Decree No. 99/2021/ND-CP dated November 11, 2021 on management, payment and settlement of projects using public investment capital

GOVERNMENT ——-	SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness —————
No. 99/2021/ND-CP	Hanoi, November 11, 2021

DECREE

PRESCRIBING MANAGEMENT, DISBURSEMENT, PAYMENT AND FINAL SETTLEMENT OF INVESTMENT FUNDS FOR PUBLICLY-FUNDED PROJECTS

Pursuant to the Law on Government Organization dated June 19, 2015; the Law on Amending and Supplementing certain Articles of the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to the Law on Promulgation of Legal Normative Documents dated June 22, 2015; the Law on Amendments and Supplements to certain Articles of the Law on Promulgation of Legal Normative Documents dated June 18, 2020;

Pursuant to the Law on State Budget dated June 25, 2015;

Pursuant to the Law on Public Investment dated June 13, 2019;

Pursuant to the Law on Construction dated June 18, 2014; the Law on Amendments and Supplements to several the Law on Construction dated June 17, 2020;

Pursuant to the Law on Planning dated November 24, 2017;

Pursuant to the Law on State Secrets dated November 15, 2018;

Pursuant to the Law on Representative Missions of the Socialist Republic of Vietnam in Foreign Countries dated June 18, 2009; the Law on Amendments and Supplements to a number of Articles of the Law on Representative Missions of the Socialist Republic of Vietnam in Foreign Countries dated November 21, 2017;

Pursuant to the Law on Land dated November 29, 2013;

Pursuant to the Law on Bidding dated November 26, 2013;

Pursuant to the Law on Management of Public Debts dated November 23, 2017;

Pursuant to the Law on Public – Private Partnership Investment dated June 18, 2020;

Upon the request of the Minister of Finance;

The Government herein promulgates the Decree on management, disbursement, payment and final settlement of investment funds for publicly-funded projects.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree specifies the management, disbursement, payment and final settlement of public investment funds for projects, works, planning and pre-investment mandates under the provisions of the Law on Public Investment, including:

Management and disbursement of public investments in:
a) State budget-funded projects.
b) Public capital-funded planning and pre-investment mandates.
c) Public – private partnership (PPP) investment projects, including: Public investments in implementing mandates such as preparation; compensation, site clearance, support, residential resettlement, assistance in development of temporary works; assistance in building facilities, infrastructure systems which is split into sub-projects of a PPP project and compensation for early contract termination paid to investors, PPP project companies.
d) Public investment projects funded by legitimate revenue that state regulatory authorities and public service units retain for investment purposes.
Final settlement of state budget-funded public investments in the budgetary year (full-year/year-end settlement).
Final settlement of public investments in completed projects, including mandates and projects specified in clause 1 of this Article that are completed or perpetually terminated according to written documents stating permission for suspension or termination issued by persons having competence in ratifying investment decisions.

Projects, construction works, items of work partially or wholly funded by public investments: The final settlement thereof shall be identically subject to the regulations laid down herein, except that of those governed by particular regulations imposed by the Government or the Prime Minister.

For projects funded by contributions in kind, working days or completed works, the final settlement thereof shall be based on unit costs of physical/material objects, working days or value of completed works which are used for calculating the accounting value of works and projects for monitoring and administrative purposes.

Projects funded by public investments existing in the form of building materials and other kinds of physical objects, Ministries, central authorities and provincial People’s Committees shall set out specific regulations on the final settlement of portions of financial grant or aid, depending on actual condition of implementing units and state regulatory authorities.

For official development assistance (ODA), soft loans provided by foreign donors for funding public investment projects, procedures and processes for controlling payment and settlement shall be subject to regulations hereof; in particular, procedures for fund withdrawal and fund withdrawal management shall be subject to international treaties pertaining to ODA, soft loans of foreign donors and regulations of the Government on management and disbursement of ODA and soft loans of foreign donors.
This Decree shall not prescribe the management, payment and settlement of public investments which are used as subsidies on preferential lending interest rates, management fees; equity contributions to policy banks and off-state budget financial funds; financial support for investment of other policy beneficiaries under the Prime Minister’s decisions; state budget funding for enterprises that make agricultural and rural development investments as per the Government’s regulations.

Article 2. Subjects of application

This Decree shall apply to entities and persons involved in or related to the management, payment and settlement of investments in public investment-funded projects within the ambit of Article 1 of this Decree.

Article 3. Interpretation

State regulatory agencies in charge of management, payment and settlement of investments in public investment-funded projects, including the Government, the Ministry of Finance, financial authorities at all levels and agencies assigned or authorized to control, pay and settle publicly funded projects.
State secret-grade public investment project means a public investment project funded by the state budget classified by the grade of secrecy such as Confidential, Secret, and Top Secret on the list of State secrets according to the provisions of the Law on Protection of State Secrets.
Public investment projects in foreign countries are those referred to in clause 1 of Article 3 in the Government’s Decree No. 40/2020/ND-CP dated April 6, 2020, elaborating on implementation of several Articles of the Law on Public Investment.
Disbursement of types of public investment including domestic capital, lawful revenue that state agencies and public service units retain for investment purposes means a regulatory payment body’s payment of advances and for the completed quantities (including payment for recovery of advances) with respect to mandates and projects upon the investor’s request; foreign funds according to the provisions of the Government’s Decree on the management and disbursement of ODA and soft loans of foreign donors.
Advance payment means the regulatory payment body’s transferring money in advance to the individual and institutional beneficiary at the request of the investor to make necessary preparations for the implementation of activities involved in a mandate or project.
Payment for completed quantity means a regulatory payment body’s transfer of money to an individual or institutional beneficiary (or payment for recovery of an advance) at the investor’s request for payment for the value of the quantity already carried out, tested and accepted by the parties as a partially or fully completed work according to a contract or agreement, and satisfying the quality requirements set out in current regulations. In particular, payment of construction project insurance costs for the completed quantity means the payment of obligations arising in the contract already in effect; payment of costs of review and approval of cost estimate means the investor’s payment to the body leading review of the final settlement upon this body’s written request.
Pay-in-advance and check-later of public investment means a payment method applied to several types of expenditure. According to this method, the regulatory payment body proceeds to pay immediately after full receipt of legitimate and valid documents according to this Decree and other relevant regulatory documents. The regulatory payment body can check expenditure and deal with inspection results after expenditure is completed.
Mandate to prepare for investment in a PPP project in this Decree include the tasks specified in point a, b, c and d of clause 1 of Article 11 and those receiving public investments to be carried out under the provisions of clause 1 of Article 73 in the Law on Investment in the Public-Private Partnership Mode.
Tabmis refers to the treasury and budget management information system.
State budget-controlled foreign capital comprises official development assistance (ODA), soft loans from foreign donors (including foreign loans of which settlement is subject to the domestic financial mechanism).
Domestic capital refers to state budget funding (even including Government bonds), exclusive of foreign capital stated in clause 10 of this Article.

Chapter II

MANAGEMENT AND DISBURSEMENT OF PUBLIC INVESTMENTS

Article 4. Regulatory payment bodies

State Treasuries shall take regulatory control of settlement of public investments funded by the state budget and legitimate revenue retained by the state regulatory authority for investing purposes.
Public service units shall take regulatory control of settlement of investments funded by legitimate revenues that they retain for investment purposes.
The Ministry of National Defense and the Ministry of Public Security shall, under their mandate and delegated power, authorize an agency to take regulatory control of settlement of investments in state secret-graded public investment projects in which policies for investment are decided by the Prime Minister; secret or top-secret public investment projects notified to the Ministry of Finance.

Article 5. Account opening

Opening payment accounts for state budget-funded investments:
a) Investors in projects funded by state budget-controlled public investments or agencies signing PPP projects open accounts at State Treasuries where it is convenient to perform transactions. Managing agencies may act on behalf of investors (if investors are not in Vietnam) to sign up for their accounts for use in public investment projects in foreign countries that are funded by the state budget for fund control and payment purposes.
b) Signing up for an account for control and payment purposes shall be subject to the Government’s regulatory provisions related to administrative formalities for the state treasury field and those of the Ministry of Finance pertaining to instructions on signing up for and using accounts opened at State Treasuries.
Opening accounts for control and disbursement of investments in state secret-graded public investment projects in which policies for investment are decided by the Prime Minister; secret or top-secret public investment projects of the Ministry of National Defense and the Ministry of Public Security:
a) The Ministry of National Defense and the Ministry of Public Security shall open accounts at State Treasury for disbursement of investments in state secret-graded public investment projects in which policies for investment are decided by the Prime Minister; secret or top-secret public investment projects of the Ministry of National Defense and the Ministry of Public Security.
b) Signing up for a payment account shall be subject to the Government’s regulatory provisions related to administrative formalities for the state treasury field and those of the Ministry of Finance pertaining to instructions on signing up for and using accounts opened at State Treasuries.
Opening accounts for control and disbursement of investments derived from legitimate revenues retained by state regulatory authorities and public service units for investing in public investment projects shall be subject to the regulations laid down in Article 24 herein.

Article 6. Public investment management and disbursement principles

Management and disbursement of public investments in mandates and projects should serve correct purposes and managed/receiving subjects; ensure cost efficiency, effectiveness and conformance to regulations on management of public investments and state budget that are set out in current law and regulations herein.
Investors utilizing public investments shall manage and use funds to serve correct purposes, managed/receiving subjects; ensure thrift, efficiency and compliance with laws and regulations on financial regimes for investment. Investors using state budget-derived public investments are obliged to comply with legislation on regimes for capital investment and capital construction investment expenditure as provided in the Law on State Budget.
Superiors to investors shall examine and push investors and project management authorities (hereinafter referred to as investors) under their jurisdiction towards implementation of public investment plans and utilization of public investments in compliance with current legislation.
Financial authorities at any level shall perform the tasks of financially managing public investments as part of the duties to comply with regulations and regulatory policies on management and disbursement of public investments in accordance with current legislation and regulations enshrined herein.
Regulatory payment bodies shall have the burden of controlling and disbursing funds in a timely, sufficient and legitimate manner for use in implementing mandates and projects when prescribed disbursement conditions and documentation requirements for disbursement are fully satisfied.
For public investment projects in foreign countries:
a) Signed contracts, current domestic law of host countries, international treaties to which the Socialist Republic of Vietnam is a contracting party, and the current domestic law of the Socialist Republic of Vietnam serve as the legal basis for management, advance allocation and disbursement of investments in public investment projects in foreign countries.
b) Managing bodies shall act on the investor’s behalf to request and carry out payment transactions related to public investments with regulatory payment bodies.

Article 7. Control and payment principles of regulatory payment bodies

Upon receipt of the written documents stating detailed allocation of funds for the public investment plans (including modification and supplementation thereof (if any)) of ministries, central and local authorities for mandates and projects in which procedures for investment as provided in the Law on Public Investment are fully met; allocation and adjusted allocation of planned funds are accepted, regulatory payment bodies shall consult sets of request documents for disbursement submitted by investors, disbursement terms and conditions agreed upon in contracts, budget estimates approved by competent authorities, task assignment statements or internal contracts (in case of autonomous implementation of projects), disbursement instalments, stages, dates and value of each disbursement instalment in order to disburse funds for mandates and projects.

Where a payment/disbursement request of an investor fails to satisfy the disbursement regime or documentation required for disbursement as specified herein are insufficient, the regulatory payment body may refuse to make payment/disbursement and, within 03 working days of receipt of request documentation for payment/disbursement from the investor, shall issue the written notification of specific reasons for refusal of disbursement/payment once to the investor for any necessary modification or improvement to the submitted documentation as per this Decree.

Public investments disbursed/paid out for autonomous or non-contractual implementation of specific works or items of a mandate or project shall not exceed the approved budget estimate. Total disbursement/payment for a mandate or project shall be restricted to total investment approved by the competent authority. The amount of public investments in implementing works or items of work in mandates or projects in a year shall not be greater than the budgeted amount in a year which is available for use.
For expenses calculated on a percentage basis as part of total investment (or the approved budget estimate) as stipulated in legal normative documents currently in effect, regulatory payment bodies shall take control and payment/disbursement steps to ensure these expenses do not exceed the prescribed value in percent.
Regulatory payment bodies shall carry out the practice of control and disbursement of public investments according to the “pay first, check later” principle applied to each installment and, when the expected total amount of disbursement making up 80% of the contract value is reached, shall shift to the “check first, pay later” principle to be applied to each contractual disbursement instalment. Regulatory payment bodies shall provide detailed instructions on how to apply the control and disbursement/payment methods in their system with the intention of providing facilitation for investors, contractors and complying with current regulations.
For public state-secret public investment projects in which policies for investment are decided by the Prime Minister; secret or top-secret public investment projects of the Ministry of National Defense and the Ministry of Public Security:

Agencies authorized by the Ministry of National Defense or the Ministry of Public Security to perform the control and payment/disbursement tasks shall carry out the process of controlling, paying/disbursing public investments to beneficiaries upon the investor’s request, and bear responsibility for control and payment/disbursement under their duty.

Manners of transaction performed at regulatory payment bodies (offline transactions carried out at regulatory payment bodies or electronic transactions):
a) For transactions carried out at State Treasuries, the manner in which these transactions are made shall be subject to the Government’s regulations on administrative formalities in the state treasury operations.
b) For transactions carried out via other regulatory payment bodies, the manner in which these transactions are made shall be subject to the regulations imposed by the regulatory payment bodies where they take place.

Section 1. MANAGEMENT AND DISBURSEMENT OF STATE BUDGET-FUNDED INVESTMENTS

Article 8. Inspection of annual budget allocation

Budget allocation steps:

Upon receipt of the budget plans assigned by the competent authorities (including those assigned at the beginning of the budgetary year, modifications and supplements in the budgetary year), Ministries, central authorities, People’s Committees at all levels or local first-line budget units (if they are accorded authority to allocate the budget) shall take the following required steps:

a) Prepare the detailed budgets of state budget allocations available for public investment in specific mandates or projects according to the criteria set out in Form No. 01/PB, and make adjustments to such detailed budgets (if any) according to the criteria set out in Form No. 02/PB appended hereto, for submission to same-level financial authorities in order to control and manage annual state budget estimates according to the regulations of the Law on State Budget and documents providing instructions on implementation thereof that are currently in effect, as well as same-level regulatory payment bodies. Provincial People’s Committees compile the update report on implementation of the detailed budget of state budget allocations for investment in specific mandates or projects for submission to the Ministry of Finance for administrative, synthesis or reporting purposes, or its written instructions to be given in case where such allocation is illegal or does not satisfy disbursement requirements.
b) Set the budget targets to be followed by investors; assign the detailed budgets fully satisfying criteria according to the Form No. 01/PB, and the updated detailed budgets (if any) fully satisfying the criteria set out in the Form No. 02/PB to investors for their compliance, and send them to regulatory payment bodies where transactions are made as a basis for control and disbursement/payment of funds.
c) Ministries, central authorities, all-level People’s Committees or local first-line budget units allocate advances in the following-year budget estimate (if permitted to do so by competent authorities) available for use in mandates or projects of subordinate and inferior state budget users in the same manner as the assigned budget in the current year.
d) Deadline for assignment of the detailed budget and the annual budget for public investment in mandates or projects is ahead of December 31 in the year preceding the plan year, or varies according to the one specified in the decision on budget assignment, modification or transfer in the budgetary year of the competent authority. Where the decision on budget assignment, modification or transfer in the budgetary year issued by the competent authority does not prescribe any deadline, within the maximum duration of 10 working days of receipt of the competent authority’s decision, Ministries, central authorities, all-level People’s Committees or local first-line budget units shall be obliged to finish distributing budgets among detailed budget structure elements and assigning detailed budgets as per point a and b of this clause.
Budget allocation inspection:
a) For mandates or projects put under the control of ministries or central authorities:

Within 10 working days of receipt of the written document stating allocation of funds in the detailed budgets for public investment from ministries and central authorities, the Ministry of Finance shall check over funding arrangements to ensure conformance to clause 2 of Article 49 in the Law on State Budget. When detecting funding for mandates or projects that are not included in the accepted investment portfolio; which is greater/lower than total investment amount; which is not aligned with the detailed budget structure of which elements are arranged by industries, sectors or assignments (if any); which is in breach of regulatory policies, the Ministry of Finance shall send written requests to ministries, central authorities for any necessary adjustment to ensure compliance with regulations, and notify such situation to regulatory payment bodies (at the central level and at places where transactions occur) so that they can refuse to make disbursement/payment of budgets to the mandates or projects involved in these situations. Within 07 working days of receipt of written requests from the Ministry of Finance, Ministries and central authorities shall instruct investors in mandates or projects involved in such failure to comply with regulations on budget allocation to repay the state budget the disbursed amounts (if any).

Within 07 working days of receipt of the Ministry of Finance’s requests, Ministries or central authorities must make any requested adjustment and send the revised written statements of budget allocation to the Ministry of Finance, regulatory payment bodies (at the central level and at the places where transactions occur) as a basis for disbursement/payment of funds for fully qualified mandates or projects. In case of failure to reach agreement with the Ministry of Finance, Ministries or central authorities may submit a written report on the situation to the Prime Minister to seek his decision. Pending the Prime Minister’s decision, Ministries, central authorities and investors are not allowed to disburse the budget portion of which allocation needs to be reviewed upon the Ministry of Finance’s request.

b) For projects under the local management:

Within 10 working days of receipt of the written document stating allocation of funds in the detailed budgets for public investment from local first-line budget units, same-level financial authorities shall check over budget allocation arrangements to ensure conformance to clause 2 of Article 49 in the Law on State Budget. When detecting allocation of budgets for mandates or projects that are not included in the accepted investment portfolio; which is greater/lower than total investment amount; which is not aligned with the detailed budget structure of which elements are arranged by industries or assignments (if any); which is in breach of regulatory policies, financial authorities shall send written requests to local first-line budget units for any necessary adjustment to ensure compliance with regulations, and notify such situation to regulatory payment bodies to prevent them from making disbursement of budgets for those mandates or projects involved in these wrongs. Within 07 working days, Ministries and central authorities shall instruct investors in mandates or projects involved in such failure to comply with regulations on budget allocation to repay the state budget the disbursed amounts (if any).

