Laws of Vietnam

Chapter I

GENERAL PROVISIONS

Article 1.- Objectives of national reserves

National reserves constitute the State's strategic reserve source, aiming to actively satisfy urgent requirements of prevention, combat and overcoming of consequences of natural disasters, fires, epidemics; to ensure defense and security; take part in stabilizing the market, contribute to stabilizing the macro-economy, and perform other extraordinary urgent tasks of the State.

Article 2.- Scope of regulation

This Ordinance prescribes the building, management, administration and use of national reserves.

Article 3.- Subjects of application

1. Agencies, organizations and individuals that are involved in the building, management and administration of national reserves.

2. Agencies, organizations and individuals that are involved in the use of national reserves.

Article 4.- Interpretation of terms

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

1. National reserve activities mean activities of working out and implementing national reserve plans and budget estimates; building the system of material-technical bases for management of national reserves; administering the warehousing, ex-warehousing, preservation and protection of national reserves.

2. National reserve fund means the accumulated amount from the State budget, which is uniformly managed and used by the State according to the provisions of this Ordinance and the relevant legal documents.

3. National reserve goods mean supplies and commodities on the national reserve list.

4. National reserve in cash means the reserve money amount in the national reserve fund, which is incorporated in the annual State budget estimates.

5. Administration of national reserves means activities of managing the warehousing, ex-warehousing, preservation and protection of national reserves.

6. Total national reserve means the total value of the national reserve fund.

7. Total national reserve increase means the total money amount included in the annual State budget estimates adopted by the National Assembly for the increase of the national reserve fund.

8. National reserve goods-managing ministries and branches mean the ministries, the ministerial-level agencies and the Government-attached agencies which are assigned by the Government to directly organize the management and preservation of national reserve goods.

9. National reserve units mean organizations under the national reserve goods-managing ministries or branches, which are tasked to directly manage, warehouse, ex-warehouse, preserve and protect national reserve goods.

Article 5.- Organization of national reserves

1. The organization of national reserves must ensure the State's centralized and uniform administration, with the assignment of tasks to the national reserve goods-managing ministries and branches according to the Government's regulations.

2. The system of national reserve organizations is organized at the central level and in strategic zones as well as geographical areas throughout the country in order to promptly satisfy the requirements in emergency cases, and consists of the specialized national reserve management agency under the Finance Ministry and the national reserve units under the national reserve goods-managing ministries and branches.

The specialized national reserve management agency is organized according to the professional hierarchical line-up system, consisting of a central section and regional units.

Article 6.- Principles for management and use of the national reserve fund

1. The national reserve fund must be managed in a strict, secret and safe manner; actively satisfy in time requirements in all circumstances; the national reserve fund, after ex-warehousing, must be fully and promptly compensated.

2. The national reserve fund must be used for the right purposes and in strict compliance with law provisions; it must not be used for business purposes.

Article 7.- Source for formation of the national reserve fund

The national reserve fund is formed from the State budget under the National Assembly's decisions.

Article 8.- Prohibited acts and handling of violations of legislation on national reserves

1. The following acts are prohibited:

a/ Infringing upon the national reserve fund, destroying material-technical foundations and/or national reserve goods-preserving warehouses;

b/ Obstructing national reserve activities;

c/ Making the national reserve fund warehousing or ex-warehousing ultra vires;

d/ Using the national reserve fund for wrong purposes or in a wasteful manner;

e/ Taking advantage of the warehousing, ex-warehousing, purchase, sale, preservation and transport of national reserve goods to commit embezzlement or seek personal interests;

f/ Being irresponsible or intentionally acting against the regulations on management of national reserves, thus causing damage to, or loss of, national reserve assets;

g/ Trading in, pledging, mortgaging, leasing or illegally exploiting national reserve assets;

h/ Disclosing State secrets on national reserves.

2. Those who commit acts of violating the provisions of this Ordinance and other law provisions on national reserves shall, depending on the nature and seriousness of their violations, be disciplined, administratively sanctioned or examined for penal liability. If causing damage, they must pay compensations therefor according to law provisions.

