Luật 44/2013/QH13

LAW

ON THRIFT PRACTICE AND WASTE COMBAT

Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates Law on Thrift Practice and Waste Combat.

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of regulation

This Law provides the thrift practice and waste combat in:

1. The management and use of state budget, state capital and assets, labor and working time in the state sector;

2. The management, exploitation and use of resources;

3. Production, business and consumption activities of organizations, households and individuals.

Article 2. Subjects of application

1. Agencies, organizations and individuals managing or using state budget, state capital and assets, labor and working time in the state sector.

2. Agencies, organizations, households and individuals managing, exploiting and using resources.

3. Other organizations, households and individuals.

Article 3. Interpretation of terms

In this Law, the terms below are construed as follows:

1. Thrift is the reduction of waste during use of capital, property, labor, working time and resources while the set targets are still achieved. For the management and use of state budget, state capital and assets, labor and working time in the state sector and resources in the fields which competent state agencies have issued norms, criteria and entitlements, thrift is use thereof at levels lower than such norms, criteria and entitlements while the set targets are still achieved or use thereof in conformity with such norms, criteria and entitlements but the achievements are higher than the set targets.

2. Waste is the inefficient management and use of capital, property, labor, working time and resources. For fields which competent state agencies have issued norms, criteria and entitlements, waste is the management and use of state budget, state capital and assets, labor and working time in the state sector and resources in excess of the norms, criteria and entitlements or failure of achieving the set targets.

3. State capital includes state budget capital, credit capital guaranteed by Government, development investment credit capital of the State, development investment capital of state-owned enterprises and other capitals managed by the State.

4. The state sector includes agencies and organizations set up, invested with physical foundations, partially or fully allocated with operational funds, by the State, which State directly manages or participates in management with the aim to serve the common and essential development demands of the State and society.

5. State assets are assets created from the state budget or owned or managed by the State as prescribed by law, including offices, land use rights and land-attached assets; machinery, means of transport, working equipment; assets originated from aid, donation and contributions of domestic and foreign organizations and individuals to the State, and other assets as prescribed by law.

6. Resources include land, water resources, mineral resources, and resources in sea areas, continental shelf, airspace, and other natural resources.

Resources and assets which are invested in and managed by State are public property belonging to the entire people’s ownership and being uniformly managed by the State as the owner’s representative.

7. Heads of agencies or organizations are those elected, appointed or approved to keep leading or managerial positions, and take the highest responsibility in such agencies or organizations.

Article 4. Principles in thrift practice and waste combat

1. Thrift practice and waste combat shall be a regular task, from guidelines, mechanisms and policies to organization of implementation in association with inspection and supervision.

2. Thrift practice and waste combat must be based on norms, criteria, regimes and other provisions of law.

3. Thrift practice and waste combat must be associated with administrative reform and the fulfillment of assigned tasks, not affecting the normal operation of agencies and organizations.

4. Management decentralization and close coordination among levels, sectors, agencies and organizations in the performance of assigned tasks, and in association with the responsibilities of cadres, civil servants and public employees in agencies and organizations must be conducted for thrift practice and waste combat.

5. Democracy, publicity and transparency must be guaranteed; the supervision role of the National Assembly, People’s Councils at all levels, Vietnam Fatherland Front and its member organizations and the people must be protected in thrift practice and waste combat.

Article 5. Publicity of thrift practice and waste combat

1. Publicity of activities related to management and use of state budget, state capital and assets, labor, working time and resources is a measure to guarantee thrift practice and to stop and prevent waste.

2. Except for the fields and activities related to state secrets, the following fields and activities must be publicized:

a) Estimation, allocation, adjustment of estimate and final settlement of state budget of agencies and organizations using state budget; funds originating from the state budget;

b) Capital construction investment, procurement, management and use of assets in agencies and organizations using state budget;

c) Amounts collected into the state budget, capital raised for the state budget and state credit; funds originating from domestic and foreign mobilized contributions; public debts as prescribed by the Law on Management of Public Debts;

d) Master plans and plans on socio-economic development; master plans and plans on sector or regional development; master plans and plans on land use; urban master plans, investment master plans, plans and lists of investment projects and investment capital sources; construction master plans; resource exploitation master plans, plans and activities;

e) Norms, criteria and entitlements prescribed or applied by agencies or organizations; regulations on financial management and internal expenditures of agencies and organizations; sectoral standards and norms;

f) Distribution and use of labor resources;

g) Programs and plans on thrift practice and waste combat; results of thrift practice; wasteful acts and results of handling of wasteful acts;

h) Process and procedures for settlement of affairs between state agencies with organizations or individuals;

i) Other fields as prescribed by law.

3. Forms of publicity include:

a) Issuance of publications;

b) Announcement in the mass media;

c) Written notification to related agencies, organizations and individuals;

d) Posting on websites;

e) Announcement at meetings; posting up at working offices of agencies and organizations;

f) Supply of information at the request of relevant agencies, organizations and individuals.

4. In addition to compulsory forms of publicity as prescribed by law, heads of agencies or organizations shall select and apply one or a number of publicity forms for each field of activities in accordance with Clause 3 of this Article.

5. The Government shall detail the forms, contents and time of publicity.

Article 6. Supervision of thrift practice and waste combat

1. Citizens have the right to supervise the thrift practice and waste combat through reports, complaints and denunciations or through the Vietnam Fatherland Front and its member organizations; detect and report promptly wasteful acts to competent organizations or persons.

2. The National Assembly, the National Assembly Standing Committee, National Assembly’s agencies, National Assembly deputy delegations and National Assembly deputies shall supervise the thrift practice and waste combat in accordance with the Law on supervision Activities of the National Assembly.

3. The People’s Councils at all levels and People’s Council deputies shall supervise the thrift practice and waste combat in their localities as prescribed by law.

4. The Vietnam Fatherland Front and its member organizations, people’s inspectorates, and investment supervision boards of communities shall supervise the thrift practice and waste combat as prescribed by law.

Article 7. Responsibilities of heads of agencies and organizations

1. To formulate, and direct the implementation of, programs and plans for thrift practice and waste combat associated with the administrative reform tasks, clearly identify the objectives and targets of thrifty and waste combat requirements in the fields, agencies or organizations under their management scope; to draw up implementation solutions aiming to achieving the targets of thrift practice and waste combat.

2. Within the scope of their functions, tasks and powers, to take responsibility for the issuance of impractical or illegal documents of internal validity which cause waste.

3. To take personal responsibility for organizing thrift practice and waste combat; to periodically assess and draw experiences from implementation of programs and plans and make explanations on occurrence of waste in their agencies or organizations.

4. To sum up and report on the situation and results of thrift practice and waste combat in their agencies or organizations.

5. To guarantee the exercise of the rights of citizens, agencies and organizations to supervise the thrift practice and waste combat, as prescribed in Article 6 of this Law. Upon receiving reports on wasteful acts, heads of agencies or organizations must direct the inspection and consideration of such acts in order to work out measures to stop and handle them promptly and reply in writing to the agencies, organizations or individuals that have detected such acts.

6. To create necessary conditions for people’s inspection activities; to organize internal audit, examination and inspection activities under their competence; to handle or coordinate with competent state agencies in handling promptly, strictly and lawfully persons in their agencies or organizations who commit wasteful acts; to publicize the handling of wasteful acts in their agencies or organizations.

Article 8. Responsibilities of cadres, civil servants, public employees

1. To realize thrift programs, plans, targets and norms and waste combat requirements as assigned.

2. To manage and use the allocated state capital and assets for proper purposes and according to quotas, criteria and entitlements; to make explanations on, and take personal responsibility for, the occurrence of waste within the scope of their management and use.

3. To participate in people’s inspection activities, participate in supervision and propose measures and solutions for thrift practice and waste combat in their agencies or organizations and in their assigned work fields; to detect, stop and handle in time wasteful acts under their competence.

Article 9. Detection of waste and responsibility to process waste detection information

1. Waste detection information includes:

a) News and articles in the mass media;

b) Reports in other forms from agencies, organizations and individuals.

2. Persons who detect waste have the right to provide information to heads of agencies or organizations where waste occurs, heads of agencies of immediate higher level, inspection and examination agencies or State Audit Agencies for consideration and settlement, or to the mass media for reporting according to regulations, and shall take responsibility for the truthfulness and accuracy of the detected information. Those who deliberately provide untruthful information, abuse information to affect activities of agencies or organizations or the prestige of other persons shall be handled as prescribed by law.

3. Heads of agencies or organizations where occurrence of waste is detected shall examine and clarify the information on waste detection as receiving information; and they must stop and remedy in time any waste that occurs; handle under their competence or propose competent authorities to handle wrongdoings and violations and publicize the results thereof; and make explanations on occurrence of waste to functional agencies.

