07 Principles for Management and Utilization of Non-refundable Aid not Classified as ODA

07 principles for managing and using non-refundable aid not part of ODA (Illustrative image)

Article 4 of Decree 80/2020/ND-CP stipulates 07 principles in the management and use of non-refundable aid not covered by official development assistance (ODA) from foreign agencies, organizations, and individuals for Vietnam as follows:

1. The management and use of aid must comply with Vietnamese law. Aid funds will only be accepted, implemented, and used when authorized by the competent authorities of Vietnam. The source of aid funds must be legal money or assets.
2. Do not accept goods (including materials, equipment) that are on the list of banned imports according to the law.
3. The managing agency is fully responsible for the effective management and use of the aid funds.
4. The receipt and expenditure of aid funds must be conducted through an aid reception account, ensuring transparency, and must be reported in full as stipulated in this Decree.
5. Aid that falls into the state budget revenue category must be fully estimated, accounted for, and settled into the state budget.
6. For aid not falling into the state budget revenue category, the aid account holder is allowed to self-manage and is responsible for the purpose of use of the aid, ensuring compliance with Vietnamese laws and commitments with donors. The aid account holder must periodically report to the managing agency for consolidation and reporting to the Ministry of Planning and Investment for overall compilation.
7. If an aid fund has not been implemented without justified reasons within six months from the approval date, the competent authority that approved the aid is entitled to revoke the issued aid reception approval decision. The managing agency is responsible for notifying the aid provider of the revocation of the aid approval decision.

Details can be found in Decree 80/2020/ND-CP which took effect from September 17, 2020.

Ty Na

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