Chapter II

BUILDING OF THE NATIONAL RESERVE FUND

Article 9.- The total national reserve, the total national reserve increase

1. The total national reserve shall be increased year after year.

2. The Government shall submit to the National Assembly for decision the annual total national reserve increases according to the provisions of the State Budget Law.

Article 10.- National reserve modes

1. National reserves shall be made in goods and Vietnam dong.

2. The Prime Minister prescribes the ratio between the national reserve in goods and the national reserve in cash.

Article 11.- The list of national reserve goods and management competence

1. The goods items put in national reserves must be strategic, essential and important ones, satisfying the objectives prescribed in Article 1 of this Ordinance.

2. The Government decides on the list of national reserve goods and assigns the ministries and branches to manage the national reserve goods according to the following regulations:

a/ The Finance Ministry shall directly organize the management and preservation of national reserve goods to satisfy the requirements of ensuring national food security, salvage, rescue, emergency aid, prevention, combat and overcoming of consequences of natural disasters, fires, epidemics, stabilization of the market and the people's life;

b/ The Defense Ministry and the Public Security Ministry shall directly organize the management and preservation of national reserve goods to satisfy the defense and security requirements and tasks;

c/ The national reserve goods-managing ministries and branches, other than the ministries defined at Points a and b of this Clause, shall directly organize the management and preservation of other national reserve goods ordered by the State. The specialized national reserve management agency under the Finance Ministry shall sign contracts on hiring the national reserve units under the ministries and branches to directly organize the preservation of the national reserve goods specified at this Point.

3. The list of national reserve goods shall be annually determined together with the socio-economic development plans and the State budget estimates. Biannually and annually, the Government shall report to the National Assembly Standing Committee on the list of national reserve goods.

Article 12.- National reserve plans

1. National reserve plans shall be elaborated every five years and each year and incorporated in the socio-economic development plans and the State budget estimates.

2. Bases for elaboration of national reserve plans include:

a/ Objectives and requirements of the national reserves;

b/ The State budget's capability;

c/ Forecasts on domestic and international political and socio-economic situations;

d/ Other forecasts related to the national reserves.

3. Contents of the national reserve plans include:

a/ Period-end in-stock reserve level, period-end fund balance reserve level;

b/ Plans on increase, decrease and rotational swap of national reserve goods;

c/ Investment in development of material-technical foundations;

d/ Research into and application of scientific and technological advances;

e/ Provision of financial sources for national reserve activities.

4. The Planning and Investment Ministry shall assume the prime responsibility for, and coordinate with the Finance Ministry in, guiding the national reserve goods-managing ministries and branches to work out national reserve plans for balancing, summing up and submission to the Government for decision according to its competence.

Chapter III

MANAGEMENT OF THE BUDGET EXPENDITURES FOR NATIONAL
RESERVES

Article 13.- The budget expenditures for the national reserve fund

1. Basing itself on the national reserve plan and the budget allocations, the Finance Ministry shall direct, guide and urge the national reserve goods-managing ministries and branches to take initiative in purchasing reserve goods according to the list of reserve goods, the prescribed volumes, quality standards, prices, modes and procedures.

In cases where fluctuating prices in the process of warehousing, ex-warehousing or rotational swap of goods lead to a decrease in the volume of goods purchased under the approved plan, the national reserve goods-managing ministries and branches shall purchase the volume of goods corresponding to the sale proceeds; then report the deficient goods volume as compared with the plan to the Finance Ministry for submission to the Prime Minister for decision.

2. In cases where the budget allocations for purchase of national reserve goods in a plan year are not used up, the Finance Minister shall consider and decide to carry forward the unused budget to the subsequent year for continued purchase at the proposals of the heads of the national reserve goods-managing ministries or branches.

3. The national reserve goods-managing ministries or branches shall use the budget allocations and proceeds from the sale of rotationally swapped national reserve goods for purchase of goods under the approved plan; in cases where a sum of money is left after the goods purchase plan is fulfilled, the Finance Ministry shall recover and add it to the national reserve fund in cash. For national reserve goods of seasonal nature, which must be purchased and warehoused before ex-warehousing and sale for rotational swap, the Finance Minister shall consider and advance money for the purchase thereof, then the national reserve goods-managing ministries or branches shall have to refund the advances right in the plan year.

