Vietnam: Regulations on project codes and construction investment capital funded from the state budget

Vietnam: Regulations on project codes and construction investment capital funded from the state budget (Illustrative image)

Under Circular 85/2014/TT-BTC, ministries, central authorities, and People’s Committees (PCs) at all levels in Vietnam allocate development investment capital for each project according to investment project codes and business lines (type, category) as follows:

For projects managed by ministries and central authorities:

- Based on the medium-term development investment capital plan (if any) and the annually assigned development investment capital plan, ministries and central authorities allocate annual capital plan targets to investors under their management who meet the stipulated conditions, ensuring compliance with the assigned capital levels; domestic capital structure, foreign capital structure, business line structure; and at the same time send the plan to the Ministry of Planning and Investment, the Ministry of Agriculture and Rural Development, the Ministry of Finance, and the State Treasury of Vietnam within the regulated timeframe for monitoring and management;

- The State Treasury of Vietnam (central) receives the detailed development investment capital plan allocated by ministries and central authorities for each project, and implements the transfer of the project capital plans (detailed with program codes, investment project codes, and business line codes (type, category)) from ministries and central authorities to the State Treasury of Vietnam (local) as a basis for capital control and payment;

- For ODA capital, ministries and central authorities send the allocated capital plan for each project to the commercial bank where the investor opens the account for capital transaction execution.

For investment capital managed by local authorities:

- Based on the medium-term plan (if any) and the annually assigned plan, PCs at all levels develop capital allocation plans and submit them to People’s Councils at the same level for decision. According to the resolution of the People’s Councils, PCs allocate and decide the investment capital plans for investors under their management who meet the stipulated conditions, ensuring compatibility with the assigned investment targets; domestic capital structure, foreign capital structure, business line structure; and at the same time send the plan to the Ministry of Planning and Investment, the Ministry of Agriculture and Rural Development, the Ministry of Finance, the Department of Finance, and the State Treasury of Vietnam within the regulated timeframe for monitoring and management and as a basis for capital control and payment;

- PCs at the district level send the investment capital plans to the Department of Finance, concurrently to the Division of Finance and Planning and the State Treasury of Vietnam (district) for monitoring and as a basis for capital control and payment.

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

Ty Na

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