CIRCULAR

GUIDANCE ON THE MANAGEMENT AND USE OF STATE BUDGET FOR SUPPORTING THE HUMAN RESOURCE DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES

Pursuant to Law on the State budget dated June 25 2015;

Pursuant to Law on support for small and medium-sized enterprises dated June 12 2017;

Pursuant to Decree No.163/2016/ND-CP dated December 21, 2016 by the Government on guidelines for Law on State budget;

Pursuant to Decree No.87/2017/ND-CP dated July 26 2017 by the Government defining the function, tasks, powers and organizational structure of ministries the Ministry of Finance;

Pursuant to Decree No .39/2018/ND-CP dated March 11 2018 by the Government detailing a number of articles of the Law on support for small and medium-sized enterprises;

At the proposal of the Director of the Enterprise Finance Department;

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Chapter I.

GENERAL PROVISIONS

Article 1. Scope

1. This Circular provides guidance on the estimation, management, use of State budget for supporting the development of human resources of small and medium-sized enterprises (SMEs) in accordance with Article 14 of Decree No. 39/2018/ND-CP dated March 11, 2018 by the Government on guidelines for law on support for small and medium-sized enterprises (hereinafter referred to as Decree No. 39/2018/ND-CP), including:

Support training in startup, business administration at basic and advanced level;

b) Support on-the-job training in manufacturing and processing SMEs;

c) Support trainees on SMEs in a training course at elementary level or courses that last fewer than 3 months (hereinafter referred to as job training in SMEs)

2. In case an SME meet the requirements of several programs/policies supporting the human resource development, such SME is allowed to choose the most beneficial program/policy and shall comply with regulations of that chosen program/policy.

Article 2. Regulated entities

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2. Entities receiving training in startup, business administration, on-the-job training in manufacturing and processing SMEs prescribed in Circular No. 05/2019/TT-BKHDT dated March 29, 2019 by the Ministry of Planning and Investment providing guidance on support for the human resource development in SMEs (Circular No. 05/2019/TT-BKHDT)

3. Employees in SMEs prescribed in clause 2 Article 14 of Decree No. 39/2018/ND-CP that are assigned to participate in training courses.

4. Ministries, ministerial-level agencies, People’s Committee of provinces and centrally-run cities (hereinafter referred to as provincial People’s Committees).

5. Agencies and units performing the task of supporting the human resource development in SME (hereinafter referred to as agencies) are:

Assigned agencies and units of ministries, ministerial-level agencies, provincial People’s Committees

b) Associations, organizations (socio - professional organizations, socio - political organizations, business associations, professional associations) which have training function in accordance with law.

6. Other organizations, individuals related to the use of State budget for supporting the human resource development in SMEs.

Article 3. Funds for implementation

The fund for supporting the human resource development in SMEs consists of the State budget (central and local budgets), contribution and support of enterprises, organizations, individuals and other lawful funding sources.

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a) As for the Central budget: the funding for supporting the human resource development comes from the annual budget estimate of ministries, ministerial-level agencies. Such funding from the State budget is also sponsored for associations with national or inter-provincial scope.

b) As for the local budget: The funding for supporting the human resource development of local SMEs comes from the provincial annual budget estimate.

2. SMEs, individuals participating in training contribute parts of the training fee.

3. Funds mobilized from domestic and foreign enterprises, organization, individuals, international organization in accordance with law.

Article 4. Principles of using the State budget for supporting the human resource development in SMEs

1. Funds from the State budget for supporting the human resource development in SMEs shall be estimated, managed and used for the right purpose in accordance with regulations in Law on State budget, other related documents and this Circular.

2. Agencies shall not use funds from the State budget for the organization of the governing body, investment in infrastructure or any spending other than supporting the human resource development in SMEs.

3. 3. Agencies shall be responsible to law for the management and use of funds; the accuracy, adequacy of documents relating to the use of funds; accounting, settlement and storing documents in accordance with regulations.

Chapter II.

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Article 5. Organization of training

The organization of training in startup, business administration at basic and advanced levels, on-the-job training in manufacturing and processing SMEs (including: scope, duration, attendants, number of attendants, training contents, training organization, training providers, responsibilities of agencies, SMEs and attendants during training) shall comply  with provisions of Circular No. 05/2019 TT-BKHDT.

Article 6. Spending contents of organizing training courses on startup, business administration covered by the State budget

1. Spending on a training course consists of:

General spending:

- On enrolment: invitation (over the phone or on the letter), announcement on means of mass media

- On lecturers: salaries (including remuneration for forming lesson plans); allowances for meals; spending on travel and housings for lecturers.

- On learning materials according to the syllabus (excluding the reference books).