4. Damaged or qualitatively degraded national reserve goods must be promptly handled. The heads of the national reserve goods-managing ministries or branches shall have to organize the repair, restoration or ex-warehousing for sale thereof in order to limit damage, and clarify the causes thereof for handling:

a/ For cases attributed to objective causes, a decrease in the capital source shall be recorded;

b/ For cases attributed to subjective causes, compensations must be made according to law provisions.

The heads of the national reserve goods-managing ministries or branches shall promptly report the damage extent and handling results to the Finance Minister and the Planning and Investment Minister for summing up and reporting to the Prime Minister.

5. In the course of preservation of national reserve goods, if the ullage exceeds the permitted level due to subjective causes, the units and individuals directly preserving such national reserve goods must compensate for the whole lost volume. If the ullage is below the permitted level, they shall be rewarded according to the Government's regulations.

Article 14.- Budget expenditures for investment in building material-technical foundation for the national reserve management

1. The budget expenditures for investment in building material-technical foundations for the national reserve management shall be incorporated in the annual development investment plans of the national reserve goods-managing ministries or branches.

2. The national reserve goods-managing ministries or branches are responsible for managing and using the capital construction investment capital strictly according to law provisions.

Article 15.- Budget expenditures for the national reserve management

1. Budget expenditures for the national reserve management include: expenses for operation of the managerial apparatus; expenses for warehousing, ex-warehousing, purchase, sale, preservation, protection and insurance of national reserve goods; expenses for research into and application of scientific and technological advances and expenses for training of officials and State employees engaged in the national reserve work.

2. Budget expenditures for the national reserve management by national reserve agencies and units shall comply with the plans, estimates, norms and contracts on preservation of national reserve goods as well as the current financial and budgetary management regimes.

3. Expenses for the warehousing, ex-warehousing and preservation of national reserve goods shall be advanced in lump sums. Any saved amounts may be used according to the Finance Minister's regulations. Expenses for the warehousing and ex-warehousing of national reserve goods for free under the Prime Minister's decisions shall be additionally allocated by the Finance Ministry according to the approved estimates. The national reserve goods-managing ministries or branches shall base themselves on the econo-technical norms and contracts on hiring of the national reserve goods preservation to estimate the expenses for warehousing, ex-warehousing and preservation of national reserve goods, then report them to the Finance Ministry for approval before implementation. Pending the approval, the Finance Minister shall make advances for implementation by the national reserve agencies and units.

Article 16.- The financial and budgetary management regime; the accounting, statistical and State audit regime; the reporting regime

1. The Finance Minister shall propose the Government and the Prime Minister to prescribe the financial and budgetary management mechanism for the national reserve to meet the State management requirements and suit the particular operations of the national reserve branch.

2. The national reserve goods-managing ministries and branches and the national reserve units must strictly comply with law provisions on financial and budgetary management, accounting, statistics, State audit and the national reserve reporting regime.

3. The national reserve goods-managing ministries and branches must examine and approve settlements of their attached national reserve units and take responsibility for the approved settlements; make settlements and sum up settlement reports on the national reserve under their respective management, then send them to the Finance Ministry. The Finance Ministry shall have to evaluate such settlements and sum up and submit the national reserve settlement to the Government.

Chapter IV

MANAGEMENT AND ADMINISTRATION OF THE NATIONAL RESERVE FUND

Section 1. WAREHOUSING AND EX-WAREHOUSING OF NATIONAL RESERVE GOODS

Article 17.- Principles for warehousing and ex-warehousing national reserve goods

The warehousing and ex-warehousing of national reserve goods must ensure the following principles:

1. Complying with the plans and contracts on hiring of the national reserve goods preservation at the State's orders or under the competent authorities' decisions;

2. Ensuring the right goods categories, volumes, quality, prices and places as prescribed;

3. Strictly complying with the warehousing and ex-warehousing procedures as prescribed by law.

Article 18.- Warehousing, ex-warehousing and rotational swap of national reserve goods under plans

1. Annually, basing themselves on the requirements on consolidation of national reserves, the preservation duration and the contracts on hiring of the preservation of national reserve goods at the State's orders, the national reserve goods-managing ministries and branches shall work out plans on warehousing, ex-warehousing and rotational swap of national reserve goods, then send them to the Finance Ministry and the Planning and Investment Ministry for summing up and submission to the Prime Minister for decision.

