DECREE NO. 06/2026/ND-CP ON THE ORGANIZATION AND OPERATIONS OF THE SOCIAL POLICY BANK

DECREE

Regulations on the organization and operation of the Social Policy Bank

Pursuant to the Law on Government Organization No. 63/2025/QH15;

Pursuant to the Law on Credit Organizations No. 32/2024/QH15 amended and supplemented by Law No. 96/2025/QH15;

At the proposal of the Governor of the State Bank of Vietnam;

The Government issues this Decree to regulate the organization and operation of the Social Policy Bank.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Thông tư này quy định chi tiết khoản 4 Điều 38 Luật Thủy sản số 18/2017/QH14 đã được sửa đổi, bổ sung tại điểm c khoản 21 Điều 14 Luật số 146/2025/QH15.

This Decree regulates the organization and operation of the Social Policy Bank.

Thông tư này áp dụng đối với tổ chức, cá nhân có liên quan đến hoạt động kinh doanh đối tượng thủy sản nuôi chủ lực trên lãnh thổ Việt Nam.

a) The Social Policy Bank.

b) State management agencies, organizations, and individuals related to the implementation of this Decree.

Article 2. Name and place of business

1. Name:

a) Vietnamese name: Social Policy Bank.

Abbreviation: NHCSXH.

b) International transaction name: Vietnam Bank for Social Policies.

Abbreviation: VBSP.

2. Place of business:

a) The Social Policy Bank has its headquarters in Hanoi, the capital city.

b) The Trading Branch, Training Center, and Information Technology Center are located in Hanoi, the capital city.

c) Branches of the Social Policy Bank are established in provinces and centrally governed cities (hereinafter referred to as provincial branches of the Social Policy Bank), training facilities, and other affiliated units in some provinces and centrally governed cities.

d) Transaction offices of the Social Policy Bank under provincial branches of the Social Policy Bank (hereinafter referred to as transaction offices of the Social Policy Bank) are established in some communes, wards, and special administrative regions.

Article 3. Establishment, Operation, and State Management of the Social Policy Bank

1. The Social Policy Bank is a policy bank established by the Prime Minister, operating without profit-making objectives to implement state economic and social policies.

2. Ministries and ministerial-level agencies perform state management functions within their respective authorities over the activities of the Social Policy Bank.

Article 4. Owner and Representative of the State Owner

1. The State is the owner of the Social Policy Bank. The Government uniformly manages the performance of the duties and powers of the state owner towards the Social Policy Bank.

2. The Board of Directors is the direct representative body of the state owner at the Social Policy Bank, performing the duties and powers of the state owner as stipulated in this Decree. The Board of Directors is entrusted with the main responsibility and serves as the focal point of the state owner, performing general management functions and conducting inspections and supervision of the Social Policy Bank's operations.

Article 5. Ensuring the Operation of the Social Policy Bank

1. The Social Policy Bank receives charter capital and investment support capital from the state budget for other policy beneficiaries, interest rate subsidies for preferential credit, management fees; the Government guarantees its payment capacity; it is exempted from taxes and other state budget payments according to the law; it does not have to maintain mandatory reserves and does not need to participate in deposit insurance.

2. The Social Policy Bank has legal personality, charter capital, assets, seals, and can open settlement accounts and conduct banking services related to settlements and cash management according to the regulations of the State Bank of Vietnam and relevant laws.

3. The charter capital of the Social Policy Bank is provided by the state budget and supplemented from the state budget and other legitimate financial sources.

Article 6. Tasks and Authorities of the Social Policy Bank

1. The Social Policy Bank shall implement loans and other banking activities in accordance with this Decree and relevant laws.

2. Receive, mobilize, manage, and utilize capital and assets (if any) in accordance with the provisions of the law.

3. Implement reporting and accounting systems as prescribed in this Decree and relevant legal provisions.

4. Be subject to inspection, examination, and auditing by state management agencies authorized by law.

5. Perform other tasks assigned by the Government and the Prime Minister.

6. Organize and operate in accordance with this Decree to fulfill the tasks assigned by the Government and the Prime Minister.

Chapter II

MANAGEMENT ORGANIZATION STRUCTURE OF THE SOCIAL POLICY BANK

Section 1.

MANAGEMENT ORGANIZATION STRUCTURE

Article 7. Management Organization Structure

1. The management organization structure of the Social Policy Bank includes:

a) Board of Directors and its supporting units;

b) Branches of the Board of Directors of the Social Policy Bank at various levels;

c) Audit Committee;

d) General Director.

2. The organizational system of the Social Policy Bank is as follows:

a) Head office includes:

Board of Directors and its supporting units.

Audit Committee;

General Director, Deputy General Directors, Chief Accountant, Office, and specialized departments.

b) Trading Center, Training Center, Information Technology Center, including: Director, Deputy Director, and specialized departments.

c) Provincial level, including:

Provincial Branches of the Board of Directors of the Social Policy Bank (hereinafter referred to as the Provincial Branches of the Board of Directors of the Social Policy Bank).

