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:

1. Principles for using funds:

– 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.

2. Conditions for financial support:

– 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.

3. Contents and levels to be considered for expenditure:

– 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.