lenders.

3. Procedures for signing agreements on ODA/concessional loans:

a) Pursuant to regulations of Article 31 of this Decree and written requests from the managing authority and state-owned enterprises, the Ministry of Finance shall request foreign donors or lenders to send draft agreements on ODA/concessional loans;

b) The Ministry of Finance shall request the Prime Minister to decide to negotiate agreements on ODA/concessional loans. A dossier submitted to the Prime Minister on negotiation includes a written on-lending report (in case of on-lending of ODA/concessional loans) and negotiation guideline proposal; draft agreements on ODA/concessional loans; project investment decision;

c) Pursuant to the negotiation and on-lending approval granted by the Prime Minister, the Ministry of Finance shall consult the Ministry of Foreign Affairs, the Ministry of Justice and relevant agencies about draft agreements on ODA/concessional loans. Consulted agencies shall reply in writing to the Ministry of Finance within 05 working days from the date of receipt of complete consultancy dossiers and relevant documents;

d) The Ministry of Finance shall preside over and cooperate with the Ministry of Foreign Affairs, the Ministry of Justice and relevant agencies in, negotiating with foreign donors or lenders about draft agreements on ODA/concessional loans;

dd) According to negotiation results, the Ministry of Finance shall request the Prime Minister to decide to sign draft agreements on ODA/concessional loans with foreign donors or lenders;

e) On the basis of the Prime Minister’s decision, the Minister of Finance or the person authorized to act on the Prime Minister’s behalf shall sign agreements on ODA/concessional loans with foreign donors or lenders;

g) Regarding agreements on mixed capital: the Ministry of Finance shall follow procedures for signing agreements as prescribed under this clause;

h) Regarding a program/project funded by ODA/concessional loans, which is signed under multiple agreements corresponding to the project’s phases: According to the loan value specified in the respective framework international treaty already signed, the Ministry of Finance shall preside over and cooperate with the managing authority and relevant agencies in, following procedures for signature as prescribed under this clause.

4. Procedures for amending and extending agreements on ODA and concessional loans:

a) The managing authority or state-owned enterprise shall submit a request to the Ministry of Finance for amendments or extension of an agreement on ODA/concessional loan;

b) The Ministry of Finance shall consult the Ministry of Foreign Affairs, the Ministry of Justice and other relevant agencies about the request for amendments or extension of the agreement on ODA/concessional loan. Consulted agencies shall reply in writing to the Ministry of Finance within 05 working days from the date of receipt of the written request for comments and relevant documents;

c) The Ministry of Finance shall request the Prime Minister to approve amendments to/extension of the agreement on ODA/concessional loan;

d) On the basis of the Prime Minister’s approval, the Ministry of Finance shall proceed with procedures to amend/extend the agreement on ODA/concessional loan with the foreign donor or lender;

dd) In case the amendment/extension of the agreement on ODA/concessional loan results from changes to the contents of the investment guideline decision or the decision on investment in the program/project approved by the competent authority, procedures for amending/extending the agreement on ODA/concessional loan shall be followed as per point a, c or d of this clause;

e) In case the amendment to/extension of the agreement on ODA/concessional loan is associated with amendment to/extension of the corresponding framework international treaty approved by the competent authority, the Ministry of Finance shall follow procedures for amending or extending the agreement on ODA/concessional loan as per point c or d of this clause.

5. Procedures for signing/amending/extending agreements on ODA grants:

a) The signature-proposing authority shall discuss and reach an agreement with the foreign donor on a draft agreement;

b) The signature-proposing authority shall consult the Ministry of Foreign Affairs, the Ministry of Justice and relevant agencies about the draft agreement. Consulted agencies shall reply in writing within 15 days from the date of receipt of the written request for comments and relevant documents;

c) On the basis comments from relevant agencies, the signature-proposing authority shall discuss and reach an agreement with the foreign donor to complete the draft agreement and submit it to the Prime Minister for signature;

d) On the basis of the Prime Minister’s decision, the head of authority authorized by the Prime Minister shall sign the agreement with the foreign donor ;

dd) In case of amendments to the agreement on ODA grant, on the basis of consolidated comments from the Ministry of Foreign Affairs, the Ministry of Justice and relevant agencies, the signature-proposing authority shall request the Prime Minister to consider deciding such amendments.

6. Where an agreement on ODA/concessional loan requires legal comments from the Ministry of Justice, after receiving the complete dossier in accordance with applicable regulations on provision of legal comments, the Ministry of Justice shall follow procedures for providing legal comments as per law.

7. In case the donor does not require signature of an agreement on ODA grant, on the basis of project/non-project documents approved by the competent authority, the managing authority shall send a written proposal to the donor for an exchange document on request for allocation of ODA grant for the project/non-project in accordance with regulations of relevant laws. The Exchange Document shall contain the donor and recipient; name of the project/non-project; objectives; value of ODA grant; and the execution method.

8. If the donor requires signature of an agreement on implementation of the project/non-project, the managing authority or an authority required by the donor shall draft, negotiate and sign the agreement with the donor on the principle of no contradiction to the international treaty/agreement on ODA/concessional loan and regulations of relevant laws.

Chapter V

MANAGEMENT OF EXCUTION OF PROGRAMS/PROJECTS/NON-PROJECTS

Article 34. Forms of organization of management of programs/projects/non-projects

The investment decider shall decide any of the following forms for organization of management a program/project, depending on the scale, nature, specific conditions, his/her capacity for organizing management the program/project under the management of his/her unit and according to regulations on organization of management of ODA/concessional loan provided by a foreign donor.

1. Regarding an investment program/project: laws on management of public investment and investment in construction shall be complied with.

2. Regarding a technical assistance project or non-project funded by ODA grant:

a) The managing authority shall directly manage/administer execution of the project/non-project or assign an affiliated unit to act as the project/non-project owner and manage and administer the execution of the project/non-project. Regarding a technical assistance project funded by an ODA grant worth USD 500.000 or less, the managing authority is not required to establish a Project Management Unit but may use its own human resource to manage and administer execution of the project/non-project.

b) The foreign donor shall directly manage the entire project/non-project. Where project/non-project documents or a specific international treaty/agreement on ODA grant stipulate that the foreign donor directly manages the entire project/non-project, the head of the managing authority or project owner shall assign an affiliated unit to cooperate with the foreign donor in monitoring the progress and quality, and using the outputs of the project/non-project;

c) The foreign donor shall directly manage a part of the project/non-project. Where project/non-project documents or a specific international treaty/agreement on ODA grant stipulate that the foreign donor directly manages a part of project/non-project and the Vietnamese side manages the rest, the managing authority or project owner shall decide to establish a Project Management Unit to manage the work undertaken by the Vietnamese side in accordance with Vietnam’s applicable regulations and make a commitment with the foreign donors.

3. Regarding another program/project, the managing authority shall decide one of the following forms:

a) Establishing a new Project Management Unit;

b) Assigning the existing Project Management Unit to manage/execute the new program/project. The managing authority/project owner shall issue a decision on additional management of execution of the new program/project to the existing Project Management Unit;

c) The project owner shall self-manage the program/project.

4. A Project Management Unit shall be established to manage and execute a large-scale program/project, involving high technology application or related to national defense and security; a program/project with special funding sources or management model that needs a Project Management Unit; a program/project for which a Project Management Unit is required to be established under an international treaty or agreement on ODA/concessional loan.

5. Project owners shall employ capable personnel to manage and execute small-scale projects and public projects.

6. A consultant shall be hired to manage a part of or the entire program/project.

Article 35. Management of projects

1. Within 30 working days from the date of issuance of the investment decision or the decision on approval of project documents, the head of the managing authority shall issue a decision to establish a Project Management Unit by using the form given in Appendix III hereto. In case where the project owner has full legal personality, the head of the managing authority may authorize the project owner to issue the establishment decision (except for specialized Project Management Units and regional Project Management Units established under regulations on management of investment in construction).

2. Where a new Project Management Unit is established in accordance with point a of clause 3 of Article 34 in this Decree, the decision to establish a Project Management Unit shall be enclosed with a document specifying the organizational structure, functions, duties, and powers of the Project Management Unit; and job description of some key positions thereof.

3. In case of employment of the existing Project Management Unit for the new program/project according to point b of clause 3 of Article 34 in this Decree: pursuant to the decision on establishment of the Project Management Unit, the head of the managing authority or the project owner shall add and adjust functions and duties of the existing Project Management Unit, open a new account and obtain a new seal to manage the new program/project.

4. Where the project owner self-manages the program/project as prescribed in point c of clause 3 of Article 34 herein, on the basis of the decision issued by the head of the managing authority to assign the project owner to manage execution of the project, within 30 working days from the date on which the investment decision is issued, the project owner shall issue a decision to assign additional duties to the affiliated unit/individual to perform the management in accordance with applicable regulations. Accordingly, there must be at least an officer in charge of management and an officer in charge of financial issues, who work on a part-time or full-time basis and must have professional skills and qualifications suitable for his/her position.

5. Within 15 working days from the date on which the decision to establish the Project Management Unit is issued, the head of the managing authority or the project owner having legal personality and authorized by the head of the managing authority shall issue regulations on organization and operation of the Project Management Unit. Where an international treaty or agreement on ODA/concessional loan provided for the program/project provides for organizational structure, duties and powers of the Project Management Unit, such regulations must be fully elaborated and specified in the Rule for organization and operation of the Project Management Unit.

Article 36. Duties and powers of managing authorities over management of execution of programs/projects

1. Decide organizational structure for management of execution of programs/projects, including: project owners; steering committees (if necessary).

2. Approve overall plans for execution of programs/projects; compile and approval annual plans for execution of programs/projects.

3. Direct bidding in accordance with applicable regulations, international treaties, agreements on ODA/concessional loans on bidding.

4. Organize supervision and inspection of implementation of plans; supervise and assess execution of and disbursement of funds for programs/projects in order to ensure progress, quality and achievement of set objectives in accordance with law on public investment and regulations on supervision and assessment under this Decree.

5. Be responsible for additional costs incurred due to subjective causes, wastefulness, corruption and misconducts in management and use of ODA/concessional loans under their management in accordance with regulations of law on public investment.

6. Perform other duties and powers in accordance with law, specific international treaties and agreements on ODA/concessional loans provided for programs/projects.

Article 37. Duties and powers of project owners over management of execution of programs/projects

1. Organize apparatus structure for management and execution of programs/projects according to managing authorities’ decisions.

2. Assume responsibilities for effective management and use of ODA/concessional loans and reciprocal capital for programs/projects from preparation and execution to operation phases

3. Disburse funds, manage funds and assets of programs/projects in case where project owners self-manage and execute such programs/projects.

4. Formulate and submit overall plans and annual plans for execution of programs/projects to managing authorities for approval.

5. Formulate quarterly operation plans serving administration, supervision and assessment of programs/projects.

6. Make bidding in accordance with applicable regulations on bidding, specific international treaties on ODA/concessional loans.

7. Negotiate, sign and supervise execution of contracts, and resolve difficulties within their jurisdiction.

8. Cooperate with local governments in compensation, support and relocation in accordance with law and specific international treaties or agreements on ODA or concessional loans provided for programs/projects (for construction investment projects).

9. Supervise and assess programs/projects in accordance with law on supervision and assessment of public investment and regulations of this Decree, thereby ensuring progress, quality and achievement of set objectives.

10. Make accounting records, and conduct account finalization and audit of programs/projects in accordance with regulations of law; prepare reports on closure and account finalization of programs/projects; audit and hand over assets and output documents related to programs/projects, and comply with regulations on closure of projects in specific international treaties or agreements on ODA/concessional loans.