2. Basing themselves on the plans on warehousing, ex-warehousing and rotational swap of national reserve goods decided by the Prime Minister, and the contracts on hiring of the preservation of national reserve goods at the State's orders, the heads of the national reserve goods-managing ministries or branches shall organize the implementation of such plans and contracts, decide on the purchase and sale modes, the time of warehousing, ex-warehousing and rotational swap of national reserve goods, in order to ensure the period-end in-stock reserve level according to the Prime Minister's regulations.

Article 19.- Warehousing and ex-warehousing for use of national reserve goods under the Prime Minister's decisions

The Prime Minister shall decide on the warehousing and ex-warehousing for use of national reserve goods in the following cases:

1. Prevention of natural disasters, fires and epidemics and overcoming of consequences thereof;

2. Satisfaction of defense and security requirements;

3. Stabilization of the market, contribution to stabilizing the macro-economy;

4. Satisfaction of special requirements on provisions of aids, loans, repayment of debts in external relations or performance of other extraordinary and urgent tasks of the State.

Article 20.- Warehousing and ex-warehousing for use of national reserve goods under the Prime Minister's authorization

1. In case of necessity, the Prime Minister shall authorize the Finance Minister to decide on warehousing, ex-warehousing for use of national reserve goods, and authorize the Defense Minister and the Public Security Minister to decide on warehousing, ex-warehousing of national reserve goods for defense and security according to the following regulations:

a/ Warehousing and ex-warehousing for prompt supply of national reserve goods, supplies, raw materials, fuels and materials, which are valued at under VND one billion in timely service of each arising task;

b/ Temporary ex-warehousing of national reserve machines, equipment and means in timely service of arising tasks. After such tasks are accomplished, such machines, equipment and means must be promptly recovered for maintenance, re-warehousing into the national reserve and preservation according to the regulations or reported to the Prime Minister for decision on handling.

2. The ministers who decide on warehousing, ex-warehousing of national reserve goods according to the provisions in Clause 1 of this Article shall, within three days after making such decisions, have to report them to the Prime Minister and bear responsibility before the Prime Minister for their decisions; and concurrently send reports thereon to the Finance Minister and the Planning and Investment Minister.

3. The Finance Ministry shall assume the prime responsibility for, and coordinate with the Planning and Investment Ministry in, inspecting the warehousing, ex-warehousing for supply and use of national reserve goods in the cases prescribed in Clause 1 of this Article, ensuring the right purposes and the right subjects; summing up and reporting such to the Prime Minister and proposing the prompt handling of violations.

Article 21.- Warehousing and ex-warehousing of national reserve goods in other cases

The heads of the national reserve goods-managing ministries or branches shall decide on warehousing and ex-warehousing of national reserve goods upon the liquidation and handling of ullage, redundancy or damage in the course of warehousing, ex-warehousing, preservation and transport of national reserve goods according to law provisions and take responsibility for their decisions; and report on such liquidation or handling to the Finance Minister and the Planning and Investment Minister for summing up and reporting such to the Prime Minister.

Article 22.- Internal movement of national reserve goods

The heads of the national reserve goods-managing ministries or branches shall request the Finance Minister to consider and decide on the internal transfer of national reserve goods under their respective management in the following cases:

1. Relocation of national reserve goods under the planning or plans to ensure the safety and suitability with conditions on warehouses and preservation of national reserve goods;

2. Taking of national reserve goods out of natural disaster- or fire-stricken or unsafe zones;

3. Bringing of national reserve goods to necessary places to readily serve arising tasks;

4. Movement due to requirements of inventory, handover, inspection and examination.

Article 23.- Management of purchase prices and sale prices of national reserve goods

1. The Finance Minister shall prescribe the ceiling prices for purchase of national reserve goods and the floor prices for sale of national reserve goods.

