THE VIETNAM UNION OF FRIENDSHIP ORGANIZATIONS PEOPLE’S AID COORDINATING COMMITEE Managing Aid From Foreign Non- Governmental Organizations Final/Nov. 2013.

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THE VIETNAM UNION OF FRIENDSHIP ORGANIZATIONS PEOPLE’S AID COORDINATING COMMITEE Managing Aid From Foreign Non- Governmental Organizations Final/Nov. 2013

Legal documents Decree No. 12/2012/ND-CP issued on March 1 st, 2012 by the Government on the Regulation of Registration and management of aid from foreign NGOs; Circular No. 05/2012/BNG issued on November 12 th, 2012 by the Ministry of Foreign Affairs conducts the execution of Decree No. 2/2012/ND-CP; Decree No. 93/2009/NĐ-CP issued on October 22 nd, 2009 by the Government promulgates the regulations of management and utilization of aid from foreign non-governmental organizations. Final/Nov. 2013

Legal documents Circular No. 07/2010/TT-BKH issued on March 30 th, 2010 by the Ministry of Planning and Investment conducts the execution of Decree No. 93/2009/NĐ-CP Circular No. 225/2010/TT-BTC issued on December 31 st, 2010 by the Ministry of Finance promulgates the regulations of financial management of the Government for non-refundable aid from foreign Non-governmental organizations. Circular No. 109/2007/TT-BTC issued on September 10 th, 2007 promulgates the regulations of management of aid from foreign non-governmental organizations Final/Nov. 2013

Process of Approval Step 1: Signing Agreement on INGO’s aid Before signing agreement on INGO’s aid, the agency which receives the aid needs to send the draft of the agreement to competent agencies for approval. Parties are only allowed to sign the agreement after being approved by competent agencies with official documents. Final/Nov. 2013

Step 2: Submitting the application for project approval After signing the agreement with the donor, the agency which receives the aid needs to submit the application to competent agencies for appraisal and approval. Final/Nov. 2013

Application for approval includes: Letter of request for project approval submitted to competent agency; Agreement on INGO’s aid between the donor and the agency which receives the aid; Project/program documents following patterns of annex 1a, 1b, 1c are attached with the introduction; Supporting letters from the Heads of Ministries, departments, local authorities which are related to the project; Copy of Certificate of Registration of Operation or certification of legal entity status of the donor. Final/Nov. 2013

Step 3: Appraising, Approving Applications of INGO aid - Accessing the validation of application; - Consulting with related parties; - Appraisal: 2 ways to appraise the aid. Final/Nov. 2013

Step 4: Making decision of approval After completed appraising project’s details, competent agency will approve the project Final/Nov. 2013

Step 5: Starting the Project After being approved by competent agency, related agencies are responsible for managing the projects based on project documents, law and regulations; Related agencies should establish Project Managing Board (PMB). The decision on establishing the PMB should be sent to competent agency responsible for approving the project within 15 days after the issuance of the decision. Final/Nov. 2013

Circular No. 109/2007/TT-BTC issued on September 10 th, 2007 explains the regulation of State’s financial management for INGO aid that is not a part of national budget; Circular No. 225/2010/TT-BTC issued on December 31 st, 2010 explaining the regulation of State’s financial management for non-refundable INGO aid that is not a part of national budget. Legal Documents Final/Nov. 2013

Circular No. 109/2007/TT- BTC Circular No. 225/2010/TT-BTC 1. Types of aid Non-refundable ODA Final/Nov. 2013

Circular No. 109/2007/TT- BTC Circular No. 225/2010/TT-BTC 2. Aid receiversGovernmental agencies, including agencies of the Party, Congress, Supreme people’s court of Vietnam, Supreme people’s procuracy of Vietnam; Ministries, organizations that are equivalent to Ministries, Governmental organizations Final/Nov. 2013

Circular No. 109/2007/TT -BTC Circular No. 225/2010/TT-BTC 2. Aid receivers - State-owned enterprises - Organizations with specific characteristics based on Decision no. 68/2010/ QD-TTg Final/Nov. 2013

Circular No. 109/2007/TT- BTC Circular No. 225/2010/TT-BTC INGO aid and non-governmental agencies 3. Using purposes - To improve capacity of the agencies - For the development of community, not for the agency Final/Nov. 2013

INGO Aid Certifying 1. Financial agencies at all levels (Ministry of Finance, Provincial Department of Finance) are responsible for certifying INGO’s aid such as: goods imported from foreign countries, domestically purchased goods, money. Financial agencies would certify INGO’s aid based on an application form filled by the manager of the project. Final/Nov. 2013

INGO Aid certifying (continued) 2. Situations that don’t need to certify aid: + Aid in money to governmental budget. + Intangible aid. Final/Nov. 2013

Aid Certifying (continued) 3. Purposes: - Financial agencies could collect statistics of aid and draw balance of sheet. - Custom agency could conduct tax exemption or tax refund for INGO’s aid - The manager of the project could manage activities of the project and report to competent agencies. Final/Nov. 2013

Aid Certifying (continued) Templates of certifying aid - Form C1-HD/XNVT: form for certifying aid of imported goods - Form C2-HD/XNVT: form for certifying aid of domestically purchased goods and services - Form C3-HD/XNVT: form for certifying aid in cash Final/Nov. 2013

Form C1-HD/XNVT: Form for certifying aid of importing goods Final/Nov. 2013

Form C2-HD/XNVT: Form for aid of domestically purchased goods and services Final/Nov. 2013

Form C3-HD/XNVT: Form for certifying aid in cash Final/Nov. 2013

Regulation on Reporting and Drawing Balance Sheet  Report on project’s tenor and finance Bi-annual report; Annual report; Report of completion;  Supervised by Approving agency and related Ministries/ Departments Final/Nov. 2013