Provincial Branches of the Social Policy Bank, including: Director, Deputy Director, and specialized departments.

d) Commune level, including:

Commune Branches of the Board of Directors of the Social Policy Bank (hereinafter referred to as the Commune Branches of the Board of Directors of the Social Policy Bank).

Social Policy Bank Transaction Offices, including: Director, Deputy Director, and specialized teams. Transaction Offices carry out social policy credit activities and other banking activities within the commune or inter-commune, ward or inter-ward, and special zones. The number of transaction offices is decided by the Board of Directors. Transaction Offices organize and arrange staff to conduct transactions at service points located at the People's Committee offices of the commune and other suitable locations arranged by the People's Committee of the commune.

Section 2.

BOARD OF DIRECTORS AND SUPPORTING UNITS

Article 8. Board of Directors

1. The Board of Directors consists of 12 part-time and full-time members, including: Governor of the State Bank of Vietnam as Chairman of the Board of Directors, the remaining part-time members are leaders of the following ministries and agencies: State Bank of Vietnam, Ministry of Finance, Ministry of Home Affairs, Ministry of Agriculture and Environment, Ministry of Ethnic Minorities and Religion, Government Office, President of the Vietnam Women’s Union, President of the Vietnam Veterans Association, President of the Vietnam Farmers' Union, First Secretary of the Central Youth Communist Party Committee, and one full-time member holding the position of General Director.

The specific number and composition of the Board of Directors are determined by the Prime Minister for each period based on the proposal of the Social Policy Bank Board of Directors and the opinions of related agencies.

2. The Chairman and members of the Board of Directors have a term of five years and may be reappointed.

3. At the provincial and commune levels, the Chairman of the People's Committee at the same level decides to establish the Board of Directors' Representative Branches of the Social Policy Bank:

a) At the provincial level: The Chairman of the provincial People's Committee decides to establish the Provincial Branches of the Board of Directors of the Social Policy Bank, which is headed by the Chairman or Vice-Chairman of the provincial People's Committee. The part-time members of the Provincial Branches of the Board of Directors consist of leaders of provincial departments, agencies, and organizations corresponding to Clause 1 of this Article, and one full-time member is the Director of the provincial branch of the Social Policy Bank.

b) At the commune level: The Chairman of the commune People's Committee decides to establish the Commune Branches of the Board of Directors of the Social Policy Bank, which is headed by the Chairman of the commune People's Committee. Members of the Commune Branches of the Board of Directors include: Part-time members are the Chairman of the Commune People's Council, the Head of the Cultural, Social or Economic, Infrastructure, Urban Department appointed by the Chairman of the commune People's Committee, and one full-time member is the Director or Deputy Director of the Social Policy Bank Transaction Office.

4. The Board of Directors and the Branches of the Board of Directors of the Social Policy Bank at various levels use the organizational structure and seal of the Social Policy Bank to perform their tasks.

5. Part-time members of the Board of Directors and the Branches of the Board of Directors of the Social Policy Bank at various levels receive remuneration and other benefits according to the financial management mechanism of the Social Policy Bank as prescribed by the competent authority. Part-time members of the Board of Directors and the Branches of the Board of Directors of the Social Policy Bank at various levels may use the organizational structures under their respective ministries, agencies, or organs to handle issues related to the organization and operation of the Social Policy Bank.

Article 9. Duties and Authorities of the Board of Directors

1. Submit to the Prime Minister for consideration and decision on:

a) The development strategy of the Vietnam Social Policy Bank for each period.

b) Interest rates for credit programs under the authority of the Prime Minister that the Board of Directors is responsible for submitting according to the provisions of the law.

c) Cadre work:

Appointing, reappointing, removing from office the Chairman of the Board of Directors and other members concurrently serving on the Board of Directors.

Planning, appointing, reappointing, extending term of office, transferring, rotating, accepting resignation, removing from office, retiring, dismissing, and disciplining the General Director.

2. Submit to competent state management agencies for consideration and decision based on the proposal of the General Director on:

a) Annual and phase credit plans as prescribed by law;

b) Handling risks during the course of operations.

3. The Board of Directors directly decides on:

a) Issuing documents:

Regulations on activities and working rules of: the Board of Directors and its supporting units, the Audit Board and its units, the Council Representatives at all levels of the Vietnam Social Policy Bank, the General Director.

Regulations on functions, tasks, organizational structure of units within the Vietnam Social Policy Bank system.

Regulations on cadre work, reward and punishment systems, internal control systems, and other regulations within the authority of the Board of Directors as prescribed by law.

b) Cadre work:

Deciding on evaluations of Board of Directors members, the General Director, and the Head of the Audit Board.

Deciding on planning, appointing, reappointing, extending term of office, transferring, rotating, accepting resignation, removing from office, retiring, dismissing, and disciplining Deputy General Directors and Chief Accountants based on the General Director's recommendation.