The Defense Minister and the Public Security Minister shall prescribe the purchase prices and sale prices of national reserve goods for defense and security purposes after consulting the Finance Minister.

2. Basing themselves on the ceiling prices and floor prices prescribed by the Finance Minister, the heads of the national reserve goods-managing ministries and branches shall prescribe specific prices for each time and each area when purchasing or selling national reserve goods under their management, and concurrently report thereon to the Finance Minister.

3. Prices for purchase or sale of national reserve goods by mode of bidding or auction shall comply with the law provisions on biddings or auctions.

Article 24.- Modes of purchase and sale of national reserve goods

1. When purchasing or selling national reserve goods, basing themselves on the practical requirements of tasks, the national reserve goods-managing ministries or branches may apply one of the following modes:

a/ Applying the mode of designation of contractors in case of purchase of national reserve goods in service of defense, security or cipher tasks; purchase of petrol and oil; purchase of national reserve goods to serve the market stabilization after the ex-warehousing for supply of assorted national reserve goods to meet the requirements of salvation, rescue, emergency relief, overcoming of consequences of natural disasters, fires, epidemics, or national reserve goods of specific or seasonal nature or with specific preservation technical requirements, such as foods, salt, plant varieties, medicines, veterinary drugs, plant protection drugs;

b/ Applying the mode of direct sale or purchase in case of supplementation to contracts which have been completely performed for under one year or contracts which are being currently performed, for which biddings or auctions have been organized with prices determined in such contracts; direct purchase from producers and direct sale to consumers, for the national reserve goods being foods (other than rice), salt, plant varieties, medicines, veterinary drugs and plant protection drugs on the condition that market prices are stable and there is no big change in demand and supply;

c/ Applying the mode of bidding to the purchase of national reserve goods being supplies, machines, equipment, means, raw materials and materials; or the purchase of rice for reserve.

d/ Applying the mode of competitive offer to the purchase of national reserve goods valued at under VND 2 billion each;

e/ Applying the mode of auction to the sale of national reserve supplies, machines, equipment and means eligible for liquidation sale or ex-warehousing for rotational swap of goods.

2. The heads of the national reserve goods-managing ministries or branches shall decide on the modes of purchase or sale of national reserve goods in compliance with the provisions of Clause 1 of this Article and be held responsible before law for their decisions. If the application of the decided purchase or sale modes yields no result, the heads of the national reserve goods-managing ministries or branches shall have to request the Finance Minister and the Planning and Investment Minister to propose the Prime Minister to permit the application of other purchase or sale modes.

Section 2. NATIONAL RESERVE WAREHOUSES

Article 25.- Planning on the system of national reserve warehouses

1. The system of national reserve warehouses must be planned in line with the socio-economic development strategy, ensure defense and security and prevent natural disasters and fires.

2. The Prime Minister shall approve the general planning on the system of national reserve warehouses. The heads of the national reserve goods-managing ministries or branches shall approve the detailed plannings on networks of national reserve warehouses under their respective management.

Article 26.- Building and protection of national reserve warehouses

1. National reserve warehouses must be built under the approved planning; must be modern with advanced preservation technologies, adequately furnished with facilities, equipment and means necessary for the process of warehousing, ex-warehousing and preservation of national reserve goods, preventing and combating natural disasters, fires, damage, loss and other causes of damage to national reserve assets.

2. National reserve warehouse zones must be safe and kept secret and properly protected.

3. The Finance Minister shall prescribe the standards of national reserve warehouses and promulgate the Regulation on protection of national reserve warehouses after consulting the heads of the national reserve goods-managing ministries and branches. The Defense Minister and the Public Security Minister shall prescribe the standards of national reserve warehouses and promulgate regulations on protection of national reserve warehouses under their respective management.

