Decree No. 104/2024/ND-CP on the Land Development Fund

DECREE
Regulations on the Land Development Fund

||| Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Law on Organization of Local Administration dated June 19, 2015;

Pursuant to the Law Amending and Supplementing Several Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Law on Public Investment dated June 13, 2019;

Pursuant to the Housing Law dated November 27, 2023;

Pursuant to the Land Law dated January 18, 2024;

At the proposal of the Minister of Finance;

The Government promulgates this Decree to regulate the Land Development Fund.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree provides detailed regulations on the organization, operation, and financial mechanism of the Land Development Fund.

Article 2. Applicability

1. Provincial People's Councils, Municipal People's Committees directly under the central government.

2. The Land Development Fund.

3. Organizations that borrow capital from the Land Development Fund as stipulated in Clause 1, Article 14 of this Decree.

4. Other agencies, organizations, and units related to the Land Development Fund.

Chapter II
ESTABLISHMENT AND ORGANIZATION OF THE LAND DEVELOPMENT FUND

Section 1
ESTABLISHMENT OF THE LAND DEVELOPMENT FUND

Article 3. Competence, procedures, and formalities for establishment

1. The People's Committee of the province or centrally governed city (hereinafter referred to as provincial level) decides to establish the Land Development Fund.

2. Based on the actual situation at the locality, in cases where it is necessary to establish the Land Development Fund, the provincial-level People's Committee assigns the specialized agency under the provincial-level People's Committee to take the lead, coordinating with relevant functional agencies at the locality to prepare the application dossier for establishing the Land Development Fund, which is then submitted to the provincial-level People's Committee. The application dossier includes:

a) A report from the specialized agency under the provincial-level People's Committee regarding the proposal to establish the Land Development Fund: one original copy.

b) An establishment project for the Land Development Fund prepared by the specialized agency under the provincial-level People's Committee: one original copy. The main contents of the Land Development Fund establishment project include:

Objectives, necessity, and feasibility of establishing the Land Development Fund, the impact of establishing the Land Development Fund on economic and social development at the locality;

Name and location of the main office of the Land Development Fund;

Legal status, legal personality, functions, principles of operation, and the legal representative of the Land Development Fund;

Tasks and powers of the Land Development Fund;

Estimated sources of operating capital for the Land Development Fund including: charter capital provided by the state budget (level of charter capital) and other legally raised capital according to the provisions of the law; schedule for providing charter capital from the state budget and schedule for raising other legally permitted capital;

Detailed explanation about the organizational structure and operational model of the Land Development Fund as prescribed in Articles 8, 9, 10, 11, and 12 of this Decree;

Estimated number, composition, and working system (full-time, part-time) of the Management Board, Supervisory Board, and Business Operation Agency of the Land Development Fund; estimated key personnel of the Land Development Fund (including: Chairman, Vice Chairmen of the Management Board; Head of the Supervisory Board; Director) meeting the standards and conditions stipulated in Articles 9, 10, and 11 of this Decree and draft Charter on the organization and operation of the Land Development Fund;

Management of charter capital and other legally raised capital of the Land Development Fund;

Authority, procedures for preparing, consolidating, and approving the Plan for borrowing capital from the Land Development Fund; authority and procedures for deciding to borrow capital from the Land Development Fund; sanctions for violations in the use and repayment of borrowed capital;

Financial regime of the Land Development Fund.

c) Draft Charter on the organization and operation of the Land Development Fund with contents as stipulated in Clause 1, Article 4 of this Decree.

d) Summary and explanation of opinions from relevant agencies (if any): one original copy.

d) Opinions of relevant agencies (if any): one copy.

3. Within thirty days from the date of receiving the complete dossier as stipulated in Clause 2 of this Article, the provincial-level People's Committee shall examine and submit the Project to the provincial-level People's Council for examination and approval.

4. Within thirty days from the date the Project is approved by the provincial-level People's Council, the provincial-level People's Committee shall be responsible for:

a) Approving the Project for establishing the Land Development Fund and issuing the Decision to establish the Land Development Fund.

b) Issuing the Charter on the organization and operation of the Land Development Fund.

c) Issuing a notification to the Ministry of Finance regarding the establishment of the Land Development Fund.

Article 4. Charter on the organization and operation of the Land Development Fund

1. The charter on the organization and operation of the Land Development Fund shall include the following main contents:

a) Name and location of the headquarters.

b) Legal status, legal personality, functions, principles of operation, and the person representing the legal entity.

c) Sources of capital for the operation of the Land Development Fund (authorized capital, other legally raised capital).

d) Tasks and powers of the Land Development Fund.

d) Organizational structure and operational model of the Land Development Fund.

e) Number, composition, tasks, and powers of the Management Board, Supervisory Board, Business Operation Agency; working regime of the Management Board.

g) Criteria and conditions for appointing and reappointing positions within the dedicated Management Board, dedicated Supervisory Board, Director, Deputy Director, Chief Accountant of the Fund. Recruitment, planning, appointment, reappointment, resignation, dismissal, transfer, promotion, disciplinary action, termination, retirement for dedicated positions within the Land Development Fund.

h) Management of authorized capital and other legally raised capital of the Land Development Fund at State Treasury, commercial banks with state-controlled capital in the locality.

i) Authority, procedures for preparing, consolidating, approving the Capital Utilization Plan from the Land Development Fund; authority to decide on capital utilization from the Land Development Fund; sanctions for violations in the use and repayment of utilized capital.