Within 07 working days of receipt of financial authority’s requests, local first-line budget units must make any requested adjustment and send the revised written statement of budget allocation to financial authorities or regulatory payment bodies at the places where transactions occur as a basis for disbursement/payment of budgets for fully qualified mandates or projects. In case of failure to reach agreement with financial authorities, local first-line budget units may submit a written report on the situation to the People’s Committees (the budget assignors) to seek their decision. Pending the decision from the People’s Committees (the budget assignor), local first-line budget units and investors are not allowed to disburse the budget portion of which allocation needs to be reviewed upon the financial authority’s request.

Ministries, central authorities, financial authorities at all levels, regulatory payment bodies (State Treasury) shall enter and approve state budget-derived estimated public investments annually on Tabmis under their delegated authority and according to regulations currently in force.

Article 9. Dossiers on control and payment/disbursement of budgets for projects

Legal dossiers of mandates or projects (originally sent when transacting with regulatory payment bodies; when there is any change, modification or supplementation):
a) For the planning mandate:

– Annual public investment plan commissioned by competent authorities;

– Decision or written document stating assignment of planning tasks issued by competent authorities, decisions or written documents stating modification (if any);

– Estimate of costs of the planning mandate or estimate of costs of each item in the planning mandate which is approved by competent authorities;

– Decision or written document stating approval of the contractor selection plan of competent authorities as per the regulations of the Law on Bidding;

– Written permit of competent authorities for autonomous implementation that is required if this is the case and it is not available in the decision or written document stating assignment of the planning mandate of competent authorities;

– Contract, contract performance security (where the contract prescribes that the contract term commences from the contractor’s provision of contract performance security); appendices to the contract that are required if there is any change in contractual terms and conditions or written document stating assignment of work, or intracorporate full-package contract (in case of self-implementation).

b) For the pre-investment mandate:

– Annual public investment plan commissioned by competent authorities;

– Decision or written document stating assignment of investment preparatory tasks issued by competent authorities (except if these tasks have already been included in the decision on approval of the project or the decision on approval of socio-economic impact assessment reports), decisions or written documents stating adjustments (if any);

– Estimate of costs of the pre-investment mandate or estimate of costs of each item included in the pre-investment mandate which is approved by competent authorities;

– Decision or written document stating approval of the contractor selection plan of competent authorities as per the regulations of the Law on Bidding;

– Contract, contract performance security (where the contract prescribes that the contract term commences from the contractor’s provision of the bond); appendices to the contract that are required if there is any change in contractual terms and conditions or written document stating assignment of work, or intracorporate full-package contract (in case of self-implementation).

c) For the project implementation mandate:

– Annual public investment plan commissioned by competent authorities;

– Decision on approval of an investment project (or Decision on approval of a technical and economic report on projects subject to only one requirement for preparation of economic-technical reports), issued by a competent authority, and decisions on modification of projects (if any);

– Decision or written document stating approval of the contractor selection plan of competent authorities as per the regulations of the Law on Bidding. Written permit of competent authorities for autonomous implementation that is required if this is the case and it is not available in the investment decision of competent authorities;

– Contract, contract performance security (where the contract prescribes that the contract term commences from the contractor’s provision of the contract performance security); appendices to the contract that are required if there is any change in contractual terms and conditions; joint venture or consortium agreement (where joint venture or consortium arrangements are not prescribed in the contract);

– Written document stating assignment of tasks or intracorporate full-package contract that is required in case of self-implementation;

– Competent authority’s written document stating approval of the estimate of costs of jobs, items or works that is required in case where projects are implemented according to the contractor appointment, self-implementation and non-contractual implementation approaches (except the projects required to have economic – technical reports);

– Estimate of costs paid for compensation, support and residential resettlement work approved by competent authorities; estimate of costs paid for compensation, support and residential resettlement approved by competent authorities, and the compensation, support and resettlement plan approved by competent authorities with respect to the compensation, support and residential resettlement mandate;

– Site clearance plan or record of partially or wholly cleared site handover in accordance with the contractual agreement that is required if the construction contract’s scope of work include site clearance.

Advance payment dossier (sent as attached to each request for advance on budget), including:
a) Payment request (Form No. 04.a/TT);
b) Money transfer record (Form No. 05/TT);
c) Proof of advance payment guarantee (original or certified true copy, whichever is legally accepted) that is required if advance payment guarantee is an obligation stipulated in clause 2 of Article 10 herein.
Payment dossier (sent as an attachment to each payment request for completed quantity), including:
a) For the quantity completed under a type of contract (e.g. construction contract, project execution contract without building part or component), payment dossier shall include: Payment request (Form No. 04.a/TT), money transfer proof (Form No. 05/TT); written request for recovery of advance (where appropriate, using Form No. 04.b/TT); chart showing completed quantities (Form No. 03.a/TT); chart showing quantities not included in the primary contract that is required where relevant (Form No. 03.c/TT).
b) For the quantity completed without being subject to any contract:

– With respect to compensation, support and residential resettlement, payment dossier shall include: Payment request (Form No. 04.a/TT); money transfer proof (Form No. 05/TT); written request for recovery of advance (where relevant, using Form No. 04.b/TT); chart showing completed compensation, support and residential settlement quantities (Form No. 03.b/TT); home purchase contract and home handover report (in case of purchase of homes for people affected by human migration, site clearance, support and residential resettlement).

– Regarding documentation requirements for compensation, support and residential resettlement, payment dossier shall include: Payment request (Form No. 04.a/TT), money transfer proof (Form No. 05/TT); written request for recovery of advance (where relevant, using Form No. 04.b/TT).

– In other cases where quantities are completed without being subject to any contract, payment dossier shall include: Payment request (Form No. 04.a/TT), money transfer proof (Form No. 05/TT); written request for recovery of advance (where relevant, using Form No. 04.b/TT); chart showing completed quantities (Form No. 03.a/TT); chart showing payment proofs (compiled and taken in charge by investors).

c) Dossier on payment of costs of the construction job of works (including construction of homes used for residents moving to other places due to project site clearance) intended for payment for compensation, support and residential resettlement shall be subject to clause 1 and 2, point a, b, d and dd of clause 3 of this Article.
d) For the completed mandates or projects, if they obtain approval of final accounting from competent state authorities, and costs specified in the approved total settlement amount have not been fully paid, payment dossiers shall comprise: Payment request (Form No. 04.a/TT); decision on final accounting approval; money transfer proof (Form No. 05/TT).
dd) For insurance or audit contracts, inspection, review and final accounting approval fees, payment dossier shall include: Payment request (Form No. 04.a/TT); money transfer proof (Form No. 05/TT).
Documentation requirements of projects classified as part of national target programs:

Legal dossier, advance dossier, payment dossier of the project classified as part of the national target program shall be subject to the regulations laid down in clause 1, 2 and 3 of this Article. Especially for small-scale projects developed using uncomplicated techniques, receiving both state financial support and public contributions (i.e. small-scale category-C projects), if they are financed by funds of the national target program under the management of the commune-level People’s Committee, legal dossier shall include:

a) Annual public investment plan commissioned by competent authorities;
b) Written document stating approval of the estimate of pre-investment costs that is issued by competent authorities, enclosing the estimate of costs of pre-investment costs (for investment preparation mandates); written document stating approval of construction documents that is issued by commune-level People’s Committees, enclosing construction documents (for project execution mandates);
c) Contract, contract performance security (where the contract prescribes that the contract term commences from the contractor’s provision of the bond).
Documentation requirement for withdrawals from deposit accounts of transaction units shall be subject to the regulations laid down in clause 1, 2 and 3 of this Article.

Documentation requirement for withdrawals from deposit accounts that regulatory payment bodies do not need to control is money transfer proof (Form No. 05/TT).

Documentation requirement for project fiduciary management shall include: Entrustment contract and the dossiers specified in clause 1, 2 and 3 of this Article.
Documentation requirements for project management expenses:
a) Legal documents (sent all at the beginning of the year; or when there is any change, modification or supplementation):

– Annual public investment plan commissioned by competent authorities;

– Written document stating approval of annual estimate of project management revenues and expenditures (except where the annual cost estimation is not required); cost estimate and written document stating approval of the cost estimate of competent authorities (in case of self-implementation);

– Decision to grant financial autonomy of competent authorities (for units given financial autonomy which is not prescribed in the founding decision); internal spending rules;

– Decision to set up the project management unit or written document prescribing the personnel structure of the project management unit of competent authorities, or written document on approval of personnel requirements of competent authorities;

– Contract between the investor and the contractor (for works to be carried out by signing contracts); project management entrustment contract (for cases in which investors entrust the task of project management to the specialized or regional project management unit in accordance with regulations); appendices to the contract that are needed where there is any change in contractual terms and conditions (if any).

b) Advance or payment dossier (sent on demand for payment of costs of completed quantities) that is needed in case the investor directly manages a project; or the investor entrusts all of project management tasks to the specialized and regional project management unit:

Advance dossier, including: Payment request (Form No. 04.a/TT); money transfer proof (Form No. 05/TT).

Payment dossier, including: Payment request (Form No. 04.a/TT), money transfer proof (Form No. 05/TT); written request for recovery of advance (where relevant, using Form No. 04.b/TT); other relevant documents prescribed in the Government’s regulations on administrative procedures in the scope of state treasury activities that are required to be included in the dossier on payment for regular state budget expenditures from budget accounts of state budget users, dossier on payment for expenditures on implementation of repair, maintenance, reconstruction, upgradation and expansion of facilities.

c) Dossier needed in cases where the investor directly manages multiple projects; the investor partially entrusts the task of project management to the specialized or regional project management unit:

Dossier needed for transferring project management funds from the budget account to the deposit account, including: Payment request (Form No. 04.a/TT); money transfer proof (Form No. 05/TT).

Documents on advance of funds for project management costs from the deposit account (sent on demand for advance payment), including: Payment request (Form No. 04.a/TT); money transfer proof (Form No. 05/TT).

Payment dossier, including: Payment request (Form No. 04.a/TT), money transfer proof (Form No. 05/TT); written request for recovery of advance (where relevant, using Form No. 04.b/TT); chart showing distribution of project management expenses designed for requesting recovery of project management expense advances (Form No. 11/QLDA); other relevant documents prescribed in the Government’s regulations on administrative procedures in the scope of state treasury activities that are required to be included in the dossier on payment for regular state budget expenditures from budget accounts of state budget users; dossier on payment for expenditures on implementation of repair, maintenance, reconstruction, upgradation and expansion of facilities.

Article 10. Advances

Advance funding principles:
a) For construction contract-based jobs:

Advance disbursement of funds may proceed after entry into force of contracts and investors are provided with the guarantee for advance on contract value from contractors (where the guarantee for advance is required) whose value is equal to the amount of advance disbursement. In particular, with respect to construction contracts, where site clearance is required, the plan for site clearance or the record of (partially or wholly) cleared site handover that site clearing organizations provide for investors under contractual arrangements must be in place.

Amount, time, amount of regular recovery, time of regular recovery and other arrangements regarding protection for recovery of advances which is agreed upon between investors and contractors in accordance with regulations must be specified in contracts and keep up with the investment, contract execution progress and quantities worked each year. Advance amount and number of advance payments shall be arranged in years according to the contract performance schedule set in the respective year (if any).

Based on the demands for advance disbursement, investors may make one-off or instalment advance disbursement under a contract on condition that total advance disbursement does not exceed the amount of advance disbursement prescribed in contracts and is restricted to the maximum amount of advance disbursement prescribed in clause 3 of this Article.

Investors shall work with contractors to calculate the amount of advance disbursement which is rational and conform to regulations of clause 3 of this Article; manage the utilization of the advance to ensure that the advance serves agreed-upon purposes, beneficiaries, is effective, and take responsibility to recover the amount of advance disbursement.

b) For contract-based or non-contractual jobs in projects without construction components:

For contract-based jobs in projects without any construction component, the advance disbursement of funds may proceed after entry into force of contracts and investors are already provided with the guarantee for advance on the contract sum from contractors (where relevant) whose value is equal to the amount of advance disbursement. In this situation, the amount, time of advance disbursement, amount and time of regular recovery of advance disbursement, and other arrangements concerning security for recovery of advance disbursement, on which investors agree with contractors as per regulations must be specified in contracts and in line with the investment, project execution progress and quantities worked on an annual basis. Advance amount and number of advance payments shall be arranged in years according to the contract performance schedule set in the respective year (if any).

For non-contractual jobs, the advance disbursement of funds shall proceed after the estimate of costs of implementation of these jobs or the site clearance plan is approved by competent authorities, and upon the investor’s request.

Based on the demands for advance disbursement, investors may make one-off or instalment advance disbursement on condition that total advance disbursement does not exceed the maximum limit on advance disbursement that is set as per clause 3 of this Article.

Guarantee or security for advance disbursement:
a) For contracts whereunder the amount of advance payment is greater than 01 billion dong, the guarantee for the advance disbursement must be in place:

Investors shall send regulatory payment bodies the guarantee for the advance on the contract sum provided by contractors or suppliers in the corresponding currency type which is equal to the amount of advance disbursement before regulatory payment bodies’ transfer of such advance to investors as a prerequisite for advance disbursement of funds available for use by contractors or suppliers.

The amount of guarantee provided for an advance is reduced in proportion to the amount of advance disbursement recovered by each payment transaction between the client and contractor. Investors shall assure and undertake that the value of guarantee for advance disbursement corresponds to the remaining amount of advance disbursement.

The validity period of the guarantee for advance disbursement may be extended until the investor fully recovers the advance disbursement and must be specified in contracts and proofs of guarantee for the advance disbursement. Where the guarantee is expired, the investor shall submit application for extension of the guarantee for advance disbursement to regulatory payment bodies as a basis for their control of expenditures in accordance with regulations in force. Investors shall supervise the validity period of the guarantee.

b) Exceptions from the requirement for provision of the guarantee for advance disbursement:

– For contracts with the amount of advance on the contract sum which is less than or equal to 01 billion dong, simple or small-sized contracts, contractual agreements shall be carried out in accordance with legislation on bidding and construction.

– Construction contracts carried out in the self-implementation form, including those carried out by residential communities according to national target programs.

– Project management trust agreements.

– Non-contractual jobs, compensation, support and residential resettlement work (except where building work is needed).

– Advance funding against costs of project management boards that is given to investors or project management boards.

Amounts of advance disbursement:
a) For the jobs carried out under contracts (e.g. construction contracts, contracts for execution of projects without building part or component):

Total amount of advance disbursement given upon the investor’s request shall not exceed 30% of the contract value (including any allowance). Where the higher amount of advance disbursement is needed, permission must be obtained from investment decision makers. For projects in which decisions on investment are made by the Prime Minister, the decision on the greater amount of advance disbursement may be made by Ministers, Heads of ministerial agencies or Presidents of provincial People’s Committees. Makers of decisions on the amount of advance disbursement shall be legally liable for their own decisions and take control of how to use such advance disbursement legally.

b) For non-contractual jobs:

– Total amount of advance disbursement given upon the investor’s request shall not exceed 30% of the approved estimated costs of the quantities of work. Where the higher amount of advance disbursement is needed, permission must be obtained from investment decision makers. For projects in which decisions on investment are made by the Prime Minister, the decision on the greater amount of advance disbursement may be made by Ministers, Heads of ministerial agencies, Presidents of provincial People’s Committees. Makers of decisions on the amount of advance disbursement shall be legally liable for their own decisions and take control of how to use such advance disbursement legally.

– The amount of advance disbursement for compensation, support and residential resettlement work is divided into the followings: advance amounts varying according to the plan and schedule of compensation, support and residential resettlement work; on-demand maximum amount of advance disbursement that does not exceed the amount specified in the plan for compensation, support and residential resettlement that is approved by competent authorities; where investors directly pay compensation, relief and residential resettlement costs, based on relevant documents and records, payments shall be made to beneficiaries; where institutional entities are in charge of the compensation, support and residential resettlement work, they must sign up for deposit accounts with regulatory payment bodies which are used for receiving advance disbursements from investors for further payment/disbursement purposes.

– The amount of advance disbursement of funds for project management work shall not exceed the estimated cost of project management and that in the budgetary year (where investors or project management authorities obtain approval of the annual estimate of project management costs from competent authorities) approved by competent authorities.

Advance funding occurring in the cases specified in clause 3 of this Article shall not exceed the annual public investment budget assigned by competent authorities to projects.
Recovery of advance funding:
a) Advance funding that is recovered by payments for completed contractual quantities; amount to be recovered in each instalment, must be agreed upon with contractors, specified in contracts, and must be fully recovered when total disbursement reaches 80% of the contract value (except where greater advance is permitted by competent persons).
b) For compensation, support and residential resettlement work: After paying beneficiaries, investors shall collect evidencing documents, proceed to make payment and recover advances within 30 days from the date of payment to beneficiaries, and avoid not taking action to recover advances until the compensation, support and residential resettlement plan is fully completed.

