Decree No. 151/2006/ND-CP dated December 20, 2006 of the Government on the State’s investment credit and export credit

DECREE

ON THE STATE'S INVESTMENT CREDIT AND EXPORT CREDIT

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the December 16, 2002 State Budget Law;

Pursuant to the November 29, 2005 Investment Law;

Pursuant to the February 12, 1997 Law on Credit Institutions and the May 16, 2004 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;

At the proposal of the Minister of Finance,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Governing scope and subjects

1. Governing scope of the Decree:

a/ Investment credit, including investment loans, investment credit guarantees and post-investment supports;

b/ Export credit, including export loans (for exporters and importers), export credit guarantees, bid-participation guarantees and contract-performance guarantees.

2. Governing subjects:

a/ Enterprises and economic organizations which have projects entitled to investment loans, investment credit guarantees or post-investment supports (hereinafter called investors);

b/ Domestic enterprises and economic organizations having export contracts or foreign organizations importing goods which are entitled to borrow capital and enjoy export credit guarantees;

c/ The Vietnam Development Bank and other organizations and individuals involved in the process of materializing the State's investment credit and export credit.

Article 2.- Investment and export credit principles

1. Loans and guarantees shall be provided to investment projects and contracts on the import or export of goods made in Vietnam with the direct recovery of capital.

2. If all the prescribed conditions are met, one investment project may enjoy only one type of investment credit; one import or export contract may enjoy only one type of export credit.

3. When borrowing capital or requesting guarantees, investment projects, import or export contracts must have financial plans and loan repayment plans evaluated by the Vietnam Development Bank.

4. Investors, importers or exporters that borrow capital or are provided with guarantees or post-investment supports shall use borrowed capital for proper purposes; repay both loan principals and interests under the signed credit contracts; and fulfill the commitments in guarantee or post-investment support contracts as well as the provisions of this Decree.

5. The list of projects entitled to investment credit loans and the list of goods items eligible for export credit loans are promulgated by the Government.

Article 3.- Interpretation of terms

In this Decree, the terms below are construed as follows:

1. "Exporters" mean Vietnamese enterprises and economic organizations, which export goods made in Vietnam.

2. "Foreign importers" (hereinafter called importers for short) mean foreign organizations, which buy goods made in Vietnam.

3. "Lending term" means the period of time from the first capital withdrawal to the full repayment of a loan under a credit contract.

4. "Grace period" means the period of time for execution of a project or performance of an import or export contract in which the investor, the importer or the exporter needs not repay the loan principal but pay the loan interest.

5. "Debt-payment time limit" means the period of time from the first-time payment of a debt to the full payment of that debt under a credit contract.

6. "Debt-payment term" means the period of time prescribed for each payment of a debt within the debt-payment time limit.

7. "Lending" means that the Vietnam Development Bank lends capital to investors, importers or exporters for execution of investment projects or performance of import or export contracts.

8. "Guarantor" means the Vietnam Development Bank.

9. "Guaranteed" means the investor or exporter provided with guarantee by the Vietnam Development Bank.

10. "Guarantee" means an organization which grants loan to the investor or exporter or means bid solicitor for an export contract.

11. "Loan guarantee" means the Vietnam Development Bank's commitment with a capital-lending organization to pay debt for an investor, importer or exporter in case the latter cannot pay or fully pay a debt to the guarantee.

12. "Bid-participation guarantee" means the Vietnam Development Bank's commitment with a bid solicitor to secure an exporter's obligation to participate in bidding. In case the exporter has to pay fine for the violation of bidding regulations but cannot pay or fully pay it to the bid solicitor, the Vietnam Development Bank shall fulfill this obligation on behalf of the exporter.

13. "Contract-performance guarantee" means the Vietnam Development Bank's commitment with a guarantee to secure the proper and complete performance of an exporter's obligations under a contract signed with the guarantee. In case the exporter breaches the contract and has to pay compensation to the guarantee but fails to perform or fully perform this obligation, the Vietnam Development Bank shall perform this obligation on behalf of the exporter.

