DECREE

ON MECHANISM FOR FINANCIAL HANDLING OF VIETNAM NATIONAL OIL AND GAS GROUP’S PAYMENT OF PRICE OFFSET IN THE OFFTAKE OF NGHI SON REFINERY AND PETROCHEMICAL COMPLEX PROJECT’S PRODUCTS

Pursuant to the Law on Government Organization dated June 19, 2015; the Law on Amendments and Supplements to certain Articles of the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to the Law on State Budget dated June 25, 2015;

Pursuant to the XV^th National Assembly’s Resolution No. 42/2021/QH15 dated November 13, 2021 passed in its Second Meeting;

Upon the request of the Minister of Finance;

The Government herein promulgates the Decree on the mechanism for financial handling of Vietnam National Oil and Gas Group’s payment of price offset in the offtake of Nghi Son Refinery and Petrochemical Complex Project’s products.

Chapter I

...

...

...

Article 1. Scope of application

This Decree prescribes the procedure for financial handling or resolution of Vietnam National Oil and Gas Group (“PVN”)’s payment of the price offset in the offtake of products of Nghi Son Refinery and Petrochemical Complex Project (“NSRP Project”) under the Fuel Product Offtake Agreement ("FPOA") between PVN and Nghi Son Refinery and Petrochemical Limited Liability Company (“NSRP Company”) in compliance with paragraph 4 of the National Assembly’s Resolution No. 42/2021/QH15, including: Determination of claims and rules for the Government’s financial resolution; state budget estimation, balance sheet audit, final accounting and treatment of the differentials between revenue and input costs arising from the offtake of NSRP Project products that occurs when determining annual business results of PVN as the parent company of the latter.

Article 2. Subjects of application

1. Parent company - Vietnam National Oil and Gas Group (“PVN”).

2. NSRP Product Distribution Branch ("PVNDB”).

3. State Audit.

4. Commission for Management of State Capital at Enterprises.

5. Ministry of Finance.

6. Ministry of Industry and Trade.

...

...

...

Article 3. Interpretation

For the purposes of this Decree, terms used herein shall be construed as follows:

1. NSRP Product Distribution Branch (“PVNDB”) refers to a dependent accounting unit of the parent company, PVN, which is founded to carry out the offtake and distribution of NSRP Project’s fuel products.

2. Nghi Son Refinery And Petrochemical Complex Project (“NSRP Project”) refers to a project obtaining the investment certificate No. 262022000036 originally issued on April 14, 2008 by, or legally revised with approval from, Nghi Son Economic Zone Management Committee.

3. Nghi Son Refinery and Petrochemical Limited Liability Company (“NSRP Company”) refers to a company incorporated according to the Agreement under which a joint venture company was created through the partnership between PVN and its partners, including Idemitsu Kosan Co., Ltd; Mitsui Chemicals, INC and Kuwait Petroleum Europe B.V., on April 7, 2008.

4. NSRP fuel product offtake agreement (“FPOA”) refers to the contract entered into between PVN and NSRP Company on January 15, 2013 and appendices or other complementary arrangements (where available) enclosed herewith.

5. Service agreement refers to a contract signed between PVNDB (under PVN’s authorization) and NSRP Company dated November 13, 2017 under which PVNDB is bound to supply offtake support services to NSRP Company, and appendices or other complementary arrangements for modification or revision thereof (if any) enclosed herein.

6. Free trade agreement (“FTA”) comprises any multilateral or bilateral agreement to which Vietnam is a signatory or accedes if it is in force, and which is binding upon Vietnam.

7. LPG refers to the liquefied petroleum gas defined under the Government’s Decree on gas business.

...

...

...

Chapter II

SPECIFIC PROVISIONS

Section 1. DETERMINATION OF CLAIMS AND RULES FOR THE GOVERNMENT’S FINANCIAL RESOLUTION NEEDED FOR STATE BUDGET ESTIMATION AND FINAL ACCOUNTING

Article 4. Determination of claims for the Government's resolution action

1. The amount that PVN claims for the Government’s financial resolution is commensurate with the negative differential arising in the computation year (the selling price is lower than the offtake price as PVN has to pay the price offset in the offtake of gas, oil and LPG products of NSRP Project under FPOA terms and conditions).

