Circular No. 08/2020/TT-BKHĐT guiding the receipt of sponsorship, contribution, and agency for the Small and Medium Enterprise Development Fund

CIRCULAR

Guidelines on receiving sponsorship, contributions, and accepting mandates for the Small and Medium Enterprise Development Fund

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Pursuant to the Law on Supporting Small and Medium Enterprises;

Pursuant to Decree No. 86/2017/ND-CP dated October 25, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Planning and Investment; 7 Pursuant to Decree No. 39/2019/ND-CP dated May 10, 2019 of the Government on the organization and operation of the Small and Medium Enterprise Development Fund;

Considering the proposal of the Chairman of the Board of Directors of the Small and Medium Enterprise Development Fund;

The Minister of Planning and Investment issues this Circular guiding the Small and Medium Enterprise Development Fund's activities related to receiving sponsorship, contributions, and accepting mandates.

PART

1. This Circular regulates the procedures for receiving sponsorship, contributions, and accepting mandates from domestic organizations and individuals, and contributions that must be repaid and mandates from foreign organizations and individuals for the Small and Medium Enterprise Development Fund (hereinafter referred to as the Fund). I.

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

The receipt of non-repayable sponsorship from foreign organizations and individuals to the Fund shall be carried out in accordance with the provisions of the law on non-refundable aid not included in official support provided by foreign agencies and organizations to Vietnam.

a) The Small and Medium Enterprise Development Fund;

2. This Circular applies to:

b) Organizations and individuals related to the activities of receiving sponsorship, contributions, and accepting mandates of the Fund as stipulated in this Circular.

Article 2. Interpretation of terms:

In this Circular, the following terms are understood as follows:

1. "Sponsorship" means the activity of providing non-refundable support in the form of money or goods from sources not belonging to the state budget, under specific conditions, objectives, and targets set by organizations and individuals (sponsors) to the Fund to implement the support activities for small and medium enterprises (SMEs) as specified in Clause 1, Article 20 of the Law on Supporting SMEs and Clause 1, Article 36 of Decree No. 39/2019/ND-CP dated May 10, 2019 of the Government on the organization and operation of the Fund (hereinafter referred to as Decree No. 39/2019/ND-CP).

2. "Non-refundable contribution" means the activity of contributing money or goods without obligation to return by organizations and individuals (contributors) to the Fund to implement the support activities for SMEs as specified in Clause 1, Article 20 of the Law on Supporting SMEs and Clause 1, Article 36 of Decree No. 39/2019/ND-CP.

3. "Refundable contribution" means the activity of contributing money or goods by contributors to the Fund to implement the support activities for SMEs as specified in Clause 1, Article 20 of the Law on Supporting SMEs and Clause 1, Article 36 of Decree No. 39/2019/ND-CP, where the Fund must refund part or all of the contribution and/or profits generated from the contribution.

4. "Mandate" means the act of transferring a monetary capital to the Fund (mandatee) by organizations and individuals (mandator) to implement the support activities for SMEs as specified in Clause 1, Article 20 of the Law on Supporting SMEs and Clause 1, Article 36 of Decree No. 39/2019/ND-CP. The mandator bears all risks, and the mandatee enjoys the mandate fee.

Article 3. Principles and Objectives of Receiving Sponsorship, Contributions, and Accepting Mandates

1. The Fund may receive sponsorship, contributions, and accept mandates to carry out the activities as specified in Clause 1, Article 20 of the Law on Supporting SMEs and Clause 1, Article 36 of Decree No. 39/2019/ND-CP.

2. The receipt of sponsorship, contributions, and acceptance of mandates by the Fund must comply with the provisions of Vietnamese law and international treaties to which Vietnam is a party. The receipt of mandated capital and contributions must ensure compatibility with the Fund's repayment capacity.

3. The provision of sponsorship, contributions, and mandates to the Fund must ensure the principles of voluntariness, transparency, and openness.

4. The Fund shall not receive sponsorship, contributions, or mandates that harm national interests, security, defense, violate laws on anti-corruption, money laundering, terrorist financing, and other illegal activities.