14. "Post-investment support" means partial interest-rate support provided by the State to investors who borrow capital from credit institutions for investment in projects after the projects have been completed and put to use and the debts have been paid.

Article 4.- State investment credit and export credit plans

1. The state investment credit and export credit plans are announced annually, including the following norms:

a/ Total state investment credit and export credit levels;

b/ Capital sources for materialization of the state investment credit and export credit;

c/ State budget allocations to offset the interest rate difference and post-investment supports.

2. The Vietnam Development Bank shall report to the Ministry of Planning and Investment, the Ministry of Finance and the Vietnam State Bank on the annual and long-term state investment credit and export credit plans for sum-up and inclusion into socio-economic development plans.

Chapter II

THE STATE'S INVESTMENT CREDIT

Section 1. INVESTMENT LOANS

Article 5.- Types of investment loan

1. Loans for domestic investment projects.

2. Loans for offshore investment projects.

Article 6.- Borrowers

Borrowers are investors who have investment projects on the list of those entitled to investment credit loans promulgated together with this Decree.

Article 7.- Lending conditions

1. Being subjects defined in Article 6 of this Decree.

2. Carrying out investment procedures in accordance with law.

3. Investors having full legal capacity and civil act capacity.

4. Investors having production or business projects or schemes, ensuring the payment of debts; having financial plans and loan-repayment plans evaluated by the Vietnam Development Bank which agrees to provide loans.

5. Investors ensuring enough capital sources for execution of projects and satisfaction of specific financial conditions of investment capital portions besides the state's investment credit loan capital.

6. Investors securing loan money in accordance with the provisions of this Decree.

7. Investors buying insurance at an insurance company lawfully operating in Vietnam for assets created from loan capital, which are subject to compulsory insurance throughout the lending term.

8. For offshore investment projects under an agreement between two governments and those under decisions of the Prime Minister, the provisions of Article 11 of this Decree must be complied with.

Article 8.- Loan capital levels

1. The loan capital level for a project shall be at most equal to 70% of the total investment capital level of that project (excluding liquidity capital).

2. The loan capital level for each project shall be decided by the Vietnam Development Bank in accordance with Clause 1 of this Article.

3. In special cases, if a project needs a loan capital level exceeding 70% of its total investment capital level (excluding liquidity capital) in order to satisfy the execution conditions, the Vietnam Development Bank shall request the Ministry of Finance to submit it to the Prime Minister for consideration and decision.

Article 9.- Lending term

1. The lending term shall be determined based on the capital recovery capability of a project and the loan-repayment capability of the investor in compatibility with the project's production and business characteristics but must not exceed 12 years.

2. For some particular projects (group-A projects on pine or rubber tree planting), which require a lending term of over 12 years in order to satisfy the execution conditions, the lending term may be 15 years at most.

3. The Vietnam Development Bank shall decide on the lending term for each project in accordance with the provisions of Clauses 1 and 2 of this Article.

Article 10.- Lending currency and interest rate

1. The lending currency is Vietnam dong. Foreign-currency loans shall be provided in a freely convertible foreign currency for a number of projects which need to import machinery and equipment and of which the investors are capable of balancing foreign currencies to repay loans.

2. The interest rate applicable to investment loans in Vietnam dong shall be equal to the interest rate applicable to the government bonds of a five-year term plus 0.5%/year.

3. For projects on the construction of socio-economic infrastructures; projects on agricultural and rural development; projects of investment in geographical areas hit by socio-economic difficulties or exceptional difficulties; projects in the areas inhabited by Khmer ethnic minority people, communes covered by Program 135, border communes covered by Program 120, alluvium communes, the Vietnam dong-lending interest rate shall be equal to that applicable to the government bonds of a five-year term.

4. The interest rate applicable to loans in freely convertible foreign currencies shall be decided by the Finance Ministry on the principle of giving preferences based on the 6-month Sibor plus a certain percentage.

5. The lending interest rate shall be determined at the time of signing a credit contract for the first time and shall be kept unchanged throughout the lending term.

