CIRCULAR guide a number of articles on finance for defence companies in Decree No. 32/2005/ND-CP dated March 11, 2005 by the Government on the manufacture and supply of products, public service pursuant to the law on State enterprises in 2003;
The base financial management regulation of State-owned companies and the State manages capital investments in other businesses attached to Decree No. 199/2004/ND-CP dated 03/12/2004 of the Government (hereafter referred to as the regulation on financial management of State companies);
Pursuant to Decree No. 32/2005/ND-CP of March 2005 by the Government on the manufacture and supply of products, public service (hereinafter referred to as the Decree No. 32/2005/ND-CP);
Minister of Finance-Ministry of defence guidelines a number of articles on finance for defence companies in Decree No. 32/2005/ND-CP dated March 11, 2005 by the Government on the production and provision of public service product as follows: i. GENERAL PROVISIONS 1. Object, scope of application this circular is the defence companies prescribed in article 7 of Decree 31/2005/ND-CP dated. 2. The production, supply products, public service follow the bidding rules, orders, delivery, production implementation plan product supply, public services of the Prime Minister.
3. In addition to the implementation of the provisions of this circular, defence companies have to implement the provisions of the regulations of the financial management of State-owned companies and the text direction of the Ministry of finance and the Ministry of defence.
II. Rights, OBLIGATIONS and FINANCIAL SUPPORT for A DEFENSE COMPANY. The rights and obligations of the company.
1. The State capital to form enough investment assets directly in production, product supply, direct public service serves the defense.
2. Observance of decisions of competent State agencies about the transfer of capital assets directly serve the defense.
3. Have the right to transfer, lease, mortgage the property serves the objective of activities directly serve the Defense Department in the administration of the company when the Agency decided to establish the company agree in writing; for the other properties according to the current rules of the State. The transfer, lease of property are not affecting the realization of the product, order or State service delivery plan. The collateral value of land use rights, property of the company associated with the right to use the land serve the objective of activities directly serve the defense was done according to the rules of the law of the land.
4. Defence companies used the resources allocated to the organisation of production, product supply and public service outside the State targets or ordering delivery plan; performing other business activities as ensuring the conditions:-Be who decided to set up the company to allow writing.
-Without prejudice to the implementation task of the defense service assigned.
-Registration of additional business lines in accordance with the law.
-Partial accounting operations, provide public service products beyond the plan.
-Make tax obligations as stipulated by law.
5. Defence companies made the current rules on the management of State revenues, costs, production and supply of products, public service. In addition the defense companies are some of the accounting costs used in production include: payroll costs for people waiting for retirement, military officers, soldiers, officers and employees of national defence under the regulation of the Minister of national defence.
6. Defence companies make profit distribution according to article 27 of the financial management regulation of State-owned companies and the State capital management investments in other businesses attached to Decree No. 199/2004/ND-CP dated 03/12/2004. Salary Fund to handle the review quoted up 2 Reward Fund, welfare is the actual wage fund of the company including the salary support for skilled workers specified in point 3.1, section B, part II to this circular.
7. The other rights and obligations under the provisions of the law.
B. financial assistance for defense companies.
During the operation, in addition to the General provisions on encouraging and supporting investment in accordance with the law, defence companies produce and supply products, public services are: 1. trading capital: 1.1. The company's capital defense: Charter capital of the company is the defense of the State capital grant to form the property directly serving the manufacturing and supply of products, direct public service serves the defense. Capital is defined as follows: 1.1.1. For the new company, capital is defined by the total level of investment to asset formation directly serving the manufacturing and supply of products, direct public service serves the defense.
1.1.2. for active corporate, not yet identified capital: capital is determined on the basis of the existing property values and additional property needs minimal (if any) to ensure the company completed the task of stabilize, often by State commissioned, delivered the plan.
1.2. The authority to approve capital.
The Prime Minister approved the capital for defence companies produce and supply products, public service due to the Prime Minister decided to establish under the proposal of the Ministry of defence and the written opinions of the Ministry of finance; The Department of Defense approved capital for the defence companies produce and supply products, public service by the Defense Ministry decided to set up there after the written opinion of the Ministry of finance.
1.3. The level of capital additions for the defense companies under the scheme due to the Prime Minister.
1.4. The order and procedure of increase and decrease of capital.
1.4.1. The adjusted capital of defence companies made only in case of:-transfer of capital or assets directly supply the product serves the company's Defense Defense for other defense companies to carry out the task of Defense following a decision of the Minister of national defence.
-Defense company reorganization (merger, amalgamation, Division, separation of the company).
-The State additional investment capital to shape the production assets and product supply.
1.4.2. The transfer of capital or assets used for activities directly serve the defense under point 1.4.1 above follow the form recorded an increase, reduction of capital.
1.4.3. the adjusted profile increase and decrease of capital include:-adjusting variant Charter capital of the company (reason to increase or reduction of capital, the new capital levels).
-Financial statements of the company at the time of adjusted capital.
-The written opinions of the Ministry of Finance on new capital levels.
Within 15 working days from the date of receipt of a valid application, the Minister of Defense, out decides the level of capital stock of the new company.
After the decision, the company performs the registration and publicity of the new capital under provisions of current law.
2. Free money, land use and land-use tax for land needed to be used in the direct service of time Defense.
-Every year, the defense company reported a total land area of the State of affairs, for companies to hire and use, including the land necessary to use directly serves Defense (confirmed by the competent bodies of the Ministry of Defense) sent local tax agencies.