2. The negative differential defined in paragraph 1 of this Article is calculated according to the following formula:

Revenue from implementing the offtake chain in the computation year (inclusive of the sums PVNDB earns from selling gas, oil and LPG products at the selling price, allowing for corresponding customs duties, or special excise duties on gasoline products (where applicable), and exclusive of VAT).

+

PVNDB’s other revenue (exclusive of VAT) and other income directly associated with implementation of the offtake chain that arise in the computation year (inclusive of PVNDB’s financial income; indemnities and bonuses that PVNDB is paid for its fulfillment or failure of contractual obligations; and income other than those mentioned above).

...

...

...

Costs and expenses incurred from implementation of the offtake chain (not yet including VAT) according to the sales volume of PVNDB’s offtake products in the computation year (including total amount that PVNDB is obligated to pay for gas, oil and LPG products to NSRP Company).

3. Basis for calculation of the revenue from implementing the offtake chain mentioned in paragraph 2 of this Article above is total revenue arising in each calendar year, starting on January 1 and ending on December 31, which is the sum of the revenue PVNDB earns from selling gas, oil and LPG products to wholesale traders or other purchasers, and the revenue PVNDB earns from supplying its services to NSRP Company.

a) Revenue from each sale of gas, oil and LPG products is calculated as follows:

Selling unit price (exclusive of taxes)

x

(1 + the lowest special preferential import tariff rate under Vietnam’s FTA commitments applied to gas, oil and LPG products as per law)

+

Market surcharges/ price adjustment factors (if any)

x

...

...

...

x

Sales volume of offtake gas, oil and LPG products

Where:

- Selling unit price (exclusive of taxes) used for finding the revenue is determined according to the selling price formula stated in the economic agreement signed between PVNDB and wholesale traders or other purchasers, and by reference to the FOB price announced by Platts Singapore (applicable to gas and oil products) or the contractual price (CP) announced by Saudi Aramco Company (applicable to LPG products).

- Where the payment for gas, oil and LPG products sold at the selling price, allowing for corresponding customs duties on these products, from the wholesale trader or other purchaser to PVNDB is greater than (>) the amount of customs duty determined according to the lowest special preferential import tariff rate under Vietnam’s FTA commitments (if any), then the revenue mentioned above will be calculated according to the amount, allowing for the corresponding customs duty, that PVNDB can be paid.

- Market surcharge/ price adjustment factor included in the selling price according to oil and gas or LPG trading practices (for gas and oil or LPG products) is determined according to the selling price formula specified in the economic agreement signed between PVNDB and a wholesale trader or other purchaser. Market surcharge/ price adjustment factor included in the selling price according to oil and gas or LPG trading practices (for gas and oil or LPG products) is determined according to the selling price formula specified in the economic agreement signed between PVNDB and a wholesale trader or other purchaser (if any).

b) Revenue from PVNDB’s supply of services to NSRP Company is determined by total revenue arising in each computation year (exclusive of VAT), starting on January 1 and ending on December 31, from its supply of services to NSRP Company under FPOA terms and conditions.

4. Cost or expense incurred from implementing the offtake chain according to PVNDB's sales volume in the computation year prescribed in paragraph 2 of this Article is determined by total costs and expenses incurred in the computation year (not including VAT), starting on January 1 and ending on December 31, including:

a) Cost of goods sold (including monetary value of goods that PVNDB is obliged to pay to NSRP Company);

...

...

...

c) Management costs;

d) Financial expenses directly associated with implementation of the takeoff chain (not including costs of interest on loans that the parent company PVN is granted to pay PVNDB in advance);

dd) Other associated costs and expenses (including gas and oil trading costs prescribed by law on gas and oil business; amounts set aside as provisions; amounts used for paying indemnities for failure to fulfill contractual obligations when implementing the offtake chain) are determined separately or arranged into cost items specified in subparagraph a, b, c and d of this paragraph (if any) in accordance with the Government’s regulations in effect.

