THÔNG BÁO

VỀ VIỆC ĐIỀU ƯỚC QUỐC TẾ CÓ HIỆU LỰC

Thực hiện quy định tại khoản 3 Điều 47 của Luật Ký kết, gia nhập và thực hiện điều ước quốc tế năm 2005, Bộ Ngoại giao trân trọng thông báo:

Công hàm trao đổi giữa Chính phủ nước Cộng hòa xã hội chủ nghĩa Việt Nam và Chính phủ Nhật Bản về việc Chính phủ Nhật Bản cung cấp khoản viện trợ 500 triệu Yên tài khóa 2014 nhằm đảm bảo an toàn hàng hải, ký tại Hà Nội ngày 01 tháng 8 năm 2014, có hiệu lực kể từ ngày 01 tháng 8 năm 2014.

Bộ Ngoại giao trân trọng gửi Bản sao Công hàm theo quy định tại Điều 68 của Luật nêu trên./.

Hanoi, August 1, 2014

Excellency,

I have the honour to acknowledge the receipt of Your Excellency's Note of today’s date, which reads as follows:

“I have the honour to refer to the recent discussions held between the representatives of the Government of Japan and of the Government of the Socialist Republic of Viet Nam concerning Japanese economic cooperation to be extended with a view to strengthening friendly and cooperative relations between the two countries, and to propose on behalf of the Government of Japan the following understanding:

1. For the purpose of contributing to promotion of the economic and social development efforts by the Government of the Socialist Republic of Viet Nam, the Government of Japan shall extend to the Government of the Socialist Republic of Viet Nam, in accordance with the relevant laws and regulations of Japan, a grant of five hundred million Japanese Yen (¥ 500,000,000) (hereinafter referred to as “the Grant”).

2. (1) The Grant and its accrued interest shall be used by the Government of the Socialist Republic of Viet Nam properly and exclusively for the purchase of products enumerated in a list to be mutually agreed upon between the authorities concerned of the two Governments and services incidental to such products, provided that those products are produced in eligible source countries.

His Excellency

Mr. KISHIDA FUMIO

Minister of Foreign Affairs of Japan

(2) The list mentioned in sub-paragraph (1) above will be subject to modifications which may be agreed upon between the authorities concerned of the two Governments.

(3) The scope of the eligible source countries mentioned in sub-paragraph (1) above shall be agreed upon between the authorities concerned of the two Governments.

3. (1) The Government of the Socialist Republic of Viet Nam shall open a yen ordinary deposit account at a bank in Japan in the name of the Government of the Socialist Republic of Viet Nam (hereinafter referred to as “the Account”) within fourteen days after the date of entry into force of the present understanding and shall notify in writing the Government of Japan of the completion of the procedure for opening the Account within seven days after the date of the opening of the Account.

(2) The sole purpose of the Account is to receive the payment in Japanese yen by the Government of Japan referred to in paragraph 4 as well as to make payments necessary for the purchase of the products and services referred to in sub-paragraph (1) of paragraph 2, and such other payment as may be agreed upon between the authorities concerned of the two Governments.

4. The Government of Japan shall execute the Grant by making payment in Japanese yen of the amount referred to in paragraph 1 to the Account during the period between the date of receipt of the written notification referred to in sub-paragraph (1) of paragraph 3 and March 31, 2015. The period may be extended by mutual consent between the authorities concerned of the two Governments.

5. (1) The Government of the Socialist Republic of Viet Nam shall take necessary measures:

(a) to ensure that the Grant and its accrued interest be completely disbursed from the Account to be ready for the procurement of goods or services within a period of twelve months after the date of the execution of the Grant unless the period is extended by mutual consent between the authorities concerned of the two Governments and to refund the amount remaining in the Account after the period to the Government of Japan;

(b) to ensure that customs duties, internal taxes and other fiscal levies which may be imposed in the Socialist Republic of Viet Nam with respect to the purchase of the products and services referred to in sub-paragraph (1) of paragraph 2 shall not be borne by the Grant and its accrued interest;

(c) to ensure that the Grant and its accrued interest be used properly and effectively for promotion of the economic and social development efforts;

(d) to present to the Government of Japan a report prepared in a written form acceptable to the Government of Japan on the transactions on the Account together with copies of contracts, vouchers and other documents concerning the relevant transactions without delay when the Grant and its accrued interest are completely drawn in accordance with the provisions of sub-paragraph (2) of paragraph 3, or when the period for the use of the Grant and its accrued interest expires in accordance with the provisions of (a) above, or upon request by the Government of Japan; and

(e) to give due environmental and social consideration in the uses of the Grant and its accrued interest.

(2) While ensuring fair treatment of sources of information, the Government of the Socialist Republic of Viet Nam shall provide the Government of Japan with necessary information, including information on corrupt practice, related to the Grant.

(3) The products purchased under the Grant and its accrued interest shall not be re-exported from the Socialist Republic of Viet Nam.

6. The Government of the Socialist Republic of Viet Nam shall, except as provided for in paragraph 7, take necessary measures:

(a) to ensure that the products referred to in sub-paragraph (1) of paragraph 2 be utilized, in principle, by itself or end-users, for non-commercial purposes; and

(b) to ensure that the products referred to in sub-paragraph (1) of paragraph 2 be maintained and used properly and effectively for promotion of the economic and social development efforts.

