Procedures for controlling spending of foreign capital through the State Treasury of Vietnam

Procedures for controlling spending of foreign capital through the State Treasury of Vietnam (Internet image) 

On March 15, 2024, the Ministry of Finance issued Decision 447/QD-BTC on the announcement of amended and replaced administrative procedures related to state treasury management under the Ministry of Finance.

Procedures for controlling the spending of foreign capital through the State Treasury of Vietnam

(1) Administrative procedure name: Procedure for controlling spending of foreign capital through the State Treasury.

(2) Implementation method:

(a) Submit documents and receive results directly at the State Treasury's headquarters.

(b) Submit documents and receive results through the Public Service Portal of the State Treasury in case the unit participates in electronic transactions with the State Treasury (access and implementation according to the instructions on the Public Service Portal of the State Treasury).

(3) Procedures:

a) In the case of payment at the serving bank:

In the case of direct transactions at the State Treasury: The program or project owner prepares and submits documents in writing directly at the State Treasury where the transaction takes place. The State Treasury receives and controls the legality, validity, and conditions for spending according to the prescribed regime. If the spending control meets the prescribed regime, the State Treasury confirms the advance payment and makes the payment as requested by the program or project owner. If the spending control does not meet the prescribed regime, the State Treasury issues a written rejection notice (stating the reason for rejection) and sends it to the unit.

In the case of the program or project owner preparing and submitting documents through the Public Service Portal of the State Treasury, the State Treasury receives and controls the legality, validity, and conditions for spending. If it meets the prescribed regime, the State Treasury confirms the advance payment and makes the payment as requested by the program or project owner. If the spending control does not meet the prescribed regime, the State Treasury issues a written rejection notice (stating the reason for rejection) and sends it to the unit through the Public Service Portal of the State Treasury.

b) In the case of payment at the State Treasury: implement according to the provisions in section (2) of this procedure.

(4) Components and quantity of documents:

(4.1) Components:

a) Initial project documents (submitted once when conducting the first transaction with the State Treasury or when there are changes, adjustments, and supplements), including: Initial documents submitted according to the provisions in point a of section (4.1) of Part (4) of procedure 4 in Decision 230/QD-BTC dated February 24, 2020, of the Minister of Finance and point a of section (4.1) of Part (4) of this procedure 1 in this Decision. The contract between the investor (project owner) and the contractor must have a translation into Vietnamese (with the signature and seal of the project owner) of the payment provisions of the contract (in case the contract is signed in a foreign language); a Vietnamese translation of the agreement on ODA, concessional loans signed between the Government of Vietnam and the donor (with the signature and seal of the project owner); agreements, letters, or documents of "no objection" from the donor (if any).

b) Advance payment and payment documents (submitted each time there is a request for advance payment or payment):

- For projects or project components funded by the state budget in full and partly funded, partly borrowed according to the proportion, and aid amounts in cash arranged by the program or project owner in Vietnam's investment capital, the documents shall be implemented according to the provisions in this Decision.

- For projects or activities included in the career expenditure estimate funded by the state budget in full and partly funded, partly borrowed according to the proportion, and non-refundable aid, the documents shall be implemented according to the provisions in procedure 4 of Decision 230/QD-BTC dated February 24, 2020, of the Minister of Finance, along with the request for confirmation of valid career capital expenses.

In the case where the contract stipulates the use of temporary payment certificates instead of the completed work value determination sheet, the project owner and the contractor shall submit the temporary payment certificates.

In the case of confirmation at the State Treasury and payment at the serving bank, in addition to the above-mentioned documents, the investor (project owner) is not required to submit transfer documents.

(4.2) Quantity of documents:

Implemented according to the provisions in section (4.2) Part (4) of procedure 1 (investment spending case) in this Decision or section (4.2) Part (4) of procedure 4 (career expenditure case) in Decision 230/QD-BTC dated February 24, 2020, of the Minister of Finance. For the request for confirmation of valid career capital expenses, there should be 02 copies (original or certified true copy).

(5) Processing time:

No later than 03 working days from the date the State Treasury receives the complete and valid documents from the unit (for advance capital spending cases, the maximum processing time is 1 working day).

(6) Implementing subjects: Program or project owners of projects or project components funded by the state budget; projects applying lump-sum spending mechanisms; partially repayable loans according to the ratio.

(7) Processing agency: State Treasury (Central, provincial, district level).

(8) Results of implementation:

a) In the case of the State Treasury approving the payment request, advance spending of foreign capital spending: Confirmation from the State Treasury directly on the investment capital payment request or the request for confirmation of valid career capital expenses of the program or project owner (for cases of confirmation at the State Treasury and payment at the bank); Confirmation from the State Treasury directly on the investment capital payment request or the request for confirmation of valid career capital expenses and transfer documents from the program or project owner (for cases of payment at the State Treasury).

b) In the case of the State Treasury rejecting the payment request, advance spending of foreign capital spending: The State Treasury notifies the rejection of payment approval, capital withdrawal, or rejection of expenditure control confirmation (in written form or through the Public Service Portal of the State Treasury).

More details can be found in Decision 447/QD-BTC which comes into force from March 15, 2024.

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