In Vietnam, what are regulations on financial management principles for aid capital?

Nội dung chính

• Regulations on financial management principles for aid capital in Vietnam:
• Regulations on opening accounts for aid program or project in Vietnam:

Regulations on financial management principles for aid capital in Vietnam:

Pursuant to Article 20 of the Decree 80/2020/NĐ-CP stipulating financial management principles for aid capital in Vietnam as follows: 

1. The principle of financial management of aid capital belonging to the state budget revenues shall apply only to aid amounts managed and implemented by project owners themselves.

2. For aid directly managed by the aid donor: The managing agency is responsible for managing the approved program or project documents; performing according to their functions and tasks; and complying with the provisions of accounting, taxation and other relevant laws. In case the aid donor hands over ownership of the properties and equipment of the program or project to the project owner, the project owner shall establish the property ownership according to current regulations. .

3. Aid classified as state budget revenues shall be estimated, controlled, accounted, and settled according to the provisions of law on state budget and financial management prescribed in this Decree. Any new item that has not been aggregated in the estimate shall be allocated by the competent authority, the project owner shall make additional estimates in accordance with the law on state management and relevant laws.

4. For aid capital not belonging to the state budget revenue, the aid recipient shall manage and use it according to program, project or non-project documents already approved by the competent authorities; the charter of organization and operation of the recipient and compliance with regulations on accounting and tax and relevant law provisions.

5. For aids belonging to the state budget revenue to enterprises where the State wholly holds the capital for implementation, depending on the nature of the aid, it shall be recorded as increasing state capital of the enterprise or other revenues of the enterprise.

Regulations on opening accounts for aid program or project in Vietnam:

Pursuant to Article 21 of the Decree 80/2020/NĐ-CP stipulating opening accounts for aid program or project in Vietnam as follows: 

1. Counterpart fund account:

a) Counterpart fund account funded by state budget capital: The project owner shall open an account at the State Treasury system where the transaction is conducted to control and pay for the project's counterpart fund;

b) Counterpart fund account not funded by the state budget: The project owner shall open accounts at the State Treasury system where transactions are made or commercial banks that are established and operate under Vietnamese law.

2. Aid capital account: The project owner shall open aid capital accounts at the State Treasury system where transactions are made or commercial banks that are established and operate under Vietnamese law.

a) Procedures for opening an account at the State Treasury and the management and use of accounts shall comply with current regulations;

b) The State Treasury shall organize the control and payment for projects funded by aid capital classified as the state budget revenues;

c) The procedures for opening an account at a commercial bank established and operating under Vietnam's law shall comply with relevant provisions of law.

Best regards!