Funding Preparation for Non-Refundable Aid: Source of Funds?

Where is the capital for preparing non-refundable aid sourced from? (illustrative image)

Article 6 of Decree 80/2020/ND-CP stipulates that the capital for preparing non-refundable aid not classified as official development assistance from foreign agencies, organizations, and individuals for Vietnam is as follows:

1. For aid managed by agencies which are units whose operational expenses are partially or wholly covered by the state budget, the managing agency shall prepare a capital plan to incorporate into the annual general budget plan as regulated by the Law on State Budget.

2. For aid not accounted as state budget revenue (both central and local), the aid owner shall balance and allocate capital preparing the aid.

3. In cases where the aid provider supplies financial support for program or project preparation, the aid owner shall include the preparation capital into the total common capital of the aid.

In this Decree, the aid provider refers to foreign organizations and individuals with goodwill, respect for, and compliance with Vietnamese law, including:

- Foreign non-governmental organizations, non-profit organizations, social funds, and private foundations established under foreign laws;- Foreign individuals, including overseas Vietnamese;- Enterprises and companies established under foreign laws, excluding foreign-invested economic organizations operating in Vietnam under the Law on Investment;- Research and training organizations established under foreign laws (including research institutes and cooperative organizations of foreign governments);- Foreign government departments, agencies, and organizations, as well as diplomatic missions of countries in Vietnam that provide aid directly or authorize foreign legal entities to manage aid, where the receipt and implementation of the aid does not require official agreement signing as per the Law on International Treaties or does not require the Vietnamese side to sign on behalf of the State or the Government of the Socialist Republic of Vietnam.

More details can be found in Decree 80/2020/ND-CP, effective from September 17, 2020.

Thu Ba

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