Laws of Vietnam

THE PRIME MINISTER

DECIDES:

Article 1.- To issue together with this Decision the Regulation on the Management and Use of Foreign Non-Governmental (NGO for short) Aids.

Article 2.- This Decision shall replace the Prime Minister’s Decision No. 28/1999/QD-TTg of February 23, 1999 and take effect 15 days after its signing. The earlier regulations contrary to this Decision are all now annulled.

Article 3.- The Minister of Planning and Investment and the Finance Minister shall have to guide and inspect the implementation of this Decision.

Article 4.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of the provinces and centrally-run cities, the president of the Union of Vietnam Friendship Organizations, the heads of the central bodies of mass and people’s organizations shall have to implement this Decision.

For the Prime Minister
Deputy Prime Minister
NGUYEN MANH CAM

GENERAL PROVISIONS

Article 1.- This Regulation governs all activities of attracting, managing and using foreign non-governmental aids (hereafter called NGO aids for short).

NGO aids mentioned in this Regulation mean non-refundable aids and assistance granted not for profit-making purposes by foreign non-governmental organizations, foreign organizations and individuals, including overseas Vietnamese (hereinafter called aid-providing party for short) to Vietnamese ministries, branches, localities and people’s organizations (including mass organizations, socio-political organizations, socio-professional organizations and a number of other organizations) (hereafter called Vietnamese party for short) to realize humanitarian and development objectives in Vietnam.

NGO aids are provided in the following major forms:

- Aids provided through programs and projects.

- Non-projects aids (including emergency relief).

Article 2.- Term interpretation

In this Regulation, the following terms shall be construed as follows:

1. "Program" is a group of interrelated projects involving different economic-technical branches, territorial regions and subjects, which should be implemented by the method of inter-branch approach in a relatively long period with the use of means to be mobilized from various sources by different modes.

2. "Project" is a combination of interrelated activities aimed to achieve one or a number of specific objectives within a given time limit, based on the definite resources.

3. "NGO aid agreement" is a document acknowledging the initial intention (legally unbinding) on NGO aids between representatives of the Vietnamese party and the aid-providing party.

4. "NGO aid program or project documents" mean the official documents reflecting the commitment between representatives of the Vietnamese party and the aid-providing party on a specific program or project, which clearly define the objectives, activities and results to be achieved, resources to be used, implementation duration and plan, obligations, interests and responsibilities of concerned parties.

5. "Non-project aids" mean the aids provided not under programs or projects in kind (goods, supplies, equipment), cash or experts (including volunteer experts) for humanitarian or charity purposes (hereafter referred collectively to as humanitarian purposes).

6. "Emergency relief" is a non-project aid provided urgently right after the occurrence of emergency cases (natural calamities or other catastrophes) for not more than 2 months from the end of emergency cases. Past this time limit, if such relief still continues, it shall be considered aid to overcome the post-emergency consequences.

Article 3.- NGO aids shall be used to achieve humanitarian objectives and support the realization of prioritized socio-economic development targets of Vietnam in each period.

Chapter II

NGO AIDS MOBILIZATION, NEGOTIATION, RATIFICATION AND SIGNING

Article 4.- The mobilization of NGO aids shall be conducted regularly, according to orientation and in an organized manner:

1. The mobilization of NGO aids for programs and projects must be based on the concrete socio-economic development requirements, public investment programs, planning and plans on the attraction and use of outside support capital of the State, each branch and each locality in each period; as well as the reception capacity (including the reciprocal capital sources).

2. The mobilization of aids for humanitarian purposes must be based on the social situation and actual demands of the ministries, branches, localities and people’s organizations in each year or each period.

3. The mobilization of emergency relief must be based on the actual amounts of losses in human lives, properties, constructions... in each region or locality hit by natural calamities or other catastrophes. The Ministry for Foreign Affairs shall coordinate with the relevant agencies in considering and proposing the Prime Minister to decide the amount of emergency relief to be called for from international community (including the aid-providing party prescribed in this Regulation).

Article 5.- Bases for NGO Aids negotiation and conclusion:

1. Regarding aids for programs or projects, there must be program or project documents. If the implementation duration lasts for more than 1 year, the plan of action must be worked out and the funding needed for each year must be estimated as well as the available sources of the aid-providing party and the funding amounts to be mobilized in the subsequent years must be clearly determined.

