Grants management for programs, projects, and non-projects in Vietnam

Open accounts to receive assistance grant for programs, projects, and non-projects implemented by Vietnamese program owners, project owners

Pursuant to Clause 1, Article 12 of the Ciruclar 23/2022/TT-BTC (takes effect from 20/05/2022) stipulating opening accounts to receive assistance grant for programs, projects, and non-projects implemented by Vietnamese program owners, project owners as follows:

Based on assistance agreement and decisions approving programs, projects, and assistance, owners of programs, projects, and non-projects shall open accounts at State Treasury or commercial banks to receive assistance grant in accordance with Clause 5 Article 3 hereof. Within 15 days from the date of account opening, report to Ministry of Finance in case of revenue of central government budget or Departments of Finance in case of revenue of provincial government budget and send information on receiving accounts to State Treasury.

Expense review, disbursement, and recording of assistance grant in Vietnam

Pursuant to Clause 2, Article 12 of the Ciruclar 23/2022/TT-BTC stipulating expense review, disbursement, and recording of assistance grant for programs, projects, and non-projects implemented by Vietnamese program owners, project owners as follows:

a) Expense review

Owners of programs, projects, and non-projects shall review expenses at State Treasury where registration is performed for each expense is made from the assistance grant in accordance with regulations on state budget management. Expense review procedures shall conform to regulations and law on administrative procedures in State Treasury.

b) Disbursement

Disbursement of assistance grant from accounts opened at State Treasury or commercial banks must be based on agreements on assistance, decisions approving programs, projects, and non-projects of competent authorities, state budget expenditure estimates; progress of programs, projects, and expense review confirmation of State Treasury.

Regarding expenses made from assistance grant whose expense review is not confirmed by the State Treasury, owners of programs, projects, and non-projects must return the amount to the receiving account.

c) Recording of assistance grant as state budget

On a monthly or case-by-case basis, State Treasury shall record expense and revenue of central or provincial government budget depending on state budget management level of entities receiving the assistance grant based on expense review, and expense, revenue record of owners of programs and projects in accordance with regulations of the Government on administrative procedures in State Treasury.

In case presiding authorities of ODA grant are provincial People’s Committees, record revenue of central government budget assistance and record expense of central government budget in order to perform target transfer to provincial government budget. Record revenue of provincial government budget originating from target transfer from central government budget and record expenses for programs and projects.

d) Regarding assistance grant that has been transferred to accounts at financial banks but has not been withdrawn or recorded as revenue or expense of State Treasury, within 5 working days from the date on which disbursed amount of the sponsoring parties, owners of programs and projects are responsible for submitting notice and proof of credit to State Treasury and Ministry of Finance (Department of Debt Management and External Finance) in case of assistance grant recorded as revenue of central government budget or Departments of Finance in case of assistance grant recorded as revenue of provincial government budget to allow the State Treasury to monitor amount of assistance grant received by owners of programs, projects and financial authorities to keep track. Owners of programs and projects must also inform presiding authorities for management of received assistance grant.

State Treasury shall not perform expense review for programs and projects should owners of such programs or projects fail to inform the State Treasury upon receiving the assistance grant.

dd) On a monthly basis, commercial banks where owners of programs, projects utilizing assistance grant recorded as state budget revenue open account must send bank statements to the owners and State Treasury.

Best regards!