What are regulations on opening accounts for grant aid program or project in Vietnam?

1. What are regulations on opening accounts for grant aid program or project in Vietnam?

In Article 21 of Decree 80/2020/ND-CP opening accounts for grant aid program or project is 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.

2. What are regulations on financial planning of grant aid capital classified as the State budget revenue in Vietnam?

According to Article 22 of Decree 80/2020/ND-CP, financial planning of grant aid capital classified as the State budget revenue is prescribed as follows:

1. Based on the decision on approval for project or non-project documents or decision on investment in program or project, the project owner shall elaborate 3-year aid capital expenditure estimates and grant aid spending and expenditure estimates in accordance with the Law on State Budget and relevant laws and send them to the managing agency for consolidation.

2. The estimation of revenue and expenditure estimates of aid classified as annual state budget revenues shall be detailed according to each donor, program, project or non-project.

3. Making, synthesizing, submitting, approving, assigning and adjusting plans of aid capital:

a) Aid capital used for public investment shall comply with the law on public investment;

b) Aid capital used for regular spending shall comply with the provisions of law on state budget.

4. On the basis of the annual capital limit assigned by the competent agencies, the managing agencies shall make detailed allocation for each program, project and non-project and notify the Ministry of Finance and the Ministry of Planning and Investment on the detailed allocation plan.

5. The managing agency shall direct and organize the implementation of cost estimates and report on the implementation of aid budget revenue and expenditure plans according to current regulations.

3. What are regulations on contents of state management of aid in Vietnam? 

Pursuant to Article 27 of Decree 80/2020/ND-CP, contents of state management of aid stipulate as follows:

1. Promulgating and organizing the implementation of legal documents on aid management and use according to Vietnamese law.

Providing information on aid management and use within the scope of regulation of this Decree.

3. Monitoring and evaluating the results of aid management and use governed by this Decree according to current law provisions.

4. Handling violations and settling complaints and denunciations of organizations and individuals related to aid management and use.

5. Rewarding Vietnamese agencies, organizations and individuals and the aid donors for their achievements in aid provision, management and use.

Best Regards!