DECREE

Article 24Providing detailed regulations on certain provisions of the Law on Cooperatives

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Pursuant to the Law on Organization of the State Administration dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the State Administration and the Law on Organization of Local State Administration dated November 22, 2019;

Based on the Law on Cooperatives dated June 20, 2023;

At the proposal of the Minister of Planning and Investment;

The Government promulgates this Decree providing detailed provisions on certain articles of the Atomic Energy Law regarding nuclear power plants and research nuclear reactors. of The Law on Cooperatives.

 

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree provides detailed regulations on certain provisions of the Law on Cooperatives regarding:

1. Classification of cooperative scale.

2. Criteria for selection, target groups, contents, levels of support, sources of funding, and implementation of State policies on supporting the development of cooperative groups, cooperatives, and cooperative unions.

3. Conditions for cooperatives and cooperative unions to establish enterprises, contribute capital, purchase shares to participate in enterprises.

4. Conditions for cooperatives and cooperative unions to carry out internal lending activities and loan amounts, lending limits, interest rates, and risk management from internal lending activities.

5. Internal transactions and income from internal transactions.

6. Asset handling when cooperatives and cooperative unions are dissolved or bankrupt.

Article 2. Applicability

1. Cooperative groups, cooperatives, cooperative unions.

2. Members of cooperative groups, cooperatives, cooperative unions.

3. Relevant agencies, organizations, and individuals.

Article 3. Explanation of Terms

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

1. Infrastructure includes infrastructure in sectors and fields such as education, training, and vocational education; science and technology; health, population, and family; social welfare; culture and information; broadcasting, television, and news agencies; physical education and sports; environmental protection; agriculture, forestry, salt industry, water conservancy, and fisheries; industry; transportation; industrial parks, economic zones, and clusters of industries; trade; water supply and drainage; tourism; postal services; information technology, and other infrastructure as prescribed by law, which are invested in, constructed, and developed to serve the common interests of the community and people.

2. Equipment includes machinery, equipment, and production lines, wherein: machinery and equipment consist of complete structures comprising parts, sub-assemblies, and components interconnected to operate and move according to their intended use as designed; production lines are systems of machinery, equipment, tools, and means arranged and connected in a continuous manner at a specific location according to a design diagram and process, ensuring synchronized operation for production.

Chapter II

CLASSIFICATION OF COOPERATIVES

Article 4. Fields of activity and criteria for classifying cooperatives

1. Fields of activity of cooperatives:

The field of activity of a cooperative is determined based on the main business sector registered with the business registration authority. The field of activity of a cooperative is classified into four categories based on economic sectors as defined by the law on statistics as follows:

a) Agricultural sector including the following industries: primary agriculture, forestry, and fisheries; salt mining;

b) Industry and construction sector including the following primary industries: mining (excluding salt mining); processing and manufacturing; electricity, gas, hot water, steam, and air conditioning production and distribution; water supply; waste management and wastewater treatment; construction;

c) Financial, banking, and insurance sector including the following primary industry: financial, banking, and insurance activities;

d) Trade and service sector and other sectors including the following primary industries: wholesale and retail trade, repair of motor vehicles, motorcycles, bicycles, and other motorized vehicles; warehousing and transportation; accommodation and food services; information and communication; real estate business; professional, scientific, and technical activities; administrative and support service activities; education and training; health care and social assistance; arts, entertainment, and recreation; other service activities.

2. Criteria for classifying the scale of cooperatives:

a) The number of regular members of the cooperative is determined as of December 14 of the preceding year and updated in the National Information System on Cooperatives in accordance with the law on the content of information, updating, exploitation, and management of the National Information System on Cooperatives;

b) The total capital of the cooperative is determined based on the annual financial report submitted by the cooperative to the tax administration authority in accordance with the law on taxation. In cases where the cooperative has been operating for less than one year and has not yet submitted an annual financial report to the tax administration authority, the total capital is determined based on the registered charter capital recorded on the Certificate of Cooperative Registration;

c) The annual revenue of the cooperative is the total revenue from selling goods, providing services, and other income of the cooperative as determined in the annual financial report submitted by the cooperative to the tax administration authority in accordance with the law on taxation. In cases where the cooperative has been operating for less than one year or more than one year but has no revenue, the cooperative shall determine its scale based on the total capital criteria stipulated in point b of this clause.

