Regulations on implementing incentive policies for socialization in Vietnam

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1. Subjects of socialization

According to the provisions of Clause 1, Article 1 of Decree 69/2008/ND-CP stipulating: "The fields that need PSI include: education and training, vocational training, health care, culture, sports, environment, and judicial expertise."

Subjects of socialization are specified in Clause 2, Article 1 of Decree 69/2008/ND-CP, specifically:

- Non-state establishments established and meeting conditions on operation in the domains encouraged for socialization under regulations of competent state agencies;

- Individuals and organizations operating under the Enterprise Law which have investment projects, joint ventures, partnerships or establishments in the domains encouraged for socialization and meet operation conditions prescribed by competent state agencies;

- State non-business establishments contributing capital, raising capital, entering into joint ventures or associations according to law to establish financially independent enterprises or enterprises operating in the domains encouraged for socialization under decisions of competent state agencies.

2. Principles of implementing incentive policies for socialization

According to Circular 135/2008/TT-BTC, implementing policies to encourage socialization according to the following principles:

- Licensed establishments must conform with planning and satisfy prescribed conditions for enjoying incentive policies under Section II of Circular 135/2008/TT-BTC.

- Establishments shall operate on the principle of self-financing.

- The State and society respect and equally treat establishments in their operation as well as their products and services like state establishments. Establishments may provide public services funded or ordered by the State: and bid for domestic-or foreign-funded contracts and projects according to their law-prescribed functions and tasks.

- Establishments may enter into joint ventures or partnerships with domestic and foreign organizations according to law to raise capital and attract human resources and technologies for product and service quality improvement.

- Assets of establishments include personal and collective assets, assets contributed by state non-business establishments and assets formed in the course of operation, of which assets as donations, gifts or non-refundable aid granted to establishments during their operation may not be divided among individuals and must only be used in the common interests of the establishments and community.

- When establishments terminate operation or are dissolved, the order of and procedures for dissolution, asset disposal and financial settlement comply with the law on enterprise dissolution.

3. Incentive policies for socialization in Vietnam

In Chapter 2 of Decree 69/2008/ND-CP, there are 09 incentive policies for socialization as follows:

- Lease, building of material foundations

- Land allotment and lease

- Registration fee value-added tax import-export duties

- Imposition of enterprise income tax

- Credit incentive policies

- Capital raising

- Social and health insurance

- Commendation

- Asset disposal upon transformation of operation

4. Responsibilities of establishments in question

According to the provisions of Article 16 of Decree 69/2008/ND-CP guided by Section XII of Circular 135/2008/TT-BTC, the responsibilities of establishments implementing policies to encourage socialization are as follows:

- An establishment shall register with a tax office upon operation. It shall submit annual and quarterly reports on professional operations to line management agencies (licensing agencies) and reports on financial activities to line management agencies and finance agencies of the same level.

- An establishment shall comply with its operation charter and meet prescribed requirements on professional operations, human resources and material foundations in order to supply quality products and services for the society.

- Annually, an establishment shall publicize its operations and financial activities. The board of directors (or school council) or the head (if no board of directors exists) of the establishment shall observe its operation charter's provisions on transparency, especially for the following contents:

+ Charge and fee rates.

+ Level of supports and state budget funds provided to the establishment.

+ The establishment's contributions to the state budget.

- An establishment set up by an organization or individual shall register its professional operations with a local competent state management agency, operate under law, and register operation with a tax office for preferential treatment or enterprise income tax calculation.

- An establishment shall fulfill its accounting and statistical duties, be audited annually and publicize audit results according to law.

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