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Nguyễn Văn Ngự

Hanoi, January 9, 2020

I have the honour to refer to the recent discussions held between the representatives of the Governnent of Japan and of the Government of the Socialist Republic of Viet Nam (hereinafter referred to as "the Recipient") concerning Japanese economic cooperation to be extended with a view to promoting the economic and social development of the Socialist Republic of Viet Nam, and to propose on behalf of the Government "of Japan the following understanding:

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

Mr. Mai Tien DUNG

of the Office of the Government

(2) The sole purpose of the Account is to receive the payment in Japanese Yen by the Government of Japan referred to in paragraph 4 as well as to make payments necessary for the purchase of the Products and/or the Services, and such other payment as may be agreed upon between the authorities concerned of the two Governments.

5. (1) The Recipient shall take necessary measures:

(b) to ensure that customs duties, internal taxes and other fiscal levies which may be imposed in the country of the Recipient with respect to the payment carried out for and the Income accruing from the supply of the Products and/or the Services be exempted or be borne by its designated authority and shall not be covered by the Grant;

(d) to present to the Government of Japan a report prepared in a written form acceptable to the Government of Japan on the transactions on the Account together with copies of contracts, vouchers and other documents concerning the relevant transactions without delay when the Grant and its accrued interest are completely used for the purchase of the Products and/or the Services and for the payment of the fees referred to in sub-paragraph (1) of paragraph 2, or upon request by the Government of Japan;

(f) to ensure that the Products and/or the Services be utilized, in principle, by end-users including the Recipient itself, for non-commercial purposes;

(h) to accord the Japanese physical persons and/or physical persons of third countries, whose services may be required in connection with the supply of the Products and/or the Services such facilities as may be necessary for their entry into the country of the Recipient and stay therein for the performance of their work;

(j) to bear all the expenses, other than those covered by the Grant and its accrued interest, necessary for the implementation of the Programme; and

(2) While ensuring fair treatment of sources of information, the Recipient shall provide the Government of Japan with necessary information, including information on corrupt practice, related to the Grant and its accrued interest.

(4) The Products and/or the Services shall not be exported or re-exported from the country of the Recipient.

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

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

Agreed Minutes on Procedural Details

(1) The grant referred to in paragraph 1 of the Exchange of Notes (hereinafter referred to as "the Grant") and its accrued interest shall be used for the purchase of the Products and/or the Services as well as for such fees necessary for the implementation of the Economic and Social Development Programme (hereinafter referred to as "the Programme").

The Recipient shall, therefore, conclude an employment contract, within three months after the date of entry into force of the Exchange of Notes, with Crown Agents Japan Limited(CA) (hereinafter referred to as "the Agent") to act on behalf of the Recipient in accordance with the Scope of the Agent's Services as set forth in Appendix II.

(4) The contracts for the purchase of the Products and/or the Services shall be concluded in Japanese Yen between the Agent and Japanese nationals, unless otherwise agreed upon between the authorities concerned of the two Governments (The term "Japanese nationals" in the present Agreed Minutes on Procedural Details means Japanese physical persons or Japanese juridical persons controlled by Japanese physical persons and registered in Japan.).

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

(1) After the date of entry into force of the Exchange of Notes, the two Governments shall appoint their representatives who will be members of a consultative committee (hereinafter referred to as "the Committee"), the role of which shall be to discuss any matter that may arise from or in connection with the Exchange of Notes. After the approval of the employment contract referred to in sub-paragraph (3) of paragraph 2 above, the Agent shall appoint its representative who will participate in the Committee meetings as an adviser.

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

4. Disbursement Procedure

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

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

(4) When the total of the remaining amount in the account of the Agent (hereinafter referred to as "the Remaining Amount") is less than three per cent (3%) of the Grant and its accrued interest, the Recipient may request the Agent to reimburse the Remaining Amount to the Recipient for payments which have already been made by the Recipient for the procurement of the Products and/or the Services and have not been covered by the Grant and its accrued interest, provided that such payments have been made on or after the date of entry Into force of the Exchange of Notes. in this case, the eligible source countries of the said Products and/or the Services may be all countries and areas except the Socialist Republic of Viet Nam, notwithstanding the provisions of Appendix I.

(5) With respect to (a) of sub-paragraph (1) of paragraph 5 of the Exchange of Notes, no further disbursement shall be made after the period mentioned in the said sub-paragraph expires, unless otherwise agreed between the authorities concerned of the two Governments.

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

a. Products and/or Services:

c. Marine Insurance:

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

Address:

(Country where the supplier is incorporated and registered)

Name:

Appendix IV

Certificate of Eligible Procurement for the Remaining Amount

(Reimbursement Procedure)

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

Appendix IV

Certificate of Eligible Procurement for the Remaining Amount

(Reimbursement Procedure)

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

1.

2.

3.

4.

5.

6.

7.

8.

9.

Trans- action

Purchaser

Supplier (Name)

Nationality of Supplier

Products and/or Services

Origin

Date of Payment

Amount of Payment

Method of Procurement

2.

4.

 .

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

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

Appendix V

Terms of Reference of the Committee

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

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

Record of Discussions

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

(a) necessary information includes information on corrupt practice related to the Grant; and

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