Article 5. Classification of Cooperative Scale

Based on the fields of operation specified in Clause 1 of Article 4 of this Decree, cooperatives are classified into large, medium, small, and micro scales based on the criteria of the number of official members and one of the two criteria of annual revenue or total capital as stipulated in Clause 2 of Article 4 of this Decree, as follows:

1. Classification of cooperatives in the agricultural field:

a) Large-scale cooperatives have 300 official members or more and annual revenue of 50 billion VND or more or total capital of 10 billion VND or more;

b) Medium-scale cooperatives have 200 official members or more and annual revenue of 10 billion VND or more or total capital of 5 billion VND or more;

c) Small-scale cooperatives have 50 official members or more and annual revenue of 2 billion VND or more or total capital of 1 billion VND or more;

d) Micro-scale cooperatives include cooperatives that do not fall under the cases specified in points a, b, and c of this clause.

2. Classification of cooperatives in the industry-construction field:

a) Large-scale cooperatives have 100 official members or more and annual revenue of 80 billion VND or more or total capital of 20 billion VND or more;

b) Medium-scale cooperatives have 50 official members or more and annual revenue of 15 billion VND or more or total capital of 10 billion VND or more;

c) Small-scale cooperatives have 20 official members or more and annual revenue of 3 billion VND or more or total capital of 2 billion VND or more;

d) Micro-scale cooperatives include cooperatives that do not fall under the cases specified in points a, b, and c of this clause.

3. Classification of cooperatives in the financial-banking-insurance field:

a) Large-scale cooperatives have 1,000 official members or more and annual revenue of 200 billion VND or more or total capital of 50 billion VND or more;

b) Medium-scale cooperatives have 500 official members or more and annual revenue of 100 billion VND or more or total capital of 20 billion VND or more;

c) Small-scale cooperatives have 100 official members or more and annual revenue of 50 billion VND or more or total capital of 10 billion VND or more;

d) Micro-scale cooperatives include cooperatives that do not fall under the cases specified in points a, b, and c of this clause.

4. Classification of cooperatives in the trade-service and other fields:

a) Large-scale cooperatives have 200 official members or more and annual revenue of 100 billion VND or more or total capital of 20 billion VND or more;

b) Medium-scale cooperatives have 100 official members or more and annual revenue of 20 billion VND or more or total capital of 10 billion VND or more;

c) Small-scale cooperatives have 20 official members or more and annual revenue of 5 billion VND or more or total capital of 2 billion VND or more;

d) Micro-scale cooperatives include cooperatives that do not fall under the cases specified in points a, b, and c of this clause.

5. In case a cooperative meets the criteria for classification at multiple levels, the scale of the cooperative will be determined according to the highest level.

6. The classification of cooperative scale shall be implemented and recorded in the National Information System on Cooperatives.

Chapter III

NATIONAL POLICY

ON SUPPORTING THE DEVELOPMENT OF COLLECTIVE ECONOMIES, COOPERATIVES, AND COOPERATIVE UNIONS

ASSOCIATION OF COOPERATIVES

Article 6. Criteria for Enjoying State Support Policies

1. Cooperatives and cooperative unions are eligible to enjoy state support policies when they meet the following criteria:

a) Criteria as prescribed in point a of Clause 1 of Article 18 of the Law on Cooperatives;

b) Meeting one of the following criteria at the time of submitting the application for support needs: the number of members has increased over the last two consecutive years prior to the year of application; the internal transaction value ratio has increased in the year immediately preceding the year of application; the general reserve fund ratio is higher than the minimum level prescribed in Article 84 of the Law on Cooperatives in the year immediately preceding the year of application; the value of non-divisible assets has increased in the year immediately preceding the year of application; at least 5% of the total members or employees have participated in education, training, dissemination, enhancement, and training courses organized by the cooperative or cooperative union or by other organizations and have received certification of participation or have been listed in the attendance list with the seal of the cooperative or cooperative union (for courses organized by the cooperative or cooperative union, the cooperative or cooperative union must have a plan for organizing the course, the content of the course, and a list of participants signed by the participants) up to the year immediately preceding the year of application; established within no more than 36 months in economically disadvantaged areas or extremely economically disadvantaged areas as prescribed by investment laws at the time of application;

c) In case a cooperative or cooperative union applies for state budget support worth 3 billion VND or more, it must provide audited financial statements of the previous year at the time of application.