2. For non-project aids, it is necessary to clearly state the aids’ contents, aids objects and recipients, make the detailed list of aid goods, and estimate the total value of aids if they are provided in kind or clearly determine the total value of aids if they are offered in cash.

For emergency relief, in addition to the above-mentioned requirements, it is necessary to point to the damage extent and essential needs that must be satisfied immediately during the time of emergency.

3. The signing of NGO aid shall be effected only when they are ratified by the competent levels prescribed in Article 6 of this Regulation.

Article 6.- The competence to ratify NGO aids is prescribed as follows:

1. The Prime Minister shall ratify:

a/ Programs and projects using NGO aids valued at USD 500,000 or more.

b/ All programs and projects with contents related to the institutions, policies, laws, administrative reform, culture and information, religion, defense and security.

c/ Non-project aids valued at USD 200,000 or more.

d/ Non-project aids in support of activities with contents mentioned at Point b, Clause 1 of Article 6.

e/ Programs, projects and non-project aids involving goods items restricted from import (cars, motorbikes, used goods and equipment and some kinds of medicines on the prescribed lists) according to the Government’s regulations.

f/ Emergency relief without concrete addresses (the aid-providing party does not prescribe aid for any specific aid-receiving locality).

2. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of the provinces and centrally-run cities, the heads of the central bodies of people’s organizations (or authorities competent to decide the establishment of organizations without central bodies) shall ratify:

a/ Programs and projects capitalized at under USD 500,000 (except for Clauses 1b and 1e of Article 6).

b/ Non-projects aids valued at under USD 200,000 (except for Clauses 1d and 1e of Article 6).

c/ All kinds of emergency relief to concrete addresses.

Article 7.- The sale of goods belonging to NGO aids is stipulated as follows:

1. Goods belonging to NGO aids, which are brought into Vietnam for sale as agreed upon by the concerned parties in order to attain the set objectives, shall be examined and decided by the competent authorities simultaneously with the ratification stipulated in Article 6 of this Regulation.

2. The above goods must be auctioned according to the provisions of the Government’s Decree No. 86/CP of December 19, 1996 promulgating the Regulation on Property Auction.

Chapter III

STATE MANAGEMENT OVER NON-GOVERNMENTAL AIDS

Article 8.- The Government shall exercise the unified State management of all NGO aid sources, from the aid mobilization to aid negotiation and signing with the aid-providing party; from monitoring and supervision of the implementation process to the assessment of the results and efficiency of the use of NGO aids.

Article 9.- The Ministry of Planning and Investment shall take responsibility for coordination and management of NGO aid-funded programs and projects, make and send biannual and annual sum-up report on NGO aid situation to the Prime Minister. It shall have the following tasks:

1. To share with concerned agencies the responsibility for guiding the ministries, branches, localities and people’s organizations to work out programs and projects for mobilization of NGO aids.

2. To appraise and sum up opinions of the relevant agencies before submitting them to the Prime Minister for consideration and ratification of the programs and projects mentioned at Points a, b and e, Clause 1, Article 6 of this Regulation.

3. To consult the Finance Ministry before submitting to the Prime Minister for consideration and ratification non-project aids mentioned at Points c, d and e, Clause 1, Article 6 of this Regulation.

4. To coordinate with the Finance Ministry in arranging the reciprocal capital in the annual State budget plan for units entitled to the State budget allocations for the implementation of programs or projects under commitments with the aid-providing party and in accordance with the provisions of the State Budget Law and the Government’s Decree No.87/CP of December 19, 1996 on the division of responsibility for management, elaboration, execution and settlement of the State budget.

5. To coordinate with the Finance Ministry, the Union of Vietnam Friendship Organizations and relevant agencies in organizing the supervision and inspection of the reception, management and use of aids; sum up, analyze and assess the efficiency of NGO aids; handle the related matters within its competence and propose the Prime Minister to consider and decide matters beyond its competence.

6. To coordinate with the General Department of Statistics in issuing forms of reports on programs and projects.

Article 10.- The Finance Ministry shall take responsibility for the State financial management of NGO aids and assume the prime responsibility for regulating and managing non-project aids. It shall have the following tasks:

1. To coordinate with the relevant agencies in formulating the financial management regime for NGO aids according to its competence and propose the Prime Minister to consider and decide matters beyond its competence.