4. Inspection and examination agencies, State Audit Agencies, heads of agencies of immediate higher level shall, upon receiving information on waste, direct and organize the clarification thereof under their functions and tasks, stop and handle promptly under their competence or propose competent authorities to handle such cases as prescribed by law.

5. News and press agencies shall perform their responsibility in detecting and reporting on wasteful acts.

6. All acts of obstructing the exercise of the right to provide information on waste detection; intimidating, retaliating against, taking revenge on or hurting persons who provide information on waste detection are prohibited.

7. The Government shall detail the processing of information and measures to protect persons who provide waste detection information.

Article 10. Examination, inspection, expenditure control and state audit

1. Examination of thrift practice and waste combat is a regular task, including self- examination by agencies and organizations; examination over subordinate agencies or organizations and related persons by superior agencies or organizations.

2. The inspection of thrift practice and waste combat shall be implemented through administrative inspections, specialized inspections or through the settlement of complaints and denunciations by competent state agencies against agencies, organizations or individuals.

3. The State Treasury shall examine and control state budget expenditures according to policies, norms, criteria and entitlements prescribed by the State to ensure thrifty and efficient use and combat waste.

4. Audit of thrift practice and waste combat includes audit of financial statements, observance audit and operation audit of the management and use of state budget, state capital and assets and resources by agencies and organizations.

5. Competent state agencies, when conducting examinations, inspections, expenditure control and audits, have the responsibility to detect, stop and handle promptly under their competence or propose competent authorities to handle violations related to thrift practice and waste combat; and clearly identify the causes thereof and propose remedies.

Chapter 2.

PROVISIONS ON THRIFT PRACTICE AND WASTE COMBAT IN A NUMBER OF FIELDS

Section 1. THRIFT PRACTICE AND WASTE COMBAT IN THE ISSUANCE AND EXERCISE OF NORMS, CRITERIA AND ENTITLEMENTS

Article 11. Systems of norms, criteria and entitlements

Norms, criteria and entitlements serving as the basis for thrift practice and waste combat include:

1. Norms, criteria and entitlements which are issued by competent state agencies as prescribed by law and applicable nationwide or within a certain sector, field or locality;

2. Norms, criteria and entitlements which are issued by agencies or organizations under their competence, which are assigned to manage and use the state budget, state capital and assets, labor and working time in the state sector and resources.

3. Norms, criteria and entitlements stated in internal expenditure regulations of agencies or organizations, which are formulated and issued in accordance with law.

Article 12. Principles in issuance of norms, criteria and entitlements

1. Norms, criteria and regulations issued by competent state agencies for general application nationwide or application within a certain sector, field or locality must abide by the following principles:

a) Having scientific and practical grounds;

b) Being suitable to the state budget capacity and the assigned functions and tasks;

c) Their issuance and revision are based on the socio-economic development requirements;

d) Norms, criteria and entitlements applicable in a certain sector, field or locality must conform to those applicable nationwide under regulations, unless otherwise provided by law;

e) Complying with the process of promulgation of legal normative documents and other relevant laws.

2. Norms, criteria and entitlements stated in internal expenditure regulations promulgated by heads of agencies or organizations must abide by the following principles:

a) Being conformable to the norms, criteria and entitlements which are applicable nationwide and applicable with in the sector, field or locality;

b) Being suitable to the financial capability of the agency or organization and the assigned work and tasks;

c) The internal expenditure regulations must be publicized and discussed widely in agencies or organizations with the participation of the grassroots trade union.

Article 13. Responsibility to issue norms, criteria and entitlements

1. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and heads of other central agencies have the responsibility:

a) To organize the elaboration, review, revision, supplementation of norms, criteria and entitlements to be submitted to competent authorities for issuance, or issue them under competence;

b) To publicize the norms, criteria and entitlements which are applicable nationwide or within the sectors or fields under their management;

c) To examine the elaboration of norms, criteria and entitlements in the internal expenditure regulations promulgated by management agencies or organizations,

2. Chairpersons of provincial People’s Committees have the responsibility:

a) To organize the elaboration, review, revision and supplementation of norms, criteria and entitlements to be submitted to competent authorities for issuance, or issue them under competence;

b) To publicize norms, criteria and entitlements which are applicable in their localities;

c) To examine the elaboration of norms, criteria and entitlements in the internal expenditure regulations which are promulgated by the management agencies or organizations.

2. Heads of agencies or organizations using the state budget, state capital and assets, laborers and working time in the state sector; and heads of agencies or organizations managing, exploiting and using resources shall formulate and publicize norms, criteria, regimes and internal expenditure regulations applicable to their agencies or organizations.

Article 14. Responsibility to exercise the norms, criteria and entitlements

1. Agencies, organizations, households or individuals that are assigned to manage and use state budget, state capital and assets, laborers and working time in the state sector, or to manage, exploit and use resources shall comply with the norms, criteria and regulations issued by competent state agencies and the internal expenditure regulations of agencies or organizations.

Other organizations, households and individuals are encouraged to apply norms, criteria and regulations issued by competent state agencies, and to take the initiative in elaborating the internal expenditure regulations for practice thrift and combat waste in the management, use of capital, assets, supplies, raw materials, fuels, materials and laborers, and working time in their production, business and consumption.

2. In the course of implementation, in case of finding it is necessary to revise or supplement norms, criteria and entitlements, agencies or organizations realizing norms, criteria and entitlements shall promptly revise or supplement them under their competence or report such revision and supplementation to competent agencies for study and consideration to have appropriate revision or supplementation.

Article 15. Responsibility to examine implementation of norms, criteria and entitlements

1. Agencies and organizations competent to formulate and issue norms, criteria and entitlements shall be responsible for organizing examination of the implementation of norms, criteria and entitlements at agencies and organizations liable to apply such norms, criteria and entitlements.

2. Agencies and organizations implementing norms, criteria and entitlements shall be responsible for examining the implementation of norms, criteria and regulations issued by competent state agencies and the internal expenditure regulations at agencies and organizations.

3. In the course of examination, upon detecting acts that violate the regulations on implementation of norms, criteria and entitlements or internal expenditure regulations, cause waste, agencies or organizations shall promptly handle such violations under their competence or propose competent authorities to handle them as prescribed by law.

Article 16. Violations involving the issuance, implementation and examination of norms, criteria and entitlements

1. Violations involving the issuance, implementation and examination of norms, criteria and entitlements include:

a) Issuing norms, criteria and entitlements in contravention of the principles prescribed in Article 12 of this Law;

b) Exceeding the norms, criteria and regulations issued by competent agencies as prescribed by law or failing to achieve the set targets;

c) Failing to organize the examination of implementation of norms, criteria and entitlements; failing to handle or to propose competent state agencies to handle promptly cases of implementation in contravention of norms, criteria and entitlements.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, heads of other central agencies, chairpersons of provincial People’s Committees, and heads of other agencies or organizations, according to their functions and tasks, failing to comply or improperly complying with Articles 12, 13, 14 and 15 of this Law, or violating the provisions at Clause 1 of this Article, shall be disciplined as prescribed by law.

Section 2. THRIFT PRACTICE AND WASTE COMBAT IN THE ELABORATION, APPRAISAL AND APPROVAL OF ESTIMATES OF, AND FINAL SETTLEMENT, MANAGEMENT AND USE OF, STATE BUDGET FUNDS

Article 17. Elaboration, appraisal, approval and allocation of estimates and final settlement of state budget

1. The elaboration, appraisal, approval and allocation of state budget estimates must comply with the competence, order, content, subjects and time as prescribed by law; and comply with norms, criteria and regulations issued by competent state agencies.

2. The elaboration, appraisal and approval of final settlement of the state budget must ensure accuracy and truthfulness; be based on the norms, criteria and regulations issued by competent state agencies and comply with the law on the state budget.

Article 18. Management of state budget funds

1. The management of state budget funds must be based on the estimates approved by competent authorities, in association with results and schedule of task performance and appropriate with administrative reform requirements.

2. Agencies and organizations managing state budget fund have responsibility:

a) To elaborate programs on thrift practice and waste combat, specify the thrift targets and norms and waste combat requirements to assign to state budget-funded agencies and organizations for implementation, ensuring thrift and efficiency;

b) To stipulate within the scope of their jurisdiction synchronous regimes and policies to ensure thrift practice and waste combat;

c) To examine, inspect and audit the use of state budget funds in accordance with law.

3. Heads of agencies or organizations shall organize the implementation of Clauses 1 and 2 of this Article; regularly assess the results of implementation of the assigned thrift targets and norms and waste combat requirements; handle wrongdoings and violations and waste detected through results of internal audit, and violations stated in the conclusions of the State Audit Agencies and inspection and examination agencies.