2. Collective economies are eligible to enjoy state support policies when they meet the following criteria:

a) Criteria as prescribed in point a of Clause 2 of Article 18 of the Law on Cooperatives;

b) Criteria as prescribed in point b of Clause 2 of Article 18 of the Law on Cooperatives;

c) Meet one of the following criteria at the time of submitting the application for support needs: the number of members has increased for two consecutive years immediately preceding the year of submitting the application for support needs; at least 5% of the total number of members and workers have participated in training courses organized by the cooperative itself or by other agencies, organizations, and have received certificates of participation or there is a list of members and workers participating in the course with confirmation from the cooperative (for courses organized by the cooperative, the cooperative must have a plan for organizing the course, the content of the course, and a list of courses signed by the participants) up to the year immediately preceding the year of submitting the application for support needs; established not more than thirty-six months on difficult socio-economic areas or extremely difficult socio-economic areas according to the investment law regulations at the time of submitting the application for support needs.

3. In cases where multiple cooperatives, cooperatives, and cooperative unions meet the provisions of Clause 1 and Clause 2 of this Article, the selection criteria for cooperatives, cooperatives, and cooperative unions shall be determined in the following order of priority: More number of members; more number of members with disabilities; more number of members from ethnic minorities; more number of members and workers participating in mandatory social insurance and voluntary social insurance; having women in management positions, having more female members or using more female labor; operating in difficult socio-economic areas or extremely difficult socio-economic areas according to the law; participating in value chains, industry clusters, green economy, circular economy, knowledge-based economy, organic agriculture, climate change adaptation, digital transformation for sustainable development goals; organizing or participating in community benefit activities.

Article 7. Support Policies for Developing Human Resources

1. Support Objectives:

a) Higher education institutions that implement content on collective economic training; theoretical political training institutions, state management training institutions;

b) Members and workers currently working in cooperatives, cooperatives, and cooperative unions meeting the criteria stipulated in Article 6 of this Decree and are nominated by the cooperatives, cooperatives, and cooperative unions to participate in training and capacity building programs consistent with the course content;

c) Officials, civil servants, and employees responsible for collective economic affairs at central ministries, agencies, and localities;

d) Officials, civil servants, employees of the Vietnam Confederation of Labor Cooperatives, the Vietnam Fatherland Front, associations, mass organizations, political-social organizations;

đ) Researchers, lecturers on collective economics in scientific research, educational, and training institutions;

2. Content of support:

a) Supporting funding for compiling, developing, and issuing programs and textbooks on collective economics for use in higher education institutions, theoretical political training, and state management training;

b) Supporting funding for developing and implementing domestic and international training and capacity building programs in accordance with relevant laws to enhance the capabilities of officials, civil servants, and employees involved in developing collective economies and members and workers employed in cooperatives, cooperatives, and cooperative unions;

c) The capacity building program on specialized knowledge, skills, professional techniques is implemented through direct and online forms. Implementing the capacity building content according to a suitable knowledge framework in line with the overall program on developing collective economies;

d) Supporting travel, food, and accommodation expenses for members and workers of cooperatives, cooperatives, and cooperative unions participating in domestic training and capacity building sessions on specialized knowledge, skills, professional techniques;

đ) Wages, bonuses, and benefits for workers who graduate from college, university, and postgraduate studies working in cooperatives, cooperatives, and cooperative unions;

e) Building and implementing communication programs to raise awareness and knowledge of management and business operations of cooperatives, cooperatives, and cooperative unions appropriate to each sector, field, and area;

g) International cooperation in regular training on collective economics in accordance with the law on education;

3. State budget support funds:

a) The state budget supports up to 100% of the costs for developing and implementing training and capacity building programs;

b) The state budget supports up to 100% of tuition fees and study materials as prescribed by the training institution; supports living expenses for trainees at least 1.5 times the minimum wage level in the region where the course is held for members and workers in cooperatives, cooperatives, and cooperative unions when participating in domestic courses. For overseas training courses, members and workers in cooperatives, cooperatives, and cooperative unions are supported by the state as for officials, civil servants, and employees;

c) The state budget pays 100% of the costs for civil servants and employees of state management agencies for collective economics, the Vietnam Confederation of Labor Cooperatives, associations, political organizations, political-social organizations, and lecturers participating in training and capacity building;

d) Local budgets support each worker employed in collective economic organizations as stipulated in point đ of Clause 2 of this Article monthly at least 1.5 times the minimum wage level set by the Government for each period;

đ) The specific amount of support for each policy is decided by central ministries, agencies, People's Councils at all levels or submitted to competent authorities for consideration and decision in accordance with the priorities and resource balancing capabilities in each period and the provisions of the law.