5. Sponsors, contributors, and mandators must ensure the origin and legality of the sponsored funds, contributions, and mandates to the Fund themselves and bear responsibility for them.

5. The sponsor, contributor, and trustee must ensure and be responsible for the origin and legality of the sponsorship, contribution, and trust fund provided to the Fund.

Article 4. Forms of Accepting Sponsorship, Contributions, and Entrusted Funds

1. Sponsorship and contributions in cash: The sponsor or contributor shall transfer sponsorship and contribution funds in Vietnamese dong or foreign currency to the Fund through the Fund's open account at a commercial bank.

2. For sponsorship and contributions in kind:

a) The sponsor or contributor shall transfer machines, equipment, transportation means, land, construction projects, and other valuable items to the Fund.

b) The value of the contributed items must be converted into Vietnamese dong and reflected in the sponsorship and contribution acceptance documentation. For contributed items with a market original price of 500 million dong or more, the Fund must hire an appraisal organization to appraise the asset. The valuation date must not exceed six months from the date of the approval application submission.

3. For contributions that require repayment: The Fund shall repay according to the agreement signed between the parties.

4. For entrusted funds: The entrusting party shall transfer entrusted funds in Vietnamese dong or US dollars to the Fund through the Fund's open account at a commercial bank.

The Fund shall repay the entrusting party according to the terms of the entrustment agreement signed between the parties.

1. This Circular regulates the procedures for receiving sponsorship, contributions, and accepting mandates from domestic organizations and individuals, and contributions that must be repaid and mandates from foreign organizations and individuals for the Small and Medium Enterprise Development Fund (hereinafter referred to as the Fund). II. ACCEPTING SPONSORSHIP, CONTRIBUTIONS, AND ENTRUSTED FUNDS

Article 5. Approval Authority for Sponsorship, Contributions, and Entrusted Funds

1. The Minister of Planning and Investment shall decide on the approval of contributions requiring repayment and entrusted funds from foreign organizations and individuals.

2. The Chairman of the Board of Directors of the Small and Medium Enterprise Development Fund (hereinafter referred to as the Chairman of the Board) has the authority to approve sponsorship, contributions, and entrusted funds from domestic organizations and individuals.

Article 6. Preparation of Documentation and Records for Sponsorship, Contributions, and Entrusted Funds

1. For contributions requiring repayment and entrusted funds under the approval authority of the Minister of Planning and Investment:

a) The Fund shall take the lead in preparing the documentation and records for accepting contributions and entrusted funds.

b) The Fund shall coordinate with domestic organizations and contributors or entrusting parties during the preparation of the documentation and records.

2. For sponsorship, contributions, and entrusted funds under the approval authority of the Chairman of the Board, the Fund shall coordinate with domestic organizations and sponsors, contributors, and entrusting parties during the preparation of the documentation and records.

3. The Fund shall be responsible for implementing and ensuring the progress, quality, and content of the sponsorship, contribution, and entrusted fund documentation and records.

Article 7. Content of Documentation and Records for Sponsorship, Contributions, and Entrusted Funds

Documentation and records for accepting sponsorship, contributions, and entrusted funds shall include the following main contents:

1. Background and necessity of accepting sponsorship, contributions, and entrusted funds, specifying the issues that the sponsorship, contributions, and entrusted funds will be used to address.

2. Long-term objectives (if applicable) and short-term objectives of the sponsorship, contributions, and entrusted funds.

3. Main results of using the sponsorship, contributions, and entrusted funds and the measurement indicators for these results.

4. Implementation period and location of the sponsorship, contributions, and entrusted funds.

5. Commitments and conditions of the sponsor or contributor for the sponsorship and contributions, and the entrusting party for the entrusted funds; obligations and commitments of the Fund to use the sponsorship, contributions, and entrusted funds.

6. Total value and capital structure of the sponsorship, contributions, and entrusted funds.

7. Matching capital and guarantee sources (if applicable).

8. Organizational, management, and implementation methods for the sponsorship, contributions, and entrusted funds.

9. Overall plan and detailed implementation plan for the sponsorship, contributions, and entrusted funds (if necessary).

10. Monitoring and evaluation plan for the results of using the sponsorship, contributions, and entrusted funds (if necessary).

