DECREE

DETAILING THE ORDINANCE ON INDUSTRIAL MOBILIZATION

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the February 25, 2003 Ordinance on Industrial Mobilization;
At the proposal of the Defense Minister,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.-

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2. Industrial mobilization shall not apply to foreign-invested industrial enterprises, including:

a) Joint-venture enterprises, partnership enterprises, joint-stock enterprises (enterprises jointly set up by one or many Vietnamese parties and one or many foreign parties);

b) Enterprises with 100% foreign investment capital.

Article 2.-

1. Industrial mobilization must be conducted on the basis of the existing production, repairing capacities of industrial enterprises and the State shall only invest more specialized equipment to complete the military equipment- manufacturing or - repairing chains.

2. The selection of, and the assignment of industrial mobilization tasks to, industrial enterprises must ensure their synchronism required by the manufacture or repair of equipment for the army and suitable to the enterprises' production or repair capacities.

3. The payment prices of industrial mobilization products shall be calculated accurately and adequately on the basis of norms and price frames of the State at the time of payment, ensuring the lawful interests of enterprises and laborers.

Article 3.-

1. The Defense Ministry is the representative of the State owner of the equipment assigned by the State to industrial enterprises for the completion of chains of manufacturing or repairing equipment. The ministries, the ministerial-level agencies, the People's Committees of the provinces and centrally-run cities (hereinafter called the provincial-level People's Committees) and the corporations set up under the Prime Minister's decisions (hereinafter called the corporations) shall coordinate with the Defense Ministry in managing the quantity and quality of the equipment assigned by the State to the industrial enterprises under their respective management.

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a) To open books and make book entries to monitor accurately, reflect in time and honestly the situation of use of, and changes in, the assigned equipment;

b) To draw up regulations on management and use of assigned equipment;

c) Periodically and at year-end, to inventory and accurately determine the quantity and quality of the assigned equipment, and to report the inventory results to the Defense Ministry and their superior managing bodies.

Article 4.-

1. Upon the appearance of demands for exploitation of the utility of the State-assigned equipment to complete the chains of manufacturing, repairing equipment outside the industrial mobilization plans, the industrial enterprises must report thereon to their immediate superior bodies and file written requests to the Defense Minister. Within 15 days (working days), as from the date of receiving the written requests of enterprises, the Defense Minister must reply the enterprises in writing.

2. When permitted to exploit the utility of equipment outside industrial mobilization plans, the industrial enterprises shall only exploit them within the permitted duration and effect fixed asset amortization according to regulations. The proceeds from amortization of State-invested assets must be used by enterprises for reinvestment in service of maintenance and repair of equipment, ensuring the maintenance of technical properties, being ready for the tasks of manufacturing or repairing equipment.

Article 5.-

1. In the course of manufacturing or repairing equipment for the army, industrial enterprises shall have to strictly manage the adequate quantity of products manufactured or repaired by themselves.

2. Industrial enterprises are strictly forbidden to use industrial mobilization products for the purposes of business, donation, lease, pledge, sale.

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Chapter II

INDUSTRIAL MOBILIZATION PREPARATION

Article 6.- The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Defense Ministry, the Finance Ministry and the Industry Ministry in, working out programs on general surveys of industrial enterprises throughout the country, which are governed by the Industrial Mobilization Ordinance, and submit them to the Prime Minister for decision.

Article 7.- The ministries, the ministerial-level agencies, the provincial-level People's Committees and the corporations shall organize the surveys of production and/or repair capacities of their attached industrial enterprises and report on the results to the Prime Minister (via the Defense Ministry). The Defense Ministry shall sum up the survey results and select the industrial enterprises fully qualified for industrial mobilization for submission to the Prime Minister for decision.

Article 8.-

1. Within 30 days as from the date the Prime Minister issues decision to assign the industrial mobilization tasks to industrial enterprises, the Defense Ministry shall have to transfer to the industrial enterprises all industrial documents according to the requirements of manufacturing or repairing equipment in service of the army.