Article 8. Information Support Policy

1. Supported objects: cooperatives, cooperative unions.

2. Content of support:

a) Information published on the National Cooperative Information Portal includes: information on the Registration Certificate of cooperative groups, cooperatives, cooperative unions; information on plans, programs, projects, support activities for cooperative groups, cooperatives, cooperative unions; business guidance information; information on credit, market, products, technology; information on policies and laws of the Party and State related to collective economic sectors; other information according to the needs of cooperative groups, cooperatives, cooperative unions in compliance with legal regulations.

b) Cooperative groups, cooperatives, cooperative unions are provided with information on support policies on the National Cooperative Information Portal.

c) Ministries, central agencies, provincial People's Committees are granted accounts on the National Cooperative Information Portal to implement the provision and update of support information for cooperative groups, cooperatives, cooperative unions. Accounts used on the National Cooperative Information Portal are centrally managed on the National Cooperative Information Portal.

d) The National Cooperative Information Portal integrates data from the information systems and databases of ministries, central agencies, provincial People's Committees to provide support information for cooperative groups, cooperatives, cooperative unions and other information for enterprises, organizations, individuals seeking to access such information.

3. State budget support funds:

a) The state budget supports up to 100% of the costs to implement the policies stipulated in this Article.

b) The specific level of financial support for each policy is reviewed and decided upon by ministries, central agencies, People's Councils at all levels, or submitted to competent authorities for review and decision-making in accordance with priority directions and resource balancing capabilities during each period and legal provisions.

Article 9. Policy to Support the Establishment of a Network Providing Advisory Services

1. Support Objectives:

a) Cooperative groups, cooperatives, cooperative unions.

b) Individuals and organizations participating in advisory services for cooperative groups, cooperatives, cooperative unions.

2. Content of support:

a) Support for the establishment and enhancement of capacity for the network providing advisory services for cooperative groups, cooperatives, cooperative unions including: the Vietnam Federation of Cooperatives; relevant public service units; other individuals and organizations participating in advisory services for cooperative groups, cooperatives, cooperative unions.

b) Cooperative groups, cooperatives, cooperative unions have access to the advisory network to receive support in using advisory services regarding human resources, finance, production, sales, markets, internal management, and other contents related to their production and business activities (excluding administrative and legal advisory services as prescribed by specialized laws).

3. State budget support funds:

a) The state budget supports up to 100% of the costs to implement the content stipulated in point a, Clause 2 of this Article.

b) The specific level of financial support for each policy is reviewed and decided upon by ministries, central agencies, People's Councils at all levels, or submitted to competent authorities for review and decision-making in accordance with priority directions and resource balancing capabilities during each period and legal provisions.

Article 10. Policy to Support the Expansion of Effective Cooperative and Cooperative Union Models

1. Support Objectives:

a) Cooperatives and cooperative unions operating effectively according to criteria approved by competent authorities.

b) Cooperative groups, cooperatives, cooperative unions desiring to learn from effective cooperative and cooperative union models.

2. Content of support:

a) Prioritize support to consolidate and improve effective cooperatives and cooperative unions.

b) The content of support for cooperatives and cooperative unions wishing to learn from effective models includes: organizing conferences and seminars to disseminate experience; field visits and surveys; advisory services and planning for production and business operations.

3. State budget support funds:

a) The state budget supports up to 100% of the costs to implement the policies stipulated in this Article.

b) The specific level of financial support for each policy is reviewed and decided upon by ministries, central agencies, People's Councils at all levels, or submitted to competent authorities for review and decision-making in accordance with priority directions and resource balancing capabilities during each period and legal provisions.

Article 11. Policy on Supporting the Application of Science and Technology, Innovation, and Digital Transformation

1. Supported objects: cooperatives, cooperative unions.

2. Content of support:

a) Consulting solutions for digital transformation in business processes, management processes, production processes, technological processes, and business model transformation;

b) Leasing or purchasing digital transformation solutions to automate and enhance the efficiency of business processes, management processes, production processes, technological processes for cooperatives, cooperatives, cooperative unions, and business model transformation;

c) Consulting on establishing intellectual property rights; consulting on managing and developing protected intellectual property products and services; consulting on technology transfer;

d) The State develops some software and applications serving production and business for cooperatives, cooperatives, cooperative unions to use jointly without charge;

đ) Building websites for cooperatives, cooperative unions and connecting them with the National Information System on Cooperatives;

3. State budget support funds:

a) The state budget supports up to 100% of the costs to implement the policies stipulated in this Article.

b) The specific level of financial support for each policy is reviewed and decided upon by ministries, central agencies, People's Councils at all levels, or submitted to competent authorities for review and decision-making in accordance with priority directions and resource balancing capabilities during each period and legal provisions.

