Laws of Vietnam

THE PRIME MINISTER

DECIDES:

Article 1.- To set up the Export Support Fund in order to support, encourage and boost the export of goods, expand the export market and raise the competitiveness of Vietnam’s export goods.

The Export Support Fund is managed by the Finance Ministry and has a separate bank account at the State Treasury.

Article 2.- The Export Support Fund is created from the following sources:

1. The revenue from import-export goods price differences, as decided by the Prime Minister. The principles and contents of collection of price differences are stipulated in Article 3 of this Decision.

2. The annual additional State budget allocations.

3. The import-export quota-granting fee.

4. The fee of the granting of certificates of goods’ origin.

5. The licensing fee for the establishment and operation of representative offices of economic organizations in Vietnam, as well as for the opening of branches of foreign companies in Vietnam.

6. The contributions of importing-exporting enterprises having goods items with import-export price differences which have not yet been collected. The Finance Ministry and the Trade Ministry shall specify this revenue source.

7. The revenues from other sources by the Prime Minister’s decisions.

In the immediate future, to transfer the total credit balance of the Price Stabilization Fund and the amount of surcharges, on certain kinds of goods into the Price Stabilization Fund under Decision No.151/TTg of April 12, 1993 and the Export Reward Fund under Decision No.764/QD-TTg of August 24, 1998, in order to create the initial capital of the Export Support Fund.

Article 3.- The source of revenue from import-export goods price differences shall be determined as follows:

1. For import goods, it shall be the difference between the domestic selling prices accepted by the market and the cost prices of the import goods, including the actual import prices with freight, the insurance fee to the port of import, import tax as prescribed by law and circulation expenses.

2. For export goods, it shall be the difference between the actual export prices, not including the freight, the insurance fee and the cost prices of the export goods, including the actual buying prices, the export tax as prescribed by law and the domestic circulation fee.

3. The price difference shall be determined in percentage (%) for each goods category. For import goods, it shall be the percentage (%) of between the arising price difference and the actual import prices, including the overseas freight and the insurance fee to the port of import. For export goods, it shall be the percentage (%) between the arising price difference and the actual export prices at the port of export, not including the costs arising outside the country.

4. Goods exported from or imported into the export processing zones; equipment, supplies and goods imported under the Law on Foreign Investment in Vietnam; goods imported or exported for specimen, advertisement, exhibitions and fairs; refundable and non-refundable aids; and goods being gifts, belongings as well as luggage of people on entry or exit shall not be subject to the price difference collection prescribed in this Decision.

The Finance Ministry shall consult the Government Pricing Committee to provide detailed guidance for the implementation of this Article.

Article 4.- The Export Support Fund shall be used for the following purposes:

1. Providing full or partial support for interests on banks’ loans for the purchase of export agricultural products when world market prices fall, adversely affecting the domestic production; and for the reserve of agricultural products for export under the direction and management of the Government or the Prime Minister.

2. Providing definite financial support for a number of export goods category that suffer from losses due to their low competitiveness or objective risks.

3. Rewarding the search for and expansion of export market, new goods items exported for the first time, export goods with high quality recognized and certified by international organizations, high and efficient export value.

4. Providing other supports under the Prime Minister’s decisions.

1. The Finance Ministry shall assume the prime responsibility and coordinate with the Trade Ministry, the Government Pricing Committee and the concerned branches in guiding the management and use of the Export Support Fund in conformity with this Decision.

2. The Finance Minister shall effect the export support expenditures in strict compliance with the regulations after consulting the Trade Ministry, the Government Pricing Committee and the goods line controlling agencies; and at the same time, have to strictly manage the Fund according to the current financial regime. Annually, the Finance Ministry shall consult the Ministry of Planning and Investment in drawing up the plan on adding the Export Support Fund with State budget; and report to the Prime Minister on the results of the Fund’s activities.

3. The Minister of Trade shall assume the prime responsibility and coordinate with the Finance Ministry in considering and deciding rewards for exporting enterprises which meet the norms stipulated at Point 3, Article 4 of this Decision.

4. The goods line-controlling ministries, especially the Ministry of Agriculture and Rural Development shall coordinate with the Government Pricing Committee, the Finance Ministry and the Trade Ministry in mapping out the export strategy for each specific goods category as well as the export capability and conditions in each period; then submit it to the Prime Minister for decision on the support of a number of goods categories, including the support forms, levels and duration.

5. The Government Pricing Committee shall assume the prime responsibility and coordinate with the Finance Ministry, the Trade Ministry, the goods line controlling agencies and the People’s Committees of the provinces and centrally-run cities in overseeing the price fluctuations inside and outside the country, detecting the import-export goods price differences, proposing lists of goods with price differences to be collected, collection percentages and duration and submitting them to the Prime Minister for deciding the collection of price differences.

6. The General Department of Customs shall have to collect the price differences at the time of collecting import and export taxes and remit the revenue therefrom into the Export Support Fund’s account at the State Treasury.

Article 6.- This Decision takes effect 15 days after its promulgation; to annul the Prime Minister’s Decision No.151/TTg of April 12, 1993 on the setting up, use and management of the Price Stabilization Fund, and Decision No.764/1998/QD-TTg of August 24, 1998 on the setting up of the Export Reward Fund.

Article 7.- The Finance Minister, the other ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People’s Committees of the provinces and centrally-run cities shall have to implement this Decision.

For the Prime Minister

Deputy Prime Minister