Article 19. Use of state budget funds

1. State budget funds must be used for proper purposes and subjects, strictly according to the norms, criteria and entitlements within the allocated estimates, and associated with the performance of tasks of agencies and organizations.

2. State budge-funded agencies, organizations and individuals shall draw up plans and measures and organize the implementation thereof with a view to achieving the assigned thrift targets and norms and waste combat requirements, concurrently ensure the fulfillment of their tasks.

3. Heads of agencies or organizations shall regularly assess the results of implementation of the assigned thrift targets and norms and waste combat requirements, and ensure the use of state budget funds for proper purposes and subjects and in accordance with the set norms, criteria and entitlements.

Article 20. Management and use of funds for national target programs, national programs

1. The funds of national target programs and national programs must be used for proper purposes, approved contents and schedules and in accordance with the issued norms, criteria and entitlements and law.

2. Agencies, organizations and individuals using funds of national target programs or national programs have the responsibility:

a) To determine the thrift targets and norms and waste combat requirements in the management and use of funds for national target programs or national programs;

b) To draw up plans and measures and organize the implementation thereof with a view to achieving the thrift targets and norms and waste combat requirements;

c) To annually conduct examination, internally audit and assessment on the implementation of thrift programs and targets and norms and waste combat requirements; to detect in time cases of waste for handling as prescribed by law.

3. The funds of national target programs and national programs shall be settled only after the implementation results are evaluated and accepted; for unaccepted contents, the persons responsible for managing and directing the implementation of programs must clarify the causes and identify specific responsibilities for handling under their competence, or transfer to competent agencies for handling as prescribed by law.

Article 21. Management and use of funds for performance of scientific and technological tasks

1. The management and use of funds for performance of scientific and technological tasks must ensure proper purposes, avoid overlap with other funding sources and ensure thrift and efficiency.

2. To apply the mechanism of assignment of the funding packages for performance of scientific and technological tasks based on scientific and technological research norms and outputs. The allocated funds shall be settled only when the results of scientific and technological task performance are examined and accepted. For unaccepted results, the allocated funds shall be partially or fully refunded with respect to unfulfilled contents and items in accordance with the law on science and technology and other relevant laws.

Article 22. Management and use of funds for performance of education and training tasks

1. The elaboration of training master plans and plans must be based on socio-economic development demands, the assessment of conditions on physical foundations and the quantity and quality of teachers and lecturers.

2. The elaboration of educational programs and contents must ensure the fundamentality, comprehensiveness, practicality, rationality, stability, consistency and inheritance.

3. Funds for elaboration of educational programs and contents must be used efficiently, for proper purposes, in accordance with law, and in conformity with training master plans and plans.

4. Grant of registration permit for establishment of schools must be based on the training master plans and plans prescribed in Clause 1 of this Article and relevant laws.

Article 23. Management and use of funds for performance of health tasks

1. The management and use of funds for performance of health tasks must strictly comply with the purposes, targets, norms, criteria and entitlements as prescribed by law.

2. The elaboration of health strategies, master plans, long-term, five-year and annual development plans and projects and facilities must be based on research, survey and assessment of the actual state of physical foundations, equipment and human resources, and on socio­-economic efficiency, and ensure synchronism in system of health establishments nationwide.

3. Investment in construction, procurement of equipment and preventive and curative medicines to serve the operation of health establishments from funds allocated by state budget must strictly comply with the construction and procurement master plans and plans, ensure proper purposes and subjects and strictly follow the construction and procurement processes, conform to demands and practical state of physical foundations and human resources of health establishments.

4. The grant of registration permit for establishment of medical examination and treatment establishments must be based on the development strategies, master plans and plans prescribed in Clause 2 of this Article and relevant laws.

Article 24. Establishment, management and use of funds originating from the state budget

1. The establishment of funds originating from the state budget must fully meet the following requirements and conditions:

a) Having a scheme on fund establishment in which clearly states the legal grounds, necessity, socio-economic significance and characteristic which cannot replaced by forms of budget allocation;

b) Being conformable with the state budget capacity;

c) No overlap in the purpose and guidelines of the fund;

d) Establishment according to the prescribed order, procedures and competence.

2. The management and use of fund originating from the state budget must abide by the following principles:

a) Abiding by law on state budget;

b) Strict observance of operation regulations and financial regulations of the fund;

c) Compliance with the purpose and guidelines of the fund;

d) Implementing fully regulations on information and reporting;

e) Publicity as prescribed by law.

3. Funds originating from the state budget must publicize the following contents:

a) The operation regulations and financial mechanism of the fund;

b) The annual financial plan which specifies revenues and expenditures in relation to state budget under regulations of competent authorities;

c) Operation results of the fund;

d) The annual financial settlement approved by competent authorities.

4. For funds originating from the state budget and fund established in accordance with law which operate at variance with their guidelines and purposes or have finished their objectives and tasks, or have operated inefficiently, the persons competent to establish such funds shall dissolve or propose competent authorities to dissolve such funds as prescribed by law.

Article 25. Thrift practice and waste combat applied in a number of cases of state budget spending

1. Cases of state budget spending specified in this Article include:

a) Organization of conferences, seminars or talks;

b) Sending of cadres, civil servants or public employees for domestic and overseas working missions or surveys;

c) Training and retraining of cadres, civil servants and public employees;

d) Use of electricity and water;

e) Use of stationeries, books, newspapers and magazines;

f) Guest reception, festivities; organization of festivals and anniversaries.

2. For the cases prescribed in Clause 1 of this Article, the heads of competent agencies or organizations shall:

a) Promulgate the management regulation, and assign the thrift targets and norms and waste combat requirements to each section and individual for realization;

b) Manage and use state budget funds strictly according to approved norms, criteria, regimes and estimates, ensuring the fulfillment of assigned tasks;

c) Assign fixed operation funds to users depending on nature, targets in case of eligibility under law in order to ensure efficiency and conformity with work requirements;

d) Conduct annual examinations and internal audits to promptly detect, handle violations.

Article 26. Assignment of financial autonomy and accountability to agencies and organizations

1. To assign payroll and financial autonomy and accountability to agencies and organizations operating with state budget funds when they are eligible under law; to encourage agencies and organizations to assign certain funding packages to direct managers and users.

2. The assignment of financial autonomy and accountability must be based on the functions and tasks of agencies or organizations and assessment on their practical use of state budget funds, ensuring thrift practice and waste combat. The valuation of state assets for assignment to financially autonomous public non-business units that are eligible to apply the mechanism of capital assignment to enterprises must strictly comply with the law on management and use of state assets.

3. Agencies and organizations enjoying financial autonomy and accountability must strictly comply with law and properly perform their assigned functions and tasks and achieve the targets when being assigned fixed operation funds and financial autonomy.

Article 27. Acts of causing waste in the elaboration, appraisal, approval, allocation and assignment of estimates, final settlement, management and use of state budget funds

1. Elaborating, appraising, approving, allocating or assigning estimates ultra vires, not according to the prescribed order, contents and time, not to proper subjects, or in excess of the norms, criteria and entitlements.

2. Using state budget funds not for proper purposes and proper subjects, not according to the assigned estimates; in excess of the norms, criteria and entitlements; failing to make plans, set out measures and organize the implementation thereof for the achievement of thrift targets and norms and waste combat requirements in agencies or organizations.

3. Settling state budget expenditures in contravention of procedures, contents and subjects, in excess of norms, criteria and entitlements; approving the final settlement late or delaying the final settlement in contravention of law.

4. Managing or using funds originating from state budget and funds established under law for improper purpose, in contravention of funds’ guidelines and operation regulations and financial mechanisms.

5. Formulating or approving master plans and plans on training without basing on the socio­economic development demands and assessing conditions on physical foundations, equipment and the quantity and quality of teachers and lecturers.

6. Developing education programs and contents without ensuring the fundamentality, comprehensiveness, practicality, rationality, stability, consistency and inheritance.

7. Using funds for development of education programs and contents for improper purpose, inconsistent to training master plans and plans, capacity and capability of educational institutions.

8. Formulating or approving health strategies, master plans, plans, projects and facilities without ensuring synchronism, thus leading to the lack of assistant doctors, doctors and the low efficiency in use of medical examination and treatment establishments.

9. Procuring equipment for operations of medical examination and treatment establishments with state budget allocations for improper purposes and overlap with other funding sources, procurement beyond demand leading to non-use or inefficient use.

10. Licensing establishment of schools or medical examination and treatment establishments without conformity with the strategies, master plans and plans on education or health development and other relevant laws.