Financial system, asset management, accounting, and auditing.

l) Relationships and responsibilities between the Management Board, Supervisory Board, and Director in managing and operating the Land Development Fund, between the Land Development Fund and relevant state management agencies, organizations utilizing capital, organizations entrusted with managing the Land Development Fund.

m) Other contents necessary to meet the requirements of managing the Land Development Fund.

2. Amendments and supplements to the charter on the organization and operation of the Land Development Fund shall be proposed by the Management Board of the Land Development Fund to the People's Committee of the province for decision. In cases where there is a change in the authorized capital level or operational model of the Land Development Fund, the People's Committee of the province must report to the People's Council of the province for approval before making a decision.

Section 2
LEGAL STATUS, FUNCTIONS, TASKS AND POWERS OF THE LAND DEVELOPMENT FUND
AND THE LIMITS OF THE LAND DEVELOPMENT FUND RIGHTS

Article 5. Legal status, legal personality, and functions of the Land Development Fund

1. The Land Development Fund is a state financial fund outside the budget, directly under the People's Committee of the province, established by the decision of the People's Committee of the province, operating independently from the state budget, not for profit, ensuring the preservation and development of capital.

2. The Land Development Fund has legal personality, its own seal, bank account, independent accounting, and authorized capital.

3. Name: "Land Development Fund" combined with the name of the province or centrally governed city.

4. The Land Development Fund has the function of receiving and raising capital according to regulations to fulfill the task of providing capital loans and being repaid according to the provisions of Article 114 of the Land Law 2024, this Decree, and related laws.

Article 6. Tasks of the Land Development Fund

1. Managing, preserving, and developing capital.

2. Implementing capital loan tasks according to decisions of competent authorities; implementing the recovery of loaned capital according to regulations.

3. Adhering to legal regulations on financial management, asset management, accounting, auditing, and other related regulations.

4. Deciding to stop or recover loaned capital when discovering that the organization utilizing the loaned capital violates regulations on the use of loaned capital or delays in repaying loaned capital.

5. Inspecting the use of loaned capital and the recovery of loaned capital according to the provisions of Clause 7, Article 16 of this Decree; determining management costs of loaned capital according to the provisions of Article 17 of this Decree.

6. Implementing regular reporting systems as prescribed; submitting ad hoc reports on the management and use of operational capital of the Land Development Fund upon request of competent authorities.

7. Fulfilling other tasks as prescribed in this Decree and related laws.

Article 7. Powers of the Land Development Fund

1. Organize management and operation of the Land Development Fund in accordance with its objectives and assigned tasks.

2. Issue regulations and procedures to manage the operations of the Land Development Fund.

3. Inspect compliance with the purpose of using advance funds for projects and tasks funded by the Land Development Fund.

4. Handle violations by organizations and individuals in managing, using, and repaying advance funds according to authority or report to competent agencies or persons for handling such violations.

5. Other powers as prescribed in this Decree and relevant laws.

Section 3
ORGANIZATIONAL STRUCTURE AND OPERATING MODEL
OF THE LAND DEVELOPMENT FUND

Article 8. Organizational structure and operating model

1. The organizational structure of the Land Development Fund includes:

a) Management Board.

b) Supervisory Board.

c) Business Operation Department.

2. Composition, tasks, powers, and working regime of the Management Board, Supervisory Board, and Business Operation Department of the Fund shall be implemented in accordance with Articles 9, 10, and 11 of this Decree.

3. The Land Development Fund operates independently or through delegation.

In case the People's Committee of the province decides that the Land Development Fund operates independently, it shall implement in accordance with Articles 9, 10, and 11 of this Decree.

In case the People's Committee of the province decides to delegate management of the Land Development Fund to the Local Investment Fund or another local financial fund, it shall implement in accordance with Article 12 of this Decree.

Article 9. Management Board

1. The Management Board of the Land Development Fund consists of a maximum of seven members, including: Chairperson of the Management Board, up to two Deputy Chairpersons of the Management Board, and other members. The specific number and composition of the Management Board are stipulated in the Charter of the Land Development Fund's organization and operation, ensuring the following principles:

a) The number of Management Board members is odd.

b) The Chairperson of the Management Board is the Leader of the People's Committee of the province.

d) Members of the Management Board cannot be spouses, parents, children, siblings, brothers-in-law, sisters-in-law, or sisters-in-law, brothers-in-law, or other cases as prescribed by law on preventing and combating corruption of members of the Supervisory Board, Directors, Deputy Directors, Chief Accountants of the Fund.