2. The industrial enterprises shall have to fully receive the volume of technological documents transferred on time and follow the management, use and confidentiality regime according to regulations. On the basis of the transferred technological documents, the industrial enterprises shall study and apply them in a way suitable to their respective technological conditions in order to efficiently manufacture or repair equipment.

Article 9.-

1. Pursuant to the Prime Minister's decision on industrial mobilization tasks, the Defense Ministry shall coordinate with ministries, ministerial-level agencies, provincial-level People’s Committees and corporations in guiding the industrial enterprises to elaborate investment projects on the completion of chains equipment manufacture and/or repair according to the current regulations on investment and construction management.

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Article 10.-

1. Annually, the Defense Ministry shall elaborate plans for manufacture, repair of equipment in order to maintain the capacities of the industrial enterprises' chains and submit them to the Prime Minister for decision. The manufacture, repair of equipment to maintain the capacities of chains at industrial enterprises shall follow the periodical regime but shall not be more than once every four (4) years, depending on the characteristics of the chains and the State budget's capability.

2. Industrial enterprises shall have to fully hand over the products to the Defense Ministry under the plans on equipment manufacture, repair in order to maintain the capacities of production and/or repair chains. The delivery and reception of products shall comply with the regulations of the Defense Ministry.

Article 11.-

1. Within twenty (20) days (working days) as from the date of deciding on their merger, division, separation, dissolution, transfer of ownership to subjects not governed by the Industrial Mobilization Ordinance or filing their requests for bankruptcy declaration or having completed their technological renewal but being no longer capable of performing the industrial mobilization tasks, the lawful representatives of industrial enterprises must report thereon in writing to the agencies which have issued decisions to set up the enterprises and to the Defense Ministry.

2. Within fifteen (15) days (working days) as from the date of receiving the reports of enterprises, the heads of the agencies which have issued decisions on setting up of the enterprises shall have to report thereon to their immediate superior bodies and to the Defense Ministry for sum-up report to the Prime Minister, and at the same time set up a council for inventory and evaluation of the actual conditions of the transferred technological documents and the technical conditions as well as value of the equipment assigned by the State to enterprises.

3. The Defense Ministry shall synthesize reports of ministries, ministerial-level agencies, provincial-level People's Committees and corporations for submission to the Prime Minister who shall decide on which industrial enterprises are no longer capable for industrial mobilization. The Defense Minister shall decide to recover for management or transfer to other industrial enterprises all the industrial documents already transferred and the equipment assigned by the State. The order and procedures for recovery of the transferred industrial documents and the State-assigned equipment shall comply with the Defense Ministry's guidance.

4. Industrial enterprises, when being no longer capable for industrial mobilization, shall have to fully hand over the transferred technological documents and the State-assigned equipment under the recovery decisions of the Defense Minister; in case of damage, the enterprises shall have to pay compensations therefor before the hand-over; the determination of damages shall comply with the guidance of the Defense Ministry and the Finance Ministry.

Article 12.-

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2. The Defense Ministry shall have to reserve special-use defense supplies; the Finance Ministry shall have to reserve common supplies under decisions of the Prime Minister.

Article 13.- The Defense Minister and the Finance Minister shall work out and submit to the Prime Minister plannings and plans to reserve supplies in service of industrial mobilization. Upon any requests for supplements or amendments to the lists of reserve supplies according to assigned responsibilities, the Defense Ministry and/or the Finance Ministry shall make reports thereon and submit them to the Prime Minister for decision.

Article 14.- The management of reserve supplies in service of industrial mobilization shall comply with law provisions on management of national reserve goods.

Chapter III

PRACTICING INDUSTRIAL MOBILIZATION

Article 15.-

1. The Defense Ministry shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in, determining for submission to the Prime Minister for decision the number of industrial enterprises and industrial mobilization norms for ministries, ministerial-level agencies, provincial-level People's Committees and corporations when practicing the industrial mobilization.

2. The industrial mobilization decisions must be notified on time, accurately, secretly and safely. The notification shall be carried out simultaneously through the administrative system from the central to grassroots levels.

