06 New Policies Effective Early November 2016

1. Right to Use Funds in Financial Management of Vietnam Debt Trading Company

According to Circular 134/2016/TT-BTC on the Financial Management Regulations of the Vietnam Debt Trading Company Limited, the Company is authorized to proactively use its funds for business activities, such as:

- Purchasing debts and assets for business purposes in accordance with the law; prioritizing restructuring, rearranging, and converting ownership of State-owned enterprises;- Performing tasks assigned by the competent authorities in line with the Company's business sectors;- Repairing and upgrading assets;- Investing in and purchasing fixed assets to serve the Company's operations.

Circular 134/2016/TT-BTC takes effect from November 01, 2016, and applies from the 2016 financial year onwards.

1. Notes on Registering for Share Auction

Circular 115/2016/TT-BTC, amending Circular 196/2011/TT-BTC, provides guidance on the initial sale of shares and the management and use of proceeds from the equitization of enterprises that are wholly state-owned to transform into joint stock companies. Accordingly:

- If the Equitization Steering Committee (or the equitizing enterprise under delegation) has signed a Service Provision Contract for Auction Services with the Stock Exchange (SGDCK) before November 01, 2016, the equitizing enterprise will continue to register for share auctions in accordance with Circular 196/2011/TT-BTC;- If by November 01, 2016, the Equitization Steering Committee (or the equitizing enterprise under delegation) has not signed a Service Provision Contract for Auction Services with SGDCK, they will follow the guidelines set out in Circular 115/2016/TT-BTC.

Circular 115/2016/TT-BTC takes effect from November 01, 2016.

1. Forms of Withdrawal for ODA Loans, Preferential Loans from Foreign Donors

Circular 111/2016/TT-BTC (effective from November 01, 2016) regulates the methods of withdrawing ODA loans and foreign donor preferential loans for programs and projects that use official development assistance (ODA) and foreign donor preferential loans as follows:

- Budget Support Method: ODA funds, preferential loans disbursed to the State Budget for direct budget support programs/ results-based funding;- Program and Project Funding:- Direct Payment and Fund Transfer;- Payment Via Commitment Letter: At the borrower's request, the donor issues a commitment letter to reimburse the commercial bank for payments made to the contractor or supplier under a Letter of Credit (L/C) payment method.- Reimbursement: The donor reimburses the loan amount to an account designated by the borrower to refund eligible expenses to the project owner.- Advance Account: The donor advances a sum of money, opening a separate account for the project at the bank so the borrower can independently make regular and eligible project expenditures.

1. Conditions for Borrowing from the National Science and Technology Development Fund

Organizations and individuals wishing to borrow from the National Science and Technology Development Fund to implement scientific and technological tasks must comply with the regulations in Circular 14/2016/TT-BKHCN, effective from November 01, 2016. Specifically:

- Possess full civil legal capacity, civil act capacity, and bear civil responsibility according to the regulations;- Have sufficient professional capacity and material conditions to carry out the project;- Comply with loan security regulations as per Article 7 of this Circular and other relevant legal regulations;- At the time of the loan request, not have any overdue taxes, bad debts at credit institutions, foreign bank branches;- Have self-contributed capital of at least 20% of the total investment capital of the project.

Additionally, there are two notable policies in the fields of transportation and education:

1. Guidance on Traffic Participation When Seeing a Yellow Light at Circular 06/2016/TT-BGTVT on National Technical Regulations on Road Signs (effective from November 01, 2016)
2. Assessment of Primary Students According to Three Levels at Circular 22/2016/TT-BGDDT amending and supplementing certain provisions of the Regulations on Primary Student Assessment attached to Circular 30/2014/TT-BGDDT (effective from November 06, 2016)

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