THE GOVERNMENT

DECREES:

Chapter I

Article 1.- Position and functions

The Finance Ministry is a governmental agency, performing the function of State management over finance, State budget, taxation, charges, fees and other State budget revenues, the national reserve, State financial funds, financial investment, enterprise finance and financial service activities (hereinafter referred collectively to as the finance - budget domain), customs, accountancy, independent audit and pricing nationwide; performing the State management over public services in the domains of finance - budget, customs, accountancy, independent audit and pricing; and representing the owner of the State's capital portions at the enterprises according to the provisions of law.

Article 2.- Tasks and powers

The Finance Ministry shall have to perform the tasks and exercise the powers prescribed in the Government's Decree No. 86/2002/ND-CP of November 5, 2002 defining the functions, tasks, powers and organizational structures of the ministries and ministerial-level agencies as well as the following specific tasks and powers:

1. To submit to the Government and the Prime Minister bills, draft ordinances and other draft legal documents on the domains of finance - budget, customs, accountancy, independent audit and pricing.

2. To submit to the Government and the Prime Minister strategies, development plannings and long-term, five-year and annual plans on the domains under its management.

3. To promulgate decisions, directives and circulars on matters under its management.

4. To direct, guide, inspect and take responsibility for the implementation of legal documents, strategies, plannings and plans after they are approved, and other legal documents on matters under its management; to conduct the work of information propagation, dissemination and education of the legislations on the domains under its management.

5. Regarding the State budget management:

a/ To submit to the Government the State budget estimates and annual plans on distribution of the central budget, the adjusted State budget estimates in case of necessity, make final settlement of the central budget and the State budget; to coordinate with the Ministry of Planning and Investment in estimating the development investment expenditures, and making plans on distribution of capital construction investment expenditures, supplements to the State reserves, the State credit support, and the central budget expenditures for stock and joint-venture capital contribution.

b/ To submit to the Prime Minister for decision the assignment of the budget revenue and expenditure tasks to each ministry, ministerial-level agency attached to the Government and other central agencies, and the revenue and expenditure tasks and division percentage (%) for divisible revenues as well as the level of supplement from the central budget to each province or centrally-run city according to the provisions of the State Budget Law.

c/ To submit to the Prime Minister for decision or decide according to the Government's power decentralization the use of the central budget reserves, the use of the central financial reserve fund and other financial reserve sources according to the provisions of law.

d/ To submit to the Government options for use of the central budget's revenue increase in cases where the actual revenue level is higher than the estimated level decided by the National Assembly and options for reduction of a number of expenditures in cases where the actual revenue level is lower than the estimated level; to coordinate with the Ministry of Planning and Investment in submitting to the Government options for use of increased revenue amounts for the development investment according to the provisions of law.

e/ To evaluate the final settlements of budget revenues and expenditures of the ministries, ministerial-level agencies, agencies attached to the Government and other central agencies; to evaluate the final settlements of local budgets.

f/ To assume the prime responsibility and coordinate with the ministries, ministerial-level agencies, Government-attached agencies, other central agencies and the provincial-level People’s Committees in elaborating budget allocation norms, and budget expenditure regimes, criteria and norms before submitting them to the Government and/or the Prime Minister for promulgation or promulgate them according to the Government's power decentralization for uniform implementation throughout the country.

g/ To guide the requirements, contents of and time limit for making the State budget estimates; to inform the estimate check numbers regarding the total level and the level in each domain of budget revenue and expenditure to the ministries, ministerial-level agencies, agencies attached to the Government and other central agencies as well as total revenue and expenditure and some important expenses for each province or centrally-run city.

h/ To organize the State budget implementation and execute the central budget according to its competence; to monitor and urge the organization of implementation of budget estimates of all levels.

i/ To inspect the allocation of assigned budget estimates of the ministries, ministerial-level agencies, agencies attached to the Government and other central agencies; to guide the budget management and administration by the ministries, branches and localities; to direct and inspect the performance of the budget revenue and expenditure tasks by the ministries, ministerial-level agencies, agencies attached to the Government, other central agencies and localities;

j/ To organize and direct the accounting and final settlement of the State budget, and periodically report on the implementation of the budget revenue and expenditure estimates according to the provisions of law.

k/ To make advance payments for important and urgent tasks, which are determined as belonging to the following year's estimates but must be performed right in the current year, have not yet been included in the current year's budget estimates and cannot be sufficiently funded with the reserve source; to coordinate with the Ministry of Planning and Investment in proposing the Prime Minister to make advances for national projects and works as well as group-A capital construction projects which are eligible for application of the Regulation on investment and construction management, currently under construction and need to be speeded up;

l/ To be responsible for recovering the central budget estimates' advanced expenditures.