11. Effectiveness, applicability of the results to practical situations, and sustainability of the implementation of the sponsorship, contributions, and entrusted funds.

Article 8. Review of Grants, Contributions, and Entrusted Funds

1. Documents and files for grants, contributions, and entrusted funds must be reviewed to serve as the basis for approval, signing, and implementation.

2. The Ministry of Planning and Investment assigns a functional unit under its jurisdiction to organize the review of contributions that need to be repaid and entrusted funds in cases where the authority to approve such contributions and entrusted funds lies with the Minister of Planning and Investment.

3. The Fund shall organize the review and approval of grants, contributions, and entrusted funds within the authority of the Chairman of the Board of Trustees.

4. The leading unit conducting the review may invite specialized units, consulting organizations, and independent consulting experts to assist in reviewing the documents and files for grants, contributions, and entrusted funds.

5. The review file for grants, contributions, and entrusted funds includes:

a) The document submitted by the Fund for approval regarding the documents and files for grants, contributions, and entrusted funds.

b) The document from the grantor, contributor, or trustee expressing opinions on the content of the grants, contributions, and entrusted funds.

c) Draft documents for signing the grants, contributions, and entrusted funds and draft agreements for specific grants, contributions, and entrusted funds (if required to sign instead of the documents for future grants, contributions, and entrusted funds). In cases where the grantor, contributor, or trustee is an organization or individual within Vietnam, Vietnamese-language documents are required. If the grantor, contributor, or trustee is a foreign organization or individual, the documents must be in at least two languages: Vietnamese and the language of the foreign country.

d) Memoranda with the grantors, contributors, and trustees.

đ) Copies of the registration certificates for operations/business registrations and/or copies of legal documents regarding the legal status of organizations acting as grantors, contributors, or trustees, or copies of identification cards/passports/id cards for individuals acting as grantors, contributors, or trustees.

e) Certificates confirming the value of the assets being granted, contributed, and documents of valuation certification issued by legally recognized and competent valuation organizations for the assets being granted and contributed (if applicable).

6. The review file shall be prepared in eight sets for grants, contributions, and entrusted funds, including at least one original set. Documents in foreign languages must be accompanied by Vietnamese translations.

7. The main contents of the review report include:

a) The compliance of the figures, arguments, calculations, conclusions, and proposals stated in the reviewed documents with current legal provisions.

b) The feasibility of the grants, contributions, and entrusted funds.

c) The appropriateness of using the grants, contributions, and entrusted funds for the activities of the Fund.

d) Issues, existing problems, handling directions, measures, responsible organizations, and deadlines for handling.

đ) Commitments in case of changes in mechanisms, policies, differences in procedures for receiving and implementing grants, contributions, and entrusted funds, requirements, and conditions of the grantors, contributors, and trustees (if applicable).

e) The organizational and management capacity of the Fund (including financial capacity).

i) The effectiveness, applicability of results to practice, and sustainability of the implementation of grants, contributions, and entrusted funds.

g) Opinions that have been agreed upon or remain different among related parties.

h) Recommendations for the Fund to accept and implement grants, contributions, and entrusted funds.

i) The deadline for completing the application file for grants, contributions, and entrusted funds.

k) Information about the registration for operations/business registration and legal status of organizations acting as grantors, contributors, or trustees, or legal information about individuals acting as grantors, contributors, or trustees in Vietnam.

8. During the review process, the leading unit conducting the review reports to the competent authority and sends documents requesting opinions from relevant agencies and units. Agencies and units participating in the review bear legal responsibility for the content of the review within their scope of management responsibility.

9. The review process and time limit for contributions that need to be repaid and entrusted funds approved by the Minister of Planning and Investment

a) The review process for contributions that need to be repaid and entrusted funds

Step 1: The leading unit conducting the review performs an assessment of the legality of the review file based on Clause 5 of Article 8 of this Circular;

Step 2: Solicit opinions from relevant agencies and units After receiving a complete and valid set of files, the Ministry of Planning and Investment sends the file along with a request for comments to some ministries, sectors, agencies, and units related to the content of the contributions and entrusted funds.

