Decree No. 94/2013/ND-CP detailing the implementation of the Law on the National Reserves

Article 3. Policies on mobilization of Decree No. 94/2013/ND-CP of August resources for the national reserves 21, 2013, detailing the implementation 1. The State encourages and acknowledges of the Law on the National Reserves in writing the voluntary contribution of property by organizations and individuals for Pursuant to the December 25, 2001 Law on use for national reserves. Organization of the Government; Heads of national reserve commodity­ Pursuant to the November 20, 2012 Law on managing ministries or sectors shall, when the National Reserves; receiving property voluntarily contributed for At the proposal of the Minister ofFinance, use for national rese1ves, manage the use thereof The Government promulgates the Decree for proper purposes, and propose the Minister detailing the implementation ofthe Law on the of Finance to grant property contribution National Reserves. ce1tificates to organizations and individuals. Chapter I 2. In case of emergency, urgency, combat, GENERAL PROVISIONS prevention and remedy of consequences of national disasters, catastrophes, fires or

Article 1. Scope of regulation epidemics at risk of wide spread, or se1ving This Decree details the State's policies on national defense and security, which needs national reserves; the list of national reserve to be dealt with immediately, the Minister of commodities and the assigned management Finance, the Minister of National Defense, of national reserve commodities; the regime the Minister of Public Security, the Minister of seniority allowance and occupational of Transpo1t, the Minister of Agriculture and preference allowance for national reserve Rural Development, the Minister of Health workers; the delivery of national reserve and the Minister of Industiy and Trade shall commodities upon liquidation, delisting, mobilize prope1ty, commodities, supplies and destmction and handling of national reserve equipment of organizations and individuals commodities with regard to commodity for national rese1ves in accordance with the quantities greater than those in accounting law on compulso1y purchase and requisition books after practical inventory. of property. 3. Competent persons defined in Clause 2

Article 2. Subjects of application of this Article shall decide on the mobilization Agencies, organizations and individuals and manage the proper, thrifty and efficient involved in the formation, management use, and make payment and compensation for organization, administration and use of national the damage of prope1ty, commodities, supplies reserves. and equipment mobilized for national rese1ves © "V;etnarn Law & Legal Forom Issue nos 01-03/September 2013 47 (Cong Bao nos 519-520/Septemher 03, 2013) to organizations and individuals in accordance and information technology free of charge with the law on compulsory purchase and by organizations and individuals for the requisition of prope1ty. management and preservation of national reserve commodities.

Article 4. Policies on encouragement of organizations and individuals to invest in 2. Heads of national reserve commodity­ physical foundations for national reserves managing ministries or sectors shall manage the use of technological solutions and the 1. The State encourages and acknowledges application of preservation technologies and in writing organizations' and individuals' info1mation technology which are provided free voluntary investment in the constrnction of of charge by organizations or individuals for physical foundations for national reserves. the management and preservation of national Heads of national reserve commodity­ reserve commodities, for proper purposes; and managing ministries or sectors shall manage concunently propose the Minister of Finance the use of warehouses built with voluntary to grant certificates to such organizations or investment by organizations or individuals individuals. under the master plan on national reserve warehouse networks for lease for national Article 6. The State's incentive policies reserves or for hired preservation of national toward organizations and individuals that have reserve commodities, for proper purposes; and contributed scientific research achievements concunently propose the Minister of Finance which are efficiently applied in the national to grant certificates to organizations and reserve sector individuals that have voluntarily invested in the 1. The State encourages and acknowledges constrnction of these physical foundations. in writing the voluntary contribution of 2. Organizations and individuals investing efficiently applicable innovations and in the constrnction of warehouses under the inventions by organizations and individuals to master plan on national reserve warehouse the management and preservation of national networks to unde1take the hired preservation of reserve commodities. national reserve commodities will be suppo1ted Heads of national reserve commodity­ and guided in national reserve commodity managing ministries or sectors shall, when preservation technologies by national reserve receiving the innovations and inventions, commodity-managing ministiies or sectors. manage their use for proper purposes and