For advance funding against general and administrative costs of compensation, support and residential resettlement work, regulatory payment bodies shall consult the annual account of these general and administrative costs approved by competent authorities to proceed to recover advance funding.

c) For project management expenses: Investors shall make a list of completed quantities (bearing their signature and stamp) and submit it to regulatory payment bodies as a basis to carry out procedures for recovery of advance funding. Investors shall not be required to submit documents evidencing payments or invoices to regulatory payment bodies, and shall be responsible for the accuracy and legitimacy of the quantities and requested payment value according to the approved cost estimate.

In case where the project management authority or the investor directly takes charge of multiple projects, on a quarterly, six-monthly and year-end basis, the investor shall prepare the distribution chart of project management expenses (completed quantities of work specified in the cost estimate) for each project for submission to regulatory payment bodies in order for the process for recovery of advances to proceed (Form No. 11/QLDA).

d) For contracts for procurement of machinery and equipment: Under contracts signed between investors and contractors, the full amount of advance funding must be recovered when quantities of work are completed as agreed upon in these contracts.
Inspection and review of advance funding and recovery of advance disbursements:
a) Regulatory payment bodies solicit investors to comply with regulations on recovery of advance funding, cooperate with investors in checking over amounts already disbursed in advance for the purpose of recovering amounts of advance disbursement not yet used or misused. Regulatory payment bodies checks the balance of advance funding to ensure that amounts already disbursed in advance are recovered in full in accordance with clause 5 and point d of clause 6 of this Article.
b) By the 5^th of the first month in the following quarter, investors prepare the review report on advance disbursement of funds and recovery of advance funding for investment for each project for submission to regulatory payment bodies where transactions occur, and investor’s superiors, clearly stating the balance of advance funding that has not yet been recovered till the reporting time, reasons, issues and problems arising from recovery of the overdue balance of advance funding (if any) as well as recommended solutions.
c) On a six-monthly and annual basis, by July 10 in the budgetary year and by February 28 in the outyear, regulatory payment bodies at all levels prepare the review report on advance disbursements and recovery thereof of ministries, central and local authorities for submission to same-level financial authorities (Form No. 08/SDTƯ), clearly pointing out overdue balances not yet recovered till the reporting time, reasons, issues and problems arising during the process for recovery of the overdue balances (if any) and recommending solutions.

Based on the report of the same-level regulatory payment body, the Ministry of Finance instructs ministries and central authorities in writing to take action to recover overdue balances of advance funding for the projects under the management of ministries, central authorities; instructs departments of finance, district-level finance – planning divisions to report to same-level People’s Committees in order for them to take actions to recover late payments on advance funding for the projects under the management of same-level People’s Committees.

d) Time limits for recovery of advance disbursements:

For the jobs carried out under contracts (e.g. construction contracts, contracts for execution of projects without building part or component): If advance funding is late for recovery for more than 03 months from the due date of recovery stipulated in the contract during which the contractor has not yet used it for executing the project, or misuses it, the investor shall take charge of or cooperate with regulatory payment bodies in recovering advance funding to the state budget. Where the investor has not recovered the advance disbursement yet, the regulatory payment body shall request the investor in writing to recover advance disbursement from the contractor, or request the credit institution to issue the guarantee for recovery of advance funding to fulfill their guarantee obligations when the contractor violates their commitment for use of advance funding to the investor.

For compensation, support and residential resettlement work: If the advance funding is late for recovery for a period of 03 months from the advance funding date during which it is not paid to the beneficiary, the investor shall take charge of and cooperate with the regulatory payment body in requesting the entity in charge of compensation, support and residential resettlement to transmit all of the balances of advance funding to the investor’s deposit account at the regulatory payment body in order to facilitate the control, disbursement and recovery of advance funding.

After such period, if the entity in charge of compensation, support and residential resettlement work has not fully transmitted the overdue balance of advance funding to the investor’s deposit account at the regulatory payment body, upon the investor’s request, the regulatory payment body may withdraw money from the deposit account of the entity in charge of the compensation, support and residential resettlement work opened at the regulatory payment body and transfer such sum to the investor’s deposit account at the regulatory payment body, and notify such money transfer to the entity in charge of the compensation, support and residential resettlement work.

One year after the date of money transfer to the investor’s deposit account opened at the regulatory payment body, if such sum has not yet paid to the beneficiary, the investor shall refund the amount of advance disbursement to the state budget (except where the person whose land is appropriated for project development purposes refuses to receive compensation or financial support according the approved plan for compensation, support or residential resettlement). Where the investor does not refund advance funding to the state budget, the regulatory payment body shall be allowed to withdraw money from the investor’s deposit account to remit such money into the state budget, reduce the amount of advance disbursement to the project and notify such reduction to the investor in that project.

For other jobs performed without contracts, if the advance funding is late for recovery for the period of 06 months from the advance disbursement date during which the investor has not recovered the advance funding yet, the regulatory payment body shall request the investor in writing to repay the amount disbursed in advance, except when the competent authority (the cost estimate approver) allows extension of the time limit for recovery of advance funding for completing quantities due to objective causes, or in case where advance funding against project management costs is paid to specialized or regional project management authorities. Within 03 months after the date of mandatory repayment of amounts disbursed in advance, if the investor has not refunded the amount disbursed in advance, the regulatory payment body may withdraw money from the investor’s deposit account to remit such sum to the state budget, reduce the amount already disbursed for use by the project and notify this action to the investor.

Article 11. Payment of costs of completed quantities

For the jobs carried out under contracts (e.g. construction contracts, contracts for execution of projects without building part or component):
a) Payment for completed quantities made according to contracts must rely on the contract type, value and contractual terms and conditions. The number of payment intervals, payment phases, and points of time, documents and conditions must be clearly regulated in each contract. Investors shall be responsible for complying with requirements for application of contract prices under applicable regulatory provisions.
b) For turnkey contracts: Paying for completed quantities at the percentage rate of contract value or costs of construction works, items or quantities of work by respective stages of payment that contracting parties agree on in contracts, and without being subject to the requirement for confirming completed quantities in detail.
c) For fixed-price contracts: Paying for completed quantities according to the actually completed quantities (even including any increase or decrease accepted by competent authorities) successfully undergoing acceptance testing in each payment instalment and agreed-upon unit prices.
d) For adjustable-price contracts: Paying for completed quantities according to the actually completed quantities (even including any increase or decrease that occurs) successfully undergoing acceptance testing in each payment instalment and agreed-upon unit prices or unit prices adjusted according to agreements reached in contracts.
dd) For time-based contracts:

– Expert hiring costs are calculated by multiplying professionals’ pay rates and other associated expenses that involved parties agree on in contracts by the actually tested on-duty period (in months, weeks, days or hours).

– Expenses other than remunerations paid to professionals are paid according to the agreed-upon methods.

e) For mixed price-based contracts: Paying for completed quantities depending on types of contract referred to in point b, c, d and dd of clause 1 of this Article.
g) For quantities of work coming into existence (outside of contracts) without any contractual unit price, paying for completed quantities by agreement on supplements to contracts which is reached by contracting parties prior to contract commencement, and aligned with current regulations of relevant legislation.
h) Any adjustments in and/or to contracts shall be subject to regulations on contracts currently in force.
i) Investors entrust project management task to specialized or regional project management authorities to ensure that payment for completed quantities is made according to regulations laid down in entrustment contracts. Scope of activities involved in an entrustment contract must be stated in the contract.

Where the investor entrusts the specialized or regional project management authority with all of the tasks of project management (including withdrawing the budget and making transactions with the regulatory payment body), in addition to the scope of activities involved in entrustment, the investor shall be obliged to assign the account holder’s rights to the assignee and such assignment must be clearly stated in the contract.

k) Where it is mandatory to temporarily suspend the contractor from receiving a specific amount of money or a particular percentage of payment compared to the completed quantity for the purpose of final accounting for investments in the completed project, the investor must seek to reach agreement with the contractor and then such agreement must be clarified in the contract. The amount kept in the temporary custody as stated above shall be transferred to the deposit account that the investor opens at the State Treasury for management and settlement purposes in accordance with regulations.
For jobs carried out without being subject to any binding contract, payment shall be made according to the chart showing completed quantities. Investors shall be responsible for the accuracy and legitimacy of the completed quantities and amounts involved in payment requests according to the approved estimate of costs of jobs performed relevant to specific types of work.
For the completed mandates or projects, if the amounts of funding that is equal to the amounts stated in the approved final accounts have not yet been disbursed in full for them after obtaining consent to the final account for investments in these mandates or projects, regulatory payment bodies shall consult the decision on approval of the cost estimate and budgeted investments assigned in the year of a project to control disbursements and disburse funds to the project.

Article 12. Management, disbursement, recovery and final accounting of stage budget advances in the outyear

Advance on the outyear’s state budget funding shall be subject to the regulations of the Law on State Budget, the Law on Public Investment and the Government’s regulations on advance on the outyear’s state budget funding.
Managing agencies shall allocate advance on the outyear’s state budget funding to mandates or projects on the permissible investment portfolios and at the amounts authorized by competent authorities. The process for checking the apportionment, prepaid payment and settlement of the advance on the outyear’s state budget funding shall be carried out in the same manner as state budget investments authorized by competent authorities according to the budgetary year’s budget.
Ministries, central authorities, financial authorities at all levels and regulatory payment bodies (State Treasury) shall enter and confirm the advance on the outyear’s state budget funding on Tabmis under their delegated authority and according to regulations currently in force.
Time limits for utilization of the advance on the outyear’s state budget funding: These time limits shall be subject to the same regulations as those applied to time limits for disbursement/settlement of the budgetary year’s state budget-derived public investments if the advance on the outyear’s budget for use as such investments is authorized by competent authorities. In special cases where the Prime Minister is vested with authority to decide the time limit for utilization of the advance on central budget-derived funding; the Presidents of People’s Committees at all levels are accorded authority to decide the time limit for utilization of the advance on local budget-derived funding under their respective jurisdiction, all of the time limits shall not be later than December 31 in the following year.
Upon expiry of the final deadlines for availability and disbursement, the remaining amounts of advance funding shall be treated in the same manner as the budgetary year’s state budget-derived public investments.
Recovery of advance funding: Managing agencies shall make funding for projects in the outyear’s state budget estimate available for use as repayments on the advance funding. Managing agencies and regulatory payment bodies shall carry out regulatory procedures for recovery of the advance funding from the budgeted amounts authorized by competent authorities in the budgetary year.
a) For the advance on central budget-funded public investments: Where any ministry or central authority fails to provide or inadequately provides the minimum budget for recovery of the advance funding according to the decision to assign the annual plan issued by the Prime Minister, the Ministry of Finance shall issue a written notification to request them to make an adequate budget available for recovery of the advance funding in accordance with regulations. Within 10 days after receipt of the written notification from the Ministry of Finance, if they fail to provide the budget in full for recovery of the advance funding according to the plan assignment decision of the Prime Minister, the Ministry of Finance shall report to the Prime Minister and request regulatory payment bodies in writing to temporarily suspend funding for the project failing to meet the requirement for recovery of advance funding pending the Prime Minister’s directives.
b) For the advance on local budget funding or targeted transfers from the superior budget to the inferior budget: Where first-line local budget units fail to provide or inadequately provide the budget for recovery of the advance funding in accordance with regulations, Departments of Finance and Divisions of Finance – Planning shall issue the written notification to these units so that they arrange to recover the advance funding in accordance with regulations. Within 10 working days after receipt of the written notification from financial authorities, if these units fail to arrange to recover the budget according to the budget assignment decision, Departments of Finance and Divisions of Finance and Planning shall report to the same-level People’s Committees and request regulatory payment bodies in writing to temporarily suspend funding for the project failing to meet the requirement for recovery of the advance funding pending the instructions of the same-level People’s Committees.
Final accounting of advance funding: The advance funding recovered in a budgetary year shall be subject to the final accounting in that year provided that such final account is in line with the plan for recovery of the advance funding approved by competent authorities.

Article 13. Regulations on time limits for advance disbursement and payment of annual funds and time limits for control and payment of funds of regulatory payment bodies

Regarding time limits for advance disbursement:

The annual budget for investment in a project may be disbursed in advance till end of December 31 in the planning year (except in case of advance funding for compensation, support and residential resettlement, the advance disbursement is made till end of January 31 in the year following the planning year).

Regarding time limits for payment for completed quantities:

The annual budget for a project shall be paid for completed quantities successfully tested till end of December 31 in the planning year by end of January 31 in the year following the planning year (including paying for recovery of the advance funding).

In case of extension of the time limit for disbursement of funds as per the Law on State Budget, the Law on Public Investment and other written documents providing instructions about implementation of laws currently in force of the Government, the time limit for disbursement shall be subject to the competent authority’s decision.
Time limits for control and payment of funds: Within 03 working days of receipt of a full set of payment request documents from investors as provided in this Decree, based on contracts (or approved estimates of costs of jobs performed without any binding contracts) and investors’ requests, regulatory payment authorities shall carry out control and disbursement of funds for projects and recover the advance funding as per regulations. For funds disbursed in advance according to “pay first, check later” approach, the time limit for control and disbursement of these funds shall be within 01 working day of receipt of all documents required herein.

Article 14. Particular regulations for management and payment of funds for foreign-funded projects

Dossiers on control and payment/disbursement of budgets for projects:
a) Legal dossier of the project (originally sent when transacting with regulatory payment bodies; on demand; modified or supplemented): Subject to clause 1 of Article 9 herein; the contract between the investor (project owner) and the contractor that needs to be translated into Vietnamese (signed and sealed by the project owner) with respect to the section describing regulations on payment of contractual obligations (if the contract is in a foreign language); Vietnamese translations of agreements on ODA or concessional loans between the Government of Vietnam and the sponsors (bearing the signature and stamp of the project owner); agreement, letter or written document regarding “uncontentious opinions” of the sponsors (if any).
b) Advance funding and payment dossier shall be subject to Article 9 herein.

In case where contracts prescribe the use of a temporary payment certificate to replace the chart of completed quantities, units must send temporary payment certificates validated by investors (project owners) and contractors.

In case of confirmation given at the State Treasury, and payments made at service banks, in addition to the above documents, project investors (owners) shall not be required to send money transfer documents.

Project investors (owners) shall make the statement of expenditures and ensure that foreign fund disbursement is lawful according to the principle that each payment confirmation is applicable to a disbursement only.
For the method of withdrawing funds and transferring them to the special account, the project investor (owner) shall report on expenditures and send the letter of transmittal to return proofs of these expenditures on a monthly basis. Time limit for returning proofs of expenditures from the special account to the Ministry of Finance shall not exceed 06 months. After the 6-month time limit, if the investor (project owner) does not return these proofs, the method of direct payment for subsequent disbursements shall be applied.

Section 2. MANAGEMENT AND DISBURSEMENT OF FUNDS FOR PATICULAR PUBLIC INVESTMENT PROJECTS FUNDED BY STATE BUDGET

Article 15. Fund management and disbursement regulations for state secret-graded public investment projects

Those comprise state-secret public investment projects that are determined according to laws on protection of state secret and legislation on construction (excluding state-secret public investment projects in which policies for investment are decided by the Prime Minister; secret or top-secret public investment projects of the Ministry of National Defense and the Ministry of Public Security).
The budget allocation, checking of such allocation, control and disbursement of funds for state-secret public investment projects shall be subject to Article 8 herein.
The legal dossier, advance funding and disbursement dossier of a state-secret public investment project shall include the followings:
a) Annual public investment plan commissioned by competent authorities;
b) Payment request (Form No. 04.a/TT);
c) Money transfer proof (Form No. 05/TT);
d) Recovery request for advance funding (where relevant, using Form No. 04.b/TT).
Regulatory payment bodies shall have the only burden of managing the relevancy and completeness of fund withdrawal and money transfer proofs upon the investor’s request without being obliged to take control of other aspects of the advance funding or payment dossier received from the investor or the investor’s legal representative. Managing agencies and investors shall bear full responsibility to control the submitted dossier and details about fund payment or disbursement to the projects.
The management, disbursement/payment, recovery and final settlement of advance on the outyear’s state budget expenditures, implementation of the reporting regime towards assessment of implementation of plans, receipt and utilization of funds, confirmation of the funding amount in a year, amount of funding accumulated from the project commencement date to end of the state-budgetary year for specific projects, and compliance with regulatory financial policies, shall be the same as those in the state budget-funded investment projects referred to in Section I herein.

Article 16. Fund management and disbursement regulations for state-secret public investment projects in which policies for investment are decided by the Prime Minister; secret or top-secret public investment projects of the Ministry of National Defense and the Ministry of Public Security

Checking the budget allocation:
a) The Ministry of National Defense or the Ministry of Public Security shall provide the chart of annual budget allocations for public investment to state secret-graded public investment projects in which policies for investment are decided by the Prime Minister; secret or top-secret public investment projects, and their steps in allocation of annual budget for public investment, to the Ministry of Finance for its pre-distribution review, as well as send them to their authorized agencies in charge of control and payment of funds (regulatory payment bodies), as a basis for fund disbursement.
b) Within 10 working days of receipt of the complete set of documents required herein, the Ministry of Finance shall scrutinize the distribution of funds of the annual budget for public investment. Where it is established that any allocation is unlawful, the Ministry of Finance shall issue the written request to the Ministry of National Defense or the Ministry of Public Security for any necessary adjustment, and to regulatory payment bodies for temporary suspension of disbursement.