Deciding on planning, appointing, reappointing, extending term of office (position), transferring, rotating, accepting resignation, removing from office, retiring, dismissing, implementing policies and regulations for the Head of the Audit Board based on evaluation and recommendation of the Audit Board.

c) Approving labor utilization plans; wage and remuneration plans; actual wage and remuneration for employees and managers; salary, remuneration, and bonuses for Board of Directors members and the Head of the Audit Board; investment construction plans, asset procurement plans.

d) Approving quarterly, six-month, nine-month, and annual activity reports; financial statements of the Vietnam Social Policy Bank.

đ) Adhering to regular and ad hoc reporting requirements to state management agencies as prescribed.

e) Inspecting and supervising the activities of the Council Representatives, the Vietnam Social Policy Bank at all levels.

g) Establishing, dividing, splitting, merging, renaming, and ceasing operations of units and organizations directly under the Vietnam Social Policy Bank system.

h) Approving programs and projects entrusted by foreign organizations and individuals to the Vietnam Social Policy Bank to implement.

i) Other matters presented by the Audit Board, the Head of the Audit Board, and the General Director within the authority of the Board of Directors as prescribed by law.

4. Performing other duties and authorities assigned by authorized bodies.

Article 10. Working Regime of the Board of Directors

1. The Board of Directors shall convene regular quarterly meetings or specialized meetings convened and chaired by the Chairman of the Board of Directors (or authorized person). A meeting of the Board of Directors must have more than 50% of the members of the Board of Directors present. In case of necessity, the Board of Directors may convene extraordinary meetings upon proposal of the Chairman of the Board of Directors, the Head of the Supervisory Board, the General Director, or more than 50% of the members of the Board of Directors.

2. Members of the Board of Directors are responsible for attending meetings of the Board of Directors. In case of absence from a meeting, they must report to the Chairman of the Board of Directors.

The Chairman of the Board of Directors (or the authorized person chairing the meeting) may allow a member of the Board of Directors to be absent and authorize a subordinate to attend the meeting. Participants in the meeting of the Board of Directors who are not members of the Board of Directors have the right to express opinions but do not have the right to vote.

3. Meetings of the Board of Directors involving matters related to the state management functions of ministries, sectors without members participating in the Board of Directors, local authorities, economic organizations, political-social organizations, associations, other relevant organizations shall invite representatives with authority from those agencies and organizations to attend the meeting. Representatives of the invited agencies and organizations have the right to speak but do not participate in voting.

4. The Board of Directors operates under a collective working regime, deciding according to the majority principle for issues within the Board of Directors' jurisdiction. Decisions of the Board of Directors take effect when more than 50% of the members of the Board of Directors vote in favor at the meeting or submit written approval, in case of equal votes, then implement according to the opinion of the Chairman of the Board of Directors.

5. In cases where the Board of Directors does not convene or new tasks arise requiring the Board of Directors' opinion, written opinions of the Board of Directors' members shall be sought.

6. Resolutions and decisions of the Board of Directors are binding for enforcement throughout the entire Social Policy Bank system.

Article 11. Tasks and Authorities of the Chairman of the Board of Directors

1. Directs and is responsible for the activities of the Board of Directors.

2. Issuing programs and plans of activities of the Board of Directors; assigning tasks and supervising the implementation of tasks of the Board of Directors' members based on the General Director's proposals.

3. Convening and chairing meetings of the Board of Directors.

4. Representing the Board of Directors to sign or approve resolutions, decisions, documents within the Board of Directors' jurisdiction, documents submitted to competent authorities, and handling matters within the Board of Directors' tasks and authorities.

5. Cadre work:

Deciding on evaluations for Deputy General Directors, Chief Accountants.

Deciding on planning, appointing, reappointing, extending term of office, transferring, rotating, approving resignation, dismissing, retiring, terminating employment, disciplining, implementing policies for full-time members of the Supervisory Board, Heads of Internal Auditors, Deputy Heads of Internal Auditors, Auditors based on evaluation and recommendation of the Supervisory Board.

Deciding on appointing and dismissing part-time members of the Supervisory Board.

Deciding on approving the Head and members of the Advisory Board.

Deciding on planning for Provincial Branch Directors of the Social Policy Bank, Trading Departments, Training Centers, Information Technology Centers, and other affiliated organizations at the same level.

Approving for the General Director to issue decisions on appointing, reappointing, extending term of office, transferring, rotating, dismissing, approving resignation, retiring, disciplining Provincial Branch Directors of the Social Policy Bank, Trading Departments, Training Centers, Information Technology Centers, and other affiliated organizations at the same level.

6. Deciding on the implementation of independent audit of financial reports of the Social Policy Bank based on the proposal of the Head of the Supervisory Board or the General Director.

7. Delegating in writing to one member of the Board of Directors to perform the rights and duties of the Chairman of the Board of Directors as prescribed. The delegate is responsible to the Chairman of the Board of Directors and the Board of Directors for delegated tasks.

8. Deciding on policies for full-time managers of the Social Policy Bank as prescribed.

9. Performing other tasks and authorities as prescribed by law.

Article 12. Duties and powers of members of the Board of Directors

1. Perform the duties and powers of members of the Board of Directors as assigned and authorized by the Chairman of the Board of Directors and as stipulated in this Decree.

