ORDINANCE

ON THRIFT PRACTICE AND WASTEFULNESS COMBAT

Thrift practice is a national policy. In order to effectively manage and utilize various resources, practice thrift and combat wastefulness in production and consumption, ensure socio-economic development and accelerate the national industrialization and modernization;
Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam;
Pursuant to the Resolution of the Xth National Assembly at its second session on the 1998 law- and ordinance-making program;
This Ordinance provides for the thrift practice and wastefulness combat in the management and use of State budget allocations, State capital and property and the mobilization of the people to practice thrift in production and consumption.

Chapter I

GENERAL PROVISIONS

Article 1.- Organizations or individuals that manage and use State budget funding, State capital and property, land, working offices, public service houses, natural resources, construction investment capital, capital and property at State enterprises, shall have to practice thrift and combat wastefulness in accordance with the provisions of this Ordinance.

Every citizen has the obligation to practice thrift in production and consumption so as to save capital for development investment and carry out the national industrialization and modernization.

Article 2.- In this Ordinance the following terms and expressions are construed as follows:

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2. Wastefulness means the use of financial, labor and other resources in excess of the quotas, norms and regimes prescribed by competent State agencies or such resources are fully used according to the prescribed quotas, norms and regimes but a poorer quality is obtained or the set objectives are not attained.

3. State budget funding includes amounts of money allocated from the State budget for the tasks and objectives set forth in the State budget estimate already approved by competent State agencies.

4. State capital and property include capital and funding allocated from the State budget; capital derived from the State budget; property formed from the source of State budget capital; State credit capital, foreign aid, contributions from the people; land, houses and other architectural works under the State ownership; natural resources; and donations from organizations and individuals inside and outside the country.

5. Illicit fund is a fund set up at variance with the State regulations by an organization or several individuals for their own purpose in order to shirk the inspection and supervision by competent State agencies.

6. Organizations include State agencies, non-business units, units of the armed forces, political organizations, socio-political organizations, social organizations, socio-professional organizations, State enterprises and other economic organizations.

Article 3.- The allocation and use of State capital and property must comply with the regulations on consideration, approval and allocation thereof and the regulations on quotas, norms and regimes issued by competent State agencies, ensuring thriftiness, fairness and transparency as prescribed by law.

The heads of organizations assigned to manage and use State capital and property shall have to apply measures to practice thrift, combat wastefulness and be accountable for acts of wastefulness within the scope of their respective managerial functions.

Article 4.- Public employees who cause waste of State capital or property shall, depending on the nature and seriousness of the violation, take material responsibility, be disciplined or examined for penal liability, and pay compensation for any damage caused thereby in accordance with the provisions of law.

Individuals who cause waste of State capital or property shall, depending on the nature and seriousness of the violation, be administratively sanctioned or examined for penal liability, and pay compensation for any damage caused thereby in accordance with the provisions of law.

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Article 6.-

1. The Government shall direct the ministries, branches and local administrations to elaborate regulations on the organization of traditional festivals, weddings, funerals and other regulations, ensuring the preservation of Vietnam's fine customs and practices, saving the people's money and time, and combating the abuse of beliefs, religions and traditional practices to make illicit profits.

2. The ministries, the ministerial-level agencies, the agencies attached to the Government, the People's Councils and People's Committees at various levels, the Vietnam Fatherland Front and its member organizations shall, within the scope of their respective functions, tasks and powers, have to organize, guide and mobilize the people to practice thrift, combat wastefulness in production and consumption, in cultural activities, traditional festivals, weddings, funerals and other activities.

3. The information and press agencies shall have to propagate examples of good people and good deeds in the thrift practice and wastefulness combat; combat and criticize acts of wastefulness in production and consumption in accordance with the provisions of law.