2. To arrange reciprocal capital in the annual State budget plan as mentioned at Clause 4, Article 9 of this Regulation.

3. To monitor and inspect the situation on the reception, use and management of NGO aids within the branch’s professional scope.

4. To sum up non-project aids as well as the final financial account settlement of all NGO aids; to join the Ministry of Planning and Investment in making sum-up biannual and annual reports on NGO aid situation and submitting them to the Prime Minister.

5. To take part in the evaluation of programs and projects, which fall under the Prime Minister’s competence for ratification.

6. To sum up opinions and submit them to the Prime Minister for consideration and decision regarding non-project aids mentioned at Points c, d, e and f, Clause 1, Article 6 of this Regulation.

7. To take responsibility for receiving and distributing emergency relief mentioned at Point f, Clause 1, Article 6 of this Regulation and report the implementation results to the Prime Minister.

8. To coordinate with the Ministry of Planning and Investment and the General Department of Statistics in issuing forms of reports on non-project aids.

Article 11.- The Ministry for Foreign Affairs shall have the following tasks:

1. To coordinate with the relevant agencies in mobilizing and taking advantages of NGO aids.

2. To coordinate with the Union of Vietnam Friendship Organizations in calling for emergency relief as prescribed in Clause 2, Article 5 of this Regulation.

Article 12.- The Government Office shall have the following tasks:

1. To assist the Prime Minister in inspecting and urging the implementation of this Regulation.

2. To take part in the evaluation work and making suggestions and proposals on policies and mechanisms... for programs and projects; to give its opinions on non-project aids, which fall under the Prime Minister’s competence for decision before submitting them to the Prime Minister.

Article 13.- The Union of Vietnam Friendship Organizations shall assume the prime responsibility in contacting and mobilizing the aid-providing party to provide aids. It shall have the following tasks:

1. To coordinate with the Ministry for Foreign Affairs and concerned agencies in organizing the mobilization of NGO aids, based on the prioritized domains and orientations as well as the general foreign policy.

2. To take part in the evaluation (mainly to supply information and comment on the aid-providing party’s activities...) of programs and projects; to give the Finance Ministry its opinions on non-project aids, which fall under the Prime Minister’s competence for decision, and take part in monitoring the operations of NGO aid-funded projects.

3. To notify the Ministry of Planning and Investment of the situation on mobilization of NGO aids biannually and annually so that the latter may make a sum-up report and submit it to the Prime Minister.

4. To coordinate with the Ministry for Foreign Affairs in proposing to the Prime Minister undertakings on the mobilization of emergency relief.

Article 14.- The Ministry of Public Security shall have the following tasks:

1. To guide and support Vietnamese agencies and organizations in implementing provisions on security protection in the course of receiving and using NGO aids.

2. To give the Ministry of Planning and Investment and the Finance Ministry its opinions on programs and projects as well as non-project aids relating to the State’s institutions, policies, laws, religion, defense and security before there are submitted to the Prime Minister for consideration and decision.

Article 15.- The Government Commission for Religion is tasked to guide and support Vietnamese agencies and organizations to implement the State’s undertakings and policies on religion in the course of receiving and using NGO aids.

Article 16.- The ministries, the ministerial-level agencies, the agencies attached to the Government, the People’s Committees of the provinces and centrally-run cities and the central bodies of people’s organizations shall have the responsibility:

1. To determine their attached agencies and units, which are capable of assuming the main responsibility for and manage NGO aids according to the practical situation of their respective agencies and localities.

2. To direct their attached units to mobilize and take the advantage of assistance of the aid-providing party on the basis of the prioritized domains and orientations in their annual or periodical plans as well as the general external relations policy of the State.

3. To direct their attached units to prepare contents of programs, projects and proposals on humanitarian aids, and send them to the State management agencies mentioned in Articles 9, 10, 11, 12 and 13 of this Regulation for use as basis for the mobilization and ratification of NGO aids.

4. To coordinate with the functional agencies in inquiring into and contacting the aid-providing party.

5. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of the provinces and centrally-run cities and the heads of the central bodies of people’s organizations shall ratify foreign NGO aids according to their competence prescribed in Article 6 of this Regulation (for NGO aids which relate to any ministries, branches or localities, such ministries, branches or localities must be consulted before the ratification thereof) and take responsibility for ratification, arrangement of reciprocal capital and management of the use of those aids. The aid-ratifying decisions (enclosed with the relevant documents and dossiers) must be sent to the Ministry of Planning and Investment and the Finance Ministry within 15 days after the ratification.