6. The interest rate applicable to an overdue debt shall be equal to 150% of that applicable to undue debts as written in a credit contract.

7. The Minister of Finance shall announce the interest rate applicable to investment loans for application by the Vietnam Development Bank. This interest rate shall be announced twice a year at most.

Article 11.- Providing loans to projects under the Government's agreements and offshore investment projects under the Prime Minister's decisions

1. The lending conditions, interest rate, term and level as well as contents related to a loan for a project shall comply with the terms stated in the concerned agreement.

2. When an agreement does not specify the lending conditions, interest rate, term, level and loan security, this Decree's provisions on investment loans apply.

3. Offshore investment projects under the Prime Minister's decisions comply with this Decree's provisions on investment loans.

Section 2. POST-INVESTMENT SUPPORTS

Article 12.- Subjects entitled to post-investment supports

Subjects entitled to post-investment supports are investors having projects on the list of projects eligible for investment credit capital, including:

1. Projects of investment in socio-economic infrastructures.

2. Projects of investment in agricultural and rural development.

3. Projects of investment in areas hit by socio-economic difficulties or exceptional socio-economic difficulties; areas inhabited by Khmer ethnic minority people, communes covered by Program 135, border communes covered by Program 120 and alluvium communes.

Article 13.- Conditions for post-investment supports

1. Projects entitled to post-investment supports under the provisions of Article 12 of this Decree.

2. Projects having post-investment support contracts evaluated and signed by the Vietnam Development Bank.

3. Projects having been completed and put to use and having repaid their loans.

Article 14.- Post-investment support level

1. The post-investment support level is equal to the difference between the investment loan interest rate of credit institutions and 90% of the interest rate applicable to investment loans for subjects defined in Article 10 of this Decree.

2. The Vietnam Development Bank provides post-investment supports based on investors' debt-payment results.

Section 3. INVESTMENT CREDIT GUARANTEES

Article 15.- Subjects entitled to investment credit guarantees

Investors having projects eligible for investment credit loans under the provisions of this Decree may be provided with guarantees to borrow capital from other credit institutions if having demand therefor.

Article 16.- Guarantee conditions

1. Being subjects entitled to investment credit guarantees under the provisions of Article 15 of this Decree.

2. Satisfying all the conditions specified in Clauses 2, 3, 4, 6 and 7, Article 7 of this Decree.

Article 17.- Guarantee term

The guarantee term shall be determined in accordance with the lending term under the credit contract between an investor and a credit institution.

Article 18.- Guarantee level and charge

1. The guarantee level shall match the loan level but must not exceed the total investment capital of a project (excluding liquidity capital).

2. Investors shall be provided with guarantees free of charge.

Article 19.- Financial liabilities when investors cannot pay debts

When an investor cannot pay a debt under the signed credit contract:

1. Sixty days after the debt comes due, if the investor cannot pay it, the concerned credit institution shall send a written request to the Vietnam Development Bank for the latter to pay that debt on the investorơ's behalf.

2. When receiving the written request for payment of the overdue debt, which it has guaranteed, the Vietnam Development Bank shall pay it on the investor's behalf.

3. The investor shall acknowledge the compulsory debt and is obliged to pay it to the Vietnam Development Bank at a fining interest rate equal to 150% of the lending interest rate of the credit institution.

Chapter III

EXPORT CREDIT

Section 1. EXPORT LOANS

Article 20.- Types of export loan

1. Loans provided to exporters, before or after the goods delivery.

2. Loans provided to importers.

Article 21.- Borrowers

Exporters having contracts on the export, and importers having contracts on the import, of goods on the list of goods entitled to export credit capital promulgated together with this Decree.

Article 22.- Lending conditions

1. Being subjects entitled to borrow capital defined in Article 21 of this Decree.

2. Exporters having signed export contracts. Importers having signed import contracts with Vietnamese enterprises or economic organizations.

3. Having efficient production and business plans already evaluated by the Vietnam Development Bank which agrees to provide loans.