Section 3. THRIFT PRACTICE, WASTE COMBAT IN PROCUREMENT AND USE OF VEHICLES, WORKING FACILITIES AND EQUIPMENT OF AGENCIES AND ORGANIZATIONS IN THE STATE SECTOR

Article 28. Procurement, equipping and repair of vehicles

1. Vehicles must be procured and equipped for proper subjects and serve practically work; not in excess of the norms, criteria and regulations issued by competent state agencies and in compliance with the law on bidding and law on management and use of state assets.

2. The repair and replacement of vehicles must be based on norms, criteria, regimes and regulations on technical standards of competent agencies or organizations.

3. Agencies and organizations assigned to manage and use vehicles take the responsibility:

a) To determine the thrift targets and norms and waste combat requirements in the procurement, repair and replacement of vehicles;

b) To annually make plans for procurement of new vehicles and repair of vehicles or transfer thereof from places in surplus to places in shortage for achievement of assigned thrift targets and norms, ensuring the fulfillment of tasks.

Article 29. Management and use of vehicles

1. Vehicles of agencies and organizations must be used for proper purposes and subjects and not in excess of norms, criteria and regulations issued by competent state agencies.

2. Agencies, organizations and individuals assigned to manage and use vehicles take the responsibility:

a) To determine the thrift targets and norms and waste combat requirements in use of vehicles;

b) To apply measures for thrift practice and waste combat in preservation of vehicles and fuel use in accordance with consumption norms for the achievement of assigned thrift targets and norms.

3. Unusable vehicles must be liquidated and the proceeds therefrom must be paid into the state budget promptly as prescribed by law.

4. The Government shall prescribe, and organize the implementation of regulations on management and use of vehicles by the following modes:

a) Equipping vehicles based on working titles, positions, areas and professions;

b) Hiring vehicles of service enterprises to serve work;

c) Assignment of the funding packages to persons eligible to use vehicles according to the prescribed criteria and regime.

Article 30. Procurement, equipping, management and use of working facilities and equipment

1. The procurement, equipping, management and use of working facilities and equipment must be conducted for proper purposes and subjects, not in excess of norms, criteria and regulations issued by competent state agencies; practically and efficiently serve work, satisfy the technology renewal requirements and comply with the law on bidding and law on management and use of state assets.

2. Agencies and organizations managing and using working facilities and equipment take the responsibility:

a) To appoint persons to manage, use, preserve, maintain, and open monitoring books for types of working facilities and equipment;

b) To promulgate internal regulations on use of working facilities and equipment; to assign thrift targets and norms and waste combat requirements to each section and user for observance;

c) To handle under their competence or propose competent agencies or organizations to dispose of working facilities and equipment which are no longer needed, used inefficiently or unusable, by way of transfer, recovery, liquidation or sale as prescribed by law.

Article 31. Procurement, equipping, management and use of information and communications equipment

1. The procurement and equipping of information and communications equipment at working offices must comply with work requirements and not exceed the norms, criteria and regulations issued by competent state agencies. Information and communications equipment at working offices must be used only for working purposes.

2. The equipping and use of information and communications equipment for individuals or at the private houses of officials and civil servants must comply with the norms, criteria and regulations issued by competent state agencies and the approved estimates; this funding shall be allocated a package to users.

3. Agencies and organizations assigned to manage and use information and communications equipment take the responsibility:

a) To promulgate, and organize the implementation of, internal regulations on the use of information and communications equipment; to assign thrift targets and norms and waste combat requirements to each section and user for observance;

b) To review all information and communications equipment under their management, recover equipment provided for improper subjects and make plans for provision and transfer of information and communications equipment in conformity with work requirements, ensuring thrift practice and efficiency.

Article 32. Acts of causing waste in procurement, equipping, management and use of vehicles, working facilities and equipment and information and communications equipment

1. Approving the procurement and equipping of vehicles, working facilities and equipment and information and communications equipment for improper subjects; or in excess of the norms, criteria and regulations issued by competent state agencies.

2. Arranging the use of vehicles, working facilities and equipment and information and communications equipment for improper purposes or in excess of the norms, criteria and regulations issued by competent state agencies.

3. Using vehicles, working facilities and equipment or information and communications equipment not for working purposes or using for production, trading, service, lease, joint venture or cooperation purposes without decision from competent authorities.

4. Failing to handle under competence or to propose competent state agencies to promptly dispose of vehicles, working facilities and equipment or information and communications equipment which are no longer needed or are used inefficiently.

5. Showing irresponsibility in the preservation of vehicles, working facilities and equipment or information and communications equipment, causing damage or loss.

6. Failing to set out measures for the achievement of thrift targets and norms and waste combat requirements in agencies or organizations.

Section 4. THRIFT PRACTICE AND WASTE COMBAT IN CONSTRUCTION INVESTMENT; MANAGEMENT AND USE OF WORKING OFFICES, PUBLIC-DUTY HOUSES AND PUBLIC-WELFARE FACILITIES

Article 33. Elaboration, appraisal and approval of master plans and plans on, and lists of investment projects

1. The elaboration, appraisal and approval of master plans and plans on socio-economic development; master plans and plans on sectoral, regional, field and product development; master plans and plans on land use, and construction master plans must conform to the orientations and strategies on socio-economic development and capability of the economy.

2. The elaboration, appraisal and approval of lists of investment projects must conform to the master plans and plans on socio-economic development; master plans and plans on sectoral, regional, field and product development; master plans and plans on land use and construction master plans.

Article 34. Elaboration, appraisal and approval of investment projects

1. The elaboration and appraisal of investment projects must conform to socio-economic development master plans and plans; sectoral and regional development master plans and plans; land use master plans and plans; construction master plans; and investment project master plans, plans and lists in accordance with the construction norms and standards.

2. The approval of investment projects must conform to the ability to arrange capital sources; ensure the balance between supplies and raw materials sources and production capacity and consumption markets; achieve socio­-economic efficiency and environmental protection.

3. Investment in projects may be decided only after the investment capital sources are clearly proved and ensured enough capital for implementation of the projects as scheduled.

Article 35. Construction survey and design

1. Construction survey and design must strictly comply with the survey and design process and regulations promulgated by competent state agencies.

2. The appraisal and approval of construction designs must strictly comply with norms and standards on construction promulgated by competent state agencies.

Article 36. Elaboration, appraisal and approval of total estimates and construction estimates

1. The elaboration, appraisal and approval of total estimates or construction estimates must be based on the construction norms, unit prices and standards promulgated by competent state agencies and must conform to the approved construction designs.

2. The adjustment of total estimates or construction estimates must be based on the practical implementation, clarified subjective and objective causes and liabilities related to the adjustment, and must comply with the process, procedures and jurisdiction prescribed by the laws on investment, construction, bidding and relevant laws.

Article 37. Selection of contractors and organizations of supervision consultancy for the implementation of investment projects

1. Investors shall publicize invitation for bids in the mass media and organize bidding in accordance with law on bidding in order to select contractors and supervision consultancy organizations.

2. The selected contractors or supervision consultancy organizations must be fully qualified and capable for implementation or supervision of the implementation of investment projects. They shall make plans for practice thrift and combat waste.

Article 38. Implementation of investment projects and works construction

1. Investment projects may be implemented and works may be constructed only after they have been approved by competent state agencies. Investment projects or works not included in master plans or plans, fail to satisfy the prescribed conditions or comply with the investment process and procedures must be terminated or cancelled.

2. Ground clearance for implementation of construction investment projects must ensure the project implementation schedule. The compensation, support and resettlement upon State recover land for implementation of construction investment projects must ensure democracy, objectivity, publicity, transparency, timeliness and lawfulness.

3. Construction of works must strictly comply with designs, construction standards and norms and approved schedules. Investors and project owners must examine and request contractors to keep to the construction schedule, to construct works according to designs, and to use raw materials and materials that meet quality standards and technical requirements, ensuring work quality and construction progress.

4. Supervision consultancy organizations for construction of works shall fulfill their committed obligations toward investors and project owners; detect and promptly stop negative acts, wasteful acts during the construction process.

5. Investors and project owners shall:

a) Specify the thrift targets and norms and waste combat requirements to assign to contractors for observance;

b) Not change at their own will the approved designs, estimates of works or winning bids; conduct pre-acceptance tests and organize final settlement for the works under regulations.

Article 39. Management of construction investment capital

1. The management of construction investment capital must abide by the following principles:

a) Complying the law on management of investment capital and in scope of the approved lists of investment projects and investment support projects;

b) Complying with the norms, standards, criteria, unit prices, process and procedures as prescribed by the laws on investment, construction and bidding;

c) Conforming to the ability to arrange capital sources, ensuring the construction schedule within the limits of total estimates of works;

d) Ensuring socio-economic efficiency and conformity with the investment targets and requirements.

