VietnameseDecision No. 231/1999/QD-TTg dated December 17, 1999 of the Prime Minister ratifying the organization and operation charter of the development assistance fund
ATTRIBUTE
Decision No. 231/1999/QD-TTg dated December 17, 1999 of the Prime Minister ratifying the organization and operation charter of the development assistance fund
| Issuing body: | Prime Minister | Effective date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Official number: | 231/1999/QD-TTg | Signer: | Nguyen Tan Dung |
| Type: | Decision | Expiry date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Issuing date: | 17/12/1999 | Effect status: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Fields: | Policy |
For more details, click here.
Download files here.
LuatVietnam.vn is the SOLE distributor of English translations of Official Gazette published by the Vietnam News Agency
Effect status: Known
THE PRIME MINISTER OF GOVERNMENT ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ------------ |
No: 231/1999/QD-TTg | Hanoi, December 17, 1999 |
DECISION
RATIFYING THE ORGANIZATION AND OPERATION CHARTER OF THE DEVELOPMENT ASSISTANCE FUND
THE PRIME MINISTER
Pursuant to the September 30, 1992 Law on Organization of the Government;
Pursuant to the Government’s Decree No.43/1999/ND-CP of June 29, 1999 on the State’s development investment credit;
Pursuant to the Government’s Decree No.50/1999/ND of July 8, 1999 on organization and operation of the Development Assistance Fund;
At the proposals of the Finance Minister and the chairman of the Management Board of the Development Assistance Fund,
DECIDES:
Article 1.- To ratify the Organization and Operation Charter of the Development Assistance Fund issued together with this Decision.
Article 2.- This Decision takes effect as from January 1st, 2000.
To annul Decision No.462/TTg of July 9, 1996 on ratification of the Charter of the National Investment Support Fund and Decision No.82/1998/QD-TTg of April 15, 1998 of the Prime Minister amending the Charter of the National Investment Support Fund from the date this Decision takes effect.
Article 3.- The chairman of the Management Board and the general director of the Development Assistance Fund shall have to implement this Decision.
The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People’s Committees of the provinces and centrally-run cities shall have to implement this Decision.
FOR THE PRIME MINISTER DEPUTY PRIME MINISTER Nguyen Tan Dung |
CHARTER
ON ORGANIZATION AND OPERATION OF THE DEVELOPMENT ASSISTANCE FUND
(Issued together with the Prime Minister’s Decision No. 231/1999/QD-TTg of December 17, 1999)
Article 1.- The Development Assistance Fund is established, organized and operating under Decree No.50/1999/ND-CP of July 8, 1999 of the Government on organization and operation of the Development Assistance Fund and relevant legal documents currently in force.
Its international transaction name is The Development Assistance Fund, abbreviated to DAF.
Article 2.- The Development Assistance Fund (hereafter referred to as Fund for short) is a State financial organization which implements the State’s policy of development investment support through provision of loans to and recovery of debts from investment projects; guarantees loans for investors; re-guarantees and undertakes the re-guarantee for investment funds; provides post-investment interest rate support for preferential projects of various economic sectors of a number of branches, domains, major economic programs of the State and difficult regions where investment should be encouraged. The Fund is entitled to receive the State budget capital, loan capital and foreign aid of the Government; to mobilize medium- and long-term capital of various economic sectors and foreign capital; and to organize the payment to clients having direct ties with the Fund’s operations.
The Fund shall perform a number of other tasks assigned by the Prime Minister.
Article 3.- The Fund’s operation is not for the benefit purpose, but must ensure the recovery of capital and the coverage of expenses. The Fund is exempt from taxes and State budget remittances in order to reduce the lending interest rates and guarantee charges. The Fund is subsidized by the State budget for the interest rate differences, allocated capital in support of post-investment interest rates, is subsidized for risks incurred due to objective causes when providing investment loans and/or investment credit guarantee.
Article 4.- The Fund has the legal person status, conducts concentrated accounting, has its charter capital, the accounting balance sheet, its own seal and may open accounts at the State Treasury system, domestic and foreign banks. The Fund is head-quartered in Hanoi capital. The Fund follows the financial regime submitted by the Finance Minister to the Prime Minister for decision.
Article 5.- The Fund’s organizational structure
1. The Fund’s organizational apparatus consists of: The Management Board, the Control Board and the executive body.
2. The Fund’s executive body consists of:
a) The apparatus assisting the Management Board and the general director at the head-office;
b) The Fund’s branches in provinces and centrally-run cities;
c) Its transaction offices at home and overseas.
Chapter II
OPERATING CAPITAL SOURCES
Article 6.- The Fund’s charter capital at the time of its establishment is 3,000 billion dong (three thousand billion dong) allocated by the State budget, including:
1. The charter capital already allocated by the State budget to the National Investment Support Fund.
2. The State budget allocations added annually till the charter capital reaches the prescribed level.
The change of the charter capital level shall be proposed by the Fund’s Management Board and submitted by the Finance Minister to the Prime Minister for decision.
