On March 28, 2018, the Ministry of Finance issued Circular No.29/2018/TT-BTC regulating the establishment, management and using funds of Program on development of supporting industries. This Circular took effect since May 11, 2018.
Accordingly, Circular No.29/2018/TT-BTC have some important points as follows:
– Funds must be used for the right purposes and in accordance with the regime, subject to inspection and control by competent functional agencies;
– Make the final settlement of funds used according to current regulations.
– Contents of tasks and schemes conformable to standards and regulations;
– Tasks and schemes approved by competent agencies;
– The unit has invested capital or committed to invest sufficient funds to implement the project has been approved by competent authorities;
– The scheme is not supported by any state budget;
– In the two years before the filing date, one of the following cases has taken the lead in supporting the development of supporting industries with the “failing” test results; without the approval of the Ministry of Industry and Trade, to use the funds of the development of supporting industries not according to the current regulations.
– Connect and support industrial enterprises to become product suppliers for domestic and foreign customers, to attract foreign investment in supporting industries fields: the expense level is from 70% to 100%;
– Support enterprises to apply management systems to meet the requirements of global production chains in corporate governance, production management: the expense level is 100%;
– Support training to improve the quality of human resources to meet the requirements of supporting industries: the expense level is 70%;
– Support research, development, application of technology transfer and renewal in trial production of components, spare parts, raw materials and materials: the expense level is from 50% to 100%;
– Support in the development and release of information on annual supporting industries: the expense level is 100%;
– Expenditure on the management of the program on supporting industries: the expense level is between 1.5% and 4%;
With specific and detailed regulations, Circular No.29/2018/TT-BTC plays an important role in the management and use the State’s funds in support of supporting industrial enterprises.