2. Agencies and organizations managing construction investment capital shall:

a) Determine the thrift targets and norms and waste combat requirements in management of construction investment capital, which will be assigned to capital-funded agencies and organizations for implementation, ensuring thrift and efficiency;

b) Ensure concentrated investment, for proper objectives and efficiency, timely and thrift capital allocation;

c) Conduct supervision, examination, inspection and internally audit of capital management in agencies or organizations. Handle cases of waste under their competence or propose such cases to competent authorities for timely handling.

Article 40. Use of construction investment capital

1. The use of construction investment capital must comply with the criteria, standards, norms, unit prices, process and procedures prescribed by the laws on investment, construction and bidding.

For projects partially supported with state budget, investors must prove and pledge to ensure adequate counterpart capital sources before the projects are approved.

2. Investors and project owners using construction investment capital take the responsibility to set up plans and measures in order to organize implementation of assigned thrift targets and norms and waste combat requirements, ensuring completion of the works or investment projects on schedule; to organize activities of people’s inspection, internal audit and annual assessment in order to detect promptly violations related to thrift practice and waste combat and handle them as prescribed by law.

Article 41. Organization of groundbreaking, construction commencement and construction completion ceremonies

1. State budget funds may be used for organization of groundbreaking, construction commencement and construction completion ceremonies only for the following works:

a) National important works;

b) Local works which have great value and important economic, political, cultural and social significance.

2. The Prime Minister shall decide on the organization of groundbreaking, construction commencement and construction completion ceremonies for works specified at Point a, Clause 1 of this Article, and prescribe organization of groundbreaking, construction commencement and construction completion ceremonies for works specified at Point b, Clause 1 of this Article.

Article 42. Management and use of working offices and non-business operation facilities

1. Agencies and organizations assigned to manage and use working offices, other assets attached to land areas of working offices or non-business operation facilities must manage and use them for proper purposes and in accordance with law, ensuring thrift and efficiency.

The construction of new ones, upgrading, renovation, repair or lease of working offices and non-business operation facilities of state budget- funded agencies or organizations must conform to the norms, criteria and regulations issued by competent state agencies.

2. Working offices which are used for improper purposes or unused must be recovered and handled as prescribed by law on management and use of state assets and law on the state budget.

Article 43. Management and use of public- duty houses

1. Public-duty houses shall be allocated for cadres and civil servants to live in the period of performing their duties, according to proper subjects and the norms, criteria and regulations issued by competent state agencies. Public-duty houses allocated to improper subjects, used for wrong purposes, unused or at the expiration of contracts must be recovered.

2. Agencies managing public-duty houses shall formulate and promulgate regulations on management of public-duty houses, sign contracts with users, periodically examine the performance of the contracts, and examine and recover the houses upon expiration of the contracts.

3. Persons assigned to use public-duty houses must comply with regulations on management of public-duty houses, use them for proper purposes, preserve houses and other assets according to hand-over dossiers; may neither renovate, repair or alter the structures and utility of public-duty houses at their own will; neither transfer nor sublease such houses in any form; and must return them to the managing agencies when they are no longer eligible or no longer have the demand to rent these houses.

Article 44. Management and use of public-welfare facilities

1. Public-welfare facilities must be managed and used for proper purposes. Public-welfare facilities which are not put into use or used inefficiently shall be recovered and assigned to other agencies or organizations for management and use.

2. Agencies and organizations assigned to manage and use public-welfare facilities take the responsibility:

a) To draft and promulgate regulations on management of the facilities; to set out plans on thrift and efficient preservation, exploitation, embellishment and use;

b) To determine the thrift targets and norms and waste combat requirements in the management and use of public-welfare facilities;

c) To supervise, examine and manage use of public-welfare facilities.

Article 45. Acts of causing waste during construction investment, management and use of working offices, public-duty houses and public-welfare facilities

1. Approving investment projects outside the approved master plans and plans; lack of scientific grounds or improper with the norms and standards; or in excess of norms and unit prices as prescribed by law.

2. Failing to follow the topographical and geological survey process and regulations promulgated by competent state agencies; reporting inaccurate, untruthful and subjective survey data. Failing to observe the process, norms, criteria and standards, which are promulgated by competent state agencies, upon design, appraisal and approval of construction designs of works.

3. The ground clearance or project implementation is performed later than the approved schedules due to subjective causes; the projects are performed or the construction is started before they are approved by competent state agencies.

4. Allocating capital in a scattered manner and later than the planned schedule; failing to organize final settlement or organizing late final settlement for construction works or projects.

5. Using investment capital at variance with set criteria and standards, or in excess of the norms and unit prices as prescribed by law.

6. Arbitrarily adjusting the total work estimates in contravention of law on bidding and relevant laws. Arbitrarily adjusting the construction designs, standards and criteria already approved by competent authorities.

7. Using working offices or public-duty houses for improper purposes or improper subjects, or in excess of the norms, criteria and entitlements issued by competent state agencies.

8. Failing to handle under competence or to propose competent state agencies to handle promptly state-invested works which are unusable, are no longer needed or are used with a low efficiency, failing to achieve the set targets.

9. Using state budget funds for organization of groundbreaking, construction commencement or work completion ceremonies for works other than those specified in Clause 1, Article 41 of this Law.

10. Failing to set out measures and organize the implementation of the thrift targets and norms and waste combat requirements in construction investment, management and use of working offices, public-duty houses and public-welfare facilities.

Section 5. THRIFT PRACTICE AND WASTE COMBAT IN MANAGEMENT, EXPLOITATION AND USE OF RESOURCES

Article 46. Thrift practice and waste combat principles in management, exploitation and use of resources

1. Conforming to the master plans and plans on resource exploitation and protection already approved by competent authority.

2. Assessing impacts, socio-economic efficiency and national requirements of sustainable development in association with environmental protection.

3. Applying scientific and technological advances to exploitation and processing of resources; ensuring the rational, efficient and thrifty management, exploitation and use and for proper purposes. Only licensing resource exploitation and processing activities that meet the requirement of application of scientific and technological advances.

4. Complying with the order and procedures prescribed by the laws on land, water resources, minerals, protection and development of forests and other types of resources.

Article 47. Land management and use

1. The land management and use by agencies, organizations, households and individuals must:

a) Comply with the master plans and plans on land use;

b) Comply with the land use purposes;

c) Ensure thrift, efficiency, environmental protection and not harm the legitimate interests of related land users.

2. Agencies and organizations assigned to manage and use land take the responsibility:

a) To manage and use land according to the certificates of land use rights and ownership of houses and other land-attached assets, decisions on land allocation and land lease contracts, and other provisions of the land law;

b) To determine the thrift targets and norms and waste combat requirements in land management and use, and to set out plans and measures for implementation of the thrift targets and norms and waste combat requirements in land management and use; to implement the provisions on land management and use in the Land Law and relevant laws;

c) To conduct examinations and inspections on land management and use; to detect and handle under competence or propose competent authorities to handle acts of using land for wrong purposes and causing land waste.

Article 48. Management, exploitation and use of water resources

1. The management, exploitation and use of water resources by agencies, organizations, households and individuals must:

a) Comply with master plans and plans on use of water resources;

b) Comply with proper purposes, and ensure thrift and efficiency, environmental protection and sustainable development;

c) Neither obstruct nor damage the lawful exploitation and use of water resources by other organizations and individuals.

2. Agencies and organizations assigned to manage, exploit and use water resources take the responsibility:

a) To determine the thrift targets and norms and waste combat requirements in management, exploitation and use of water resources;

b) To make plans and measures for implementation of the thrift targets and norms and waste combat requirements in management, exploitation and use of water resources;

c) To protect water resources which are in use;

d) To comply with the provisions on management, exploitation and use of water resources in the Law on Water Resources and other relevant laws;

e) To conduct examinations and inspections over exploitation and use of water resources; to detect and promptly handle under competence or propose competent authorities to handle acts of polluting, destroying, or causing loss or waste of water resources.

Article 49. Management, exploitation and use of minerals

1. The management, exploitation and use of minerals by agencies, organizations, households and individuals must ensure:

a) Conformity with strategies and master plans on mineral exploitation;

b) Socio-economic efficiency, environmental protection and sustainable development;

c) Compliance with mineral exploitation licenses granted by competent state management agencies;

d) Full exploitation of minerals and the efficient use of useful by-products from mineral exploitation activities.

2. Agencies, organizations and individuals assigned to manage, exploit and use minerals take the responsibility:

a) To determine the thrift targets and norms and waste combat requirements in the management, exploitation and use of minerals;

b) To set up plans and measures for implementation of the thrift targets and norms and waste combat requirements in management, exploitation and use of minerals;

c) To exploit minerals according to types and reserves and with techniques as stated in the licenses; to make deposits for environment improvement and restoration; to improve and restore environment after exploitation of minerals;

d) To comply with law on management, exploitation and use of minerals and other relevant laws;

e) To organize examination and inspection over exploitation and use of minerals; to detect and promptly handle under competence or to propose competent authorities to handle acts of polluting or destroying the environment, or causing loss or waste of minerals.