Chapter II

SPECIFIC PROVISIONS ON THRIFT PRACTICE AND WASTFULNESS COMBAT

SECTION 1. TO PRACTICE THRIFT AND COMBAT WASTEFULNESS IN THE USE OF THE STATE BUDGET 'S REGULAR EXPENDITURS

Article 7.- The establishment of new organizations, the merger, separation and splitting of existing ones, and the adjustment of the geographical boundaries of administrative units must be based on the actual needs, and ensure the socio-economic effectiveness, national defense and security, thrift practice and wastefulness combat.

Article 8.-

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The recruitment of laborers in excess of the payroll and the payment of wages in excess of the wage fund assigned by competent State agencies are strictly forbidden.

2. The recruitment of laborers under long-term contracts by organizations must comply with the regulations of competent State agencies and such recruitment must not result in the payment of wages in excess of the total wage fund assigned.

3. Any decisions on labor recruitment, skill upgrading, professional grade transfer or raising wage payments at variance with the regulations shall be canceled and if damage is caused by the persons who make such decisions they shall have to compensate therefor.

Article 9.-

1. Organizations that employ laborers shall have to arrange laborers in a rational manner. Laborers shall have to comply with the working time and labor disciplines as prescribed by the Labor Code and the Ordinance on Public Employees.

2. The heads of organizations shall have to pay salaries and wages to laborers as prescribed by law. Any individuals that violate the regulations on the working time and labor disciplines shall be handled in accordance with the provisions of the Labor Code and the Ordinance on Public Employees.

Article 10.-

1. Equipment, facilities and other property equipped in organizations shall comply with the criteria, standards and regimes prescribed by competent State agencies. The procurement of equipment, means and other property which are subject to bidding shall comply with the bidding regulations.

2. Equipment, facilities and other property procured with State budget funding must be home-made products, except for cases where the home-made products, though being of the same quality as foreign-made ones, have higher prices, or though having the same prices but their quality is poorer than that of foreign made products.

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Article 11.- The procurement and use of means of transport in service of working shall have to comply with the quotas, criteria, regime, type and the maximum ceiling price as stipulated by the Government.

The Government shall specify the handling of cases where means of transport are used in excess of the prescribed quotas, at variance with the prescribed criteria, regime and types applicable to transport means procured before the effective date of this Ordinance.

Article 12.-

1. The installation and use of information and communication facilities in offices and private houses of public employees shall have to comply with the norms, criteria and regime prescribed by competent State agencies and the already approved cost estimate.

2. Information and communication facilities in offices shall be used only for public duties; if for personal purposes, users shall have to pay charges. People who use their organizations' information and communication equipment in their private houses in excess of the prescribed norms, criteria and regime shall have to pay the excessive charges.

Article 13.- The regular spending must comply with the norms, criteria and regime prescribed by competent State agencies and not exceed the already approved cost estimates.

Any persons who decide regular expenditures at variance with the prescribed norms, criteria and regime or the already approved cost estimate shall be handled in accordance with the provisions of law.

Article 14.-

1. The sending of public employees on working missions must be made in accordance with plans, the working requirements, for the right purposes and ensure the efficiency.

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Article 15.-

1. The organization of conferences must comply with plans and ensure the saving of time and State funding.

2. The expenses for organizing conferences must comply with the norms, criteria and regime prescribed by competent State agencies and the approved cost estimates.

3. Expenses for conferences included in the annual cost estimates of organizations funded by the State budget, which have not been used up as a result of the adoption of effective thrift practicing measures, shall be allocated for other tasks as stipulated by the Government.

Article 16.-

1. All expenses for receptions and festive occasions must comply with the regime prescribed by competent State agencies and the approved cost estimate.

2. The organization of anniversaries and festivals by organizations or localities shall comply with the norms, criteria and regime prescribed by competent State agencies.

3. The use of public funds for commending and rewarding organizations and/or individuals shall comply with the Government's stipulations; any person who decides any amount in excess of the prescribed norms, criteria and regime shall be handled in accordance with the provisions of law.

All organizations and individuals are strictly forbidden to use public funds for expenditures outside the prescribed regime.

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Article 18.- The setting up of illicit funds is strictly forbidden.