5. Selling expenses, storage costs and other associated costs or expenses specified in subparagraph b, c, d and dd of paragraph 4 of this Article (if any) with respect to product quantities in stock on the date of termination of PVN's obligations to offset the offtake price are calculated on a basis of costs and expenses distributed according to the ratio between revenue from selling these quantities in stock and total revenue from implementing the offtake chain in the same selling year (starting on the date of PVN’s discharge of its obligations to pay the offset price of the offtake products).

6. Monetary value of goods that PVNDB is obliged to pay to NSRP Company (including the amount paid to offset the offtake price) is calculated by total value of goods arising the computation year (not including VAT) in relation to the sales volume of the offtake products in each computation year, starting on January 1 and ending on December 31. Where:

a) Monetary value of goods that PVNDB is obliged to pay to NSRP Company (including the amount paid to offset the offtake price) in each offtake stage is determined according to the following formula:

Offtake unit price (exclusive of taxes)

x

(1 + offset price level equivalent to customs duty rate of 7% applied to gas and oil products; and 5% applied to LPG products under GGU)

...

...

...

(1 + special excise duty rate applied to gasoline products (if any))

x

Sales volume of offtake products

b) The amount of price offset in each offtake stage is calculated according to the following formula:

Offtake unit price (exclusive of taxes)

x

(offset price level equivalent to customs duty rate of 7% applied to gas and oil products; and 5% applied to LPG products under GGU)

x

Sales volume of offtake products

...

...

...

d) Unit price used for calculating the monetary value of quantities in stock is determined according to the first-in first-out (FIFO) method.

dd) If the differential in the quantities actually received from NSRP Company is greater than (>) the sales volume in the computation year, such differential will be brought towards in the following year as a basis for determination of the amount claimed for the Government’s financial resolution.

7. Market surcharge/price adjustment factor arranged into the weighted mean of offtake unit prices in the computation year is less than or equal to (≤) the market surcharge/ price adjustment factor arranged into the weighted mean of selling prices in that year.

8. The loading/unloading place used for fixing the start date of PVNDB’s obligations is determined under FPOA (at any position where the offtake shipment passes the flange of the door connecting NSRP Plant with the purchaser’s tanker, fuel truck or pipeline).

9. As for LPG products, it is obligatory to seek PVN's confirmation that PVN has assumed offtake obligations to these NSRP Project products for domestic consumption purposes.

10. In the course of discharge of obligations to pay the offtake price offset to NSRP Company, where PVNDB pays NSRP Company total amount for its received offtake quantity exceeding the quantity agreed upon in the original FPOA (signed on January 15, 2013) without recourse to any price offset, and incurring interest for such transaction; or where PVNDB imports the quantity making up for the deficit occurring due to NSRP Plant’s temporary suspension, and incurring interest for such trade, revenue and costs or expenses (not including any price offset for offtake transactions) arising from the respective excess or imported quantity will be arranged into the revenue and costs or expenses arising from implementing the offtake chain as part of the formula referred to in paragraph 2 of this Article.

Article 5. Rules for the Government’s financial resolution

1. The Government shall financially handle PVN’s payment of price offsets for the products actually received from NSRP Project that arise within the maximum period of 10 years from the day on which PVN officially carries out the offtake of NSRP Project products according to the following rules:

a) Where the results of implementation of the offtake chain in the computation year (determined according to the formula specified in paragraph 2 of Article 4 and the provisions laid down in paragraph 3 through 10 of Article 4 in this Decree) incur any interest, the Government shall not take any resolution action towards offtake price offsets that PVNDB is obliged to pay to NSRP Company in proportion to the sales volume of offtake products sold in the computation year.

...

...

...

