b) Communication: Infrastructure, facilities and equipment serving publication and press operation of the government;

7. Broadcast, television and news media: Tasks, programs and projects on investing in construction of infrastructures, facilities and equipment serving broadcast, television and news media in order to perform essential political, social and public interest tasks.

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9. Environmental protection: Tasks, programs and projects serving any of following fields:

a) Environment: Infrastructures, facilities, environment warning and monitoring equipment, natural resource protection, remediation of environmental pollution, disposal of waste and wastewater, green growth, response to climate change and sustainable development;

b) Natural resources: Infrastructures, facilities and equipment for map surveying, meteorology, hydrology, geological survey and protection of natural resources;

10. Economic activities: Tasks, programs and projects serving any of following fields:

a) Agriculture, forestry, salt industry, irrigation and fishery: Infrastructures, facilities and equipment for agriculture, forestry, salt industry, irrigation and fishery; rural economy (including development of new rural areas, provision of clean water, rural area environmental hygiene assurance, development of crafts, rural craft villages together with households and cooperatives, placement and reposition of rural population, resettlement); development of plant and domestic animal breeds; planting and protecting forest; preventing and rectifying consequences of natural disasters, forest fire and diseases;

b) Industry: Power for rural areas, mountainous regions and island districts; tasks and projects in petroleum sectors according to decisions of the Prime Minister, infrastructure and equipment for currency printing and minting;

c) Traffic: Traffic infrastructure of road, railway, inland waterway, sea and airway transport;

d) Industrial parks and economic zones: Infrastructures of coastal economic zones, border economic zones and infrastructures of economic industrial parks and industrial clusters;

dd) Commerce: Local markets, wholesale markets, logistic centers, exhibition centers, import and export infrastructures;

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g) Storage: Infrastructures, facilities and equipment for storage, specialized storage, national storage, storage for documents and exhibits;

h) Tourism: Infrastructures for sustainable tourism development in tourism areas and provinces;

i) Telecommunications: Infrastructures, facilities, materials and equipment serving telecommunication objectives in order to execute political, social and essential public tasks;

k) Post: Infrastructures, facilities, materials and equipment serving postal objectives in order to execute political, social and essential public tasks;

l) Information technology: Digital information and economic infrastructures; modernization of information technology in agencies of the Communist Party and the government; application and development of information technology and databases; common national platforms, applications and services; cyber safety and security;

m) Planning: Planning objectives;

n) Public structures in urban areas;

o) Issuance of charter capital to policy banks and non-budget government financial funding; compensating issuance of preferential credit interest and administration fees; assisting enterprises investing in agriculture and rural areas; assisting small and medium enterprises according to Law on assistance for small and medium enterprises; assisting cooperatives according to Law on Cooperatives.

11. Operations of regulatory agencies, public service providers, political organizations and socio-political organizations: Tasks, programs and projects serving construction, renovation and upgrade of base offices, public affair houses and procurement of equipment of offices under political and government system; projects on procurement, construction and renovation of working offices, renovation and upgrade of houses, procurement of equipment of foreign Vietnam representative missions.

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13. Other tasks, programs and projects as per the law: Assisting investment for other entities and policies according to decisions of the Prime Minister; tasks, programs and projects considered as public investment that are not classified into any of the 12 sectors above.

Article 4. General principles regarding allocation of state budget-sourced public investment capital

1. Allocation of state budget-sourced public investment capital during 2021-2025 must comply with Law on Public Investment, Law on State Budget and relevant law provisions.

2. Ensure consolidation and unified management in terms of objectives, mechanisms and policies; decentralize in investment management as per the law, give more autonomy to ministries, central government authorities and local governments.

3. Allocation of state budget-sourced public investment capital must serve execution of development objectives and orientation of the country under the 10-year socio-economic development strategy of 2021-2030, national 5-year financial plan, 5-year public debt lending and repayment plan, plans according to Law on Planning decided or approved by competent authorities, and ensure sustainable development and balance between society and economy.

4. Conform to ability to balance state budget-sourced public investment capital within 5-year financial plan, and ensure macro-monetary balances and safety of public debt.  Promote reformation of public investment, reasonably calculate sources of central and local government budget, ensure leading role of central government budget; promote mobilizing non-state budget funding sources, attracting social funding sources to implement projects on investing in infrastructure.

5. Allocate investment capital in a concentrated and non-dispersive manner; ensure effectiveness of using investment capital. Only assign capital plan for projects whose investment procedures have been decided by competent authorities according to Law on Public Investment and relevant law provisions. Programs and projects whose investment guidelines have been decided by competent authorities and new projects must have capital allocation period no more than 6 years for group A projects, 4 years for group B projects and 3 years for group C projects. If the deadline mentioned above cannot be met, the Prime Minister shall decide on capital allocation period for projects that utilize central government budget and People's Councils of provinces shall decide on capital allocation period for projects that utilize local government budget.

