Regulations on return of advance to the land development funds in Vietnam

Regulations on return of advance to the land development funds in Vietnam​ (Image from the Internet)

1. Regulations on return of advance to the land development funds in Vietnam

The regulations on return of advance to the land development funds in Vietnam according to Article 18 of Decree 104/2024/ND-CP are as follows:

- return of advance from the project's approved capital:

+ Organizations that received advance as per Clause 1, Article 14 of Decree 104/2024/ND-CP shall prepare a application requesting return of advance to the land development funds and submit it to the State Treasury (where the organization opened its account). The application includes:

Request  for  repayment  of  advanced  capital  to  the  Land  Development  Fund  (clearly  stating  the  amount  of  advanced  capital  from  the  Land  Development  Fund  not  yet  repaid  and  the  repayment  period):  02  original  copies;

Withdrawal  document  as  per  the  Template  in  the  Appendix  issued  with  Decree  104/2024/ND-CP:  02  original  copies,  and  for  cases  submitting  via  the  State  Treasury's  online  public  service  portal,  the  documents  must  be  digitally  signed  as  required;

Decision  on  advancing  capital  from  the  Land  Development  Fund  issued  by  the  competent  authority  as  stipulated  in  Clause  1,  Article  16  of  Decree  104/2024/ND-CP:  01  copy;

Decision  on  the  annual  funding  plan  of  the  project  (including  the  amount  to  repay  the  advanced  capital  to  the  Fund):  01  copy;

Decision  on  repayment  of  advanced  capital  to  the  Land  Development  Fund  issued  by  the  investment  project  approving  authority:  01  original.

+ Within 03 working days from the date of receiving the complete application as stated in point a, Clause 1, Article 18 of Decree 104/2024/ND-CP, the State Treasury shall verify the legality of the documents submitted by the organization; if conformable, the State Treasury will transfer the money to the land development funds; if not conformable, the State Treasury will decline the transfer.

Other  procedures  regarding  transactions  with  the  State  Treasury  shall  follow  the  regulations  of  the  Government  of  Vietnam  on  administrative  procedures  in  the  State  Treasury's  field.

+ The finalization of the completed project shall follow the provisions of the law regarding the finalization of projects using public investment capital.

- Return of advance in other cases (not covered in Clause 1, Article 18 of Decree 104/2024/ND-CP):

+ Based on the outstanding advance amount (including previous amounts if any), the repayment period, and the repayment plan, the organization receiving advance as per Clause 1, Article 14 of Decree 104/2024/ND-CP shall report to the local competent authority to allocate it into the developmental investment budget of the corresponding level to repay the advance to the Fund.

+ The source for repaying advance to the land development funds is allocated from the developmental investment budget. The establishment, appraisal, and approval of the budget plan shall comply with the legal provisions on state budget management.

+ Based on the budget plan approved by the competent authority, the organization receiving advance shall prepare a application requesting return of advance to the land development funds and submit it to the State Treasury. The application includes:

Request  for  repayment  of  advanced  capital  (clearly  stating  the  amount  of  advanced  capital  from  the  Land  Development  Fund  not  yet  repaid  and  the  repayment  period):  02  original  copies;

Withdrawal  document  as  per  the  Template  in  the  Appendix  issued  with  Decree  104/2024/ND-CP:  02  original  copies,  and  for  cases  submitting  via  the  State  Treasury's  online  public  service  portal,  the  documents  must  be  digitally  signed  as  required;

Decision  on  the  budget  plan  from  the  competent  authority:  01  copy;Decision  on  repayment  of  advanced  capital  from  the  competent  authority  assigning  the  task:  01  original.

+ Within 03 working days from the date of receiving the complete application as stipulated in point c, Clause 2, Article 18 of Decree 104/2024/ND-CP, the State Treasury shall verify the legality of the documents; if conformable, the State Treasury will transfer the money to the land development funds; if not conformable, the State Treasury will decline the transfer.

Other  procedures  regarding  transactions  with  the  State  Treasury  shall  follow  the  regulations  of  the  Government  of  Vietnam  on  administrative  procedures  in  the  State  Treasury's  field.

+ The organization receiving advance shall complete the reconciliation of the repaid amount to the land development funds along with the annual state budget reconciliation.

- The repayment amounts stated in Clause 1 and Clause 2, Article 18 of Decree 104/2024/ND-CP shall be repaid to the land development funds to continue fulfilling the tasks prescribed in Decree 104/2024/ND-CP and must not be used for other purposes.

- Any unutilized advance must be returned to the land development funds within 30 days from the date of completion of the utilization of the advance for the proposed content.

2. Management of advance from the land development funds in Vietnam

The management of advance from the land development funds in Vietnam according to Article 17 of Decree 104/2024/ND-CP are as follows:

- The management cost of advance from the land development funds is equivalent to the interest rate applied to VND deposits of the State Treasury at the State Bank of Vietnam as decided by the Governor of the State Bank of Vietnam during the same period.

- The management cost of advance from the land development funds is included in other costs within the total investment of the project or the task budget.

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