Article 50. Management, exploitation and use of forest resources

1. The management, exploitation and use of forest resources by agencies, organizations, households and individuals must ensure:

a) Conformity with strategies on forestry development; complying with master plans and plans on forest protection and development;

b) Forest protection and forest fire fighting and sustainable development of forest resources;

c) Combination between forest protection and development and rational exploitation to efficiently bring into play forest resources;

d) Harmony between the interests of the State and the interests of forest owners, between the economic interests of forests and the interests of forest protection, environmental protection and resource conservation.

2. Agencies, organizations, households and individuals assigned to manage, exploit and use forest resources take the responsibility:

a) To determine the thrift targets and norms and waste combat requirements in management, exploitation and use of forest resources;

b) To make plans and measures for implementation of the thrift targets and norms and waste combat requirements in management, exploitation and use of forest resources;

c) To use forest resources for proper purposes, according to the boundaries determined in the decisions on forest assignment or lease and in accordance with regulations on forest management;

d) To organize examination and inspection over exploitation and use of forest resources; to detect and promptly handle under competence or propose competent authorities to handle acts of polluting, destroying, causing loss or waste of forest resources.

Article 51. Management, exploitation and use of other resources

1. Other resources not yet prescribed in Articles 47, 48, 49 and 50 of this Law must be managed, exploited and used thriftily and efficiently.

2. Agencies, organizations, households and individuals assigned to exploit and use resources shall make plans and measures for thrifty and efficient exploitation and use.

Article 52. Use of recycled resources and recycle energy sources

1. The use of recycled resources and recycle energy sources is determined as a mode of efficient thrift practice and waste combat. Investment projects on resource recycling and use of recycled resources and recycle energy sources are entitled to enjoy investment incentives as prescribed by law on investment.

2. Investors contributing capital in forms of patents, technical know-hows, technological processes and technical services related to the use of recycled resources or recycle energy sources are entitled to financial assistance as prescribed by law.

3. Organizations and individuals having innovations in resource recycling and use of recycled resources or recycle energy sources, which contribute to thrift practice and waste combat shall be given rewards from the funds saved through application of such innovations and as prescribed by law.

Article 53. Wasteful acts in management, exploitation and use of resources

1. Managing, exploiting and using resources at variance with master plans, plans and processes approved by competent state agencies.

2. Causing pollution, resource destruction; failing to apply solutions and measures to protect the environment.

3. Assigning land, leasing land, recovering land, permitting change of land use purpose at variance with the approved master plans and plans on land use; using land for improper purposes and without efficiency; being late in putting the land into use as prescribed in decisions on land allocation or contracts of land lease; failing to return land in prescribed time according to decisions on land recovery issued by competent state agencies; leaving land uncultivated, failing to fully tap the allocated areas.

4. Failing to elaborate measures for implementation of the thrift targets and norms and waste combat requirements in management, exploitation and use of resources.

5. Failing to sort and recycle wastes as prescribed by law; causing difficulties or obstacles to agencies, organizations or individuals in scientific and technological research and application or in implementation of projects on using the recycled resources.

6. Licensing the exploitation and processing of resources which fail to satisfy the requirements on application of scientific and technological advances.

Section 6. THRIFT PRACTICE AND WASTE COMBAT IN APPARATUS ORGANIZATION, MANAGEMENT AND USE OF LABORERS AND WORKING TIME IN THE STATE SECTOR

Article 54. Thrift practice and waste combat principles in management and use of laborers and working time

1. Complying with law on management and use of laborers and working time.

2. Competent agencies, when considering and approving payrolls or deciding on use of labor resources and working time, shall base on task requirements, working positions and payroll norms, ensuring the thrift practice and waste combat requirements.

3. The management and use of laborers and working time must be based on the application of technologies, modernization, and administrative reform requirements.

4. The apparatus organization of agencies and organizations must be based on the review of working positions, functions, tasks, powers, organizational structures and existing payroll quotas in order to avoid overlap, inadequacy, duplication in functions and tasks.

Article 55. Management and use of laborers and working time in state agencies

1. The recruitment of civil servants in agencies and organizations must be based on task requirements, working positions and within the scope of payroll decided by competent state agencies; ensure publicity, transparency, fairness and objectivity and comply with the law on cadres and civil servants.

2. Training human resource, arrangement and employment of cadres and civil servants must be based on plans on human resource development, requirements of working position, training qualifications, professional competence and ranks of cadres and civil servants. Rank promotion, rank shift and appointment of cadres and civil servants must comply with the law on cadres and civil servants.

3. The use of laborers and working time must be based on the rational, scientific and efficient organization of work in association with administrative reform.

4. Agencies, organizations and heads of agencies or organizations must elaborate plans on training, retraining and evaluation of cadres and civil servants in accordance with law on cadres and civil servants; elaborate appropriate plans on use of working time and handling of work; and elaborate regulations on labor discipline in accordance with law on labor and the law on cadres and civil servants.

Article 56. Management and use of laborers and working time in public non-business units

1. The recruitment of public employees in public non-business units must be based on the professional title criteria, working positions and work requirements; ensure publicity, transparency, fairness and objectivity; raise the responsibility of heads of public non-business units and comply with the law on public employees.

2. Training and retraining for laborers in public non-business units must be based on managerial position criteria, professional titles and requirements on updating professional knowledge and skill.

3. Public non-business units must organize work in a rational and scientific manner, associated with requirement on raising non-business service quality and operation efficiency.

4. Public non-business units must make plans on training, retraining, evaluation and classification of public employees in accordance with the law on public employees; elaborate appropriate plans on use of working time and handling of work; and elaborate regulations on labor discipline in accordance with the law on labor and law on public employees.

Article 57. Management and use of laborers and working time in other agencies and organizations

Other agencies and organizations shall base on their practical use of laborers and working time to apply the provisions of Articles 54, 55 and 56 of this Law and the labor law.

Article 58. Acts of causing waste in management and use of laborers, working time in the state sector

1. Recruiting civil servants in excess of payroll quotas stated in decisions of competent agencies; recruiting improper persons, in contravention of regulations, or ultra vires.

2. Recruiting public employees into payrolls or signing definite-term or indefinite-term labor contracts for jobs eligible for signing seasonal labor contract or labor contract for a specific work of under 12 months or vice versa.

3. Recruiting public employees without basing on work requirements, working positions, professional title criteria and wage funds of public non-business units.

4. Arranging or employing cadres, civil servants or public employees without basing on work requirements, training qualifications, professional capabilities, ranks and titles under regulations.

5. Training and retraining at variance with plans, without basing on requirements on updating professional knowledge and skills and capabilities of cadres, civil servants, public employees and laborers.

6. Using working time to do personal affairs, using working time inefficiently.

7. Assigning payrolls higher than practical demands, not conforming to scientific advances and occupational skills of workers.

Section 7. THRIFT PRACTICE AND WASTE COMBAT IN MANAGEMENT AND USE OF STATE CAPITAL AND ASSETS AT ENTERPRISES

Article 59. Management and use of state capital at enterprises

1. The management and use of state capital at enterprises must be based on capital use efficiency, diversify capital sources, have rational and thrifty capital structure; and comply with purposes and regimes as prescribed by law and the enterprises’ charters.

2. The authorized representatives of state capital at enterprises shall monitor and supervise situations of operation and business of enterprises in relation to the efficiency of contributed capital, detect promptly violations, inefficient use of capital, risks of capital loss, and promptly report them to the owners.

Article 60. Management and use of land and state assets at enterprises

1. The management and use of state assets at enterprises must be based on increase of productivity, quality, and efficiency in asset use. The management and use of land must comply with purposes stated in decisions on land allocation, land lease contracts, or certificates of land use rights and ownership of houses and other land-attached assets which are granted by competent state agencies in conformity with master plans approved by competent authorities.

2. Enterprise managers take the responsibility

a) To formulate regulations on management and efficient use of land and state assets at the enterprise;

b) To annually organize the examinations, internal audits to assess the thrift practice and waste combat in enterprises; promptly detect violations for handling as prescribed by law.

Article 61. Thrift practice and waste combat at state-owned enterprises

1. In addition to the provisions of Articles 59 and 60 of this Law, state-owned enterprises must comply with the following provisions:

a) Applying regulations on financial management and financial supervision as prescribed by law;

b) Identifying and developing synchronous solutions for implementation of thrift targets and norms and waste combat requirements in management and use of capital, funds and assets at the enterprises;

c) Examining and detecting promptly wasteful acts arising at the enterprises;

d) Offering incentives to agencies, organizations and individuals that have detected occurrence of waste at the enterprises, rewarding persons who make achievements in thrift practice and waste combat.