7. (1) Subject to the agreement between the authorities concerned of the two Governments, the Government of the Socialist Republic of Viet Nam may receive the proceeds from sales and lease of the products referred to in sub-paragraph (1) of Paragraph 2. In that case, the Government of the Socialist Republic of Viet Nam shall ensure that it will deposit in Vietnamese currency the proceeds from such sales and lease in an account to be opened in its name in a bank to be agreed upon between the authorities concerned of the two Governments. The amount of the proceeds to be deposited shall be agreed between the authorities concerned of the two Governments. The deposit shall be made within the period of three years from the date of entry into force of the present understanding, unless otherwise agreed between the authorities concerned of the two Governments.

(2) The fund thus deposited shall be utilized for economic and social development purposes in the Socialist Republic of Viet Nam.

(3) The authorities concerned of the two Governments shall consult with each other about the detail of the utilization of the fund deposited prior to the utilization.

(4) The Government of the Socialist Republic of Viet Nam shall present to the Government of Japan a report prepared in a written form acceptable to the Government of Japan on the utilization of the fund deposited without delay when the fund deposited is completely used in accordance with the provisions of sub-paragraphs (2) and (3) above.

8. Further procedural details for the implementation of the present understanding shall be agreed upon through consultation between the authorities concerned of the two Governments.

9. The two Governments shall consult with each other in respect of any matter that may arise from or in connection with the present understanding.

I have further the honour to propose that this Note and Your Excellency’s Note in reply confirming on behalf of the Government of the Socialist Republic of Viet Nam the foregoing understanding shall constitute an agreement between the two Governments, which shall enter into force on the date of Your Excellency’s Note in reply.

I avail myself of this opportunity to renew to Your Excellency the assurance of my highest consideration.”

I have further the honour to confirm on behalf of the Government of the Socialist Republic of Viet Nam the foregoing understanding and to agree that Your Excellency’s Note and this Note in reply shall constitute an agreement between the two Governments, which shall enter into force on the date of this Note in reply.

I avail myself of this opportunity to renew to Your Excellency the assurance of my highest consideration.

Hanoi, August 1, 2014

Excellency,

I have the honour to refer to the recent discussions held between the representatives of the Government of Japan and of the Government of the Socialist Republic of Viet Nam concerning Japanese economic cooperation to be extended with a view to strengthening friendly and cooperative relations between the two countries, and to propose on behalf of the Government of Japan the following understanding:

1. For the purpose of contributing to promotion of the economic and social development efforts by the Government of the Socialist Republic of Viet Nam, the Government of Japan shall extend to the Government of the Socialist Republic of Viet Nam, in accordance with the relevant laws and regulations of Japan, a grant of five hundred million Japanese Yen (¥ 500,000,000) (hereinafter referred to as “the Grant”).

2. (1) The Grant and its accrued interest shall be used by the Government of the Socialist Republic of Viet Nam properly and exclusively for the purchase of products enumerated in a list to be mutually agreed upon between the authorities concerned of the two Governments and services incidental to such products, provided that those products are produced in eligible source countries.

(2) The list mentioned in sub-paragraph (1) above will be subject to modifications which may be agreed upon between the authorities concerned of the two Governments.

(3) The scope of the eligible source countries mentioned in sub-paragraph (1) above shall be agreed upon between the authorities concerned of the two Governments.

3. (1) The Government of the Socialist Republic of Viet Nam shall open a yen ordinary deposit account at a bank in Japan in the name of the Government of the Socialist Republic of Viet Nam (hereinafter referred to as “the Account”) within fourteen days after the date of entry into force of the present understanding and shall notify in writing the Government of Japan of the completion of the procedure for opening the Account within seven days after the date of the opening of the Account.

(2) The sole purpose of the Account is to receive the payment in Japanese yen by the Government of Japan referred to in paragraph 4 as well as to make payments necessary for the purchase of the products and services referred to in sub-paragraph (1) of paragraph 2, and such other payment as may be agreed upon between the authorities concerned of the two Governments.

4. The Government of Japan shall execute the Grant by making payment in Japanese yen of the amount referred to in paragraph 1 to the Account during the period between the date of receipt of the written notification referred to in sub-paragraph (1) of paragraph 3 and March 31, 2015. The period may be extended by mutual consent between the authorities concerned of the two Governments.

5. (1) The Government of the Socialist Republic of Viet Nam shall take necessary measures:

(a) to ensure that the Grant and its accrued interest be completely disbursed from the Account to be ready for the procurement of goods or services within a period of twelve months after the date of the execution of the Grant unless the period is extended by mutual consent between the authorities concerned of the two Governments and to refund the amount remaining in the Account after the period to the Government of Japan;

(b) to ensure that customs duties, internal taxes and other fiscal levies which may be imposed in the Socialist Republic of Viet Nam with respect to the purchase of the products and services referred to in sub-paragraph (1) of paragraph 2 shall not be borne by the Grant and its accrued interest;

(c) to ensure that the Grant and its accrued interest be used properly and effectively for promotion of the economic and social development efforts;

(d) to present to the Government of Japan a report prepared in a written form acceptable to the Government of Japan on the transactions on the Account together with copies of contracts, vouchers and other documents concerning the relevant transactions without delay when the Grant and its accrued interest are completely drawn in accordance with the provisions of sub-paragraph (2) of paragraph 3, or when the period for the use of the Grant and its accrued interest expires in accordance with the provisions of (a) above, or upon request by the Government of Japan; and

(e) to give due environmental and social consideration in the uses of the Grant and its accrued interest.