11. Take full responsibilities for losses, wastefulness, corruption and misconducts that occur during the management of execution of programs/projects within their jurisdiction if they cause economic, social or environmental damage, or affect the overall objectives and effectiveness of programs/projects.

12. Regarding programs/projects eligible for full or partial on-lending from state budget, project owners shall fully and promptly repay on-lent amounts in accordance with on-lending contracts signed with the Ministry of Finance or on-lending authorities.

13. Perform other duties and powers in accordance with law, specific international treaties and agreements on ODA/concessional loans provided for programs/projects.

14. Take responsibilities to notify the Ministry of Finance of the designated service banks for fund withdrawal and disbursement.

15. Bear responsibilities to law and managing authorities within their rights and obligations prescribed in this Decree and other regulations of relevant laws.

Article 38. Duties and powers of Project Management Units over management of execution of programs/projects

1. Duties and powers of Project Management Units are assigned by project owners under decisions to establish Project Management Units. Project owners may authorize Project Management Units to issue decisions or sign documents within their jurisdiction during management of execution of programs/projects. The authorization must be specified in decisions to establish Project Management Units or made into a specific authorization letter by each project owner.

2. The Project Management Unit may be assigned to manage multiple programs/projects as long as the project owner grants consent and each program/project is not interrupted and is managed and finalized for in accordance with applicable regulations. If the Project Management Unit is not capable of some management and supervision duties, it may hire consultants to perform such duties provided that the project owner grants consent.

3. The Project Management Unit shall perform duties assigned by the project owner and be accountable to the project owner, including:

a) Formulate an overall plan and annual plans for execution of the program/project;

b) Prepare and execute the program/project;

c) Carry out activities related to bidding, manage contracts, compensation, support and relocation;

d) Disburse funds, manage funds and assets of the program/project;

dd) Monitor and assess execution of the program/project;

e) Prepare the acceptance and transfer of the completed program/project; finish payment, account finalization and audit work, transfer assets of the program/project; prepare a closure report using the form given in Appendix VI hereto and account finalization report of the program/project; follow regulations on project closure in the applicable international treaty or agreement on ODA/concessional loan;

g) Perform other duties assigned by the project owner within the framework of the program/project.

4. Perform other duties and powers in accordance with law, specific international treaties and agreements on ODA/concessional loans provided for programs/projects.

5. Bear responsibilities to law, project owners and managing authorities within their rights and obligations prescribed in this Decree and other regulations of relevant laws.

Article 39. Rules for organization and operations of Project Management Units

1. Within 15 working days from the date on which the competent authority issues the decision to establish the Project Management Unit, the Director of the Project Management Unit shall submit rules for organization and operation of the Project Management Unit to the managing authority or the project owner authorized by the managing authority referred to in clause 1 of Article 35 for approval according to the Form in Appendix IV hereto. The managing authority and/or the project owner shall send these rules to the Ministry of Finance, relevant agencies and the foreign donor within 05 working days from the date on which rules are approved.

2. With respect to construction investment programs and projects, rules for organization and operations of Project Management Units shall comply with the law on construction.

3. Organization structure of a Project Management Unit:

a) Title holders of Project Management Unit shall be appointed by the managing authority under the decision to establish the Project Management Unit. Key title holders include Director, Deputy Director (if any), Chief Accountant and Accountant in charge. The Director of the Project Management Unit shall be accountable to the project owner and/or the managing authority for organization and administration of the Project Management Unit, and execution of the project in accordance with law and specific international treaty or agreement on ODA/concessional loans already signed;

b) Where a new Project Management Unit is established: On the basis of contents, scale, nature, extent of its operation, and forms for management of execution, the Project Management Unit must be fully staffed by properly qualified and experienced members to ensure the effective and sustainable management of execution of the project. The Director of the Project Management Unit shall propose the organization structure of the Project Management Unit, which may be composed of functional units in charge of administrative procedures, human resources and training, planning, bidding, finance and supervision in Rules for organization and operation of the Project Management Unit;

c) Where the Project Management Unit that is in operation is assigned to manage a new program/project, the Director of the Project Management Unit shall add and adjust duties specified in Rules for organization and operation of the Project Management Unit to match the assigned duties, and submit revised and updated duties to the managing authority and the project owner to seek their decision;

d) Where the project owner self-manages the program/project, the project owner shall assign duties in writing to subordinate officers to take part in management and execution of the program/project.

4. Personnel of the Project Management Unit shall be recruited, appointed and discharged by the Director. Functions, duties, powers, remuneration (salaries, bonuses, allowances, etc.) are specified according to terms of assignment of jobs appropriate for positions and relevant laws. Nomination, hire, employment and appointment of officeholders who are not on the payroll of the project owner or the managing authority to hold positions at the Project Management Unit shall be aligned with program/project documents already approved by the competent authority and comply with relevant laws.

5. Seal and account of the Project Management Unit:

a) The Project Management Unit may use its own seal according to regulations of law or a seal of the managing authority or the project owner in accordance with regulations issued by the managing authority or the project owner to serve management and execution of the program/project;

b) The Project Management Unit shall be entitled to open a Vietnamese dong or foreign currency account of the program/project at a commercial bank or the State Treasury for each funding source provided for the program/project in accordance with regulations of law and specific international treaty/agreement on ODA/concessional loans already signed with the foreign donor.

6. Funding for operations of the Project Management Unit shall be derived from reciprocal capital for preparation and execution of the program/project specified in clause 2 of Article 44 in this Decree, or ODA grant in accordance with regulations of law and the specific international treaty/agreement on ODA/concessional loans already signed with the foreign donor.

7. Management and use of assets assigned by the managing authority or the project owner to the Project Management Unit for management and execution of the project/program:

a) Assets of the program/project assigned by the managing authority or the project owner to the Project Management Unit for management and execution of the program/project shall be used economically, effectively, and to serve correct purposes and beneficiaries in accordance with law and project documents, the specific international treaty/agreement on ODA/concessional loans already signed with the foreign donor;

b) In case where a consultant or consultancy organization or contractor hands over, donates or transfers the ownership of assets to the Project Management Unit, the Project Management Unit shall send the managing authority or project owner a written request for management and use thereof during the course of execution of the program/project, and transfer thereof to the managing authority or the project owner after the program/project is completed.

8. Closure of the program/project and dissolution of the Project Management Unit:

a) The deadline for closure of the program/project funded by ODA/concessional loan is prescribed in the investment decision, the decision on approval of project documents, the specific international treaty or agreement on ODA/concessional loan already signed with the foreign donor;

b) Within 06 months from the date of closure of the program/project, the Project Management Unit is obliged to prepare and send the managing authority or the project owner a report on closure of the program/project in order for the project owner to submit such report to the managing authority. The program/project closure report shall be prepared on the basis of the report on assessment of closure of the program/project under law and the specific international treaty or agreement on ODA/concessional loan;

c) The Project Management Unit shall hand over the program/project’s assets assigned by the competent authority to the managing authority or the project owner for management and use as per law;

d) After the closure report or the account finalization report is approved by the managing authority or the project owner, and the transfer of assets to the managing authority or the project owner is completed, the managing authority shall issue a decision on closure of the program/project and decision on resolution of the Project Management Unit;

dd) If necessary to settle financial obligations and complete all required procedures for closure of the project, the Project Management Unit shall request the managing authority or the project owner to issue a decision to allow extension of the period of operation of the Project Management Unit, and provide adequate funding for operation;

e) Where the Project Management Unit manages various programs/projects, the managing authority or the project owner shall issue a decision on closure of each program/project, and at the same time, adjust the corresponding functions and duties of the Project Management Unit.

Article 40. Hire of consultants for management of programs/projects and employment of experts who are overseas Vietnamese or foreigners

1. The program/project management consultancy organization shall be responsible for performing duties and fulfilling commitments under a contract with the project owner while complying with applicable regulations of relevant law.

2. The project owner shall select a program or project management consultant through bidding and sign a consultancy contract according to applicable regulations. When hiring a program or project management consultant, the project owner shall designate a specialized unit within its apparatus or a focal point to inspect and supervise execution of the consultant’s contract.

Article 41. Formulation, appraisal, approval and assignment of public investment plans funded by foreign funding sources for programs/projects funded by ODA and concessional loans

1. Formulation, appraisal, approval and assignment of public investment plans for projects funded by ODA/concessional loans shall comply with regulations laid down in Chapter III and Article 67 of the Law on Public Investment and the Government’s regulations on some articles of the Law on Public Investment.

2. ODA and concessional loans provided by foreign donors applying the domestic financial mechanism for on-lending thereof to domestic public non-business units shall comply with regulations of international treaties, agreements on ODA and concessional loans, and the Law on Public Debt Management and other applicable regulations.

3. Period for allocation of planned foreign fund and reciprocal capital for a project funded by ODA/concessional loans:

a) This period shall comply with regulations in clause 2 Article 67 of the Law on Public Investment;

b) If the period for allocation of reciprocal capital does not comply with regulations clause 2 Article 67 of the Law on Public Investment, this period shall be extended in accordance with clause 3 Article 57 of Law on Public Investment.

4. Disbursement of foreign fund allocated by the central budget and foreign fund for on-lending shall be consistent with the assigned annual plans and estimates; and does not depend on plans and estimates for other fund sources. The managing authority, local authority and public service provider shall maintain the disbursement ratio between the foreign fund allocated by the central budget and the foreign fund for on-lending in accordance with the approved financial mechanism upon completion of the project.

Article 42. Formulation and approval of overall plans for execution of programs/projects funded by ODA/concessional loans/reciprocal capital

1. The overall plan for execution of a program/project shall cover its entire duration, all components, items, operations, relevant funding sources (e.g. ODA, concessional loan, reciprocal capital) and schedule.

2. Within 30 working days from the date on which the specific international treaty or agreement on ODA/concessional loans is signed, on the basis of the feasibility study report and program/project documents approved by a competent authority, the decision on investment in the program/project, and the specific international treaty or agreement on ODA/concessional loan, the project owner shall cooperate with the foreign donor in formulating/reviewing/ updating the overall plan for execution of the program/project before submitting it to the managing authority for approval.

3. Within 05 working days from the date on which the overall plan for execution of the program/project is approved, the managing authority shall send the decision on approval enclosed with the overall plan to the Ministry of Finance, relevant agencies, and the foreign donor to supervise, assess and cooperate in execution of the program/project.

Article 43. Formulation and approval of annual plans for execution of programs/projects funded by ODA/concessional loans/ reciprocal capital

1. On the basis of the overall plan for execution of the program/project already approved by the managing authority, the actual disbursement and disbursement plan specified in the applicable specific international treaty/agreement on ODA/concessional loans, the project owner shall consider requesting the head of the managing authority to approve annual plans for execution of the program/project. Each annual plan for execution of the program/project funded by ODA/concessional loan is also part of the annual investment plan prepared by the managing authority.

2. The annual program/project execution plan shall contain detailed information about its components (divided into technical assistance component and construction investment component), main operations and items, funding sources including reciprocal capital, and expected schedule.

3. The annual plan approved by the managing authority serves as a basis for the project owner’s formulation of each quarterly plan serving management, supervision and assessment of execution of the program/project.

4. Every year, when formulating a socio-economic development plan and state budget estimate in accordance with applicable regulations, the managing authority shall incorporate each annual program/project execution plan in its annual public investment plan and annual budget plan. On the basis of the managing authority’s annual budget plans, the Ministry of Finance shall consolidate public investment capital plans and submit them to the Prime Minister that will consider approving annual socio-economic development plans and state budget estimates to be sent to the National Assembly for ratification.