All illegal funds shall be recovered and remitted into the State budget; any person who decides to set up an illicit fund or who uses such fund shall be handled in accordance with the provisions of law.

Article 19.- All allocations from a higher-level budget to a lower-level one and all allocations to enterprises must be distributed and used according to the regulations on the assignment of the budget management and the norms, criteria and regime prescribed by competent State agencies.

Article 20.- The Government shall stipulate the thrift practice and wastefulness combat with regard to special expenditures for defense and security.

SECTION 2. TO PRACTICE THRIFT AND COMBAT WASTEFULNESS IN INVESTMENT AND CONSTRUCTION

Article 21.- The approval of investment planning and plans and the allocation of investment capital must ensure the socio-economic effectiveness and suit the potential of the economy.

All projects shall be approved only when they are included in the general planning ratified by competent levels.

All investment decisions must be made on the basis that the projects have been formulated according to the regulations on investment and construction management and suited to the financial capabilities in each period.

All decisions to invest in projects that are outside the approved general planning, formulated and evaluated at variance with the prescribed procedures shall be suspended. Any person who makes a wrong investment decision shall be handled in accordance with the provisions of law.

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Article 23.-

1. The evaluation and approval of the total cost estimate of a project must be based on the economic-technical norms and standards prescribed by competent State agencies and comply with the approved technical design.

2. The project construction bidding must comply with the bidding regulations.

3. Any persons who are competent to approve total cost estimates or bidding results but violate the provisions in Clause 1 and Clause 2 of this Article shall be handled in accordance with the provisions of law.

Article 24.- The investment and construction of a project must comply with its technical design, construction tempo and cost estimate or its winning bid price already approved.

A project constructor who prolongs the construction time, constructs the project at variance with the technical design or use raw materials, fuel and materials of the wrong quality and technical standards, thus reducing the project quality and causing waste shall be handled in accordance with the provisions of law.

Article 25.- The allocation or lending of capital must comply with the set tempo, the project cost estimate or the winning bid price; the project inspection, supervision and settlement must comply with the regulations on the management of investment and construction capital.

Any competent persons who grant or lend capital in excess of the cost estimate or the bid winning price shall be handled in accordance with the provisions of law, except for special cases to be stipulated by the Government.

SECTION 3. TO PRACTICE THRIFT AND COMBAT WASTEFULNESS IN THE MANAGEMENT AND USE OF LAND, WORKING OFFICES, PUBLIC SERVICE HOUSES AND NATURAL RESOURCES

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Any land which is assigned or leased ultra vires, for a wrong use purpose or in excess of the prescribed norms, criteria and regime shall be recovered; any persons who violate the regulations on land assignment or lease shall be handled in accordance with the provisions of law.

Article 27.- Organizations and/or individuals that are assigned or leased land by the State shall have to use land economically and for the right purposes as stated in the land assignment or lease decisions and the land use right certificates granted by competent State agencies. Any assigned or leased land which is not used or used for a wrong purpose as prescribed by law shall be in all circumstances recovered.

Article 28.- Working offices, public service houses and other architectural works must be used according to the norms, criteria and regime prescribed by competent State agencies, any excess shall be rationally re-arranged or adjusted. Unused working offices and public service houses shall be recovered.

The assignment of working offices, public service houses and other architectural works to organizations and/or individuals for use must comply with the norms, criteria and regime prescribed by competent State agencies.

Article 29.- The management and exploitation of minerals and other natural resources shall comply with the provisions of law as well as the technological processes, technical regulations, economic-technical norms and criteria prescribed by competent State agencies.

Any violation of the regulations on the natural resource prospection, exploitation and utilization, causing waste and damage to natural resources and destroying the environment shall be handled according to law.

SECTION 4. TO PRACTICE THRIFT AND COMBAT WASTEFULNESS IN THE MANAGEMENT AND USE OF CAPITAL AND PROPERTY AT STATE ENTERPRISES

Article 30.-

1. State enterprises shall have to abide by the Government's stipulations on financial management.

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Article 31.- State enterprises shall have to abide by the regulations on the wage regime and the wage restriction level prescribed by competent State agencies. The use of wage funds for other purposes is strictly forbidden.