- On lease of halls, classrooms and equipment for teaching and learning;

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- Beginning and closing ceremonies of the course

- Other spending serving directly for the class (electricity, water, sanitation, parking, filming, photographing and other direct spending)

b) In addition to the general spending prescribed in point 1 of this Article, the following spending shall be added to the business administration training at basic and advanced levels:

- On examination and evaluation (preparation of exam questions, invigilation, marking).

- On organization of domestic field trips for attendants (if any), including hire of vehicles for transporting attendants, remuneration for guest speaker at field trips.

- On certificate issuance.

- As for advanced courses of business administration, in addition to salaries; allowances for meals; spending on travel and housings for lecturers, the spending on translation may be added in case of inviting foreign lecturers.

2. The spending on the management of a training course, which shall not exceed 10% of total expenditure on a training course, includes:

- Spending on business expenses for officers in charge of managing the training course of the training provider in case the course is organized far from the training provider’s office.

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- Other spending serving the management of the training course (if any);

Article 7. Spending on organizing training on startup, business administration covered and the support from the State budget

1. The total expense for organizing a training course of startup, business administration covered by the State budget is the total of actual expense in accordance with spending contents prescribed in Article 6 of this Article.

2. The total expense for organizing a training course prescribed in clause 1 of this Article is covered from the following sources:

The amount of support from the State budget (central and provincial budget) is prescribed in point a clause 1 Article 14 of Decree No. 39/2018/ND-CO and in this Circular as follows:

i) The maximum amount of support from the State budget for a training course of startup is 100%, for a training course of business administration at basic level is 70% and for such course in advanced level is 50%.

ii) The spending level of each expenditure for a training course which is used for determining the amount of support from the State budget shall comply with Circular No. 36/2018/TT-BTC dated March 30, 2018 by the Ministry of Finance providing guidance on estimation, management, use and settlement of budget for training and retraining officials and public employees and the following principles:

- Regarding the spending under specific regulations in terms of standards/level (spending on salary of lecturers; refreshers; awards for attendants; spending on the preparation of exam questions, invigilation and marking; business expenses): such spending shall be conformable with the regulations. Spending for foreign lecturers (salary, transportation, meals, accommodation) covered by the State budget shall be the same as those for domestic lecturers.

- Regarding the spending without specific regulations in terms of standards/level: the spending shall be determined according to the contract and the actual invoices that are reasonable and lawful according to the legislation.

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Funds mobilized from Vietnamese or foreign enterprises, organizations and individuals (if any).

ii) Tuition fee collected from attendants. Training providers are encouraged to reduce the tuition fee by calculating the funding from government budget and taking full advantage of sponsorships.

3. Attendants in extremely disadvantaged areas (hereinafter referred to as extremely disadvantaged attendants) and attendants from women-owned SMEs shall be exempted from tuition fee when participate in training courses whose support from the State budget.

The amount of support for tuition fee is determined as follows:

Tuition fee support for 01 attendant

=

The total expense for organizing a training course

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The amount of support from the State budget

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Funds from mobilization (if any).

Number of attendants

In which:

- The total expense for organizing a training course is prescribed in clause 1 of this Article.

- The amount of support from the State budget is prescribed in point a, clause 2 of this Article.

- Funds from mobilization are prescribed in item i, point b, clause 2 of this Article.

b) Extremely disadvantaged attendants and attendants from women-owned SMEs are prescribed in Circular No. 05/2019/TT- BKHDT.

4. Training providers shall:

Formulate detailed  estimate, report on expenditure of the training course on the basis of provisions specified in Article 6, clause 1,2,3 Article 7, Appendix 1a and collect information according to Appendix 1 attached to this Circular.

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5. In case the training providers organize overseas field trips:

Spending for an overseas field trip consists of: working-trip allowance for organizers, attendants and staff; payment for the field trip destination (if any); spending for translation and other spending directly related to the field trip.

b) The spending for overseas field trips comes from the funds mobilized from domestic or foreign enterprises, organizations and individuals (if any) and contribution of attendants.

b) The total expense for organizing overseas field trips shall not be included in the total expense for a training course prescribed in clause 1 of this Article to determine the amount of support from the State budget.

Article 8. Spending contents of on-the-job training courses in manufacturing and processing SMEs covered by the State budget

The spending contents covered by the State budget for on-the-job training courses in manufacturing and processing SMEs are prescribed in Article 6 of this Circular, including spending on courses of basic and advanced business administration but not the following contents:

- On enrolment: invitation (over the phone or on the letter), announcement on means of mass media

- On lease of halls, classrooms, projectors and equipment for teaching and learning;

- On electricity, sanitation, parking.

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1. The total expense for organizing an on-the-job training course of in manufacturing and processing SMEs covered by the State budget is the total of actual expense in accordance with spending contents prescribed in Article 8 of this Article.