5. Procedures for assigning duties in annual program/project execution plans shall comply with applicable regulations of the law on assignment of annual socio-economic development duties.

6. Within 05 working days from the date on which the annual plan for execution of the program/project is approved, the project owner shall send the decision on approval enclosed with the annual program/project execution plan to the managing authority and seek agreement from the managing authority to send them to the Ministry of Finance, relevant agencies, and the foreign donor to supervise, assess and cooperate in execution of the program/project.

7. Regarding a program/project eligible for full on-lending from the state budget: Every year when formulating a socio-economic development plan and state budget estimate, the project owner shall formulate a program/project execution plan and submit it to the managing authority for approval of the ODA or concessional loan financing plan and submit it to the Ministry of Finance, and the authorized on-lending authority for supervision. The managing authority and the project owner shall provide sufficient reciprocal capital according to the progress of the program/project.

8. Regarding a program/project eligible for partial on-lending from the state budget: Depending on the nature of each component (full grant or on-lending), the project owner shall apply procedures for formulating and submitting the program/project plan for each component in accordance with clauses 1, 2, and 7 of this Article.

Article 44. Reciprocal capital for preparation and execution of programs/projects

1. Reciprocal capital must be sufficiently and promptly provided according to the set schedule to prepare and execute the program/project (including prior activities, if any). Fund sources, fund and mechanism of the reciprocal capital must be suitable for expenditures of the program/project as agreed between the managing authority and the foreign donor, and specified in the feasibility study report, the program/project document appraised by a competent authority and the investment decision.

2. Reciprocal capital shall cover:

a) Costs for operations of the Project Management Unit (e.g. salaries, bonuses, allowances, offices, work equipment, administrative costs);

b) Costs of design appraisal, approval of overall budget estimate, completion of procedures for investment, construction and other necessary administrative procedures;

c) Costs related to contractor selection;

d) Costs for workshops, conferences, training in management and execution of the program/project;

dd) Costs of receipt and dissemination of international technology, experience and skills;

e) Costs of communication, advertising and community activities;

g) Taxes, customs fees, insurance premiums according to applicable regulations;

h) Interest expenses, deposits, commitment fees and other relevant fees payable to the foreign donor;

i) Costs for receipt and domestic transport of goods and equipment (if any);

k) Costs for account finalization and verification of final accounts;

l) Compensation, support and relocation costs;

m) Costs for some basic activities of the program/project (e.g. survey, technical design, construction of certain items, procurement of certain equipment);

n) Costs for supervision and evaluation; quality assurance and control, acceptance, hand-over and account finalization and audit of the program/project;

o) Cost contingency;

p) Other reasonable expenses;

q) The use of other fund sources for the above costs shall comply with regulations of relevant laws, regulations issued by the development partner and the international treaty/agreement on ODA/concessional loans, and program/project documents approved by the competent authority.

3. Regarding a program/project eligible for full grant from the state budget: the managing authority shall balance reciprocal capital in its annual budget estimate within the state budget management hierarchy and from other lawful capital sources (capital shall be clearly classified into capital for development investment and recurrent expenditures corresponding to spending items of the program/project); ensure that reciprocal capital is provided adequately, promptly, and suitably for the schedule as specified in the feasibility study report and the program/project document approved by the competent authority, the decision on investment, in accordance with regulations of the law on state budget and the specific international treaty or agreement on ODA/concessional loans.

4. Regarding a program/project eligible for full on-lending:

a) Regarding local governments eligible for full on-lending: The reciprocal capital shall be provided by local government budgets;

b) For enterprises and public service providers eligible for full on-lending: The project owner shall provide the reciprocal capital at their own expense or seek the competent authority’s decision to provide the adequate reciprocal capital for the program/project according to regulations before signing the on-lending contract.

5. For a program/project with the hybrid financial mechanism (the combined grant and on-lending mechanism): The managing authority or the project owner shall allocate sufficient reciprocal capital in accordance with regulations of relevant laws before signing the on-lending contract.

6. Regarding a program/project that is eligible for grant from the state budget, is not approved or concluded at the same time as the annual budget estimates, and hence not provided with reciprocal capital: The managing authority shall request the Ministry of Finance in writing to take actions within its jurisdiction, or seek the competent authority’s decision on inclusion in the annual budget estimate.

If the plan for provision of reciprocal capital for preparation and execution of the program/project is made at a different time from that of the annual budget plan, the managing authority shall provide it from the allocated capital for preparation and execution of the program/project; otherwise, the managing authority shall request the Ministry of Finance to decide or request a competent authority to provide additional funding, which will be deducted from the next year’s budget plan.

7. Reciprocal capital spending limits shall comply with regulations on stage budget spending and relevant laws.

Article 45. Taxes, fees and charges imposed upon programs and projects

Taxes, fees and charges imposed upon programs and projects shall comply with applicable regulations of law on taxes, fees and charges, and international treaties to which Socialist Republic of Vietnam is a signatory. In case of discrepancies between Vietnam’s law and the concluded international treaty, the latter shall apply.

Article 46. Compensation, support and relocation

Compensation, support and relocation serving execution of programs/projects shall comply with applicable regulations and international treaties on ODA and concessional loans to which Socialist Republic of Vietnam is a signatory. In case of discrepancies between Vietnam’s law and the concluded international treaty, the latter shall apply.

Article 47. Bidding

Bidding shall comply with regulations of Vietnam’s law on bidding.

Article 48. Unused funds

1. Unused funds may be used only after capital is fully provided to successfully fulfill objectives of a project or project items at an investment stage with respect to the project which involves various staged loans.

2. Procedures for deciding to use unused funds of a program/project funded by ODA/concessional loan:

a) On the basis of opinions provided by the foreign donor, the managing authority/the state-owned enterprise shall seek opinions from the Ministry of Finance and relevant agencies in writing about use of unused funds of the program/project funded by ODA/concessional loan.

b) On the basis of consolidated opinions from the Ministry of Finance and relevant agencies (if any), the managing authority shall decide to use unused funds and take responsibility for his/her decision.

c) Procedures for adjusting investment guidelines and decision during the use of unused funds according to regulations in Articles 17 and 20 of this Decree.

3. Procedures for deciding to use unused funds of a project/non-project funded by ODA grant:

a) The project owner shall return unused funds of the project/non-project funded by ODA grant to the donor if required by the donor.

b) In case the return of unused funds of the project/non-project funded by ODA grant is not required by the donor and the managing authority wishes to use such unused funds to increase efficiency in the project/non-project, it shall follow procedures for adjusting the investment decision (regarding an investment project) or the document approval decision (regarding a technical assistance project/non-project). Procedures for adjusting the investment decision are provided for in Article 20 of this Decree. Procedures for adjusting the document approval decision are provided for in Article 27 of this Decree.

c) In case the return of unused funds of the project/non-project funded by ODA grant is not required by the donor and the managing authority does not wish to use such unused funds to increase efficiency in the project/non-project, the project owner shall pay unused funds to the state budget according to regulations.

4. Reversal of unused funds from ODA/concessional loan

The managing authority/state-owned enterprise shall consolidate opinions provided by the Ministry of Finance and relevant agencies about reversal of unused funds of the program/project. On the basis of a proposal for reversal of unused funds, submitted by the managing authority/enterprise, the Ministry of Finance shall notify the donor of such reversal.

In case the reversal incurs a fund reversal fee or other fees, the managing authority/state-owned enterprise shall send a written request to the Ministry of Finance for reversal of unused funds of the program/project, including the fund reversal fee or other fees. On the basis such written request, the Ministry of Finance shall recommend the Prime Minister to give permission for reversal of unused funds before notifying such reversal to the donor. The managing authority/enterprise shall take responsibility and fulfill obligations to the fund reversal fee and other fees in case of an on-lending project.

Article 49. Management of construction, acceptance, hand-over, audit and account finalization

1. Regarding a construction investment project, appraisal of a feasibility study report; approval of an investment project; appraisal and approval of a construction design; issuance of a construction permit, management of quality of a construction, acceptance, hand-over, warranty and insurance of a construction work shall comply with regulations of the law on construction management and the international treaty on ODA/concessional loan to which the Socialist Republic of Vietnam is a signatory. In case of discrepancies between Vietnam’s law and the concluded international treaty, the latter shall apply.

2. Regarding a technical assistance program/project, after the completion of the program/project, the managing authority shall implement acceptance procedures and take necessary measures to continuously operate it and maximize achievements, as well as comply with applicable regulations on management of finance and assets of the program/project.

3. The audit and account finalization of the program/project shall comply with applicable regulations and international treaties on ODA and concessional loans to which the Socialist Republic of Vietnam is a signatory, or at the request of the foreign donor. In case of discrepancies between Vietnam’s law and the concluded international treaty, the latter shall apply.

Article 50. Monitoring, inspecting, assessing and supervising programs/projects funded by ODA and concessional loans

1. An investment program/project funded by ODA/concessional loan shall be monitored, inspected, assessed and supervised as follows:

a) The investment program/project funded by ODA/concessional loan shall be monitored, inspected, assessed and supervised in accordance with regulations in Articles 73, 74, 75, 76, 77, 78, 79, 80 of the Law on Public Investment and relevant laws. In case of discrepancies between Vietnam’s law and the concluded international treaty, the latter shall apply;

b) The Ministry of Finance shall develop, manage and run a national information system and database of public investment; an information system for supervising assessment of investment;

c) Ministries and central and local authorities shall apply the national information system and database of public investment; and the information system for supervising assessment of investment within their management.

2. A technical assistance project funded by ODA grant independent of any loan or non-project shall be monitored, inspected, assessed and supervised as follows:

a) Regarding monitoring and inspection of the project/non-project: the project owner shall monitor and inspect the execution of the program/project/non-project on the basis of its documents approved by the competent authority in order to achieve the set objectives, and periodically report to the managing authority on monitoring and inspection results;

b) Regarding assessment of the project/non-project: Within 03 months from the date of closure of the program/project/non-project, the project owner shall complete an assessment report for closure of the program/project/non-project, including execution process; results of fulfillment of objectives; resources mobilized; benefits to beneficiaries; impacts, sustainability; lessons learned and necessary recommendations; responsibilities of relevant agencies, organizations and individuals;

c) Regarding regulations on report on execution of the project/non-project by the managing authority/project owner: the managing authority/project owner shall send a report according to applicable regulations.

Chapter VI

STATE-OWNED ENTERPRISES’ USE OF ODA AND CONCESSIONAL LOANS GRANTED BY FOREIGN DONORS

Article 51. Fields and conditions for use of ODA and concessional loans granted by foreign donors

1. State-owned enterprises may use ODA and concessional loans granted by foreign donors for investment in projects in the priority fields referred to in Article 5 hereof in conformity with industries and business sectors specified in establishment decisions or enterprise registration certificates.

2. Conditions for use of ODA and concessional loans granted by foreign donors:

a) State-owned enterprises eligible to use ODA and concessional loans granted by foreign donors must be enterprises of which charter capital is wholly held by the State and subsidiaries thereof (hereinafter referred to as “state-owned enterprises).

b) 100% of ODA/concessional loan is on-lent to state-owned enterprises in accordance with the Government’s regulations on on-lending of ODA and concessional loans granted by foreign donors;

c) State-owned enterprises shall agree to record increases in state capital contributions to enterprises in case of ODA grants associated with loans (if any) for execution of investment projects.

d) There are letters of interest or written commitments given by foreign donors to grant loans to state-owned enterprises’ projects; the Prime Minister’s decisions to give permission for guidelines for rise in ODA and concessional loans for programs/projects.

