Pursuant to the Government's Decree No.451 2003IND-CP of May 9,2003 defining the functions, tasks, powers and organizational structure of the Ministry of Home Affairs;

Pursuant to Article 2 of the Government's Decree No. 7912003IND-CP of July 7, 2003 promulgating the Regulation on exercise of democracy in communes;

The Ministry of Home Affairs hereby guides the implementation of a number of articles and clauses in the Regulation on exercise of democracy in communes and applicable to wards, district townships as follows:

Part One

GENERAL GUIDANCE ON IMPLEMENTATION OF A NUMBER OF ARTICLES AND CLAUSES IN THE REGULATION ON EXERCISE OF DEMOCRACY IN COMMUNES

Chapter II

1. Point b, Clause 1, Article 5

The law provisions on dossiers and administrative procedures falling under the settling competence of the commune-level administrations, which are related to people.

2. Clause 3, Article 5

The land-use plannings and plans, including those of districts, provinces or the central

Government, which are related to the life of local population, must be sent by the superior administrations to communes and the communelevel administrations have the responsibility to inform the people thereof.

Chapter III

3. Clause 4, Article 7

Setting up Boards for supervising projects built with people's contributions

a) Competence to set up:

+ For communes' projects- The presidents of the commune People's Committees shall assume the prime responsibility for, and coordinate with the presidents of the commune Fatherland Front Committees in, setting up project- supervising boards, each comprising 5-7 members, including:

- Representatives of villages, elected by people or the commune People's Inspection Board member appointed by the commune People's Committee or representatives of the Fatherland Front Committee and other mass organizations in the commune, appointed by the commune Fatherland Front Committee.

+ For villages' projects- The village chiefs shall assume the prime responsibility for, and coordinate with the heads of the working boards of the Fatherland Front Committees in, setting up projectsupervising boards after having reported thereon to, and got the consents of, the commune People's Committees. Such a board shall consist of 3-5 members.

b) Requirements on members of the commune- or village project- supervising boards

The members are inhabitants of villages or communes where exist the projects, who are nominated by people at village meetings and voted for by over 50% of the number of households or household representatives being voters at such meetings; have zeal, responsibility, knowledge about construction techniques, materials and accounting; have the capability to supervise construction quality and examine and compare settlement, revenue and expenditure balancesupervising board members must not be members of the Steering Boards for construction of projects.

c) Tasks of village or commune projectsupervising boards:

+ To work out operation regulations for submission to the commune People's Committees for decision.

+ To organize the performance of supervising tasks strictly according to operation regulations, covering: the comprehensive supervision of all jobs of mobilizing, managing and using people's contributions for investment in the construction of projects; supervision of pre-acceptance tests, handover and settlement of projects strictly according to regulation and purposes in order to efficiently implement the projects; the responsibility to detect and notify in time to competent authorities for handling all acts of violating regulations in the course of organizing the construction of projects.

d) The project-supervising boards shall automatically dissolve when the projects are preacceptance tested and put to use and the warranty period has expired and at the same time the settlement of projects has been completed and the results thereof are made public.

e) For projects of districts, provinces or the central Government, which are directly related to, and affect, the local people's life, before the construction thereof, the levels owning the projects should discuss with the People's Committees in order to coordinate the implementation. The commune People's Committees shall appoint their people to monitor and promptly report thereon when necessary, contributing to ensuring the project quality and maintaining environmental safety for local population.

4. Article 9

Modes of implementing things to be decided directly by people.

a) egarcling participants to meetings: Depending on specific conditions of each village, after consulting with the head of the Front Committee's working board and consented by the secretary of the Party cell, the village chiefs shall decide on one of the three compositions of the meeting to be participated by: The entire voters; household masters; or voters representing households in the villages.

b) On making minutes of meetings: The village chiefs recommend secretaries of the meetings, who must be voted for by more than 50% of the participants before performing their tasks. The secretaries make minutes of the meetings, inscribing clearly: the composition of invitees, the number of invitees to the meetings, the number of participants representing in percentage (of the number of invitees); the meeting agenda; voting resufts.

c) Forms of gathering opinions: To be decided by the participants in the meetings, depending on the purposes, contents of the issues on which opinions should be gathered. It form of secret ballot is used to gather opinions of households, such can be carried out as follow:

The opinion-gathering cards must be signed at their backs by the village chiefs. The cards must be clearly inscribed with matters to be commented, the pro- or con-opinions of households must be reflected on their votes.

The meetings shall elect vote-counting teams, each comprising 3-5 persons who shall elect the team leaders. The vote-counting teams shall distribute, gather and count votes, make records on vote counting and announce the vote-counting results right at the meetings.

d) Regarding the validity of resolutions. A resolution shall be valid only when it is voted for by more than 50% of the household masters or voters representing households or the entire voters invited to attend the meetings. In cases where it is approved by less than 50%, another meeting should be organized. Where it is unable to organize another meeting, immediately after the meeting, cards should be distributed to eligible persons (household masters or household-representing voters) who were invited but did to attend the meetings (if any) in order to gather their opinions. Then, the pro-opinions of participants in the meetings shall be added with the pro-opinions expressed in the opinion-gathering cards; if it is approved by more than 50% of the representatives of households in the village, the commune People's Committee shall issue a decision to recognize it.