Any competent persons who approve or effect payments at variance with the wage regime shall be handled according to law.

Article 32.- The setting up and use of funds at State enterprises and the use of State budget allocations must comply with the regulations of competent State agencies.

All illicit funds shall be recovered and remitted into the State budget. Any persons who decide to set up illicit funds shall be handled according to law.

Article 33.- The procurement of equipment, facilities and other property in service of the administrative management in State enterprises must comply with the Government's stipulations. Any equipment, facilities and other property supplied for State enterprises in excess of the prescribed norms, criteria and regime shall be handled according to the Government's stipulations.

Article 34.- State enterprises shall have to use the housing spaces and land areas for the right purposes as stated in the land assignment or lease decisions and the land use right certificates issued by competent State agencies; any use of houses and/or land for wrong purposes shall be handled in accordance with the provisions of law.

Article 35.- State enterprises shall have to abide by all the regulations on cost-accounting, accountancy and statistics; The forgery of documents and vouchers and exclusion of property, materials, capital and funding from accounting records are strictly forbidden and violators shall be handled in accordance with the provisions of law.

Chapter III

TASKS AND POWERS OF STATE AGENCIES AND RESPONSIBILITIES OF ORGANIZATIONS AND INDIVIDUALS

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Article 37.- In the thrift practice and wastefulness combat, the Government shall have the following powers and tasks:

1. Directing the ministries, the ministerial-level agencies, the agencies attached to the Government, and the People's Committees of the provinces and cities directly under the Central Government to thoroughly practice thrift and combat wastefulness in accordance with the provisions of this Ordinance and other provisions of law;

2. Elaborating, issuing, amending or supplementing the economic-technical norms, the norms, criteria and regime on the use of State budget funding, State capital and property suitable to the socio-economic conditions in each period;

3. Directing and organizing the inspection and supervision of the thrift practice and wastefulness combat.

Article 38.- In the thrift practice and wastefulness combat the inspection agencies, the investigation agencies, the procuracies and the courts shall have to coordinate with the concerned organizations in inspecting, investigating, prosecuting, detecting and promptly and strictly handling acts of squandering State capital and property.

Article 39.- In the thrift practice and wastefulness combat, the Ministry of Finance shall have the following tasks and powers:

1. Elaborating, issuing, amending, supplementing or submitting to the Government for issuance, amendment or supplement the financial norms, criteria and regime on the management and use of State budget funding, State capital and property; issuing regulations and procedures for the control of expenditures; and prescribing the regime of public financial reports and the process of managing and using public property;

2. Organizing the inspection and supervision of the State budget allocation and spending, the management, allocation and use of public property, the disbursement of capital for investment and construction, the management and use of State capital and property at enterprises;

3. Elaborating and submitting to the Government for issuance the plan and program on the organization and implementation of thrift practice and wastefulness combat; observing the regime on periodical reports on the situation of thrift practice and wastefulness combat in the management and use of State budget funding as well as State capital and property.

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1. Directing the units under their management to organize and carry out the thrift practice and wastefulness combat;

2. Screening the system of economic-technical norms under their management; coordinating with the Ministry of Finance in issuing, amending, supplementing or submitting to the Government for issuance, amendment or supplement the norms, criteria and regime for uniform application nationwide;

3. Organizing the inspection and supervision of thrift practice and wastefulness combat in the units under their management.