2. Members of the Management Board work concurrently or full-time.

3. Matters concerning planning, appointment, reappointment, resignation, dismissal, transfer, commendation, disciplinary action, termination, retirement of full-time Management Board members shall be carried out in accordance with the Charter of the Land Development Fund's organization and operation and relevant laws.

4. Tasks and powers of the Management Board:

a) Manage and utilize the Fund's capital in accordance with this Decree and the Charter of the Land Development Fund's organization and operation; ensure preservation and development of capital.

b) Issue or amend regulations, business procedures, and other rules as prescribed in the Charter of the Land Development Fund's organization and operation; assign tasks to Management Board members.

c) Supervise and inspect the Business Operation Department of the Land Development Fund in implementing policies, laws, and decisions of the Management Board.

d) Approve the supervisory board's work plan; approve or submit applications for advance funding from the Land Development Fund to competent authorities for approval according to provincial regulations.

đ) Submit proposals to the People's Committee of the province for amending and supplementing the Charter of the Land Development Fund's organization and operation.

e) Decide on planning, appointment, reappointment, resignation, dismissal, transfer, commendation, disciplinary action, termination, retirement of positions within their authority as prescribed in the Charter of the Land Development Fund's organization and operation and relevant laws.

g) Be collectively responsible for the activities of the Management Board of the Fund and individually responsible for their assigned tasks before the Chairman of the People's Committee of the province and the law.

h) Use the seal of the Land Development Fund and the Business Operation Department to perform the duties and powers of the Management Board.

i) Other tasks and powers as prescribed in the Charter of the Land Development Fund's organization and operation and relevant laws.

5. The working regime of the Management Board is specifically stipulated in the Charter of the Land Development Fund's organization and operation, ensuring the following contents:

a) Meetings of the Management Board are only valid when at least 2/3 of the members attend. In case meetings are not organized, opinions of Management Board members can be obtained in writing.

b) Conclusions of the Management Board are expressed through resolutions or decisions of the Management Board.

c) The Management Board decides issues based on majority voting, each member having one vote with equal voting rights. Resolutions and decisions of the Management Board take effect when more than 50% of the total Management Board members vote in favor or obtain written consent. In case of equal votes, the final decision belongs to the side with the opinion of the Chairperson of the Management Board or the meeting chairperson (in case of voting during a meeting).

Article 10. Supervisory Board

1. The Supervisory Board assists the People's Committee at the provincial level and the Management Board in supervising the activities of the Land Development Fund.

2. The Supervisory Board shall have a maximum of three members, including the Chairperson and other members of the Supervisory Board. Members of the Supervisory Board may be part-time or full-time.

3. Members of the Supervisory Board must not be the spouse, father, adoptive father, mother, adoptive mother, child, adoptive child, full-blood brother or sister, brother-in-law, sister-in-law, brother-in-law, sister-in-law of the members of the Management Board, Director, Deputy Director, Chief Accountant of the Fund, or any other cases as prescribed by laws on preventing and combating corruption.

4. The planning, appointment, reappointment, resignation, removal, transfer, rotation, commendation, disciplinary action, termination of employment, and retirement of the Chairperson and other members of the Supervisory Board shall be carried out in accordance with the Charter on the organization and operation of the Land Development Fund and relevant laws.

5. Duties and powers of the Supervisory Board:

a) Inspect and supervise the implementation of policies, laws, the Charter on the organization and operation of the Land Development Fund, and internal regulations and procedures of the Fund.

b) Inspect and supervise the legality and honesty of the Management Board and the Director of the Fund in managing and directing the operations of the Fund.

c) Review the financial reports of the Fund in accordance with the law.

d) Develop plans for activities, submit them to the Management Board for approval; report periodically or ad hoc on inspection and supervision work.

d) Perform other tasks assigned by the Management Board and the People's Committee at the provincial level.

Article 11. Operational Management Agency

1. The operational management agency of the Land Development Fund includes: the Director, up to two Deputy Directors; the Chief Accountant, and up to three departments (performing administrative and operational functions of the Fund). The departments of the operational management agency shall be proposed by the Management Board for consideration and decision by the People's Committee at the provincial level. The Director of the Fund is the legal representative of the Land Development Fund, accountable to the People's Committee at the provincial level, the Management Board, and the law for all activities of the Land Development Fund. The Deputy Directors assist the Director in managing the operations of the Fund according to their assignments and delegations; they are accountable to the Director and the law for the tasks assigned and delegated to them.