4. Exporters or importers having full legal capacity and civil act capacity.

5. Apart from the conditions specified in Clauses 1, 2, 3 and 4 of this Article:

a/ Exporters are required to observe this Decree's provisions on loan security; buy property insurance at an insurance company lawfully operating in Vietnam for assets created from loan capital and subject to compulsory insurance throughout the lending term;

b/ Importers need to be provided loan with guarantees by the governments or the central banks of their countries.

Article 23.- Loan capital level

1. The loan capital level shall be equal to 85% of the value of a signed import or export contract or the L/C value for a loan provided before goods delivery or the value of valid drafts for a loan provided after goods delivery.

2. The loan capital level for each case shall be decided by the Vietnam Development Bank in accordance with the provisions of Clause 1 of this Article.

Article 24.- Lending term

1. The lending term shall be determined based on the capital recovery capability suitable to the characteristics of each export contract and the loan repayment capability of the exporter or importer but must not exceed 12 months.

2. When a lending term of over 12 months is needed for an exporter to satisfy the conditions to perform an export contract, the Vietnam Development Bank shall request the Finance Ministry to consider and decide it.

Article 25.- Lending currency and interest rate

1. The lending currency is Vietnam dong (VND). Foreign-currency loans shall be provided in freely convertible foreign currencies for export contracts which require the import of raw materials, provided that exporters have foreign-currency revenue sources to pay debts.

2. Interest rates applicable to export credit loans in Vietnam dong or freely convertible foreign currencies shall be decided by the Finance Ministry on the principle of compatibility with the market interest rate.

3. The overdue debt interest rate shall be equal to 150% of the due debt interest rate under the signed credit contracts.

4. The Minister of Finance shall announce interest rates applicable to export credit loans for implementation by the Vietnam Development Bank. These interest rates shall be announced twice a year at most.

Article 26.- Capital disbursement, debt recovery

The Vietnam Development Bank shall directly disburse capital, recover debts or authorize financial and credit institutions lawfully operating in the country or overseas to disburse capital and recover debts.

Section 2. EXPORT CREDIT GUARANTEES

Article 27.- Subjects entitled to export credit guarantees

Subjects entitled to export credit guarantees are exporters that have contracts on the export of goods on the list of goods entitled to export credit loans but do not borrow the State's export credit capital.

Article 28.- Guarantee conditions

1. Being subjects entitled to guarantees defined in Article 27 of this Decree and having demand for guarantees to borrow capital from other credit institutions.

2. Having full legal capacity and civil act capacity.

3. Satisfying all the conditions specified in Clauses 2, 3, 4 and 5, Article 22 of this Decree.

Article 29.- Guarantee term

The guarantee term shall correspond the lending term under the credit contract signed between an exporter and a credit institution but shall not exceed 12 months.

Article 30.- Guarantee level and charge

1. The level of guarantee for an exporter to borrow capital shall not exceed 85% of the value of an export contract or the L/C value.

2. Exporters provided with guarantees shall pay the guarantee charge equal to 1% of the guaranteed credit balance a year.

Article 31.- The financial liability incurred when an exporter cannot pay debts shall comply with the provisions of Article 19 of this Decree.

Section 3. BID-PARTICIPATION GUARANTEE AND CONTRACT- PERFORMANCE GUARANTEE

Article 32.- Subjects entitled to guarantees

Exporters that participate in biddings or perform contracts on the export of goods on the list of goods entitled to export credit loans.

Article 33.- Guarantee conditions

1. Being subjects defined in Article 32 of this Decree, having demand for bid-participation guarantee or export contract-performance guarantee.

2. Having lawful papers evidencing the foreign party's request for bid-participation guarantee or export contract-performance guarantee.

3. Exporters provided with bid-participation guarantee or export contract-performance guarantee must have financial capability for participation in biddings or performance of export contracts evaluated and approved by the Vietnam Development Bank.

Article 34.- Guarantee term

The bid-participation guarantee or export contract-performance guarantee term shall correspond the term for performance of obligations of an exporter.