6. Prioritize allocating capital to implement, boost progress in order to finish and utilize projects under the national target programs, vital national projects, programs and projects connecting regions and/or affecting multiple regions, promoting rapid and sustainable socio-economic development, protecting and caring people’s health, preventing and averting natural disasters, adapting to climate change (river and coastal erosion, salt-water intrusion, sea level rise, etc.) and ensuring water source security as soon as possible.

7. Prioritize allocation for mountainous regions, border areas, islands, areas where ethnic minorities reside, disadvantaged areas and particularly disadvantaged areas together with the national target program for socio-economic development in ethnic minority areas and mountainous regions during 2021-2030 in order to bridge the gap in terms of development, income and living standards between provinces and regions.

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a) Allocating adequate capital to repay outstanding debt of fundamental construction as specified under Clause 4 Article 101 of Law on Public Investment (if any);

b) Allocating adequate capital to repay advances that cannot be repaid in mid-term public investment plans of the previous phase (if any);

c) Allocating capital for projects that have been completed, transferred and brought into use without being adequately allocated; capital for projects utilizing ODA loans and concessional loans of foreign sponsors (including counterpart fund); investment capital of the Government implementing projects in public-private partnerships manner; transitioning projects that follow approved progress; projects estimated to be completed in planning period;

d) Allocating capital for execution of planning tasks;

dd) Allocating capital to prepare, appraise and decide on investment guidelines and prepare, appraise and decide on investment in programs and projects;

e) Allocating capital for new construction projects satisfying Clause 5 Article 51 of Law on Public Investment.

9. Ensure transparency, publicity and equality in allocating public investment capital to promote administrative reform and intensify anti-corruption, economical activities and anti-wastefulness.

Article 5. Allocation principles, criteria and amount of central government budget-sourced public investment capital

1. Principles for allocating capital: conform to Article 51 of Law on Public Investment, Article 4 of this Resolution for the general principles, order of priority for allocating capital and specific principles shall be as follows:

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b) State budget-sourced public investment capital of ministries, central and local governments shall be allocated based on sector as specified under Article 3 of this Resolution;

c) Tasks, programs and projects assigned with plans for central government budget-sourced public investment capital must fulfill investment procedures according to Law on Public Investment.

2. Allocation criteria and amount of central government budget-sourced public investment capital:

a) Central government budget-sourced public investment capital allocated to tasks, programs and projects under investment tasks of central government budget according to regulations and law on state budget and classified as public investment entities according to Article 5 of Law on Public Investment;

b) Allocation format of central government budget:

- Spend no more than 30% to complement local governments with purposes and shall be allocated based on sector, excluding capital of projects under national target program, ODA loans and concessional loans of foreign sponsors;

- Remaining capital shall be allocated as follows:

+ Allocate to ministries and central government authorities depending on sectors. Ministries and central government authorities are responsible for specifically allocating to projects, programs, including domestic capital, ODA loans and concessional loans according to regulations and law and principles, orders of priority specified under this Resolution;

+ Allocating to specific tasks, programs and projects, including: national target programs, national vital programs, programs and projects connecting and affecting multiple regions to promote rapid and sustainable socio-economic development, caring people’s health, national comprehensive planning, national marine spatial planning, national land use planning, national sector planning, regional planning, payment duty of central government budget and other policies utilizing central government budget-sourced public investment capital as per the law.

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1. Ensure compliance with Law on State Budget and Law on Public Investment.

2. Allocation principles, criteria and amount for central government budget capital for national target programs shall conform to investment guidelines of each program decided by the National Assembly.

Article 7. Allocation principles, criteria and amount of central government budget-sourced public investment capital to ministries and central government authorities

1. Comply with Article 5 of this Resolution and following specific principles and criteria:

a) Prioritize allocating missing capital for mid-term investment plans for projects under list of mid-term public investment plans during 2016-2020 transitioning to 2021-2025; recall advances.

b) Remaining capital shall be allocated to new projects in sectors specified under Article 3 of this Resolution.

2. State budget-sourced public investment capital shall be allocated to ministries and central governments according to Clause 4 Article 4 of Law on Public Investment depending on sectors specified under Article 3 of this Resolution.