The Ministry of National Defense or the Ministry of Public Security shall instruct investors in projects receiving annual budget allocations which are unlawful to repay the state budget the disbursed funds (if any).

c) Matters relating to the budget distribution, checking of fund distribution and attached documents concerning public investment budget distribution shall be subject to clause 2 of Article 15 herein.
d) Entering and approving detailed budgets for state-secret public investment projects in which policies for investment are decided by the Prime Minister; secret or top-secret public investment projects of the Ministry of National Defense and the Ministry of Public Security, on Tabmis in accordance with regulations on entering and validating data on Tabmis for state-secret public investment projects that are currently in effect.
Disbursing state budget-funded public investments:
a) Depending on the project progress according to the investor’s progress report, regulatory payment bodies send the written request for disbursement of funds to the Ministry of Finance (Form No. 12/CT).
b) The Ministry of Finance checks the legitimacy of the payment request referred to in point a of this clause. If payment conditions are satisfied, the Ministry of Finance shall issue the payment order to the Ministry of National Defense or the Ministry of Public Security for submission to the State Budget.
c) In view of the payment order received from the Ministry of Finance, the State Treasury sets aside state budget funds and transfers these funds to the accounts of the Ministry of National Defense or the Ministry of Public Security opened at the State Treasury. Where the payment order is invalid or illegal, in no more than 01 working day of receipt of the payment order, the State Treasury must notify this situation to the Ministry of Finance to seek its possible action.
d) By end of January 31 in the outyear, the residual funds on the account of the Ministry of National Defense or the Ministry of Public Security must be repaid to the state budget (except where competent authorities allow an extension of the time limit for fund disbursement). The Ministry of National Defense or the Ministry of Public Security shall be accountable for the management and utilization of state budget funds for state secret-graded public investment projects in which policies for investment are decided by the Prime Minister; secret or top-secret public investment projects of the Ministry of National Defense and the Ministry of Public Security.
Advancing and disbursing/settling funds in the budgetary year by investors:
a) Depending on the progress in implementation of the project, investors issue advance funding and disbursement dossiers to regulatory payment bodies for control and disbursement of funds in accordance with this Decree.
b) Regulatory payment bodies proceed to control and disburse funds to respective projects according to the investor’s request dossier.
c) Legal dossiers, advance funding, payment dossiers; regulations on advance disbursement and recovery of advance funding; regulations on payment for completed quantities; time limits for advance funding and disbursement of annual budgets and time limits for control and disbursement of funds shall be subject to Article 9, 10, 11 and 13 herein.
Management, disbursement, recovery and final accounting of advance on stage budget funds in the outyear:
a) Upon receipt of the competent authority’s consent to advance on the outyear’s state budget funds, the Ministry of National Defense or the Ministry of Public Security distributes advance funds authorized by competent authorities according to the permissible investment portfolio and at the allowable levels.
b) The Ministry of National Defense or the Ministry of Public Security sends the distribution chart of advance on the outyear’s state budget funds to the Ministry of Finance and regulatory payment bodies in order for them to proceed to take control and payment actions.
c) The management, recovery and final settlement of advance on the outyear’s state budget funding shall be subject to the regulations as applied to state budget-funded public investments prescribed in Article 12 herein. Checking allocation, transferring money by payment orders, advancing and recovering advance on funds and disbursing advance on the outyear’s state budget funding shall be subject to clause 1, 2 and 3 of this Article.

Article 17. Emergency public investment projects, temporary works

Emergency public investment projects and temporary works shall be subject to legislation on public investment and construction.
Advance funding:
a) Principles for advance funding, guarantee for advance funding, amounts of advance funding and recovery of advance funding shall be subject to regulations of Article 10 herein.
b) Dossier on advance funding for emergency public investment projects:

– Annual public investment plan commissioned by competent authorities;

– Order of or written document stating consent to execution of emergency projects issued by competent authorities;

– Decision on approval of investment project or decision on approval of technical and economic report (for projects subject to the only requirement for preparation of economic-technical report) issued by competent authorities, and decisions on modification of projects (if any);

– Contract (if any) or cost estimate approved by competent authorities for non-contractual jobs (if any). Where it is mandatory to receive funds in advance without any contract or cost estimate, the consent to such advance funding should be obtained from persons having competence in issuing investment decisions;

– Payment request (Form No. 04.a/TT);

– Money transfer proof (Form No. 05/TT);

– Letter of advance payment guarantee (where such guarantee is required as per clause 2 of Article 10 herein).

c) Advance funding dossier for temporary works shall be subject to regulations of clause 2 of Article 9 herein.
Payment for completed quantities:

Payment for completed quantities shall be subject to Article 11 herein. Payment dossier is composed of the followings:

a) Contract;
b) Joint venture or consortium contract (for cases where joint venture or consortium agreements are not prescribed in this type of contract) or written document stating task assignment (in case of self-implementation and non-contractual implementation);
c) Documents prescribed in clause 1 and 3 of Article 9 herein (except those that have been sent in to complete regulatory procedures for advance funding).
The management, advancing, disbursement, recovery and final settlement of advance on the outyear’s state budget funding shall be subject to the regulations laid down in Article 12 herein. In particular, dossiers on advance payment of funds for emergency public investment projects shall be subject to point b of clause 2 of this Article.

Section 3. MANAGEMENT AND DISBURSEMENT OF FUNDS FOR OVERSEAS PUBLIC INVESTMENT PROJECTS FUNDED BY STATE BUDGET

Article 18. Checking of annual budget distribution

Matters relating to fund distribution and checking of distribution of funds for public investment projects in foreign countries that are funded by the state budget shall be subject to Article 8 herein and Form No. 01.nn/PB (for fund distribution) and Form No. 02.nn/PB (for fund distribution adjustment).
The regulatory payment body in charge of overseas public investment projects is the State Treasury.
Managing agencies, financial authorities at all levels and regulatory payment body shall enter and approve the budgets of the state budget for public investment annually on Tabmis according to regulations currently in force.

Article 19. Legal dossier of mandates and projects

The managing agency shall originally send the legal dossier when transacting with the regulatory payment body where transactions occur; on demand; modified or supplemented. Specifically including:

For the pre-investment mandate: Subject to point b of clause 1 of Article 9 herein.
For the project implementation:
a) Regarding construction, reconstruction, renovation and expansion projects: Subject to point c of clause 1 of Article 9 herein.
b) For projects on purchase of houses and land for building of office and apartment buildings, including:

– Annual public investment plan commissioned by competent authorities;

– Decision on approval of the investment project issued by the competent authority, and decisions on project adjustment (if any);

– Agreement in principle on purchase of real property which is used as a basis for payment of deposits (if any);

– Real property sales contract;

– Deposit guarantee certificate (if deposits are required under contracts).

c) Regarding combined projects for purchase of land, houses, construction, reconstruction, renovation and expansion: The required dossier comprises documents stated in point a and b of clause 2 of this Article.
d) For projects on hiring of real property during the long term (above 30 years) for construction purposes:

– Annual public investment plan commissioned by competent authorities;

– Written agreement in principle on rental of real property which is used as a basis for payment of deposits (if any);

– Real property lease contract;

– Deposit guarantee certificate (if deposits are required under contracts);

– Cost estimate and decision on approval of cost estimate of competent authorities with respect to specific jobs, items of work or works in case projects are implemented according to the contractor appointment, self-implementation method, and other jobs that are performed without contracts (except projects that are subject to the only requirement for preparation of economic – technical reports).

Article 20. Advance funding and recovery of advance funding

Advance funding and recovery of advance funding for overseas public investment projects funded by the state budget shall be subject to Article 10 herein.
a) As regards construction contracts executed under the host country’s domestic law, if there is any conflict between foreign law and Vietnam’s law in terms of advance funding, recovery of advance funding and guarantee for advance on the contract sum, the ratified contract must apply.
b) In specific cases where projects of particular nature need an advance disbursement greater than the prescribed maximum limit, the regulatory payment body shall make the advance disbursement upon the managing agency’s request on condition that the amount of such advance disbursement is not greater than the authorized budget available for the project’s use in the year.
c) In specific cases where projects of particular nature need an advance disbursement, if evidencing documents on such advance disbursement are not sufficient as per the regulations of this Decree (under the host country’s law), the managing agency shall send a written request to the Ministry of Finance for its consideration and possible actions.
Advance funding dossier:
a) Written request for advance on investments specific to jobs of the managing agency (specify advance amount, account and beneficiary);
b) Payment request (Form No. 04b.nn/TT).

Article 21. Payment for completed quantities

As for jobs executed through construction contracts, the settlement of contractual obligations must be relevant to contract types, values and contractual terms and conditions. The number of payment intervals, payment phases, points of time, documents and conditions must be clearly prescribed in each contract. Investors shall be responsible for complying with requirements for application of contract prices under applicable regulatory provisions.

As regards construction contracts executed under the host country’s domestic law, if there is any conflict between foreign law and Vietnam’s law, the payment for completed quantities shall be subject to the ratified contract.

When wishing to receive fund disbursements, investors may send managing agencies the following documents (where each disbursement occurs):
a) Regarding construction, reconstruction, renovation and expansion projects: Chart of completed quantities under the contract (Form No. 03.a/TT, or any other form used for determining quantities that is accepted for use in the contract having overseas validity); payment request (Form No. 04a.nn/TT); request form for recovery of advance disbursement (where relevant, using Form No. 04.b/TT); chart of off-contractual quantities that is required where relevant (Form No. 03.c/TT or any other form used for determining quantities that is accepted for use in the contract having overseas validity).
b) Documentation requirements for projects on purchase or rental of real property in the long term (above 30 years): If payment (including payment of deposits, if any) is made under the real property sale and rental contract, investors shall send the managing agencies the written request for fund disbursement (Form No. 04a.nn/TT).
c) Regarding mixed-purpose projects on purchase of land, houses, construction, reconstruction, renovation and expansion: The required dossier comprises the documents stated in point a and b of clause 2 of this Article.
Required disbursement dossier:

Based on the documents that investors submit as per clause 2 of this Article, the managing agency shall prepare payment request documentation for submission to the regulatory payment body, including:

a) Written request for fund disbursement (specify the amount, account and beneficiary) made by the managing agency in reference to specific jobs (Form No. 04b.nn/TT); written request for recovery of advance disbursement (where relevant, using Form No. 04.b/TT).
b) Chart of completed quantities (Form No. 03.a/TT, or any other form used for determining quantities that is accepted for use in the contract having overseas validity); In reference to construction, reconstruction, renovation and expansion projects, the chart of off-contractual quantities that is required where relevant (Form No. 03.c/TT or any other form used for determining quantities that is accepted for use in the contract having overseas validity).
c) Fund withdrawal form (Form No. 05/TT) that is required if the managing agency needs disbursement in Vietnamese dong.
d) Request for withdrawal of funds from the state budget in foreign currency (Form No. 07/TT) that is required if the managing agency needs disbursement in foreign currency.
dd) Other documents evidencing money transfer (if any).
Control and payment activities occurring at the regulatory payment body:

Within 03 working days of receipt of the complete set of request documents from the managing agency as per regulations laid down in Article 19, 20 and 21 herein, based on the authorized budget for projects, the regulatory payment body shall take steps in controlling and disbursing funds for projects. Total advance funding and disbursement for completed quantities in a year shall not be allowed to exceed the budget allocated for projects within the year. For funds disbursed in advance or according to the “pay first, check later” method, the time limit for control and disbursement of these funds shall be within 01 working day of receipt of the complete set of documents required herein.

Disbursement in foreign currencies:

If the investor pays the contractor or the seller or lessor of real property in a foreign currency, the following regulations must be observed:

a) Paying foreign-currency sums funded by the central government-controlled foreign currency fund:

– Based on the annual budget and demands for expenditure in foreign currencies used for funding projects, the managing agency shall prepare the general chart of the annual public investment budget allocations in Vietnamese dong with conversion into US dollars at the exchange rate quoted by the Ministry of Finance at the time of assignment of the plan prepared by the managing agency according to demands for foreign-currency expenditures in a year for projects under its management, total of which does not exceed the annual budget authorized in a year, for submission to the Ministry of Finance and the regulatory payment body (Form No. 01.nn/PB).

– Where foreign-currency disbursement is needed, the managing agency shall send the written request for withdrawal of funds from the state budget in foreign currency (Form No. 07/TT) to the regulatory payment body.

– Vietnamese representative agencies in foreign countries shall be entitled to use the state budget funds that they are allowed to temporarily retain for disbursing authorized budgets when receiving the notification about such entitlement from the Ministry of Foreign Affairs. When wishing to take out foreign-currency money from this fund, they shall issue two copies of the form of fund withdrawal cum recording of the state budget receipt (Form No. 06/TT) to the regulatory payment body.

b) For foreign-currency payments not derived from the central government-controlled foreign currency fund: The managing agency (or the investor) uses the amount that the regulatory payment body disburses in advance or pays for purchase of foreign currencies from banks to pay the beneficiary. The regulatory payment body shall complete advancing and payment procedures to transfer money to the account of the commercial bank that the managing agency contracts to buy foreign currencies.
c) The regulatory payment body provides foreign currencies upon the managing agency’s request. Specifically as follows:

– In case of expenditures derived from the central government-controlled foreign currency fund: Based on the chart of the annual public investment budget allocations in Vietnamese dong with conversion into the US dollar sent by the managing agency at the beginning of each year and the request form for withdrawal of state budget funds in foreign currencies made by the managing agency in accordance with regulations of this Decree, the regulatory payment agency shall withdraw money from the centralized foreign currency fund for disbursement purposes.

– In case of using state budget funds temporarily retained at overseas Vietnamese representative agencies: Based on the chart of annual state budget allocations in Vietnamese dong with conversion into US dollar that the managing agency sends at the beginning of the year and copies of evidencing documents that the Ministry of Foreign Affairs sends in accordance with this Decree, the regulatory payment body shall scrutinize elements; sign on these copies and use the first copy of “Form of fund withdrawal cum recording of the state budget receipt” to record the state budget receipt from “Consular charges or other revenues in foreign countries”; account for the fund disbursement to the Ministry of Foreign Affairs (classified by the appropriate chapter, heading, item and sub-item in the state budget indices currently in force); send the remaining copy to the Ministry of Foreign Affairs for accounting purposes and notify overseas Vietnamese representative agencies of permission to withdraw funds that they are temporarily retaining for use.

Section 4. MANAGEMENT AND DISBURSEMENT/PAYMENT OF PUBLIC INVESTMENT FUNDS FOR PPP PROJECTS

Article 22. Management and utilization of public investment funds for investment preparation; compensation, site clearance, support, residential resettlement; support for construction of temporary works

Management, disbursement and settlement of public investment funds for investment preparation; compensation, site clearance, support, residential resettlement; support for construction of temporary works shall be subject to regulations on management, disbursement, payment, settlement of state budget-funded investments herein.
Expenses for implementation of the pre-investment mandate for PPP projects shall be prescribed in the invitation-for-bid documents as a basis for the selected investor to repay expenses for implementation of the investment preparation mandate as per clause 2 of Article 73 in the Law on Investment in the Public-Private Partnership Mode.
The selected investor shall be obliged to reimburse pre-investment expenses to the state budget in accordance with law on PPP investment and state budget.

Article 23. Fund management and disbursement/payment with respect to portions of funding for public investment in financial support for development of works and infrastructure which is split into a subproject of the PPP project and for payment of compensation for early contract termination to investors or PPP project enterprises

Fund management and payment/disbursement with respect to portions of funding for public investment in financial support for development of works and infrastructure which is split into a subproject of the PPP project as per point a of clause 5 of Article 70 in the Law on Investment in the Public-Private Partnership Mode, and for payment of compensation for early contract termination to investors and PPP project enterprises shall be the same as those with respect to state budget-funded investment projects in accordance with this Decree. In particular, the dossier on control and disbursement/payment of public investment funds shall be subject to clause 3 and 4 of this Article.
The maximum payment for completed quantities in a subproject shall account for 50% of the budget for implementation of the subproject that a PPP project enterprise approves while the remaining payment shall be made after receiving confirmation that the project is completed under law on investment in the PPP mode.
Dossier on disbursement/payment of public investment funds for implementation of subprojects of PPP projects:
a) Agencies signing PPP project contracts send the regulatory payment body (State Treasury) where transactions occur 01 set of legal documents for implementation of the project (only once till the date of termination of the PPP project contract, except where there is any modification or supplement) before or during the time of request for payment/disbursement of portions of public investment funds, including:

– Annual public investment plan commissioned by competent authorities;

– Decision on approval of the PPP project issued by the competent authority, and decisions on PPP project adjustment (if any);

– Decision on approval of investor selection results under law on PPP;

– PPP project contract and appendices to the PPP project contract (if any);

– Decision on approval of investor selection results of the PPP project enterprise under law on PPP;

– Contract between the PPP project enterprise and the contractor; appendices to the contract that are required in case of any change in contractual terms and conditions (if any);

– Written document stating assignment of tasks or intracorporate turnkey contract that is required in case of self-implementation by the investor or the PPP project enterprise;

– Cost estimate and decision on approval of the cost estimate ratified by the PPP project enterprise in accordance with law on PPP that are required if specific jobs, items of work or works of the subproject is autonomously implemented by the investor or the PPP project enterprise, through the contractor appointment, and other jobs that are performed without any contract.

b) Based on the completed quantities successfully tested and payment conditions specified in the PPP project contract, the agency signing the PPP project contract issues and sends the regulatory payment body (State Treasury) where transactions occur 01 set of request documents for disbursement of public investment funds, including:

– Chart of completed quantities in the subproject of the PPP project that are compiled by the PPP project enterprise with certification by the agency signing the PPP project contract as the request for payment/disbursement under the PPP project contract (Form No. 09/PPP);

– Written document confirming completed work of the agency signing the contract that is required under legislation on PPP with respect to the portion of funding of which the request for payment is made after the PPP project enterprise obtains confirmation of completed works;

– Form of request for disbursement of public investment funds for implementation of the subproject of the PPP project (Form No. 10/PPP);

– Money transfer proof (Form No. 05/TT).