(2) While ensuring fair treatment of sources of information, the Government of the Socialist Republic of Viet Nam shall provide the Government of Japan with necessary information, including information on corrupt practice, related to the Grant.

(3) The products purchased under the Grant and its accrued interest shall not be re-exported from the Socialist Republic of Viet Nam.

6. The Government of the Socialist Republic of Viet Nam shall, except as provided for in paragraph 7, take necessary measures:

(a) to ensure that the products referred to in sub-paragraph (1) of paragraph 2 be utilized, in principle, by itself or end-users, for non-commercial purposes; and

(b) to ensure that the products referred to in sub-paragraph (1) of paragraph 2 be maintained and used properly and effectively for promotion of the economic and social development efforts.

7. (1) Subject to the agreement between the authorities concerned of the two Governments, the Government of the Socialist Republic of Viet Nam may receive the proceeds from sales and lease of the products referred to in sub-paragraph (1) of Paragraph 2. In that case, the Government of the Socialist Republic of Viet Nam shall ensure that it will deposit in Vietnamese currency the proceeds from such sales and lease in an account to be opened in its name in a bank to be agreed upon between the authorities concerned of the two Governments. The amount of the proceeds to be deposited shall be agreed between the authorities concerned of the two Governments. The deposit shall be made within the period of three years from the date of entry into force of the present understanding, unless otherwise agreed between the authorities concerned of the two Governments.

(2) The fund thus deposited shall be utilized for economic and social development purposes in the Socialist Republic of Viet Nam.

(3) The authorities concerned of the two Governments shall consult with each other about the detail of the utilization of the fund deposited prior to the utilization.

(4) The Government of the Socialist Republic of Viet Nam shall present to the Government of Japan a report prepared in a written form acceptable to the Government of Japan on the utilization of the fund deposited without delay when the fund deposited is completely used in accordance with the provisions of sub-paragraphs (2) and (3) above.

8. Further procedural details for the implementation of the present understanding shall be agreed upon through consultation between the authorities concerned of the two Governments.

9. The two Governments shall consult with each other in respect of any matter that may arise from or in connection with the present understanding.

I have further the honour to propose that this Note and Your Excellency’s Note in reply confirming on behalf of the Government of the Socialist Republic of Viet Nam the foregoing understanding shall constitute an agreement between the two Governments, which shall enter into force on the date of Your Excellency’s Note in reply.

I avail myself of this opportunity to renew to Your Excellency the assurance of my highest consideration.

Agreed Minutes on Procedural Details

With reference to paragraphs 2 and 8 of the Exchange of Notes between the Government of the Socialist Republic of Viet Nam (hereinafter referred to as “the Recipient”) and the Government of Japan (hereinafter referred to as “the Donor”) dated August 1, 2014 (hereinafter referred to as “the Exchange of Notes”) concerning the Japanese economic cooperation to be extended for the purpose of contributing to promotion of the economic and social development efforts by the Recipient (hereinafter referred to as “the Grant”), the representatives of the Recipient and of the Donor wish to record the following procedural details, as agreed upon between the authorities concerned of the two Governments:

1. List of Eligible Products

The products referred to in sub-paragraph (1) of paragraph 2 of the Exchange of Notes shall be those enumerated in Appendix I.

2. Eligible Source Countries

The eligible source countries referred to in sub-paragraph (3) of paragraph 2 of the Exchange of Notes shall be as follows:

all countries and areas except the Socialist Republic of Viet Nam.

3. Procurement

(1) The Grant and its accrued interest shall be used for the purchase of the products and the services referred to in sub-paragraph (1) of paragraph 2 of the Exchange of Notes with due attention to economy, efficiency and non-discrimination among the eligible source countries, unless otherwise agreed between the authorities concerned of the two Governments.

(2) In order to ensure compliance with such requirements, it is required that the Recipient employ an independent and competent agent for procurement of the products and services referred to in sub-paragraph (1) of paragraph 2 of the Exchange of Notes.

The Recipient shall, therefore, conclude an employment contract, within one month after the date of entry into force of the Exchange of Notes, with Japan International Cooperation System (hereinafter referred to as “the Agent”) to act on behalf of the Recipient in accordance with the Scope of the Agent’s Services as set forth in Appendix II.

(3) The said employment contract shall become effective upon the approval of the Donor in a written form.

(4) The products referred to in sub-paragraph (1) of paragraph 2 of the Exchange of Notes shall be procured in accordance with the “Procurement Guidelines of Japan’s Non-Project Grant Aid”, which set forth, inter alia, the procedures of tendering to be followed except where such procedures are inapplicable or inappropriate.

