Regulation on scope of management of national defense and security production activities in Vietnam

Regulation on scope of management of national defense and security production activities in Vietnam (Internet image)

The Law on defense and security industry, industrial mobilization 2024 was approved by the 15th National Assembly of the Socialist Republic of Vietnam, 7th session on June 27, 2024.

Regulation on scope of management of national defense and security production activities in Vietnam

According to Article 14 of the Law on defense and security industry, industrial mobilization 2024, the scope of management of national defense and security production activities in Vietnam is stipulated as follows:

- Scope of management of national defense and security production activities in Vietnam includes:

+ Formulating and approving the list of national defense and security products; national defense production plans, security production plans;

+ Assigning tasks, placing orders, bidding;

+ Ensuring production;

+ Organizing production;

+ Acceptance and handover of products;

+ Reporting, inspection.

- The Ministry of National Defense and the Ministry of Public Security formulate and implement national defense production plans and security production plans within their scope of management.

- The Minister of National Defense and the Minister of Public Security shall, within their respective functions and powers, detail section 1, Article 14 of the Law on defense and security industry, industrial mobilization 2024.

Regulation on requirements for managing national defense and security production activities in Vietnam

- Ensure a close combination of research, design, manufacture, production, repair, exploitation, and use of technical weapons, and operational technical equipment.

- Clearly define the responsibilities of agencies and units in managing national defense and security production activities; closely inspect and supervise the quality, schedule, and production process from the planning stage to product acceptance and handover.

- The provision of national defense and security products is implemented through task assignment, ordering, and contractor selection forms as stipulated by this Law and the law on bidding. Priority is given to task assignment, ordering national defense and security products at core defense industrial facilities, and core security industrial facilities according to national defense production plans and security production plans.

- National defense production plans and security production plans must be aligned with the equipment needs and ensure the maintenance of production capacity of national defense and security production lines.

- The assignment of tasks, ordering, and bidding for the production of national defense and security products must ensure confidentiality according to the law on state secret protection.

(Article 13 of the Law on defense and security industry, industrial mobilization 2024)

Financial resource management for national defense and security

- Priority is given to allocating resources in the 05-year financial plan, the 03-year financial-budget state plan, and the annual state budget estimate for national defense and security production tasks of core defense industrial facilities and core security industrial facilities based on the state budget's balancing capabilities.

- The state ensures the provision of initial charter capital, additional investments, and increases in charter capital from the state budget for core defense and security industrial facilities.

- In urgent cases, the central budget contingency can be used to perform investment and production tasks of national defense and security industrial products as stipulated by the law on state budgets.

- Post-tax profits from production and business activities of core defense and security industrial facilities, after deduction for funds according to the law, shall be entirely used for the following tasks as regulated by the Government of Vietnam:

+ Deduct for the National Defense and Security Fund;

+ Support research, manufacture, production of new, high-tech products, and compensate for unsuccessful research costs for strategic technical weapons and special operational technical equipment;

+ Submit to the state budget the remaining post-tax profits after deductions for tasks at points a and b mentioned above to allow the Ministry of National Defense and the Ministry of Public Security to assign production tasks or procure technical weapons and operational technical equipment at core defense and security industrial facilities.

- The budget for procurement, production of strategic technical weapons, and special operational technical equipment, if not fully utilized, can be carried over until the contract completion or task termination.

- The Government of Vietnam provides detailed regulations for Article 21 of the Law on defense and security industry, industrial mobilization 2024.

(Article 21 of the Law on defense and security industry, industrial mobilization 2024)

More details can be found in the Law on defense and security industry, industrial mobilization 2024, which comes into force in Vietnam from July 1, 2025.

Le Nguyen Anh Hao

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