2. Comply with decisions and resolutions of the Board of Directors.

3. Report to the Board of Directors on the performance of assigned tasks when requested.

4. Participate in regular, specialized, or extraordinary meetings of the Board of Directors; discuss and vote on matters within the duties and powers of the Board of Directors.

5. Be entitled to use the machinery and seal of the Vietnam Policy Bank to perform their tasks.

6. Receive remuneration and other benefits as prescribed by the competent authority regarding the financial mechanism of the Vietnam Policy Bank.

7. Perform other duties and powers as prescribed by the Board of Directors and by law.

Article 13. Supporting Units of the Board of Directors

1. Advisory Expert Panel

a) The Advisory Expert Panel shall have the Governor of the State Bank of Vietnam as its Head and personnel appointed by participating agencies and organizations, working on a part-time basis.

b) The Advisory Expert Panel shall advise the Board of Directors directly on policies, mechanisms, and operations of the Vietnam Policy Bank, and matters within the purview of the Chairman and the Board of Directors.

c) The Head and members of the Advisory Expert Panel shall be entitled to remuneration and other benefits as prescribed.

2. Secretariat supporting the Board of Directors under the Office of the Vietnam Policy Bank, headed by the Deputy Director of the Office of the Vietnam Policy Bank.

Article 14. Duties and Powers of the Council of Representatives of the Vietnam Policy Bank at all levels

1. Organize the implementation of resolutions and decisions of the Board of Directors and the Council of Representatives of the Vietnam Policy Bank at higher levels.

2. Approve annual and phase credit plans as required or on an ad hoc basis for submission to the competent authority for approval. Advise and propose to the competent authority at the local level on the development of projects, programs, and plans to concentrate local resources for implementing social policy credit programs in the area.

3. Direct, assign, and urge the completion of credit plans in the area.

4. Coordinate with local authorities and political-social organizations at various levels to oversee and supervise entrusted activities, the operations of Savings and Loan Groups, and the activities of transaction points.

5. Study and propose to the competent authority to supplement, amend, and issue credit policies for the poor and other policy beneficiaries.

6. Members of the Council of Representatives of the Vietnam Policy Bank at all levels may use machinery under their jurisdiction to assist in advisory work for the Council of Representatives of the Vietnam Policy Bank at all levels in handling issues related to the organization and operation of the Vietnam Policy Bank.

7. Comply with reporting requirements to superiors and state management agencies as prescribed.

Article 15. Duties and Authorities of the Chairman of the Board of Directors' Representative Council at all levels of the Vietnam Social Policy Bank

1. Direct and be responsible for the activities of the Board of Directors' Representative Council; assign tasks and urge members of the Board of Directors' Representative Council to fulfill their duties.

2. Convene and chair meetings of the Board of Directors' Representative Council; represent the Board of Directors' Representative Council to sign resolutions, decisions, and other documents within the Council's authority; documents submitted to competent authorities and handle matters within the Council's duties and authorities.

3. Perform other tasks as prescribed by the Board of Directors and the law.

Section 3. 

SUPERVISORY BOARD

Article 16. Supervisory Board

1. The Supervisory Board shall have a Chairman and a minimum of five members, including a minimum of three full-time members and other members concurrently holding positions, nominated by the State Bank of Vietnam.

The number of members of the Supervisory Board during each period shall be considered and decided by the Board of Directors of the Vietnam Social Policy Bank based on the proposal of the Chairman of the Supervisory Board.

2. Full-time members of the Supervisory Board must meet the standards and conditions stipulated by the Law on Credit Organizations and relevant laws.

3. Concurrent members of the Supervisory Board shall be entitled to remuneration and other benefits as prescribed.

4. The term of office of members of the Supervisory Board is five years and may be reappointed.

Article 17. Duties and Authorities of the Supervisory Board

1. Check and supervise the implementation by the Vietnam Social Policy Bank of policies, laws, and resolutions of the Board of Directors.

2. Check and supervise financial operations, compliance with accounting systems, and internal control system activities of the Vietnam Social Policy Bank.

3. Review reports and contents seeking opinions from the Board of Directors by the General Director before submission, report to the Board of Directors, and the Chairman of the Board of Directors (except personnel work).

4. Through supervisory tasks, propose solutions to ensure safe operation of the Vietnam Social Policy Bank to the Board of Directors.

5. Develop programs and plans for supervision by the Board of Directors; establish procedures for supervision by the Board of Directors, the Board of Directors' Representative Council, the Supervisory Board, and the operational regulations of the Supervisory Board and its members.

6. Conduct evaluations of full-time members of the Supervisory Board and internal audit positions; submit to the Board of Directors for decision on personnel matters concerning full-time members of the Supervisory Board and internal audit positions as prescribed.

7. Be authorized to use the seal and resources of the Vietnam Social Policy Bank to carry out assigned tasks.

8. Have access to and provide complete, accurate, and timely information and documents related to management and operation of the Vietnam Social Policy Bank to serve the assigned duties and authorities.