Article 8. Allocation principles, criteria and amount of central government budget-sourced public investment capital to local governments with purposes

1. Capital allocation principles: comply with Article 5 of this Resolution and following specific principles:

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b) Local governments shall be responsible for allocating additional capital with purposes for programs and projects in appropriate sectors as per the law depending on principles and order of priority under this Resolution and effectively use state budget-sourced investment capital and creating favorable conditions to attract other funding sources for investment development;

c) Ensuring transparency, publicity and equality in allocating public investment capital;

d) Domestic allocation of central government budget-sourced public investment capital with purposes for local governments shall be performed as follows:

- Prioritize allocating missing capital for mid-term investment plans for projects under list of mid-term public investment plans during 2016-2020 transitioning to 2021-2025; recall advances;

- Remaining capital shall be allocated to new projects in sectors specified under Article 3 of this Resolution.

2. Allocation criteria and amount:

a) Domestic allocation of state budget-sourced public investment capital with purposes for local government budget allocated based on sector as specified under Article 3 of this Resolution;

b) Domestic allocation of state budget-sourced public investment capital with purposes for local governments shall be allocated to at least group B projects (excluding projects under national target program). Other cases shall be decided by the Prime Minister;

c) Allocation for new projects in sectors of local governments on the basis of calculating score based on following criteria:

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- Development: Rate of poor households, domestic revenue (excluding revenues generated by land use and lottery ticket sale), rate of returning to central government budget and balancing rate from central government budget to local government budget;

- Area: Natural land area and forest coverage rate of provinces and cities;

- District-level administrative divisions: Number of district-level administrative divisions; number of mountainous districts; highlands, island districts; land border of each province and city;

- Additional criteria, including:

+ Safety commune in resistance base areas (historical safety areas);

+ Island communes, communes along land border, consisting of: communes along border of Vietnam

- China, Vietnam – Laos and Vietnam – Cambodia;

+ Regions: regions heavily affected by natural disasters and climate change (river erosion, coastal erosion, drought, salt-water intrusion, sea level rise, etc.).

Article 9. Local government budget-sourced public investment capital

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2. Local government budget-sourced public investment capital plan for 2021 shall be developed in conformance to regulations and law on public investment and state budget, estimated revenue sources for local government budget in each level, number of supplementary payments made from central government budget to local government budget (if any), 5-year socio-economic development orientation and objectives during 2021-2025 and specific socio-economic development goals and objectives of 2021; implementation results of local government budget cost estimate in 2019 and intended implementation in 2020.

3. Local government budget-sourced public investment plant from 2022 to 2025 shall be identified on a yearly basis based on average 5-year growth rate of local government budget-sourced public investment capital compared to public investment capital in 2021 (excluding revenues generated by land use and lottery ticket).

Chapter III

IMPLEMENTATION

Article 10. Responsibilities of the Government

1. Organizing and assigning ministries, ministerial agencies, Governmental agencies, other central and local agencies to implement this Resolution.

2. Reporting on implementation of this Resolution at request of the National Assembly and Standing Committee of National Assembly.

3. In case of amendments to allocation principles, criteria and amount of state budget-sourced public investment capital during 2021-2025 other than those specified in this Resolution, the Government shall report to the Standing Committee of National Assembly for decision.

Article 11. Responsibilities of the Prime Minister

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2. Elaborating implementation of this Resolution.

Article 12. Entry into force

This Resolution comes into effect from the date of signing and applies to all budget years during the period of 2021-2025.

Article 13. Transition clauses

1. In case of unfinished projects and projects listed under mid-term public investment plans for the period of 2016-2020 utilizing state budget but not being allocated with annual capital for implementation, ministries, central and local government authorities shall continue to allocate state budget to keep up with capital allocation progress decided by competent authorities.

2. In case of projects estimated to be invested but not listed under mid-term public investment plan during 2016-2020 utilizing state budget, in the event that ministries, central and local government authorities continue to allocate according to mid-term plan of 2021-2025 utilizing state budget under their management, comply with Article 101 of Law on Public Investment.

3. Projects in target programs under mid-term public investment plans during 2016-2020 allocated with annual state budget-sourced public investment capital but lacking capital for transition to 2021-2025 period shall be classified into 13 sectors under Annex attached to this Resolution based on nature and objectives of the projects.

Article 14. Supervising implementation of the Resolution

Standing Committee of National Assembly, Finance and Budget Committee, Ethnic Minorities Council, other committees of the National Assembly, National Assembly electorates and National Assembly electors shall supervise implementation of this Resolution within their tasks and powers as per the law.

