Prime Minister of Vietnam to request rectification and promotion of management of advance payments for public investment funds

Prime Minister of Vietnam to request rectification and promotion of management of advance payments for public investment funds

To rectify and overcome existing issues in the management of advance payments from the state budget as witnessed in recent times, promptly recover overdue advance balances, and at the same time ensure the advance payments in the coming time are compliant, for the right purposes, right objects, and use the advance funds effectively, preventing overdue advances, the Prime Minister of Vietnam requires the Ministries, central agencies, and local authorities in Vietnam to:

- Based on the current legal provisions, strengthen strict and effective management of advance funds accordingly; be responsible for the aggregation, monitoring, and direct guidance of investors in implementing regulations on managing and advancing public investment funds from the state budget within the assigned capital plan.

- Conduct periodic and ad hoc inspections to rectify and resolve arising issues during the implementation process of the investors.

- In cases where the investment decision-maker decides on an advance rate higher than 30% of the contract value as stipulated in Article 10 of Decree 99/2021/ND-CP, it must be based on the progress of the contract work volume, the ability to recover the advance funds of the project, clearly evaluate the reasons and necessity before increasing the advance rate, and take full responsibility for their decision.

- People's Committees at all levels to direct local financial agencies to cooperate with the counterpart control and payment agencies to review overdue advance funds (if any), periodically (semi-annually and annually) report in order to take measures to fully recover overdue advance funds as stipulated in Clause 6, Article 10 of Decree 99/2021/ND-CP.

- Direct investors and project management boards regarding the advance payments of funds.

More details can be found in Directive 20/CT-TTg issued on July 12, 2024.

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