Article 7.- Sources of mobilized and received capital of the Fund
1. Capital allocated annually by the State budget for the objectives:
a) To increase the source of investment loan capital;
b) To subsidize interest rate differences;
c) To support post-investment interest rates;
d) To fulfill the guarantee obligations (if any).
2. Capital mobilized by the Fund:
a) Borrowing from various funds: Accumulation for Foreign Debt Payment, Postal Savings and sources of temporarily idle capital of Vietnam Social Insurance;
b) Receiving sources of capital from economic organizations for investment under the State plans (including basic depreciation capital and investment funds);
c) Other sources of mobilized capital as prescribed.
3. Capital from recovery of the principals of domestic loans lent by the Fund.
4. Capital from the issuance of Government bond.
5. All the Government’s foreign loans and aid re-lent to development investment projects under the authorization of the Finance Minister (except for loans to implement credit programs of the commercial banks).
6. Capital entrusted by investment funds as well as domestic and foreign organizations for capital lending or allocation under entrusting contracts.
7. Other sources.
Chapter III
ELABORATION AND ASSIGNMENT OF PLANS
Article 8.- Plans for investment loans, post-investment interest rate support and investment credit guarantee constitute part of the State’s development investment plan, which, by the Prime Minister’s decisions, shall be assigned annually to the Fund in term of capital sources, the total capital amount, the list of Group A projects and the levels of capital to be lent thereto in forms of investment support and according to the structure of branches, fields and/or economic regions.
Article 9.- Annually, the Fund shall elaborate and report to the Ministry of Planning and Investment and the Finance Ministry the following plans:
1. The plan on the total development investment credit capital of the State in support form (investment loan, post-investment interest rate support, investment credit guarantee) and under branch, field and/or region structures; the plan on repayment of principals and interests of mobilized credit loan capital.
2. The plan on capital sources including:
a) The State budget capital allocated to the Fund’s charter capital;
b) The State budget capital allocated for the achievement of targets as defined in Clause 1, Article 7 of this Charter;
c) The recovered loan capital;
d) The capital mobilized from other sources.
3. Annually, the Fund shall have to balance the capital sources and demands for development investment credit capital of the State; the mobilization of capital from various sources at high interest rates must ensure the principle that the mobilization shall be effected only after making the fullest use of non-interest capital sources or at low interest rates. The Fund shall be subsidized for the interest rate differences and the subsidy level shall be determined on the basis of the combined interest rate of all capital sources under the plan ratified by the Government with the prescribed lending interest rates and collectible charges. This money amount shall be included in the annual State budget expenditure estimate in support of investment.
Article 10.- Within 30 days after the Prime Minister decides to assign the development investment credit plan to the Fund, the Fund shall have to notify in writing the State’s development investment credit plan to the ministries, the People’s Committees of the provinces and centrally-run cities and the concerned organizations.
Article 11.- Within 30 days after receiving the Fund’s notices, the ministries, the People’s Committees of the provinces and centrally-run cities and concerned organizations shall have to register their plans with the Fund. The supplement to and adjustment of the annual plan shall be made once in the third quarter of that year.
Article 12.- The projects to be included in the plan for investment capital loans, post-investment interest rate support and/or investment credit guarantee must fully meet the conditions prescribed in Decree No.43/1999/ND-CP of June 29, 1999 on development investment credit of the State and the Investment and Construction Management Regulation issued together with Decree No.52/1999/ND-CP of July 8, 1999 of the Government.
Chapter IV
OPERATIONS OF DEVELOPMENT ASSISTANCE FUND
Section I. INVESTMENT LOAN PROVISION
Article 13.- The subjects, conditions, lending terms and interest rates, dossiers and procedures for capital loans, loan security, loan debt repayment, adjustment of debt payment schedule shall comply with the provisions of Decree No.43/1999/ND-CP of June 29, 1999 on the State development investment credit.
Article 14.- Capital lending levels
1. The amount of capital lent to Group A projects shall comply with the Prime Minister’s decisions.
2. The amount of capital lent to Group B and C projects shall comply with the provisions of the Domestic Investment Promotion Law (amended); more concretely as follows:
a) For investment projects on removal of production establishments from cities, ecological and environmental improvement, urban sanitation, the capital lending level may be up to 70% of the total investment capital;
b) For investment projects in localities confronted with difficult socio-economic conditions and other provinces as well as cities, the capital lending level may be up to 50% of the total investment capital;
c) For investment projects in localities confronted with particularly difficult socio-economic conditions and producing goods for export, the capital lending level may be up to 70% of the total investment capital.
Article 15.- Competence to decide loan provision
1. The Fund’s general director decides or authorizes directors of the Fund’s branches to decide loan provision for projects eligible for capital borrowing as stipulated in Decree No.43/1999/ND-CP of June 29, 1999 on the State development investment credit and in this Charter.
2. Projects which go beyond the provisions of Decree No.43/1999/ND-CP of June 29, 1999 on the State development investment credit and the provisions of this Charter, the Fund�s Management Board shall report them to the Prime Minister for consideration and decision.