2. The operational management agency of the Land Development Fund operates either on a full-time or part-time basis.

3. In the case where the operational management agency operates on a full-time basis, its staff are civil servants.

4. Recruitment, planning, appointment, reappointment, resignation, removal, transfer, rotation, commendation, disciplinary action, termination of employment, and retirement of the Director, Deputy Directors, Chief Accountant, and other positions within the operational management agency shall be carried out in accordance with the Charter on the organization and operation of the Land Development Fund and relevant laws.

5. Duties and powers of the operational management agency:

a) Organize and manage the operations of the Fund in accordance with this Decree, the Charter on the organization and operation of the Fund, decisions of the People's Committee at the provincial level, the Chairman of the People's Committee at the provincial level, resolutions and decisions of the Management Board of the Fund.

b) Propose the Management Board to issue internal regulations, operational procedures, and other regulations stipulated in the Charter on the organization and operation of the Fund.

c) Aggregate and develop the Capital Utilization Plan of the Fund for submission to the Management Board of the Fund in accordance with this Decree.

d) Directly manage the working capital and assets of the Fund.

e) Carry out other powers and duties as prescribed in this Decree, the Charter on the organization and operation of the Fund, and the provisions of the law.

Article 12. Entrusted Management of the Land Development Fund

1. The entrusted management of the Land Development Fund to the local investment development fund or other local financial funds (hereinafter referred to as the entrusted fund) shall be decided by the Provincial People's Committee.

2. In cases where the land development fund operates under the entrusted model:

a) The Management Board and Supervisory Board of the Land Development Fund shall operate in accordance with the provisions of Article 9 and Article 10 of this Decree.

b) The operational management agency of the Land Development Fund is the operational management agency (Management Board) of the entrusted fund.

Chapter III

ACTIVITIES OF THE LAND DEVELOPMENT FUND

Article 13. Sources of Operating Capital of the Land Development Fund

1. The sources of operating capital of the Land Development Fund include:

a) Authorized Capital

The authorized capital of the Land Development Fund is provided from the local government budget investment expenditure and from the surplus revenue over expenditure (if any) of the Land Development Fund after setting up various funds and fulfilling financial obligations to the State in accordance with the law. Based on actual conditions and the local government budget balance capacity, the Provincial People's Committee shall submit to the same-level People's Council to decide on the initial authorized capital amount and additional authorized capital to be provided to the Land Development Fund.

b) Other legally raised capital as prescribed by law, including: Aid, sponsorship, and support capital from international organizations, domestic and foreign organizations and individuals under aid, sponsorship programs, and other lawful capital sources as prescribed.

2. The provision of authorized capital to the Land Development Fund shall be carried out in accordance with the laws on public investment and state budget applicable to non-budget state financial funds.

The Land Development Fund shall open a separate account at the State Treasury of the province and a transaction account at commercial banks with state majority ownership within the locality to manage its authorized capital. The authorized capital of the Fund may only be used for advance funding purposes and shall be repaid according to the provisions of this Decree.

Article 14. Use of Operating Capital of the Land Development Fund

1. The operating capital of the Land Development Fund shall be used for:

c) Advance funding to organizations assigned to implement land support policies for ethnic minority groups.

d) Advance funding for other tasks as prescribed by law.

2. Advance funding from the Fund shall be implemented in accordance with Articles 15 and 16 of this Decree; repayment of advance funding to the Fund shall be carried out in accordance with Article 18 of this Decree.

Article 15. Capital utilization plan and conditions for capital utilization from the Land Development Fund

1. Capital Utilization Plan:

The authority to establish, consolidate, and approve the Capital Utilization Plan from the Land Development Fund shall be carried out in accordance with the regulations of the Provincial People's Committee. The agency or person authorized to approve the Capital Utilization Plan from the Land Development Fund is responsible for reviewing the capital utilization proposals before approval to ensure that the Capital Utilization Plan is balanced appropriately.

2. Conditions for capital utilization include:

a) Having a document requesting capital utilization from the organization entitled to utilize capital.

b) Being included in the Capital Utilization Plan from the Land Development Fund approved by the agency or person authorized to approve.

c) Projects and tasks having been approved or assigned for implementation by the agency or person authorized to approve.

d) Having a repayment plan for utilized capital.

đ) The operational capital of the Fund at the time of capital utilization meeting the requirements for capital utilization.

Article 16. Authority to decide on utilization, procedures, and formalities for implementation

1. Authority to decide on capital utilization:

The Provincial People's Committee stipulates the authority to decide on capital utilization from the Land Development Fund. The agency or person authorized must review the conditions for capital utilization as specified in Clause 2 of Article 15 of this Decree before approving the decision on capital utilization from the Land Development Fund to ensure compliance and bear responsibility for the amount of capital utilized from the Land Development Fund.