Step 3: Review

If the file is incomplete, the leading unit conducting the review requests the Fund to supplement, revise, and complete the file and proceed with the steps mentioned above.

If the file is complete and valid, the leading unit conducting the review proceeds with the following review process:

- In cases where the contributions that need to be repaid and entrusted funds have clear and comprehensive content without objections from solicited agencies and units, the leading unit conducting the review prepares a report on the review results along with the minutes of the review and opinions of solicited agencies and units to submit to the Minister for approval of accepting the contributions that need to be repaid and entrusted funds;

- In cases where the aforementioned method cannot be applied, the leading unit conducting the review organizes a review conference. Participants invited to the review conference include representatives of the leading unit conducting the review, representatives of solicited agencies and units, related units, and representatives of the Small and Medium Enterprise Development Fund.

If the review conference concludes in favor of the file for contributions that need to be repaid and entrusted funds, the leading unit conducting the review prepares a report on the review results along with the minutes of the review and submits it to the Minister of Planning and Investment.

If the review conference concludes against the file for contributions that need to be repaid and entrusted funds, the leading unit conducting the review requests the Fund to supplement, revise, and complete the file according to regulations and proceed with the steps mentioned above.

b) The review period for contributions that need to be repaid and entrusted funds shall not exceed twenty days, counted from the date of receipt of a complete and valid set of files.

10. Review process for grants, contributions, and entrusted funds within the approval authority of the Chairman of the Board of Directors:

a) Review process for grants, contributions, and entrusted funds:

Step 1: The Fund conducts an assessment of the validity of the review file based on the provisions of Clause 5, Article 8 of this Circular;

Step 2: Solicit opinions from relevant agencies and units After receiving a complete set of valid files, the Fund sends the file along with a request for comments to relevant units under the Ministry of Planning and Investment for grants, contributions, and entrusted funds.

Step 3: Review

In cases where the file is incomplete, the Fund supplements, revises, completes the file, and proceeds with the steps as stated above.

If the file is complete and valid, the Fund proceeds with the review according to the following process:

- In cases where the grant, contribution, or entrusted fund has clear and complete content and there are no opposing opinions from solicited agencies and units, the Fund completes the Report on the review results accompanied by the review minutes and opinions of solicited agencies and units to submit for approval of accepting the grant, contribution, or entrusted fund;

- In cases where the aforementioned method cannot be applied, the Fund may organize a review meeting, including representatives from the Fund, solicited agencies and units, and related units. The Fund completes the Report on the review results accompanied by the review minutes.

b) The review period for grants, contributions, and entrusted funds shall not exceed twenty days, counted from the date of receipt of complete valid files.

Article 9. Simplified review process for grants, contributions, and entrusted funds

1. Grants, contributions, and entrusted funds are reviewed through a simplified process in the following cases:

a) Contributions that must be repaid and entrusted funds within the approval authority of the Minister of the Ministry of Planning and Investment with a value not exceeding ten billion VND;

b) Grants, contributions, and entrusted funds within the approval authority of the Fund with a value not exceeding one billion VND.

2. The review file and simplified review process for contributions that must be repaid and entrusted funds within the approval authority of the Minister of the Ministry of Planning and Investment are implemented as follows:

a) The review file for contributions that must be repaid and entrusted funds includes the documents and materials specified in Clause 5, Article 8 of this Circular;

b) The simplified review process is implemented as follows:

Step 1: The leading agency conducting the review performs an assessment of the validity of the review file based on the provisions of Point a, Clause 2 of this Article;

Step 2: Conducting the review

If the file is incomplete, the leading unit conducting the review requests the Fund to supplement, revise, and complete the file and proceed with the steps mentioned above.

If the file is complete and valid, the leading agency conducting the review proceeds with the review and prepares the Report on the review results accompanied by the review minutes for submission to the Minister of the Ministry of Planning and Investment.

The review period for grants, contributions, and entrusted funds shall not exceed ten days, counted from the date of receipt of complete valid files.

In necessary cases, the Minister of the Ministry of Planning and Investment decides on soliciting opinions from relevant agencies and units.

