THE GOVERNMENT

DECREES :

Article 1.- To issue together with this Decree the "Regulation on Management of the National Reserve".

Article 2.- This Decree takes effect from the date of its signing and replaces Decree No.142-HDBT of September 8, 1988 of the Council of Ministers (now the Government) promulgating the Regulation on National Reserve and the stipulations at other documents which are contrary to this Decree.

Article 3.- The Ministers, the Heads of the ministerial-level agencies, the Heads of the agencies attached to the Government, the Presidents of the People's Committees in the provinces and cities directly under the Central Government and the Head of the National Reserve Department shall have to implement the Regulation attached to this Decree.

On behalf of the Government

For the Prime Minister

Deputy Prime Minister

Chapter I

GENERAL PROVISIONS

Article 1.- The National Reserve Fund is part of the material wealth of the State which has been accumulated into the strategic reserve to be used for the following purpose: preventing and overcoming the consequences of natural calamities, serving security and defense work and fulfilling other tasks of the Government.

Article 2.- The National Reserve Fund shall be closely managed and come under the unified and centralized guidance of the Prime Minister, must ensure absolute secrecy and must be at all times ready to meet in the highest measure all needs and in all circumstances.

Article 3.- The managerial system of the National Reserve comprises: the National Reserve Department and the agencies and units managing special-purpose and specific national reserve goods under different Ministries and branches.

Article 4.- Goods and/or materials put into the National Reserve Fund (hereafter referred for short to as reserve goods) are essential goods in service of production, daily life as well as security and national defense.

Article 5.- The management of the national reserve goods shall be done according to the following assignment of responsibilities:

- The special-purpose and specific goods shall be directly managed by the Ministries and branches.

- The other goods shall be directly managed by the National Reserve Department.

The list of goods and the division of responsibilities in the management of each kind of reserve goods is stipulated by the Government in the appendix attached to this Regulation.

Article 6.- The National Reserve Agencies shall have to step by step perfect, modernize and dispose according to plan the system of national reserve storages in the areas of economic and defense strategic significance of the country in order to ensure safety, secrecy and also convenience for the storing and delivery of goods.

Chapter II

THE NATIONAL RESERVE PLAN

Article 7.- National reserve activities are conceived and executed according to annual and long-term plans and other decisions of the Prime Minister.

Article 8.- Bases for drawing up the National Reserve Plan:

- The strategy and plan for socio-economic development and security and defense of the State.

- The need of increasing the reserve potential and the capability of the State budget in each period.

- The technological process, the time of storage of the reserve goods and the related economic and technical norms.

Article 9.- Main contents of the National Reserve Plan:

- The plan for increasing the national reserve.

- The plan for rotational renewal of national reserve goods.

- The development and modernization of the material and technical bases

- Research on and application of scientific and technical advances.

- Training and fostering of officials and public employees.

- Financial balance for the national reserve activities.

Article 10.- The Reserve Agencies shall have to draw up the reserve plans according to the guidance and common regulations of the Ministry of Planning and Investment, the Ministry of Finance, the National Reserve Department, and send them to the National Reserve Department so that the latter may consolidate the needs and reach agreement with the Ministry of Planning and Investment and the Ministry of Finance before submitting the plan to the Prime Minister for decision.

Article 11.- Basing themselves on the annual plan assigned by the Government and the decisions of the Prime Minister, the Heads of the Reserve Agencies (the National Reserve Department, the Ministries and branches assigned with the task of managing reserved goods) shall assign the norms and tasks to the dependent units, and shall organize, guide and direct the implementation.

Article 12.- The National Reserve Department shall preside over and together with the Ministries and branches concerned inspect the implementation of the reserve plan and consolidate them to report to the Prime Minister and suggest solutions to the implementation of this plan.

Chapter III

STORING, DELIVERING AND PRESERVING NATIONAL RESERVE GOODS

Article 13.- Cases which warrant the storing of national reserve goods:

- To increase the reserve according to plan and the decisions of the Prime Minister.

- Rotation for renewal of goods according to plan.

- Internal transfer among the managerial units.

- Storing new goods.

Article 14.- Cases which warrant the issue of national reserve goods:

- Issue for sales according to plan and issue by decision of the Prime Minister.