Article 12. Policy on Supporting Access to and Market Research

1. Supported objects: cooperatives, cooperative unions.

2. Content of support:

a) Cooperatives, cooperative unions are provided with information on legal and economic matters; market surveys and research; forecasts and warnings about trade defense measures applied to Vietnamese export goods on the National Cooperative Information Portal and the websites of ministries, agencies at the ministerial level, government agencies, central bodies of associations and mass organizations, provincial People's Committees;

b) Supporting funding to participate in trade fairs, exhibitions, forums, and promotional activities organized by ministries, sectors, and localities both domestically and internationally;

c) Supporting funding to establish quality certifications, build brands, trademarks, origin labels, and traceability systems;

d) Supporting funding to apply and certify standards to develop markets for cooperatives, cooperative unions that have contractual linkages forming raw material regions, production, and product consumption;

đ) Supporting costs for renting locations and operating product introduction and sales points in various localities;

e) Supporting funding to build, implement, and participate in electronic commerce platforms;

g) Prioritizing and supporting funding to participate in programs for locally sourced products, goods, and services with distinctive economic, cultural, and local advantages;

3. State budget support funds:

a) The state budget supports up to 100% of the funding for participating in domestic trade fairs and exhibitions; rental costs and operation of product introduction and sales points for collective economic organizations;

b) The state budget supports up to 100% of the funding for participating in international trade fairs and exhibitions; organizing collective economic forums; supporting registration for quality certification, brand building, trademark establishment, origin labeling; building and implementing electronic commerce platforms;

c) The specific amount of support for each policy is determined by ministries, central agencies, People's Councils at all levels, or submitted to competent authorities for consideration and decision-making in accordance with priority directions and resource balancing capabilities during each period and relevant laws;

Article 13. Policy on Supporting Investment in Infrastructure Development and Equipment

1. Supported objects: cooperatives, cooperative unions.

2. Content of Support: Investing in infrastructure and equipment for cooperatives, cooperative unions to serve production and business activities, social welfare, environmental protection, adaptation to climate change, forming production chains, providing processing services, and product consumption;

3. Sources of Support: state budget; preferential credit capital; legally raised and sponsored capital from individuals and organizations within and outside the country;

4. Forms and Levels of Support:

a) Supporting investment in infrastructure development and equipment for cooperatives, cooperative unions from public investment capital is implemented through programs and projects according to the law on public investment. Projects may include multiple infrastructure and equipment facilities supporting cooperatives, cooperative unions across various industries and fields; project classification criteria follow the law on public investment, where projects involving multiple fields are classified based on the largest proportion of capital. Public investment support can reach up to 100% of the total project investment cost, with specific support levels for each project decided by the authority approving the investment proposal or directly approving the investment for projects not requiring approval of the investment proposal, in line with priority directions and public investment capital balancing capabilities during each period;

b) Supporting investment in infrastructure development and equipment for cooperatives, cooperative unions from the state budget, preferential credit capital, legally raised and sponsored capital from individuals and organizations within and outside the country is carried out according to relevant laws;

5. Regulations on Support from Public Investment Capital:

Based on the direction and priority of support for industry and field development, the ability to balance public investment capital in each five-year phase, and the need for support in infrastructure and equipment development for cooperatives, cooperative unions:

a) Ministries and central agencies allocate public investment capital under their management to programs and projects investing in infrastructure and equipment managed by themselves in accordance with principles, criteria, and allocation standards for public investment capital from the state budget during each mid-term public investment plan phase;

b) Provincial People's Committees utilize and allocate public investment capital under their management, including additional targeted capital from higher-level budgets, to programs and projects investing in infrastructure and equipment managed by the province in accordance with principles, criteria, and allocation standards for public investment capital from the state budget during each mid-term public investment plan phase;

6. Procedures for Aggregating Requests for Support in Infrastructure and Equipment Development Using Public Investment Capital Managed by Ministries and Central Agencies:

a) On the basis of principles, criteria, and allocation standards for state budget capital investment for the subsequent phase set by the competent authority and the directive on the preparation of the medium-term public investment plan for the subsequent phase issued by the Prime Minister, ministries and central agencies shall issue guidance to cooperatives, cooperative unions, and cooperative groups to determine their needs and propose support for the development of infrastructure and equipment from public investment capital managed by ministries and central agencies within the subsequent phase's public investment plan;