Article 52. Approval of investment guidelines

1. Jurisdiction to approve investment guidelines shall be exercised in accordance with Articles 30, 31 and 32 of the Law on Investment.

2. Applications and procedures for approving investment guidelines shall comply with Articles 33, 34, 35 and 36 of the Law on Investment.

Article 53. Investment decision

Jurisdiction, applications and procedures for decisions on investment in programs/projects funded by ODA and concessional loans granted by foreign donors and fully on-lent to state-owned enterprises shall comply with laws on enterprises, construction, management and use of state capital invested in enterprises, and other relevant laws.

Article 54. Signing, amending and extending international treaties or agreements on ODA and concessional loans

International treaties or agreements on ODA and concessional loans shall be signed, amended and extended in accordance with regulations in Chapter IV of this Decree and Article 29 of the Law on Public Debt Management.

Article 55. On-lending of ODA and concessional loans

1. On-lending of ODA and concessional loans to state-owned enterprises shall comply with the Law on Public Debt Management and the Government’s regulations on on-lending of ODA and concessional loans granted by foreign donors.

2. Before requesting competent authorities to approve investment guidelines, state-owned enterprises shall be responsible for sending the Ministry of Finance documents proposing credit institutions to act as on-lending authorities under the authorization and on-lending methods after credit institutions grant approval.

Article 56. Adjustment to projects

Projects shall be adjusted in accordance with Article 41 in the Law on Investment and the Government’s regulations elaborating on and providing instructions for implementation of a number of Articles of the Law on Investment.

Article 57. Setting 5-year on-lending limits and developing annual on-lending plans and limits

5-year on-lending limits and annual on-lending plans and limits shall be set and developed in accordance with the Law on Public Debt Management and relevant laws.

Article 58. Management, implementation, supervision, assessment and reporting

Management, implementation, supervision, assessment and reporting shall comply with applicable regulations.

Chapter VII

FINANCIAL MANAGEMENT OF ODA AND CONCESSIONAL LOANS

Section 1. OPENING AND MANAGEMENT OF PAYMENT ACCOUNTS

Article 59. Opening payment accounts for programs and projects funded by ODA or concessional loans at State Treasuries and service banks

1. Account for ODA/concessional loans:

a) ODA and concessional loans channeled to the state budget shall be managed, recorded and monitored on an account of each budget level;

b) The project owner shall open the project’s account at the State Treasury or a service bank to receive ODA and concessional loans for the program/ project.

2. Account for reciprocal capital: The project owner shall open an account at the State Treasury that is convenient for their transactions so as to control and pay reciprocal capital (domestic capital) for the project, or at a bank selected by the Ministry of Finance (in case of on-lending of all capital to enterprises).

Article 60. Jurisdiction to select service banks

1. Projects owners (employers) shall select banks serving programs/projects funded by ODA and concessional loans granted by foreign donors.

2. The Ministry of Finance shall select banks to serve programs and projects funded by ODA and concessional loans granted by foreign donors in case where there are multiple project owners (employers) or as requested by foreign donors.

Article 61. Criteria for selection of service banks for programs/projects funded by ODA and concessional loans

1. A bank designated as a service bank for a program/project must have experience in management of withdrawal of ODA/concessional loan, on the basis of the ratings of an international credit rating organization, meet banking professional standards and qualifications, and comply with regulations on prudential ratios in banking operations.

2. The bank’s branches shall meet requirements of the program/project.

3. The bank shall fulfill responsibilities as stipulated in Article 62 of this Decree.

Article 62. Responsibilities of service banks

1. Implement procedures as requested by the Ministry of Finance or project owners for opening ODA and concessional loan accounts for programs or projects in accordance with international treaties/agreements on ODA and concessional loans signed by competent authorities, as well as regulations laid down in Chapter VII of this Decree.

2. Monitor and manage accounts, conduct banking transactions and collect fees according to regulations, report information on accounts provided for programs and projects funded by ODA and concessional loans according to regulations in Chapter VII of this Decree.

Article 63. Principles of opening and managing designated accounts for advance payment of ODA and concessional loans

1. The State Treasury where transactions are conducted or the service bank shall initiate procedures for opening a designated account for advance payment (transaction account) for the project owner or the Ministry of Finance in accordance with payment requirements of the project, thereby ensuring the direct transfer of capital to the project without any intermediary account. In case where a project is supported by multiple financial sources, a separate account must be opened for each source.

2. If a project is executed by multiple units appointed by the managing authority, the project owner shall open sub-accounts at the State Treasury where transactions are conducted or the service bank’s branches.

3. The currency of the account shall be foreign currency of the loan (unless a VND account is accepted by the Ministry of Finance).

4. Management of interest earned on an advance payment account:

a) Interest generated by the advance payment account shall be separately recorded and monitored and used for payment of banking fees as prescribed. Banking fees shall be recorded as expenses of the project. In case the interest generated is not sufficient to cover the banking fees, the project owner shall prepare a cost estimate and cover it with reciprocal capital;

b) If the project is eligible for full disbursement by state budget, the unused interest on the advance payment account shall be transferred in full to state budget. If the project is eligible for full on-lending, the unused interest will be the project owner’s revenue. If the project is eligible for pro-rata on-lending, the unused interest shall be distributed proportionally.

Article 64. Responsibilities of authorities opening accounts for programs/projects funded by ODA and concessional loans

1. At the request of the project owner that is also the account holder, the State Treasury or service bank shall provide instructions on necessary documents and procedures for opening a payment account, and carry out payment, disbursement transactions and other tasks as per applicable regulations.

2. The State Treasury or service bank shall provide instructions and adequate information for the project owner to make payments through its system.

3. Every month as agreed by the account-opening authority and the account holder and upon request by the account holder, the account-opening authority shall send account statements which specify the amounts in the original currency, beneficiaries, transaction date, exchange rate, equivalent value in VND, opening balance, outflows and closing balance to the account holder.

4. Every month as agreed by the account-opening authority and the account holder and upon request by the account holder, the account-opening authority shall send notification of interest generated by the advance account (if any), banking fees collected, the difference between the interest and total fee, the opening balance and closing balance to the account holder.

5. Within 02 working days from the date of receipt of the notification of disbursement from the foreign donor, the account-opening authority shall credit it to the advance account and inform the account holder.

6. Before the 10^th of every month, the State Treasury or service bank shall send a consolidated report to the Ministry of Finance on the previous month’s activities of ODA/concessional loan accounts in its entire system. The report shall specify names of projects, project owners, accounts, sub-accounts (each account/sub-account is used for a funding source); ODA grants separated from loans; opening balance, disbursed amounts during the period, total expense, closing balance, refunds to foreign donors (if any); interest on the accounts, interest used to pay banking fees, unused interest at the end of the period.

7. Annually the account balance shall be compared with that of the project owner at the end of the fiscal year.

Section 2. ANNUAL FINANCIAL PLANS FOR ODA AND CONCESSIONAL LOANS

Article 65. Principles of formulation of annual financial plans for programs/projects funded by ODA and concessional loans

1. On the basis of medium-term plans approved by competent authorities, managing authorities shall formulate annual financial plans for programs/projects funded by ODA and concessional loans.

2. Each program, project or specific treaty/agreement on ODA or concessional loan shall have a separate financial plan. Foreign fund derived from the central budget, on-lent foreign fund and reciprocal capital granted from the central government budget or a local government budget shall be specified in the plan. In case where a project is funded by the pro-rata on-lending approach, the financial plan shall reflect the exact ratio of granted and on-lent amounts in line with the financial mechanism approved by the competent authority.

3. The allocation of ODA, concessional loans and reciprocal capital mentioned in the annual budget estimate shall be conformable with the signed international treaties/agreements on ODA and concessional loans, and suitable for disbursement capacity of programs and projects funded by ODA/concessional loans.

4. The formulation of annual financial plans for programs/projects funded by ODA and concessional loans shall adhere to procedures for formulation of annual state budget estimates according to regulations of the Law on State Budget and relevant laws.

Article 66. Integration of financial plans for ODA and concessional loans into annual state budget estimates

1. Regarding development investment expenditure programs/projects funded by state budget, ministries, central and local authorities shall prepare public investment plans and send them to the Ministry of Finance that will integrate such plans in annual state budget estimates.

2. Regarding on-lent loans to provincial People’s Committees, these provincial People’s Committees shall formulate on-lent capital withdrawal plans and request competent authorities in accordance with the Government’s Decree on management of local governments’ debts to send such plans to the Ministry of Finance to integrate them into state budget estimates and report to competent authorities for decision.

3. Regarding on-lending projects set up by enterprises or public service providers, project owners shall send the Ministry of Finance, managing authorities and on-lending authorities authorized written registration of annual plans on disbursement of on-lent capital. The Ministry of Finance shall submit a consolidated report to the Government, which will decide annual limits on ODA loans and concessional loans for the on-lending purpose as prescribed.

Article 67. Entry and approval of annual cost estimates on Treasury and Budget Management Information System (TABMIS)

1. As for central budget, on the basis of a budget estimate approved by the National Assembly and assigned by the Prime Minister, the managing authority shall perform allocation and make a record for the Ministry of Finance’s verification and approval of a funding budget estimate from ODA/concessional loan/ODA grant associated with each foreign donor’s loan on TABMIS as per regulations on TABMIS operation and relevant guiding documents.

2. As for local government budget, on the basis of the budget estimate approved by the provincial People’s Council and assigned by the provincial People’s Committee, the provincial Department of Finance shall enter and verify a capital investment plan and a recurrent expenditure estimate from ODA/concessional loan/ODA grant associated with the foreign donor’s loan and concessional loan as a targeted transfer to the local government budgets; the Government’s ODA loan/ODA grant associated with the foreign donor’s loan for on-lending to the local government budget on TABMIS according to applicable regulations.

3. The entry of estimates into TABMIS shall make sure that sources of ODA/concessional loans granted, dedicated supplementary ODA loans and concessional loans for local governments, and ODA loans and concessional loans on-lent to local governments are exactly provided; and conform to portfolio and norms of dedicated supplementary ODA loans and concessional loans for local governments as assigned by competent authorities.

Section 3. CONTROL OF EXPENDITURES COVERD BY ODA AND CONCESSIONAL LOANS

Article 68. Principles of controlling expenditures

Control of expenditures covered by, and payment of ODA and concessional loans (hereinafter referred to as “expenditure control”) shall comply with applicable regulations on state budget funding.

1. All expenditures on a program/project funded by ODA loan or concessional loan, including those in the form of letters of credit or authorized payments by the foreign party shall be controlled on the basis that all expenditures are estimated and conformable with the concluded international treaty/agreement on ODA or concessional loan, letter of interest or written commitment given by the foreign donor and applicable regulations on financial management.

2. Expenditures on programs and projects funded by foreign ODA and concessional loans fully granted by the state budget or eligible for partial on-lending on a pro-rata basis shall be controlled according to applicable regulations on state budget capital within the approved foreign capital estimate, annual on-lending plans, or revisions thereof made in the year (if any) approved by competent authorities.

3. Procedures for and documentation on control of expenditures, written requests for certification of valid non-business capital expenditures and written requests for payment of capital expenditures by project owners shall comply with regulations of law on administrative procedures in the field of state treasury.

