Vietnam: Application and procedures for grant of approval for scheme for issuance of municipal bonds

The application submitted to the Ministry of Finance includes:

- The application form provided in Appendix 1 enclosed with Circular No. 100/2015/TT-BTC;

- The scheme for issuance of municipal bonds as regulated in Clause 2 Article 6 of Circular No. 100/2015/TT-BTC;

- A document approving the scheme for issuance of municipal bonds issued by the Provincial-level People’s Council or the Standing Board of the Provincial-level People’s Council as regulated in Clause 3 Article 6 of Circular No. 100/2015/TT-BTC;

- The Resolution promulgated by the Provincial-level People’s Council approving the estimate of provincial-government budget of the year in which municipal bonds shall be issued which must specify total domestic investment in fundamental construction;

- The list of social – economic development and investment projects which must be funded by the provincial-government budget regulated in the five-year plan approved by the Provincial-level People’s Council.

Within twenty (20) working days as from the receipt of a valid application as regulated in Clause 1 of this Article, the Ministry of Finance shall consider and comment on the scheme for issuance of municipal bonds. Elements to be considered:

- Eligibility for issuance of municipal bonds;

- The plan for issuance of municipal bonds;

- The limit on amount of funds raised for the provincial-government budget as regulated in the Law on state budget, the Law on public debt management and their instructional documents;

- The limit on the quantity of municipal bonds to be issued (if it is a project capable of capital recovery in the province).

More details can be found in Circular No. 100/2015/TT-BTC of the Ministry of Finance of Vietnam, which takes effect from August 01, 2015.

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