(5) The Recipient shall take necessary measures to expedite utilization of the Grant and its accrued interest, including facilitation of the existing import procedures.

4. The Committee

(1) Within ten days after the date of entry into force of the Exchange of Notes, the Recipient and the Donor shall appoint their representatives who will be members of a consultative committee (hereinafter referred to as “the Committee”), the role of which shall be to discuss any matter that may arise from or in connection with the Exchange of Notes. Immediately after the conclusion of the employment contract referred to in sub-paragraph (2) of paragraph 3 above, the Agent shall appoint its representative who will participate in the Committee meetings as an adviser.

(2) The Committee shall be chaired by the representative of the Recipient Representatives of other organizations than the Agent may, when necessary, be invited to participate in the Committee meetings to provide advisory services.

(3) The terms of reference of the Committee shall be as set forth in Appendix V.

(4) The first meeting of the Committee shall be held immediately after the approval of the Donor of the employment contract referred to in sub-paragraph (2) of paragraph 3 above. Further meetings will be held upon request of either the Recipient or the Donor. The Agent may advise the Recipient and the Donor on the necessity to call a meeting of the Committee.

5. Disbursement Procedure

Disbursement procedure relating to the procurement of products and incidental services including the Agent’s fees under the Grant and its accrued interest shall be as follows:

(1) The Recipient (or its designated authority) and the bank in Japan referred to in sub-paragraph (1) of paragraph 3 of the Exchange of Notes (hereinafter referred to as “the Bank”) shall conclude an arrangement regarding transfer of funds in which the Recipient shall designate the Agent as the representative acting in the name of the Recipient concerning all transfers of funds to the Agent.

(2) The Agent shall make requests to the Bank for transferring of funds to cover expenses necessary for the procurement of eligible products and incidental services and the Agent’s related services set forth in Appendix II. Each of the requests shall be accompanied by a detailed estimate of the expenses which is to be covered by the funds transferred and a copy of the approval by the Donor of the contract referred to in sub-paragraph (3) of paragraph 3 above. A copy of the request and of the estimation shall be sent at the same time to the Recipient.

(3) Pursuant to the Agent’s request as per sub-paragraph (2) above, the Bank shall notify the Recipient of the request made by the Agent. The Bank shall pay the amount to the Agent from the account referred to in sub-paragraph (1) of paragraph 3 of the Exchange of Notes (hereinafter referred to as ‘‘the Account”) unless the Recipient makes opposition to such payment within ten working days after the notification by the Bank. The Agent shall make payments to suppliers from the funds received (hereinafter referred to as “the Advances”) in accordance with the terms of the contracts with them.

After such payments, the Agent may use the remaining amount of the Advances, if any, for the procurement of other eligible products and incidental services without transferring the said amount back to the Account.

(4) Reimbursement procedure

When the total of the remaining amount in the Account and the remaining amount of the Advances (hereinafter referred to collectively as “the Remaining Amount”) is less than 3% of the Grant and its accrued interest, the Recipient may request the Agent to reimburse the Remaining Amount to the Recipient for payments which have already been made by the Recipient for the procurement of the products listed in Appendix I, provided that such payments have been made on or after the date of entry into force of the Exchange of Notes.

When the Agent deems the request by the Recipient appropriate, the Agent shall make requests to the Bank for transferring to the Agent the remaining amount in the Account by issuing to the Bank a Certificate of Eligible Procurement for the Remaining Amount certified by both the Recipient and the Agent as per the form set forth in Appendix IV. After such transfer, the Agent shall reimburse the Remaining Amount to the Recipient.

(5) With respect to (a) of sub-paragraph (1) of paragraph 5 of the Exchange of Notes, disbursements from the Account shall be made within a twelve-month period after the date of the execution of the Grant, and no further disbursement shall be made thereafter, unless otherwise agreed between the authorities concerned of the two Governments.

6. Refund of the Remaining Amount

With respect to (a) of sub-paragraph (1) of paragraph 5 of the Exchange of Notes, when the Donor finds, upon the receipt of the termination report pursuant to (d) of sub-paragraph (1) of paragraph 5 of the Exchange of Notes, that the use of the Grant and its accrued interest is incomplete, it shall notify the Recipient of the procedures for refunding of the remaining amount of the Grant and its accrued interest. The Recipient shall refund the said remaining amount to the Donor without delay through such procedures as notified above.

7. Utilization of the Products

With respect to the utilization of the products referred to in paragraph 6 of the Exchange of Notes, the Recipient shall:

(a) give due environmental and social consideration in the said utilization; and

(b) inform the Donor through the Agent of the situation of the said utilization upon request by the Donor.

8. Vietnamese Currency Deposit

If the Recipient deposits an amount in Vietnamese currency in accordance with the provisions of sub-paragraph (1) of paragraph 7 of the Exchange of Notes:

(1) The Agent shall compute the amount required to be deposited by the Recipient.

(2) The Recipient shall ensure that the Agent will receive monthly statements of the account referred to in sub-paragraph (1) of paragraph 7 of the Exchange of Notes.

(3) Unless otherwise agreed upon between the two Governments, the Agent shall, for a period of five years from the date of entry into force of the Exchange of Notes, make monthly reports for the Committee members concerning the amount required to be deposited and the amount actually deposited in Vietnamese currency.