2. Heads of state-owned enterprises take the responsibility:

a) To elaborate and register with the owners specific thrift targets and norms, saving and reduction of annual and long-term production and business costs of the enterprises;

b) To set out measures and solutions to implement the thrift and cost reduction targets and norms, and publicize them to laborers in the enterprises;

c) To organize the implementation of registered thrift targets and norms, annually report on the implementation results to the owners and relevant management agencies;

d) To organize examinations and internal audits; to examine, review and make financial supervision reports for timely detection of violations in management and use of capital and funds of the enterprises.

Article 62. Wasteful acts in management and use of state capital at enterprises

1. Wasteful acts in management and use of state capital at enterprises include:

a) Managing and using state capital inefficiently, causing loss;

b) Managing and using state assets for improper purposes;

c) Establishing, managing or using funds for improper purposes and entitlements as promulgated by competent state agencies;

d) Failing to elaborate measures for implementation of thrift targets and norms and waste combat requirements in management and use of state capital and assets at enterprises.

2. The authorized representatives of contributed state capital at enterprises who fail to implement or improperly implement the provisions of Clause 2, Article 59 of this Law, causing waste, shall be handled as follows:

a) They shall give explanations at the requests of owners;

b) They shall be disciplined or examined for penal liability as prescribed by law, depending on seriousness of violations.

3. Heads of state-owned enterprises who fail to implement or implement in contravention with the provisions of Article 61 of this Law and commit violations prescribed in Clause 1 of this Article, thus causing waste, shall be handled as follows:

a) They shall give explanations at the requests of owners, inspection agencies, State Audit Agencies, supervision agencies and specialized state management agencies;

b) They shall pay compensation partly or entirely for damage as prescribed by law;

c) They shall be disciplined or examined for penal liability as prescribed by law, depending on seriousness of violations.

Section 8. THRIFT PRACTICE AND WASTE COMBAT IN PEOPLE’S PRODUCTION, BUSINESS AND CONSUMPTION ACTIVITIES

Article 63. Thrift practice and waste combat principles in people’s production, business and consumption activities

1. Ensuring the rights and interests of State, the lawful rights and interests of organizations and individuals in production, business and consumption activities.

2. Not obstructing traffic and public activities, not causing social disorder and insecurity; not causing environmental pollution.

3. Preserving the fine customs and practices, building cultured, civilized and healthy lifestyles; avoiding waste which affects the lawful rights and interests of community.

Article 64. Thrift practice and waste combat in people’s construction investment, production, business and consumption activities

1. Investment projects for production and business development must strictly comply with master plans and plans on land use, construction master plans, master plans on cultural relic conservation and embellishment, specialized master plans and regulations on protection of environmental landscape promulgated by competent state agencies.

2. Use of capital, laborers, natural resources and other resources in construction investment, production and business must be based on thrift and efficiency.

3. State shall encourage practice thrift and combat waste by organizations and individuals in production, business and consumption in order to save capital for investment in production, business and other investment forms not banned by law.

Article 65. Thrift practice and waste combat in organization of festivals and other activities with use of resources contributed by communities

1. Organization of festivals and other activities with use of resources contributed by communities must ensure thrift, proper purposes, efficiency, publicity, transparency, preservation of fine customs and practices, creation of cultured, civilized and healthy lifestyles and avoid waste.

2. Organizations and individuals that fail to comply or improperly comply with the provisions of Clause 1 of this Article, thus causing waste, must give explanations before their communities, Vietnam Fatherland Front and its member organizations, mass media agencies and specialized management agencies in localities where the activities involving such organization take place.

3. The Prime Minister shall specify the application of civilized lifestyle in weddings, funerals and festivals, ensuring thrift practice and waste combat in people’s production, business and consumption activities; and stipulate policies to encourage the entire people’s practice thrift and combat waste in weddings and funerals.

Article 66. Organization of implementation of regulations on thrift practice and waste combat in people’s production, business and consumption activities

1. The People’s Councils and People’s Committees at all levels shall, based on regulations of the Prime Minister and their competence, decide scales of festivals and other cultural activities in their localities; adopt policies to encourage thrift practice and waste combat in weddings and funerals; take responsibility to organize implementation of the thrift practice and waste combat movements in local people; specify forms of commending and rewarding organizations, households and individuals that properly observe law on thrift practice and waste combat.

2. The Ministry of Culture, Sports and Tourism shall elaborate cultured family criteria, in association with the encouragement and mobilization of people’s practice thrift and combat waste, contributing to building of a civilized and healthy society.

3. Agencies and organizations shall include the thrift practice and waste combat contents into their charters, regulations or rules; request their cadres, civil servants, public employees or members to exemplarily implement legislations on thrift practice and waste combat. They shall consider and assess their cadres, civil servants, public employees or members based on results of thrift practice and waste combat.

4. Mass media agencies shall promptly propagate, and encourage as well as commend good people and good deeds in thrift practice and waste combat, while condemning and criticizing acts of causing waste.

Chapter 3.

RESPONSIBILITIES OF AGENCIES AND ORGANIZATIONS IN THRIFT PRACTICE AND WASTE COMBAT

Article 67. Responsibilities of the Government

1. To submit to the National Assembly or the National Assembly Standing Committee for promulgation or to promulgate under its competence legal normative documents, policies and specific measures for thrift practice and waste combat in conformity with the management requirements and the national socio-economic development in each period.

2. To elaborate, promulgate, and organize implementation of the annual and long-term master programs on thrift practice and waste combat; to determine and direct the national thrift targets and norms and waste combat requirements in association with socio-­economic development plans.

3. To direct ministries, ministerial-level agencies, government-attached agencies and provincial People’s Committees to coordinate in their task performance so as to ensure thrift practice and waste combat; to elaborate and implement the annual and long-term programs on thrift practice and waste combat in the scopes and fields under their management, to decide on specific thrift norms of the key sectors and fields in the thrift practice and waste combat programs of ministries, sectors and localities.

4. To stipulate the regime of reporting on thrift practice and waste combat; to annually make review reports on thrift practice and waste combat results of a year to the National Assembly at the session convened at the beginning of subsequent year.

5. To organize the work of inspection and examination over thrift practice and waste combat; to promptly, strictly and publicly handle violations of law on thrift practice and waste combat as prescribed by law.

6. To intensify coordination with the Vietnam Fatherland Front Central Committee in supervising the thrift practice and waste combat and direct the mass media agencies to push up the propagation and mobilization of the entire people for thrift practice and waste combat.

Article 68. Responsibilities of the Ministry of Finance

1. To assist the Government in uniformly carrying out and guiding provisions of this Law; to sum up and submit to the Government for approval of the annual and long-term master programs on thrift practice and waste combat; to organize and inspect the implementation of the thrift practice and waste combat programs and periodically review and report the implementation results of programs on thrift practice and waste combat.

2. To promulgate or submit to competent authorities for promulgation of legal documents detailing and guiding implementation of this Law.

3. To guide and assign specific thrift norms for every management field in association with elaboration of the annual budget plans; organize the implementation thereof, and take responsibility for results of thrift practice and waste combat in the sectors and fields under its management.

4. To sum up and report on general thrift practice and waste combat results nationwide to the Government.

5. To inspect, examine and handle violations in observance and implementation of law on thrift practice and waste combat within the sectors and fields under its management; to organize implementation of the State Treasury’s expenditure control activities according to regulations.

Article 69. Responsibilities of ministries, ministerial-level agencies and government- attached agencies

1. To promulgate or propose competent authorities to promulgate mechanisms, policies and measures for thrift practice and waste combat within the sectors and fields under their management under their competence in association with the determination of thrift targets and norms and organize implementation according to the schedule and with ensured quality.

2. To review the systems of techno-economic norms, criteria and entitlements under their management; to revise, supplement and issue or propose competent authorities to issue them promptly in line with the practical situation and scientific and technological advances, ensuring thrift and waste combat.

3. To develop and implement the annual and long-term thrift practice and waste combat programs, clearly identifying the targets, norms and criteria to assess thrift for their sectors and fields and for agencies and organizations under their management, and send them to the Ministry of Finance for sum-up.

4. To organize implementation of the thrift practice and waste combat and take responsibility for the results thereof in the sectors and fields under their management. To sum up results of thrift practice and waste combat and the handling of wasteful acts in the sectors and fields under their management, and send them to the Ministry of Finance for preparing reports to the Government.

