What are regulations on expenditure estimates for compensation, support, relocation, and coercive inventory approved by a competent body in Vietnam?

What are regulations on expenditure estimates for compensation, support, relocation, and coercive inventory approved by a competent body in Vietnam?

Pursuant to Clause 1.c and 1.d, Article 6 of the Circular 61/2022/TT-BTC (takes effect from 20/11/2022) stipulating as follows:

c) When the estimates are approved by a competent body, authorized organizations shall send a copy to the project developers or sub-project developers or Land Development Fund or the State Treasury for joint implementation.

d) Expenditure estimates for compensation, support, relocation, and coercive inventory approved by a competent body shall be identified as finalized results of expenditure on compensation, support, relocation, and coercive inventory for project developers and sub-project developers and shall be used by:

d.1) Authorized organizations to pay and recover state budget advance.

d.2) Project developers and sub-project developers to finalize completed projects.

If projects or sub-projects where compensation, support, relocation, and coercive inventory are implemented over many years, rely on work that arises each year to allocate expenditure on compensation, support, relocation, and coercive inventory approved by a competent body for every year to adopt procedures for paying, recovering advance of state budget in accordance with regulations and law on investment, state budget, and relevant law provisions.

What are regulations on the use of expenditure on compensation, support, relocation, and coercive inventory of projects and sub-projects in Vietnam?

Pursuant to Clause 2.a, Article 6 of the Circular 61/2022/TT-BTC (takes effect from 20/11/2022) stipulating the use of expenditure on compensation, support, relocation, and coercive inventory of projects and sub-projects in Vietnam as follows:

a.1) Based on estimates approved by a competent body, the Council for compensation, support, and relocation shall be wired payment or advance capital for compensation, support, relocation, and coercive inventory by project developers or Land Development Fund or the State Treasury in accordance with progress regulated by regulations on state budget, public investment, and other relevant law provisions.

The recovery of advance capital and payment of advance capital shall conform to relevant law provisions.

If projects or sub-projects (excluding projects and sub-projects using public investment) demand immediate implementation of compensation, support, and relocation at request of a competent body while estimates have not been approved, the Council for compensation, support, and relocation shall receive advance payment from project and sub-project developers as per the law for implementation. If the advance made is greater than the expenditure estimates for compensation, support, relocation, and coercive inventory approved by a competent body, the Council for compensation, support, and relocation shall return to project and sub-project developers as per the law.

a.2) The Council for compensation, support, and relocation is responsible for using expenditure on compensation, support, relocation, and coercive inventory in accordance with the estimates approved by a competent body.

The use and accounting of expenditure on compensation, support, relocation, and coercive inventory of the projects and sub-projects shall be implemented by the Council for compensation, support, and relocation in accordance with regulations on state budget.

a.3) When renting service providers to provide services pertaining to compensation, support, and relocation, the Council for compensation, support, and relocation shall pay the service providers as per signed contracts.

What are regulations on the Council for compensation, support, and relocation, which is responsible for using expenditure on compensation, support, relocation, and coercive inventory in Vietnam?

Pursuant to Clause 2.b, Article 6 of the Circular 61/2022/TT-BTC (takes effect from 20/11/2022) stipulating the Council for compensation, support, and relocation responsible for using expenditure on compensation, support, relocation, and coercive inventory in Vietnam as follows:

On an annual basis, the Council for compensation, support, and relocation is responsible for finalizing expenditure on compensation, support, relocation, and coercive inventory and dealing with the discrepancy between the amount incurred according to approved finalization and the received amount according to approved estimates of projects and sub-projects where compensation and land clearance have been completed in the financial year. To be specific:

b.1) Finalization of expenditure on compensation, support, relocation, and coercive inventory:

The finalization of expenditure on compensation, support, relocation, and coercive inventory shall conform to regulations and law on state budget, public investment, and other relevant law provisions.

If the Council for compensation, support, and relocation is assigned to simultaneously implement multiple projects and sub-projects with general expenses (without monitoring any specific project and sub-project in detail), the Council shall then consolidate all general expenses in the financial year and distribute to each project and sub-project using the formula below:

General expenses that arise in the year and are distributed to each project, sub-project	=	Total general expenses that arise in the year of all projects and sub-projects	x	Incurred direct expenses in the year of each project, sub-project
		Total direct expenses incurred in the year of all projects and sub-projects

The Council for compensation, support, and relocation shall produce schedule of general annual expenses of each project, sub-project (together with proof of general expenditure in the year). On such given basis:

- In projects and sub-projects where compensation and land clearance have been completed in the financial year, the Council for compensation, support, and relocation shall produce report on finalization of expenditure on compensation, support, and relocation which includes direct expenses and general expenses (if any), submit to financial authorities under Point a and Point b Clause 1 of this Article for approval in accordance with regulations and law on state budget.

- With respect to projects and sub-projects where compensation and land clearance have not been fulfilled in the financial year, record direct costs and general costs (if any) of the projects and sub-projects for the purpose of finalization of expenditure on compensation, support, and relocation of the projects and sub-project when compensation and land clearance have been fulfilled.

b.2) The difference between actual amount incurred according to finalization approved by a competent body and amount received according to estimates approved by a competent body shall be submitted to the central government budget with respect to projects and sub-projects under management of central government or to local government budget with respect to remaining projects and sub-projects (other than those under management of central government).

Best regards!