3. Responsibilities to notify the industrial mobilization decisions:

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b) Basing itself on the Prime Minister's decisions, the Defense Ministry shall have to notify the Defense Minister's decisions on the list of industrial enterprises and the industrial mobilization norms of each enterprise to ministries, ministerial-level agencies, provincial-level People's Committees, corporations and army units under their management;

c) Basing themselves on the Prime Minister's decisions and the Defense Minister's decisions, ministries, ministerial-level agencies, provincial-level People's Committees and corporations shall have to notify the decisions to assign equipment manufacture, repair tasks of ministers, heads of ministerial-level agencies, presidents of provincial-level People's Committees and leaders of corporations to the industrial enterprises under their respective management.

4. The time limit for completion of notification by each level from the time of receiving the industrial mobilization decision to the time of completing the notification shall not exceed sixty (60) minutes.

Article 16.-

1. The provincial-level People's Committees shall have to ensure new locations for industrial enterprises to be relocated under the approved industrial mobilization plans when such locations are in the administrative boundaries managed by the provinces, and at the same time provide the deficit means in service of the relocation for enterprises. These means must be present at the locations where exist the equipment manufacturing and/or repairing chains to be removed within no more than twelve (12) hours after receiving the relocation order.

2. The industrial enterprises subject to relocation (including those not managed by provinces) shall report to the provincial-level People's Committees (of the localities where exist the equipment-manufacturing and/or repairing chains to be removed) on the deficit number of means for relocation, after getting the approval from the superior managing bodies.

Article 17.- The time limit for completion of the relocation of enterprises subject to relocation shall comply with the decisions of the Defense Minister.

Article 18.- Upon the Prime Minister's decisions on industrial mobilization and decisions on delivery of national reserve supplies, the Defense Minister and the Finance Minister shall direct the reserve units under their respective management to deliver reserve supplies for execution of industrial mobilization according to assigned responsibility. The industrial enterprises shall organize the reception of supplies at national reserve units.

Chapter IV

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Article 19.- While preparing for, and practicing industrial mobilization, industrial enterprises and laborers are entitled to enjoy the regimes and policies prescribed in Articles 27, 28 and 29 of the Industrial Mobilization Ordinance.

Article 20.- Industrial enterprises, when manufacturing or repairing equipment and receiving technology transfer in industrial mobilization, shall not have to pay value added tax under the provisions of the Value Added Tax Law and the documents guiding the implementation thereof.

Article 21.- Laborers directly participating in practicing industrial mobilization shall enjoy the defense and security service allowances like defense workers and employees under the current regulations.

Chapter V

BUDGET FOR INDUSTRIAL MOBILIZATION

Article 22.-

1. The State budget for the performance of industrial mobilization preparation tasks of ministries, ministerial-level agencies, provincial-level People's Committees and corporations shall be included in the annual budget estimates as provided for in the State Budget Law and documents guiding the implementation thereof.

2. The State budget for the performance of industrial mobilization tasks of ministries, ministerial-level agencies, provincial-level People's Committees and corporations shall be allocated when the Prime Minister issues decisions to assign the tasks of implementing industrial mobilization.

Article 23.-

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a) Surveys of manufacture and/or repair capacities of industrial enterprises:

- Preparing documents in service of surveys of equipment-manufacturing and/or - repairing capacities;

- Organizing surveys of equipment-manufacturing and/or- repairing capacities of enterprises;

- Organizing workshops on selection of enterprises capable of manufacturing and/or repairing equipment;

- Re-examining the capabilities of enterprises qualified for industrial mobilization.

b) Completion of equipment-manufacturing or- repairing chains for industrial mobilization:

- Expenses in service of formulation of investment projects on completion of equipment-manufacturing or-repairing chains;

- Preparing documents on design, technologies, guiding technical deployment, addition of special-use instruments, specific military equipment;

- Ensuring wages, allowances for laborers and participants in technological transfer;

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c) Scientific research, application of scientific and technological advance in service of industrial mobilization: professional package hiring, trial manufacture of products, conferences, seminars and other expenses prescribed by law for scientific research.

d) Professional fosterings for officials, workers, employees and other laborers and industrial -mobilization training and manoeuvres:

