National Assembly approves financial resources for defense and security industry
Báo Dân trí•27/06/2024
(Dan Tri) - The National Assembly passed the Law on Defense Industry, Security and Industrial Mobilization on the afternoon of June 27, with 464/464 delegates in favor.
The Law on Defense and Security Industry and Industrial Mobilization devotes a section to regulating resources for the defense and security industry. Accordingly, financial resources for the defense and security industry include: State budget; Enterprise financial resources including enterprise equity and other legally mobilized capital sources in accordance with the provisions of law; Sources from the Defense and Security Industry Fund and other legal funds for the defense and security industry; Other legal capital sources. The Law takes effect from July 1, 2025.
The National Assembly passed the Law on Defense Industry, Security and Industrial Mobilization (Photo: National Assembly).
Previously, Chairman of the National Assembly's Committee on National Defense and Security Le Tan Toi explained, accepted and revised the draft Law on Defense Industry, Security and Industrial Mobilization. Regarding the management of financial resources for the defense and security industry, there were opinions suggesting reviewing the regulations to make them appropriate and strict, avoiding the understanding that only prioritizing the allocation of state budget resources in the defense and security sector for defense and security production tasks... Regarding this issue, the National Assembly Standing Committee said that the draft Law has provisions of a policy nature, a general orientation to create resources for the defense and security industry. However, to avoid the understanding that the state budget allocated to the Ministry of National Defense and the Ministry of Public Security only prioritizes the defense and security industry over other tasks, this agency proposed that the National Assembly remove the phrase "of the Ministry of National Defense and the Ministry of Public Security" in Clause 1 and remove the word "Activities" in the name of the Article as in the draft Law submitted to the National Assembly for approval. In addition, there are suggestions to study and supplement regulations on the mechanism for increasing charter capital directly from the source of post-tax profits of defense industry enterprises, security industry enterprises or other legally mobilized sources to reduce pressure on the state budget or to study and supplement regulations on increasing charter capital from funds.
Chairman of the National Assembly's Defense and Security Committee Le Tan Toi (Photo: National Assembly).
According to the National Assembly Standing Committee, the draft law stipulates that after-tax profits are used to allocate funds in accordance with the law, including the National Defense and Security Industry Fund and tasks related to research and production of new and high-tech products and to offset the costs of unsuccessful research. The increase in charter capital of enterprises that are core defense industry establishments must comply with the provisions of the Law on Management and Use of State Capital Invested in Production and Business Activities at Enterprises. The policy on charter capital has also been specifically stipulated in Clause 2 of this Article. Therefore, to ensure the focus and feasibility of allocating after-tax profits, the National Assembly Standing Committee proposes that the National Assembly keep it as in the draft law. In response to the delegates' opinions, to ensure strictness and feasibility, from the practical implementation of the distribution of after-tax profits of core defense industrial establishments and core security industrial establishments, the National Assembly Standing Committee proposed that the National Assembly revise this clause as Clause 4, Article 21 of the draft law submitted to the National Assembly for approval. With the above provisions, along with the assignment of the Government to specify in detail Clause 6 of this Article, the allocation of after-tax profits will be specifically regulated, with priority order, ensuring strictness and feasibility.
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