Article 16.- Risks and handling risks
1. Projects which borrow the State’s development investment credit capital and have been hit with risks due to objective causes shall be handled as follows:
a) If due to changes in the State policies or abnormal fluctuation of domestic and foreign market prices beyond anticipation in the feasibility projects which make the investors meet with difficulties in repaying their loan debts, they shall be considered for debt extension, loan interest exemption or reduction, debt freezing;
b) If due to natural calamities, fire or unexpected accidents, which cause property losses with certification by competent State bodies, the investors are unable to pay their debts, the investors shall have to transfer the entire insurance indemnity amounts (if any) to the Fund; the remainder shall be considered for partial or full debt remission. Where they are still capable of paying their debts, Point (a) of this Clause shall apply.
2. The risk coverage amount defined in Clause 1, this article, shall be taken from the Fund’s risk reserve fund. The risk reserve fund is calculated being equal to 2% of the total annual loan interest and accounted into the professional expenses of the Fund. Where the risk reserve fund is not enough to offset the risks, the Fund’s Management Board shall report it to the Finance Minister for further report to the Prime Minister for consideration and decision.
3. Competence to handle risks:
a) The Prime Minister shall decide debt freezing or remission for projects which borrow the State’s development investment credit capital, at the proposals of the Fund’s Management Board and the Finance Minister;
b) The Fund’s Management Board shall decide the loan interest exemption or reduction for projects which borrow the State�s development investment credit capital, at the proposal of the Fund’s general director;
c) The Fund’s general director shall decide debt extension for projects which borrow the State’s development investment credit capital. The maximum extension duration is equal to 1/3 of the debt payment duration inscribed in the credit contract.
Article 17.- The Fund may entrust credit institutions to provide loans and recover debts with regard to a number of projects of subjects eligible to borrow the Fund’s capital through entrusting contacts between the Fund and the credit institutions. The entrusted credit institutions are entitled to service charges calculated on loan debit balance, excluding the overdue debt balance and the frozen debt balance under the decisions of the competent authorities. The service charge levels shall be agreed upon and inscribed in the entrusting contracts.
Article 18.- The Fund may take the entrustment to provide loans, recover debts and/or allocate investment capital to programs and/or projects from domestic and foreign organizations, and investment funds through entrustment-taking contracts between the Fund and the entrusting organizations. The Fund shall be entitled to service charges calculated on the loan debt balance, excluding overdue debt balance and frozen debt balance by decisions of the competent authorities. The service charge levels shall be agreed upon and inscribed in the entrusting contracts.
Section II. POST-INVESTMENT INTEREST RATE SUPPORT
Article 19.- The subjects, scope and conditions for post-investment interest rate support and the order and procedures therefor shall comply with the provisions of Decree No.43/1999/ND-CP of June 29, 1999 on the State development investment credit.
Article 20.- The source of capital for post-investment interest rate support shall be included in the development investment expenditure estimate of the annual State budget; if at the end of the year, it is not yet used, it shall continue to be used for post-investment interest rate support according to the signed contracts.
Article 21.- The Fund shall be allocated capital by the State budget for post-investment interest rate support according to the tempo of allocation of interest rate support money to investors.
The Fund shall have to make the final account settlement with the Finance Ministry regarding the post-investment interest rate support amounts actually received and actually allocated to investors.
Section III. INVESTMENT CREDIT GUARANTEE
Article 22.- The guarantee subjects and conditions, the guarantee duration and the dossiers of application for guarantee shall comply with the provisions of Decree No.43/1999/ND-CP of June 29, 1999 on the State development investment credit.
Article 23.- The guarantee levels.
1. The guarantee capital level for Group A projects shall comply with the Prime Minister’s decisions.
2. The guarantee capital levels for Group B and C projects shall comply with the provisions of the Domestic Investment Promotion Law (amended). Concretely as follows:
a) Projects on investment in areas confronted with difficult socio-economic conditions are entitled to the guarantee level of up to 70% of the loan for investment;
b) Projects on investment in areas confronted with particularly difficult socio-economic conditions are entitled to the guarantee level of up to 80% of the loan for investment;
c) Other investment projects are entitled to the guarantee level of up to 50% of the loan for investment.
For areas meeting with difficult or particularly difficult socio-economic conditions, the provisions of the Government’s Decree No.51/1999/ND-CP of July 8, 1999 detailing the implementation of the Domestic Investment Promotion Law (amended) shall apply.
Article 24.- The competence to decide the investment credit guarantee
1. The Fund’s general director shall decide or authorize the directors of the Fund’s branches to decide the guarantee for projects satisfying the guarantee conditions as prescribed by Decree No.43/1999/ND-CP of June 29, 1999 on the State development investment credit and the provisions of this Charter.
2. For projects which go beyond the provisions of Decree No.43/1999/ND-CP of June 29, 1999 on the State development investment credit and the provisions of this Charter, the Fund’s Management Board shall report them to the Prime Minister for consideration and decision.