- Differential in each sale is determined as follows:

- The method for determining the maximum amount the Government agrees to pay for PVN’s price offset claim according to the differential between total price offset arising in the computation year and total amounts that wholesale traders or other purchasers are obliged to pay to PVNDB according to the formula above is applied if the lowest special preferential import tariff rate under Vietnam’s FTA commitments applied to gas, oil and LPG products as per law that is arranged into the selling price is greater than (>) 0%.. Where the amount calculated according to the regulations and the formula above is greater than (>) the amount of price offset for offtake transactions specified in subparagraph b of paragraph 6 of Article 4 in this Decree, the amount the Government agrees to pay for PVN’s price offset claim shall equal (=) the latter.

- Where the lowest special preferential import tariff rate under Vietnam’s FTA commitments applied to petrol, oil and LPG products as per law that is arranged into the selling price is 0%, the maximum amount the Government agrees to pay for PVN’s price offset claim shall be determined according to paragraph 2 of Article 4 in this Decree, but not exceeding the amount of price offset for offtake transactions specified in subparagraph b of paragraph 6 of Article 4 herein.

c) The amount the Government agrees to pay for PVN’s price offset claim as prescribed in subparagraph b of this paragraph is determined after ruling out the offtake quantity exceeding the quantity agreed upon in the original FPOA (signed on January 15, 2013; the quantity of products failing to satisfy quality requirements set out in the FPOA and national technical regulations (QCVN) of Vietnam in accordance with law.

2. In each budget year, after the National Assembly passes the central budget estimate of annual expenditures used for paying amounts that PVN claims for the Government’s financial resolution, PVN can improvise its after-tax profits on a quarterly basis to pay price offsets for offtake transactions provided that these amounts do not exceed the respective estimated expenditures.

Section 2. STATE BUDGET ESTIMATION, AUDITING AND FINAL ACCOUNTING OF THE GOVERNMENT’S FINANCIAL RESOLUTION AMOUNTS

Article 6. Estimation of state budget expenditures and recording of state budget expenditures in the balance sheet

1. PVN is the first-line budgetary unit making an estimate of the amounts claimed for the Government’s financial resolution each year (including claims for offtake quantities of products in stock brought forward from the preceding year). These estimated claims are calculated according to Article 4 and 12 and other relevant regulations laid down herein, but not exceeding the estimated amounts of annual central budget revenue from after-tax profits or profits retained for funds of the parent company PVN.

...

...

...

3. After receipt of the report from PVN's Board of Members mentioned in paragraph 2 of this Article, the Ministry of Finance shall integrate the estimated total amount of the Government's financial resolution for PVN's claims into the estimate of central budget expenditures for reporting to the Government as a basis to seek the National Assembly’s decision on approval of the state budget estimate and central budget allocations. When carrying out the estimate of the amounts of the Government’s financial resolution claimed by PVN; and recording the amounts of the Government’s financial resolution claimed by PVN as central budget revenue and expenditure (other expenditure uses), PVN shall not actually pay the state budget its after-tax profits or profits set aside for funds that are commensurate with the amounts of the Government's financial resolution paid for PVN's claims.

4. Whilst waiting for the National Assembly’s approval of the estimate of annual central budget expenditure used for paying PVN's claims on the Government’s financial resolution amounts, PVN is authorized to improvise its production and business capital to pay price offsets for offtake transactions to NSRP Company in proportion to the actual quantity of products received from NSRP Company.

Article 7. Treatment of the differentials between estimated expenditure and actual expenditure

1. Where the negative differential between the estimated total of central budget expenditures prescribed in Article 6 herein that is approved by the National Assembly and the actual total of claims for central budget expenditures arising in the computation year occurs, PVN shall be entitled to temporarily use production and business capital of the parent company PVN, and then arrange available amounts in the subsequent year’s budget estimate to make up the deficit.

2. Where the positive differential between the estimated total of central budget expenditures approved by the National Assembly and actual expenditures arising in the computation year occurs, the surplus of the estimated expenditures shall be removed when PVN pays it back to the central budget in accordance with regulations.