6. Regarding the management of collection of taxes, charges, fees and other State budget revenues:

a/ To uniformly manage, and be responsible for directing and inspecting the organization of, the collection of taxes, charges, fees and other State budget revenues in compliance with law by the tax offices, customs offices and other agencies which are assigned by the State the task of collecting taxes, charges, fees and other State budget revenues;

b/ To submit to the Prime Minister for handling or handle according to its competence the tax exemption, reduction, reimbursement, retroactive collection and sanctioning of tax-related violations according to the provisions of law; as well as issues arising in the course of implementation of the bilateral or multilateral treaties on taxation.

c/ To promulgate regulations on procedures and professional processes for the collection of taxes, charges, fees and other State budget revenues according to the provisions of law; to provide professional guidance on tax calculation, tax payment, issuance of tax collection orders and other relevant professional operations.

d/ To inspect, examine and control all State budget revenue sources, the observance of the State’s regulations on State budget collection and remittance and the handling of violations according to the provisions of law.

7. Regarding the management of the State budget fund, the State reserve fund and other State financial funds:

a/ To uniformly manage, direct, inspect and take responsibility for the State budget fund deposited at the State Treasury; to manage the State reserve fund and other State funds according to the provisions of law;

b/ To organize the State budget spending in strict compliance with the assigned budget estimates when all the conditions prescribed by the State Budget Law are met;

c/ To implement the control, liquidation, payment and final settlement of expenses from the State budget made through the State Treasury system according to regulations;

d/ To provide professional guidance on the State budget fund collection, remittance, payment, liquidation and final settlement; to handle according to its competence violations in the management of the State budget fund, the State reserve fund and other State financial funds;

e/ To promulgate regulations on the financial management regimes applicable to the State financial funds; to guide, inspect and supervise revenue and expenditure activities, and handle according to its competence violations of the financial regimes of the State financial funds;

f/ To inspect the management and use of the issuance reserve fund, the foreign currency reserve fund and the foreign exchange reserve fund of the State;

g/ To manage the accumulated fund for foreign debt repayment; to manage the State's centralized foreign currency fund according to the assignment by the Government.

8. Regarding the management of the national reserve:

a/ To coordinate with the Ministry of Planning and Investment in working out estimates and options for additional allocation of national reserve capital of the central budget to the ministries and branches assigned to take charge of the national reserves. To organize the direction and inspection of the implementation and take responsibility before the Government for the national reserve management;

b/ To promulgate regulations on the financial management regime, the bracket of prices and costs of purchase and sale of supplies and goods for national reserve, the process and duration of preservation of national reserve goods items; to guide, monitor and inspect the observance of the regulations on management, preservation, purchase, sale, export, import, exchange of goods as well as quality of national reserve supplies and goods managed by the ministries, agencies and State enterprises according to the assignment;

c/ To directly organize the management of a number of national reserve goods items according to the Governments regulations.

9. Regarding the management of the State assets:

a/ To submit to the Government and/or the Prime Minister for prescription the principles for managing the procurement of public assets in the State agencies and units;

b/ To submit to the Prime Minister for prescription the criteria and norms for use of assets in the State agencies and units;

c/ To submit to the Prime Minister for decision or decide according to its competence on the procurement, transfer, auction, liquidation of, or transformation of ownership over, the State assets according to the provisions of law;

d/ To guide, supervise and inspect the implementation of the State's regulations on procurement, use and management of the State assets; to sum up the situation of management of the State assets throughout the country according the Government's regulations;

e/ To uniformly organize the management of the State assets not yet assigned to any organizations or individuals for management or use.

10. Regarding the enterprises' finance and the management of State capital at enterprises:

a/ To submit to the Government and/or the Prime Minister for promulgation regulations on the regime of management of enterprise finance and the financial supervision mechanism applicable to various types of enterprises of all economic sectors; to guide and examine the uniform implementation thereof nationwide;

b/ To assume the prime responsibility for or participate in the evaluation of the State's capital investment in, or financial support for enterprises, and monitor and supervise the State's investment in enterprises after it is approved by competent authorities;

c/ To monitor, supervise, synthesize and assess the situation of the preservation and development of the State capital at enterprises throughout the country; to assume the prime responsibility and coordinate with other agencies in implementing the supervision regulation and appraising the effectiveness of enterprises' operation according to the Government's regulations;

d/ To act as an agency in charge of summing up the situation of exercise of the right to represent the owner of the State capital portions at enterprises according to the provisions of law; to handle according to its competence matters related to the State capital at enterprises according to the Government's power decentralization; to perform the task and exercise the right to represent the owner of the State capital portions at enterprises under its management according to the provisions of law.