Article 25.- The guaranteed investors shall have to pay the Fund a sum of guarantee charge equal to 0.5%/ year of the guaranteed money amount. If the guaranteed investors delay the payment of such charge to the Fund, they shall be subject to a fine for late payment, equal to 1%/month of the late paid charge amount. The investors may use the following sources to pay for the guarantee charge:
a) For investment projects on production expansion, renovation of technologies and equipment, the investors may use the lawful capital sources of the enterprises to pay for the guarantee charge;
b) For investment projects on establishment of new enterprises, the guarantee charges shall be calculated in the total investment of the projects.
Article 26.- Annually, the Fund may deduct 5% of the State’s total development investment credit capital (excluding re-lent ODA capital) as reserve to pay to credit institutions when the guaranteed investors fail to pay their debts on time. If by the year-end such reserve capital amount is not used up, it shall be transferred into the source of lending capital of the following year. Where the reserve capital amount is not enough to fulfill the guaranteed obligation, the Fund’s Management Board shall report such to the Finance Minister for further report to the Prime Minister for decision.
Article 27.- The total annual credit guarantee amount of the Fund is at most five times the guarantee reserve source. Where the guarantee exceed the above-prescribed level, it must be permitted by the Prime Minister.
Article 28.- Re-guarantee and taking re-guarantee
1. The Fund shall provide re-guarantee and take re-guarantee for investment funds with regard to projects borrowing development investment capital.
2. The levels of re-guarantee provided and taken shall be agreed upon between the Fund and the investment funds.
3. The capital sources for taking re-guarantee and the total taken re-guarantee amount shall be calculated in the guarantee capital sources and the total guarantee amount of the Fund.
Chapter V
RIGHTS AND OBLIGATIONS OF THE DEVELOPMENT ASSISTANCE FUND
Section I. RIGHTS OF THE DEVELOPMENT ASSISTANCE FUND
Article 29.- The Fund is entitled to manage and use the capital, land, property and other resources assigned by the State according to the provisions of law in order to achieve the objectives and fulfill the tasks assigned by the State.
Article 30.- Organizing the management and administration of the Fund
1. To organize a managerial and executive apparatus suited to the objectives and tasks assigned by the State.
2. To set up branches and/or transaction bureaus at home and abroad according to the provisions of law.
3. To be entitled to recruit, hire, employ, train, promote, raise wages for, officials and employees within the Fund’s system. To pay wages, bonuses, allowances and other benefits to the laborers according to the provisions of the Labor Code and other provisions of law.
4. To be entitled to cooperate with foreign countries and/or international organizations involved in the operations of the Fund. To decide the sending of officials and employees of the Fund abroad for working missions, study, survey tours. For the chairman of the Management Board and the general director, such must be permitted by the Prime Minister. Overseas trips of deputy general director(s) and other titles in the assisting apparatus shall be decided by the general director. For the chairman and other members of the Control Board, it shall be decided by the chairman of the Management Board.
Article 31.- Organizing the work of accounting, financial settlement and management of the Fund.
1. To organize the accounting work according to the Ordinance on Statistics and Accounting and other provisions of law.
2. To open accounts for customers and effect the payment transactions related to the Fund’s operations.
3. To conduct treasury transactions within the system and provide treasury services for customers.
4. To organize the internal payment and join the banks’ payment system according to the current regulations.
5. To effect the financial revenue and expenditure, set up and use various funds according to the financial regulations promulgated by the Prime Minister and the guidance of the Ministry of Finance.
Article 32.- The Fund’s rights towards investors
1. To assess the financial plans and debt payment plans of investment projects which borrow the development investment credit capital of the State.
2. To refuse and propose to the levels competent to decide the investment the provision of loan, the post-investment interest rate support and/or the investment credit guarantee for projects which are ineligible for the development investment support of the State and inefficient and which fail to meet the conditions as stipulated by the Government for the development investment credit of the State.
3. To request investors to supply information on the production, business, financial and credit situation of the enterprises. To be entitled to inspect the implementation of projects and matters related to the management and use of the State’s development investment support capital. If detecting that investors breach the credit contracts, the interest rate support contracts and/or the guarantee contracts, the Fund is entitled to refuse or suspend the loan provision, cancel contracts, recover loan capital and at the same time report them to the agencies competent to decide the investment and concerned bodies for handling measures according to law.
4. To initiate lawsuit to the competent authorities for settlement according to law or to lodge complaints according to the provisions of law against organizations and/or individuals that breach the economic contracts and commitments with the Fund.
5. To handle risks and settle loan security properties according to the Government’s regulations on the State’s development investment credit.
Article 33.- The Fund is entitled to refuse all requests of any individuals or organizations to supply resources not prescribed by law, except for voluntary contributions for humanitarian and public- interest purposes.
Section II. OBLIGATIONS OF THE DEVELOPMENT ASSISTANCE FUND
Article 34.- Obligation to mobilize capital, receive capital and use resources
1. The Fund is obliged to mobilize medium- and long-term capital, receive the State capital (including both the domestic and overseas capital) in order to implement the State’s policy of development investment support.