Article 5. The State's policies toward propose the Minister of Finance to grant organizations and individuals investing innovation and invention contribution in scientific-technological research and ce1tificates to organizations and individuals. development and application of info1mation 2. Organizations and individuals may register technology to national reserves scientific research subjects, technological 1. The State encourages and acknowledges application and renewal with national reserve in wiiting the provision of technical solutions, commodity-managing ministries or sectors or the application of preservation technologies the specialized national reserve management © Vietnam Law & Legal Fornm 48 Issue nos 01-03/September 2013 (Cong Bao nos 519-520/Septemher 03, 2013) agency for the settlement ofbasic and urgent Clause 2, Alticle 27 ofthe Law on the National matters ofthe management and preservation of Reserves, the Ministiy ofFinance shall assume national reserve commodities. the prime responsibility for, and coordinate with related ministlies and sectors in, reporting Chapter III it to the Government for submission to the DETAILED LISTS OF NATIONAL RESERVE National Assembly Standing Committee for COMMODITIES AND ASSIGNMENT OF consideration and decision. MANAGEMENT AGENCIES Chapter IV

Article 7. Detailed lists ofnational reserve REGIMES AND POLICIES APPLICABLE commodities, assignment of agencies to TO NATIONAL RESERVE WORKERS manage national reserve commodities 1. The detailed lists of national reserve Article 9. Conditions and periods of time commodities in the lists of national reserve counted or not counted for enjoyment of commodities and the assigmnent of managing seniority allowance ministries and sectors are provided in the 1. Conditions for enjoyment of seniority appendix to this Decree (not translated). allowance are as follows: 2. In case of necessity to supplement the a/ Civil servants and public employees detailed lists ofnational reserve commodities, having worked at the specialized national the Ministiy ofFinance shall assume the plime reserve management agency for full 5 years (60 responsibility for, and coordinate with related months) are entitled to seniority allowance; ministries and sectors in, submitting these b/ Almymen and people's policemen having supplements to the Government for decision. performed national reserve work for full 5

Article 8. Implementation ofdetailed lists years (60 months) are entitled to seniority of national reserve commodities and lists of allowance. national reserve commodities 2. Period oftime counted for enjoyment of 1. Annually, together with the fo1mulation seniority allowance of socio-economic development plans and a/ Period of working at the specialized state budget estimates, the Minist1y ofFinance national reserve management agency, period shall assume the prime responsibility for, of perfo1ming national reserve work in the and coordinate with the national reserve Ministiy of National Defense or the Minist1y commodity-managing ministries and sectors ofPublic Security; in, scmtinizing, balancing and summarizing for b/ The seniority allowance period in other submission to the Government for decision the production and business lines allowed to be detailed lists of national reserve commodities added to the peliod of time defined at Point to be assigned to ministries and sectors for a of this Clause for enjoyment of seniority implementation in the plan year. allowance includes period of active service 2. In case of necessity to adjust a list of in the a1my or public security force eligible national reserve commodities prescribed in for enjoying seniolity allowance and working © "V;etnarn Law & Legal Forom Issue nos 01-03/September 2013 49 (Cong Bao nos 519-520/Septemher 03, 2013) period with salaries paid according to one of Article 11. Conditions for enjoyment of the ranks or titles of the customs, cipher, com1, occupational preferential allowance procuracy, audit, inspection, civil judgment 1. Persons directly performing national enforcement, forest protection, Paify inspection reserve tasks at national reserve units of the and teaching (if any); specialized national rese1ve agency. c/ Period of perfo1ming military obligations 2. Persons directly engaged in national under law, provided the national reserve rese1ve activities at national rese1ve units of the worker concerned enjoys seniority allowance Ministry of National Defense or the Ministry before being mobilized to perfo1m military of Public Security. obligations.

Article 12. Occupational preference 3. Period of time not counted for enjoyment allowance levels of seniority allowance a/ The probation period or period of working 1. The preferential allowance levels are under definite labor contracts; provided as follows: b/ The unpaid private-business leave of 1 a/ The preferential allowance level of 25% month or more in a row; is applicable to civil se1vants of the specialized national rese1ve rank; c/ The sickness or maternity leave in excess of the period prescribed by the social insurance b/ The preferential allowance level of 15% is applicable to civil servants of other law; ranks, who directly pe1fo1m the tasks at Sub­ d/ The period of work suspension, custody Depar1ments of State Rese1ves or offices of or temporary detention for investigation, regional Depai1ments of State Rese1ves under prosecution and adjudication. the specialized national reserve agency; or

