THE STANDING COMMITTEE OF NATIONAL ASSEMBLY --------------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness --------------
No. 17/2004/PL-UBTVQH11	Hanoi, April 29, 2004

ORDINANCE

ON NATIONAL RESERVES

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10 of December 25, 2001 of the Xth National Assembly, the 10th session;

Pursuant to Resolution No. 21/2003/QH11 of November 26, 2003 of the XIth National Assembly, the 4th session, on the 2004 law- and ordinance-making program;

This Ordinance provides for national reserves.

Chapter I

GENERAL PROVISIONS

Article 1.- Objectives of national reserves

National reserves constitute the State's strategic reserve source, aiming to actively satisfy urgent requirements of prevention, combat and overcoming of consequences of natural disasters, fires, epidemics; to ensure defense and security; take part in stabilizing the market, contribute to stabilizing the macro-economy, and perform other extraordinary urgent tasks of the State.

Article 2.- Scope of regulation

This Ordinance prescribes the building, management, administration and use of national reserves.

Article 3.- Subjects of application

1. Agencies, organizations and individuals that are involved in the building, management and administration of national reserves.

2. Agencies, organizations and individuals that are involved in the use of national reserves.

Article 4.- Interpretation of terms

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

1. National reserve activities mean activities of working out and implementing national reserve plans and budget estimates; building the system of material-technical bases for management of national reserves; administering the warehousing, ex-warehousing, preservation and protection of national reserves.

2. National reserve fund means the accumulated amount from the State budget, which is uniformly managed and used by the State according to the provisions of this Ordinance and the relevant legal documents.

3. National reserve goods mean supplies and commodities on the national reserve list.

4. National reserve in cash means the reserve money amount in the national reserve fund, which is incorporated in the annual State budget estimates.

5. Administration of national reserves means activities of managing the warehousing, ex-warehousing, preservation and protection of national reserves.

6. Total national reserve means the total value of the national reserve fund.

7. Total national reserve increase means the total money amount included in the annual State budget estimates adopted by the National Assembly for the increase of the national reserve fund.

8. National reserve goods-managing ministries and branches mean the ministries, the ministerial-level agencies and the Government-attached agencies which are assigned by the Government to directly organize the management and preservation of national reserve goods.

9. National reserve units mean organizations under the national reserve goods-managing ministries or branches, which are tasked to directly manage, warehouse, ex-warehouse, preserve and protect national reserve goods.

Article 5.- Organization of national reserves

1. The organization of national reserves must ensure the State's centralized and uniform administration, with the assignment of tasks to the national reserve goods-managing ministries and branches according to the Government's regulations.

2. The system of national reserve organizations is organized at the central level and in strategic zones as well as geographical areas throughout the country in order to promptly satisfy the requirements in emergency cases, and consists of the specialized national reserve management agency under the Finance Ministry and the national reserve units under the national reserve goods-managing ministries and branches.

The specialized national reserve management agency is organized according to the professional hierarchical line-up system, consisting of a central section and regional units.

Article 6.- Principles for management and use of the national reserve fund

1. The national reserve fund must be managed in a strict, secret and safe manner; actively satisfy in time requirements in all circumstances; the national reserve fund, after ex-warehousing, must be fully and promptly compensated.

2. The national reserve fund must be used for the right purposes and in strict compliance with law provisions; it must not be used for business purposes.

Article 7.- Source for formation of the national reserve fund

The national reserve fund is formed from the State budget under the National Assembly's decisions.

Article 8.- Prohibited acts and handling of violations of legislation on national reserves

1. The following acts are prohibited:

a/ Infringing upon the national reserve fund, destroying material-technical foundations and/or national reserve goods-preserving warehouses;

b/ Obstructing national reserve activities;

c/ Making the national reserve fund warehousing or ex-warehousing ultra vires;

d/ Using the national reserve fund for wrong purposes or in a wasteful manner;

e/ Taking advantage of the warehousing, ex-warehousing, purchase, sale, preservation and transport of national reserve goods to commit embezzlement or seek personal interests;

f/ Being irresponsible or intentionally acting against the regulations on management of national reserves, thus causing damage to, or loss of, national reserve assets;

g/ Trading in, pledging, mortgaging, leasing or illegally exploiting national reserve assets;

h/ Disclosing State secrets on national reserves.

2. Those who commit acts of violating the provisions of this Ordinance and other law provisions on national reserves shall, depending on the nature and seriousness of their violations, be disciplined, administratively sanctioned or examined for penal liability. If causing damage, they must pay compensations therefor according to law provisions.

Chapter II

BUILDING OF THE NATIONAL RESERVE FUND

Article 9.- The total national reserve, the total national reserve increase

1. The total national reserve shall be increased year after year.

2. The Government shall submit to the National Assembly for decision the annual total national reserve increases according to the provisions of the State Budget Law.

Article 10.- National reserve modes

1. National reserves shall be made in goods and Vietnam dong.

2. The Prime Minister prescribes the ratio between the national reserve in goods and the national reserve in cash.

Article 11.- The list of national reserve goods and management competence

1. The goods items put in national reserves must be strategic, essential and important ones, satisfying the objectives prescribed in Article 1 of this Ordinance.

2. The Government decides on the list of national reserve goods and assigns the ministries and branches to manage the national reserve goods according to the following regulations:

a/ The Finance Ministry shall directly organize the management and preservation of national reserve goods to satisfy the requirements of ensuring national food security, salvage, rescue, emergency aid, prevention, combat and overcoming of consequences of natural disasters, fires, epidemics, stabilization of the market and the people's life;

b/ The Defense Ministry and the Public Security Ministry shall directly organize the management and preservation of national reserve goods to satisfy the defense and security requirements and tasks;

c/ The national reserve goods-managing ministries and branches, other than the ministries defined at Points a and b of this Clause, shall directly organize the management and preservation of other national reserve goods ordered by the State. The specialized national reserve management agency under the Finance Ministry shall sign contracts on hiring the national reserve units under the ministries and branches to directly organize the preservation of the national reserve goods specified at this Point.

3. The list of national reserve goods shall be annually determined together with the socio-economic development plans and the State budget estimates. Biannually and annually, the Government shall report to the National Assembly Standing Committee on the list of national reserve goods.