Notable new policies of Vietnam effective from the end of March 2023

1. Criteria for selecting audit units, focal points, and topics of State Audit Office of Vietnam  

On February 9, 2023, the State Audit Office of Vietnam promulgated Decision No. 02/2023/QD-KTNN on regulations on preparing, appraising, and promulgating annual audit plans and medium-term audit plans of the State Audit Office of Vietnam.

According to the Decision, 5 criteria for selecting audit units, focal points, and topics are as follows:

- Audit units, focal points, and topics that have objectives, key points, and contents of audit work conformable with the direction of developing annual audit plans and medium-term audit plans of the State Audit Office of Vietnam.

- Audit units, focal points, and topics that are assessed to have inherent risks and high control risks.   

- Audit units, focal points, and topics that are being concerned by the National Assembly of Vietnam, the Government of Vietnam, local authorities at various levels, and public opinion.

- Audit units, focal points, and topics related to the collection, management, and use of the high-value budget source compared to other audit units and topics.

- Units, focal points, and topics that have not been audited or have long intervals from the previous audit, or are subject to regular or periodic audits as per regulation.

(Compared to Decision No. 03/2017/QD-KTNN, Decision No. 02/2023/QD-KTNN has added the criteria for audit units, focal points, and topics subject to regular or periodic audits.)

Decision No. 02/2023/QD-KTNN comes into force as of March 26, 2023 and replaces Decision No. 03/2017/QD-KTNN.

2. New regulation of Vietnam on tasks and entitlements of members of management councils of public service providers in finance sector

On February 9, 2023, the Minister of Finance of Vietnam promulgated Circular No. 11/2023/TT-BTC on guidelines on management councils and standards and conditions for appointment and dismissal of members of management councils of public service providers in the finance sector.

According to the Circular, tasks and entitlements of members of management councils of public service providers in the finance sector are as follows:

- Strictly comply with operational regulations of management councils and public service providers and perform tasks assigned by presidents of management councils and other tasks as prescribed by law; adequately participate in meeting sessions of management councils and assume responsibility for their performance of tasks and entitlements.

- Contribute opinions and engage in discussions in meeting sessions of management councils; vote on contents of decisions of management councils as per regulation.

- Monitor and supervise the implementation of decisions of management councils and may propose suggestions on the operation of public service providers.

- May receive and access information and documents for work of management councils according to regulation; receive benefits and enjoy policies according to the law and public service providers' financial regulations.

- Perform other tasks as per regulation.

See more details in Circular No. 11/2023/TT-BTC, which comes into force as of March 31, 2023.

3. New regulation of Vietnam on positions and functions of Departments of Agriculture and Rural Development  

On December 30, 2022, the Minister of Agriculture and Rural Development of Vietnam promulgated Circular No. 30/2022/TT-BNNPTNT guiding functions, tasks, and entitlements of agencies specializing in agriculture and rural development of People's Committees of provinces and districts.

According to the Circular, positions and functions of Departments of Agriculture and Rural Development are as follows:

- Departments of Agriculture and Rural Development are specialized agencies of People’s Committees of provinces that provide advisory services and assist People’s Committees of provinces in performing the state management of agriculture; forestry; salt production; fishery; irrigation; prevention and management of natural disasters; rural development; agricultural products, forestry products, aquatic products, and salt quality and safety; public services in agriculture and rural development according to the law.  

(Compared to Joint Circular No. 14/2015/TTLT-BNNPTNT-BNV, Circular No. 30/2022/TT-BNNPTNT has removed the performance according to assignment and authorization of People’s Committees of provinces or Presidents of People’s Committees of provinces.)

- Departments of Agriculture and Rural Development (hereinafter referred to as “Departments”) shall have legal status, their seals and accounts, and are subject to the directive and management of People's Committees of provinces as well as the directive, guidance, and professional inspection of the Ministry of Agriculture and Rural Development of Vietnam.

Circular No. 30/2022/TT-BNNPTNT comes into force as of March 31, 2023, and replaces Joint Circular No. 14/2015/TTLT-BNNPTNT-BNV.

4. Vietnam to adjust name and financial management principles for VCCI  

This is the content of Circular No. 10/2023/TT-BTC dated February 8, 2023 on amendments to Circular No. 133/2015/TT-BTC guiding financial management mechanisms for the Vietnam Chamber of Commerce and Industry promulgated by the Minister of Finance of Vietnam.

Specifically, from March 27, 2023, the Vietnamese name of VCCI is changed from “Phòng Thương mại và Công nghiệp Việt Nam” to “Liên đoàn Thương mại và Công nghiệp Việt Nam”.

At the same time, the financial management principles of VCCI are adjusted as follows:

- VCCI shall operate according to financial autonomy regulations and be funded by the state budget according to Decision No. 71/2011/QD-TTg dated December 20, 2011 of the Prime Minister of Vietnam on assurance and state budget funding for associations with specific characteristics.

- The financial management for VCCI shall be clearly defined and recorded according to two types of activities:

+ Trade and investment promotion activities for the implementation of guidelines on expansion and development of the economy of Vietnam; activities according to tasks assigned by the State; activities of the implementation of programs, projects, and topics according to plans approved by competent state agencies.

The state budget shall provide funding for promotion activities according to plans assigned by competent state agencies.

+ Regarding business and services: VCCI shall ensure its budget and comply with regulations of laws on business and services.

- The Standing Committee of VCCI shall develop and issue financial management regulations of VCCI (including regulations on internal expenses) based on this Circular and relevant laws.

(Circular No. 10/2023/TT-BTC has added the regulation on internal expenses in financial management regulations of VCCI.)

Circular No. 10/2023/TT-BTC comes into force as of March 27, 2023.

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