Article 8. State budget auditing and final accounting

1. After determining the claim for the Government’s financial resolution as per Article 4, 5, 12 and other relevant regulations laid down herein, PVNDB shall prepare its income (loss/profit) statement in the computation year as a basis to determine the amount that PVN claims for the Government’s financial resolution. Also, PVNDB shall carry forward the final amount of revenue and costs or expenses arising from implementing the offtake chain and other related activities to the parent company PVN.

2. By June 30 each year, PVN shall submit a written report to the State Audit on its claim for the Government’s financial resolution in the immediately preceding year to help in the audit work as prescribed in paragraph 3 of this Article; simultaneously, send it through to the Ministry of Finance for monitoring purposes. Documents attached to PVN's report mentioned above shall include the following:

a) Full texts of the Resolution of PVN’s Board of Members stating its approval of PVN’s claim for the Government’s financial resolution.

...

...

...

3. According to PVN’s written report stated in paragraph 2 of this Article, the State Audit shall audit PVN's claim for the Government’s financial resolution before submission of the audit report on final accounts of annual state budget revenue and expenditure to the National Assembly in accordance with the Law on State Budget, law on state budget, Article 4, 5, 12 and other regulations laid down herein.

4. Based on the State Audit’s results of the audit stated in paragraph 3 of this Article, PVN shall prepare a final account of payments commensurate with the Government's financial resolution amounts while PVN shall approve that final account for submission to the Ministry of Finance by October 1 on an annual basis in the following year in order for the Ministry of Finance to integrate it into the annual final account of state budget revenue and expenditure for the Government’s submission to the National Assembly in accordance with law on state budget.

Section 3. TREATMENT OF DIFFERENTIALS BETWEEN REVENUE AND COSTS OR EXPENSES ARISING FROM IMPLEMENTING THE OFFTAKE CHAIN AND DETERMINATION OF PVN’S BUSINESS RESULTS FOR USE IN ASSESSMENT AND RATING OF PVN’S PERFORMANCE

Article 9. Treatment of the differentials between revenue and costs or expenses arising from implementing the offtake chain on the parent company PVN's part

Based on revenue, other income, costs or expenses and business results shown in PVNDB’s income statement submitted to the parent company PVN:

1. Where revenue from implementing the offtake chain (including other revenue and other income) subject to paragraph 2 of Article 4 herein is greater than or equal to (≥) costs or expenses incurred from implementing the offtake chain as provided in paragraph 2 of Article 4 herein, all revenue and costs or expenses reported by PVNDB shall be combined into production and business revenue and costs or expenses of the parent company PVN.

2. Where the negative differential occurs when revenue from implementing the offtake chain (including other revenue, other income) prescribed in paragraph 2 of Article 4 herein is less than (<) costs or expenses incurred from implementing the offtake chain as per paragraph 2 of Article 4 herein, the parent company PVN shall record reduction in the parent company PVN's costs of sales of the offtake quantity of gas, oil and LPG products of NSRP Project, and increase in state budget revenue in proportion to negative differentials determined according to paragraph 2 of Article 4 herein to the extent that such increase does not exceed the maximum amount that the Government agrees to pay for PVN's claims referred to in paragraph 1 of Article 5 herein.

Article 10. Determination of the parent company PVN’s business results after treatment of differentials between revenue and costs or expenses arising from implementing the offtake chain

1. Where revenue from implementing the offtake chain (including other revenue and other income) is greater than or equal to (≥) costs or expenses incurred from implementing the offtake chain, all business results of the parent company PVN shall be determined according to regulations in force.

...

...

...