b) Based on the registered demand for investment support for the development of infrastructure and equipment from public investment capital by cooperatives, cooperative unions, and cooperative groups, within ten days from receiving the proposal document, ministries and central agencies shall review and provide comments in writing to cooperatives, cooperative unions, and cooperative groups regarding the suitability of the proposal according to the regulations on principles, beneficiaries, criteria, conditions for benefit receipt, and sectoral development orientation during the phase. In cases where the proposal is consistent with the principles, beneficiaries, criteria, conditions for benefit receipt, and sectoral development orientation during the phase, ministries and central agencies shall incorporate the support needs of cooperatives, cooperative unions, and cooperative groups into their proposed medium-term public investment plan for the subsequent phase;

c) Ministries and central agencies shall notify the provincial People's Committees managing the support needs of cooperatives, cooperative unions, and cooperative groups mentioned in point b of this clause via Model No. 03 attached to this Decree. If the results of the aggregated support needs of ministries and central agencies coincide with the results of the aggregated needs mentioned in point b of Clause 7 of this Article or are not clearly defined, the provincial People's Committee shall notify ministries and central agencies to coordinate in handling according to the provisions of Clause 3 of Article 17 of the Cooperative Law;

d) After coordinating with the provincial People's Committee managing the registration of demands of cooperatives, cooperative unions, and cooperative groups as mentioned in point c of this clause, ministries and central agencies shall instruct subordinate specialized agencies to prepare reports proposing investment policies for infrastructure and equipment programs and projects for cooperatives, cooperative unions, and cooperative groups according to the provisions of Clause 8 of this Article;

7. The process of aggregating demands for investment support for infrastructure and equipment using public investment capital managed by provincial People's Committees:

a) On the basis of principles, criteria, and allocation standards for state budget capital investment for the subsequent phase set by the competent authority and the directive on the preparation of the medium-term public investment plan for the subsequent phase issued by the Prime Minister, provincial People's Committees shall guide relevant agencies and units to guide cooperatives, cooperative unions, and cooperative groups within their jurisdiction to determine their needs and propose support for the development of infrastructure and equipment from public investment capital managed by localities within the subsequent phase's public investment plan;

b) Based on the registered demand for investment support for the development of infrastructure and equipment from public investment capital by cooperatives, cooperative unions, and cooperative groups under management from the source of public investment capital, within ten working days from receiving the proposal document from the directly subordinate commune People's Committee, the district People's Committee shall review and provide comments in writing to cooperatives, cooperative unions, and cooperative groups regarding the suitability of the proposal according to the regulations on principles, beneficiaries, criteria, conditions for benefit receipt, and sectoral development orientation during the phase. In cases where the proposal is consistent with the principles, beneficiaries, criteria, conditions for benefit receipt, and sectoral development orientation during the phase, the district People's Committee shall aggregate the support needs of cooperatives, cooperative unions, and cooperative groups under its management and send a document to the Provincial Department of Planning and Investment;

c) Based on the registered support needs of the district People's Committee, the Provincial Department of Planning and Investment shall report to the provincial People's Committee to assign subordinate specialized agencies or the district People's Committee to prepare reports proposing investment policies for projects supporting infrastructure and equipment for cooperatives, cooperative unions, and cooperative groups according to the provisions of Clause 8 of this Article;

8. The establishment, examination, decision-making on investment policies, establishment, examination, decision-making on investment, and assignment of medium-term and annual public investment plans from the central budget for programs and projects specified in Clauses 6 and 7 of this Article shall be carried out in accordance with laws on public investment and other related laws. In cases where programs and projects supporting the development of infrastructure and equipment for cooperatives, cooperative unions, and cooperative groups managed by provincial People's Committees are implemented in the same district and the district People's Committee meets the requirements for experience and management capacity, the Chairman of the provincial People's Committee may consider and decide to entrust the district People's Committee as the project sponsor;

9. Implementation methods and post-investment management mechanisms:

a) For public investment projects for infrastructure and equipment exclusively used by one cooperative, cooperative union, or cooperative group: state agencies implementing the project shall transfer the project to the cooperative, cooperative union, or cooperative group for use. The cooperative, cooperative union, or cooperative group shall bear the costs for operation, maintenance, and repair of the facilities and assets after they have been transferred. These costs shall be included in the production and business expenses of the cooperative, cooperative union, or cooperative group;

b) For public investment projects for infrastructure and equipment jointly used by two or more cooperatives, cooperative unions, or cooperative groups: state agencies implementing the project shall examine and consider assigning or delegating to state units with management functions according to the law.

c) Infrastructure works and equipment that the cooperative group, cooperative, or cooperative federation receives support for are common assets of the cooperative group members, non-divisible common assets of the cooperative, or cooperative federation.