Section 3. PRESERVATION OF NATIONAL RESERVE GOODS

Article 27.- Principles for preservation of national reserve goods

1. National reserve goods must be preserved at the prescribed places, in strict compliance with the prescribed process and rules, or under preservation hiring contracts at the State’s orders, ensuring the quantity and quality safety in the course of reservation.

2. The national reserve goods-managing ministries and branches must take initiative in warehousing and ex-warehousing for rotational swap of national reserve goods upon the planned time limits for goods swap. For imported goods, adequate sources of new goods must be ensured according to the quality standards for reserve warehousing. For home-made goods, the volume of reserve goods in stock at any time must not be lower than 50% of the period-end in-stock reserve level and new goods must be adequately warehoused within six months.

Article 28.- Responsibilities for protecting and preserving national reserve goods

1. The national reserve goods-managing ministries and branches must strictly observe the law provisions on protection of State secrets regarding the national reserves.

2. The heads of the national reserve goods-managing ministries and branches are responsible for organizing, directing and inspecting the protection and preservation of national reserve goods; promptly detecting, preventing and handling acts of violating the law provisions on protection and preservation of national reserve goods.

3. The heads of the units directly managing national reserve goods are responsible for safely protecting and preserving the national reserve goods in terms of quantity and quality.

Article 29.- Elaboration and promulgation of quality standards, econo-technical norms, procedures, rules and duration for preservation of national reserve goods

1. The Finance Ministry and the national reserve goods-managing ministries and branches shall assume the prime responsibility for, and coordinate with the Science and Technology Ministry and the concerned agencies in, elaborating and promulgating according to their competence the quality standards of goods for national reserve warehousing.

2. The Finance Ministry shall assume the prime responsibility for, and coordinate with the concerned agencies in, elaborating and promulgating the econo-technical norms, process, rules and duration of preservation of national reserve goods.

3. The national reserve goods-managing ministries and branches shall organize the research into, and application of, scientific and technological advances to the preservation of national reserve goods.

Section 4. MANAGEMENT OF THE NATIONAL RESERVE IN CASH

Article 30.- Use of the national reserve in cash

The national reserve in cash shall be used only for purchase of the national reserve goods.

Article 31.- Management of the national reserve in cash

1. The Finance Ministry shall concentratedly manage the national reserve in cash at the State Treasury. Interests thereon shall be principalized to conserve and develop the national reserve fund.

2. Basing himself on the Prime Minister-prescribed ratio between the national reserve in goods and the national reserve in cash, the Finance Minister shall decide on the disbursement of the national reserve in cash to purchase national reserve goods, bear responsibility for his/her decisions and report thereon to the Prime Minister.

3. Vietnam State Bank shall have to promptly satisfy the requests for conversion of the national reserve in Vietnam dong into foreign currencies in service of the import of national reserve goods.

Chapter V

TASKS AND POWERS OF THE GOVERNMENT, THE PRIME MINISTER AND THE AGENCIES AND UNITS IN THE MANAGEMENT AND USE OF NATIONAL RESERVES

Article 32.- Tasks and powers of the Government and the Prime Minister

1. The Government exercises the uniform State management over national reserves, having the following tasks and powers:

a/ To submit to the National Assembly and the National Assembly Standing Committee bills and draft ordinances on national reserves;

b/ To promulgate legal documents on national reserves according to its competence;

c/ To specify the organizational system of management of national reserves; to direct the organization and coordination in activities related to national reserves;

d/ To decide on the strategy and the planning on development of national reserves and the national reserve plans;

e/ To formulate and submit to the National Assembly the total national reserve and annual total national reserve increases;

f/ To allocate the budget expenditure estimates for national reserves; to decide on the list of national reserve goods, the national reserve volume of each goods category, and assign ministries and branches to manage national reserve goods; to report biannually and annually to the National Assembly Standing Committee on the list of national reserve goods;

g/ To prescribe the financial and budgetary management mechanism to meet the State management requirements and suit the operations of the national reserve branch;

h/ To perform and exercise other tasks and powers in the State management over national reserves.