Dossier on disbursement of public investment funds for compensation for early contract termination paid to investors or project enterprises:
a) Legal dossier of the project (originally sent when transacting with regulatory payment bodies; on demand; modified or supplemented), including:

– Annual public investment plan commissioned by competent authorities;

– Competent authority’s written document stating decision on payment of expenses for action against early contract termination as per clause 4 of Article 82 in the Government’s Decree No. 35/2021/ND-CP dated March 29, 2021, specifying and providing instructions for implementation of the Law on Investment in the PPP Mode.

b) Payment documents (sent when making each payment request), including:

– Payment request (Form No. 04.a/TT);

– Money transfer proof (Form No. 05/TT).

Section 5. MANAGEMENT AND DISBURSEMENT OF FUNDS DERIVED FROM LEGITIMATE REVENUES RETAINED BY STATE REGULATORY AUTHORITIES AND PUBLIC SERVICE UNITS FOR DEVELOPING PUBLIC INVESTMENT PROJECTS

Article 24. Account opening

For legitimate revenues that state regulatory authorities retain for investment purposes:
a) Investors shall open accounts for fund management and disbursement at the State Treasuries where transactions are facilitated.
b) Signing up for an account for control and payment purposes shall be subject to the Government’s regulatory provisions related to administrative formalities for the state treasury field and those of the Ministry of Finance pertaining to instructions on signing up for and using accounts opened at State Treasuries.
For legitimate revenues that public service units retain for investment purposes, the places where accounts are opened for fund disbursement shall be subject to the Government’s regulations on financial autonomy of public service units. Public service units shall check the disbursement of funds under the regulations of Article 25 herein.

Article 25. Management, checking and disbursement/payment of funds

Legal dossiers, advance funding dossiers, disbursement/payment dossiers of projects shall be subject to Article 9 herein.
Management, advance disbursement, recovery of advance disbursement, and disbursement/payment of funds shall be subject to Article 10 and 11 herein.
Time limits for advancing and disbursement/payment of funds on an annual basis, and time limits for control and disbursement/payment of funds set by the regulatory payment body, shall be subject to the regulations laid down in Article 13 herein.

Chapter III.

FINAL ACCOUNTING

Section 1. FINAL ACCOUNTING OF STATE BUDGET-FUNDED PUBLIC INVESTMENTS IN THE BUDGETARY YEAR (FULL-YEAR/YEAR-END ACCOUNTING)

Article 26. Year-end accounting principles

For the state budget, units and entities related to the disbursement of state budget-funded investment funds shall prepare the budgetary year-end account.
For public investment funds derived from legitimate revenues that regulatory authorities, public service units retain for investing purposes, entities and units involved in disbursement of funds shall make the review report on implementation and payment/disbursement in accordance with regulations of the Ministry of Finance in force.
Reporting agencies shall ensure that data shown in the year-end account must be collated, validated and must match. Specifically as follows:
a) Cooperate in collating and validating data on the amounts of state budget funding for public investment that have already been disbursed in the budgetary between investors and regulatory payment bodies where transactions in such amounts occur when preparing year-end accounts for submission to ministries, central authorities or superiors of investors (where they are authorized to do so), departments, divisions or subdivisions of provincial or district-level People’s Committees under their respective delegated authority.
b) Cooperate in collating and validating data on the amounts of state budget funding for public investment that have already been disbursed in the budgetary between ministries, central authorities, departments, divisions, subdivisions of provincial or district-level People’s Committees under their respective delegated authority and regulatory payment bodies at the same level when preparing year-end accounts for submission to same-level financial authorities.
c) For entities or units using commune-level budgets for public investment, the regulatory payment body shall cooperate with commune-level People’s Committees in collating, reconciling data to ensure that data received from the regulatory payment body and commune-level accountants are consistent. Comparison results shall serve as a basis for commune-level People’s Committees to complete their final accounts of commune-level budgets.
Data included in year-end final accounts must be arranged by specific managing agencies, funding sources, industries, sectors or projects (with details about domestic and foreign funding) that are subject to appropriate budget assignment decisions of competent authorities.
Ministries, central authorities, departments, divisions or subdivisions of provincial or district-level People’s Committees that are appropriately authorized, superiors of investors, investors, all-level financial authorities and regulatory payment bodies shall prepare, send, consider, review, communicate review results of and edit year-end accounts of which contents, principles and time limits for completion are subject to the Law on State Budget currently in force.

Article 27. Cut-off point of time for preparation of full-year accounts

Entities and units involved in implementation of state budget-funded public investment plans shall close their accounting books and prepare final accounts at the end of the budgetary year.
Advance payments shall be accounted for in the budgetary year when meeting disbursement conditions for payment for planned quantities in that year which are carried out and tested till end of December 31 in the budgetary year.
Revision of final accounts of the state budget must be completed by end of January 31 in the outyear.

Article 28. Contents of full-year accounts

State budget-funded public investments in the budgetary year-end accounts shall be classified into the followings:
a) State budget-funded public investments authorized for use in the plan assigned by the competent authority in the budgetary year.
b) State budget-funded public investments getting ready for use in the previous years’ plan of which the fund availability and disbursement period is extended to the accounting year with the competent authority’s consent.
Disabused amounts eligible for year-end accounts, including:
a) Budgeted funds used for paying for completed quantities of projects funded by the state budget allocations for public investment in the budgets assigned in the accounting year (even including those disbursed according to the method of recording of receipts and payments, or in foreign currencies) within the period from January 1 in the accounting year to end of January 31 in the following year.

Where the year’s assigned public investment plan allows for the budget used for recovering the advance budget of the state budget used for funding the project (based on the actual disbursement results), the amount of funding to be accounted for shall be total payment for completed quantities calculated till end of the date of cut-off of data used for preparation of the year-end final accounts, including payment for completed quantities as part of the previously-disbursed advance budget that is brought forward.

b) The budgeted funding for completed quantities of the project funded by the state budget allocations for public investment in the previous-year plan which is subject to the requirements that its availability and payment period is extended to the accounting year; it is disbursed or utilized for the period from February 1 in the accounting year to December 31 in that year.
c) Payment of the prescribed advance disbursements not recovered yet which are brought forward from the previous year to the accounting year for quantities that are completed from February 1 in the budgetary year to end of January 31 in the outyear.
d) Foreign funds included in the year-end final accounts as follows: The amounts of funding eligible for recording of receipts or expenditures for completed quantities (recording of receipts or expenditures that is carried out under the Government’s regulations on management and utilization of official development aid (ODA) and concessional loans from foreign donors); and the amount of funding already used for paying for completed quantities (for foreign funds disbursed according to the domestic financial regime).
Policy-based advance disbursements not recovered yet that are not eligible to become entries of the final accounts. Upon expiry of the deadline for revision of the final accounts, the residual amounts of unrecoverable policy-based advance (after deducting the amounts paid as depreciation in the accounting year (if any) of part of the unrecoverable policy-based advance from the previous years) which are brought forward to the following year for the purposes of management and recovery of advance and accounting for payments for completed quantities. Financial authorities shall not be obliged to carry out the procedures for consideration of fund transfer.
Advance on the outyear’s state budget allocations shall not be required to be included in the year-end final accounts.
Explanatory notes to the year-end final accounts:
a) Ministries, central authorities, departments, divisions, subdivisions of provincial or district-level People’s Committees that are authorized appropriately, superiors of investors (where they are authorized to do so), investors (or project management authorities):

– Make general review reports on implementation of plans, disbursement and final accounting of public investment funds of the state budget authorized in the accounting year.

– Explanations about issues, problems, factors affecting disbursement, payment and accounting of funds, increases/decreases in public investment budgets, recommended solutions.

b) Regulatory payment body:

– Make general reports on features and condition of year-end settlement and accounting as per clause 1 and 2 of this Article.

– Make proposals and requests for dealing with issues and problems related to the year-end final accounting task.

When receiving funds in the form of payment orders or foreign funds disbursed by the entities taking control of foreign funds in the form of domestic financial mechanism, ministries, central authorities, departments, divisions or subdivisions of provincial or district-level People’s Committees that are appropriately authorized, superiors of investors, investors, or all-level regulatory payment bodies, shall record them separately in the year-end final accounts.
The Ministry of Finance shall provide regulations on forms and charts used for the final settlement or accounting of state budget investments in the budgetary year and relevant matters.

Article 29. Steps and deadlines for preparation, approval and submission of full-year final accounts

For state budget investments under the management of Ministries or central authorities:
a) Investors (or project management authorities submit year-end final accounts to ministries, central authorities o superiors of investors (where they are authorized to do so) before May 1 in the outyear.
b) Ministries, central authorities consider approving reports submitted by investors; prepare year-end general final accounts for submission to the Ministry of Finance by August 1 in the outyear.

When being authorized by ministries or central authorities, investors shall submit year-end final accounts to the mandated superiors of investors; the mandated entities shall bear responsibility to consider approving final accounts received from investors and submit the general final accounts for projects under their delegated authority to the ministries or central authorities in order for them to prepare the final one for submission to the Ministry of Finance by August 1 in the outyear.

Where the year-end final accounts of investors are prepared in breach of regulations, ministries, central authorities and superiors of investors (where they are authorized to do so) shall request investors to give explanations, provide necessary data and information, modify or replace the final accounts to seek approval under regulations. Ministries, central authorities or superiors of investors (where they are authorized to do so) shall request investors to pay payables to the state budget under regulations and charge off expenditures in breach of regulatory policies, assigned budgets and take actions under their delegated authority or request competent authorities to deal with them if investors use them in contravention of regulations.

Ministries or central authorities shall check over data used for completing year-end final accounts specific to projects with regulatory payment bodies at the central level before compiling the full-year final accounts for submission to the Ministry of Finance.

c) District-level regulatory payment bodies synthesize data used for completing year-end final accounts for submission to provincial-level regulatory payment bodies by March 15 in the outyear; provincial regulatory payment bodies synthesize data used for completing year-end final accounts for submission to the central regulatory payment body by May 15 in the outyear; the central regulatory payment body synthesizes data used for completing year-end final accounts for submission to the Ministry of Finance by July 15 in the accounting year.
d) Within 30 days of receipt of all documents prescribed herein, the Ministry of Finance reviews and issue the written notification of review of the year-end final accounts of specific Ministries, central authorities and submits these accounts to the central regulatory payment body and other relevant entities or units.
For state budget investments under the management of all-level People’s Committees:
a) Regarding public investment funds of the local budgets under the management of provincial or district-level People’s Committees:

– Investors (or specialized or regional project management authorities) prepare year-end final accounts for submission to departments, divisions or subdivisions of provincial or district-level People’s Committees that are authorized to do so.

– Departments, divisions or subdivisions of provincial or district-level People’s Committees that are given authority to do so consider approving final accounts of investors; compile the year-end final accounts for submission to the same-level financial authorities.

Where the year-end final accounts of investors are prepared in breach of regulations, departments, divisions or subdivisions of provincial or district-level People’s Committees that are authorized to do so request investors to give explanations, provide necessary data and information, correct errors or replace the final accounts to seek their approval under regulations in force. Departments, divisions or subdivisions under the management of the provincial or district-level People’s Committees that are authorized to do so request investors to pay payables to the state budget under regulations and charge off expenditures in breach of regulatory policies, assigned budgets and take actions under their delegated authority or request competent authorities to deal with them if investors use them illegitimately.

– Departments, divisions or subdivisions under the management of the provincial or district-level People’s Committees that are authorized to do so shall check over data used for completing year-end final accounts specific to projects with regulatory payment bodies at the same level before compiling the full-year final accounts for submission to the same-level financial authorities.

– Provincial People’s Committees shall consult the Law on State Budget, regulations of this Decree and other written documents providing guidance on law currently in force to impose regulations concerning the deadlines for submission of the year-end final accounts on investors, departments, divisions or subdivisions under the management of the provincial or district-level People’s Committees, and ensure that the deadlines for final accounting of state budget expenditures are met.

– District-level regulatory payment bodies synthesize data used for completing the year-end final accounts for submission to same-level financial authorities and provincial-level regulatory payment bodies by March 15 in the outyear; provincial regulatory payment bodies synthesize data used for completing the year-end final accounts for submission to the same-level regulatory payment bodies and the central one by May 15 in the outyear.

– Local financial authorities that are given authority to do so review and issue notification of review of the year-end final accounts for submission to specific departments, divisions or subdivisions of the provincial or district-level People’s Committees that are authorized to do so, investors and same-level regulatory payment bodies within 30 days of receipt of full documents required herein; integrate data into the final accounts of local state budget expenditures for submission to the same-level People’s Committees and represent it to the same-level People’s Councils to seek their ratification.

Within 05 working days after receipt of the consent to the final accounts of state budget expenditures in the accounting year from the provincial People’s Councils, provincial People’s Committees submit the final accounts of state budget expenditures to the Ministry of Finance for compiling and reporting purposes in accordance with the Law on State Budget; the Departments of Finance submit the budgetary year-end final accounts of state budget expenditures under the management of local authorities to the Ministry of Finance and the central regulatory payment body to serve the purposes of final accounting of state budget-funded public investments.

b) Regarding public investment funds of the local budgets under the management of commune-level People’s Committees:

In order to match the characteristics of organization and delegation of authority of each local authority, based on the regulations laid down herein, the Departments of Finance solicit the provincial People’s Committees to regulate the procedures and deadlines for preparation, submission, approval, review and issuance of notification of review of year-end final accounts under the Law on State Budget and other instructions documents thereof.

District-level regulatory payment bodies compile the year-end final accounts for submission to the district-level Divisions of Finance and Planning, commune-level People’s Committees (falling within the remit of the commune-level People’s Committees) and provincial regulatory payment bodies by March 15 in the outyear.

Article 30. Activities involved in approval and review of budgetary year-end final accounts

Ministries, central authorities, departments, divisions, subdivisions of provincial or district-level People’s Committees that are authorized appropriately, superiors of investors (where they are authorized to do so):
a) Check the adequacy, relevance to the investment portfolios, budgeted funds and disbursed funds (details about advance and disbursement of funds used for paying for completed quantities) of specific projects in the assigned plans in the accounting year and in the previous years’ plans of which the availability and disbursement period may be extended to the accounting year by the competent authority’s consent.
b) Check and compare the amounts of funding already disbursed (details about advance and disbursement of funds used for paying for completed quantities) with the budgets specific to projects; determine the amounts of funding included in the final accounts of which the availability and disbursement are extended, or which may be eliminated, by competent authorities’ consent.
c) Check the relevance of funding sources, funding structure elements, sectors and industries in which specific projects operate.
d) Comments on utilization and disbursement of funds in the final accounting year, compliance with policies, regulations, other matters or comments (if any).
dd) Request investors to pay payables to the state budget under regulations and charge off expenditures in breach of regulatory policies, assigned budgets and take actions under their delegated authority or request competent authorities to deal with expenditures in violation of policies if investors use them illegitimately.
All-level financial authorities:
a) Check the adequacy and consistency of data regarding total funding, details about the budgets, funding structure, industries, sectors, investment portfolios involved in the year-end final accounts of the managing agencies and general and detailed year-end final accounts of same-level regulatory payment bodies.
b) Check and compare budgeted funds and disbursed funds of specific projects in the year-end final accounts of managing agencies and those of same-level regulatory payment bodies; determine the amounts of funding eligible for permission to extend the availability and disbursement period to the outyear for maintenance of availability of funds, and the amount of funding to be written off.

Where there is any difference in data between year-end final accounts (even including modified, revised or explanatory ones) of entities preparing year-end final accounts and those of regulatory payment bodies, based on contents and data of the year-end final accounts of regulatory payment bodies, financial authorities shall review the final accounts and notify the final accounting.

c) Request the entities using state budget funding within the year to take responsibility to charge off and recover expenditures in breach of regulations, and immediately pay payables to the state budget under the prescribed regulations and policies.
d) Other matters or comments (if any).

Section 2. FINAL ACCOUNTING OF PUBLIC INVESTMENTS IN COMPLETED PROJECTS

Article 31. Public investment funds eligible for final accounting

Investment funds eligible for final accounting refers to all of the legitimate expenses incurred during the investment period in order to bring projects into operation or use. Legitimate expenses are all of costs incurred within a project or the approved cost estimate and the signed contract in compliance with regulatory provisions (for jobs carried out under contracts), even including modification or supplementation approved under regulations and appropriate jurisdiction. Investment expenses eligible for settlement must fall within total investment which is approved or adjusted according to law.

Article 32. Final accounting of public investment funds for component projects, sub-projects, construction works, standalone items of work upon completion

For projects of national significance, category-A projects with multiple component projects, standalone sub-projects (likely to operate independently, put to use or subject to investment phasing) that obtain separate approval decisions on investment projects: Final accounting, review and approval of final accounts in each component project or standalone subproject shall be the same as those in a standalone investment project. Components or subprojects already undergoing the review and approval process according to regulations shall not be subject to the audit of final accounts, repeated review and approval of final accounts.