5. To inspect, examine and handle violations as well as publicize the handling of violations related to thrift practice and waste combat within the sectors and fields and agencies and organizations under their management.

Article 70. Responsibilities of People’s Councils at all levels

1. To promulgate within scope of their functions, tasks and powers regulations on application of measures for thrift practice and waste combat in their localities.

2. To decide on guidelines and solutions for thrift practice and waste combat in association with implementation of thrift practice and waste combat programs and the assigned thrift targets and norms in line with the local socio-economic development situation and specific conditions.

3. To supervise the application of thrift practice and waste combat measures in localities; to supervise the publicity of the fields and activities specified in Article 5 of this Law and results of inspection and examination over implementation of regulations on thrift practice and waste combat in localities.

Article 71. Responsibilities of People’s Committees at all levels

1. To elaborate and implement the annual and long-term thrift practice and waste combat programs, clearly determining the targets, norms, measures and criteria for assessment of annual thrift practice and waste combat.

2. To organize the application of thrift practice and waste combat measures within their localities; to sum up and report on the results of thrift practice and waste combat to the People’s Councils at the same level and superior finance agencies, and the handling of wasteful acts in localities.

3. To inspect, examine and strictly and promptly handle under their competence violations of the law on thrift practice and waste combat and publicize the handling results in localities.

4. To publicize the fields and activities specified in Article 5 of this Law under their competence and decentralization in localities; to ensure the right to supervise the thrift practice and waste combat of citizens and relevant agencies and organizations.

Article 72. Responsibilities of the Vietnam Fatherland Front and its member organizations

1. To supervise the thrift practice and waste combat at state agencies and organizations; to supervise the handling of wasteful acts in accordance with current law.

2. To propagate, mobilize and guide people in thrift practice and waste combat during production, business and consumption.

3. The Vietnam Fatherland Front Committees of communes, wards or townships shall guide the people’s inspection boards in communes, wards or townships; the investment supervision boards formed by the communities; trade union committees of state agencies, organizations or state-owned enterprises shall direct the people’s inspection boards in state agencies, organizations or state-owned enterprises to organize activities of supervising the thrift practice and waste combat.

4. Annually, the Vietnam Fatherland Front Committees shall coordinate with ministries, ministerial-level agencies, government- attached agencies and People’s Committees at all levels in elaborating and implementing action programs for supervision of and social criticism on the thrift practice and waste combat.

Article 73. Responsibilities of inspectorates

1. Agencies with inspection functions shall carry out, organize and direct the inspection of thrift practice and waste combat in the following principles:

a) The inspection of thrift practice and waste combat shall be conducted on basis of law and the norms, criteria and regulations issued by competent state agencies;

b) The inspection of thrift practice and waste combat may not obstruct the normal activities of the inspected agencies and organizations;

c) The inspection of thrift practice and waste combat shall be carried out under programs or plans and unexpectedly in association with inspection activities in each field, ensuring objectivity and honesty;

d) Thrift practice and waste combat inspection activities must strictly comply with this Law and other relevant laws.

2. Methods of thrift practice and waste combat inspection

a) The inspection of thrift practice and waste combat must be associated with the performance of inspection functions and tasks of agencies and organizations and strictly follow the inspection order and procedures as prescribed by law on inspection. Agencies assigned to conduct specialized inspection must include the thrift practice and waste combat inspection in contents of inspections in fields under their specialized management;

b) Conducting specialized inspections of thrift practice and waste combat.

3. Conclusions of thrift practice and waste combat inspection must be publicized as prescribed by law. In addition to the publicity provisions of the Inspection Law, the inspectorates shall base on the forms of publicity specified in Clause 3, Article 5 of this Law to decide on forms of publicizing inspection results.

4. In case of detecting violations of law on thrift practice and waste combat, the inspectorates shall promptly propose and transfer dossiers to competent state agencies for handling.

Article 74. Responsibilities of the State Audit Agency

1. Within the scope of its tasks and powers, the State Audit Agency shall perform audit to prevent, detect and handle violations of the law on thrift practice and waste combat.

2. To publicize audit results involving thrift practice and waste combat, except for cases of state secrets as prescribed by law.

3. In case of detecting violations of law on thrift practice and waste combat, State Audit Agency shall promptly propose and transfer dossiers to competent state agencies for handling.

Article 75. Responsibilities of investigation agencies, People’s Procuracies and People’s Courts

1. Upon receipt of denunciations or reports of individuals, agencies or organizations, or proposals of state agencies to institute criminal cases against wasteful cases with criminal signs, the investigation agencies or People’s Procuracies must accept such cases for settlement according to the order set by the criminal procedure law. The results of settlement of such proposals must be notified in writing to the proposing agencies; in case of non-institution of criminal cases, they must clearly state the reasons thereof.

2. Within the scope of their functions, tasks and powers, the investigation agencies, People’s Procuracies and People’s Courts shall assume the prime responsibility for, and coordinate with competent agencies in promptly and strictly handling violations of law on thrift practice and waste combat.

Chapter 4.

COMPLAINTS, DENUNCIATIONS, COMMENDATION AND HANDLING OF VIOLATIONS

Article 76. Complaints and denunciations

1. Citizens, agencies, organizations, cadres or civil servants have the right to lodge complaints about, citizens have the right to denounce, violations of law on thrift practice and waste combat, and to be protected as prescribed by law on denunciations.

2. Agencies, organizations and individuals, under their jurisdiction, shall settle complaints and denunciations about violations of law on thrift practice and waste combat as prescribed by law on complaints and law on denunciations.

3. Those who cover up violators, obstruct, or show irresponsibility in, the handling of complaints, denunciations and violators involving law on thrift practice and waste combat, those who intimidate, retaliate or take revenge on complainants or denouncers shall be disciplined, administratively sanctioned or examined for penal liability, depending on the nature and seriousness of their violations.

Article 77. Commendation

1. Agencies, organizations or individuals that record the following achievements will be commended:

a) Fulfilling or fulfilling in excess of the assigned thrift targets and norms and waste combat requirements;

b) Having solutions or innovations in thrift practice and waste combat, which give specific results;

c) Detecting or reporting detection information on waste, stopping waste promptly.

2. Funding sources for commendation

a) Reward money sources as prescribed by Law on Emulation and Commendation;

b) Source of fund saved from the application of solutions and innovations;

c) Source of fund earned from the prevention of waste which is detected and redressed promptly;

d) Source of fund allocated to agencies or organizations for self-control.

3. The Government shall provide for the calculation, determination and use of funding sources for commendation stated in Clause 2 of this Article.

Article 78. Handling of violations and compensation for damage

1. Agencies, organizations or individuals that commit violations specified in Articles 27, 32, 45, 53 and 58 of this Law; or fail to implement or improperly implement this Law, thus letting waste occur, shall be handled as follows:

a) Taking responsibility to give explanations at the request of their direct managing agencies, organizations or persons, superior agencies, inspection, examination, audit and supervision agencies and specialized state management agencies;

b) Paying compensation partly or entirely for damages as prescribed by law;

c) Being disciplined, administratively sanctioned or examined for penal liability as prescribed by law, depending on seriousness of their violations.

2. Heads of agencies or organizations who do not directly commit violations but let waste occur in their agencies or organizations, let wasteful acts committed by persons they directly manage or assign tasks occur, or fail to handle wasteful acts under their competence, shall be handled as follows:

a) Taking responsibility to give explanations at the request of superior agencies, organizations or individuals, inspection, examination, audit and supervision agencies and specialized state management agencies;

b) Being disciplined or examined for penal liability as prescribed by law, depending on seriousness of such violations.

3. Heads of agencies or organizations of immediate higher level shall take joint responsibility for letting waste occur in their subordinate agencies or organizations or in agencies or organizations which are managed by their deputies and shall be handled as follows:

a) Taking responsibility to give explanations at the request of superior agencies, organizations or individuals, inspection, examination, audit and supervision agencies and specialized state management agencies;

b) Being disciplined or examined for penal liability as prescribed by law, depending on seriousness of such violations.

4. Heads of agencies or organizations who have applied necessary measures to prevent and remedy wasteful acts; have strictly handled such acts and promptly reported wasteful acts to competent agencies or organization will be considered for reduction of legal liability specified in Clauses 2 and 3 of this Article.

5. The Government shall detail this Article.

Chapter 5.

IMPLEMENTATION PROVISIONS

Article 79. Effect

This Law takes effect on July 01, 2014.

Law on Thrift Practice and Waste Combat No. 48/2005/QH11 ceases to be effective on the effective date of this Law.

Article 80. Detailed provisions

The Government shall detail the articles and clauses assigned in this Law.

This Law was passed on November 26, 2013 by the XIII^th National Assembly of the Socialist Republic of Vietnam, at its 6^th session.