2. To use for the right purposes and with efficiency all capital sources of the Fund, land, property and other resources assigned to the Fund by the State for attainment of the objectives and fulfillment of tasks assigned by the State.
Article 35.- Obligation to manage and run the operations of the Fund
1. To strictly observe the State’s laws and other regulations related to the Fund’s operation.
2. To work out the development strategy, five-year and annual plans in conformity with the objectives and tasks assigned by the State.
3. To sign and perform economic contracts with various partners (including domestic and foreign partners).
4. To apply scientific and technical advances to the improvement of the managerial mode with a view to raising the quality and efficiency of the Fund’s operations.
5. To fulfill all obligations towards the laborers according to the provisions of the Labor Code.
6. To observe the State’s regulations on the protection of natural resources, environment, national defense and security.
7. To observe the regime of statistical, accounting and periodical reports as prescribed by the State and take responsibility for the accuracy of such reports.
8. To abide by the inspection regulations of the Finance Ministry and competent State bodies as prescribed by law.
Article 36.- The disclosure of information on the operations, financial inspection reports, auditing reports and financial reports of the Fund shall comply with the regulations of the Government.
Article 37.- The Fund’s obligations towards the investors.
1. To provide investment loans and recover debts, provide post-investment interest rate support and guarantee for investors to borrow capital in strict accordance with the provisions of Decree No.43/1999/ND-CP of June 29, 1999 on the State development investment credit and the provisions of this Charter; to take responsibility before the investors for the transactions performed by the Fund.
2. The Fund shall have to fulfill its commitment to provide loan capital, post-investment interest rate support and investment credit guarantee for investors; credit institutions undertaking the entrusted loan provision and entrusting the Fund to allocate or provide loans, or being re-guaranteed by the Fund for investment credit; to keep secret figures and creates favorable conditions for customers’ transactions with the Fund according to provisions of law.
Chapter VI
DEVELOPMENT ASSISTANCE FUND MANAGEMENT AND ADMINISTRATION ORGANIZATION
Article 38.- The Fund’s managerial and executive organization
1. The Fund Management Board.
2. The Control Board.
3. The Executive Body.
Article 39.- Tasks and powers of the Fund Management Board
1. To submit to the Prime Minister for approval the supplements and amendments to the Charter, operation policy and mechanism of the Fund and matters related to the State’ development investment credit beyond its competence.
2. To promulgate regulations on assessment of financial plans and debt repayment plans of projects using the State’s development investment credit capital, the regulations on the provision of investment loans, post-investment interest rate support, the regulations on investment credit guarantee, re-guarantee, re-guarantee taking, regulations on other professional operations of the Fund; the regulations on organization and operation of the Fund Management Board.
3. To consider and approve the operation orientation, capital mobilization plans, investment loan provision, post-investment interest rate support, investment credit guarantee; the Fund’s financial plans and final account settlement reports submitted by the general director.
4. To decide the provision of investment loans and investment credit guarantee for projects with the capital-borrowing term of over 10 years; to decide loan interest exemption or reduction for investment capital-borrowing projects subject to force majeure risks.
5. To consider and approve the Fund’s general director’s proposals on organization and personnel, payroll; establishment and dissolution of functional bureaus or departments, branches, transaction offices; appointment and dismissal of heads and deputy-heads of functional bureaus or departments, deputy-directors of branches and transaction offices.
6. To receive State-owned capital assigned to the Fund by the Finance Ministry.
7. To approve the activity program of the Control Board, to examine the Control Board’s reports on control results and financial settlement evaluation; to decide the construction investment in Group B and C projects of the Fund’s system.
8. To oversee and inspect the operation administering bodies in the implementation of the Government’s regulations on development investment credit of the State, the Charter of the Fund and decisions of its Management Board.
9. To consider and settle complaints of organizations and individuals, which are related to the Fund’s operations. Where complaints are beyond its competence, they must be reported to the Prime Minister for consideration and settlement.
10. To be entitled to use the Development Assistance Fund’s seal for the performance of its tasks and exercise of its power.
11. To take responsibility before the Prime Minister and the Finance Minister for its decisions.
Article 40.- The working regime of the Fund Management Board
1. The Fund Management Board works according to the collective regime, meeting regularly once every three months to consider and decide matters falling within its tasks and powers.
2. The Management Board holds irregular meetings to settle urgent issues, to be convened by its chairman at the request of the general director, the chairman of the Control Board or the majority of the members of the Management Board.
3. The Fund Management Board’s meetings must be attended at least by 3 of its 5 members under the chairmanship or its chairman of deputy-chairman (if the chairman is absent). The Fund Management Board shall decide issues according to the majority of its members; where the number of votes is split equal, the party with the vote of the person in the chair at the meeting shall be decisive. The contents and conclusions of all meetings of the Fund Management Board must be recorded in minutes and sent to all of its members.