6. To take responsibility for directing, guiding, urging, inspecting and supervising their attached units in receiving, managing and using NGO aids in strict compliance with the current regulations and commitments with the aid-providing party. To promptly detect violations related to religion, security, nationality and management regulations... in the course of receiving NGO aids for handling according to their competence or reporting to the concerned agencies mentioned in Article 10 and Article 15 of this Regulation.

7. To sum up the periodical, final and extraordinary reports (if any) on the results of NGO aids implementation by their respective agencies or localities before sending them to the Ministry of Planning and Investment, the Finance Ministry and the General Department of Statistics regarding.

8. To sum up reports on the results of reception, distribution and use of all types of emergency relief mentioned at Point c, Clause 2, Article 6 of this Regulation, before submitting them to the Prime Minister as well as the Ministry of Planning and Investment and the Finance Ministry.

Chapter IV

IMPLEMENTATION OF NON-GOVERNMENTAL AIDS

Article 17.- Supplies, goods, machinery, equipment and transport means imported or purchased in the country with the use of NGO aids, which have been ratified by the competent authorities, shall be exempt from import tax, special consumption tax and VAT (if any) under the current tax laws.

Article 18.-

1. Not to receive goods (including supplies and equipment) on the list of goods banned from import as prescribed by the Government.

2. For the used goods, the receiving agencies shall agree to receive them only when the aid-providing party can produce certification by the competent agency of its home country that those goods still retain 80% or more of their quality, and shall notify the aid-providing party to send such goods only when the Vietnamese competent authority prescribed in Article 6 permits the reception thereof.

Article 19.- Responsibility of the units directly receiving and implementing NGO aids:

1. The units assigned to prepare programs and projects shall have to compile the program and project documents and submit them to the competent authorities for approval before implementation.

2. To clarify contents, objectives, value and beneficiaries of non-project aids and submit them to the competent authorities for ratification before reception and use.

3. To carry out the procedures for reception of the used goods mentioned at Clause 2, Article 18 of this Regulation.

4. To join the concerned agencies in coordinating with the aid-providing party to carry out the preparation work and provide necessary support.

5. To implement aids according to the agreements and commitments with the aid-providing party and in accordance with the Government’s current regulations on financial and monetary management, capital construction and bidding for goods procurement as well as in strict compliance with guidance of the higher-level agencies mentioned at Clause 6, Article 16 of this Regulation.

6. To prepare periodical, final and extraordinary reports (if any) on the reception, implementation and financial situation of NGO aids by their units and submit them to the superior managing agencies for summing up and reporting them to the functional agencies mentioned at Clause 2, Article 20 of this Regulation.

Article 20.- The regime of reporting on the use of NGO aids shall be effected biannually, annually and upon the completion of NGO aid implementation:

1. The ministries, the ministerial-level agencies, the agencies attached to the Government, the People’s Committees of the provinces and centrally-run cities and the central bodies of people’s organizations shall make sum-up reports on the situation of the implementation and financial situation of all NGO aids.

2. Within 2 weeks after the end of 6 months, 1 month after the year of implementation and 3 months after the completion of all NGO aid agreements, all reports must be sent to the Ministry of Planning and Investment, the Finance Ministry and the General Department of Statistics for monitoring, summing up and reporting to the Prime Minister.

3. The reports’ contents shall comply with the Ministry of Planning and Investment’s and the Finance Ministry’s guidance prescribed in Clause 6 of Article 9 and Clause 8 of Article 10 of this Regulation.

Article 21.- Inspection and examination of reception and use of NGO aids:

1. The annual inspection and supervision shall be carried out jointly by the Ministry of Planning and Investment and the Finance Ministry.

2. The extraordinary inspection and supervision shall be proposed by the concerned functional agencies and carried out at the specific requests.

3. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of the provinces and centrally-run cities and the heads of the central bodies of people’s organizations shall have to direct functional agencies in monitoring and inspecting the performance of tasks by the branches, authorities and units that receive and use NGO aids mentioned in this Regulation; and inspect all acts showing signs of violation of this Regulation.

Any organizations or individuals breaching this Regulation shall be handled according to the provisions of law.

For the Prime Minister
Deputy Prime Minister
NGUYEN MANH CAM