- Organizing professional fosterings for officials, workers, employees and other laborers and organizing industrial mobilization training and manoeuvres;

- Ensuring wages and allowances for laborers and participants in professional fosterings, trainings and drills and renumerations for teachers;

- Ensuring supplies in service of production and repair and organizing pre-acceptance tests of products in industrial mobilization trainings and manoeuvres;

- Paying compensations for material damage caused by industrial-mobilization training and/or manoeuvres (if any);

- Making preliminary and final reviews of industrial-mobilization trainings and/or manoeuvres.

e) Activities to maintain the manufacturing and/or repairing capacity of industrial mobilization chains:

- Maintenance and repair of specialized equipment;

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f) Reserve of supplies: capital for reserve supplies, support in procurement of equipment in service of reserve, construction and renovation of storehouses, yards and other support facilities.

g) Surveys for selection of new locations for enterprises subject to relocation.

h) Industrial-mobilization operations:

- Drawing up industrial-mobilization plans;

- Conferences, seminars, preliminary reviews, final reviews, commendations, document printing;

- Support in procurement of office equipment in service of industrial mobilization.

i) Other jobs related to industrial mobilization as provided for by law.

2. The central budget ensuring funding for industrial-mobilization preparations tasked to ministries, ministerial-level agencies, corporations shall be spent on the following contents:

a) Surveys of manufacturing or repairing capacities of industrial enterprises:

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- Organizing surveys of equipment-manufacturing/repairing capacity of enterprises;

- Organizing seminars on selection of enterprises capable of manufacturing and/or repairing equipment;

- Re-examining the capabilities of enterprises qualified for industrial mobilization.

b) Scientific research, application of scientific and technological advance in service of industrial mobilization: professional package hiring, trial manufacture of products; conferences, seminars and other expenses according to law provisions on scientific research.

c) Professional trainings for officials, workers, employees and other laborers and industrial mobilization trainings and manoeuvres:

- Organizing professional fosterings for officials, workers, employees and other laborers and organization of industrial-mobilization trainings and/or manoeuvres;

- Ensuring wages and allowances for laborers and participants in professional fosterings, trainings, drills and remunerations for teachers;

- Paying compensations for material damage caused by industrial mobilization trainings and/or manoeuvres (if any);

- Making preliminary and final reviews of industrial-mobilization trainings, manoeuvres.

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e) Surveys for selection of new locations for enterprises subject to relocation.

f) Industrial-mobilization operations:

- Drawing up industrial-mobilization plans;

- Organizing conferences, seminars, preliminary review, final review, commendation, document printing;

- Providing support in procurement of office equipment in service of industrial mobilization.

g) Other jobs related to industrial mobilization according to law provisions.

h) Particularly for the central budget ensuring funding for industrial mobilization preparations tasked to the Finance Ministry (other ministries and ministerial-level agencies as well as corporations do not have this spending content), it shall be spent on the content of supplies reserve: capital for reserve supplies, support in procurement of equipment in service of the reserve, construction and/or renovation of storehouses, yards and other support facilities.

3. The local budget ensuring funding for industrial mobilization preparation tasks shall be spent on the following contents:

a) Surveys of manufacturing/repairing capacities of industrial enterprises:

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- Organizing surveys of equipment-manufacturing/repairing capacities of enterprises;

- Organizing seminars on selection of enterprises capable of manufacturing, repairing equipment;

- Re-examining the capabilities of enterprises qualified for industrial mobilization.

b) Scientific research, application of scientific and technological advance in service of industrial mobilization: professional package hiring, trial manufacture of products, conferences, seminars and other expenses prescribed by law for scientific research.

c) Professional fosterings for officials, workers, employees and other laborers and industrial-mobilization trainings and manoeuvres:

- Organizing professional fosterings for officials, workers, employees, other laborers and organizing industrial mobilization trainings and/or manoeuvres;

- Ensuring wages and allowances for laborers and participants in professional fosterings, trainings, drills and remunerations for teachers;

- Paying compensations for material damage caused by industrial-mobilization trainings and/or manoeuvres (if any);

- Making preliminary and final reviews of industrial-mobilization trainings, manoeuvres.