4. The Management Board shall prescribes the working regulations and assign tasks to its members.
Article 41.- The Management Board has an assisting body and may use the executive apparatus of the Fund to perform its tasks. The Management Board’s working facilities and operation funding shall be calculated in the operation expenditure of the Fund. Its full-time members shall be salaried and entitled to allowance and/or subsidy regimes under the Prime Minister’s decisions stipulating the titles, criteria, salary grades, payroll and allowance as well as subsidy regimes of the Fund. The part-time members shall enjoy public-duty allowances and other prescribed benefits like members of the Management Boards of State enterprises of special grade.
Article 42.- The Control Board
1. The Fund’s Control Board shall consist of from 3 to 5 full-time members (excluding its chairman and deputy-chairman). Members of the Control Board must not be the wife or husband, parents, children and/or brothers and sisters of the general director, deputy-general director(s), chief accountant; must be experts knowledgeable about the fields of accounting finance, credit, investment, guarantee as well as about law; have the working seniority and experience in specialized fields for not less than 5 years; have no previous criminal records or incidents regarding offenses related to economic activities.
The deputy-chairman and members of the Control Board shall be appointed and dismissed by the chairman of the Fund Management Board at the proposal of the chairman of the Control Board. The chairman, deputy-chairman and members of the Control Board shall be salaried and entitled to allowance and subsidy regimes according to regulations on titles, criteria, grades, salary scales as well as the Fund’s allowance and subsidy regimes.
2. The Control Board is answerable before the Fund Management Board for the control of the entire operations of the Fund, having the following tasks and powers:
a) To inspect and supervise the observance of the guidelines, policies, regimes and professional regulations on the Fund’s operation with a view to ensuring the better implementation of the State’s policy on development investment support, raising the efficiency of the Fund’s activities, ensuring the safety for the properties of the State, the Fund and customers; to report to the Fund Management Board and competent persons on the inspection and supervision results and propose handling measures;
b) To carry out work independently under the programs already approved by the Fund Management Board;
c) To present its report and proposals on the control results, report on examination of financial settlement to the Management Board;
d) To consider and submit to the Management Board for settlement complaints of organizations and/or individuals related to the Fund’s operations;
e) The Control Board chairman may attend meetings of the Management Board, make comments on matters discussed by the Management Board but shall not be entitled to vote;
f) The Control Board chairman may use the internal inspection and control system as well as the working facilities of the Fund to perform its tasks. The Control Board’s operation funding shall be calculated in the Fund’s operation expenditure.
Article 43.- Executive body
1. The Fund has the general director, deputy-general directors who assist the general director, and specialized and professional bureaus and departments.
2. The general director is the legal person representative of the Fund, being answerable before the Prime Minister, the Management Board and before law for the entire operations of the Fund.
3. The general director shall have the following tasks and powers:
a) To organize, run and manage activities of the Fund in strict accordance with the Government’s regulations on development investment credit of the State, the Fund’s Charter and decisions of the Management Board;
b) To promulgate documents on professional guidance of the Fund;
c) To report to the Management Board for decision the construction investment in Group B and C projects of the Fund’s system. To assign responsibilities to investors of projects of the Fund’s systems;
d) To decide the establishment and dissolution of professional bureaus or departments, branches and transaction offices; the appointment and dismissal of heads and deputy-heads of bureaus or departments under the Fund’s head-office, the directors and deputy-directors of branches and the chief accountant after obtaining the consent of the Management Board; the appointment and dismissal of heads of bureaus of branches at the proposal of the branch directors;
e) To periodically report on the situation of implementation of the plans for mobilization and reception of investment capital sources, loan provision, debt recovery; the post-investment interest rate support; guarantee, re-guarantee, collection of charges for guaranteeing and professional operations of the Fund to the Management Board, the concerned ministries and branches and to the Prime Minister;
f) To represent the Fund in its international relations related to activities of the Fund;
g) To decide the payroll, wages and other regimes of the Fund after they are approved by the Management Board;
h) To manage the properties and operation capital and take responsibility to ensure the capital reimbursement, develop the Fund’s capital.
Article 44.- The Fund’s executive apparatus
1. The Fund’s executive apparatus at the central level is composed of a number of specialized and professional bureaus and departments.
2. The Development Assistance funds in localities are the Fund’s branches in the provinces and centrally-run cities. Each branch has a director, a number of deputy-directors and specialized and professional bureaus. The functions and powers of the bureaus and departments at the central office and of branches in the provinces and centrally-run cities shall be stipulated by the general director.
3. The overseas transaction offices shall comply with the Prime Minister’s decisions.
4. The appointment or dismissal of deputy-heads of bureaus at the branches shall be decided by the branch directors based on the approval of the general director.
Article 45.- The general director is entitled to decide the application of measures ultra vires in case of emergency (natural disasters, enemy danger, fires, incidents) and bear responsibility for such decisions; and at the same time must immediately report to the Management Board and the competent State bodies for further settlement.