10. For investment support projects to develop infrastructure and equipment funded entirely from local government budgets, the procedures for planning, reviewing, deciding on investment policies, making investment decisions, and allocating medium-term and annual capital plans shall be carried out in accordance with laws on public investment, principles, criteria, and budget allocation standards set by competent authorities, and regulations of all levels of People's Councils.

11. For investment support projects to develop infrastructure and equipment under national target programs, the procedures for planning, reviewing, making investment decisions, and allocating medium-term and annual capital plans shall be carried out in accordance with laws on public investment, management mechanisms, implementation regulations of national target programs, and regulations of all levels of People's Councils.

Article 14. Transfer of State-owned infrastructure works, public works, and other infrastructure facilities

1. The transfer of State-owned infrastructure works, public works, and other infrastructure facilities to a cooperative group, cooperative, or cooperative federation means allowing these entities to manage and use such assets through asset utilization methods and forms stipulated by laws on the management and use of state assets and related laws.

2. Principles of transfer:

a) The transferred state assets must be lawful, without disputes, claims, or litigation, not currently leased, lent, borrowed, mortgaged, pledged, guaranteed, or secured against any debt obligations;

b) Ministries, central agencies, People's Committees at all levels with authority, or those authorized to transfer state assets to cooperative groups, cooperatives, or cooperative federations for management and use shall do so in accordance with laws on the management and use of state assets and related laws.

3. Cooperative groups, cooperatives, or cooperative federations may be considered for receiving transfers to manage, use, and exploit infrastructure assets in accordance with laws on the management and use of state assets and related laws.

4. Cooperative groups, cooperatives, or cooperative federations may be considered for receiving transfers of certain public works and other infrastructure facilities to serve as offices, warehouses, retail stores for product display and promotion, supporting production and business activities in accordance with laws on the management and use of state assets and related laws.

5. Procedures for implementing transfers and managing, using, and exploiting transferred assets as stipulated in Clauses 3 and 4 of this Article shall be carried out in accordance with laws on the management and use of state assets and related laws.

Article 15. Financial Advisory Support and Risk Assessment Policies

1. Support Objectives:

a) Cooperative groups, cooperatives, cooperative unions.

b) Representative organizations of cooperative groups, cooperatives, or cooperative federations; the Vietnam Cooperative Alliance system.

2. Content of support:

b) The State supports funding for representative organizations of cooperative groups, cooperatives, or cooperative federations, and the Vietnam Cooperative Alliance system in conducting risk assessments, financial advisory services, internal control and internal audit advisory services for cooperative groups, cooperatives, or cooperative federations through approved projects and programs consistent with state budget laws.

a) Supporting part of the auditing costs incurred by small and very small cooperatives when they hire independent auditing organizations to conduct financial statement audits for the immediately preceding year, provided that the State provides support with funding of VND 3 billion or more. The scale of the cooperative is determined at the time of submitting the application for support according to the classification criteria stipulated in Clause 2, Article 4 of this Decree.

3. State budget support funds:

a) The state budget supports up to 100% of the costs to implement the policies stipulated in this Article.

b) The specific level of financial support for each policy is reviewed and decided upon by ministries, central agencies, People's Councils at all levels, or submitted to competent authorities for review and decision-making in accordance with priority directions and resource balancing capabilities during each period and legal provisions.

Article 16. Support Policy for Activities in the Agricultural Sector

1. Supported Objectives: cooperatives, cooperative unions operating in the agricultural sector.

2. Content of support:

In addition to enjoying support policies stipulated in Articles 7, 8, 9, 10, 11, 12, 13, 14, and 15 of this Decree, cooperatives, cooperative unions operating in the agricultural sector shall also enjoy the following supports:

a) Financial support, seeds, equipment applying science and technology when cooperatives, cooperative unions transition to sustainable production, organic agriculture, and climate change adaptation according to projects and programs approved by competent authorities in accordance with budget management levels.

b) Cost support for infrastructure construction in raw material areas when cooperatives, cooperative unions contribute capital through land use rights or lease land, water bodies from organizations, households, individuals to form concentrated agricultural production areas: constructing irrigation works, internal roadways in crop cultivation, forestry, salt industry sectors (including culverts, pumping stations, wells, water pipelines, dams, canals, reservoirs, structures on canals and embankments, primary water supply systems for efficient irrigation, main internal roadways, firebreak roads, forest roads); constructing infrastructure for aquaculture and marine farming areas including primary water supply and drainage systems (ponds, reservoirs, culverts, canals, water supply and drainage pipelines, pumping stations), dykes, revetments, roads, common wastewater treatment facilities for aquaculture areas; buoy markers, boundary warning lights for farming zones, mooring and floating cage systems, upgrading and developing concentrated floating cage farming systems; constructing infrastructure for concentrated livestock farming areas including: roads, common wastewater treatment facilities for concentrated livestock farming areas, housing and breeding facilities.