-Based on the report of the company was certified by the competent authority, the tax authority informed the company land to be free money, land use, land-use tax and land must pay land rents, land use tax money to use the land.
The case of fluctuations or changes in land use, the defence company reported to tax authorities have notified regulators.
With regard to land use on business purposes execute according to the current rules of the State.
3. State funding in case of suspension of production that the company is not likely to offset the costs as follows: 3.1. For direct lines of defense manufacturing were Defense Ministry for permission to temporarily stop production during the year was the level of State funding in time halted production, includes:-expenses for the maintenance, repair, and maintenance of production lines as the economic level, the technical authority issued or according to the technical design of the production line.
-Salary support for skilled workers (Hunter tier 5 or over) in the default editor of suspended production lines in case the actual wages of lower-skilled workers the salary level time Hunter with the minimum wage prescribed by the State.
The record review support including:-dispatch support of defence companies.
-The text of the Department of Defense on the line was suspended production during the years of support.
-Financial statements of the company in the year of implementation support, including finalizing the genus repairs, maintenance of the lines suspended production.
-List and the salary level of skilled workers as the border of the line halted the production of (certified by the competent agency of the Ministry of defence).
-Actual salary settlement of skilled workers in production line halted production.
3.2. for direct lines of defense manufacturing in time to suspend production due to Defense Ministry order, delivered the plan to lower production capacity designed the entire expenses for the maintenance, repair of the product manufacturing lines, utilities, and salary support for skilled workers in productive intervals referred to in 3.1 points to be accounted into the costs of producing and supplying products, public service during the year. Defense companies use revenue payment by the State public service products to offset the cost of producing and supplying products, public service. Sales case does not cover the production costs, the State spreads part support.
4. Defence companies operate in the remote areas, border Islands or strategic areas especially hard not to have the school, grades (kindergarten, kindergarten) according to the system of education (as certified by the Department of education and training at local) direct joint operations manager young House kindergarten, State support as follows: 4.1. Cost of the initial investment for the construction of schools, stores equipped with tables, chairs and teaching, not to exceed 50 million/class (not yet equipped). The case of school, teaching has damaged need to be replaced and then additional costs not exceeding 5 million/class/year.
4.2. Cost of ensuring salaries, other regulatory regimes for teachers, she raised the child according to the ranks of State regulation in the area.
5. defense companies operating in the area due to the special conditions needed to maintain the hospital clinic, State as follows:-support funds to invest, equipped first-level material, must not exceed 70 million/1 hospital, clinic (case not yet equipped).
-Funding often genera for the operation of the hospital, the clinic.
+ For hospitals, clinics are in operation: based on actual number of regularly five years ago of the unit to determine the level of support.
+ For the hospital, the clinic established new levels of support based on the estimation of activity often genera unit and be approved by the competent authority.
Determining levels of support often genera for the operation of the hospital, the clinic can reference, use regular spending of medical establishments of the same type, the same scale on geographical units stationed.
The Department of Defense approved a list of hospitals, clinics of Defense is entitled to this aid.
6. The company made a special defence duties by the decision of Prime Minister (defence companies on strategic activities associated with national defense economy...) in addition to the implementation of the rights and obligations prescribed for State companies at the State Enterprise Act of 2003 Regulation, the financial management of State-owned companies and the State manages capital investments in other businesses attached to Decree No. 199/2004/ND-CP dated 03/12/2004 the Government also be incentives:-supported funding the kindergarten, kindergarten school yet in the class under education and health expenditure for these places due to special conditions must maintain hospitals and clinics as specified in point 4 and spot 5-item B-part II of this circular.
-State grants two awards funds for welfare, enough food for two months in the case of holes or not enough sources to extract up to two funds.
-Enjoy the incentives and other support according to the decision of the Prime Minister.
III. ESTIMATING And SETTLEMENT SUPPORT FUNDING 1. Estimating.
-Defence companies to estimate financial aid details for each content specified in part II of the above-mentioned report the superior governing body of the Ministry of defence to assess and synthesize in the budget estimates of the Ministry of defence.
-The Ministry of Defense is responsible for aggregate estimation support for defense companies in State budget estimates of the Ministry of defence sent the Finance Ministry review, General Government program to the Parliament to review the decision under the provisions of the law on the State budget.
2. Allocate funding.
Based on the estimation of the annual State budget was the Prime Minister, the Ministry of finance allocated; The Defense Department conducted a detailed task allocation support for each defence companies as content regulation in part II above, the Ministry of finance submitted the evaluation as a basis to follow the current regulations; The Defense Department made the genus in the form of withdrawal estimates.
Private investment expenditures, additional funds for defense companies from the State budget, the Finance Ministry for defense company with pay.
3. Payment of funds.
The end of the financial year, defence companies must make financial reporting regime under the current rules, including funding settlement reports in support of the State budget. The Ministry of Finance (Department of Finance) in collaboration with the Department of Defense (Department of Finance) examined the use of settlement funds ensure the support of the State and the mode specified in this circular. The case of the genus wrong modes or exceed spending provisions, the financial institutions have the right to export the payment of expenses in the wrong mode, exceeded regulations. Who would order the wrong spending must compensate and depending on the level of suffering sanctions prescribed by law.
IV. ORGANIZATION of the IMPLEMENTATION of this circular have the effect after 15 days from the date The report. The previous provisions on the rights, obligations and financial support for State enterprises operating in the public interest Defense Ministry were abolished.
In the process, if there are obstacles suggest defense company reflects on the Ministry of finance and the Department of Defense to research additional amendments./.