9. Promptly notify the Board of Directors when discovering managers or operators engaging in illegal acts or violations of internal regulations of the Vietnam Social Policy Bank; require violators to immediately cease such acts and take corrective measures (if necessary).

10. Be entitled to attend Board of Directors meetings, meetings chaired by the General Director, regular meetings, and specialized meetings related to the performance of the Supervisory Board's tasks.

11. Receive and resolve complaints related to the Vietnam Social Policy Bank or complaints referred to the Board of Directors and the General Director for resolution within their jurisdiction.

Article 18. Duties and Authorities of the Chairman of the Supervisory Board

1. Organize the implementation of the duties and authorities of the Supervisory Board as stipulated in Article 17 of this Decree and be responsible before the Board of Directors and the law for managing the activities of the Supervisory Board.

2. Directly lead members of the Supervisory Board and the internal audit department.

3. Develop inspection and supervision procedures to be submitted to the Board of Directors; issue work plans, internal procedures of the Supervisory Board, and assign specific tasks to members of the Supervisory Board; supervise and direct the execution of assigned tasks, rights, and obligations of members of the Supervisory Board.

4. Report to the Board of Directors on the results of the Supervisory Board's operations quarterly, every six months, nine months, annually, or at any time to ensure the accuracy, truthfulness, and legality of such reports.

5. Be entitled to attend and speak at meetings of the Board of Directors but without voting rights.

6. Perform other tasks assigned by the Board of Directors.

Article 19. Internal Audit Department and Supporting Departments

1. The Supervisory Board has an internal audit department and supporting departments to perform its duties and directly under the direction of the Chairman of the Supervisory Board. Based on the proposal of the Supervisory Board, the Board of Directors establishes the internal audit department and supporting departments for the Supervisory Board.

2. Regulations on the operation of the internal audit department and supporting departments are decided by the Board of Directors.

Section 4.

GENERAL DIRECTOR

Article 20. General Director

1. The General Director is the legal representative of the Social Policy Bank; directly manages, directs, and is responsible for the activities of the Social Policy Bank.

2. The General Director is a member of the Board of Directors appointed by the Prime Minister.

3. The General Director must meet the standards and conditions prescribed by the Law on Credit Organizations.

Article 21. Duties and Authorities of the General Director

1. To implement and enforce resolutions and decisions of the Board of Directors.

2. Organize the management and operation of the Social Policy Bank.

3. Receive capital and other resources allocated by the State.

4. Issue documents regulating loan procedures; regulations and guidelines for business practices consistent with this Decree and related laws.

5. Sign agreements for cooperation with domestic political-social organizations and international organizations after obtaining approval from the Board of Directors regarding the policy.

6. Submit to the Board of Directors matters within the scope of duties and authorities prescribed in this Decree.

7. On the basis of approval by the Chairman of the Board of Directors, make decisions on appointment, reappointment, extension of term of office, transfer, rotation, acceptance of resignation, retirement, disciplinary action against branch directors of provincial-level Social Policy Banks, Trading Departments, Training Centers, Information Technology Centers, and other affiliated organizations at the same level.

8. Decide on planning, appointment, reappointment, extension of term of office, transfer, rotation, acceptance of resignation, retirement, termination of employment, and disciplinary action against the following positions:

a) Chief of Office, Deputy Chief of Office, Director of Departments, Deputy Director of specialized business departments, and leadership and management positions in units under the main headquarters;

b) Deputy Director, Head of Accounting Department, Head of Internal Audit Department at provincial-level Social Policy Bank branches, Trading Departments, Training Centers, Information Technology Centers, and other affiliated organizations.

Other positions at provincial-level Social Policy Bank branches and units under provincial-level Social Policy Banks are evaluated, planned, appointed, reappointed, extended term of office, transferred, rotated, accepted resignation, retired, terminated employment, and disciplined by the provincial-level Social Policy Bank branch director.

9. Implement personnel evaluation and policy systems for employees working under labor contracts.

10. Issue Work Regulations at the main headquarters, provincial-level Social Policy Bank branches, Social Policy Bank transaction offices, and other organizations under the Social Policy Bank after receiving approval from the Chairman of the Board of Directors.

11. Summarize and conclude activities periodically and at any time.

12. Directly manage, preserve, and develop the capital and assets of the Social Policy Bank.

13. Represent the Social Policy Bank before the law in litigation, dispute resolution, liquidation, dissolution, and international relations related to the activities of the Social Policy Bank.

14. Be subject to inspection and supervision by the Board of Directors, the Supervisory Board, and competent state management agencies as prescribed by law.

15. Report contents as required by the Board of Directors and competent state management agencies as prescribed by law.

16. Perform other tasks when authorized by competent authorities.

Article 22. Deputy General Directors, Chief Accountants, and Specialized Departments

1. Deputy General Director

a) The Deputy General Director assists the General Director in managing one or more areas of operation of the Social Policy Bank according to the assignment of the General Director and is responsible before the General Director and the law for the tasks assigned and delegated by the General Director.

b) The Deputy General Director is appointed by the Chairman of the Board of Management for a term of five years and may be reappointed.

c) The Deputy General Director must meet all standards and conditions as prescribed by the Law on Credit Organizations.

d) The number of Deputy General Directors is determined by the Board of Management based on the proposal of the General Director.