Article 41.- In the thrift practice and wastefulness combat, the Government Commission on Organization and Personnel shall have the following tasks and powers:

1. Issuing, amending and/or supplementing the regulations on the regime of public employees' responsibilities for thrift practice and wastefulness combat;

2. Coordinating with the Ministry of Finance in elaborating and submitting to the Government for issuance, amendment and/or supplement the regulations on the use of facilities and public service houses by public employees;

3. Inspecting the implementation of public employee payrolls and wage funds allocated from the State budget.

Article 42.- In the thrift practice and wastefulness combat, the People's Councils at all levels shall have the following tasks and powers:

1. Deciding the local budget estimates and allocations according to the norms, criteria and regime prescribed by competent State agencies, ensuring thrift practice and wastefulness combat;

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3. Supervising the implementation of the provisions of the Ordinance on Thrift Practice and Wastefulness Combat in the localities;

4. Making budget allocations to budget-drafting units at the immediate lower level in a transparent manner; supervising the implementation of fiscal transparency in the management and use of State budget funding, State capital and property in the localities;

5. Coordinating with the political organizations, the Vietnam Fatherland Front and its member organizations in supervising the thrift practice, wastefulness combat and fiscal transparency in the localities.

Article 43.- In the thrift practice and wastefulness combat, the People's Committees at all levels shall have the following tasks and powers:

1. Organizing the implementation of the Ordinance on Thrift Practice and Wastefulness Combat in the localities;

2. Organizing the implementation of the regulations on the budget management, the investment and construction management and the public property management; inspecting the use of capital and property at State enterprises according to the regulations on management assignment;

3. Applying fiscal transparency in the management and use of State budget funding, State capital and property in the localities;

4. Periodically examining, evaluating and reporting on the situation of the implementation of the Ordinance on Thrift Practice and Wastefulness Combat in the localities.

Article 44.- Organizations and/or individuals that manage and use State capital and property shall have the following responsibilities:

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2. Complying with the regulations on the management and use of State capital and property as prescribed by law;

3. Making public all expenditures;

4. Making plans and taking measures to organize the thrift practice and wastefulness combat; promptly overcome and handle cases of wastefulness; periodically reporting the results to the concerned higher-level managing agencies.

Article 45.- State enterprises shall have the following responsibilities:

1. Complying with the economic-technical norms, criteria and regime prescribed by competent State agencies;

2. Elaborating and observing the specific norms and criteria on the use of capital, saving of supplies, raw materials, fuel, materials and managerial expenses at enterprises;

3. Implementing the enterprises' reporting and fiscal transparency regimes, publicize the systems of norms, criteria and regime on financial expenditures, expenditures on the procurement of office equipment and cars; facilitating the supervision and inspection by competent State agencies and their laborers of the thrift practice and wastefulness combat;

4. Making plans and adopting measures to practice thrift and combat wastefulness; organizing the inspection of the thrift practice and wastefulness combat within their attached units; handling cases of wastefulness in enterprises; periodically reporting the results to the concerned higher-level managing agencies.

Article 46.- The Vietnam Fatherland Front and its member organizations shall have the following responsibilities:

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2. Supervising the thrift practice and wastefulness combat at State capital and property-using organizations and supervising the handling of acts of wastefulness;

3. Encouraging all organizations and individuals to actively practice thrift and combat wastefulness.

Chapter IV

COMMENDATION AND HANDLING OF VIOLATIONS

Article 47.- Organizations and/or individuals that make achievements in the thrift practice and wastefulness combat shall be commended and rewarded in accordance with the provisions of law.

Article 48.- The State encourages organizations and individuals to practice thrift and combat wastefulness.

The money saved from regular expenditures of State budget-funded organizations shall be spent for other purposes as prescribed by the Law on the State Budget.

The Government shall specify the spending quotas and material incentives for cases of saving State budget funding.

Article 49.- Any persons who violate the provisions of this Ordinance shall, depending on the nature and seriousness of their violation, be disciplined, administratively sanctioned or examined for penal liability and have to pay compensation as prescribed by law for any damage caused by his/her violation.

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Chapter V

IMPLEMENTATION PROVISIONS

Article 51.- This Ordinance takes effect form May 1st, 1998.

All earlier provisions which are contrary to this Ordinance are hereby annulled.

Article 52.- The Government shall detail and guide the implementation of this Ordinance.

THE STANDING COMMITTEE OF NATIONAL ASSEMBLY
CHAIRMAN




Nong Duc Manh