2. The Prime Minister has the following tasks and powers:

a/ To approve the general planning on the system of national reserve warehouses;

b/ To prescribe the organization and operation of the specialized national reserve management agencies;

c/ To decide on the ratio between the national reserve in goods and the national reserve in cash;

d/ To approve the plans on the State's orders for national reserves;

e/ In case of necessity, to decide on adjustment of, or supplementation to, the list of national reserve goods, the national reserve levels, and assign ministries and branches to manage national reserve goods;

f/ To decide on the warehousing and ex-warehousing of national reserve goods according to Article 19 of this Ordinance;

g/ To perform other tasks and powers regarding national reserves as prescribed by the Government.

Article 33.- Tasks and powers of the Finance Ministry

The Finance Ministry shall be answerable to the Government for performing the State management over national reserves, having the following tasks and powers:

1. To submit to the Government and the Prime Minister bills, draft ordinances and legal documents on national reserves which fall within the promulgating competence of the Government or the Prime Minister;

2. To assume the prime responsibility for, and coordinate with the Planning and Investment Ministry in, submitting to the Government strategic projects and the planning on development of national reserves as well as the policies on national reserves;

3. To assume the prime responsibility for, and coordinate with the national reserve goods-managing ministries and branches in, promulgating the econo-technical norms, process, rules and duration of preservation of national reserve goods and other legal documents on national reserves according to their competence;

4. To coordinate with the Planning and Investment Ministry in submitting to the Government the total national reserve and the total national reserve increase, making estimates and plans on distribution of capital for annual supplementation to the national reserves to the national reserve goods-managing ministries and branches;

5. To coordinate with the Planning and Investment Ministry in guiding the ministries and branches managing national reserve goods in working out the national reserve plans, the State's orders on national reserves, the list of national reserve goods and the reserve volume of goods of each category for summing up and submission to the Government;

6. To organize the direction and administration of national reserve activities, inspection and examination of the national reservation under annual plans and the Prime Minister's decisions; to handle according to its competence violations of law provisions on national reserves;

7. To base itself on the State budget estimates, the approved annual national reserve plans, the Prime Minister's decisions, econo-technical norms and the State's order for the goods to allocate sufficient financial sources for national reserves to the national reserve goods-managing ministries and branches; to evaluate and sum up the settlements of budget expenditures for national reserves;

8. To promulgate documents guiding the regulations on financial and budgetary management mechanism, decide on the ceiling prices, floor prices and compensation levels for damage to national reserve goods and expense levels for the warehousing, ex-warehousing, purchase, sale, preservation and insurance of national reserve goods; to guide, monitor, direct and inspect the quantity, quality and value of national reserve goods; to observe the regulations on management, preservation, purchase, sale, warehousing, ex-warehousing or rotational swap of national reserve goods;

9. To work out the planning and plans on training of officials and State employees engaged in the national reservation work, and formulate regimes and policies toward them;

10. To enter into international cooperation on national reserves;

11. To sum up and report to the Prime Minister on the management of national reserves;

12. To perform and exercise other tasks and powers regarding national reserves according to law provisions.

Article 34.- Tasks and powers of the Planning and Investment Ministry

The Planning and Investment Ministry has the following tasks and powers:

1. To evaluate and submit to the Government the strategy and the planning on development of national reserves;

2. To assume the prime responsibility for, and coordinate with the Finance Ministry in, submitting to the Government the national reserve plans, the total national reserve, the total national reserve increase, making the estimates and plans on distribution of capital for supplementation to national reserves to the national reserve goods-managing ministries and branches, the list of national reserve goods and the reserve volume of goods of each category; to submit to the Government the State's goods orders for national reserves;

3. To coordinate with the Finance Ministry in submitting the strategic projects and the planning on national reserve development as well as the national reserve policies; to guide, direct and inspect the national reservation under the plans and the Prime Minister's decisions.