(4) The Recipient shall directly inform the Donor of the situation of the Vietnamese currency deposit upon request by the Donor.

(5) The Recipient shall ensure that an external audit will be conducted in order to ensure proper management and use of the Vietnamese currency deposit, and shall submit the result of the audit to the Donor upon request by the Donor.

(6) With respect to sub-paragraph (3) of paragraph 7 of the Exchange of Notes, the Recipient shall make “the Utilization Programme” of the deposited fund which shall include the names of specific projects, their details and the amount of money to be allocated. “The Utilization Programme” shall be presented to the Donor for consultation.

Hanoi, August 1, 2014

Appendix I

LIST OF ELIGIBLE PRODUCTS

UNSITC CODE

Appendix II

Scope of the Agent’s Services

1. Provision of information and advice to the Committee meetings

2. Ensuring that the Recipient and the end-users fully understand the procedures to be employed, where necessary

3. (1) Preparation of specifications of products for the Recipient, including, where necessary, detailed discussions with the end-users

(2) Preparation of bid documents appropriate to the type and value of products to be procured

(3) Advertisement of bids, where the international competitive bidding is to be held, the wording of which is to be agreed upon between the Recipient and the Donor

(4) Evaluation of bids, including both technical and financial considerations

(5) Submission of recommendations to the Recipient for approval to place order with suppliers

4. Receipt and utilization of the Advances in accordance with the employment contract with the Recipient referred to in sub-paragraph (2) of paragraph 3 of the Agreed Minutes on Procedural Details

5. Negotiation and conclusion of contracts with suppliers, including satisfactory payment, shipment and inspection arrangements

6. Checking the progress of supplies to ensure that delivery dates are met

7. Providing the Recipient and end-users with documents containing detailed information of progress of orders, notification of orders placed, amendments to contracts, delivery information, shipping documents, etc.

8. Payment to suppliers from the Advances

9. Providing the following documents to the Recipient and the Donor:

(1) Certificate of Eligible Procurement as per Appendix III

(2) Pro forma invoice

10. Preparation of quarterly status reports for the Recipient and the Donor, covering enquiries, orders, order status, values and delivery information

11. Submission of quarterly statements to the Recipient and the Donor detailing balance against the Grant and its accrued interest and all disbursements for the quarter

12. Transferring of the balance of the Advances to the Account after the period referred to in sub-paragraph (5) of paragraph 5 of the Agreed Minutes on Procedural Details

13. Submission to the Committee members of monthly reports concerning the Vietnamese currency deposit referred to in sub-paragraph (3) of paragraph 8 of the Agreed Minutes on Procedural Details, detailing the total amount required to be deposited, the amount actually deposited and its ratio

14. Submission to the Donor of an overall evaluation report including details of all products shipped, source country, delivery date, value of products (including relevant charges) and total amounts disbursed and remaining

Appendix III

Certificate of Eligible Procurement

To whom it may concern:

With reference to the pro forma invoice attached hereto, we hereby certify that the procurement complies with all the relevant terms and conditions of the Exchange of Notes between the Government of Japan and the Government of the Socialist Republic of Viet Nam date August 1, 2014 and the Agreed Minutes on Procedural Details between the authorities concerned of the two Governments dated August 1, 2014.

The following are the principal relevant facts concerning the procurement.

1. Method of Procurement

(Insert X in appropriate place)

a. ________: International Competitive Bidding

b. ________: Limited International Bidding

c. ________: International Shopping

d. ________: Direct Contracting

2. Products

a. Name of Products:

b. SITC Code (2nd Revision) Number:

c. Origin:

3. Cost of Products and Incidental Services

a. Products:

b. Freight:

c. Marine Insurance:

d. Agent’s Fees:

e. Total (a+b+c+d):

4. Supplier

Name:

Address:

Nationality:

(Country where the Supplier is incorporated and registered)

5. Consignee

Name:

Address:

Appendix IV

Certificate of Eligible Procurement

for the Remaining Amount
(Reimbursement Procedure)

With reference to the payment order, the undersigned hereby certify that the procurement related to the said payment order as listed below complies with all the relevant terms and conditions of the Exchange of Notes between the Government of Japan and the Government of the Socialist Republic of Viet Nam dated August 1, 2014 and the Agreed Minutes on Procedural Details between the authorities concerned of the two Governments dated August 1, 2014.

The undersigned recipient representative further certifies that the Recipient has neither heretofore applied for reimbursement under the Exchange of Notes nor for any other financing arrangements with other sources of official assistance in respect of any of the amount requested for reimbursement as covered by the payment order.

The following are the principal relevant facts concerning the procurement.