4. Deadline for control of advances and payments made during the budget year:

a) Regulated advances: the project owner shall send documentation to an expenditure-controlling authority by December 31 every year.

b) Payments for completed works shall be controlled until January 31 of the next year.

5. Regarding on-lending projects and components within credit limits applicable to loan agreements signed in 2017 and earlier: Dossiers and procedures for controlling expenditures on on-lending projects and components within credit limits shall comply with regulations issued by credit institutions using on-lent loans and the signed specific international treaties and agreements on ODA and concessional loans. Credit institutions to which ODA or concessional loans are on-lent shall be legally responsible to the law for the eligibility and validity of the loans and fees in their statements of expenditures sent to the Ministry of Finance when preparing and submitting foreign capital withdrawal dossiers.

6. Dossiers and procedures for controlling expenditures on full on-lending projects and project components shall comply with regulations of clause 3 of this Article and on-lending contracts.

7. On the basis of the project owner’s expenditure control proposal for all forms of withdrawal, the expenditure-controlling authority shall control expenditures, according to the signed international treaty/agreement on ODA/concessional loans and payment terms set in each contract (e.g. number of payments, payment period, time of payment and payment conditions) or the approved estimate for non-contractual payment, and the value of each payment, percentage and amount of provided and on-lent capital specified at the project owner’s expenditure control proposal for each payment. The project owner is responsible for the contractor selection method, accuracy and legitimacy of the volume of works paid for, norms, unit prices and cost estimates of works, construction quality and compliance with applicable laws. The project owner shall take responsibility for managing and using capital for right purposes and subjects and in an economical and effective manner, abide by regulations on percentage of on-lent capital (in case of partial on-lending on a pro-rata basis) approved by the competent authority by the project completion year and strictly comply with regulations of law on financial management of ODA and concessional loans.

Article 69. Expenditure-controlling authorities

1. State Treasuries at all levels shall control payment documents included in projects or project components that are fully funded by state budget; provincial People’s Committees’ projects that are partially funded by state budget and on-lent capital on a pro-rata basis and on-lending projects.

2. On-lending authorities authorized by the Ministry of Finance shall control payment documents included in projects or project components that are entirely funded by on-lent capital.

3. The Ministry of Finance shall appoint appropriate authorities controlling expenditures on programs and projects other than those mentioned in clause 1 and clause 2 of this Article and make sure that a single expenditure is not controlled by more than one authority.

Article 70. Expenditure control forms

1. Prior expenditure control means that an expenditure control authority inspects and validates the legality and validity of expenditures before the project owner withdraws capital to pay the contractor or each beneficiary. Prior expenditure control shall apply to expenditures other than those specified clause 2 of this Article.

2. Post expenditure control means that an expenditure control authority inspects and validates the legality and validity of expenditures after the project owner withdraws capital to pay the contractor or each beneficiary. Post expenditure control shall apply to:

a) Payment from the advance account to the contractor or supplier, except for advance accounts held by the Ministry of Finance and subject to prior expenditure control;

b) Transfer of advances from an advance account to secondary accounts if a project is managed at multiple levels;

c) Expenditures from secondary accounts on project management specified in the budget estimate approved by a competent authority;

d) Payments by L/C for purchase of goods and equipment, except for the last payment.

3. Within 30 working days from the capital withdrawal date, the project owner shall complete payment documents and send them to the expenditure controlling authority to serve as a basis for the next payment. Where necessary, the project owner may reach a consensus with the contractor on prior control of expenditures specified in clause 2 of this Article and notify the expenditure controlling authority for cooperation.

Section 4. WITHDRAWAL AND ACCOUNTING RECORDS OF ODA AND CONCESSIONAL LOANS

Article 71. Forms for withdrawal of ODA and concessional loans

Forms for withdrawal of ODA and concessional loans include:

1. Withdrawal and transfer of ODA/concessional to state budget: ODA/concessional loan shall be disbursed and transferred to the state budget with regard to direct budget support or result-based aid.

2. Withdrawal of ODA/concessional loan granted to a program/project: Withdrawal of ODA/concessional loan granted to a program/project shall apply one or some of the following forms: Direct payment, payment by L/C, reimbursement, advance account.

Article 72. Time limit for withdrawal of ODA and concessional loans

1. The time limit for processing a withdrawal application at the Ministry of Finance is 04 working days from the date of receipt of the complete application as required by law. The time limit for processing an expenditure statement is 07 working days from the date of receipt of the complete statement as required by law.

2. In case where the last disbursement occurs in the year in which a program/project funded by ODA/concessional loan is completed, the project owner shall send the withdrawal application to the Ministry of Finance before December 31 (of the plan year) to ensure the disbursement to be completed before January 31 of the following year. In case of a force majeure event which results in failure to complete the disbursement before January 31 of the following year (including the case where the expenditure control has been exercised and the withdrawal application has been submitted by January 31 of the following year but the foreign donor has not notified such withdrawal), extension of time limit and disbursement of medium-term and annual public investment capital shall comply with regulations in clause 1 and clause 2 of Article 72 in the Law on Public Investment with regard to a plan for ODA/concessional loan granted by central government budget, regardless of on-lending percentage.

Article 73. Procedures for withdrawing ODA and concessional loans

1. Procedures for withdrawing ODA and concessional loans in the form of budget support:

a) The project owner/managing authority shall preside over or cooperate with the Ministry of Finance and relevant agencies in fulfilling a Vietnam’s commitment as agreed upon with the foreign lender to satisfy prerequisites for withdrawal of ODA/concessional loan stated in the signed specific international treaty/agreement on ODA/concessional loan;

b) Regarding general budget support, the Ministry of Finance shall prepare a withdrawal application and send it to the foreign lender, and transfer the withdrawn loan to the state budget for use according to the signed international treaty/agreement on ODA/concessional loan;

c) Regarding central government budget support for the national target program, after reaching an agreement with the authority managing component projects, the authority presiding over managing the national target program shall agree with the Ministry of Finance on the withdrawal time and ODA/concessional loan to be withdrawn, and ensure that the disbursed amount is incorporated in the public investment plan and the annual estimate of the program and component projects; prepare a withdrawal application to be submitted to the Ministry of Finance according to the signed international treaty/agreement on ODA/concessional loan;

ODA and concessional loans that are disbursed and transferred to the state budget shall be allocated to component projects in accordance with applicable procedures for managing state budget capital.

2. Procedures for withdrawing ODA and concessional loans in the form of result-based aid:

a) The project owner/managing authority shall preside over or cooperate with relevant agencies in fulfilling disbursement criteria as agreed upon with the foreign lender to serve as a basis for withdrawal. The project owner is entitled to receive an advance in accordance with regulations issued by the foreign lender in order to carry out the agreed work for fulfillment of commitment associated with disbursement criteria;

b) The project owner/managing authority shall preside over or cooperate with relevant agencies in making reports, documents, or providing documents that prove the fulfillment of the disbursement criteria prescribed in the signed international treaty/agreement on ODA/concessional loan, and sending them to the foreign lenders. The project owner shall submit a withdrawal application to the Ministry of Finance according to regulations issued by the foreign lender;

c) The disbursed ODA/concessional loan shall be transferred to the account held by the authority executing the program/project and opened at the State Treasury as agreed upon with the donor. Expenditures shall comply with applicable state budget management procedures. At the end of each fiscal year, the balance in the foreign capital estimate shall be handled according to applicable regulations on state budget management; the cash balance on the designated account for advance payment shall continue to be used for activities of the program/project in the subsequent fiscal year in accordance with regulations;

d) When withdrawing ODA/concessional loan in the form of result-based aid, the project owner may use the exchange rate between Special Drawing Rights (SDR) and Vietnam Dong (VND) published on the donor’s web portal at the time of preparation of the withdrawal application.

3. Procedures for withdrawing ODA and concessional loans in the form of project-based aid:

a) Withdrawal forms:

Direct payment: Money will be directly paid to the contractor/supplier of the project;

L/C: An L/C will be issued by a bank at the request of the project owner on the basis of opinions provided by the donor and the Ministry of Finance on payment source from the Government’s foreign loan/aid;

Reimbursement: The foreign donor reimburses the project owner for legitimate expenses of the project that have been paid for by the project owner;

Designated account for advance payment: The foreign donor transfers an advance to an account opened at a service bank or the State Treasury for the project owner to pay for legitimate expenditures in order to reduce the number of loan withdrawals;

Regarding a program/project funded in the form of withdrawal and transfer of loan to an advance account, the project owner (employer) shall report on expenditures and send the letter of transmittal to return proofs of these expenditures each month. The time limit for return of proofs of expenditures from the advance account to the Ministry of Finance shall not exceed 06 months. After the 6-month time limit, if the project owner (employer) does not return these proofs, the method of direct payment for subsequent disbursements shall be applied.

b) After the foreign donor notifies that the Vietnamese party has fulfilled prerequisites for withdrawal as specified in the signed international treaty/agreement on ODA/concessional loan, the project owner or the Project Management Unit shall prepare an application for withdrawal, using the form provided by the foreign lender and in each withdrawal form, and submit the application to the Ministry of Finance;

c) In case where the foreign lender requests additional documents or only accepts part of the application, the Ministry of Finance or the foreign lender shall notify the project owner to cooperate in promptly responding to the foreign lender’s reasonable requests.

d) Regarding each withdrawal transaction, the project owner or the authorized unit shall prepare and send a withdrawal application in line with each form of withdrawal to the Ministry of Finance. The application is prescribed in the Appendix V hereto. The project owner shall be responsible for accuracy and validity of the application, including controlled expenditures (to avoid double spending), work volume accepted and paid for, norms, unit prices, estimates of costs for different types of work, instructional information about payment to contractors. This application must comply with regulations of law on financial management of ODA and concessional loans;

dd) Electronic withdrawal procedures shall be followed on the online public service portal of the Ministry of Finance or the national online public service portal and applied to all withdrawal applications, except for special cases as specified by the Ministry of Finance in Decisions to publicly announce administrative procedures for withdrawing foreign loans;

4. Introduction and invalidation of specimen signature affixed to the ODA/concessional loan withdrawal application: The managing authority shall send the Ministry of Finance the letter of introduction or the notification of invalidation of the specimen signature of the project owner or the Project Management Unit authorized by the project owner for any project applying the pro-rata grant or on-lending mechanism; the final borrower shall send the Ministry of Finance the letter of introduction or the notification of invalidation of the specimen signature of the project owner or the Project Management Unit authorized by the project owner for any project applying the full on-lending mechanism.

Article 74. Principles of recording ODA and concessional loans in state budget

1. ODA and concessional loans used to offset the state budget deficit shall be fully and accurately recorded in the state budget in the original currency and VND at the applicable exchange rate.

2. Regarding programs and projects that apply full or partial grant mechanism on a pro-rata basis and are subject to expenditure control at the State Treasury, ODA and concessional loans fully granted or on-lent to provincial People’s Committees shall be recorded in the state budget by the State Treasury where transactions are conducted.

3. State budget accounting records shall be made on the basis of documents on disbursement of ODA and concessional loans transferred to authorities, organizations and units as notified by foreign donors. Regarding payment from a designated account for advance payment, the project owner shall prepare a written request for accounting record of ODA/concessional loan, specifying percentage of granted/on-lent loan by each payment and submit it to the State Treasury for certification while expenditure control procedures are followed. For other loan withdrawal forms, the project owner shall prepare a written request for accounting record of ODA/concessional loan, specifying percentage of granted/on-lent loan by each payment while expenditures have been controlled by the State Treasury, and submit it to the State Treasury for certification within 03 working days from the date of receipt of disbursement documents from the foreign donor, and to the Ministry of Finance for supervision.