2. Based on the Capital Utilization Plan already approved by the agency or person authorized, the organization entitled to utilize capital shall prepare one set of application documents for capital utilization to send to the Land Development Fund. The application documents include:

A document from the organization entitled to utilize capital regarding the request for capital utilization (specifying the plan and progress of work volume implementation; the repayment plan for utilized capital; commitment to use the utilized capital for its intended purpose and repay it within the prescribed timeframe): one original copy.

Documents and materials related to the conditions for capital utilization as specified in Clause 2 of Article 15 of this Decree: one copy.

3. Within seven working days from the date of receiving complete and valid documents, the Land Development Fund shall submit to the agency or person authorized as specified in Clause 1 of this Article to decide on capital utilization for the organization entitled to utilize capital if all conditions are met, or issue a notification and return the documents to the organization requesting capital utilization if the conditions are not met according to the regulations.

4. Based on the Decision on capital utilization from the Land Development Fund issued by the agency or person authorized as specified in Clause 1 of this Article, the Land Development Fund shall control the documents as specified in Clauses 2 and 3 of this Article and bear responsibility for the legality of the documents, prepare payment vouchers sent to the State Treasury, commercial bank where the account is opened. At the latest within one working day, the State Treasury where the account is opened shall transfer funds to the beneficiary according to the request of the Land Development Fund. The commercial bank where the account is opened shall execute the fund transfer order of the Land Development Fund to the beneficiary according to the regulations.

5. Capital utilization may be implemented once or multiple times based on the progress of implementation and the need for capital utilization of each project or task. In cases where multiple capital utilizations are made for the same project or task, the organization entitled to utilize capital shall have a document requesting capital utilization and other relevant documents and materials for each capital utilization.

6. The organization entitled to utilize capital shall be responsible for:

a) Using the utilized capital to implement the tasks specified in Clause 1 of Article 14 of this Decree for their intended purposes and in accordance with the provisions of the law, and bearing responsibility for the utilization of the utilized capital as stipulated by the law. Not using the utilized capital to implement the tasks specified in Clause 1 of Article 14 of this Decree for other purposes.

b) Implementing the management fee repayment for the utilized capital from the Land Development Fund as stipulated in Article 17 of this Decree.

c) Informing the agency or person authorized to issue the Decision on repayment of utilized capital to the Land Development Fund and implementing the repayment of utilized capital to the Land Development Fund as stipulated in Article 18 of this Decree.

7. The Land Development Fund shall be responsible for inspecting the use of capital utilized from the Fund and recovering the utilized capital as prescribed.

Article 17. Costs for managing capital borrowed from the Land Development Fund

2. Costs for managing capital borrowed from the Land Development Fund shall be included in other expenses under the total investment amount of the project, the budget estimate of the task.

Article 18. Provisions on Repayment of Borrowed Capital to the Land Development Fund

1. Repayment of borrowed capital from the project's own funds, approved by the competent authority:

Request for repayment of borrowed capital to the Land Development Fund (specifying the amount of borrowed capital from the Land Development Fund that has not yet been repaid, the borrowing period): two original copies;

Withdrawal form according to the Model attached to this Decree: two original copies, and in cases where the application is submitted through the State Treasury’s public service information portal, all parts of the application must be signed electronically in accordance with regulations;

Decision on borrowing capital from the Land Development Fund by the competent authority as stipulated in Clause 1 of Article 16 of this Decree: one copy;

Annual capital allocation decision for the project (including the amount to be repaid to the Land Development Fund): one copy;

Decision on repayment of borrowed capital to the Land Development Fund by the competent authority approving the investment project: one original copy.

b) Within no more than three working days from the date of receiving the complete application as specified in point a of this clause, the State Treasury shall verify the legality of the application sent by the borrowing organization; if the requirements are met, the State Treasury shall transfer the money to the Land Development Fund; if the requirements are not met, the State Treasury shall refuse to transfer the money.

Other contents regarding the transaction procedures at the State Treasury shall be carried out in accordance with the Government's regulations on administrative procedures within the State Treasury sector.

c) Settlement of completed projects shall be conducted in accordance with the law on settlement of projects using state investment capital.

2. Repayment of borrowed capital in other cases (not covered by the provisions of Clause 1 of this Article):

a) Based on the amount of borrowed capital that has not yet been repaid to the Land Development Fund (including the amount of borrowed capital from previous periods if any), the borrowing period, and the repayment plan for borrowed capital to the Fund, the organization borrowing capital in accordance with Clause 1 of Article 14 of this Decree shall report to the competent authority at the local level to allocate in the budget estimate for other development investments at the corresponding level to repay the borrowed capital to the Fund.

b) The source for repaying borrowed capital to the Land Development Fund shall be allocated in the budget estimate for other development investments. The preparation, examination, and approval of the budget estimate shall be carried out in accordance with the law on state budget.

c) Based on the approved budget estimate by the competent authority, the borrowing organization shall prepare a request for repayment of borrowed capital to the Land Development Fund and send it to the State Treasury. The application includes:

Request for repayment of borrowed capital (specifying the amount of borrowed capital from the Land Development Fund that has not yet been repaid, the borrowing period): two original copies;

Withdrawal form according to the Model attached to this Decree: two original copies, and in cases where the application is submitted through the State Treasury’s public service information portal, all parts of the application must be signed electronically in accordance with regulations;

Budget allocation decision by the competent authority: one copy;

Decision on repayment of borrowed capital by the competent authority assigning the task: one original copy.

d) Within no more than three working days from the date of receiving the complete application as specified in point c of this clause, the State Treasury shall verify the legality of the application; if the requirements are met, the State Treasury shall transfer the money to the Land Development Fund; if the requirements are not met, the State Treasury shall refuse to transfer the money.

