Circular 85: Payment control by the State Treasury of Vietnam

Circular 85: Payment control by the State Treasury of Vietnam (Illustrative Image)

Circular 85/2014/TT-BTC regulating the payment control by the State Treasury of Vietnam for construction investment capital funded from the state budget used in forest protection and development plans is as follows:

- Based on the payment request of the investor, the State Treasury of Vietnam relies on the payment terms specified in the contract. For projects executed by the investor, the document is the job assignment document or internal contract, based on the content of the job assignment document or internal contract of the investor (number of payments, payment stages, payment time, and payment conditions) and the value of each payment, the State Treasury of Vietnam shall make payments to the investor. The investor bears responsibility for the accuracy and legality of the work volume completed, norms, unit prices, cost estimates of types of work, and the quality of works; the State Treasury of Vietnam does not bear responsibility for these matters. The State Treasury of Vietnam shall make payments according to the contract based on the payment documents.

- The State Treasury of Vietnam performs payment control based on the principle of "payment before control" for each payment and "control before payment" for the final payment of the contract. The State Treasury of Vietnam provides specific guidelines on the payment control method within the State Treasury of Vietnam system, ensuring convenience for investors, and contractors, and compliance with state regulations

.- Within 07 working days for cases of "control before payment" and within 03 working days for cases of "payment before control", from the date of receipt of the complete payment documents as required by the investor, based on the contract (or approved cost estimate for works done without a contract) and the amount requested for payment by the investor, the State Treasury of Vietnam controls, allocates payment capital for the project and recovers the advance capital as stipulated.

- For investment projects using official development assistance (ODA) funds, if the international treaty signed by the competent authority of the Socialist Republic of Vietnam has provisions on payment management and finalization of capital different from the regulations of this Circular, the provisions of the international treaty shall apply

.- The amount of capital paid for each work item or project section must not exceed the approved cost estimate or the package price; the total amount of capital paid for the project must not exceed the approved total investment level. The amount of capital paid for the project in a year (including advance payments and payments for completed volumes) must not exceed the annual capital plan allocated for the project. As for ODA projects, advance payments and payments for completed volumes are not restricted by the project's annual financial plan but should not exceed the overall financial plan for the entire project.

- After receiving opinions from competent authorities, the Ministry of Finance will issue separate guidelines for some particularly important projects requiring a payment mechanism different from the above regulations

- The annual capital plan for the project is only paid for completed volumes that have been accepted, and the payment deadline (including payments to recover advanced capital) is regulated.

Details can be found in Circular 85/2014/TT-BTC effective from August 15, 2014.

Ty Na

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