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e) Surveys for selection of new locations for enterprises subject to relocation.

f) Industrial-mobilization operations:

- Drawing up industrial mobilization plans;

- Organizing conferences, seminars, preliminary review, final review, commendation, document printing;

- Providing support in procurement of office equipment in service of industrial mobilization;

g) Other jobs related to industrial mobilization according to law provisions.

Article 24.- Budget for industrial mobilization practice tasked to ministries, ministerial-level agencies, provincial-level People's Committees and corporations shall be spent on the following jobs:

1. Movement of industrial mobilization chains upon decisions on industrial mobilization:

a) Construction of infrastructures and other facilities in service of equipment-manufacturing/repairing chains at new locations;

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c) Adopting policies towards owners of means mobilized in direct service of the movement.

2. Manufacture or repair of equipment upon decisions on industrial mobilization: labor cost, production/repair supplies, costs of energy and other expenses according to the State's regulations on costs of products.

3. Scientific research, application of scientific and technological advance in service of industrial mobilization: professional package hiring, trial manufacture of products, conferences, seminars and other expenses prescribed by law for scientific research.

4. Reserve of supplies: capital for reserve supplies, support for procurement of equipment in service of reserve, construction and renovation of storehouses, yards and other support facilities.

5. Production support for enterprises after fulfilling their industrial mobilization tasks.

6. Industrial mobilization operations:

a) Conferences, seminars, preliminary review, final review, commendation, document printing;

b) Support for procurement of office equipment in service of industrial mobilization.

7. Other jobs related to industrial mobilization according to law provisions.

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1. Basing themselves on their assigned industrial mobilization tasks, ministries, ministerial-level agencies and corporations shall estimate the industrial mobilization budgets, clearly identifying budget for regular expenditures, development investment expenditures, and send them to the Finance Ministry, the Defense Ministry, the Ministry of Planning and Investment for sum-up report to the Prime Minister.

2. The provincial-level People's Committees shall estimate the industrial mobilization budgets in the local budgets and submit them to the People's Councils of the same level for decision according to the State Budget Law and documents guiding the implementation thereof.

Article 26.-

1. Basing themselves on the assigned industrial mobilization budget estimates, ministries, ministerial-level agencies, provincial-level People's Committees and corporations shall allocate budget estimates to their respective units and enterprises; make sum-up reports on budget allocation results to the Finance Ministry, the Ministry of Planning and Investment, the Defense Ministry.

2. The ministries, ministerial-level agencies, provincial-level People's Committees, corporations and their respective attached units and enterprises assigned the industrial mobilization budget estimates shall have to perform the tasks and report on budget settlements according to current regulations.

Chapter VI

RESPONSIBILITIES FOR STATE MANAGEMENT AND IMPLEMENTATION ORGANIZATION IN INDUSTRIAL MOBILIZATION

Article 27.-

1. The Defense Ministry:

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b) To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment, the Finance Ministry and the Industry Ministry in, drawing up the State plans on industrial mobilization and submit them to the Prime Minister for approval;

c) To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in, formulating industrial mobilization norms to be assigned to ministries, ministerial-level agencies, provincial-level People's Committees and corporations and submit them to the Prime Minister for decision;

d) To coordinate with the Ministry of Planning and Investment in elaborating contents of decisions to assign the task of surveying the manufacture/repair capacities of industrial enterprises to ministries, ministerial-level agencies, provincial-level People's Committees and corporations for the Ministry of Planning and Investment to submit them to the Prime Minister for decision;

e) To coordinate with the Finance Ministry and the Ministry of Planning and Investment in synthesizing the annual industrial mobilization budget estimates for the Finance Ministry to submit them to the Prime Minister for decision;

f) To coordinate with the Finance Ministry in determining the lists of reserve supplies for special military use and common supplies in service of industrial mobilization for the Finance Ministry to submit them to the Prime Minister for decision;

g) To submit to the Prime Minister for decision the scale, contents and forms of industrial mobilization manoeuvres.