Chapter IV

5. Clause 7, Article 10

The commune-level administrations have the

responsibility to put out for discussion or comments by people the undertakings and plans on ground clearance compensations, resettlement, and implement in strict accordance with law provisions the following specific contents: plannings; compensation prices for each land category, each land position; the scheme on compensation for each household; plans, location, time and conditions for resettlement, infrastructural construction.

Chapter V

6. Clause 4, Article 13

a) Posts to be elected by the commune People's Council, including:

- Chairman and vice-chairman of the commune People's Council;

- President and vice-president of the commune People's Committee;

- Member of the commune People's Committee.

b) The organization of vote of confidence on posts elected by the commune People's Councils: Under Article 65 of the Law on Organization of the People's Councils and the People's Committees. Then the commune administrations shall notify the results of confidence vote to people.

7. Clause 3, Article 14

a) Key posts under Decree No.79/2003/ND-CP of July 7, 2003 include:

- Chairman of the commune People's Council.

- President of the commune People's Committee.

b) Organization of implementation: To comply with the guidance of the Central Committee of Vietnam Fatherland Front.

Chapter VI

BUILDING OF VILLAGE POPULATION COMMUNITY

8. Point b, Clause 2, Article 17

To comply with the guidance of the Vietnam Fatherland Front Central Committee and the Ministry of Home Affairs.

Part Two

GUIDING THE APPLICATION OF THE REGULATION ON EXERCISE OF DEMOCRACY

IN COMMUNES TO WARDS, DISTRICT TOWNSHIPS

Communes, wards and district townships are grassroots administrative units of the same level, of which district townships and wards constitute a form of urban administrative unit- However, besides wards in the hearts of cities or provincial capitals, which bear the development characters of a comprehensive urban center, there still exist new wards formed from communes in the process of urbanization, which are characterized by the mixture of urbanity and rurality, and at the same time in many district townships and a number of wards, there still exist a section of population engaged in agricultural production. Therefore, to suit the practical characters of wards and district townships, the Ministry of Home Affairs guide the application of the Regulation on exercise of democracy in communes to wards and district townships as follows:

Specifying Article 5

Contents of information to be supplied

The ward or district township administrations have the responsibility to notify in time and publicly the people of the following principal things:

1. The State's undertakings, policies and laws, which are directly related to the rights and interests of people in wards or district townships, including:

a) The resolutions of the People's Councils, decisions of the People's Committees of wards or district townships and of the superior levels, which are related to the localities;

b) The law provisions on administrative procedures, the settlement of matters related to people, which fall under the jurisdiction of wards, district townships;

c) The regulations of the State and the local administrations on the payers, collection levels of assorted taxes, charges, fees and other obligations for the people under the current law provisions;

2. Long-term and annual socio-economic development plans of wards, district townships;

3. Land-use plannings, plans; detailed construction plannings; land assignment and allocation; management and use of land funds in wards, district townships;

4. Annual estimates and settlement of budgets of wards, district townships;

5. Estimation and settlement of revenues and expenditures orassorted funds, programs, projects, amounts contributed by people for construction of infrastructure, public-utility facilities of wards, district townships, population groups and the implementation results;

6. Programs, projects invested or financially supported by the State, organizations and/or individuals directly for wards, district townships;

7. Undertakings, plans on capital borrowing for production development, hunger elimination and poverty reduction;

8. The adjustment of administrative boundaries of wards, district townships and the relevant administrative units;

9. Results of inspection, examination and settlement of negative phenomena, corruption committed by officials in wards, district townships, population groups;

10. Cultural and social activities, social evil prevention and combat, maintenance of social security, order and safety of wards, district townships;

11. The preliminary and final reviews of activities of the People's Councils, the People's Committees of wards or district townships;

12. The selection through discussion of poor households entitled to borrow capital for production development and the construction of gratitude houses; the implementation of policies towards families with meritorious services to the revolution, martyrs' families, war invalids, diseased army men, that are presented with gratitude houses, savings books, medical insurance cards;

13. The selection results, priority order and implementation of works under programs or projects of the State, organizations and individuals directly investing in, or providing financial assistance to, wards, district townships;

14. The regulations on urban management (such as house and land management,construction management, traffic order and safety, water drainage, garbage collection and treatmentenvironmental sanitation, civil status and household registration management ... );

15. Ward or district township administrations and relevant units must notify at least 15 days in advance the people of works to be done in the wards or district townships, which affect the life and activities of people: Building, repairing power supply networks, roads, water drainage, telephone lines....