The following documents (in one copy) are enclosed herewith for each of the above transactions.

a. Covering letter made by a negotiating/paying bank

b. Bill of lading, post parcel receipt or air consignment note

c. Invoice

Appendix V

Terms of Reference of the Committee

1. To formulate a time scale plan for the speedy and effective utilization of the Grant and its accrued interest

2. To exchange views on allocations of the Grant and its accrued interest as well as on potential end-users

3. To identify problems which may delay the utilization of the Grant and its accrued interest, and to explore solutions to such problems

4. To assist in formulating a plan on the deposit in Vietnamese currency

5. To exchange views on the effective use of the fund deposited in Vietnamese currency and on publicity related to its utilization if the fund is deposited

6. To exchange views on publicity related to the utilization of the Grant and its accrued interest

7. To discuss any other matter that may arise from or in connection with the Exchange of Notes

Agreed Minutes on Procedural Details

With reference to paragraphs 2 and 8 of the Exchange of Notes between the Government of Japan (hereinafter referred to as “the Donor”) and the Government of the Socialist Republic of Viet Nam (hereinafter referred to as “the Recipient”) dated August 1, 2014 (hereinafter referred to as “the Exchange of Notes”) concerning the Japanese economic cooperation to be extended for the purpose of contributing to promotion of the economic and social development efforts by the Recipient (hereinafter referred to as “the Grant”), the representatives of the Donor and of the Recipient wish to record the following procedural details, as agreed upon between the authorities concerned of the two Governments:

1. List of Eligible Products

The products referred to in sub-paragraph (1) of paragraph 2 of the Exchange of Notes shall be those enumerated in Appendix I.

2. Eligible Source Countries

The eligible source countries referred to in sub-paragraph (3) of paragraph 2 of the Exchange of Notes shall be as follows:

all countries and areas except the Socialist Republic of Viet Nam.

3. Procurement

(1) The Grant and its accrued interest shall be used for the purchase of the products and the services referred to in sub-paragraph (1) of paragraph 2 of the Exchange of Notes with due attention to economy, efficiency and non-discrimination among the eligible source countries, unless otherwise agreed between the authorities concerned of the two Governments.

(2) In order to ensure compliance with such requirements, it is required that the Recipient employ an independent and competent agent for procurement of the products and services referred to in sub-paragraph (1) of paragraph 2 of the Exchange of Notes.

The Recipient shall, therefore, conclude an employment contract, within one month after the date of entry into force of the Exchange of Notes, with Japan International Cooperation System (hereinafter referred to as “the Agent”) to act on behalf of the Recipient in accordance with the Scope of the Agent’s Services as set forth in Appendix II.

(3) The said employment contract shall become effective upon the approval of the Donor in a written form.

(4) The products referred to in sub-paragraph (1) of paragraph 2 of the Exchange of Notes shall be procured in accordance with the “Procurement Guidelines of Japan’s Non-Project Grant Aid”, which set forth, inter alia, the procedures of tendering to be followed except where such procedures are inapplicable or inappropriate.

(5) The Recipient shall take necessary measures to expedite utilization of the Grant and its accrued interest, including facilitation of the existing import procedures.

4. The Committee

(1) Within ten days after the date of entry into force of the Exchange of Notes, the Donor and the Recipient shall appoint their representatives who will be members of a consultative committee (hereinafter referred to as “the Committee”), the role of which shall be to discuss any matter that may arise from or in connection with the Exchange of Notes. Immediately after the conclusion of the employment contract referred to in sub-paragraph (2) of paragraph 3 above, the Agent shall appoint its representative who will participate in the Committee meetings as an adviser.

(2) The Committee shall be chaired by the representative of the Recipient. Representatives of other organizations than the Agent may, when necessary, be invited to participate in the Committee meetings to provide advisory services.

(3) The terms of reference of the Committee shall be as set forth in Appendix V.

(4) The first meeting of the Committee shall be held immediately after the approval of the Donor of the employment contract referred to in sub-paragraph (2) of paragraph 3 above. Further meetings will be held upon request of either the Donor or the Recipient. The Agent may advise the Donor and the Recipient on the necessity to call a meeting of the Committee.

5. Disbursement Procedure

Disbursement procedure relating to the procurement of products and incidental services including the Agent’s fees under the Grant and its accrued interest shall be as follows:

(1) The Recipient (or its designated authority) and the bank in Japan referred to in sub-paragraph (1) of paragraph 3 of the Exchange of Notes (hereinafter referred to as “the Bank”) shall conclude an arrangement regarding transfer of funds in which the Recipient shall designate the Agent as the representative acting in the name of the Recipient concerning all transfers of funds to the Agent.

(2) The Agent shall make requests to the Bank for transferring of funds to cover expenses necessary for the procurement of eligible products and incidental services and the Agent’s related services set forth in Appendix II. Each of the requests shall be accompanied by a detailed estimate of the expenses which is to be covered by the funds transferred and a copy of the approval by the Donor of the contract referred to in sub-paragraph (3) of paragraph 3 above. A copy of the request and of the estimation shall be sent at the same time to the Recipient.

(3) Pursuant to the Agent’s request as per sub-paragraph (2) above, the Bank shall notify the Recipient of the request made by the Agent. The Bank shall pay the amount to the Agent from the account referred to in sub-paragraph (1) of paragraph 3 of the Exchange of Notes (hereinafter referred to as “the Account”) unless the Recipient makes opposition to such payment within ten working days after the notification by the Bank. The Agent shall make payments to suppliers from the funds received (hereinafter referred to as “the Advances”) in accordance with the terms of the contracts with them.

After such payments, the Agent may use the remaining amount of the Advances, if any, for the procurement of other eligible products and incidental services without transferring the said amount back to the Account.