Article 75. Recording direct budget support

According to receipts or written notes provided by service banks, the State Treasury shall debit ODA and concessional loans, and record ODA and concessional loan revenues in the state budget as prescribed by regulations; In case of transfer of foreign currencies to the centralized foreign currency fund, the State Treasury shall record them according to regulations on state budget’s revenues or loans in foreign currencies.

Article 76. Recording ODA and concessional loans at the State Treasury

The State Treasury shall record revenues from and expenditures on projects funded by ODA and concessional loans granted by state budget and on-lent to programs and projects subject to expenditure control at the State Treasury. To be specific:

1. ODA and concessional loans granted by state budget, dedicated supplementary ODA loans and concessional loans for local governments, and ODA loans and concessional loans on-lent to local governments shall be recorded according to their correct source codes and ODA grants associated with loans shall be recorded in a detailed manner.

2. Regulated advances shall be recorded as expenditures. Recovered advances shall be recorded as decreases in advances

3. Payments for completed works shall be recorded as actual expenditures and revenues and included in the annual financial statement.

4. Expenditures included in annual plans, controlled and disbursed before January 31 of the next year shall be recorded by State Treasury as revenues and expenditures of the current year. Expenditures controlled before January 31 of the next year and disbursed after January 31 of the next year shall be included in a plan of the next year by the project owner to be recorded as revenues and expenditures.

5. Records of revenues and expenditures shall be prepared in accordance with the Government’s regulations on State Treasury-related administrative procedures and be sent by the project owner to the State Treasury where transactions are conducted in order to certify accounting records by February 01 of the next year.

Article 77. Recording ODA and concessional loans on-lent at the Ministry of Finance

1. Regarding the Government’s ODA/concessional loan on-lent by the Ministry of Finance; loan on-lent by a financial institution or credit institution authorized by the Ministry of Finance to act as an on-lending authority to an investment program/project: on the basis of the donor’s disbursement notification and the project owner’s statement of disbursement, the Ministry of Finance shall record debt obligations in accordance with regulations on accounting guidelines applicable to the Government and local governments’ loans and repayments; make statistics on debts arising from on-lending and Government guarantee.

2. When adjusting accounting records of programs and projects, made by the Ministry of Finance, on the basis of the disbursement notification given by the foreign donor, the Ministry of Finance shall make an adjustment sheet and send copies thereof to the on-lending authority and the project owner to adjust accounting data accordingly on finance and account finalization reports on foreign capital.

Article 78. Accounting exchange rate and disbursement exchange rate

1. The amount directly disbursed by the donor and paid with L/C to the contractor or supplier, when being recorded in VND shall apply the transfer buying rate at the beginning of the day published by the service bank or the bank where the State Treasury opens its account, or the transfer buying rate at the beginning of the day published by Joint Stock Commercial Bank for Foreign Trade of Vietnam in case the service bank is not available on the date when the donor makes loan to the Government.

2. Regarding the amount directly paid by the donor in a currency other than the currency used for indebtedness, the actual exchange rate between the currency of indebtedness and the currency of payment shall be applied.

3. Regarding expenditures derived from the designated account for advance payment and expenditures derived from the designated account for advance payment in a currency other than the currency of loan and in foreign currency, the transfer buying rate for the respective foreign currency of the service bank or the bank where the State Treasury opens its account at the time of payment shall be applied.

4. When converting advanced revenue or expenditure to actual expenditure on completed volume, the transfer buying rate at the beginning of the day published by the service bank or the bank where the State Treasury opens the account at the time on which the revenue or expenditure is recorded shall be applied in order to recover advances.

5. The project owner shall be responsible for determining and applying the exchange rate when requesting the State Treasury where transactions are conducted to control expenditures or record expenditures in foreign currencies as per law.

6. The project owner shall re-assess the exchange rate for each monetary item denominated in the foreign currency related to the project at the end of the accounting period before preparing a financial statement and as requested by the donor and monetary items in foreign currencies must undergo exchange rate reassessment according to accounting regulations applied by the unit.

Article 79. Time limit for state budget accounting

1. Expenditures derived from ODA and concessional loans, controlled and disbursed until January 31 of the following year shall be recorded at the State Treasury where transactions are conducted within 05 working days.

2. The State Treasury shall completely record expenditures derived from ODA and concessional loans in the current year within 30 days from January 31.

3. Procedures for recording ODA and concessional loans in the state budget shall comply with the Government’s regulations on administrative procedures in the field state treasury.

Section 5. REPORT, ACCOUNTING, AUDIT, ACCOUNT FINALIZATION AND INSPECTION

Article 80. Report on ODA and concessional loans

1. The project owner or the Project Management Unit shall submit a report on the national information system and database of public investment.

a) The overall program/project execution plan and revisions thereto (if any) shall be reported by the project owner or Project Management Unit within 10 working days from the date of receipt of the written approval from the managing authority;

b) Annual disbursement demands and capital allocation plans and revisions thereto (if any) shall be reported by the project owner or Project Management Unit within 10 working days from the date of receipt of the written approval from the managing authority;

c) The actual ODA and concessional loan disbursement progress shall be reported by the project owner or Project Management Unit on the national information system and database on public investment within 05 working days after the end of the month.

2. The Ministry of Finance shall provide guidance on forms of reports mentioned in this Article.

Article 81. Report on state budget accounting and disbursement 

1. Within 15 working days from the end of each quarter, the project owner shall control expenditures at the State Treasury and send a report to the managing authority and the financial institution of the same level on disbursement of ODA/concessional loans in the quarter, together with the state budget revenue-expenditure accounting notes certified by the State Treasury where transactions are conducted.

Enterprises and public service providers that receive on-lent amounts shall comply with regulations on report on disbursement under the Government’s Decree on on-lending.

2. Within 30 working days from the expiry date of the disbursement of ODA/concessional loans according to the international treaty/agreement, the project owner shall send a report on completion of the withdrawal of ODA/concessional loans to the managing authority to serve as a basis for the project’s account finalization; the managing authority shall send a report to the Ministry of Finance to serve as a basis for the completion of disbursement at the request of the donor.

3. The project owner shall compile and send a financial statement to the foreign donor according to the signed international treaty/agreement on ODA and concessional loans, feasibility study report and project documents (if any) and concurrently send them to the managing authority and the financial institution of the same level to promptly monitor and direct the financial management of the program/project.

4. Annually, within 60 working days from the end of the reporting period, to facilitate reconciliation between the recorded data and the actual disbursement, the managing authority shall compile, consolidate and provide the Ministry of Finance, the State Treasury with disbursement reports and accounting records of state budget revenues and expenditures derived from ODA and concessional loans.

5. The Ministry of Finance shall provide guidance on forms of reports on disbursement.

Article 82. Accounting, audit and account finalization

Accounting, auditing, and account finalization of programs and projects funded by ODA and concessional loans shall comply with regulations applicable to state budget capital and follow guidelines provided by the Ministry of Finance while maintaining compatibility with the unique contents of the ODA and concessional loans.

Article 83. Asset management

Management of public assets formed from foreign ODA and concessional loans shall comply with regulations of law on management and use of public assets.

Section 6. OTHER REGULATIONS ON FINANCIAL MANAGEMENT

Article 84. Unique contents of programs/projects funded by ODA and concessional loans

1. Contractual advance, recovery of advances, withheld ratio pending for warranty shall comply with terms of a contract between the project owner and the contractor in accordance with regulations of law on contracts. The project owner shall be responsible for managing and recovering advances made to the contractor. In case of failure to recover advances, the project owner shall be responsible for repaying the donor.

2. Regarding every request for certification and payment of the warranty amount for transfer to the contractor, the project owner shall send the State Treasury a schedule to monitor the progress of transfer of the warranty amount and accumulated amounts to be transferred for reconciliation and confirmation of the warranty amount in accordance with terms of the contract so that the project owner can make the payment to the contractor.

Article 85. Regulations on financial management of projects whose recurrent expenditures are prescribed in the signed international treaties and loan agreements

1. The project owner shall prepare withdrawal and disbursement plans in the planning year and 02 subsequent years for each program or project, containing specific amount of ODA loan, concessional loan, and ODA grant used for recurrent expenditures and reciprocal capital, and submit them to the Ministry of Finance.

2. The Ministry of Finance shall consolidate and include plans for provision of ODA loans and ODA grants associated with loans to cover recurrent expenditures for ministries, ministerial authorities, central authorities and provincial People’s Committees and in annual state budget estimates.

3. After funds for recurrent expenditures are approved by the competent authority, relevant agencies shall enter them into TABMIS as per applicable regulations.

4. Control of expenditures on projects or recurrent expenditures shall comply with the Law on State Budget and its guiding documents.

5. Recurrent expenditure projects shall apply public sector accounting regulations. The owner of a project that involves both investment expenditures and recurrent expenditures shall request the managing authority to decide to apply appropriate accounting regulations.

6. Within 06 months from the end of the disbursement, regarding a project funded by ODA/concessional loan and allocated funding for recurrent expenditures, the Project Management Unit shall prepare an account finalization report, containing specific amount of ODA loan, concessional loan, ODA grant and reciprocal capital on the basis of all account finalization data consolidated in multiple years throughout the duration for execution of the project and approved by the competent authority and send such report to the managing authority. The managing authority shall prepare and submit a consolidated report to the Ministry of Finance.

7. The project owner (budget-using unit) shall prepare and submit annual account finalization reports and annual financial statements to the managing authority (directly superior accounting unit), or send them to a financial institution (if the directly superior accounting unit is not available) according to law on guidelines for public sector accounting regulations. The approval, appraisal and notification of annual account finalization shall comply with the Ministry of Finance’s regulations on approval, appraisal, notification and consolidation of annual account finalization.

Chapter VIII

FINANCIAL MANAGEMENT OF ODA GRANTS

Article 86. Principles of financial management of ODA grants

1. ODA grants managed and used by Vietnamese parties shall be estimated, controlled, recorded and finalized in accordance with regulations of the law on state budget and financial management specified in this Decree. Regarding new ODA grants that have not been incorporated in the budget estimate allocated and assigned by the competent authority, the project owner shall make an additional estimate in accordance with regulations of law on state management and relevant laws.

2. Regarding ODA grants directly used and managed by donors: Managing authorities shall be responsible for management according to the signed international treaties, agreements on ODA grants, aide memoire (commitment letters, letters of intent, discussion records, memorandums of understanding, etc.) program/project documents or decisions on investment in programs/projects; in line with their functions and duties; in compliance with applicable regulations on receipt of ODA grants. In case the donor hands over assets and equipment of the program or project to the project owner, the project owner shall manage and use such assets and equipment in accordance with regulations of law on management and use of public assets.

3. ODA grants in the fields of science, technology, innovation and digital transformation managed and used by Vietnamese parties shall be consolidated and state budget estimates for such ODA grants shall be made in accordance with the Law on State Budget No. 89/2025/QH15. State budget expenditures on science, technology, innovation and digital transformation shall comply with regulations in clause 4 Article 58 of the Law on State Budget No. 89/2025/QH15 and budget-using units shall send expenditure requests to the State Treasury where transactions are conducted (budget withdrawal requests/payment orders) for payment when such expenditures are included in budget estimates assigned by competent authorities.

4. Regarding mixed ODA grants, regulations on financial management of ODA and concessional loans prescribed in Chapter VII of this Decree shall be complied with;

5. Regarding ODA grants granted to state-owned enterprises for execution of investment projects, ODA grants used shall be recorded as state budget revenues and expenditures in order to increase capital at such enterprises.