Ministries, central authorities, state corporations, incorporations or provincial People’s Committees authorized to take charge of main component projects or act as the hubs for projects shall be responsible for reporting on results of approval of on-accounts aggregate amounts of investment funds for projects of national significance or category-A projects upon full completion to the Prime Minister, the Ministry of Finance, the Ministry of Planning and Investment.

For pre-investment mandates:
a) With respect to the pre-investment mandate for which the budget is allowed for as part of expenses of an approved investment project for implementation of the project, the separate accounting for funding for specific pre-investment projects or the joint accounting for funding for that project and others shall be subject to the approval decision issued by the person having competence in approving investment projects.
b) With respect to the pre-investment mandate for which the budget is provided separately, upon completion, the final accounts which are prepared like a standalone project and the general final accounts of the entire project shall be required as per clause 1 of this Article.
c) Where the pre-investment mandate is perpetually ceased or changed with the consequence that investment preparations or arrangements are not used, the final accounts of pre-investment expenses already incurred shall be the same as the final accounts of funding for the projects that are perpetually suspended.
For compensation, support and residential resettlement work:
a) With respect to approved investment policies for projects of national significance or category-A projects, if the compensation, support and residential resettlement work is separated into a standalone project, the final accounting for public investment funds for completed projects and review of the final accounts shall be the same as those in standalone public investment projects.
b) In other cases: Organizations in charge of compensation and site clearance shall be responsible for preparing the final accounts of expenses for compensation, support or residential resettlement for submission to the Presidents of People’s Committees level with the authorities having competence in approving the plans for compensation, support and residential resettlement to seek their consent to the estimates of costs of compensation, support and residential resettlement, and sending the approval decision to investors in construction projects to have them integrated into the upon-completion final accounts of public investment funds for the entire project. Agencies in charge of reviewing final accounts of funding for the entire project shall not be obliged to repeated review of expenses for compensation, support or residential resettlement of which final accounts are approved, except where the persons having competence in issuing decisions on approval of final accounts of investment funds for the entire project request the repeated review of expenses for the completed compensation, support and residential resettlement work of which final accounts are approved.
For construction works or standalone items of work in a public investment project that are completed and put to use: Where necessary to review and approve the final accounts, investors shall report to the persons having competence in issuing approval decisions on investment projects for their consideration and decision. Expenses eligible for final accounting of works or items of work, including construction expenses, equipment expenses, consultancy expenses and others directly related to these works or items of work. After the project is fully completed or perpetually ceased, the investor shall integrate approved expenses of works or items of work into the final accounts of investment funds for the completed project, determine the average distribution rate of expenses for works or items of work in the project, and seek the competent authority’s consent to the final accounts of public investment funds for the completed project.
For the projects with all of component projects, sub-projects, works or items of work and equipment that have been successfully commissioned for use, if compensation, support and residential resettlement component projects, sub-projects or items of work have not yet been completed, investors shall seek consent from the persons having competence in issuing decisions on approval of investment projects to preparation of the final accounts of expenses already incurred from implementation of the projects in order to allow the agencies in charge of review of the final accounts to review the final accounts. Expenses for component projects or sub-projects or items of compensation, support or residential resettlement work are legitimate ones already incurred. Where component projects or sub-projects or items of compensation, support and residential resettlement work need further supplements, investors shall prepare the dossier on supplementation of the final accounts and send it to agencies in charge of review of the final accounts to review it before grant of approval of the supplemented final accounts.

Article 33. Final accounting of public investments in completed projects

The final accounts should provide full and accurate information as follows:
a) Breakdown of investment funds.
b) Total investment fund eligible for final accounting for funding for projects upon completion.
c) Expenses incurred from investment losses.
d) Expenses that may not be charged into value of assets.
dd) Value of post-investment assets.
The Ministry of Finance shall issue forms and charts used for final accounting of public investment funds for projects upon completion and provide instructions about relevant matters.

Article 34. Documentation requirements for pre-approval review of final accounts of public investment funds for projects upon completion

Investors shall send 01 set of documents to persons having competence in issuing approval decisions for final accounts and 01 set of documents to agencies in charge of reviewing final accounts of public investment funds for projects upon completion. Where the person having competence in issuing approval decisions for final accounts are the head of the agency in charge of pre-approval review of final accounts, only one set of documents shall be sent to the agency in charge of reviewing the final accounts. Each set should contain the following documents:

For public investment projects, completed items of work or perpetually-suspended public investment projects including construction or equipment installation quantities:
a) Letter of transmittal stating the final accounts of public investment funds for the completed project of the investor (primary copy). Where an independent auditor conducts an audit, the letter of transmittal should clearly state agreement, disagreement and reasons for such disagreement between the investor and the independent auditor. Where inspection and control bodies, State Audit or regulatory or law enforcement authorities have already inspected, taken control of, audited or investigated projects in question, the letter of transmittal must clearly state the compliance with recommendations and conclusions of superiors.
b) Final accounting forms and charts prescribed in clause 2 of Article 33 herein (primary copy).
c) Relevant legal documents (primary copies or certified true copies of the investor).
d) Final accounting dossier for each contract, including documents (primary copies or certified true copies of the investor): Contract and appendices (if any); reports on acceptance testing of completed quantities relative to payment stages; report on acceptance testing of completed quantities in the entire contract; calculation chart of contract value eligible to be included in the final accounting relationship between the investor and the contractor (A – B final accounts); contract termination report that is required if contract termination conditions are met under law on contracts; other documents agreed upon in the contract that is related to the subjects of review and ratification of the final accounts of investment funds for completed projects.
dd) Report on acceptance testing and commissioning of works or standalone items of work that have already been completed for use (primary copy).
e) Audit report of the independent auditor that is required when hiring the independent auditor (primary copy).
g) Audit report or notification of audit results (hereinafter referred to as audit report), inspection conclusion, inspection report, checking report, and decision on handling of violations of the State Audit, inspection or control bodies, that are required if they conduct the inspection, checking or audit of the project; investigation results of regulatory or law enforcement authorities that are required if the project is involved in any violation against law with the consequence that the regulatory and law enforcement authority’s investigation is needed. The investor’s report, enclosing relevant documents on compliance with instructions of the aforesaid agencies, shall be required.
For the planning or pre-investment mandate funded by public investment funds, public investment projects perpetually suspended without any construction or equipment installation quantities:
a) Request form for approval of the final accounts of the investor (primary copy).
b) Final accounting forms and charts prescribed in clause 2 of Article 33 herein (primary copy).
c) Relevant legal documents (primary copies or certified true copies of the investor).
d) Final accounting dossier for each contract, including documents (primary copies or certified true copies of the investor): Contract, report on acceptance testing of completed quantities relative to payment stages (except where construction or equipment installation quantities have not existed yet); written document stating approval of modification, supplementation, increase/decrease, change (if any); report on acceptance testing of completed quantities compared to those stated in the contract (if any); calculation chart of contract value eligible for final accounting (if any); contract termination report that is required if contract termination conditions are met under law on contracts.
dd) Audit report of the independent auditor that is required when hiring the independent auditor (primary copy).
Investors shall be responsible for presenting other relevant documents necessary for review of the final accounts at the written request of agencies in charge of review of the final accounts.
Investors may send electronic documents in place of paper ones. Electronic documents must comply with regulatory provisions on archival work.

Article 35. Approving authority; agencies in charge of review of final accounts of public investment funds for projects upon completion

Authority to approve the final accounts of public investment funds for projects upon completion:
a) For projects of national significance and other important projects subject to the Prime Minister’s investment decisions:

In reference to projects or component projects, standalone sub-projects funded by the state budget, leadership of ministries, central authorities, state corporations, incorporations shall be accorded authority to approve the final accounts of funding for projects or component projects or standalone sub-projects entrusted to ministries, central authorities, state corporations or incorporations; the Presidents of provincial People’s Committees shall be accorded authority to approve the upon-completion final accounts of projects or component projects, standalone sub-projects under their jurisdiction; the Presidents of district-level People’s Committees shall be accorded authority to approve the upon-completion final accounts of projects or component projects, standalone sub-projects under their jurisdiction.

In reference to component projects, standalone sub-projects that are not funded by the state budget: Investors shall be accorded authority to approve the final accounts of funding for projects upon completion.

b) For other projects: Persons having competence in making approval decisions for investment projects are persons having competence in approving the final accounts of funding for projects upon completion or authorizing approval of the final accounts of funding for projects upon completion.
Agencies in charge of reviewing the final accounts for public investment funds for projects upon completion:
a) Regarding projects funded by public investment funds of the local budgets under the management of the provincial People’s Committees: Departments of Finance shall be in charge of conducting review (unless otherwise decided by the Presidents of the provincial People’s Committees).
b) Regarding projects funded by public investment funds of the local budgets under the management of the district-level People’s Committees: Departments of Finance and Planning shall be in charge of conducting review (unless otherwise decided by the Presidents of the district-level People’s Committees).
c) Regarding projects funded by public investment funds of the local budgets under the management of the commune-level People’s Committees: Commune-level People’s Committees shall employ public professionals under their jurisdiction to review the upon-completion final accounts of projects. Where public professionals are not qualified for such review, the Presidents of commune-level People’s Committees shall request the Divisions of Finance and Planning at the district level in writing to review the final accounts.
d) For other projects: Persons having competence in approving the final accounts shall assign competent units under their jurisdiction to take charge of the pre-approval review of the final accounts.
Audit of the final accounts:
a) Once projects of national significance or category-A projects funded by public investment funds are completed, the final accounts must be audited before being submitted to authorities having competence in reviewing and approving the final accounts (except those on the list of state secret projects). For the remaining publicly-funded projects, persons having competence in issuing approval decisions on investment in projects shall consider deciding to hire the independent audit contractor to audit the final accounts.

Investors shall seek tenders for audit services in accordance with law on procurement and sign audit contracts in accordance with law on contracts.

Investors, independent audit contractors and concerned units shall comply with regulations laid down in point b and c of this clause.

b) Independent auditors must be independent audit enterprises that are established and operated under law on establishment and operation of enterprises in Vietnam, comply with regulatory provisions on independent audit and audit standards currently in force.
c) For projects audited or inspected by the State Audit or inspectorate:

Where the State Audit or inspectorate conducts audit, inspection and issues audit reports and inspection conclusions containing all subject matters prescribed in Article 37 herein, the agency in charge of reviewing the final accounts of the project shall use data of audit reports of the State Audit, audit conclusions of the inspectorate as a basis for review; shall not be obliged to hire the independent auditor to conduct audits.

Where the State Audit or the inspectorate has yet to perform all audit or inspection steps required under Article 37 herein, based on the regulations laid down in point a of clause 3 of this Article, investors shall determine the supplemented contents and scope of audit and select the independent audit contractors to conduct supplementary audits where necessary. Expenses for supplementary audit shall be determined in the same manner as expenses for hiring independent auditor stipulated in Article 46 herein. Agencies in charge of review of the final accounts can use audit reports of the State Audit or conclusions of the inspectorate and audit reports of the independent auditor as a basis for review of the final accounts.

Where the State Audit or the inspectorate has the project audit or inspection decision during the period of the independent audit contractor’s implementation of the audit contract, the independent audit contractor shall execute the audit contract in compliance with contractual terms and conditions.

Article 36. Review of final accounts of public investment funds for projects, component projects, sub-projects, works or items of work already undergoing audit or inspection

Where the independent contractor performs the task of auditing the final accounts, the agency in charge of review of the final accounts shall perform the following review tasks:
a) Check the legitimacy of the independent audit contract, scope of audit, period of time and mode of audit of the project.
b) Compare audit report data with audit data in accordance with regulations and audit standards currently in force. Where audit results have errors; fail to meet prescribed requirements; fail to include the prescribed information, the agency in charge of reviewing the final accounts shall notify the investor so that the investor requests the independent audit contractor to conduct another audit or supplementary audit.
c) Check compliance with regulations of relevant law, legal bases that the auditor uses for audit the project.
d) Consider audit recommendations about actions to be taken in case of any conflict between the investor’s final accounting data and audit results of the independent audit contractor.
dd) Check whether the investor and related units duly implement the conclusions of inspection agencies, the State Audit or investigation results of regulatory authorities after the project inspection and investigation are carried out by the inspectorate, the State Audit or investigation agency. Where necessary, the agency in charge of reviewing the final accounts shall advise the person having competence in approving the final accounts to consult with the related authority in writing to reach agreement about solutions to such situation before submission of these solutions to seek decision from the person having competence in approving the final accounts.
Where the State Audit or the inspectorate draws conclusions about all of the matters specified in Article 37 herein:
a) Compare the contents of the audit report of the State Audit or the conclusions of the inspectorate with those of the investor’s audit report to determine the compliance of the investor and other relevant units with law; data on the amounts requested to be finally accounted for that are given by the investor with the audit or inspection results before such comparison is used as a basis for the competent person’s consideration of approval of the final accounts.
b) Check whether the investor and related units duly implement the conclusions of inspection agencies, the State Audit; investigation results of regulatory authorities after the project inspection and investigation are carried out by the inspectorate, the State Audit or the investigation agency. Where necessary, the agency in charge of reviewing the final accounts shall advise the person having competence in approving the final accounts to consult with the related authority in writing to reach agreement about solutions to such situation before submission of these solutions to seek decision from the person having competence in approving the final accounts.

Article 37. Review of final accounts of public investment funds for projects, component projects, sub-projects, works or items of work not undergoing audit or inspection

Agencies in charge of reviewing the final accounts shall carry out the review as provided in Article 38, 39, 40, 41, 42 and 43 herein and prepare reports on results of review of the final accounts of completed projects, containing the followings:

Legal dossier.
Project investment funding.
Investment expenses.
Investment expenses that may not be charged into assets.
Post-investment assets (details about them are arranged by the portfolio, quantity, scale, capacity or base price of each asset).
Liabilities and inventory items.
Compliance of the investor and other related units with investigation conclusions and results of inspection of regulatory or law enforcement authorities and other agencies (if any).
Comments, judgments, recommendations:
a) Given comments or judgments on compliance with regulatory provisions regarding management of public investments, construction and bidding; management and utilization of public investment funds; management of investment expenses, management of investment assets of investors; responsibilities of specific regulatory authorities for management of investment funds for projects.
b) Determine the amounts requested for final accounting of investment funds for completed projects and actions against related issues.

Article 38. Review of legal dossiers

Based on relevant reports or legal documents available in a project, related regulatory provisions shall be consulted to give comments on:

Procedures for composing and approving documents; authority to approve documents.
Compliance with public investment procedures that is provided in law on public investment and construction.
Compliance with tendering procedures for bid packages in accordance with law on procurement.
Compliance with law on contracts that is required during the process of conclusion of contracts between investors and contractors.

Article 39. Review of investment funds for projects

Compare the structure of disbursed public investment funds with the structure of funds determined in the approved total investment.
Compare data on annually disbursed funds of investors and those of regulatory payment bodies.
Check any increase or decrease in public investment funds of the projects obtaining the competent authority’s consent.
Comments and judgments about compliance with regulations on management, disbursement and final accounting of financial obligations of publicly-funded projects; management and utilization of types of public investment funds of projects.

Article 40. Review of investment expenses

Principles:
a) Review the compliance with regulations on contracts and decisions on approval of contractor selection results of competent authorities; types of contracts (irrespective of contractor selection forms). Check data on expenses and items that investors integrate into the final accounts. Where necessary, agencies in charge of reviewing the final accounts shall check as-built dossiers in order to calculate successfully-tested completed quantities in accordance with regulations.
b) For expenses for construction of temporary or auxiliary facilities needed for project development activities, and expenses for construction of temporary housing and administrative offices on site of which items have separate designs and cost estimates: The review process is the same as the process for review of independent construction bids.
c) For expenses for construction of temporary or auxiliary facilities needed for project development activities, and expenses for construction of temporary housing and administrative offices on site of which the percent ratio (%) to total expenses for implementation of the main construction bid (without separate designs or cost estimates) is calculated: Review the application of the percent ratio (%) according to the results of review of the main construction bid.
c) For expenses for construction of temporary or auxiliary facilities needed for project development activities, and expenses for construction of temporary housing and administrative offices on site which is calculated on the lump-sum basis, the review thereof shall be the same as that of the construction bid carried out in the form of turnkey contracts.
Review of compensation, support and residential resettlement expenses:
a) For compensation, support and residential resettlement expenses incurred by investors or organizations in charge of compensation and site clearance tasks: Reconcile the amounts payable upon the investor’s request with the estimate of costs in the plan for compensation, support and residential resettlement, and the estimate of administrative costs of compensation, support and residential resettlement that are approved by competent authorities; in the list of payments to entities and persons receiving compensation that is signed in accordance with regulations, as a basis to determine total value to be finally accounted for. Review of the administrative expenses for compensation, support and residential resettlement work undertaken by the organization in charge of compensation shall be subject to current regulations on preparation of cost estimates, utilization and settlement of administrative expenses for compensation, support and residential resettlement in case of the state land expropriation.
b) For value of technical infrastructure obtaining decisions on approval of fund settlement from competent persons: Based on the decision on approval of fund settlement issued by competent persons, the payment request form submitted by investors in technical infrastructure, and payment proof, the amount of expenses for the completed parts of technical infrastructure shall be determined.
Review of construction expenses:
a) For the contracts that the investors execute by themselves:

Where investors sign contracts with dependent accounting units for execution of these bids, the review of these bids shall be based on the contractual price form and carried out under regulations laid down in points b, c, d, dd and e of this clause.