2. The total expense for training prescribed in clause 1 of this Article is covered from the following sources:

The amount of support from the State budget (central and provincial budget);

- The amount of support from the State budget for such training course is 50% but shall not be granted more than once a year.

- The spending level of each expenditure for a training course which is used for determining the amount of support from the State budget shall comply with regulations prescribed in item ii, point a, clause 2 Article 7 of this Circular.

b) The remaining spending (determined by the total expense for organizing a training course prescribed in clause 1 of this Article minus the amount of support from the State budget prescribed in point a, clause 2 of this Article) is covered from the following sources:

- Funds mobilized from Vietnamese or foreign enterprises, organizations and individuals (if any).

- Funds of the manufacturing and processing SME which organizes such courses. Training providers are encouraged to reduce the tuition fee by taking full advantage of sponsorships to reduce the contribution of SMEs.

3. Training providers shall:

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b) Inform to SMEs about the support from the State budget and the required contribution for organizing training.

4. Organize foreign field trips in accordance with regulations prescribed in clause 5 Article 7 of this Circular.

Article 10. Managing, using, settling the support from the State budget for training in startup, business administration and on-the-job training at manufacturing and processing SMEs

1. Agencies affiliated to ministries, ministerial-level agencies, provincial People’s Committees shall receive the support from the State budget for such training from the State Treasuries. The State Treasuries shall carry out the spending control and ensure that the funding from the State budget is used in conformity with the applicable regulations on financial spending and the regulations in this Circular.

2. As for organizations, associations other than governmental agencies, the funding from the State budget supporting the organization of training shall be provided by payment order.

Based on the notice of the Ministry of Planning and Investment of assignment, plans and estimates of implementation of an association providing training courses, the Ministry of Finance shall provide 70% of estimated funds to support the organization of training courses for such association.

b) After finishing the training courses and not later than December 20, the association shall submit the documents about settlement of funds to the Ministry of Finance.  The Ministry of Finance shall review the remaining amount of allocated funds or collect the unused funds based on the association’s performance and settlement of funds.

Chapter III

SUPPORT FOR VOCATIONAL TRAINING IN SMES

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The organization of vocational training in SMEs (including: scope, duration, attendants, number of attendants, training contents, training organization, training providers, responsibilities of agencies, SMEs and attendants during training) shall comply  with provisions of Circular No. 32/2019/TT- BLDTBXH dated December 26,2018 by the Ministry of Labor, Invalids and Social affairs providing guidance on support for vocational training in SMEs.

Article 12. Funds for vocational training and policies for employees in SMEs

1. An employee in SMEs who meets the requirements specified in clause 2, Article 14 of Decree No. 39/2018/ND-CP shall be exempted from tuition fee one time only and the maximum amount of exemption shall not exceed VND 2 million for one person per year.

2. The remaining spending of the vocational training course shall be covered by the SME and its employees, including:

- The difference between the tuition fee and the support prescribed in clause 1 of this Article (if any)

- Spending for meals, transportation and other incurred spending.

Article 13. Managing, using and settling of funds for vocational training and policies for employees in SMEs

1. Agencies assigned to implement policy supporting for vocational training in SMEs shall be responsible for the payment of funds for training facilities, based on  assigned tasks (as for the affiliated training facility) or contract (as for unaffiliated training facilities) The amount of payment is prescribed in clause 1 Article 12 of this Circular;

2. In case a training facility is affiliated to the agency which is assigned to implement the supporting policy on vocational training in SMEs:

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- The estimation, allocation and settlement of funds for vocational training in SMEs shall comply with regulations in Law on State budget and other related documents.

3. In case a training facility is unaffiliated with the agency which is assigned to implement the supporting policy on vocational training in SMEs:

- Based on plan and budget estimate of supporting for vocational training in SMEs approved by competent agencies, agencies assigned to implement such support shall select a training facility and sign the training contract in accordance with regulations of Law on bidding, Civil law and other related documents.  

- The settlement of funds for supporting the vocational training in a SME is done in accordance with the signed contract but only 70% of allocated funds shall be provided before ending the contract.

4. Training facilities shall formulate detailed  estimate, report on expenditure of the training course on the basis of provisions specified in Appendix 2a and 2b to the agency assigned to implement the supporting policy on vocational training in SMEs for information collection as prescribed in Appendix 2 attached to this Circular. 

Chapter IV.