- Rotation for renewal of goods according to plan.

- Internal transfer among the managerial units.

- Issue of other goods.

Article 15.- All storing and issue of reserve goods must be done according to the right category, quantity, specifications and quality as prescribed.

Article 16.- In case a quantity of reserve goods are impaired or decrease in quality due to natural calamities or fires and must be handled immediately, the Head of the Reserve Agency shall guide the filling of legal procedures and is allowed to resolve the question immediately to limit the damage, but must later identify the cause and responsibility for the damage and report to the Prime Minister and the agencies concerned.

Article 17.- In case the reserve goods are found in excess in the process of preservation, the Reserve Agency shall have to fill the procedures and record an increase of the national reserve fund.

With regard to the deficiency of goods within the norms, the Head of the Reserve Agency shall complete the procedures to record the decrease in the National Reserve Fund and report the accounts to the Ministry of Finance.

In case the goods are found under the prescribed level, damaged or deficient due to objective or subjective reasons, the Head of the Reserve Agency shall have to report to the Prime Minister. If it is due to a subjective cause, the concerned agency shall, depending on the character and extent of the violation, be subject to administrative sanctions or examined for criminal liability as prescribed by law.

Article 18.- The National Reserve Agencies shall have to report the periodical inventory of the national reserve to the Prime Minister, the Ministry of Planning and Investment, the Ministry of Finance and the National Reserve Department.

Article 19.- The reserve goods must be preserved according to the prescribed order and rules, stored in the right storages, at the right places, and must be accompanied with dossiers recording the quantity, quality and value and the developments in the process of storing, issue and preservation.

The Heads of the Reserve Agency must guide and regularly check the maintenance of the reserve goods, and detect and prevent any violations of the order and rules for maintenance work.

Chapter IV

FINANCIAL MANAGEMENT OF NATIONAL RESERVE

Article 20.- The financial source for the national reserve activities shall be supplied by the State budget. It comprises the fund of reserve goods, the fund for investment in capital construction, and the fund for regular activities.

- The Head of the Reserve Agency shall take responsibility for guiding the dependent units to manage and use the financial sources of the national reserve for the right purposes, according to the prescribed regime and in an efficient manner.

Article 21.- Management of national reserve fund and goods:

- The fund for the purchase of reserve goods, including the State budget supplementary allocation supplied by the Ministry of Finance according to the annual plan already ratified by the Prime Minister, and the fund obtained from the recovery of debts or the sale of reserve goods allowed to be retained in the accounts of the reserve agency at the State Treasury. The Reserve Agency is entitled to use this fund to purchase reserve goods according to the yearly plan, the remainder must be remitted to the State Budget.

- With regard to the storing and issue of reserve without payment in cash as decided by the Government or the financial regime, or the price differences decided by the competent agencies, the Reserve Agencies are entitled to account as increases or decreases of the corresponding reserve fund and report the balance of accounts to the Ministry of Finance.

Article 22.- Management of the capital construction fund:

The fund for capital construction used to purchase equipment or invest in the construction of new storage facilities for reserve goods or support facilities and other material bases shall be supplied by the State budget. The Head of the Reserve Agency shall have to guide and control the dependent units and must take responsibility before the Government for the management and use of the fund in conformity with the Regulation on the Management of Investment and Construction and other current regulations of the State.

Article 23.- The fund for the activities of the Reserve Agencies shall be supplied by the State according to the norms and the plans and the current financial regime. This includes the fund for the activities of the managerial apparatus, the fund to cater for the maintenance and protection of the reserve goods, for scientific research and application of technical advances, the training and fostering of personnel...

The Head of the Reserve Agency shall have to guide and control the use of the fund by the dependent units to ensure that they will be used according to the right purposes, right norms and in an economical manner.

Article 24.- Storing and issue prices of reserve goods: the storing price is the purchase price plus the storing fee, the issue price is the selling price minus the issue fee.

The purchase or selling of reserve goods must abide by the price and fee levels defined by the competent State agencies.

The purchase or selling of large batches of goods must be done in the form of bidding.

Article 25.- The storing and issue fee of reserve goods shall comprise the reasonable fees necessary for the storing and issue, and shall be defined by the competent State agencies.