Where the investor signs an agreement to assign tasks to a unit affiliated to the investor for execution of the bid, the review shall be carried out as follows:

– Compare items and quantities shown in the calculation chart of amounts to be settled upon the investor’s request with those shown in the report on acceptance testing of quantities in order to determine the successfully-tested completed quantities in accordance with law on construction.

– Check the consistency between the unit prices used in the calculation chart of amounts to be settled upon the investor’s request and those used in the approved final accounts.

– The amount to be settled shall be calculated by multiplying the successfully-tested completed quantities as prescribed by (x) the reviewed unit prices.

b) For the turnkey contracts:

Compare the items and quantities of work performed in the calculation chart of amounts to be settled upon request of the investor and the contractor (hereinafter referred to as A – B final accounting) with those shown in the report on acceptance testing of completed quantities according to contractual requirements in order to determine the successfully-tested completed quantities under regulations in force.

Compare the unit prices shown in the calculation chart of amounts eligible for A-B final accounting with those shown in the calculation chart of contractual value. Where the contractor fully conform to requirements, perform jobs according to the completed quantities and unit prices specified in the contract or the calculation chart of contractual value, the amount eligible for final accounting is exactly the price of the entire turnkey contract; there is no need to re-compute the detailed quantities and unit prices already approved by competent authorities according to the contract awarding decision.

c) For the fixed-price contracts:

– Compare the items and quantities of work performed in the calculation chart of amounts requested for A-B final accounting with those shown in the report on acceptance testing of completed quantities according to contractual requirements in order to determine the successfully-tested completed quantities under regulations in force.

– Compare the unit prices shown in the calculation chart of amounts requested for A-B final accounting with those shown in the calculation chart of contractual value and documents attached to the contract.

– The amount eligible for final accounting is calculated by multiplying the completed quantities successfully tested in accordance with regulations by (x) the fixed unit price specified in the contract.

d) For adjustable-price contracts:

– Based on the contract, clarify the scope and forms of adjustment to the contract.

– The amount eligible for final accounting is calculated by multiplying the completed quantities successfully tested in accordance with regulations by (x) the unit price used in the final accounting process.

Where there is any adjustment to the quantities, it is mandatory to consult the report on acceptance testing of completed quantities to determine the completed quantities successful tested in accordance with regulations.

In case of adjustment to the unit price, it is obligatory to conform to the principles of adjustment to the unit price that are specified in the contract in order to determine the unit price used for final accounting.

Where there is any adjustment to regulatory policies, it is mandatory to consult contractual terms and conditions and policies applied in line with the contract execution period (already specified in the contract) to determine the adjusted value. There is no need to make any adjustment when the execution period is extended to be greater than the period agreed upon in the signed contract through the contractor’s fault.

dd) For the mixed price-based contracts:

In this type of contract, it is mandatory to clearly point out the scope of activities involved in the work, item of work, or list out work corresponding to specific types of contracts like turnkey, fixed-price or adjustable price-based contracts. The partial review of the contract or the review corresponding to specific types of contract shall be subject to point b, c or d of this clause, respectively.

e) Where expenses are further incurred, in order to carry out the review, it is mandatory to consult regulations regarding adjustments to specific types of contract and regulations of relevant law.
Review of equipment expenses:
a) For the bids executed by investors themselves that are prescribed in law on procurement:

Where investors sign the contract with dependent accounting units to execute the bid: The review of the contract shall be based on the contractual price and carried out under regulations of points b, c, d, dd and e of this clause.

Where the investor signs an agreement to assign tasks to a unit affiliated to the investor for execution of the bid, the review shall be carried out as follows:

– Compare the list, categories, origin, quality, configuration and prices of equipment for which expenses are eligible for final accounting with those shown in the report on acceptance testing or the approved estimate of costs of equipment in order to determine the final expenses for purchase of equipment.

– Review expenses for processing and installation of equipment with respect to equipment that need to be processed or installed according to the approved cost estimate and are tested in accordance with regulations. The final amount shall be calculated by multiplying the successfully-tested completed quantities as prescribed by (x) the reviewed unit price.

– Review other associated expenses: Expenses for transporting equipment to the doorstep of the construction site, expenses for warehousing, storage and maintenance of equipment and other expenses.

b) For the turnkey contracts: Compare the list, categories, origin, quality, configuration and prices of equipment shown in the calculation chart of amounts requested for A-B final accounting with those shown in the contract, the calculation chart of contract value and reports on acceptance testing of completed quantities of the contract. Where the contractor fully conforms to requirements, perform jobs according to the required quantities and the quantities specified in the contract, then the amount eligible for final accounting is exactly the price of the entire turnkey contract already in effect. There is no need to re-compute the detailed unit price approved by competent authorities in accordance with the contract-awarding decision.
c) For the fixed-price contracts:

– Compare the list, categories, origin, quality and configuration of equipment shown in the calculation chart of amounts requested for A-B final accounting with those shown in the contract and the calculation chart of contract value; and those shown in documents attached to the contract with those the report on acceptance testing of completed quantities and contractual requirements in order to determine the completed quantities successfully tested in accordance with regulations.

– Compare the unit prices shown in the calculation chart of amounts eligible for A-B final accounting with the fixed unit prices shown in the calculation chart of contractual value.

– The final amount shall be calculated by multiplying the successfully-tested completed quantities as prescribed by (x) the fixed unit prices already undergoing the review.

d) For the adjustable-price contracts:

Based on specific contractual conditions, clarify the scope and forms of adjustment to the contract.

Where there is any adjustment to the quantities, it is mandatory to consult the report on acceptance testing of quantities to determine the completed quantities successful tested in accordance with regulations.

Where there is any adjustment to regulatory policies, it is mandatory to consult contractual rules and policies applied during the contract execution period to determine the adjusted value.

dd) For the bids executed in the form of mixed price-based contract, it is necessary to clearly point out the scope of work or items of work corresponding to specific types of contracts like turnkey, fixed-price or adjustable price-based contracts. The partial review of the contract or the review corresponding to specific types of contract shall be subject to point b, c or d of clause 4 of this Article, respectively.
e) Where expenses are further incurred, in order to carry out the review, it is mandatory to consult regulations regarding adjustments to specific types of contract.
Review of project management expenses:
a) Comply with regulations of the Ministry of Finance on management and utilization of revenues from construction consultancy and project management activities of investors in and authorities in charge of publicly-funded projects.
b) Managing assets of investors and project management authorities upon completion shall be subject to regulations of the Law on Management and Use of Public Assets and other instructional documents thereof.
Review of construction consultancy and other expenses:
a) For consultancy and other expenses calculated in percentage, check regulatory requirements imposed on using the percent norms for determining amounts of expenses corresponding to specific types of work.
b) For consultancy and other expenses calculated according to the detailed cost estimate, compare amounts requested for final accounting with those specified in the approved cost estimate in order to assess the degree of rationality and legitimacy of these expenses.
c) For consultancy and non-consultancy expenses incurred under the time-based contract, compare the unit price of remuneration paid in a time-based manner by mutual agreement between the investor and the contractor in the contract with the actual time length (in months, weeks, days, hours) for determining the amount of remuneration payable to the contractor. For travel, survey, office lease and other expenses, it is mandatory to consult regulations on payment methods set out in the contract to conduct the review (based on legitimate invoices, evidencing documents or according to the full-package price agreed upon in the contract).
d) For consultancy or non-consultancy expenses under the turnkey, fixed price-based, adjustable price-based or mixed price-based contract: The review shall be carried out according to regulations on review of construction expenses with respect to the bids executed under the turnkey, fixed price-based, adjustable price-based or mixed price-based contract as provided in clause 3 of this Article.

Article 41. Review of investment expenses not charged into asset value

Reviewing costs of damage due to force majeure causes that cannot be charged into asset value according to the following regulations:
a) Determine damage costs according to the relevant regulatory principles and procedures.
b) Damage value stated in the damage report must be checked, validated by, and treated upon recommendation of, the investor, the winning contractor, the supervision consultant and the insurance contractor.
Reviewing expenses that do not give rise to assets to seek the competent authority’s consent to exempting them from being charged into asset value, including costs of training, strengthening and building of capacity of the management agency or community; costs of payments to project management authorities that are not directly related to assets formed and handed over in localities; investment costs subject to losses due to subjective reasons, such as investment volume canceled under decisions of competent authorities; costs already incurred without any damage that occurs, giving rise to products that are not used for the project though like completed survey or design results reaching good quality standards that are not used because of the investor’s design changes; costs of in-progress construction (when the project ceases to be implemented permanently) that do not form any asset; expenses for repair and mitigation of consequences of natural disasters that are not accounted for as an increase in asset value in accordance with law on accounting and asset management.

Article 42. Value of assets formed by investments

Determining the quantity and value of post-investment assets of the project, work or standalone item of work, including long-term assets (fixed assets) and short-term assets.
Sharing project management, consulting and other expenses of all projects between fixed assets shall conform to the following principles: If any cost is directly related to a fixed asset, it shall be charged into the value of that asset; if the general cost is related to multiple fixed assets, it shall be distributed on a pro rata basis between the direct costs of each fixed asset and total amount of direct costs of all fixed assets.
The list and value of assets transferred to the transferees must be fully determined.

Article 43. Review of liabilities, input materials or equipment on backlog

Reviewing liabilities:
a) Based on the results of review of investment expenses and amounts that the investor pays to the contractor, clearly determine specific receivables and payables by debtors/creditors.
b) Consider recommended plans to managing receipts payable to the state budget that have not yet been paid into the state budget, deposit or cash balances in stock to recommend actions to be taken.
Inspecting value of input materials and equipment on backlog:
a) Check value of input materials and equipment on backlog on accounting books and compare it with data obtained from the actual stocktaking process.
b) Consider and recommend plans to dispose of these items of the investor.
c) Based on the stocktaking report, accounting book and asset revaluation record (where the revaluation is needed) available till the day of preparation of the final accounts for public investments in the completed project, determine the quantity and cost prices of assets, depreciated (amortized) value and residual value of fixed assets before transferring them to the transferees for use or disposing of them in accordance with regulations if the project is managed by the investor or project management authority in charge of a project.

Article 44. Review of final settlement of public investments in planning, investment preparation projects; perpetually terminated projects without any construction or installation quantities that are successfully tested

Reviewing legal dossiers.
Reviewing realized investment funds.
Reviewing realized investment expenses shown in the breakdown chart of expenses in comparison with those shown in the approved cost estimate, regulatory policies, norms or benchmarks. Where the expenses are recognized in conformity with the contract, the review process shall be subject to clause 3 and 6 of Article 40 herein.
Reviewing loans or debts of the project.
Reviewing expenses that do not give rise to any asset before sending review results to competent authorities to seek their consent to not charging them into asset value.
Reviewing the quantity and value of assets formed after completing the investment process (if any).
Inspecting compliance of the investor and related units with conclusions and recommendations of the inspectorate and the State Audit (if any).
Giving comments, judgements and recommendations.

Article 45. Application requirements for consent to final settlement of public investment funds for projects upon completion

Agencies in charge of reviewing the final settlement shall prepare application documents for approval of the final settlement of investment funds for completed projects in order to seek the competent person’s assent to the final accounts after completion of the review process. Each application package shall include the followings:
a) Review report.
b) Draft decision on approval of final settlement (applicable to projects, component projects, standalone sub-projects, works and items of work).
c) Other documents requested by the person having competence in approving the final accounting.
Report on results of review of final accounting or settlement of completed projects should contain the following main information:
a) Give the general description of the entire project and issues on which decisions are made by the competent authority during the project execution period.
b) Summarize the results of the review conducted according to the steps prescribed herein.
c) Suggest the amounts eligible to obtain approval of the final settlement of investment funds for completed projects.
d) Recommend actions or measures to be taken against issues related to investment funds, assets and loans or debts after the final accounting or settlement of investment funds for completed projects.
Decision to approve the final settlement of public investment funds for projects upon completion shall be delivered to agencies or units: Investors; asset transferees; superiors of investors; regulatory payment bodies (or agencies authorized to control and disburse funds for state-secret public investment projects in which decisions on investment are issued by the Prime Minister; top-secret public investment projects; ultimate-secret public investment projects of the Ministry of National Defense and the Ministry of Public Security); persons having competence in deciding approval of investment; agencies in charge of reviewing the final accounting or settlement of investment funds for completed projects; and to the Prime Minister, the Ministry of Finance, the Ministry of Planning and Investment (applicable to projects of national significance and other key projects obtaining decisions on investment from the Prime Minister, and category-A projects funded by public investment funds).

Article 46. Expenses for independent audit, review and approval of final accounting or settlement

Expenses for independent audit, review and approval of final accounting or settlement refer to costs included in the approved (or adjusted) total investment in projects; amounts eligible for final settlement of public investment funds for completed projects.

Expenses for independent audit, review and approval of final accounting or settlement:
a) Where the project, component project, sub-project, work or standalone item of work has its value falling within the value range specified in point b and c of clause 1 of this Article, the percent limit on independent consultancy expenses and expenses for review and approval of final accounting or settlement shall be calculated according to the following formula:

Ki = Kb –	(Kb – Ka) x (Gi – Gb)
	Ga – Gb

Where:

– Ki: The percent limit of expenses in proportion to value of the project, component project, sub-project, work or standalone item of work under discussion.

– Ka: The upper limit in percent of expenses in proportion to value of the project, component project, sub-project, work or standalone item of work.

– Kb: The lower limit in percent of expenses in proportion to value of the project, component project, sub-project, work or standalone item of work.

– Gi: Value of the project, component project, sub-project, work or standalone item of work under discussion (in billion dong).

– Ga: The upper-limit value of the project, component project, sub-project, work or standalone item of work (in billion dong).

– Gb: The lower-limit value of the project, component project, sub-project, work or standalone item of work (in billion dong).

b) Independent audit expenses:

Value of the project, component project, sub-project, work or standalone item of work to be audited by hired auditors (in billion dong).	≤ 5	10	50	100	500	1,000	≥ 10,000
Limit of independent audit expenses (%)	0.96	0.645	0.45	0.345	0.195	0.129	0.069

Expenses (estimated costs or costs of the bid) for independent audit of the project, component project, sub-project, work or standalone item of work are the maximum expenses calculated by multiplying the value of the project, component project, sub-project, work or standalone item of work to be audited by hired auditors by (x) the limit in percent which is determined according to point a of clause 1 of this Article to find the product, plus value-added tax. Minimum amount of independent audit expenses is one million dong, plus VAT.

c) Final accounts review and approval expenses:

Value to be finally accounted for upon the investor’s approval request of the project, component project, sub-project, work or standalone item of work (in billion dong)	≤ 5	10	50	100	500	1,000	≥ 10,000
Limit in percent of Final accounts review and approval expenses	0.57	0.39	0.285	0.225	0.135	0.09	0.048

Expenses for review and approval of the final accounting or settlement of the project, component project, sub-project, work or standalone item of work are the maximum expenses calculated by multiplying the value to be finally accounted for upon the investor’s approval request of the project, component project, sub-project, work or standalone item of work upon completion by (x) the limit in percent which is determined according to point a of clause 1 of this Article. Amount of final accounts review and approval expenses is five hundred thousand Vietnamese dong.

d) If equipment expenses account for more than or equal to 50% of total value to be audited by hired auditors or value eligible for final settlement upon the investor’s request, expenses for independent audit, review and approval of final accounts account for 70% of the amount calculated according to point a, b or c of clause 1 of this Article.
dd) With respect to the independent audit, review and approval of the final settlement of compensation, support and residential resettlement expenses, the limit on expenses for independent audit, review and approval of the final settlement of such compensation, support and residential resettlement expenses is equal to 50% of the amount calculated according to point a, b or c of clause 1 of this Article.
e) With respect to the project, component project, sub-project, work or standalone item of work which is subject to the independent audit contractor’s audit of its final accounts; the audit or inspection of the State Audit or the inspectorate that fully meets the regulations laid down in Article 37 herein, expenses for review and approval of the final settlement are equal to 50% of the amount calculated according to clause 1 of this Article.
Management and utilization of final accounts review and approval expenses:
a) In light of the regulations laid down in clause 1 of this Article and application dossier for review and approval of the final settlement submitted by the investor, the agency in charge of review of the final settlement shall clearly determine expenses for review and approval of the final settlement, therefrom requesting the investor in writing to pay expenses for review and approval of the final settlement.

For the project funded by the ending year’s budget, if the investor is on the way to submitting the final settlement dossier prescribed in Article 47 herein, the agency in charge of reviewing the final settlement shall have a look at expenses for review and approval of the approved or adjusted final accounts of the project or the cost estimate (if any) in order to request the investor to pay expenses for review and approval of the final accounts. After consulting the regulations laid down in clause 1 of this Article and application dossier for review and approval of the final settlement submitted by the investor, the agency in charge of review of the final settlement shall clearly determine expenses for review and approval of the final settlement. If the amount that the investor has paid is greater than expenses for review and approval of the final settlement that the agency is paid in accordance with regulations, the agency shall refund the investor the excess to reduce the value of final settlement in the project.

The investor shall request the regulatory payment body (State Treasury) to pay the agency in charge of review of the final accounts according to the written request of the agency in charge of reviewing the final accounts and pay expenses for pre-approval review of the final accounts which are calculated according to clause 1 of this Article.

b) Final accounts review and approval expenses are categorized into the followings:

– Direct expenditures on final accounts review and approval.