Other contents regarding the transaction procedures at the State Treasury shall be carried out in accordance with the Government's regulations on administrative procedures within the State Treasury sector.

d) The borrowing organization shall settle the amount of repaid borrowed capital to the Land Development Fund together with the annual state budget settlement.

3. The amounts specified in Clauses 1 and 2 of this Article, when repaid to the Land Development Fund, shall continue to be used for the tasks of borrowing capital as stipulated in this Decree and shall not be used for other purposes.

4. In cases where the borrowed capital has not been fully utilized (if any), it must be returned to the Land Development Fund within thirty days from the completion date of the utilization of the borrowed capital for the proposed purpose but not fully utilized.

Article 19. Activities of the Land Development Fund as Trustee

1. The Land Development Fund may accept trust management of other state financial funds of localities as prescribed, except when the Land Development Fund operates under a trust model for the Local Investment Development Fund or other local financial funds.

2. The acceptance of trust by the Land Development Fund shall be carried out pursuant to a Decision of the Provincial People's Committee or a Trust Agreement signed between the Land Development Fund and the entrusting party. The Decision or Trust Agreement shall include the following basic contents:

a) Name, address, legal status, and legal representative of the entrusting party (if applicable) and the entrusted party (the Land Development Fund).

b) Purpose and content of the trust.

c) Amount of entrusted capital, management of entrusted capital; duration of the trust; trust costs;

d) Responsibility for reviewing and supervising the trust activities; responsibility for handling risks of the entrusting party.

đ) Rights and obligations of the parties; handling cases of terminating the Decision or Trust Agreement before the term; provisions on handling violations and disputes (if any).

e) Other contents agreed upon by the parties in accordance with the provisions of the law.

3. The Land Development Fund is responsible for accounting separately and monitoring the entrusted capital and assets formed from the entrusted capital (if any) of the Fund.

4. The acceptance of trust by the Land Development Fund must ensure compliance with the provisions of the law and not affect the performance of the Fund's tasks as prescribed in this Decree.

5. The Land Development Fund is entitled to income from accepting trust and such income is recognized as revenue of the Fund.

Chapter IV
FINANCIAL REGIME, ACCOUNTING, AND AUDITING
AND REPORTS OF THE LAND DEVELOPMENT FUND

Article 20. Financial System and Management and Use of Assets of the Land Development Fund

1. The fiscal year of the Land Development Fund begins on January 1 and ends on December 31.

2. The financial system (including salary mechanisms and allowances for management staff and employees) and management and use of assets of the Land Development Fund shall be implemented according to regulations applicable to public service units and as stipulated in the Charter of the Organization and Operation of the Fund. Specific contents related to the financial system of the Land Development Fund as prescribed in this Decree shall be implemented in accordance with the provisions of this Decree.

3. The headquarters land of the Land Development Fund shall be managed according to the land use regime applicable to public service units as prescribed by the law on land.

Article 21. Revenue and Expenditures of the Land Development Fund

1. Revenues include:

a) Revenue from management fees for capital advances from the Land Development Fund as prescribed in Article 17 of this Decree.

b) Interest income from deposits as prescribed by law.

c) Revenue from managing other funds as entrusted as prescribed in Clause 5, Article 19 of this Decree.

d) Other revenues as prescribed by law.

a) Expenses serving capital operations, recovery of capital advances, and management of operational capital of the Land Development Fund.

b) Salary expenses, allowances, and other expenses for members of the Management Board, Supervisory Board, and Business Operations Department of the Land Development Fund according to regulations applicable to public service units.

c) Payments to the State budget and other expenditures as prescribed by law.

4. The Management Board of the Land Development Fund is responsible for promulgating internal expenditure regulations of the Fund as a basis for implementing and managing the Fund's expenditures.

5. Capital contribution of the Land Development Fund shall not be used for the purposes prescribed in Clauses 2 and 3 of this Article. Any surplus revenue greater than expenditure (if any) after setting aside reserves and fulfilling financial obligations to the State as prescribed shall be supplemented to the capital contribution of the Land Development Fund.

6. The Land Development Fund is responsible for settling accounts of the Fund's revenues and expenditures in accordance with the law.