Chapter VII
THE DEVELOPMENT ASSISTANCE FUND’S RELATIONS WITH STATE BODIES, LOCAL ADMINISTRATION AND CONCERNED ORGANIZATIONS
Article 46.- The Fund’s relations with the Government and the Prime Minister
1. To observe law, strictly abide by the Government’s regulations on development investment credit of the State and the organization and operation of the Development Assistance Fund.
2. To submit to the Prime Minister for approval the supplements and amendments to the Charter, policies and mechanism on operation of the Fund and matters on the State’s development investment credit which fall beyond competence.
3. To direct the implementation of the annual State plans on development investment credit, assigned by the Prime Minister to the Fund, including plans on mobilization and reception of capital sources for loan provisions, post-investment interest rate support, investment credit guarantee and implement other tasks assigned by the Prime Minister.
4. To materialize the planning and strategy on the Fund’s development in the State’s overall planning and strategy on socio-economic development.
5. To abide by the regulations on the establishment, splitting, merger and dissolution of specialized and professional bureaus and departments, branches and transaction bureaus; policies on organization and personnel; the financial and credit regime as well as regimes on accounting and statistics as prescribed by law.
6. To be subject to the control and inspection of the observance of law, guidelines, policies and regimes of the State at the Fund.
7. To be entitled to manage and use capital, properties, land and other resources assigned to the Fund by the State for the performance of tasks assigned by the Government and to ensure the capital reimbursement and develop such resources.
8. To be entitled to compensation for risk-related damage and other regimes as prescribed by the Government.
Article 47.- The Fund’s relations with the Finance Minister
1. To be subject to the supervision of the Finance Minister over the Fund’s activities.
2. To invite the Finance Minister to attend meetings of the Management Board. To observe the regime of regular and irregular report to the Finance Minister on: the resolutions of the Management Boards, the situation of implementation of the State plan for development investment credit and other tasks assigned to the Fund by the Prime Minister; the control report of the Control Board; the financial settlement reports, recommendations and proposals on solution of difficulties and problems in the financial activities of the Fund.
3. The Finance Minister may request the Fund’s Management Board, general director and Control Board chairman to send reports explaining other relevant matters when necessary.
Article 48.- The Fund’s relations with the Finance Ministry
1. To observe the financial and accounting regimes, organize accountancy and accounting.
2. To be subject to the financial control and inspection by the Finance Ministry.
3. To report to the Finance Ministry for consideration and submission to the Prime Minister for approval the supplements and amendments to the Fund’s Regulation on Financial Management.
4. To report to the Finance Ministry the State budget estimate allocated annually to the Fund (including the allocation of Charter capital, interest rate support, interest rate difference subsidies) and other sources of capital assigned to the Fund by the State for carrying out the State plans on development investment credit.
5. To receive and manage sources of State capital assigned or entrusted to the Fund by the Finance Ministry for sub-lending and recovery of loan debts for the State budget.
6. To report to the Finance Ministry for consideration, supplement and financial support when the Fund meets with risks.
Article 49.- The Fund’s relation with the Ministry of Planning and Investment
1. To report to the Ministry of Planning and Investment on capital source plans, the total development investment credit capital of the State in forms of support (provision of investment loans, post-investment interest rate support, investment credit guarantee and according branch, field and region structure so that the Ministry of Planning and Investment synthesizes and reports them to the Prime Minister for assignment of annual plans on development investment credit to the Fund.
2. To observe the regime of regularly reporting to the Ministry of Planning and Investment on the situation of fulfilling the development investment credit plan norms assigned to the Fund by the State.
Article 50.- The Fund’s relations with the State Bank of Vietnam
1. To be subject to the inspection and supervision by the State Bank over the implementation of monetary policies, foreign exchange management and payment.
2. The State Bank shall coordinate with the Fund in directing the credit institutions to undertake the loan provision entrusted by the Fund; provide loans for projects guaranteed and provided with post-investment interest rate support by the Fund.
Article 51.- The Fund’s relations with the Government’s Commission for Organization and Personnel
1. To be subject to the inspection and supervision by the Government’s Commission for Organization and Personnel over the implementation of the Prime Minister’s decisions on appointment and dismissal, commendation and discipline of Management Board members, Control Board chairman, general director and deputy-general directors.
2. To strictly observe the regime and policy on personnel management and training under the guidance of the Government Commission for Organization and personnel.
Article 52.- The Fund’s relations with the Ministry of Labor, War Invalids and Social Affairs
1. To submit to the inspection and supervision by the Ministry of Labor, War Invalids and Social Affairs over the implementation of the Prime Minister’s decisions on wage and allowance regimes for the Fund’s officials and employees.
2. To strictly observe the policies and regimes on labor, wages and allowances under the guidance of the Ministry of Labor, War Invalids and Social Affairs.
3. To observe the regime of reporting to the Ministry of Labor, War Invalids and Social Affairs on the implementation of labor, wage and allowance regimes and policies as prescribed.
Article 53.- The Fund is subject to the inspection and supervision by ministries and other specialized branches according to the provisions of law.