– Remuneration paid to professionals or consulting organizations conducting final settlement in case where the agency in charge of reviewing the final settlement signs the time-based contract with professionals or hire consulting organizations.

– Expenses for business travel, stationery, translation, printing, conferences, seminars, procurement of computers or equipment for verification and approval of the final settlement.

– Other expenditures associated with final accounts review and approval.

c) Based on final accounts review and approval expenses and classification of these expenses prescribed in point b of clause 2 of this Article, the agency in charge of reviewing final settlement shall formulate expenditure regulations for final accounts review and approval for submission to the head of its immediate superior for their consideration of grant of approval decision so that they are implemented annually till the date on which they are modified or supplemented (if any).
d) Revenues generated from final accounts review and approval shall not be retained for contribution to the wage reform fund; shall not be recorded and finally accounted for jointly with the annual administrative budget of the agency in charge of reviewing and approving the final settlement. Final accounts review and approval budget that is not used up in a year may be brought forward to the next year for use.

Based on revenues and classification of expenses prescribed in clause 2 of this Article, the agency in charge of reviewing the final settlement shall complete the money transfer form (Form No. 05/TT) to request payment of final accounts review and approval expenses according to types of expenses specified in point b of clause 2 of this Article (where there are multiple expenses, the budget unit specifies them on the payment chart clarifying types of expenses that bears signature and stamp of the agency in charge of reviewing the final settlement) and submit the complete chart to the regulatory payment body (State Treasury) as a basis for payment. The agency in charge of reviewing the final settlement shall not be required to send proofs of payment, contracts or invoices to the regulatory payment body (State Treasury). Based on the request of the agency in charge of reviewing the final settlement, the regulatory payment body (State Treasury) shall pay final accounts review and approval expenses to the agency in charge of reviewing the final settlement.

Where the independent audit contractor does not carry out several work agreed upon in the audit contract after the investor’s fulfillment of their obligations to provide all required documents according to the audit contract, the investor shall consult contractual terms and conditions and quantities that the audit contractor does not carry out to reduce independent audit expenses in proportion to such quantities.
In case of force majeure events that may occur, thus changing the scope of work in the contract in effect, the investor and the independent audit contractor shall consult regulatory provisions on contracts to add or rule out the agreed-upon work.

Article 47. Time of preparation of dossiers, review and approval of final accounts of public investment funds for projects upon completion

Below is the breakdown chart of the maximum duration of these tasks:

Project	Of national significance	Category A	Category B	Category C
Duration of the investor’s preparation of final settlement dossier and submission thereof for approval	09 months	09 months	06 months	04 months
Duration of review of final accounts	08 months	08 months	04 months	03 months
Duration of approval of final accounts	01 month	01 month	20 days	15 days

The period of the investor’s preparation of the final accounting dossier for public investment funds for a completed project shall range from the date on which the report on acceptance testing and transfer of the project or work for use and operation is signed to the date of the investor’s submission of the complete dossier to the agency in charge of reviewing the final settlement.
The period of review of the final settlement of public investment funds for a completed project shall range from the date on which the agency in charge of reviewing the final settlement receives the complete final settlement dossier (as provided in Article 34 herein) to the date on which the competent person’s approval of the final settlement is sought.
The period of approval of the final settlement of public investment funds for a completed project shall range from the date on which the person having competence in granting approval of the final settlement (as provided in clause 1 of Article 35 herein) fully receives the request dossier for the final settlement (as provided in Article 45 herein) to the date on which the decision on approval of the final settlement of investment funds for the completed project is issued.

Article 48. Reporting of the final accounting for public investments in completed projects in the budgetary year

Reporting data shall be collected from January 1 to end of December 31 in the calendar year.
By January 20 each year, agencies in charge of reviewing the final settlement that are the inferior authorities of ministries, central authorities, state corporations, incorporations; Departments of Finance, Divisions of Finance and Planning in districts shall send the review report on final settlement of public investment funds for completed projects in the budgetary year to agencies assigned by ministries, central authorities, state corporations, incorporations or provincial People’s Committees to take charge of compiling reports. By January 30 each year at the latest, Ministries, central authorities, state corporations, incorporations, provincial People’s Committees shall send reports on situation of final settlement of public investments in the completed projects in the year under their authority to the Ministry of Finance so that the Ministry of Finance completes the final accounts of public investment funds for completed projects in the year for nationwide disclosure purposes.
Methods of sending and receiving reports: All reports must be sent and received by paper or electronic means in accordance with regulations currently in force.

Chapter IV

INSPECTION

Article 49. Inspection of management, disbursement, payment and settlement of investment funds for publicly-funded projects

Investors can autonomously check the implementation of projects under their relevantly delegated authority.
Managing agencies, superiors of investors and financial authorities at all levels shall carry out the regular or irregular inspection of investors and contractors executing projects towards utilization of advance funding and funding for payment for completed quantities, implementation of budgetary year-end or upon-completion accounting tasks within their remit, and compliance with policies, financial regulations for public investment and state budget currently in force.

Where there is any defect or violation detected during the inspection process, inspecting agencies shall compile reports on such situation for submission to the Ministry of Finance to consult them on any proper action within their competence, or recommend competent authorities to take actions allowed by law currently in force.

Financial authorities at all levels shall carry out the regular or irregular inspection of the regulatory payment bodies with respect to the compliance with control and payment regulations for public investment funds, and check whether units under their authority duly perform their assigned tasks of final settlement of investment funds for completed projects. Where there is any defect or violation detected during the inspection process, inspecting agencies shall take actions under their delegated authority or inform such situation to the superior financial authorities for actions that they are authorized to take.
The Ministry of Finance shall carry out the regular or irregular inspection of management, disbursement, payment and settlement of public investment funds, year-end or upon-completion final settlement of ministries, central and local authorities. Where there is any defect or violation detected during the inspection process, the Ministry of Finance shall actively take actions under its delegated authority or compile the review report on such situation and recommend competent authorities to take actions allowed by law currently in force.
Regulatory payment bodies shall conduct the inspection according to their assigned duties and functions.

Chapter V

DUTIES OF CONCERNED BODIES

Article 50. Duties of financial authorities at all levels, agencies in charge of reviewing the final accounts for public investment funds for projects upon completion

Inspect the distribution of state budget-funded investments in accordance with the Law on State Budget and this Decree. Synthesize budgets for mid-term and annual public investment of the state budget (including domestic and overseas funds), and legitimate revenues that state authorities or public service units retain for investing purposes within their remit.
Cooperate with regulatory authorities in providing regulatory payment bodies, investors and contractors performing public investment mandates and projects with guidance on financial regulations and policies for investment, management, payment/disbursement and final settlement of public investment funds; inspecting their compliance with these regulations, policies and performance towards management, payment/disbursement, final settlement of public investment funds in order to take actions against violations or issue decisions to retrieve funds disbursed in breach of regulations currently in force.
Implement regulations on reporting of disbursement and final accounting of public investment funds under regulations in force.
Request regulatory payment bodies, managing agencies and investors to provide documents, materials and information necessary to perform the tasks of state management of finance, state budget and public investment, including documents serving the needs of management of public investment projects, distribution of budgets, reporting of implementation and disbursement of mid-term and annual public budgets according to regulations on the reporting regime; documents serving the needs of audit of year-end and upon-completion final accounts of public investments in accordance with regulations laid down herein.
Every six months or each year, based on reports of regulatory payment bodies, with respect to the projects under the authority of ministries or central authorities, the Ministry of Finance shall issue regulatory official letters to strengthen the inspection and assessment of implementation of the budget and recovery of advance funding for public investment of the state budget, and request actions to be taken against overdue balances of advance funding that are not recovered to ministries and central authorities; for projects under the management of all-level People’s Committees, Departments of Finance and Divisions of Finance and Planning in districts shall report on and recommend measures to be taken to treat unrecoverable amounts of advance funding that are overdue to the same-level People’s Committees.
In addition to the tasks specified in clause 1, 2, 3, 4 and 5 of this Article, they can assign the Ministry of Finance to:
a) Assist the Government in the uniform regulatory control of management, disbursement of public investment funds, and final settlement of public investment funds of the state budget in the budgetary year, and final settlement of completed projects. Lead and cooperate with relevant ministries and agencies in taking responsibility for guidance on implementation and implementation of this Decree.
b) Instruct and check the implementation of regulatory provisions on management and disbursement of public investment funds, and final settlement of public investment funds of the state budget in the budgetary year, and final settlement of completed projects. Where there is any defect or violation detected during the process of review and approval of final accounts of public investment funds for completed projects, it is mandatory to request final accounts-approving authorities to make necessary adjustments; consider taking actions under their jurisdiction or request competent authorities to take actions against such violation under law in force.
c) Take charge of entering and validating public investment budgets of the state budget on Tabmis on an annual basis.
d) Impose regulations on final settlement forms and charts and provide instructions about relevant matters.
dd) Submit the synthesis report to the Government to seek its decision in special cases where regulations other than those of this Decree on project dossier (legal, advance funding and disbursement dossier), disbursement mechanism (mechanism for advance funding, recovery of advance funding, payment for completed quantities) are needed.
The agency in charge of reviewing the final settlement of public investment funds for completed projects shall guide and inspect the investor’s implementation of final settlement of public investment funds for completed projects; review of final accounts of public investment funds for completed projects in accordance with this Decree; bear responsibility for direct results of review of the final accounts on the basis of the dossier on final settlement of public investment funds for completed projects that the investor provides. Bear no responsibility for accuracy of quantities successfully tested by investors and contractors and entered into the final accounts; of the cost estimate approved by competent authorities, or the winning bid proposal decided by authorities having competence in deciding the contract awarding and recorded in the contract by mutual agreement between investors and contractors.

Article 51. Duties of regulatory payment bodies

Carry out control and disbursement activities to ensure that funds are disbursed in a timely and full manner to projects when all requirements and schedule prescribed in law in force and this Decree are met. Give written opinions to investors on disbursement reductions or refusals, and respond to queries of investors about fund disbursement.

In case of discovering that documents included the dossier provided by the investor are in breach of current regulations, the regulatory payment body shall make the written request for reconsideration and clearly state recommendations; after the prescribed time limit, in case of receiving none of answers or any answer in breach of current regulations, regulatory payment bodies shall report to superior competent authorities and financial authorities for review and further action.

Push investors into compliance with regulations on advance funding, recovery of advance funding, debts; cooperate with investors in checking over amounts already disbursed in advance to serve the purposes of recovering amounts of advance disbursement not yet used or misused, and closing out accounts of the projects obtaining approval of final settlement in accordance with regulations. Obtain permission to temporarily suspend fund disbursement or cooperate with investors in recovering funds used to serve wrong purposes, beneficiaries or in breach of regulatory provisions on financial management currently in force, and report on such situation to the Ministry of Finance for its proper actions.
Carry out the communication, reporting regime and the year-end final accounting in accordance with this Decree and regulations in force.
Confirm the disbursement amount in the year and the disbursement amount accumulated from the project commencement date to end of the state budgetary year for specific projects or confirm the disbursement amount at the administrative request; for foreign funds, the regulatory payment body (State Treasury) shall confirm such amount according to data on request for advance funding and disbursement by the investor (project owner) that are accepted by the regulatory payment body.
Provide specific instructions about controlling and disbursement methods within the system.

Article 52. Duties of ministries, central authorities and provincial or district-level People’s Committees, other concerned agencies or entities

Check and push investors into compliance with regulations on management, disbursement/payment and settlement of financial obligations of publicly-funded projects.
Post the list of contractors violating regulations on the time of preparation of final settlement dossiers on the Vietnam Public Procurement Review Journal and the national procurement system in order to notify investors and project management authorities of contractors failing to meet the deadline for preparation of dossiers on final settlement of contractual financial obligations. Avoid permitting contractors failing to meet the deadline for preparation of dossiers on final settlement of public investment funds for completed projects to bid for execution of new projects and contracts.
Disclose the list of projects executed by investors or project management authorities failing to meet the deadlines for completion of final accounts; strictly sanction violating collectives and individuals in accordance with regulations.

Article 53. Duties, rights and responsibilities of investors, project management authorities and contractors executing publicly-funded projects

Investors (project management authorities) shall:
a) comply with regulatory provisions on the regime for management, disbursement/payment and final settlement of publicly-funded projects.
b) bear responsibility for the accuracy of quantities, prices and costs of payment requests, data, documents and materials provided to regulatory payment bodies and state regulatory authorities in charge of management and disbursement/payment of public investment funds.
c) be subject to inspection of management, disbursement and final settlement of investment funds in publicly-funded projects conducted by financial authorities at all levels and investment decision-issuing authorities.
d) check management, disbursement/payment and settlement of investment funds for publicly-funded projects by contractors. Cooperate with regulatory payment bodies in making assessment reports on advance funding and recovery of advance funding under this Decree.
dd) implement its intracorporate accounting regime. By end of the budgetary year, make the reconciliation chart showing data on annual public investment funds for specific projects for submission to regulatory payment bodies where transactions occur by February 10 in the next year for validation purposes.
e) Make, submit and take control of dossiers on final settlement of investment funds for completed projects in accordance with regulations.
g) Bear responsibility before law and agencies in charge of reviewing the final settlement for the legality of the final settlement dossier and the accuracy of data of final settlement requests; the accuracy of successfully-tested quantities that investors and contractors provide as a basis for final settlement; the relevancy of the unit price agreed upon by the investor and contractor in the contract.
h) Redisburse surplus funds to the state budget when the completed project obtaining final settlement approval has the amount eligible for final accounting which is less than the amount paid to the project, the amount of advance funding in accordance with regulations, and bear responsibility for advance funding amounts that have not yet been recovered. Disbursing more funds eligible for the approved final accounts to the contractors or suppliers according to the budget plan when the amount specified in the approved final accounts is higher than the disbursed amount.
i) The investor (project owner) shall be responsible for managing and using electronic payment control forms issued by the regulatory payment body (the State Treasury) for use at publicly-funded investment projects.
Contractor:
a) Prepare the dossier on termination of contractual financial obligations and final settlement of the value of the contract signed with the investor in accordance with law on contracts when all contractual work is completed; bear responsibility for data and legality of relevant documents included in the dossier on final settlement of the contract in accordance with regulations.
b) Cooperate with the investor in radically dealing with issues arising from the signed contract; repay the amounts that investors disburse in breach of regulatory policies in a full and timely manner.
c) Comply with decisions on approval of final settlement of investment funds for completed projects issued by competent persons.
Independent audit contractors, auditors must observe the independent audit principles, have legally accepted authority, obligations and responsibility for independent audit when auditing final accounts.

Chapter VI

IMPLEMENTARY PROVISIONS

Article 54. Transition

For contracts signed and in progress before the effective date of this Decree, terms and conditions regarding advance funding, recovery of advance funding and disbursement of completed quantities can continue to take effect as prescribed in these contracts. All formalities regarding advance funding, recovery of advance funding and payment for completed quantities that arise after the effective date of this Decree shall conform to regulations laid down herein.
With respect to contracts under negotiation or not yet signed, if there are any terms and conditions conflicting with the regulations of this Decree, persons having competence in making investment decisions should be informed of such conflict to consider their decisions according to the principles that requirements concerning quality, progress and efficiency are assured; legal rights and interests of parties are not harmed.
Regulations on final settlement of state budget-funded investments in the budgetary year (full-year/year-end settlement) as stated in Section 1 of Chapter III hereof shall be applied to the final accounts of the year 2021 and onwards.
If projects, component projects, sub-projects, works and standalone items of work funded by public investment funds already submit final settlement dossiers upon completion to agencies in charge of reviewing the final accounts before the effective date of this Decree, regulations on final accounting of investment funds for completed projects funded by state budget that are laid down in the Circular No. 10/2020/TT-BTC shall apply.

Article 55. Entry into force

This Decree shall enter into force as of January 1, 2022.
Repealing the following regulations regarding:
a) Documents included in the dossiers prescribed in clause 4, 5, 6, 7, 8, 9, 10 and regulations regarding declaration forms specified in point a of clause 16 of Article 8 in the Government’s Decree No. 11/2020/ND-CP dated January 20, 2020 on administrative formalities in the state treasury field.
b) Documents included in the dossiers prescribed in clause 4, 5 and 6 and the declaration form laid down in point a of clause 12 of Article 9 in the Government’s Decree No. 11/2020/ND-CP dated January 20, 2020.
c) Regarding documents included in dossiers of projects (component projects) funded by foreign funds that are specified in the development plans receiving the state budget’s full grants and those receiving partial grants or on-lending on pro rata basis as provided in clause 4 and regulations on declaration forms with respect to investment expenditures prescribed in point a of clause 10 of Article 10 in the Government’s Decree No. 11/2020/ND-CP dated January 20, 2020.

Article 56. Implementation

Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies , the Presidents of the People’s Committees in central-affiliated cities and provinces, heads of political organizations, socio-political organizations and socio-political professional organizations, entities and individuals involved shall be responsible for implementing this Decree./.

FOR GOVERNMENT
PP. PRIME MINISTER
DEPUTY PRIME MINISTER

Le Minh Khai

Link to download: Decree No. 99/2021/ND-CP dated November 11, 2021

FAT AUDITING AND FINANCE COMPANY LIMITED

Regulations on finalization of completed projects

Decree No. 99/2021/ND-CP dated November 11, 2021 on management, payment and settlement of projects using public investment capital

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