11. Regarding the management of borrowing and repayment of the Government's domestic and foreign debts, and international aid sources:

a/ To submit to the Government and/or the Prime Minister the strategy and plans on the Government's domestic and foreign borrowings in line with the national social-economic development strategy as well as the national financial policy in each period;

b/ To submit to the Government and/or the Prime Minister the policy and regime of management of the Government's domestic and foreign borrowings and debt payment; to guarantee and grant the Government guarantees for enterprises (excluding credit institutions) to borrow foreign capital according to the provisions of law;

c/ To exercise the uniform State management over the Government's borrowings and debt payment, national borrowings and debt repayment; to perform the financial management of the Government's foreign borrowings, including: official development assistance (ODA), Governmental commercial loans and overseas issuance of the Government bonds;

d/ To represent the "borrower" on behalf of the Vietnamese Government and State; to negotiate and sign agreements on the Government's foreign loans under the Government's or the Prime Minister's assignment; to coordinate with the Ministry of Planning and Investment in balancing and allocating the State budget's reciprocal capital source; to allocate borrowed capital or designate State-run credit institutions or financial organizations to sublend capital to programs and projects on the approved list; to guide the inspection and control of the process of disbursement and management of use of the Government's foreign borrowing sources;

d/ To assume the prime responsibility and coordinate with the Ministry of Planning and Investment in working out plans on arrangement of capital sources for foreign debt repayment from the State budget;

e/ To synthesize and periodically report to the Prime Minister on the situation of borrowing, use of borrowed capital and repayment of the Government's and the nation's foreign debts according to the provisions of law;

f/ To uniformly manage international aid sources; to organize the reception, distribution and financial management of international aid sources according to the Government's regulations.

12. Regarding accountancy and audit:

a/ To submit to the Government and/or the Prime Minister for prescription or prescribe according to its competence the regime of accounting, auditing, reporting and financial - budgetary transparency for uniform implementation in the whole country;

b/ To promulgate regulations on accounting and auditing principles, standards and professional methods; professional criteria of auditors and chief accountants; criteria and conditions for establishment of accounting service enterprises and independent auditing enterprises;

c/ To guide, inspect and supervise the implementation of the State's accounting and auditing regulations. To uniformly manage the registration for application of enterprises' accounting regime. To have final says on discrepancies and disputes over independent auditing results.

13. Regarding the financial management of banks, non-bank financial institutions and financial services:

a/ To submit to the Government or the Prime Minister for approval the strategy for development of the fields of insurance business, lottery, betting and prized games;

b/ To manage, inspect and supervise the implementation of the State's regulations on insurance, lottery, betting and prized game business activities;

To issue and withdraw operation licenses of enterprises engaged in insurance, lottery, betting and prized game business activities according to the provisions of law;

c/ To perform the State financial management over the operations of the State Bank, commercial banks, policy banks and the State-run credit institutions and financial organizations according to the provisions of law;

d/ To financially guide, inspect and supervise organizations providing financial, accounting, auditing or tax consultancy services, non-bank financial organizations and organizations engaged in securities business and trading.

14. Regarding customs:

a/ To submit to the Government for prescription the customs procedures, customs inspection and supervision, conditions for registration and operation of customs clearance agents, the responsibilities of State agencies at border-gates, the operations of bonded and consignment warehouses, and the post-customs clearance inspection;

b/ To promulgate according to its competence documents guiding and directing the professional operation of customs inspection and supervision, post-customs clearance inspection, combating smuggling, and customs statistics according to the provisions of law;

c/ To organize, guide, direct, inspect and take responsibility for the performance of the customs service's tasks according to the provisions of the Customs Law and other provisions of law; to inspect and handle according to its competence acts of violation of the customs legislation.

15. Regarding the pricing:

a/ To submit to the Government and/or the Prime Minister the regulations on control of monopoly prices; the principles and methods for determining prices and price bracket of various land categories; to decide on prices of a number of important commodities and services according to the provisions of law;

b/ To evaluate pricing plans elaborated by ministries, branches and State enterprises for a number of important commodities and services, prices of products and goods ordered or price-subsidized by the State before they are submitted to the Government and the Prime Minister for decision;

c/ To prescribe the criteria for price evaluators and the conditions for provision of price evaluation services; to uniformly manage price evaluation activities according to the provisions of law;

d/ To guide, inspect and control the implementation of State's regulations on price management.