3. The review file and simplified review process for grants, contributions, and entrusted funds within the approval authority of the Chairman of the Board of Directors are implemented as follows:

a) The review file for grants, contributions, and entrusted funds includes the documents and materials specified in Clause 5, Article 8 of this Circular;

b) The simplified review process is implemented as follows:

Step 1: The leading agency conducting the review performs an assessment of the validity of the review file based on the provisions of Point a, Clause 3 of this Article;

Step 2: Conducting the review

In cases where the file is incomplete, the Fund supplements, revises, completes the file, and proceeds with the steps as stated above.

If the file is complete and valid, the Fund proceeds with the review and completes the Report on the review results accompanied by the review minutes.

The review period for grants, contributions, and entrusted funds shall not exceed ten days, counted from the date of receipt of complete valid files.

In necessary cases, the Chairman of the Board of Directors decides on soliciting opinions from relevant agencies and units.

Article 10. Approval of Grants, Contributions, and Entrusted Funds

1. The approval of grants, contributions, and entrusted funds following evaluation shall be carried out according to the following procedures:

a) The Minister of Planning and Investment decides on the approval of contributions that must be repaid and foreign entrusted funds. In cases where contributions that must be repaid and entrusted funds do not meet the conditions for acceptance, the Ministry of Planning and Investment will notify the contributor and the entrusting party about non-acceptance.

b) The Chairman of the Board of Trustees decides on the approval of domestic grants, contributions, and entrusted funds. In cases where grants, contributions, and entrusted funds do not meet the conditions for acceptance, the Fund will notify the grantor, contributor, and entrusting party about non-acceptance.

2. The documents and decisions approving grants, contributions, and entrusted funds shall include the following main contents:

a) Name of the grant, contribution, or entrusted fund;

b) Party receiving the grant, contribution, or entrusted fund: Small and Medium Enterprise Development Fund; Name of organization or individual as the grantor, contributor, or entrusting party;

c) Objectives and main results of the grant, contribution, or entrusted fund;

d) Time and location of implementation;

đ) Total value and capital structure of the grant, contribution, or entrusted fund;

3. The original document and decision approving the grant, contribution, or entrusted fund, along with specific documentation and files attached with a stamp, as well as related documents, must be sent to relevant agencies and units.

Article 11. Signing of Grant, Contribution, and Entrusted Fund Documents and Files

1. The signing of grant, contribution, and entrusted fund documents and agreements can only proceed after these documents and files have been approved by the competent authority and officially notified in writing by the Fund to the grantor, contributor, and entrusting party.

2. The Chairman of the Board of Trustees shall sign grant, contribution, and entrusted fund documents and agreements with the grantor, contributor, and entrusting party in accordance with Clause 1 of Article 8 of Decree No. 39/2019/NĐ-CP and this Circular.

3. Information Disclosure: Within ten days from the date of signing the grant, contribution, and entrusted fund documents and files, the Fund has the responsibility to disclose information on its electronic website and at its headquarters.

Article 12. Acceptance of Grants, Contributions, and Entrusted Funds

1. For grants, contributions, and entrusted funds in cash:

a) The Fund shall open a detailed accounting ledger to track separately the amount received from grants, contributions, and entrusted funds;

b) The Fund shall open a bank account at a commercial bank to accept grants, contributions, and entrusted funds transferred via bank transfer.

2. For grants and contributions in kind:

a) The Fund shall be responsible for completing handover procedures, preparing premises and storage areas to ensure convenient and prompt storage of contributed items. The Fund shall open a detailed accounting ledger to track separately the contributed items received.

b) In cases of basic construction project contributions under the "turnkey" form: The grantor or contributor completes all related documents and certificates regarding the construction project and transfers them to the Fund for accounting purposes based on the value of the contributed project upon handover;

c) In cases of equipment and machinery contributions: The grantor or contributor shall provide technical documents and files to the Fund in accordance with current laws.