ESTIMATION, COMPLIANCE AND CONSOLIDATION; REPORT REGIME, INSPECTION AND ASSESMENT

Article 14. Estimating, allocating and providing funds

The estimation, allocation and provision of budget estimates from the State budget for supporting the human resource development in SMEs shall comply with regulations in Law on State budget, other related documents and this Circular as follows:

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At the time of making annual budget estimates, based on the documents of the Ministry of Planning and Investment and the Ministry of Labor, War Invalids and Social Affairs guiding the formulation of plans to support the human resource development in SMEs, the need for training support and regulations on spending contents, spending levels in this Circular, agencies shall estimate the funds for implementation, in which specify the funding from the State budget (according to Appendix 1 and 2 attached to this Circular), and incorporate into their budget expenditure estimates  for submission to competent authorities according to the provisions of Law on State budget and other documents.

For the national consolidation, ministries, ministerial-level agencies, provincial People’s Committees, associations shall consolidate the estimated funds for supporting for training in SMEs and submit the report of such funds to the Ministry of Planning and Investment in case of training in startup, business administration and on-the-job training in manufacturing and processing SMEs, and to the Ministry of Labor, Invalids and Social affairs in case of vocational training.

b) Based on the national consolidation of estimates for supporting training in startup, business administration and on-the-job training in manufacturing and processing SMEs, the Ministry of Planning and Investment shall submit the budget estimate of such funds to the Ministry of Finance (Appendix 1c attached to this Circular).

b) Based on the national consolidation of estimates for supporting vocational training in SMEs, the Ministry of Labor, Invalids and Social affairs shall submit the budget estimate of such funds to the Ministry of Planning and Investment (Appendix 2c attached to this Circular) for the consolidation of funds for supporting the human resource development in SMEs, and to the Ministry of Finance.

2. Allocation and provision of estimates

As for the Central budget: Based on the estimation of State budget for supporting the human resource development in SMEs approved by competent authorities, ministries, ministerial-level agencies shall allocate and provide the estimated funds for related agencies in accordance with the annual plan for implementing the support for the human resource development in SMEs by the Ministry of Labor, Invalids and Social affairs.

As for the local budget: Based on the estimation of State budget for supporting the human resource development in SMEs approved by competent authorities, provincial People’s Committees shall allocate and provide the estimated funds for related agencies in accordance with their annual plan for implementing the support for the human resource development in SMEs .

Article 15. Complying and consolidating of funds

1. Agencies shall manage and use the funds from the State budget for supporting the human resource development in SMEs in accordance with regulations in Law on State budget, other related documents and this Circular.

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Article 16. Report regime, inspection and assessment

1. The report of using funds from the State budget for supporting the human resource development in SMEs is included in the report of implementing the support for the human resource development in SMEs. Time of submission, report contents and responsibility of reporting shall comply with instructions of the Ministry of Planning and Development, the Ministry of Labor, Invalids and Social affairs.

2. The assessment, inspection of using funds from the State budget for supporting the human resource development in SMEs is one of a required content when conducting the assessment, inspection of implementing the support for the human resource development in SMEs.

Time of assessment, assessment contents and responsibility of agencies in conducting assessment, inspection shall comply with instructions of the Ministry of Planning and Development, the Ministry of Labor, Invalids and Social affairs.

b) Funds for conducting the assessment, inspection of implementing the support for the human resource development in SMEs comes from the following sources:

As for ministries, ministerial-level agencies, provincial People’s Committees, agencies affiliated to ministries and such agencies performing the task of supporting the human resource development in SMEs:

- The funds for conducting the assessment, inspection of implementing the support for the human resource development in SMEs (including: spending on organizing review conferences; working-trip allowance for officers) is allocated and consolidated in the annual estimate of state budget, the amount of allocation shall not exceed 3% of the total funds for supporting the human resource development in SMEs of an agency.

- The estimation, allocation and settlement of funds for conducting the assessment, inspection of implementing the support for the human resource development in SMEs shall comply with regulations in Law on State budget and other related documents

ii) As for associations assigned to support the human resource development in SMEs:  The funds for such assessment and inspection (including working-trip allowance for officers) comes from the mobilized, sponsored funds and other lawful sources thereof. The management, use and settlement of funds shall comply with financial regulations of such associations.

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IMPLEMENTATION

Article 17. Entry in force

1. This Circular takes effect on September 23 2019.

2. 2. Repeal the following regulations related to expenditures specified in Joint Circular No. 04/2014/TTLT-BKHDT-BTC dated August 13,2014 by the Ministry of Planning and Investment and the Ministry of Finance providing guidance on assisting the human resource development: Article 4, Chapter III, clause 1 Article 17, clause 2 Article 19.

3. 3. In case the referred legal documents in this Circular are amended, supplemented or replaced, the newer ones shall be applied.

4. 4. Any problem arising in the course of implementation should be reported to the Ministry of Finance for consideration and settlement./.

PP MINISTER
DEPUTY MINISTER




Huynh Quang Hai

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