Chapter III

IMPLEMENTATION

Article 11. Responsibilities of Ministries, central authorities and PVN

1. PVN:

a) Ensure that the payment of the price offset to NSRP Company does not exceed the quantity of products agreed upon in the FPOA (based on the offtake quantity prescribed at the day on which FPOA was originally signed on January 15, 2013), and refuse the offtake of the products failing to satisfy quality standards stipulated in the FPOA and Vietnam’s national technical regulations prescribed in law.

b) Take responsibility for the results of negotiation and signing of offtake agreements, agreements on post-offtake consumption of products (including terms and conditions on the formula of the off-take price and the selling price) and the performance of the offtake chain, ensuring that, at the end of the period for implementation of the financial mechanism prescribed in this Decree, PVNDB does not incur accrued losses. PVNDB’s annual profits/losses serving as a basis for PVN's assessment of PVNDB specified in this subparagraph shall be determined according to the method of eliminating the losses commensurate with the maximum amount the Government agrees to pay for PVN’s claims as prescribed in subparagraph b of paragraph 1 of Article 5 herein; but recording the positive differential occurring due to the differential between market surcharges/price adjustment factors (including special excise duty (if applicable)) that wholesale traders or other purchasers are obliged to pay to PVNDB at the selling stage and the price offset for offtake transactions commensurate with market surcharges/price adjustment factors (including special excise duty) that PVNDB is obliged to pay to NSRP Company at the offtake stage in proportion to the sales volume of offtake products sold. Where the amount of the Government’s financial resolution for PVN’s claims determined according to subparagraph b of paragraph 1 of Article 5 herein is equal to (=) the price offset for offtake transaction specified in subparagraph b of paragraph 6 of Article 4 in this Decree, PVNDB’s annual profits/losses used as a basis for PVN’s assessment of PVNDB in this subparagraph shall be determined according to the method of excluding losses commensurate with the price offset for offtake transactions prescribed in subparagraph b of paragraph 6 of Article 4 herein and special excise duty (if any) arising on top of this price offset for offtake transactions.

c) Determine the amount claimed for the Government’s financial resolution for payment of the price offset in the offtake of NSRP Project’s gas, oil and LPG products under Article 4, 5 and 12; clause 1 and 2 of Article 6 herein, and carry out the final accounts of state budget expenditures commensurate with the amount of the Government’s financial resolution prescribed in paragraph 4 of Article 8 herein.

d) Determine revenue, costs or expenses and results from implementation of the offtake chain according to the provisions of Article 4 of this Decree and losses from the implementation of the offtake chain that are not treated by after-tax profits and profits retained for funds of the parent company PVN (if any) as per subparagraph b of paragraph 1 of Article 5 herein for use in tax declaration, payment and accounting activities prescribed in law on taxes, law on accounting and financial regulations of the parent company PVN.

dd) Inspect, supervise the selling price and manage costs or expenses incurred from implementing the offtake chain, market surcharges prescribed in Article 4 herein according to internal management regulations of PVN and regulatory provisions of law.

...

...

...

g) Report to the Commission for Management of State Capital at Enterprises for supervision of PVN’s improvisation of production and business capital of the parent company PVN for the price offset prescribed in paragraph 4 of Article 6 herein.

h) Report to the Commission for Management of State Capital at Enterprises and the Ministry of Industry and Trade on the Resolution of PVN’s Board of Members to seek their approval of the estimated amount claimed for the Government’s financial resolution as per paragraph 2 of Article 6 herein to serve the purposes of supervising, approving the production and business plan, and formulating the plan for supply of gas and oil products each year.

i) Make full and timely prepayments and payments of funds for implementation of the offtake chain, and settlements of price offsets if these offsets meet the regulations laid down in subparagraph a of this paragraph; address issues and problems arising each year in accordance with the FPOA and other relevant agreements.

2. Commission for Management of State Capital at Enterprises:

Supervise and inspect implementation of the offtake chain, payment of the price offset and improvisation of production and business capital for payment of price offsets by PVN and PVNDB in accordance with paragraph 4 of Article 6 and paragraph 1 of Article 7 herein.

3. Ministry of Finance:

a) Integrate PVN’s claims for the Government's financial resolution determined as per Article 4 herein into the annual central budget estimate and complete the procedures for reporting on this estimate to the agency having jurisdiction prescribed in paragraph 3 of Article 6 herein to seek their approval.

b) Combine the amounts the Government agrees to pay for PVN's claims as prescribed in paragraph 4 of Article 8 herein into the annual final accounts of state budget revenue and expenditure, submitting them to the Government to seek the National Assembly’s approval according to the audit results of the State Audit and approval of the finalization reports of PVN's Board of Members.