Article 35.- Tasks and powers of the national reserve goods-managing ministries and branches

The national reserve goods-managing ministries and branches have the following tasks and powers:

1. To coordinate with the Finance Ministry and the Planning and Investment Ministry in working out the strategy, development planning, plans, the State's goods orders and the list of national reserve goods as well as the reserve volume of goods of each category;

2. To organize the direction of their attached national reserve units in implementing the plans and performing the contracts on hiring of national reserve goods preservation at the State's orders and management of national reserves according to law provisions;

3. To report to the Prime Minister on the management of national reserve goods at the State's orders, and concurrently send reports thereon to the Finance Minister and the Planning and Investment Minister;

4. To perform and exercise other tasks and powers regarding national reserves according to law provisions.

Article 36.- Tasks and powers of the specialized national reserve management agency

The specialized national reserve manage-ment agency has the following tasks and powers:

1. To assist the Finance Ministry in performing the State management over national reserves; to directly organize the management of national reserve goods on the list assigned by the Government; to monitor the management of the whole special national reserve goods assigned by the Government to the ministries and branches for management;

2. To assist the Finance Minister in monitoring, inspecting and supervising the warehousing, ex-warehousing and use of the national reserve fund in the cases prescribed in Article 20 of this Ordinance and the performance of the contracts on hiring of national reserve goods preservation by the national reserve units;

3. To assist the Finance Minister in determining the requirements of the State's goods orders regarding the list and categories of goods, qualities, quality standards, prices, places for warehousing goods, warehousing time and preservation duration, econo-technical norms, ullage rate, expenses for preservation of national reserve goods, conditions for the performance of tasks; to sign and perform contracts on hiring of preservation of national reserve goods and monitor, inspect and sum up results of the performance of such contracts, then report them to the Finance Minister for submission to the Prime Minister;

4. To submit to the Finance Minister for decision the management and preservation funding for the units directly preserving national reserve goods;

5. To perform and exercise other tasks and powers regarding national reserves according to law provisions.

Article 37.- Tasks and powers of the national reserve units

The national reserve units have the following tasks and powers:

1. To preserve national reserve goods, ensuring the sufficient quantity, right quality, goods categories and preservation places as prescribed in the State's goods orders;

2. To ensure that the in-stock national reserve volumes at warehouses can promptly meet the mobilization demands and be available in all circumstances;

3. To ex-warehouse national reserve goods only under the Prime Minister's or competent authorities' decisions;

4. To open a system of books and vouchers for monitoring the warehousing, ex-warehousing and rotational swap of national reserve goods and archive them strictly according to the prescribed regime; to periodically report on the warehousing, ex-warehousing and in-stock volumes to the specialized national reserve management agency and the managing ministries and branches;

5. To perform and exercise other tasks and powers regarding national reserves according to law provisions.

Article 38.- Tasks and powers of the People's Committees of the provinces or centrally-run cities

The People's Committees of the provinces or centrally-run cities have the following tasks and powers:

1. To coordinate with, and create favorable conditions for, the agencies and units directly managing national reserves to well fulfill the tasks of warehousing, ex-warehousing, protecting, preserving and transporting national reserve goods, ensuring the secrecy and safety of national reservation activities in their localities;

2. To perform and exercise other tasks and powers regarding national reserves according to law provisions.

Article 39.- Tasks and powers of the agencies, organizations and units in the use of national reserve goods

1. The national reserve agencies and units assigned the tasks of ex-warehousing and supply of national reserve goods shall have to promptly effect the ex-warehousing, transport and delivery of goods at prescribed places in an expeditious and timely manner and ensuring the prescribed quantities, quality and procedures.

2. The agencies and organizations receiving national reserve goods shall have to receive and distribute the goods in strict compliance with the regimes and policies, to the prescribed subjects; observe the financial and budgetary regime, accounting and statistical regime, and submit to the inspection and supervision by competent State agencies; and within fifteen days after completing the distribution, to report on the distribution results to the specialized national reserve management agency for summing up and reporting to the Finance Minister.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 40.- Implementation effect

This Ordinance takes implementation effect as from September 1, 2004.

All previous stipulations contrary to this Ordinance are hereby annulled.

Article 41.- Detailing and guiding the implementation of the Ordinance

The Government details and guides the implementation of this Ordinance.

On behalf of the National Assembly Standing Committee
Chairman
NGUYEN VAN AN