In case the issue of reserve goods does not involve payment, or the storing and issue are for loan by decision of the Prime Minister, the unit receiving the reserve goods must pay the storing and issue fee to the Reserve Agency. In case the reserve agency receives an unplanned lot of goods on order from the Prime Minister, the State budget shall supply a supplementary fund to cover the reception fee for the Reserve Agency.

Article 26.- Basing themselves on the economic and technical norms ratified by the competent State agencies, the Reserve Agencies shall apply the system of package assignment of storing, issue and maintenance fee of the reserve goods on the principle that it shall be rewarded if it uses the fee sparingly, and shall have to pay compensation as prescribed by the financial regime and State law if it causes damage.

Article 27.- Accounting and settlement of accounts:

- Proceeding from the Ordinance on Accountancy and Statistical Work, the Regulation on the Organization of State Accountancy, and the unified accounting system of the State, the National Reserve Department shall prescribe the regime of accounting and accountancy in the system of Reserve Agencies after consulting the Ministry of Finance.

- The Reserve Agencies shall have to strictly observe the reporting, statistical, accountancy and accounts statement regime with regard to the competent State agencies and the higher levels.

Chapter V

PROTECTION, CONTROL AND INSPECTION OF NATIONAL RESERVE

Article 28.- The Reserve Agencies must strictly carry out the Ordinance on Protection of State Secrets and other regulations on protection of secrets in the National Reserve Service.

The Ministry of the Interior, the People's Committees of the provinces and cities directly under the Central Government shall guide, assist and create favorable conditions for the Reserve Agencies to ensure the safety of goods, and the offices and units of the State reserve.

Article 29.- The National Reserve Department shall conduct periodical and sudden inspection and control of the Reserve Agencies concerning the implementation of the reserve plan and the observance of the Government regulations related to the national reserve activities, control the observance of the rules, processes and norms in the maintenance of the reserve goods.

- The Reserve Agencies shall have to organize regular control and inspection of the carrying out of the tasks, plans, policies and laws according to the Ordinance on Inspection.

- When the Inspectorate, the specialized protection services, or the localities want to inspect or investigate a Reserve Agency or unit, they have to reach advance agreement with the Head of the concerned Reserve Agency about the plan, program, contents, scope and time of the inspection.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 30.- The Ministries, the ministerial level Agencies, the Agencies attached to the Government, and the People's Committees of the provinces and cities directly under the Central Government shall, in conformity with their service or territorial managerial functions, create favorable conditions for the National Reserve Agencies to well accomplish the task of storing, issue, protecting, maintaining, and transporting the reserve goods, and ensure secrecy and safety for the national reserve activities; carry out and guide the dependent agencies to carry out seriously the decisions of the Government related to the national reserve activities.

Article 31.- The Head of the National Reserve Department shall preside over and in collaboration with the Ministry of Planning and Investment, the Ministry of Finance and the concerned agencies, each within their respective functions, tasks and powers, guide and organize the implementation of this Regulation.

On behalf of the Government

For the Prime Minister

Deputy Prime Minister

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III

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IV

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VI

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VII

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- Paddy, rice

- Salt

- Ferrous metals

- Non-ferrous metals

- Motor vehicles

- Construction machines

- Generators

- Hydraulic engines

- Tyres and tubes, dry battery

- Car petrol

- Fuel oil

- Aircraft fuel

- Medicine and chemicals used in the production of medicines to prevent and treat diseases of plants and animals

- Rice seeds and a number of seeds of plants

- Materials for prevention of floods and rescue of dykes (stone and wire mesh cages to hold stones...)

- Medicine and materials to produce medicament for man

- Medical equipment: mobile scanners, artificial lungs, field operating theater...

- Special fuel for defense uses

- Lubricants and grease for defense uses

- Metals and assorted materials for production and repair of weapons, military equipment and ammunition

- Vehicles, machinery, equipment and accessories for special defense uses

- Special tyres (for aircraft, artillery...)

- Special use battery

- Explosives and military-use explosives

National Reserve Department

National Reserve Department

National Reserve Department

Ministry of Trade

Ministry of Agricultural and Rural Development

Ministry of Health

Ministry of Industry

Ministry of Defense

Ministry of the Interior

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Vietnam Television