4. The Ministry of Industry and Trade:

...

...

...

b) Notify the day on which PVN officially carry out the offtake of products of NSRP Project according to PVN's report to the agencies and units specified in paragraph 1, 3, 4 and 5 of Article 2 herein in order for them to undertake offtake-related activities and supervise their performance in accordance with this Decree.

5. State Audit:

a) Audit the amounts that PVN claims for the Government’s financial resolution before presenting audit reports on annual final accounts of state budget revenue and expenditure to the National Assembly in accordance with paragraph 2 and 3 of Article 8 herein.

b) Audit the amounts that PVN claims for the Government’s financial resolution before presenting audit reports on annual final accounts of state budget revenue and expenditure to the National Assembly in accordance with paragraph 2 and 3 of Article 6 herein.

Article 12. Grandfather clause

Financial resolution taking place during the period from the day of PVN’s official offtake of NSRP Project product that is notified by the Ministry of Industry and Trade as provided in subparagraph b of paragraph 4 of Article 11 herein to the end of 2022 (after receipt of the National Assembly’s complementary approval of 2022 central budget estimate) shall be carried out as follows:

1. Undistributed profits earned from the results of implementation of the offtake chain that are accrued from 2018 to end of 2021 (not including the amounts of the Government’s financial resolution for PVN’s claims stated in subparagraph b of paragraph 1 of Article 5 herein) shall be used for offsetting the amounts of the Government’s financial resolution for payment of PVN claims that arise from the day on which PVN officially commence the offtake of NSRP Project products to the end of 2022.

2. Complementary transfers to the 2022 estimate of central budget expenditure on the Government’s financial resolution for payment of PVN’s claims (including the amounts actually arising from the day on which PVN officially commence the offtake of NSRP Project products to the end of 2021 and specified in the budget implementation of 2022) that are funded by after-tax profits or profits retained for funds for 2022 of the parent company PVN are as follows:

a) Complementary transfers to the 2022 estimated of central budget expenditure shall be subject to Article 4 herein and given after using undistributed profits prescribed in paragraph 1 of this Article, but not exceeding the estimated central budget revenue from after-tax profits or profits retained for funds of the parent company PVN in 2022.

...

...

...

c) Enumerating, making final accounts and auditing the final accounts of the amounts that PVN claims for the Government’s financial resolution by the State Audit during the period from the day on which PVN officially commence the offtake of NSRP Project products to end of 2022 shall be subject to Article 8 herein.

d) Include the complementary transfers to the estimate of 2022 central budget that the Government agrees to pay for PVN’s claims in the final accounts of 2022 state budget revenue and expenditure.

3. Regarding determination of products in stock

a) PVN and PVNDB shall be exempted from applying retroactive regulations under which they are required to determine values of products in stock prescribed in subparagraph d of paragraph 6 of Article 4 herein in their accounting books and financial reports during the period from the day on which PVN officially commence the offtake of NSRP Project products to the end of 2021.

b) If all changes in costs of goods sold during the period from the day on which PVN officially commence the offtake of NSRP Project products to the end of 2021 occur due to changes in the method of calculation of values of products in stock as prescribed in subparagraph d of paragraph 6 of Article 4, they shall be included as a part of business results of PVN and PVNDB in 2022 that serves the purposes of making the estimate and final accounts of 2022 state budget revenue and expenditure and shall be commensurate with the amounts the PVN claims for the Government's financial resolution.

Article 13. Implementation provisions

1. Entry into force:

a) This Decree shall enter into force as from the signature date.

b) This Decree shall be invalidated when final accounting of the amounts that PVN claims for the Government's financial resolution under law on state budget and relevant regulatory provisions is completed (including when quantities of products in stock determined on the date of discharge of price offset obligations to NSRP Company are successfully handled).

...

...

...

FOR THE GOVERNMENT
PP. THE PRIME MINISTER
THE DEPUTY PRIME MINISTER




Le Minh Khai