(4) Reimbursement procedure

When the total of the remaining amount in the Account and the remaining amount of the Advances (hereinafter referred to collectively as “the Remaining Amount”) is less than 3% of the Grant and its accrued interest, the Recipient may request the Agent to reimburse the Remaining Amount to the Recipient for payments which have already been made by the Recipient for the procurement of the products listed in Appendix I, provided that such payments have been made on or after the date of entry into force of the Exchange of Notes.

When the Agent deems the request by the Recipient appropriate, the Agent shall make requests to the Bank for transferring to the Agent the remaining amount in the Account by issuing to the Bank a Certificate of Eligible Procurement for the Remaining Amount certified by both the Recipient and the Agent as per the form set forth in Appendix IV. After such transfer, the Agent shall reimburse the Remaining Amount to the Recipient.

(5) With respect to (a) of sub-paragraph (1) of paragraph 5 of the Exchange of Notes, disbursements from the Account shall be made within a twelve-month period after the date of the execution of the Grant, and no further disbursement shall be made thereafter, unless otherwise agreed between the authorities concerned of the two Governments.

6. Refund of the Remaining Amount

With respect to (a) of sub-paragraph (1) of paragraph 5 of the Exchange of Notes, when the Donor finds, upon the receipt of the termination report pursuant to (d) of sub-paragraph (1) of paragraph 5 of the Exchange of Notes, that the use of the Grant and its accrued interest is incomplete, it shall notify the Recipient of the procedures for refunding of the remaining amount of the Grant and its accrued interest. The Recipient shall refund the said remaining amount to the Donor without delay through such procedures as notified above.

7. Utilization of the Products

With respect to the utilization of the products referred to in paragraph 6 of the Exchange of Notes, the Recipient shall:

(a) give due environmental and social consideration in the said utilization; and

(b) inform the Donor through the Agent of the situation of the said utilization upon request by the Donor.

8. Vietnamese Currency Deposit

If the Recipient deposits an amount in Vietnamese currency in accordance with the provisions of sub-paragraph (1) of paragraph 7 of the Exchange of Notes:

(1) The Agent shall compute the amount required to be deposited by the Recipient.

(2) The Recipient shall ensure that the Agent will receive monthly statements of the account referred to in sub-paragraph (1) of paragraph 7 of the Exchange of Notes.

(3) Unless otherwise agreed upon between the two Governments, the Agent shall, for a period of five years from the date of entry into force of the Exchange of Notes, make monthly reports for the Committee members concerning the amount required to be deposited and the amount actually deposited in Vietnamese currency.

(4) The Recipient shall directly inform the Donor of the situation of the Vietnamese currency deposit upon request by the Donor.

(5) The Recipient shall ensure that an external audit will be conducted in order to ensure proper management and use of the Vietnamese currency deposit, and shall submit the result of the audit to the Donor upon request by the Donor.

(6) With respect to sub-paragraph (3) of paragraph 7 of the Exchange of Notes, the Recipient shall make “the Utilization Programme” of the deposited fund which shall include the names of specific projects, their details and the amount of money to be allocated. “The Utilization Programme” shall be presented to the Donor for consultation.

Hanoi, August 1, 2014

Appendix I

LIST OF ELIGIBLE PRODUCTS

Appendix II

Scope of the Agent’s Services

1. Provision of information and advice to the Committee meetings

2. Ensuring that the Recipient and the end-users fully understand the procedures to be employed, where necessary

3. (1) Preparation of specifications of products for the Recipient, including, where necessary, detailed discussions with the end-users

(2) Preparation of bid documents appropriate to the type and value of products to be procured

(3) Advertisement of bids, where the international competitive bidding is to be held, the wording of which is to be agreed upon between the Donor and the Recipient

(4) Evaluation of bids, including both technical and financial considerations

(5) Submission of recommendations to the Recipient for approval to place order with suppliers

4. Receipt and utilization of the Advances in accordance with the employment contract with the Recipient referred to in sub-paragraph (2) of paragraph 3 of the Agreed Minutes on Procedural Details

5. Negotiation and conclusion of contracts with suppliers, including satisfactory payment, shipment and inspection arrangements

6. Checking the progress of supplies to ensure that delivery dates are met

7. Providing the Recipient and end-users with documents containing detailed information of progress of orders, notification of orders placed, amendments to contracts, delivery information, shipping documents, etc.

8. Payment to suppliers from the Advances

9. Providing the following documents to the Donor and the Recipient:

(1) Certificate of Eligible Procurement as per Appendix III

(2) Pro forma invoice

10. Preparation of quarterly status reports for the Donor and the Recipient, covering enquiries, orders, order status, values and delivery information

11. Submission of quarterly statements to the Donor and the Recipient detailing balance against the Grant and its accrued interest and all disbursements for the quarter

12. Transferring of the balance of the Advances to the Account after the period referred to in sub-paragraph (5) of paragraph 5 of the Agreed Minutes on Procedural Details

13. Submission to the Committee members of monthly reports concerning the Vietnamese currency deposit referred to in sub-paragraph (3) of paragraph 8 of the Agreed Minutes on Procedural Details, detailing the total amount required to be deposited, the amount actually deposited and its ratio

14. Submission to the Donor of an overall evaluation report including details of all products shipped, source country, delivery date, value of products (including relevant charges) and total amounts disbursed and remaining

Appendix III

Certificate of Eligible Procurement

To whom it may concern:

With reference to the pro forma invoice attached hereto, we hereby certify that the procurement complies with all the relevant terms and conditions of the Exchange of Notes between the Government of Japan and the Government of the Socialist Republic of Viet Nam dated August 1, 2014 and the Agreed Minutes on Procedural Details between the authorities concerned of the two Governments dated August 1, 2014.