2. The Ministry of Planning and Investment:

a) To coordinate, within the scope of its tasks and powers, with the Defense Ministry in performing the State management over industrial mobilization;

b) To assume the prime responsibility for, and coordinate with the Defense Ministry in, formulating the contents of decisions to assign the task of surveying manufacture/repair capacities of industrial enterprises to ministries, ministerial-level agencies, provincial-level People's Committees and corporations for submission to the Prime Minister for decision;

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d) To coordinate with the Defense Ministry in formulating industrial mobilization norms to be assigned to ministries, ministerial-level agencies, provincial-level People's Committees and corporations for the Defense Ministry to submit them to the Prime Minister for decision;

e) To participate in appraising investment projects on completion of enterprises's equipment-manufacturing/repairing chains for industrial mobilization;

f) To coordinate with the Finance Ministry in synthesizing the annual industrial mobilization budget estimates for the Finance Ministry to submit them to the Prime Minister for decision.

3. The Finance Ministry:

a) To coordinate, within the scope of its tasks and powers, with the Defense Ministry in performing the State management over industrial mobilization;

b) To coordinate with the Defense Ministry in working out State plans on industrial mobilization for the Defense Ministry to submit them to the Prime Minister for approval;

c) To assume the prime responsibility for, and coordinate with the Defense Ministry in, determining the lists of reserve supplies for special military use and common supplies in service of industrial mobilization for submission to the Prime Minister for decision;

d) To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and the Defense Ministry in, synthesizing the annual industrial mobilization budget estimates for submission to the Prime Minister for decision;

e) To participate in appraising the investment projects on completion of enterprises' equipment-manufacturing/repairing chains for industrial mobilization.

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a) To coordinate, within the scope of its tasks and powers, with the Defense Ministry in performing the State management over industrial mobilization;

b) To coordinate with the Defense Ministry in drawing up State plans on industrial mobilization for the Defense ministry to submit them to the Prime Minister for approval; to organize the elaboration and implementation of plans on industrial mobilization within its management scope under the Prime Minister's decision;

c) To participate in appraising investment projects on completion of its enterprises' equipment-manufacturing/repairing chains for industrial mobilization;

d) To notify in writing the Defense Ministry of schemes on overall development strategy and planning, regional planning on mechanical engineering, metallurgical and chemical industries once they are approved by the Government.

5. Ministries, ministerial-level agencies, provincial-level People's Committees:

a) To coordinate, within the scope of their respective tasks and powers, with the Defense Ministry in performing the State management over industrial mobilization; to participate in appraising investment projects on completion of their respective enterprises' equipment-manufacturing/repairing chains for industrial mobilization; to organize the elaboration and implementation of plans for industrial mobilization within their respective management scope under the Prime Minister's decision;

b) The provincial-level People's Committees manage their attached industrial enterprises assigned the industrial mobilization tasks, coordinate with ministries, ministerial-level agencies, corporations with industrial enterprises in their respective localities in performing the industrial mobilization tasks; notify in writing the Defense Ministry of long-term and five-year plans on development of engineering, metallurgical, chemical and electronic industries of their localities.

6. Corporations: To organize the elaboration and implementation of plans on industrial mobilization in their respective management scope under the Prime Minister's decisions; participate in appraising investment projects on completion of their attached enterprises' equipment-manufacturing/repairing chains for industrial mobilization.

Chapter VII

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Article 28.- Agencies, organizations and individuals that record achievements in industrial mobilization preparation and practice shall be commended/rewarded according to law provisions.

Article 29.- Agencies, organizations and individuals that commit acts of violating the provisions of this Decree shall, depending on the nature and seriousness of their violations, be disciplined, administratively sanctioned or examined for penal liability according to law provisions.

Chapter VIII

IMPLEMENTATION PROVISIONS

Article 30.- This Decree takes implementation effect 15 days after its publication in the Official Gazette. The previous stipulations contrary to this Decree shall all be annulled.

Article 31.- The Defense Ministry shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment, the Finance Ministry and the Industry Ministry in guiding, within the scope of their respective functions, tasks and powers, the implementation of this Decree.

Article 32.- The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies, the presidents of the provincial/municipal People's Committees, the heads of corporations shall have to implement this Decree.

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