Vietnam: State budget expenditures for foreign activities

1. What is the State Budget?

According to Clause 14 Article 4 of the Law on State budget 2015 of Vietnam, State budget means all the expenditures and revenues of foreign that are estimated and realized over a certain period of time decided by competent authorities in order to perform the functions and tasks of the State.

State budget includes:

- Central government budget means state budget revenues that are given to the central regulatory agencies and state budget expenditures within the liabilities of central regulatory agencies.

- Local government budget means state budget revenues that a local government may use, additional funding from central government budget to the local government budget, and state budget expenditures within the liabilities of the local government.

(Clauses 13 and 15 Article 4 of the Law on State budget 2015 of Vietnam)

2. State budget expenditures for foreign activities

2.1. Central government budget expenditures for foreign activities

- Recurring expenses:

+ Expenses for bilateral and multilateral state-level diplomatic activities.

+ Expenses for negotiation, participation, signing and implementation of treaties, aid and loan agreements and international agreements.

+ Expenses to ensure the operation of overseas Vietnamese agencies.

+ Expenses for activities related to national border and territorial work.

+ Expenses to protect the interests of the State, the legitimate rights and interests of Vietnamese citizens and legal entities abroad in accordance with the provisions of Vietnamese law and international law.

+ Expenses to support community work, create favorable conditions for overseas Vietnamese to stabilize their lives and integrate into the social life of the host country, preserving the cultural identity of the Vietnamese people according to the provisions of law; expenses for management of Vietnamese laborers working abroad.

+ Expenses for diplomatic activities and international integration of Vietnam; promote cooperation, exchange and understanding, and strengthen friendship in all fields.

+ Expenses for people's external activities of central agencies of mass organizations, which are funded by the state budget or supported according to the tasks assigned by the State.

+ Expenses for external information and propaganda activities and management of information and press activities of foreign reporters.

+ Expenses for organizing events and activities to introduce and promote Vietnamese goods, services and labor, investment promotion, trade, science and technology, culture, sports, tourism, and external information abroad.

+ Expenses for collecting and purchasing valuable economic information; verification of economic partners; activities to mobilize partners, business customers, investors, transnational corporations, large companies in foreign regions and localities to promote trade, investment, tourism, science and technology, and expand labor export markets.

+ Expenses for commendation and reward for organizations, collectives and individuals with outstanding achievements in performing state foreign affairs tasks of ministries and central agencies; expenses and rewards for organizations, collectives and individuals with outstanding achievements in performing people-to-people diplomacy tasks of central agencies of mass organizations whose operation funds are guaranteed by the state budget or supported according to the tasks assigned by the State.

+ Expenses for training and fostering professional knowledge and foreign languages for officials and public employees doing foreign affairs; expenses on scientific research to directly serve the consulting and forecasting of the Party and State's foreign policy and strategy.

+ Expenses for rental, procurement and repair of assets, equipment and means of transport at home and abroad in order to ensure security, safety, confidentiality and foreign relations.

+ Expenses for rental, repair and maintenance of headquarters, housing, modernization of domestic and foreign facilities in order to ensure security, safety, confidentiality and external requirements.

+ Expenses for renovating and upgrading existing facilities in the country and working offices, foreign offices, housing for staff of overseas Vietnamese agencies owned by Vietnam.

+ Expenses for ensuring the operation of the apparatus serving the external affairs of ministries and central agencies.

+ Expenses for other foreign professional activities assigned by the Party and State in accordance with law.

- Expenses for investment and development:

+ Expenses for construction of works related to national landmarks.

+ Buy, build, renovate and upgrade domestic facilities in service of foreign affairs.

+ Buy, build, renovate and upgrade physical facilities of overseas Vietnamese agencies.

+ Expenses for long-term house and land lease (over 30 years) for implementation of investment projects on construction and renovation of offices and houses of overseas Vietnamese agencies.

- Expenses for aid according to agreements and commitments with the Governments.

(Article 5 of Decree No. 117/2017/NĐ-CP of Vietnam’s Government)

2.2. Local government budget expenditures for foreign activities

- Recurring expenses:

+ Expenses for cooperation and exchange activities with foreign countries in politics, national defense, security, economy, culture and society; serving cultural diplomacy under the tasks of the locality.

+ Expenses for negotiation, participation, signing and implementation of international agreements within the competence of localities in accordance with the law on signing and implementation of international agreements.

+ Expenses for external activities related to the management of national borders and territories within the tasks of the locality.

+ Expenses for people's external activities of mass organizations in the locality, which are funded by the state budget or supported according to the tasks assigned by the State.

+ Expenses for serving overseas Vietnamese; expenses for protecting the legitimate rights and interests of Vietnamese citizens abroad according to the provisions of Vietnamese law and international law within the functions and tasks of the locality.

+ Expenses for the management of activities of foreign organizations and individuals in the locality.

+ Expenses for economic diplomacy; management, mobilization and receipt of foreign non-governmental aid in the locality.

+ Expenses for information and propaganda activities abroad and manages information and press activities of foreign reporters in the locality.

+ Expenses for activities in service of recommending, considering and awarding forms of commendation at the State and provincial levels for foreign collectives and individuals who have been working in the locality with outstanding achievements are recognized by the locality; activities in service of receiving forms of commendation from international organizations and foreign organizations.

+ Expenses for reward for organizations, collectives and individuals with outstanding achievements in performing people-to-people diplomacy tasks of mass organizations in the locality which are funded by the state budget or supported according to the tasks assigned by the State.

+ Expenses for training and fostering professional knowledge, skills and foreign languages for officials and public employees doing foreign affairs in the locality.

+ Expenses for repair, renovation and upgrading of existing physical facilities in service of foreign affairs.

+ Expenses to ensure the operation of the apparatus in service of the local foreign affairs.

+ Expenses for performing other external tasks as prescribed by law.

- Expenses for investment and development: New construction, renovation and upgrading of physical facilities in service of foreign affairs.

(Article 6 of Decree No. 117/2017/NĐ-CP of Vietnam’s Government)

Thanh Rin

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