16. To issue public bonds and Government bonds and take part in the securities market management according to the provisions of law.

17. To organize and direct the statistical work in the fields under its State management.

18. Regarding the international cooperation:

a/ To undertake the international cooperation and integration in the fields under its State management according to the provisions of law;

b/ To work out plans and organize negotiations on bilateral or multilateral treaties on taxation (import and export duties, avoidance of double taxation), financial, accounting and customs services and other financial domains;

c/ To negotiate on and sign international finance agreements under the authorization by the State President or the Prime Minister; to represent the Vietnamese Government at bilateral or multilateral financial forums according to the Government's assignment.

19. To organize and direct the implementation of plans on scientific research and application of scientific and technological advances in the fields under its management according to the provisions of law.

20. To decide on specific undertakings and measures and direct the implementation of the operation mechanisms of public-service organizations in the fields under its management according to the provisions of law; to manage and direct the operations of its attached non-business organizations.

21. To perform the State management over the operations of associations and non-governmental organizations in the fields under its management according to the provisions of law.

22. To inspect, examine and settle complaints and denunciations; to fight corruption, negative acts, and handle according its competence or request the competent authorities to handle violations of the financial-budgetary management regime and other fields under its management.

23. Regarding the administrative reform:

a/ To submit to the Government the program on reform of the public finance management mechanism in service of the State administrative reform program in each period;

b/ To decide on and direct the implementation of its administrative reform program according to the objectives and contents of the State administrative reform program already approved by the Prime Minister.

24. To manage its organizational apparatus and payroll; to direct the implementation of the wage regime as well as the regimes and policies on preferential treatment, commendation and discipline toward officials, public servant and State employees under its management; to provide professional training and fostering to officials, public servants and State employees in the entire branch under its management.

25. To manage its assigned finance and assets and organize the implementation of allocated budget portions according to the provision of law.

Article 3.- Organizational structure

a/ The organizations assisting the Minister in performing the State management function:

1. The State Budget Department;

2. The Investment Department;

3. Department I (Party, security, defense, special...budgets);

4. The Administrative and Non-Business Finance Department;

5. The Tax Policy Department;

6. The Department for Finance of Banks and Financial Institutions;

7. The Insurance Department;

8. The Department for Accounting and Auditing Regulations;

9. The External Finance Department;

10. The International Cooperation Department;

11. The Legal Department;

12. The Organization and Personnel Department;

13. The Administration Finance Department;

14. The Office (with a representative office in Ho Chi Minh City);

15. The Inspectorate;

16. The Price Management Department;

17. The Information Technology and Financial Statistics Department;

18. The Public Asset Management Department;

19. The Corporate Finance Department;

20. The National Reserves Department;

21. The General Tax Department;

22. The General Customs Department;

23. The State Treasury;

b/ The non-business organizations under the Ministry:

1. The Financial Institute;

2. The Financial Magazine;

3. Vietnam Financial Times.

The Prime Minister prescribes the functions, tasks, powers and organizational structure of the General Tax Department, the State Treasury and the National Reserves Department.

The State Budget Department, the Investment Department, the Administrative and Non-Business Finance Department, the Department for Finance of Banks and Financial Institutions, the External Finance Department, the Tax Policy Department, the International Cooperation Department, the Organization and Personnel Department, the Administration Finance Department and the Office are allowed to set up their own sections upon decisions of the Finance Minister after reaching agreement with the Minister of the Interior.

The other non-business organizations under the Finance Ministry are decided by the Finance Minister according to the provisions of law.

Article 4.- Implementation effect

This Decree takes effect 15 days after its publication in the Official Gazette and replaces the Government's Decree No. 178/CP of October 28, 1994 on the tasks, powers and organizational structure of the Finance Ministry, Decree No. 01/CP of January 5, 1993 on the tasks, powers and organizational structure of the Government Pricing Committee, Decree No. 66/CP of October 18, 1995 on the functions, tasks, powers and organizational structure of the National Reserve Department and the previous stipulations which are contrary to this Decree.

Article 5.- Implementation responsibility

The Finance Minister, the other ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People's Committees of the provinces and centrally-run cities shall have to implement this Decree.

On behalf of the Government
Prime Minister
PHAN VAN KHAI