6. Regarding ODA grants serving as emergency aid:

a) Regarding ODA grants used for disaster recovery and relief: the Government’s regulations on receipt, management and use of international emergency aid for disaster recovery and relief shall be complied with;

b) For other emergency aid: regulations of this Decree shall be complied with.

7. In the event of any discrepancies in financial management between this Chapter and the signed international treaties on ODA grants, the latter shall prevail.

Article 87. Opening payment accounts for programs and projects funded by ODA grants

1. Account for reciprocal capital: The project owner shall open an account at the State Treasury where transactions take place so as to control and pay reciprocal capital for the project.

2. Account for ODA grant: The project owner shall open an account to receive ODA grant at the State Treasury where transactions take place or the commercial bank. Procedures for opening accounts at the State Treasury and management and use of accounts shall comply with applicable regulations.

Article 88. Preparation of financial plans for ODA grants

1. Pursuant to a Decision to approve project/non-project documents or an Decision on investment in the program or project; international treaty or agreement on ODA grant (if any), letter of interest or written commitment given by the foreign donor, the project owner shall prepare 3-year and annual plans for use of the ODA grant in accordance with the Law on State Budget and relevant laws and send them to the managing authority for consolidation.

2. Annual ODA grant estimates shall be specific to each donor, program, project or non-project, each international treaty or agreement on ODA grant.

3. Preparation, consolidation, submission, approval, assignment and revision to an ODA grant plan:

a) Regarding ODA grant used for investment expenditure, regulations of the law on public investment shall be complied with;

b) Regarding ODA grant used for recurrent expenditure, regulations of the law on state budget shall be complied with;

c) Regarding a technical assistance project/non-project funded by ODA grant in kind, the formulation of the plan and decision on assignment of an estimate or revision to the estimate in the year shall be carried out by a competent authority only when the value of aid assets or goods is determined.

4. On the basis of annual ODA grant limits assigned by the competent authority, the managing authority shall allocate ODA grant to each program, project and non-project and notify the Ministry of Finance of the detailed allocation plan.

5. The managing authority shall direct, organize of and report the implementation of the ODA grant use plan in accordance with applicable regulations.

Article 89. Controlling expenditures, disbursing and recording receipt and expenditure of ODA grant in cash

1. The project owner shall control expenditures at the State Treasury according to regulations on state budget management. Procedures for controlling expenditures and recording receipt and expenditure shall comply with regulations of law on administrative procedures in the field of state treasury.

2. An expenditure control dossier to be submitted to the State Treasury for the first time includes:

a) Decision to assign or supplement the budget estimate by the competent authority;

b) A certified true copy of Decision on approval of program/project documents or Decision on investment in the program/project and program/project documents or feasibility study report approved;

c) A certified true copy of specific international treaty/agreement on ODA grant, aide memoire (commitment letter, letter of intent, discussion record, memorandum of understanding, etc.) provided by the foreign donor;

d) A contract for purchase of relevant goods/services (if any). If the contract is written in a foreign language, a Vietnamese translation which bears the project owner’s signature and seal shall be enclosed. The project owner shall be responsible to the law for the accuracy of the Vietnamese translation;

dd) A written request for certification of valid non-business capital expenditures or written request for payment of investment capital, made by the project owner in accordance with Government’s regulations on administrative procedures in the field of state treasury.

3. Dossier to be submitted to the State Treasury for each payment shall comply with regulations on state budget expenditures.

4. Disbursement of ODA grant in cash: On the basis of the expenditure control result and the project owner’s request, the State Treasury or the service bank where the account is opened shall disburse the ODA grant according to regulations and, on a monthly basis, send a notification of the disbursed ODA grant of each account holder by each program/project to the Ministry of Finance.

5. The project’s revenues and expenditures shall be recorded as follows:

a) The State Treasury shall record revenues and expenditures in accordance with regulations, on a monthly basis or when they arise on the basis of the expenditure control result and the project owner’s proposal to record receipt and expenditure of ODA grant In case the project owner opens an ODA account at a commercial bank where the project’s account is opened, the project owner shall send a statement of payments from such account at the service bank in addition to the aforementioned dossier;

b) The State Treasury shall record aid-related expenditures in the state budget at state budget entries in accordance with regulations. Regulated advances shall be recorded as expenditures. Recovered advances shall be recorded as decreases in advances. Payments for completed works shall be recorded as actual expenditures and revenues and included in annual financial statements;

c) The recording period shall comply with applicable regulations on state budget.

6. Payment of advances and control of expenditures covered by ODA grants in cash shall comply with applicable regulations on state budget.

7. Interests on ODA grants in deposit accounts shall be separately recorded and used for payment of banking service fees according to regulations. Banking service fees are considered project expenditures.

8. Upon completion of expenditure in the ODA grant account at the commercial bank or the State Treasury where the project’s account is opened, if there is no commitment in the international treaty/agreement on ODA grant on the use of aid deposit interest, the project owner shall transfer all interest earned in the deposit account to the state budget according to applicable regulations. Such interest earned shall be used in accordance with regulations of laws on public investment and state budget.

Article 90. Receipt of ODA grants in the form of goods and services

1. The receipt of aid from a foreign country shall comply with the Law on Customs, the Law on Export and Import Duties and the Law on Tax Administration. In addition to the import dossier as specified in the law on customs and the law on export and import duties, a dossier to be submitted to a customs authority to follow customs clearance procedures for imported aid goods comprises:

a) Specific international treaty/agreement on ODA grant or aide memoire of commitment and receipt of ODA grant: 01 photocopy certified by the importer;

b) Decision to approve project/non-project documents or Decision on investment in the program and the approved FSR or project document: 01 photocopy certified by a competent authority in accordance with relevant laws.

2. An application for refund or exemption of tax on goods and services purchased domestically by ODA grant shall consist of:

a) Specific international treaty/agreement on ODA grant, aide memoire (commitment letter, letter of intent, discussion record, memorandum of understanding, etc.) provided by the foreign donor: 01 photocopy;

b) Decision on approval of program/project documents or Decision on investment in the program/project and program/project documents or feasibility study report approved: 01 photocopy;

c) Other documents as prescribed by law and related to tax refund or exemption;

d) A written request for certification of valid non-business capital expenditures or written request for payment of investment capital, made by the project owner in accordance with Government’s regulations on administrative procedures in the field of state treasury (regarding ODA grants directly managed and used by Vietnamese parties).

3. After the good has been delivered/received, the project or non-project owner shall prepare a dossier to be submitted to the State Treasury to record state budget revenues and expenditures as per regulations. Such dossier includes:

a) Specific international treaty/agreement on ODA grant or aide memoire of commitment and receipt of ODA grant: 01 photocopy certified by a competent authority in accordance with relevant laws;

b) Decision to approve project/non-project documents or Decision on investment in the program and the approved FSR or project document: 01 photocopy certified by a competent authority in accordance with relevant laws;

c) Written request for recording revenues and expenditures prescribed in the Government’s regulations on administrative procedures in the state treasury field;

d) Regarding the imported good: Contract, bill of lading or another equivalent transport document, commercial invoice or customs declaration of the imported good in case where the commercial invoice is not available: 01 copy true certified by the competent authority in accordance with relevant laws. Regarding a good purchased domestically: Purchase contract, VAT invoice, goods delivery record: 01 copy true certified by the competent authority in accordance with relevant laws;

dd) Decision on assignment of the ODA grant estimate or revisions thereof in the year by the competent authority if the value of the good/item is determined.

4. When recording revenues and expenditures, the State Treasury shall record the price exclusive of taxes, fees and charges prescribed in applicable regulations.

Chapter IX

DUTIES, POWERS AND RESPONSIBILITIES OF AUTHORITIES AND ORGANIZATIONS INVOLVED IN MANAGEMENT AND USE OF ODA AND CONCESSIONAL LOANS

Article 91. Duties and powers of the Ministry of Finance

1. Preside over drafting strategies and policies on cooperation in development with foreign donors; orientate attraction, management and use of ODA and concessional loans granted by foreign donors.

2. Preside over drafting, propose promulgation of or promulgate within its jurisdiction legislative documents on management and use of ODA and concessional loans.

3. Preside over determining the needed capital for investment in development, granted by ODA and concessional loans for programs/projects, and sending documents on demands for ODA and concessional loans granted to programs/projects to foreign donors; consolidate and report rise guidelines to the Prime Minister for consideration; notify foreign donors of termination of use of ODA/concessional loans granted to programs/projects.

4. Preside over and cooperate with relevant agencies in appraising capital sources and capabilities of balancing of capital for investment projects funded by ODA and concessional loans according to regulations of the Law on Public Investment.

5. Consolidate and request the Prime Minister to consider deciding Vietnam’s participation in regional programs/projects and authorities managing such programs/projects in case of participation; send official notification to foreign donors of programs/projects/non-projects that have been approved and propose aid after guidelines for investment in programs/projects and technical assistance project/non-project documents are decided by competent authorities.

6. Cooperate with the State Bank of Vietnam in establishing international treaties on ODA grants that are not associated with loans granted by international monetary and financial institutions.

7. Supervise and assess programs/projects funded by ODA/concessional loans in accordance with laws on supervision and assessment of public investment and management and use of ODA and concessional loans.

8. Act as a focal point in charge of resolving difficulties and problems arising in the course of execution of programs/projects, issues related to multiple ministries or authorities to maintain progress and accelerate disbursement of ODA and concessional loans; request the Prime Minister to decide solutions for issues related to ODA and concessional loans within the jurisdiction of the Prime Minister.

If necessary, establish an interdisciplinary working group to work directly with managing authorities, project owners, Project Management Units, and foreign donors to review, assess, and promptly resolve issues within its jurisdiction.

9. Submit annual and ad-hoc reports on rise, management, and use of ODA and concessional loans to the Prime Minister; propose solutions for difficulties arising in the course of execution of programs/projects.

10. Preside over preparation of contents related to conditions for use of capital, domestic financial mechanism, financial management of programs and projects; financial assessment of on-lending projects.

11. Preside over determining grant element and assessing impacts of ODA and concessional loans on public debt safety, and identifying domestic financial mechanism for programs and projects funded by ODA and concessional loans.

12. Preside over and cooperate with relevant agencies in proposing conclusion of framework and specific international treaties on ODA loans, ODA grants and concessional loans granted to programs and projects funded by ODA/ concessional loans specified in clause 1 Article 29 and clause 1 Article 32 of this Decree to the Government; preside over conclusion of international and specific agreements on ODA grants for programs and projects specified in clause 5 Article 33 of this Decree.

13. Represent “borrowers” of ODA/concessional loans taken in the name of the State or the Government to foreign donors.

14. Preside over selecting service banks for programs/projects within its jurisdiction.

15. Consolidate and submit proposals to the Prime Minister for decision on reversal of unused funds; send official notification to donors of reversal of unused funds as specified in clause 4 of Article 48 of this Decree.

16. Carry out financial management of programs and projects:

a) Preside over and cooperate with relevant agencies in providing guidance on financial management of programs and projects;

b) Provide guidance on forms and reports on financial management of programs and projects in accordance with applicable regulations and international treaties and agreements on ODA and concessional loans signed with foreign donors;

c) Allocate capital from state budget and other capital sources to repay ODA/concessional loans when they are due;

d) Monitor and supervise financial management of ODA and concessional loans and record them in state budget;

dd) Comply with reporting regulations on disbursement, withdrawal and repayment of ODA and concessional loans in accordance with laws on public investment, public debt management and applicable regulations;

e) Cooperate with relevant agencies in requesting competent authorities to promptly provide sufficient reciprocal capital for preparation and execution of programs and projects funded by central government budget and included in annual budget plans;

g) Organize the on-lending and recover the on-lent capital for programs and projects eligible for on-lending by state budget.

h) Organize establishment, management and operation of the national information system and database of public investment; and information systems for supervising assessment of investment.