Article 22. Accounting System and Reporting

1. The Land Development Fund shall implement the accounting system in accordance with the laws on accounting applicable to state financial funds outside the state budget, ensuring full, timely, truthful, accurate, and objective reflection of economic and financial activities.

2. Annually, the Land Development Fund is responsible for submitting its annual financial report to the People's Committee of the province.

The annual financial report of the Land Development Fund shall be audited by an independent auditing organization in accordance with the law. The latest date for submission of the report is 90 days from the end of the fiscal year.

3. The inspection, supervision, control, audit, and oversight of the Land Development Fund shall be carried out in accordance with the Charter of Organization and Operation of the Land Development Fund and the provisions of the law.

Chapter V
DISSOLUTION OF THE LAND DEVELOPMENT FUND

Article 23. Dissolution Process of the Land Development Fund

1. In cases where the Land Development Fund has been established but it is not necessary to maintain the Fund, the People's Committee of the province shall establish a Dissolution Board to advise the People's Committee of the province on the dissolution plan and organize the implementation of the dissolution of the Fund. The Dissolution Board shall include:

a) Leaders of the People's Committee of the province.

b) Representatives of leaders of provincial departments and agencies related to the Fund.

c) Management Council of the Fund, Supervisory Board of the Fund.

d) Representatives of relevant agencies (if necessary) as decided by the People's Committee of the province.

2. The Dissolution Board shall develop a dissolution plan, report to the People's Committee of the province for approval by the People's Council of the province. The dissolution plan of the Land Development Fund shall include the following contents:

a) An assessment by an independent auditing organization regarding the current financial status and determination of the actual value of the registered capital of the Fund, except when the Fund has already submitted an independently audited financial report within six months prior to the decision to dissolve the Fund.

b) Plan for handling the registered capital and assets of the Fund.

c) Plan for transferring entrusted items and receiving entrustments of the Fund.

d) Plan for handling obligations arising from labor contracts.

d) Provisions terminating all duties and powers of the Fund.

3. After the dissolution plan is approved by the People's Council of the province, the People's Committee of the province shall decide to dissolve the Land Development Fund, simultaneously sending a notification letter to the Ministry of Finance and announcing the dissolution through local and central mass media.

4. Within ten working days from the effective date of the dissolution decision:

a) The Land Development Fund is responsible for implementing the provisions set forth in Clause 1 of Article 24 of this Decree.

b) The Dissolution Board is responsible for implementing the provisions set forth in Clause 2 of Article 24 of this Decree.

5. The Dissolution Board shall automatically cease operations when the Land Development Fund has completed all dissolution procedures in accordance with this Decree and relevant laws.

6. The dissolution period of the Land Development Fund shall not exceed two years from the effective date of the dissolution decision. In case of necessity based on practical requirements of the locality, the People's Committee of the province may extend the dissolution period, but the maximum extension period shall not exceed one year.

Article 24. Responsibilities of the Land Development Fund and responsibilities of the Liquidation Council after the dissolution decision takes effect

1. Responsibilities of the Land Development Fund

a) Cease capital lending from the Fund, entrustment and entrusted matters as prescribed in this Decree when the dissolution decision becomes effective.

b) Within ten working days from the date the dissolution decision becomes effective, the Land Development Fund must carry out:

Close accounting books; reconcile figures and inventory assets; prepare financial statements up to the date the dissolution decision becomes effective;

Prepare lists of deposits made by the Fund at the State Treasury and banks; lists of capital loans from the Fund that need to be recovered; lists of entrusted and entrusted matters;

Send a document requesting the tax authority to confirm the fulfillment of tax obligations by the Fund.

c) Within thirty working days from the date the dissolution decision becomes effective, the Land Development Fund must hand over to the Liquidation Council:

Financial statements, accounting records and related documents concerning the dissolution of the Fund; lists of deposits made by the Fund at the State Treasury and banks; lists of capital loans from the Fund that need to be recovered; lists of entrusted and entrusted matters;

All assets under the lawful ownership, management, and use of the Fund.

2. Responsibilities of the Liquidation Council:

a) Within five working days from the date the dissolution decision becomes effective, the Liquidation Council is responsible for:

Recovering the seal of the Land Development Fund for the purpose of dissolution;

Organizing the dissolution of the Land Development Fund according to the approved plan.

b) Within five working days from the end of the dissolution process, the Liquidation Council reports to the People's Committee of the province on the results of the dissolution.

c) The Liquidation Council may use the seal of the Land Development Fund to serve the dissolution work and request the Department of Finance to take the lead and coordinate with relevant agencies to report to the People's Committee of the province on the plan for handling the Fund's assets after handing them over to the Liquidation Council.