2. Chief Accountant

a) The Chief Accountant is the head of the accounting system of the Social Policy Bank, with the responsibility to organize and implement accounting work at the Social Policy Bank.

b) Under the leadership of the General Director, the Chief Accountant assists the General Director in supervising the financial affairs of the Social Policy Bank.

c) The Chief Accountant is responsible before the Board of Management, the General Director, and the law for performing the duties of Chief Accountant and other tasks as prescribed by law.

d) The Chief Accountant is appointed by the Chairman of the Board of Management for a term of five years and may be reappointed.

đ) The Chief Accountant must meet all standards and conditions as prescribed by the Law on Credit Organizations.

3. Head Office Office and Specialized Departments

a) The Head Office Office and Specialized Departments are established by the Board of Management and their organizational structure, functions, and responsibilities are defined by the Board of Management.

b) The Head Office Office and Specialized Departments have the function of advising and assisting the Board of Management and the General Director in managing and operating the affairs of the Social Policy Bank.

Article 23. Internal Control System

1. The internal control system is a set of mechanisms, policies, procedures, internal regulations, and organizational structures of the Social Policy Bank that are organized and implemented to ensure prevention, detection, and timely handling of risks.

2. The activities of the internal control system are carried out in accordance with the regulations of the State Bank of Vietnam on the internal control system of credit organizations, foreign bank branches, the Board of Management's regulations, and relevant laws.

Chapter III

ACTIVITIES OF THE SOCIAL POLICY BANK

Section 1.

SOURCES AND FUNDS RAISING

Article 24. Capital from the State Budget

1. Charter capital is provided by the state budget upon establishment and is supplemented annually corresponding to the credit growth ratio assigned by the Prime Minister.

2. Additional state budget capital during operations includes both capital for investment support to policy targets as decided by the Government or the Prime Minister under the Law on Public Investment and Official Development Assistance (ODA) funds assigned by the Government.

Article 25. Entrusted Capital, Sponsored Capital

1. Entrusted capital received to implement social policy credit, preferential loans from local authorities, economic organizations, political-social organizations, associations, other organizations, individuals within and outside the country.

2. Legal sponsored capital from voluntary non-refundable contributions of individuals, economic organizations, financial and credit organizations, political-social organizations, associations, other organizations within and outside the country as prescribed by law.

3. Loan disbursement and risk management from entrusted capital and sponsored capital are carried out according to the provisions of the entrusting party and the sponsoring party.

Article 26. Mobilized Capital and Other Sources of Capital

1. The Vietnam Social Policy Bank shall mobilize capital through the following forms:

a) Accepting deposits from organizations and individuals both within and outside the country; savings of poor people and other policy targets.

b) Deposits from state credit institutions equivalent to 2% of the balance of mobilized capital in Vietnamese dong with interest paid according to agreement. State credit institutions are not required to comply with the regulation on maintaining deposit balances at the Vietnam Social Policy Bank during the period when the State Bank of Vietnam places it under special control.

c) Issuing Vietnam Social Policy Bank bonds guaranteed by the Government in accordance with the provisions of the law.

d) Borrowing rediscount funds from the State Bank of Vietnam pursuant to the Prime Minister's decision.

đ) Borrowing from financial and credit organizations both within and outside the country.

e) Borrowing Official Development Assistance (ODA) and preferential foreign loans authorized by the Ministry of Finance to re-lend in accordance with the provisions of the law.

g) Issuing deposit certificates and other negotiable instruments.

h) Other lawful sources of capital mobilization as prescribed by law.

2. Other lawful sources of capital as prescribed by law.

Section 2.

LOANS

Article 27. Borrowers

Borrowers at the Vietnam Social Policy Bank (hereinafter referred to as borrowing customers) are organizations and individuals eligible for borrowing under the credit programs and policies issued by competent authorities.

Article 28. Purpose, Conditions for Borrowing, and Loan Procedures

1. Borrowing customers must meet the borrowing conditions and have borrowing purposes consistent with the provisions of credit programs issued by competent authorities.

2. The Vietnam Social Policy Bank shall stipulate procedures and loan formalities that ensure simplicity, clarity, and ease of implementation.

Article 29. Principles of Lending

1. The Vietnam Social Policy Bank shall lend to the correct borrowers, ensuring transparency, supervision, and monitoring in lending activities.

2. Borrowing customers shall use borrowed capital for its intended purpose, fully repay the principal and interest to the Vietnam Social Policy Bank on time.

Article 30. Methods of Lending

1. The Vietnam Social Policy Bank shall directly lend to borrowing customers or directly lend with entrustment of certain tasks in the lending process through political and social organizations based on agreements between the Vietnam Social Policy Bank and the entrusted political and social organizations.