Article 10. Seniority allowance levels directly perform national rese1ve tasks at national rese1ve units of the Ministry ofNational 1. National reserve workers defined in Defense or the Ministry of Public Secmity. Clause 1, Al1icle 9 of this Decree, who have the seniority allowance-eligible working time 2. The occupational preference allowance of full 5 years (60 months) as provided in levels prescribed in this Al1icle are calculated Clause 2, Al1icle 9 of this Decree, shall enjoy based on cunent salary ranks and grades plus a seniority allowance level equal to 5% of their the leading-position allowance and extra­ salary plus the leading position allowance and time seniority allowance (if any), and paid extra-time seniority allowance (if any); and an together with monthly salaries but not used for additional 1% for each year (full 12 months) calculation of social insurance, health insurance from the sixth year on. and unemployment insurance premiums and indemnities. 2. Seniority allowances are paid together with monthly salaries and used for calculation Article 13. Principles of application, of social insurance, health insurance and funding sources for application of national unemployment insurance premiums and rese1ve seniority allowances and occupational indemnities. preference allowances © Vietnam Law & Legal Fornm 50 Issue nos 01-03/September 2013 (Cong Bao nos 519-520/Septemher 03, 2013) 1. National reserve workers defined in on the liquidation of these national reserve Clause 1 of Alticle 9 and Alticle 11 of this commodities in accordance with law. The Decree, who are ctmently enjoying various modes, process, procedures and organization allowances of the same type, can enjoy only of liquidation of these national reserve one allowance of the highest level. commodities comply with the law on state 2. The funding sources for payment of property management and use. national reserve seniority allowances and 3. Proceeds from the liquidation of national occupational preference allowances comply reserve commodities, after paying reasonable with the Law on the State Budget and relevant liquidation expenses under law, must be paid legal documents. into the state budget. Chapter V Article 15. Delisting of national reserve LIQUIDATION, DELISTING OF commodities NATIONAL RESERVE COMMODITIES, 1. Heads of national reserve commodity­ DESTRUCTION AND HANDLING OF managing ministries or sectors shall submit SURPLUS OR DEFICIT NATIONAL t o the Prime Minister for decision the RESERVE COMMODITIES; DEDUCTION delisting, delive1y and sale of national reserve FOR REWARDS FOR BELOW-QUOTA commodities not on the detailed list of national LOSS IN THE PRESERVATION OF reserve commodities prescribed in this Decree; NATIONAL RESERVE COMMODITIES the delive1y and sale modes comply with the Law on the National Reserves.

Article 14. Liquidation of national reserve commodities National reserve commodities for national defense or secmity, which are delisted, can be 1. National reserve commodities which delivered for use only for national defense and are damaged or degenerated in quality under security purposes. cmTent technical standards but still retain some 2. Proceeds from the delive1y and sale of use value and are pe1mitted for circulation on national reserve commodities prescribed in the market, may be liquidated in the following Clause 1 of this Alticle must be paid into the cases: state budget. a/ Damaged national reserve commodities which have been re-processed or repaired or Article 16. Destmction of national reserve the re-processing or repair thereof is considered commodities inefficient, failing to ensure the quality under 1. Expired national reserve commodities, the national technical regulations; which are degenerated in quality, unusable and b/ National reserve commodities which can not pe1mitted for circulation on the market, no longer be used according to their utilities but must be destroyed. can be used for other purposes. 2. The destruction of national reserve 2. Heads of national reserve commodity­ commodities complies with the law on managing ministries or sectors shall decide environmental protection and other laws. © 'V;etnarn Law & Legal Forom Issue nos 01-03/September 2013 51 (Cong Bao nos 519-520/Septemher 03, 2013) 3. Heads of national reserve commodity­ the market prices of such commodities or managing ministries and sectors shall submit to collllllodities of the same types at the time of the P1ime Minister for decision the destruction compensation; of national reserve collllllodities. b/ For national rese1ve commodity losses 4. Fund for destruction of national reserve in excess of the prescribed quotas caused commodities is assured by the state budget. by an objective event, they will be handled by reserve capital reduction according to