1. To fulfill the relevant techno-economic norms.
2. To abide by the regulations on environmental protection.
3. To participate in the assessment of investment projects under the strategies and planning for branch or regional development.
4. To abide by the regulations on external relations.
5. To ensure the interests for and fulfill the obligations towards the laborers according to the provisions of law.
6. The Fund is subject to the inspection and supervision by ministries and branches according to their respective functions prescribed by law.
Article 54.- The Fund is subject to the State management by the local administration in the observance of administrative regulations and the fulfillment of obligations towards the People’s Councils and the People’s Committees according to the provision of law.
Article 55.- The Fund’s relations with credit institutions and financial organizations
1. According to the principle of voluntariness, equality and mutual benefits on the basis of contracts.
2. To entrust credit institutions and/or financial organizations to provide loans and recover debts, to act as agents to receive entrusted loan capital and enjoy commissions; to provide or undertake re-guarantee for investment funds.
3. To cooperate, help and support each other for development through the application of scientific and technical advances and professional management.
Article 56.- The Fund’s relations with international organizations, states, non-governmental organizations and individuals at home and abroad
The Fund may directly negotiate and conclude contracts on loan provisions, reception of capital for entrusted allocation or provision of development investment loans, reception of financial support, personnel training, participation in activities in support of development investment of branches, trades and regions meeting with difficulties and enjoying investment privileges under the Government’s regulations on the principles of voluntariness, cooperation and mutual benefits in accordance with the provisions of Vietnamese laws and international practices.
Chapter VIII
ACCOUNTING, REVENUE, FUND ESTABLISHMENT
Article 57.- The Fund shall organize the work of accounting, settlement and treasury in strict accordance with the State regulations and its Regulation on financial management approved by the Prime Minister.
Article 58.- The Fund’s fiscal year commences on January 1st and ends on December 31st of the calendar year.
Article 59.- Annually, the Fund has to draw up plans on financial revenue and expenditure on the basis of the financial regimes prescribed by the State for the Fund and submits them to its Management Board for approval and report to the Finance Ministry.
Article 60.- The Fund may use the temporarily idle capital for investment in credit bills, bonds of the Government, for loan provision in support of investment projects funded by the State budget and temporarily running short of capital, provision of loan capital for initial production with regard to investment projects entitled to borrow the Fund’s capital.
The total capital amount used for lending under this Article shall not exceed 20% of the total temporarily idle capital of the Fund.
Article 61.- The financial result of the Development Assistance Fund is the difference between its total revenue and total expenditure.
1. The difference of the Fund’s revenue and expenditure, after the payment of fines for violations of law provisions, shall be distributed as follows:
a) Deduction for setting up operational risks reserve fund;
b) Deduction for setting up development investment fund;
c) Deduction for setting up severance allowance reserve fund;
d) Deduction for setting up reward and welfare funds according to the State’s current regulations for State enterprises;
After the deduction for setting up the above funds, the remainder, if any, shall be supplemented to the development investment fund. The deduction for establishment, management and use of the above funds shall comply with the Fund’s Regulation on Financial Management approved by the Prime Minister.
2. Where the revenue is smaller than the expenditure, the Management Board shall consider and report such to the Finance Ministry for settlement according to competence.
3. In order to create favorable conditions for the Fund to operate in the first 5 years after its establishment, the Fund may spend according to the financial plans approved by the Management Board and report it to the Finance Ministry. The Fund’s financial plans are drawn up on the basis of the management charge enjoyed by the Fund at the level of 0.2%/month of the average foreign credit capital debt balance. Where the revenue is not enough to cover the expenditure according to plans, the Fund shall report such to the Finance Ministry for settlement according to competence.
Article 62.- At the year-end, the Development Assistance Fund shall make report on financial revenue-expenditure settlement and submit it to the Management Board for approval and further submission to the Finance Ministry for consideration and examination according its function as a State body in charge of the financial management.
Chapter IX
IMPLEMENTATION PROVISIONS
Article 63.- This Charter takes effect as from January 1st, 2000.
The amendment and supplement to the Charter on organization and operation of the Fund shall be submitted by the Management Board to the Prime Minister for approval.
The Management Board chairman and the general director of the Development Assistance Fund shall have to organize the implementation of this Charter
FOR THE PRIME MINISTER DEPUTY PRIME MINISTER Nguyen Tan Dung |
Processing, please wait...
LuatVietnam.vn is the SOLE distributor of English translations of Official Gazette published by the Vietnam News Agency
VIETNAMESE DOCUMENTS
Decision 231/1999/QĐ-TTg DOC (Word)This utility is available to subscribers only. Please log in to a subscriber account to download. Don’t have an account? Register here
ENGLISH DOCUMENTS
Others
Decision 231/1999/QĐ-TTg DOC (Word)This utility is available to subscribers only. Please log in to a subscriber account to download. Don’t have an account? Register here
* Note: To view documents downloaded from LuatVietnam.vn, please install DOC, DOCX and PDF file readers
For further support, please call 19006192
