Competence to approve foreign grant aid for Vietnam

Competence to approve foreign grant aid for Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Competence to approve foreign grant aid for Vietnam

Competence to approve foreign grants to Vietnam under Article 7 of Decree 80/2020/ND-CP is as follows:

* The Prime Minister may approve:

- Aid amounts related to security, national defense and religion, and aid targeted to directly support the development of legal documents;

- Imported goods subject to decision of the Prime Minister in accordance with relevant laws;

- Other cases not prescribed in Clauses 2,3,4 of Article 7 of Decree 80/2020/ND-CP.

* The head of the managing agency may approve:

- The aid amounts not specified in Clause 1 of Article 7 of Decree 80/2020/ND-CP and the remedial aids granted directly to a ministry, branch or locality, regardless of the aid scope.

- The aid that the recipient is the organization whose establishment decision or charter or certificate of registration is issued by the managing agency, consistent with the functions and duties of the recipient, except for organizations established by the Ministry of Home Affairs.

* The Minister of Home Affairs shall approve aid amounts of associations, social funds and charity funds subject to decision of the Ministry of Home Affairs to permit the establishment and approve the charter.

* The President of the Central Committee of the Vietnam Fatherland Front may approve humanitarian relief with no specific address (The aid donor does not assign relief to a specific locality).

* Heads of associations or unions of associations set up under the Prime Minister's decision may approve aid amounts for agencies under their management according to law provisions.

2. Agency appraising foreign grant aid for Vietnam

According to Article 9 of Decree 80/2020/ND-CP stipulating the agency appraising foreign grant aid for Vietnam as follows:

- Program or project documents and non-project documents must be appraised as a basis for approval, signing and implementation.

- For aid subject to the approval of the Prime Minister specified in Clause 1, Article 7 of Decree 80/2020/ND-CP, the Ministry of Planning and Investment shall assume the prime responsibility for appraisal.

- For aid subject to the approval of the head of the managing agency specified in Clauses 2, 3, 4 and 5, Article 7 of Decree 80/2020/ND-CP to be implemented at the central level, the managing agency shall assign the relevant subordinate units to assume the prime responsibility for appraisal; at the local level, the Department of Planning and Investment is the lead appraising agency.

- Depending on the size and nature of the project, the appraising agency may invite central and local specialized agencies or consultancy organizations and independent consultants to assist them in the appraisal.

- Concerned agencies, organizations and individuals participating in the appraisal shall take legal responsibility for the appraisal checklist of non-project aid within the scope of their management responsibilities.

3. Principles of management and use of foreign grant aid for Vietnam

Principles of management and use of foreign grant aid for Vietnam according to Article 4 of Decree 80/2020/ND-CP are as follows:

- Aid management and use must comply with Vietnamese law. The aids shall be received, implemented and used only after it has been approved by the Vietnamese competent authorities. The aid money must come from a lawful source of money and assets.

- Not to receive goods (including supplies and equipment) on the list of goods banned from import as per the law.

- The managing agency is fully responsible for managing and using aid effectively.

- Cash flows received and spent on aid amounts must be effected through aid-receiving accounts, ensuring openness to the public and transparency, and fully reported according to the provisions of Chapters III and IV, V of this Decree.

- Aid classified as state budget revenues must be fully estimated, accounted and settled into the state budget.

- For aid not belonging to the state budget revenues, aid owners may manage by themselves and take responsibility for aid use purposes, aid use results, ensuring compliance with regulations of Vietnam and commitment to donors. The aid owner shall periodically report to the managing agency for consolidating and reporting to the Ministry of Planning and Investment for general consolidation.

- After 06 months from the date the aid is approved, if the aid has not been implemented without plausible reasons, the approval authority may revoke the decision on approval for receiving aid. The managing agency shall notify the donor of such revocation.

Le Truong Quoc Dat

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