16. Other works which the administrations deem it necessary to notify and the people request to be notified thereof.

II. Form of information supply

To comply with Article 6 of the Regulation on exercise of democracy in communes.

Ill. Specifying Article 7

Contents to be discussed and decided on directly by people

People in wards, district townships and population groups shall directly discuss and decide on the following major things:

1. Undertakings, plans, contribution levels for construction, renovation, expansion of roads, alleys, spots for entertainment, recreation and cultural activities.

2. Elaboration of conventions on urban civilized lifestyle, maintenance of social order and security, sanitation, environmental protection, accident and social vice prevention and combat, the election of People's Inspection Board members.

3. Internal affairs of the population communities,population groups, in compliance with current law provisions.

4. Measures to realize the regulations of the administrations at all levels on urban management.

5. The establishment of boards for supervision of construction projects financed with people's contributions: To comply with the section on implementation guidance for communes (Clause 4, Article 7, Part One of this Circular).

IV. Implementation modes: To comply with the provisions of Article 9 of the Regulation on exercise of democracy in communes and the guidance in this Circular.

V. Specifying Article 10

Things the ward/district township administrations must introduce to people for discussion or comments before they are decided on (or submitted to competent authorities for decision shall include:

1 . Draft resolutions on socio-economic development, security and defense of the ward/ district township People's Councils.

2. Draft plannings, long-term and annual plans on socio-economic development of wards, district townships; schemes on branch and craft development, job creation for laborers.

3. Draft schemes on delimitation and adjustment of administrative boundaries of wards, district townships, the establishment of population groups.

4. Undertakings and schemes on ground clearance compensations, resettlement time limits, construction of infrastructures in wards, district townships.

5. Detailed plannings on construction within administrative land boundaries of wards, district townships.

6. Draft plans on deployment of national target programs in wards, district townships.

7 Other things which the ward/district township administrations deem necessary.

V1. Modes of implementation of things to be discussed or commented by people before they are decided by the ward/district township administrations:

To comply with Article 11 of the Regulation on exercise of democracy in communes.

V11. Specifying Article 12

Things to be supervised and inspected by people in wards, district township shall include.

1. Activities and results of implementation of resolutions of the People's Councils; activities and results of implementation of decisions and directives of the People's Committees of wards or district townships,

2. Activities and moral qualities of the People's Council deputies, members of ward/district township People's Committees and officials and public employees working and living in wards or district townships;

3. The settlement of complaints, denunciations of citizens in the localities;

4. Ward/district township budget estimates and settlement and the revenues and expenditures related to people's contributions;

5. The course of organizing the implementation of projects, the results of pre-acceptance tests and settlement of projects constructed with people's contributions; programs and projects directly invested in wards or district township by the State, organizations and/or individuals and the State's projects deployed in wards, district townships;

6. Land management and use; management of elaboration of detailed plannings in wards, district townships,

7. Results of inspection, examination and settlement of negative phenomena and corruption cases involving ward/district township officials;

8. The implementation of regimes and policies towards to social-policy families and othersubjects (lonely elders, disabled people ... );

9. Supervision of activities of agencies and units stationing in localities in the observance of law and regulations on urban management via ward/district township People's Inspection Boards in coordination with People's Inspection Boards of the above-mentioned agencies and units.

Vill. Modes of implementation of things to be supervised and inspected by people

To comply with the provisions of Articles 13 and 14 of the Regulation on exercise of democracy in communes and the detailed guidance in this Circular.

IX. Building population group communities

To comply with Decision No.13/2002/QD-BNV of December 6, 2002 of the Minister of Home Affairs on the promulgation of the Regulation on organization and operation of villages and population groups as well as the guiding documents of the Vietnam Fatherland Front Central Committee.

Part Three

IMPLEMENTATION ORGANIZATION

1. This Circular replaces Circular No. 03/1998/ TT-TCCP of July 6, 1998 of the Government Commission for Organization and Personnel (now the Ministry of Home Affairs) guiding the application of the Regulation on exercise of democracy in communes to wards and district townships, and takes implementation effect 15 days after its publication in the Official Gazette.

2. The presidents of the People's Committees of the provinces and centrally-run cities shall direct and implementation, examination and constant urging of, and annual reporting on the results of, realization of the Regulation on exercise of democracy in communes, wards, district townships to the Ministry of Home Affairs (attached with appendices on general data under the guidance of the Central Steering Board for implementation of the Democracy Regulation).

3. On the basis of the provisions of the Regulation on exercise of democracy in communes and this guiding Circular, the provincial-level People's Councils shall elaborate specific provisions suitable to the practical situation of each type of ward, district township. If any difficulties and problems arise in the course of implementation, the provincial/municipal People's Committees are requested to send their opinions to the Ministry of Home Affairs for study and settlement.

Minister of Home Affairs