Vietnam’s guidelines on funding sources for provision of assistance for small and medium-sized enterprises from September 23, 2023

Vietnam’s guidelines on funding sources for provision of assistance for small and medium-sized enterprises from September 23, 2023

According to the Circular, funding sources for provision of assistance for SMEs include:

- State budget funding for recurrent expenditures, including central and local government budgets according to budget decentralization (hereinafter referred to as "state funding for assistance for SMEs")

- Donations and sponsorships of domestic and foreign enterprises, organizations, individuals, and other legal non-state funding sources (hereinafter referred to as “donations and sponsorships”).

Principles of managing and using funding for assistance for SMEs

Principles of managing and using funding for assistance for SMEs are as follows:

- Regarding state funding sources:

+ State funding sources for assistance for SMEs shall be implemented via state budget estimates assigned to agencies and organizations assisting SMEs. Procedures for preparation, decision, and assignment of estimates, compliance, accounting, audit, and settlement of state budget for assistance for SMEs shall comply with laws on the state budget, ensuring the intended purposes, subjects, expenditures, expense quotas, assistance level, and assistance principles according to Decree No. 80/2021/ND-CP, guidelines of Circular No.52/2023/TT-BTC, and relevant laws.  

+ The assistance shall be based on available resource balance capacity and order of priority in each period of the annual state budget.

- Regarding donations and sponsorships: the mobilization, management, payment, and settlement of funding shall comply with current laws. Any agreement with enterprises, organizations, and individuals on using donations or sponsorships to cover the costs that were initially covered by the state budget shall be strictly followed.

- Cost determination principles:

+ Regarding expenditures with specific standards and/or quotas stipulated in legal documents issued by competent authorities: the cost shall be determined in compliance with the stipulated regulations.

+ Regarding expenditures without any specific standard and/or quota: the cost shall be determined based on specific cases, characteristics, scope, and relevant factors with reference from similar costs determined within 12 months (if any) up until the cost determination time.

- Agencies and units managing and using funding for assistance for SMEs shall assume legal responsibility for:

+ Compliance with Clauses 1, 2, and 3 Article 4 of Circular No. 52/2023/TT-BTC;

+ Rationality, validity, efficiency, and thrift in the use of funding;  

+ Truthfulness, accuracy, transparency, and legal adequacy of relevant documents and certificates;  

+ Collection, expenses, recording, settlement, and archive of documents as per regulation.

See more details in Circular No. 52/2023/TT-BTC of the Ministry of Finance of Vietnam, which comes into force as of September 23, 2023 and replaces Circular No. 49/2019/TT-BTC and Circular No. 54/2019/TT-BTC.

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