Article 35.- Guarantee level and charge

1. The guarantee level shall not exceed 3% of the bidding price for bid-participation guarantee and 15% of the value of an export contract for export contract-performance guarantee.

2. Exporters provided with guarantees shall pay the guarantee charge of 0.5% of the guarantee value a year, which, however, must not exceed VND 100 million per guarantee contract.

Article 36.- Financial liability of exporters when the Vietnam Development Bank has to perform the guarantee obligations toward foreign parties

Exporters provided with guarantees shall compulsorily acknowledge debts with regard to the money amounts the Vietnam Development Bank has paid to foreign parties and shall be subject to a fining interest rate equal to 150% of the interest rate applicable to export credit loans calculated over the acknowledged debt amounts.

Chapter IV

LOAN SECURITY, PAYMENT OF DEBTS AND HANDLING OF INVESTMENT CREDIT AND EXPORT CREDIT RISKS

Article 37.- Loan security

1. When borrowing capital or being provided with guarantee, investors may use assets created from loan capital to secure loans and guarantee. When assets created from loan capital are unqualified to secure loans or guarantee, investors shall use other lawful assets therefor, provided that the value of those assets must be at least equal to 15% of the total loan or guarantee level.

2. When borrowing capital or being provided with export credit guarantee, exporters are required to comply with current legal provisions on loan security; are exempt from mortgaging assets for bid-participation guarantee or export contract-performance guarantee.

3. Investors and exporters may not transfer, sell, lease, lend, mortgage or pledge secured assets when having not yet fully pay debts. When investors or exporters cannot pay debts or are dissolved or bankrupt, the Vietnam Development Bank may apply measures to handle secured assets in accordance with law to credit institutions in order to recover those debts.

Article 38.- Payment of debts

1. Investors, importers and exporters shall pay debts to the Vietnam Development Bank in strict compliance with the signed credit contracts.

2. Within the grace period, investors need not to pay principals but need to pay interests under signed credit contracts.

3. Ten working days after a debt comes due, if an investor, importer or exporter cannot pay the debt, the delayed principal and interest amounts shall be subject to an overdue debt interest rate under regulations.

4. When importers cannot pay or fully pay debts, the Vietnam Development Bank shall recover those debts from guaranteeing organizations of the importing countries in strict compliance with the guarantee contracts.

Article 39.- Risks and handling of risks

1. Risks to be considered for handling of investment credit and export credit debts include:

a/ Force majeure risks: natural calamities, fires, accidents, political risks or wars which directly cause damage to investors' or exporters' assets; investors or exporters are bankrupt or dissolved; investors or exporters being individuals and borrowing capital die or are missing without heirs;

b/ Financial difficulties of state enterprises must necessarily be handled upon the transformation of their ownership.

2. Risk-handling measures which may be considered for application include adjusting the debt-payment time limit, rescheduling, freezing or remitting debts (both principals and interests).

Article 40.- Classification of debts, appropriation for setting up a risk provision

1. The Vietnam Development Bank shall classify debts according to regulations of the State Bank of Vietnam.

2. The Vietnam Development Bank may set up a risk provision to handle risks incurred from the failure to pay debts of investors, importers or exporters.

3. The money amount appropriated for setting up of the risk provision shall be accounted as professional operation expenses of the Vietnam Development Bank.

4. The levels of appropriation and the use of the risk provision are provided for in the financial mechanism of the Vietnam Development Bank.

Article 41.- Competence to handle risks

1. The general director of the Vietnam Development Bank shall adjust the debt-payment time limit, debt-payment term and the value of debts to be paid in each term and reschedule debts with the total extended duration not exceeding 1/3 of the lending term specified in the first credit contract and the total capital-lending term not exceeding the maximum capital-lending term prescribed in this Decree.

2. The Minister of Finance shall decide on freezing or remission of debts for investors and exporters at the proposal of the general director of the Vietnam Development Bank.

3. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and the State Bank of Vietnam in, examining and submitting to the Prime Minister for decision cases of remission of loan principals at the proposal of the general director of the Vietnam Development Bank.