Chapter VI
IMPLEMENTATION

Article 25. Transitional Provisions

1. The People's Committee of the province shall direct a review of existing Land Development Funds at the time this Decree comes into effect; if the organizational structure, Charter of organization and operation, entrusted and entrusted activities of the Land Development Fund are not in compliance with the provisions of this Decree, then the organizational structure should be strengthened, the establishment decision, Charter of organization and operation should be amended and supplemented, and entrusted and entrusted activities should be adjusted according to the provisions of this Decree to report to the People's Committee of the province for decision after being approved by the People's Council of the province. The review, strengthening of the organizational structure, amendment and supplementation of the establishment decision, Charter, and adjustment of entrusted and entrusted activities of the Fund as stipulated in this clause must be completed within twelve months from the date this Decree comes into effect. There is no need to implement the procedures for establishing a Land Development Fund as prescribed in this Decree for cases where the Fund continues to operate.

In cases where it is not necessary to maintain the Land Development Fund, the dissolution of the Fund shall be carried out according to the provisions of Chapter V of this Decree.

During the period before the completion of the strengthening of the organizational structure, amendment and supplementation of the Charter, and adjustment of entrusted and entrusted activities of the Fund as prescribed in this clause, the People's Committee of the province shall be responsible for directing the application and repayment of capital loans of the Land Development Fund according to the provisions of Chapter III of this Decree, except for cases stipulated in Clause 2 of this Article.

2. In cases where the Land Development Fund has lent capital in accordance with the law to implement compensation, support, resettlement, and land fund creation as decided by competent authorities before this Decree comes into effect but has not yet completed the repayment of capital loans to the Fund by the time this Decree comes into effect, the repayment of capital loans to the Fund shall be handled as follows:

a) For cases where the source of repayment of capital loans to the Land Development Fund from project funds or sources already determined according to regulations has been identified, the repayment of capital loans to the Fund from project funds shall be implemented according to Clause 1 of Article 18 of this Decree or from sources already determined according to regulations.

Article 26. Responsibility for Implementation

1. The Ministry of Finance shall guide and inspect the implementation of this Decree.

2. The People's Council of the province shall be responsible for:

a) Approving the proposal for establishing the Land Development Fund and the liquidation plan of the Land Development Fund as prescribed in this Decree.

b) Deciding on the initial charter capital and additional charter capital provided to the Land Development Fund as prescribed in this Decree.

c) Approving changes in the charter capital and operational model of the Land Development Fund as prescribed in this Decree.

d) Supervising the compliance with laws by the Land Development Fund.

đ) Performing other tasks and powers as prescribed in this Decree and relevant laws.

3. Provincial People's Committees shall be responsible for:

a) Approving the proposal for establishing the Land Development Fund and issuing the establishment decision and Charter of organization and operation of the Land Development Fund as prescribed in this Decree.

b) Strengthening the organizational structure, amending and supplementing the establishment decision, Charter of organization and operation, and adjusting entrusted and entrusted activities of the Land Development Fund as prescribed in this Decree.

c) Submitting to the same-level People's Council for decision on the initial charter capital and additional charter capital provided to the Land Development Fund as prescribed in this Decree.

d) Issuing regulations on authority, procedures for preparing, consolidating, and approving the Capital Loan Plan from the Land Development Fund; regulations on authority to decide on capital loans from the Land Development Fund.

đ) Being responsible for managing the use of operating capital of the Land Development Fund, ensuring that capital loans are used for their intended purposes, effectively, and in accordance with the law.

e) Inspecting, auditing, and handling violations related to the Land Development Fund.

g) Reporting to the Ministry of Finance on the organization and operation situation annually; the deadline for submitting the report is before March 31 of the following year.

h) Perform other tasks and powers as prescribed in this Decree and relevant laws.

Article 27. Effective Date

1. This Decree shall take effect from August 1, 2024.

2. Decision No. 40/2010/QD-TTg dated May 12, 2010 of the Prime Minister on the issuance of the Model Regulation on management and use of the Land Development Fund shall cease to be effective from the date this Decree takes effect.

3. In cases where the legal normative documents referred to in this Decree are amended, supplemented, or replaced, they shall be implemented according to the corresponding provisions in the amending, supplementing, or replacing documents.

4. Organizations and individuals who abuse their positions or powers for personal gain; embezzle, commit corruption, waste, or engage in malpractice; intentionally violate regulations causing loss of State funds and property in the operation of the Land Development Fund shall be subject to disciplinary action, administrative penalties, or criminal prosecution according to the provisions of the law depending on the nature and severity of the violation.

5. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities, and Heads of related agencies, organizations, and units shall be responsible for implementing this Decree.

ANNEX

(Attached to Decree No. 104/2024/NĐ-CP dated July 31, 2024 of the Government)

WITHDRAWAL OF FUNDS

Project name: ...

Account: ... At the supervisory and settlement agency: ...

Check number, Contract number: ...

Check number, Settlement contract number: ...

Based on the Request for Refund of Advance Payment to the Land Development Fund No. ... dated .../.../...