Article 13. Adjustment, amendment, and supplementation of documents, files, approval decisions for grants, contributions, and entrusted funds during the implementation process

1. For contributions that must be repaid and entrusted funds approved by the Minister of Planning and Investment:

a) Adjustments, amendments, and supplements shall be carried out when there are changes to long-term objectives (if any), short-term objectives, organizational methods, management and implementation methods, main results, and implementation areas of the approved contributions that must be repaid and entrusted funds, or adjustments in progress leading to exceeding 24 months compared to the approved time period, which must be reported to the Minister of Planning and Investment for consideration and decision.

b) Within no more than 10 days from the date of receiving the adjustment proposal, the leading unit responsible for appraising the contributions that must be repaid and entrusted funds shall submit to the Minister of Planning and Investment for decision on adjustment, amendment, and supplement of the contributions that must be repaid and entrusted funds.

2. For grants, contributions, and entrusted funds approved by the Chairman of the Board of Directors:

a) Adjustments, amendments, and supplements that make the grants, contributions, and entrusted funds fall within the approval authority of the Minister of Planning and Investment shall be reported by the leading appraisal unit of the grants, contributions, and entrusted funds, in coordination with the Fund, to the Minister of Planning and Investment for consideration and decision.

b) Adjustments, amendments, and supplements not covered under point a of Clause 2 of this Article shall be decided by the Chairman of the Board of Directors.

c) Within no more than 10 working days after approving the adjustment, amendment, and supplement of the grants, contributions, and entrusted funds, the Chairman of the Board of Directors shall issue a decision on adjustment, amendment, and supplement of the grants, contributions, and entrusted funds.

1. This Circular regulates the procedures for receiving sponsorship, contributions, and accepting mandates from domestic organizations and individuals, and contributions that must be repaid and mandates from foreign organizations and individuals for the Small and Medium Enterprise Development Fund (hereinafter referred to as the Fund). III. IMPLEMENTATION

Article 14. Responsibilities of the Ministry of Planning and Investment

1. Assign a leading unit to appraise the file for accepting contributions that must be repaid and entrusted funds within the approval authority of the Minister of Planning and Investment.

2. Guide the organization and implementation, and amendment and supplementation of this Circular.

Article 15. Responsibilities of the Small and Medium Enterprise Development Fund

1. Accept grants, contributions, and entrusted funds according to the principles and purposes specified in Article 3 of this Circular.

2. Accept grants, contributions, and entrusted funds according to the forms specified in Article 4 of this Circular.

3. Lead in preparing documents and files for grants, contributions, and entrusted funds according to tasks assigned by the Minister of Planning and Investment; ensure the schedule, quality, and content of the documents and files.

4. Coordinate with domestic organizations and sponsors, entrusting parties during the preparation of documents and files for accepting grants, contributions, and entrusted funds.

5. Appraise the files for accepting grants, contributions, and entrusted funds within the authority of the Chairman of the Board of Directors.

6. Send the decision document approving grants, contributions, and entrusted funds and related documents to relevant agencies, units, and organizations as stipulated in Clause 2 of Article 10 of this Circular.

7. Recommend the Minister of Planning and Investment to decide on adjustment, amendment, and supplement of contributions that must be repaid and entrusted funds as prescribed in Point a Clause 1 and Point a Clause 2 of Article 13 of this Circular.

8. Recommend the Minister of Planning and Investment to consider and amend and supplement this Circular.

Article 16. Responsibilities of related organizations and individuals

1. The sponsor, contributor, and trustee must ensure and bear responsibility for the origin and legality of the sponsorship, contribution, and trust placed in the Fund.

2. Relevant agencies and units participating in the review shall be responsible under the law for the content of the review of applications to receive sponsorship, contributions, and trusts within the scope of their management responsibilities.

Article 17. Rewards and Handling of Violations

1. A sponsor who makes positive contributions to the development of small and medium-sized enterprise support activities shall be commended by the Fund within its authority or recommended to the competent authority for commendation forms according to the Law on Encouragement and Reward.

2. Organizations, units, and individuals implementing procedures for receiving, managing, and using sponsorship, contributions, and trusts contrary to the provisions of this Circular shall be subject to administrative sanctions or criminal liability追究责任，具体取决于违规程度，依照法律规定。

Article 18. Effective Date

1. This Circular takes effect from January 15, 2021.

2. During implementation, if there are any difficulties, organizations and individuals are requested to promptly report to the Ministry of Planning and Investment for research and supplementary guidance.