Article 17. Handling of losses of national competence decentralization in Clause 3 of reserve collllllodities this Article. 1. For losses of national reserve collllllodities 3. Competence to decide on handling of in the course of preservation, which are equal to losses in excess of the prescribed quota, damage or lower than the presciibed loss quota, national or loss of national rese1ve commodities is reserve commodity-managing ministries and prescribed as follows: sectors, and the specialized national reserve a/ Heads of national rese1ve commodity­ agency may reduce the national reserve managing ministries or sectors, and the head capital accordingly and report the settlement of the specialized national reserve agency thereof to the Ministiy of Finance according may decide on capital reduction for quantities to regulations. of national rese1ve commodities handled once 2. For losses of national rese1ve commodities with the damage value of under VND 300 in excess of the prescribed quota in the million, calculated according to the piices used course of prese1vation, national reserve units in accounting books, and take responsibility shall base on the examination minutes; the for their decisions and at the same time repo1t loss determination minutes or the written thereon to the Minister of Finance; certification of damaged or degenerated b/ Heads of national rese1ve collllllodity­ commodities under Vietnam standards and managing ministries or sectors, and the head the national technical regulations on national of the specialized national reserve agency reserve commodities; and the minutes on shall report to the Minister of Finance for lost national reserve commodities made by consideration and decision the capital reduction the councils for handling of national reserve for volumes of national rese1ve commodities prope1ty of the national rese1ve agencies or handled once with the damage value of between units, to consider, identify the causes of loss or VND 300 million and under VND one billion, damage, and handle them as follows: calculated according to the prices used in a/ For national rese1ve commodity losses accounting books; in excess of the presciibed quota caused by cl The Prime Minister shall consider and a subjective event, responsible organizations decide on the capital reduction for volumes and individuals shall compensate for the loss of national rese1ve commodities handled once in excess of the prescribed quota at the piices with the damage value ofVND one billion or decided by the heads of the national rese1ve more, calculated according to the prices used commodity-managing units and based on in accounting books. © Vietnam Law & Legal Fornm 52 Issue nos 01-03/September 2013 (Cong Bao nos 519-520/Septemher 03, 2013)

Article 18. Handling of surplus national 4. National reserve units shall estimate and reserve commodities settle the funding sources deducted for rewards for below-quota losses. 1. National reserve commodities with practically inventoried quantities higher than Chapter VI those recorded in the accounting books must IMPLEMENTATION PROVISIONS be taken in as increase of national reserve commodities. Article 20. Effect 2. Heads of national reserve commodity­ 1. This Decree takes effect on October 10, managing ministries or sectors or heads of 2013. national reserve units shall decide on the 2. This Decree replaces the Government's increase of national reserve commodities and Decree No. 196/2004/ND-CP of December report it to the specialized national reserve 2, 2004, detailing the implementation of the agency for making summarization repo1ts to Ordinance on the National Reserves, and the Ministiy of Finance. Decree No. 43/2012/ND-CP of May 17, 2012,

Article 19. Deduction for rewards fo r amending and supplementing a number of below-quota losses articles of Decree No. 196/2004/ND-CP of December 2, 2004, detailing the implementation 1. In case of losses lower than prescribed of the Ordinance on the National Reserves. quotas in the course of preservation of national To annul the Prime Minister's Decision reserve commodities, national reserve units No. 77/2008/QD-TTg of June 10, 2008, on will be given a reward equal to 50% of the national reserve occupation- based preferential value of commodities lost below the prescribed allowance regime. quotas. 2. The funding sources for giving rewards Article 21. Guidance and implementation under Clause 1 of this Alticle will be allocated responsibilities from the budget estimate for national reserve 1. The Minist1y of Finance shall assume the management activities for deductions to prime responsibility for, and coordinate with set up welfare funds, reward funds and related ministi·ies and agencies in, guiding the additional incomes for civil servants and public implementation of this Decree. employees. 2. Ministers, heads of ministerial-level 3. Heads of national reserve commodity­ agencies, heads of government-attached managing ministi·ies or sectors, and the head agencies, and chairpersons of provincial-level of the specialized national reserve agency shall People's Committees shall implement this consider and approve the deducted amounts for Decree.- rewards for preservation with losses lower than prescribed quotas of their attached units at the On behalfofthe Government same time with approving annual settlement Prime Minister repo1ts. NGUYEN TAN DUNG © "V;etnarn Law & Legal Forom