Chapter V

CAPITAL SOURCES FOR MATERIALIZATION OF THE STATE'S INVESTMENT CREDIT AND EXPORT CREDIT

Article 42.- State budget fund

1. The charter capital of the Vietnam Development Bank.

2. The state budget capital allocated for offsetting the interest rate difference and post-investment supports.

3. The state budget capital allocated for implementation of the Government's programs and targets.

Article 43.- Mobilized capital

1. Government bonds, Government-guaranteed bonds, bonds of the Vietnam Development Bank and promissory notes as well as deposit certificates, which are issued in accordance with law.

2. Capital borrowed from postal savings service companies, social insurance funds as well as domestic and foreign financial and credit institutions.

3. Other capital sources as prescribed by law.

4. The mobilization of capital in foreign currencies shall be considered on the basis of the actual capital use demand and opinions of the Ministry of Finance, the Ministry of Planning and Investment and the State Bank of Vietnam.

Chapter VI

RESPONSIBILITIES OF STATE MANAGEMENT AGENCIES, THE VIETNAM DEVELOPMENT BANK, INVESTORS, IMPORTERS AND EXPORTERS

Article 44.- The Ministry of Finance

1. To assume the prime responsibility for, and coordinate with the concerned ministries and agencies in, submitting to the Government for promulgation mechanisms and policies on the State's investment credit and export credit.

2. To guide or promulgate according to its competence mechanisms and policies on the State's investment credit and export credit for implementation by the Vietnam Development Bank; to oversee financial activities of the Vietnam Development Bank.

3. To decide according to its competence on lending interest rates, handling of risks and export loan terms of over 12 months.

4. To inspect and oversee the Vietnam Development Bank in the borrowing of capital and the payment of debts to the mobilized capital sources; the use of capital to lend investors, provide investment credit guarantees, post-investment supports, export loans, export credit guarantees, bid-participation guarantees, contract-performance guarantees, import loans or for debt recovery; to perform several tasks assigned by the Prime Minister.

5. To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and the State Bank of Vietnam in, assessing the implementation of policies on the State's investment credit and export credit and operation results of the Vietnam Development Bank and report to the Prime Minister thereon.

Article 45.- The Ministry of Planning and Investment

1. To integrate the State's investment credit and export credit plans into the annual and long-term socio-economic development plans; to submit to the Prime Minister for consideration and decision the annual plans on the State's investment credit and export credit; to coordinate with the Ministry of Finance in formulating policies on the State's investment credit and export credit.

2. To assume the prime responsibility for, and coordinate with the Ministry of Finance in, making annual state budget estimates for the State's investment credit and export credit activities.

3. To coordinate with the Ministry of Finance in inspecting operations of the Vietnam Development Bank in the borrowing of capital, the acknowledgment and payment of debts to the mobilized capital sources, in the use of capital for materialization of the State's investment credit and export credit; in handling the State's investment credit and export credit risks according to regulations.

Article 46.- The Ministry of Trade

1. To formulate and submit to the Government and the Prime Minister exports development strategies and programs in each period; to coordinate with the Finance Ministry in formulating policies on the State's investment credit and export credit.

2. To publicize widely information on export markets; to suggest solutions and implementation guidance for expansion and development of export markets for Vietnamese goods.

Article 47.- The State Bank of Vietnam

1. To perform the state management of money, foreign exchange, credit and payment related to the State's investment credit and export credit.

2. To coordinate with the Finance Ministry in formulating policies on the State's investment credit and export credit.

Article 48.- The Vietnam Development Bank

1. To organize the implementation of policies on the State's investment credit and export credit in strict accordance with this Decree.

2. To propose competent agencies to amend or supplement policies on the State's investment credit and export credit.

3. To handle risks according to its competence and take responsibility for the accuracy and transparency of proposals on the handling of risks to competent agencies for consideration and decision.