2. The Vietnam Social Policy Bank shall delegate certain tasks in the lending process to the Management Board of Savings and Credit Groups. The operational regulations of the Savings and Credit Groups shall be implemented in accordance with the regulations of the Vietnam Social Policy Bank’s Board of Directors.

3. The Vietnam Social Policy Bank shall conduct transactions with customers at its operating headquarters or transaction points.

Article 31. Amount and Term of Lending

The amount and term of lending shall be specified according to each credit program and policy issued by competent authorities, based on the purpose of using borrowed capital, the availability of capital sources, the recovery period of capital, and the repayment capacity of the borrowing customer of the program.

Article 32. Interest Rates on Loans

1. The interest rate on loans shall be decided by the Government or the Prime Minister based on proposals from ministries or sectors responsible for implementing programs and policies, or requests from the Vietnam Social Policy Bank’s Board of Directors in accordance with the law.

2. The overdue interest rate shall be calculated at 130% of the loan interest rate or as prescribed by competent authorities for each credit program and policy.

Section 3. 

PAYMENT SERVICES, FOREIGN EXCHANGE AND FUNDS MANAGEMENT

Article 33. Opening Accounts

1. The Vietnam Social Policy Bank shall open settlement accounts at the State Bank of Vietnam and other domestic credit institutions; open deposit accounts at the National Treasury; and open foreign currency accounts abroad to serve the operations of the bank in accordance with the provisions of the law. The Vietnam Social Policy Bank Trading Center shall represent the Vietnam Social Policy Bank in opening settlement accounts at the State Bank of Vietnam Trading Center to carry out the settlement activities of the Vietnam Social Policy Bank.

2. The Vietnam Social Policy Bank shall open settlement accounts for domestic and foreign customers in accordance with the regulations of the State Bank of Vietnam and relevant laws to serve the operations of the bank.

Article 34. Payment Services, Foreign Exchange, and Cash Management

1. The Vietnam Social Policy Bank shall organize internal payments and participate in the national inter-bank payment system in accordance with the regulations of the State Bank of Vietnam.

2. The Vietnam Social Policy Bank shall provide payment services through customer accounts in accordance with the provisions of the law.

3. The Vietnam Social Policy Bank shall conduct foreign exchange activities in accordance with the provisions of the law.

4. The Vietnam Social Policy Bank shall act as agent, accept agency mandates, and provide collection and disbursement services in banking activities in accordance with the provisions of the law.

5. The Vietnam Social Policy Bank shall conduct deposit transactions at credit institutions; buy and sell securities with the State Bank of Vietnam and credit institutions. The Vietnam Social Policy Bank Trading Center is the sole representative of the Vietnam Social Policy Bank to carry out these transactions.

6. The Vietnam Social Policy Bank shall provide other banking services based on its conditions, capabilities, practical requirements, and the provisions of the law.

Chapter IV

DISSOLUTION

Article 35. Dissolution Cases

1. The Vietnam Social Policy Bank shall be dissolved when the term of operation set forth in the Prime Minister's decision on establishing the Vietnam Social Policy Bank expires without an extension granted by the Prime Minister.

2. The Prime Minister shall decide to dissolve the Vietnam Social Policy Bank based on the proposal of the Board of Directors. The dissolution procedures for the Vietnam Social Policy Bank shall be carried out in accordance with the regulations applicable to credit institutions under the Law on Credit Institutions.

Article 36. Liquidation of Assets

In the event that the Vietnam Social Policy Bank is declared dissolved, the liquidation of the bank's assets shall be conducted in accordance with the provisions of the law.

Chapter V

INFORMATION AND CONFIDENTIALITY

Article 37. Provision of Information

The Vietnam Social Policy Bank may exchange information about banking activities with other credit institutions.

Article 38. Confidentiality

1. Managers, employees of the Vietnam Social Policy Bank, and related persons shall not disclose confidential information about the bank's activities in accordance with the provisions of the law.

2. The Vietnam Social Policy Bank has the right to refuse requests from organizations and individuals for the provision of information related to customer deposits, assets, and the bank's activities, except in cases where there is a request from a competent state management agency in accordance with the law or with the customer's consent.

Chapter VI

RESPONSIBILITIES OF RELATED AUTHORITIES

Article 39. The Prime Minister of the Government

1. Decides issues related to the organization and operation of the Social Policy Bank as prescribed in this Decree.

2. Directs ministries, ministerial-level agencies, agencies under the Government, People's Committees of provinces and centrally-run cities to perform their state management functions within their respective authorities and in accordance with the law regarding the activities of the Social Policy Bank.

Article 40. Ministries, ministerial-level agencies, agencies under the Government, local authorities

1. Perform their state management functions within their respective authorities regarding the activities of the Social Policy Bank.

2. Review, study, and propose amendments, supplements, and improvements to regulatory legal documents and mechanisms and policies related to social policy credit as assigned by competent authorities.

3. Appoint representatives to participate in the Board of Directors, Advisory Board, and Council of Representatives of the Board of Directors as stipulated in this Decree.

Article 41. The State Bank of Vietnam

1. Performs its state management functions within its authority and in accordance with the law regarding the activities of the Social Policy Bank.