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PP. STANDING COMMITTEE OF NATIONAL ASSEMBLY
CHAIRPERSON 




Nguyen Thi Kim Ngan

ANNEX

CLASSIFICATION OF SECTORS FOR PROJECTS UNDER TARGET PROGRAMS OF THE 2016-2020 PERIOD TRANSITIONING TO THE 2021-2025 PERIOD
(Attached to Resolution No.    /2020/UBTVQH14 of the Standing Committee of National Assembly)

Sector

Projects under target program

1. National defense

Projects serving national defense objectives under national defense and security target program in key areas, national defense industry target program implementing Resolution No. 06-NQ/TW of the Politburo, South China Sea – Island target program to guarantee national defense and security at sea and island listed under mid-term investment plans for the period of 2016-2020, allocated with annual state budget-sourced public investment capital but still lacking capital.

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Projects serving security, social order and safety under target programs for ensuring traffic safety, fire prevention, criminal and drug prevention under mid-term investment plans for the period of 2016-2020, allocated with annual state budget-sourced public investment capital but still lacking capital.

3. Education, training and vocational education

Projects aiming towards education, training and vocational education under target programs for vocational – employment education and occupational safety, target programs for education in mountainous regions, ethnic minority areas and disadvantaged areas under mid-term investment plans for the period of 2016-2020, allocated with annual state budget-sourced public investment capital but still lacking capital.

4. Science and technology

Projects aiming towards science and technology under target programs for investing in infrastructure of coastal economic zones, border economic zones, industrial parks, industrial clusters, hi-tech zones and agricultural areas utilizing high technology under mid-term investment plans for the period of 2016-2020, allocated with annual state budget-sourced public investment capital but still lacking capital.

5. Health, population and family

Projects under target programs for health – population, target programs for development of local health system under mid-term investment plans for the period of 2016-2020, allocated with annual state budget-sourced public investment capital but still lacking capital.

6. Culture and communication

Projects under target programs for culture under mid-term investment plans for the period of 2016-2020, allocated with annual state budget-sourced public investment capital but still lacking capital.

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7.1. Environment

Projects under target programs for thoroughly dealing with public facilities causing serious environmental pollution, target programs for responding to climate change and green growth under mid-term investment plans for the period of 2016-2020, allocated with annual state budget-sourced public investment capital but still lacking capital

7.2. Resources

Projects aiming towards natural resources under target programs for South China Sea – Island to ensure national defense and security at sea and islands under mid-term investment plans for the period of 2016-2020, allocated with annual state budget-sourced public investment capital but still lacking capital.

8. Economic activities

8.1. Agriculture, forestry, salt industry, irrigation and fishery

Projects aiming at agriculture, forestry, salt industry, irrigation and fishery under target programs for investing in infrastructures of coastal economic zones, border economic zones, industrial parks, industrial clusters, hi-tech zones, agricultural zones utilizing high technology, target programs for sustainable fishery economic development, target programs for sustainable forestry development, target programs for reforming agricultural structure and preventing, minimizing natural disasters to stabilize human life under mid-term investment plans for the period of 2016-2020, allocated with annual state budget-sourced public investment capital but still lacking capital.

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Projects under target programs for powering rural areas, mountainous regions and islands under mid-term investment plans for the period of 2016-2020, allocated with annual state budget-sourced public investment capital but still lacking capital.

8.3. Industrial parks and economic zones

Projects aiming towards industrial parks and economic zones under target programs for investing in infrastructure of coastal economic zones, border economic zones, industrial parks, industrial clusters, hi-tech zones and agricultural areas utilizing high technology under mid-term investment plans for the period of 2016-2020, allocated with annual state budget-sourced public investment capital but still lacking capital.

8.4. Commerce

Projects aiming towards commerce under target programs for investing in infrastructure of coastal economic zones, border economic zones, industrial parks, industrial clusters, hi-tech zones and agricultural areas utilizing high technology under mid-term investment plans for the period of 2016-2020, allocated with annual state budget-sourced public investment capital but still lacking capital.

8.5. Tourism

Projects under target programs for developing tourism infrastructure under mid-term investment plans for the period of 2016-2020, allocated with annual state budget-sourced public investment capital but still lacking capital.

8.6. Information technology

Projects under target programs for information technology under mid-term investment plans for the period of 2016-2020, allocated with annual state budget-sourced public investment capital but still lacking capital.

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Projects aiming towards society under target programs for developing social support system and target programs for vocational – employment education and occupational safety under mid-term investment plans for the period of 2016-2020, allocated with annual state budget-sourced public investment capital but still lacking capital.

10.  Regarding transitioning tasks and projects under target programs for socio-economic development of regions, transitioning projects utilizing ODA loans and concessional loans of foreign sponsors shall be classified respectively in sectors above depending on nature and objectives of the tasks and projects, in which: counterpart fund of transitioning projects utilizing ODA loans and concessional loans of foreign sponsors shall be arranged by sector in which foreign funding is utilized.