4. To recover principals and interests of investment credit and export credit debts according to regulations.

Article 49.- Within their functions and powers, ministries, ministerial-level agencies, government-attached agencies and provincial/municipal People's Committees shall:

1. Publicize development plannings, plans and orientations as well as processes, regulations, standards and econo-technical norms of branches, domains, products and territorial regions, which shall serve as bases for implementation of policies on the State's investment credit and export credit.

2 Direct, inspect and oversee investors in the execution of investment under the state regulations on investment; solve problems related to the implementation of policies on the State's investment credit and export credit.

Article 50.- Investors, importers and exporters

1. To supply the Vietnam Development Bank with accurate, sufficient and timely information and documents on capital borrowing, guarantee, post-investment support and the use of loan capital.

2. To use loan capital for proper purposes, to pay debts fully and on schedule and fulfill the commitments in contracts on credits, guarantees or post-investment supports.

3. State enterprises provided with loans or guarantees by the Vietnam Development Bank shall, upon their ownership transformation, notify in writing the Bank thereof so that the latter may handle their investment credit and export credit debts in accordance with law.

Chapter VII

REPORTING, SUPERVISION, INSPECTION AND HANDLING OF VIOLATIONS

Article 51.- Supervision, inspection and reporting

1. Investment credit and export credit activities under the provisions of this Decree shall all be subject to supervision and inspection by competent state agencies in accordance with law.

2. The supervision and inspection may be effected at each stage or at all stages of the process of construction investment, production, business and repayment of loan capital.

3. Ministers, heads of ministerial-level agencies, government-attached agencies, presidents of provincial/municipal People's Committees shall oversee and inspect the implementation of policies on the State's investment credit and export credit, which fall within their management scope.

4. Quarterly or extraordinarily, the Vietnam Development Bank shall make and send sum-up reports on the situation of investment credit and export credit to the Prime Minister and concurrently to the Finance Ministry, the Planning and Investment Ministry, the State Bank of Vietnam and the General Office of Statistics.

Article 52.- Handling of violations

1. Organizations and individuals that borrow capital, are provided with guarantees or post-investment supports but violate the provisions of this Decree, thus causing property or capital losses, shall pay compensation therefor and be handled under the provisions of law.

2. The Vietnam Development Bank shall take responsibility before law for the implementation of policies on the State's investment credit and export credit; all acts of violating the provisions of this Decree shall be handled in accordance with law.

Chapter VIII

IMPLEMENTATION PROVISIONS

Article 53.- This Decree takes effect 15 days after its publication in "CONG BAO." To annul the Government's Decree No. 106/2004/ND-CP of April 1, 2004, on the State's development investment credit and the Prime Minister's Decision No. 133/2001/QD-TTg of September 10, 2001, promulgating the Regulation on export support credit as well as relevant provisions on the State's investment credit and export credit.

Article 54.- Cases where contracts have been signed

1. Projects borrowing investment credit capital, provided with investment guarantees or post-investment supports for which contracts have been signed with the Vietnam Development Bank (former Development Assistance Fund) before the effective date of this Decree shall continue to be executed according to commitments in the signed contracts.

2. Contracts on borrowing of export credit capital, provision of export credit guarantee, bid-participation guarantee or contract-performance guarantee, which have been signed with the Vietnam Development Bank (former the Development Assistance Fund) before the effective date of this Decree, shall continue to be performed according to commitments in the signed contracts.

Article 55.- Responsibilities for guiding the implementation

The Ministry of Finance, the State Bank of Vietnam and concerned ministries and branches shall, based on their functions and competence, guide the implementation of this Decree.

Article 56.- Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal People's Committees, the chairman of the managing board and the general director the Vietnam Development Bank shall implement this Decree.

LIST

OF PROJECTS ENTITLED TO INVESTMENT CREDIT LOANS
(Promulgated together with the Governments Decree No. 151/2006/ND-CP of December 20, 2006)

LIST

OF GOODS ITEMS ENTITLED TO EXPORT CREDIT LOANS
(Promulgated together with the Governments Decree No. 151/2006/ND-CP of December 20, 2006)