2. Directs the maintenance of deposit balances at the end of December of the previous year for state-owned credit institutions deposited with the Social Policy Bank.

Article 42. The Ministry of Finance

1. Performs its state management functions within its authority and in accordance with the law regarding the activities of the Social Policy Bank.

2. Leads the development and submission to competent authorities of mechanisms for handling risky debts and financial mechanisms for the Social Policy Bank.

3. Submits to competent authorities for approval the medium-term investment plan, annual plans, and additional sources of funding (if any) for the Social Policy Bank.

4. Submits to competent authorities for assignment the annual credit development investment plan of the State for the Social Policy Bank before the start of each planning year.

5. Specifies the registration requirements for the Social Policy Bank in accordance with the organizational and operational provisions of the Social Policy Bank set forth in this Decree.

Article 43. The Ministry of Agriculture and Environment

1. Performs its state management functions within its authority and in accordance with the law regarding the activities of the Social Policy Bank.

2. Submits to competent authorities for issuance of multi-dimensional poverty standards in each period consistent with economic and social development conditions in each period, serving as a basis for planning, building, and improving social policy credit mechanisms, reviewing, and identifying beneficiaries of social policy credit.

3. Directs and guides localities in organizing reviews and identifying poor households and near-poor households annually according to national multi-dimensional poverty standards of each period as a basis for implementing social policy credit programs.

Article 44. The Ministry of Home Affairs

1. Performs its state management functions within its authority and in accordance with the law regarding the activities of the Social Policy Bank.

2. Leads and coordinates with relevant agencies to implement within their authority and in accordance with the law on labor policies, salaries, and bonuses of the Social Policy Bank.

Article 45. People's Committees at all levels

1. People's Committees at all levels:

a) Annually, the provincial People's Committee implements the entrustment of local budget capital to the Social Policy Bank to implement preferential policies as decided by the Provincial People's Council.

b) Directs and organizes reviews, identifies, and approves poor households, near-poor households, and other policy beneficiaries in their jurisdiction as a basis for the Social Policy Bank to provide loans in accordance with regulations; reviews and compiles the demand for social policy credit loans in their jurisdiction.

c) Directs departments, sectors, organizations to closely coordinate with the Social Policy Bank in implementing social policy credit; directs the integration of models, programs, projects for economic and social development, agricultural extension, industrial extension, forestry extension, fishery extension, vocational training closely linked to social policy credit activities in their locality, helping poor households and other policy beneficiaries to effectively utilize loan capital; directs the consolidation and improvement of the quality of operations and the quality of social policy credit in their jurisdiction.

d) Supports material infrastructure, locations, equipment, working tools to enhance the operational capacity of the Social Policy Bank in their jurisdiction.

đ) Directs inspection and supervision work for social policy credit in their jurisdiction to ensure loans are made to the correct recipients and that loan funds are used for the intended purposes and effectively.

e) Decides on the establishment and supervises the operation of the Council of Representatives of the Board of Directors of the Social Policy Bank in their jurisdiction as stipulated in this Decree and the regulations of the Board of Directors of the Social Policy Bank.

g) Performs other tasks and powers as prescribed by law.

2. In addition to performing the tasks specified in Clause 1 of this Article, the People's Committee at the commune level directs the establishment and approves the operation of Savings and Loan Groups, coordinates in organizing and ensuring the safety of the Social Policy Bank's operations at transaction points in their jurisdiction.

Article 46. The Vietnam Social Policy Bank

1. Coordinate with ministries, ministerial-level agencies, government agencies, local authorities, the Vietnam Fatherland Front, and political-social organizations during the implementation process, promptly report difficulties and obstacles, and propose to the competent authority for consideration and resolution in accordance with regulations.

2. Report to the Prime Minister and relevant ministries and sectors when there are unusual developments that may seriously affect the operations of the Vietnam Social Policy Bank.

3. Perform the tasks and exercise the powers stipulated in this Decree and related laws.

Article 47. State-owned credit institutions

State-owned credit institutions are responsible for maintaining deposit balances at the Vietnam Social Policy Bank in accordance with this Decree.

Chapter VII

IMPLEMENTATION

Article 48. Effective Date

1. This Decree takes effect from the date of issuance.

2. Decision No. 16/2003/QD-TTg dated January 22, 2003 of the Prime Minister on approving the Charter on organization and operation of the Vietnam Social Policy Bank shall cease to be effective from the date this Decree takes effect, except for Article 12 and Chapter IV until new provisions are issued by the competent authority.

Article 49. Transitional Provisions

The registration of activities for the Vietnam Social Policy Bank will continue to be carried out according to the guidance documents of the competent authority before the date this Decree takes effect until the Ministry of Finance issues regulations pursuant to Clause 5, Article 42 of this Decree.

Article 50. Implementation organization

Ministers, heads of ministerial-level agencies, heads of government agencies, Chairmen of People's Committees of provinces and centrally governed cities, Chairmen of the Board of Directors, and General Directors of the Vietnam Social Policy Bank are responsible for implementing this Decree.