The following are the principal relevant facts concerning the procurement

1. Method of Procurement

(Insert X in appropriate place)

a. ________: International Competitive Bidding

b. ________: Limited International Bidding

c. ________: International Shopping

d. ________: Direct Contracting

2. Products

a. Name of Products:

b. SITC Code (2nd Revision) Number:

c. Origin:

3. Cost of Products and Incidental Services

a. Products:

b. Freight:

c. Marine Insurance:

d. Agent’s Fees:

e. Total (a+b+c+d):

4. Supplier

Name:

Address:

Nationality:

(Country where the Supplier is incorporated and registered)

5. Consignee

Name:

Address:

Appendix IV

Certificate of Eligible Procurement

for the Remaining Amount
(Reimbursement Procedure)

With reference to the payment order, the undersigned hereby certify that the procurement related to the said payment order as listed below complies with all the relevant terms and conditions of the Exchange of Notes between the Government of Japan and the Government of the Socialist Republic of Viet Nam dated August 1, 2014 and the Agreed Minutes on Procedural Details between the authorities concerned of the two Governments dated August 1, 2014.

The undersigned recipient representative further certifies that the Recipient has neither heretofore applied for reimbursement under the Exchange of Notes nor for any other financing arrangements with other sources of official assistance in respect of any of the amount requested for reimbursement as covered by the payment order.

The following are the principal relevant facts concerning the procurement.

The following documents (in one copy) are enclosed herewith for each of the above transactions.

a. Covering letter made by a negotiating/paying bank

b. Bill of lading, post parcel receipt or air consignment note

c. Invoice

Appendix V

Terms of Reference of the Committee

1. To formulate a time scale plan for the speedy and effective utilization of the Grant and its accrued interest

2. To exchange views on allocations of the Grant and its accrued interest as well as on potential end-users

3. To identify problems which may delay the utilization of the Grant and its accrued interest, and to explore solutions to such problems

4. To assist in formulating a plan on the deposit in Vietnamese currency

5. To exchange views on the effective use of the fund deposited in Vietnamese currency and on publicity related to its utilization if the fund is deposited

6. To exchange views on publicity related to the utilization of the Grant and its accrued interest

7. To discuss any other matter that may arise from or in connection with the Exchange of Notes

Record of Discussions

In connection with the Exchange of Notes dated August 1, 2014 concerning Japanese economic cooperation to be extended with a view to strengthening friendly and cooperative relations between the Socialist Republic of Viet Nam and Japan (hereinafter referred to as "the Exchange of Notes"), the representatives of the Vietnamese Delegation and of the Japanese Delegation wish to record the following:

1. With regard to paragraph 2 of the Exchange of Notes, the representative of the Japanese Delegation stated as follows:

The Government of Japan understands that the Government of the Socialist Republic of Viet Nam will take necessary measures to prevent any offer, gift or payment, consideration or benefit which would be construed as a corrupt practice in the Socialist Republic of Viet Nam from being made as an inducement or reward related to the award of the contracts that the agent referred to in sub-paragraph (2) of paragraph 3 of the Agreed Minutes on Procedural Details of the Exchange of Notes will enter into with a view to purchasing the products and services referred to in paragraph 2 of the Exchange of Notes.

2. The representative of the Vietnamese Delegation stated that the Vietnamese Delegation has no objection to the statement by the representative of the Japanese Delegation referred to above.

Hanoi, August 1, 2014

Record of Discussions

In connection with the Exchange of Notes dated August 1, 2014 concerning Japanese economic cooperation to be extended with a view to strengthening friendly and cooperative relations between Japan and the Socialist Republic of Viet Nam (hereinafter referred to as "the Exchange of Notes"), the representatives of the Japanese Delegation and of the Vietnamese Delegation wish to record the following:

1. With regard to paragraph 2 of the Exchange of Notes, the representative of the Japanese Delegation stated as follows:

The Government of Japan understands that the Government of the Socialist Republic of Viet Nam will take necessary measures to prevent any offer, gift or payment, consideration or benefit which would be construed as a corrupt practice in the Socialist Republic of Viet Nam from being made as an inducement or reward related to the award of the contracts that the agent referred to in sub-paragraph (2) of paragraph 3 of the Agreed Minutes on Procedural Details of the Exchange of Notes will enter into with a view to purchasing the products and services referred to in paragraph 2 of the Exchange of Notes.

2. The representative of the Vietnamese Delegation stated that the Vietnamese Delegation has no objection to the statement by the representative of the Japanese Delegation referred to above.

Hanoi, August 1, 2014