Final settlement of investment capital for construction of overseas public investment projects

	Control of investment capital: Smooth coordination between the State Treasury and investors
	Need to be more aggressive with disbursing public investment
	Eliminate ineffective project, speed up the disbursement of public investment capital

Illustrated photo. Source: internet.

Separate regulations should be issued

According to the representative of the Investment Department under the Ministry of Finance, the implementation of construction investment projects of Vietnamese representative agencies and other Vietnamese agencies abroad must comply with Vietnamese law and international treaties and agreements between Vietnam and partner country, and the laws of that country. Therefore, the advance, payment and settlement of investment capital for these projects must follow legal principles different from principles applicable to domestic projects.

Specifically, in the control of capital payment for these projects, the governing body will be on behalf of the investors to prepare written request for payment to be sent to the State Treasury.

At the same time, the payment currency for projects can be Vietnamese Dong or other foreign currencies, so there should be a separate regulation on payment in foreign currencies, and a separate regulation on principles of revenue and expenditure statements at the State Treasury.

Besides, the management and settlement of investment capital for construction projects of Vietnamese representative agencies or other Vietnamese agencies abroad, as prescribed in Circular No. 120/2008 / TT-BTC are no longer appropriate, because the guiding grounds for this Circular are no longer valid as the 2002 State Budget Law was replaced by the 2015 State Budget Law, and the 2003 Construction Law was replaced by 2014 Construction Law;

At the same time, the management of public investment projects must also comply with the provisions of 2014 Law on Public Investment and construction projects of Vietnamese representative agencies or other Vietnamese agencies abroad, and must also comply with the provisions of the Law amending and supplementing a number of articles of the Law on representative agencies of the Socialist Republic of Vietnam in 2014.

Supplementing specialized dossiers

In order to overcome the above problems, the new Circular 107 issues regulations on the management, payment and settlement of investment capital in construction projects using public investment capital of Vietnamese representative agencies and other Vietnamese agencies abroad, including projects which are purchased, newly built, renovated, upgraded and for upgrading facilities; investment projects in long-term real estate leasing (over 30 years) to carry out investment projects on construction and renovation of offices and houses of Vietnamese agencies in foreign countries.

At the same time, the regulated entities are organizations and individuals related to the management, payment and settlement of construction investment projects of overseas Vietnamese agencies using public investment capital.

In terms of management principles, the Ministry of Finance stipulates: the advance and payment of capital for public investment projects of Vietnamese representative agencies shall be carried out in accordance with signed contracts and in line with the host country and the laws of Vietnam.

The inspection of allocation of investment capital in public investment projects of Vietnamese representative agencies and other Vietnamese agencies abroad is prescribed in Clause 1, Article 2 of Circular No. 52/2018 / TT-BTC of the Ministry of Finance on amending and supplementing a number of articles of the Circular on management and payment of investment capital funded by the state budget capital No. 08/2016 / TT-BTC and No. 108 / 2016TT-BTC.

For the advance and payment of investment capital, the Circular supplements a number of specialized dossiers and also stipulates the opening of accounts, advance and payment dossiers of investors to the governing Ministry of the State Treasury in line with Vietnamese laws, international laws and laws of the host country. At the same time, the Circular has supplemented the advance and payment forms suitable to each entity (investor, governing ministry, State Treasury) to ensure clear implementation.

The settlement of these projects is implemented in accordance with Circular No. 85/2017 / TT-BTC on investment capital settlement according to the annual budget and Circular No. 09/2016 / TT-BTC on settlement of projects completing the use of state capital.

Ministry of Finance has rectified the report on disbursement of investment capital VCN- According to the Investment Department, the Ministry of Finance has issued an official letter to request ...

The reporting regime is implemented in accordance with the Circular No. 82/2017 / TT-BTC of the Ministry of Finance regulating the reporting regime and form on the implementation of capital construction investment plans from the State budget and Government bond capital.