Article 92. Duties and powers of State Bank of Vietnam

1. Cooperate with the Ministry of Finance and relevant agencies in establishing strategies and policies on cooperation in development with foreign donors, orientations towards and plans for attraction, coordination, management and use of ODA and concessional loans; analyzing and assessing the efficiency in use of such loans.

2. Cooperate with the Ministry of Finance and relevant agencies in appraising ODA/concessional loans, reciprocal capital, and capacities to balance them (provided by the World Bank, the Asia Development Bank, international monetary and financial institutions, and other international banks of which the State Bank of Vietnam acts as a representative).

3. Preside over and cooperate with relevant agencies in requesting competent authorities to sign international treaties on ODA grants that are not associated with loans with international monetary and financial institutions, as stipulated in clause 3 of Article 29 of this Decree.

4. Cooperate with the Ministry of Finance in requesting competent authorities to sign framework and specific international treaties and agreements on ODA and concessional loans for international monetary and financial institutions of which the State Bank of Vietnam acts as a representative.

Article 93. Duties and powers of the Ministry of Justice

1. Appraise draft international treaties on ODA and concessional loans as prescribed by law.

2. Participate in negotiation and provide opinions about development of draft international treaties and agreements on ODA and concessional loans.

3. Provide opinions about reports on proposals for guidelines for investment in programs/projects on judicial cooperation with foreign donors.

4. Give opinions on documents of technical assistance projects/non-projects in judicial cooperation with foreign donors within the approval jurisdiction of the Prime Minister in accordance with the law on management of international judicial cooperation; and judicial cooperation projects/non-projects within the approval jurisdiction of managing authorities.

Article 94. Duties and powers of the Ministry of Foreign Affairs

1. Cooperate with relevant agencies, on the basis of general diplomatic policies, in developing and implementing orientation towards and guidelines for raising ODA and concessional loans, and cooperation policies; participate in raising ODA and concessional loans.

2. Cooperate with the Ministry of Finance and relevant agencies, and direct representative missions of the Socialist Republic of Vietnam in foreign countries or at international organizations to raise ODA and concessional loans in accordance with guidelines and orientation to rise in, and plans for attraction, coordination, management, and use of ODA and concessional loans in each period.

3. Participate in negotiation and provide opinions on draft international treaties and agreements on ODA and concessional loans; provide opinions on proposals for signature of international treaties and agreements on ODA and concessional loans.

4. Follow foreign affair-related procedures for signature and implementation of international treaties; organize storage, making of copies and public announcement about international treaties on ODA and concessional loans in accordance with the Law on International Treaties.

5. Grant authorization to sign agreements on ODA and concessional loans.

6. Participate in assessment of programs and projects as requested by competent authorities.

7. Monitor and inspect initiation of procedures for signing and implementing international treaties and agreements on ODA and concessional loans as prescribed by law.

Article 95. Duties and powers of ministries, ministerial authorities and Governmental authorities

1. Cooperate with the Ministry of Finance and relevant agencies in establishing strategies, plannings and plans for attraction, coordination, management and use of ODA and concessional loans; developing policies and measures to coordinate and improve the effectiveness of ODA and concessional loans within their jurisdiction.

2. Formulate reports on proposals for guidelines for investment or pre-feasibility study reports, and submit them to competent authorities for decision or approval under their jurisdiction.

3. Cooperate with signature-proposing authorities in proposing signature of specific international treaties and agreements on ODA and concessional loans granted to programs and projects under their management to competent authorities in accordance with clauses 1 and 3 Article 29 and clause 1 Article 32 and clause 3 Article 33 of this Decree; implement such international treaties or agreements in accordance with regulations of law.

4. Propose signature of specific international treaties on provision of ODA grants to the Government as prescribed in clause 2 Article 29 hereof and organize implementation of such international treaties in accordance with regulations of law on international treaties.

5. Preside over and cooperate with authorities in signing agreements on ODA grants specified in clause 2 Article 32, and clause 5 Article 33 of this Decree and organizing implementation of such agreements as per law.

6. Perform state management of ODA and concessional loans under their management as prescribed by law.

7. Publicly and transparently organize and take responsibilities for organizing execution and disbursement of loans granted to programs/projects and efficiency in use of ODA and concessional loans granted to programs/projects under their management.

Article 96. Duties and powers of provincial People’s Committees

1. Cooperate with the Ministry of Finance and ministries, central authorities and relevant agencies to develop strategies, orientation and plans for attraction, coordination, management, and use of ODA and concessional loans; develop policies and measures to coordinate and improve effectiveness of use of ODA and concessional loans within their provinces/cities.

2. Formulate reports on proposals for guidelines for investment or pre-feasibility study reports, and submit them to competent authorities for decision or approval under their jurisdiction.

3. Cooperate with signature-proposing authorities in proposing signature of specific international treaties and agreements on ODA and concessional loans granted to programs and projects under their management to competent authorities in accordance with clauses 1 and 3 Article 29 and clause 1 Article 32 of this Decree; implement such international treaties or agreements in accordance with regulations of law.

4. Cooperate with the Ministry of Finance in signing specific international treaties on ODA grants as specified in clause 1 Article 29 of this Decree and organizing implementation of such international treaties as per law on international treaties; cooperate with the Ministry of Finance in proposing signature of agreements on ODA grants to the Prime Minister in accordance with clause 1 Article 32 of this Decree and organizing implementation of such agreements as per law.

5. Be responsible for directing and organizing land expropriation, compensation, support and relocation for local programs and projects in accordance with law and international treaties on ODA and concessional loans to which Socialist Republic of Vietnam is a signatory.

6. Perform state management of ODA and concessional loans within their provinces as prescribed by law.

7. Publicly and transparently organize and take responsibilities for organizing execution and disbursement of loans granted to programs/projects and efficiency in use of ODA and concessional loans granted to programs/projects under their management.

8. Provide capital for central government budget to fully and punctually repay foreign parties with regard to programs and projects eligible for on-lending of ODA and concessional loans granted by central government budget to provincial government budgets.

Chapter X

IMPLEMENTATION CLAUSES

Article 97. Transition clauses

1. During the transition period, public investment programs and projects funded by ODA and concessional loans granted by foreign donors shall be executed in accordance with regulations of the Law on Public Investment and the Government’s Decree on elaboration of the Law on Public Investment

2. In case a program/project that is funded by ODA/concessional loan and has its portfolio approved by a competent authority has to be revised during the execution, regulations of this Decree on revision to investment guidelines shall apply.

3. In case a program/project that is funded by ODA/concessional loan and has its project proposal, containing specific ratios of allocation and on-lending of ODA/concessional loan approved by the Prime Minister before the effective date of this Decree has to be revised during the execution, regulations of this Decree shall apply, the project proposal is not required to be revised and the financial mechanism, including specific on-lending ratio (if any) to ODA/concessional loan, approved by a competent authority before the effective date of this Decree shall continue to be applied.

4. Decision to approve project proposal, issued by the Prime Minister before the effective date of this Decree serves as a basis for appraisal and assessment of capital source and capacity for balancing capital for each program/project.

5. Programs/projects associated with framework policies; sectoral approach programs; purchase of goods requiring permission from the Prime Minister; Socialist Republic of Vietnam’s participation in regional programs/projects decided by competent authorities before the effective date of this Decree shall be adjusted according to regulations of this Decree if required.

6. Regarding an investment program/project that is funded by ODA grant in the national defense/security/religion field and has its investment guidelines submitted to a competent authority for approval before the effective date of this Decree, procedures for submitting investment guidelines to the competent authority for approval according to regulations of this Decree shall be followed.

7. In case an investment program/project that is funded by ODA grant and has its investment guidelines approved by a competent authority before the effective date of this Decree has to be revised during the execution, regulations of this Decree shall apply and procedures for revising investment guidelines or program/project proposal are not required to be followed.

8. In case a technical assistance program/project that is funded by ODA grant to prepare an investment project approved by a competent authority before the effective date of this Decree has to be revised during the execution, regulations of this Decree shall apply.

9. Regarding any program/project that is funded by ODA grant, has completed investment procedures and is following procedures for adjusting or increasing medium-term capital in accordance with the Law on Public Investment, regulations of this Decree shall apply.

10. In case a technical assistance program/project/non-project that is funded by ODA grant and has its guidelines approved by the Prime Minister before the effective date of this Decree has to be revised during the execution, regulations of this Decree shall apply.

11. Regarding targeted state budget support for which receipt guidelines have been approved by the Prime Minister before the effective date of this Decree, in case of revision to the Prime Minister’s Decision, the managing authority shall seek opinions from the Ministry of Finance, consolidate and submit such opinions to the Prime Minister for decision.

12. Regarding any program/project that is funded by ODA/concessional loan and is following procedures for extending the loan allocation period before the effective date of this Decree, regulations on the loan allocation period in this Decree shall apply.

13. Regarding regional programs/projects in which participation is permitted by competent authorities before the effective date of this Decree, the subsequent procedures shall be followed in accordance with regulations in this Decree.

14. Regarding any program/project whose program/project proposals have been approved but investment guidelines have not been approved, the managing authority shall consolidate opinions of the Ministry of Finance and report to the Prime Minister on termination of use of ODA/concessional loan.

15. Regarding revision to investment guidelines:

a) Regarding an umbrella program/project whose funding portfolio or investment guidelines have been approved by a competent authority, its managing authority shall adjust such investment guidelines according to regulations laid down herein. The authority managing component projects included in the umbrella program/project shall send a written document, enclosed with an explanatory report, relevant dossiers and papers to the authority managing the latter for consolidation, and proceed with procedures for adjustment to investment guidelines in accordance with regulations;

b) In case projects where 100% of ODA/concessional loans are on-lent to state-owned enterprises have their funding portfolio or investment guidelines approved by the Prime Minister before the effective date of this Decree, the previous authority managing such projects shall revise them in accordance with Article 20 of this Decree if necessary.

16. Regarding any program/project/non-project funded by ODA grant and approved before the effective date of this Decree, financial management shall comply with applicable regulations on financial state management of foreign grants recorded as state budget revenues.

Article 98. Implementation organization

1. Ministers, Heads of ministerial authorities, Heads of Governmental authorities, Chairpersons of People’s Committees of provinces and cities and relevant organizations and individuals shall be responsible for implementing this Decree./.

2. The Ministry of Finance shall preside over and cooperate with relevant authorities in assuming responsibilities for provision of guidelines for implementation of this Decree.

Article 99. Implementation clauses

1. If any legislative documents referred to in this Decree are amended, supplemented or superseded, the new ones shall apply.

2. Point b clause 3 Article 22 of the Government’s Decree No. 97/2018/ND-CP dated June 30, 2018 shall be annulled.

3. State-owned enterprises using on-lent ODA and concessional loans granted by foreign donors shall comply with regulations in Chapter VI herein.

4. This Decree comes into force from the date on which it is signed for promulgation and replaces the Government’s Decree No. 114/2021/ND-CP dated December 16, 2021 and the Government’s Decree No. 20/2023/ND-CP dated May 04, 2023.