3. The source of financial support from the state budget, the level of support, procedures for implementing public investment projects, methods of support, and post-investment management mechanisms for projects supporting infrastructure construction as specified in point b, Clause 2, Article 16 of this Decree shall be implemented in accordance with the provisions of Clauses 3, 4, 5, 6, 7, 8, 9, 10, and 11 of Article 13 of this Decree.

Article 17. Support Procedures

1. Cooperatives, cooperative unions submit one set of registration documents for support needs to the People's Committee of the commune where the cooperative has its transaction address or where the cooperative union has its headquarters.

2. Registration documents for support needs include:

a) A support need registration form containing a commitment not to violate prohibited acts as stipulated in Clause 2, Article 7 of the Cooperative Law, and not during the period of serving a criminal sentence according to Model No. 01 attached to this Decree;

b) Relevant documents and files demonstrating compliance with beneficiary criteria as stipulated in points b and c, Clause 1; point a and c, Clause 2; Clause 3, Article 6 of this Decree. These relevant documents and files are copies;

c) For support related to infrastructure investment, equipment transfer, and other public facilities from the State to cooperatives, cooperative unions, there must be minutes of meetings signed by all members of the cooperative with unanimous agreement, or resolutions of the Management Board for cases where cooperatives, cooperative unions are organized with full management structures, or resolutions of the Member Assembly for cases where cooperatives, cooperative unions are organized with simplified management structures.

3. Submission of Documents:

a) Cooperatives, cooperative unions may submit documents directly, send them via postal services, or through electronic means;

b) In cases where cooperatives, cooperative unions submit documents through electronic means, the acceptance and processing of administrative procedures shall be carried out in accordance with laws on administrative procedures in electronic environments.

4. Commune People's Committee:

a) Within ten days from receiving the documents, the Commune People's Committee shall notify cooperatives, cooperative unions about the receipt of their documents according to Model No. 02 attached to this Decree;

b) Before May 31 each year (or upon request of competent state agencies), it shall compile the support needs of cooperatives, cooperative unions within its jurisdiction and submit them to the District People's Committee for consolidation as a basis for competent authorities to consider and provide support;

c) If the commune has the capacity and resources to provide support, the Commune People's Committee shall directly examine and implement support for cooperatives, cooperative unions within its authority.

5. District People's Committee:

a) It shall consolidate support needs for cooperatives, cooperative unions submitted by the Commune People's Committees;

b) It shall provide information to agencies and units capable of providing support when requested, or report to the Provincial People's Committee before June 30 each year for consideration of support;

c) If it has the capacity and resources, the District People's Committee shall directly examine and implement support for cooperatives, cooperative unions within its authority.

6. The establishment, review, approval of investment proposals, approval of investment decisions, and handover of support projects for cooperatives, cooperative unions shall be carried out in accordance with laws on public investment, state budget, and related laws, and the following provisions:

a) Documents submitted to competent authorities for approval of investment proposals and investment decisions must include unified documents from cooperatives, cooperative unions regarding the content of support related to those cooperatives, cooperative unions;

b) Members of the Community Investment Supervision Board: in addition to the components as stipulated in Clause 1, Article 17 of Government Decree No. 59/2023/NĐ-CP dated August 14, 2023 detailing certain provisions of the Law on Implementing Grassroots Democracy, at least two representatives of supported cooperatives, cooperative unions must be added.

c) The handover dossier for infrastructure and equipment after investment must include the acceptance approval document of the cooperative groups, cooperatives, and cooperative unions.

d) For comprehensive projects supporting collective economic entities at the provincial level that utilize central government budget funds: implementation shall be carried out in accordance with the provisions of Article 13 of this Decree.

7. The preparation of the budget estimate and the execution of support contents for cooperative groups, cooperatives, and cooperative unions using regular expenditure funds shall be conducted in accordance with the laws on state budget.

8. For subjects such as state agencies, organizations, associations, and mass organizations assigned tasks; civil servants, public officials, employees working in these agencies, organizations, associations, and mass organizations according to the support policies stipulated in Articles 7, 9, and 15 of this Decree: the support procedures shall be implemented in accordance with the laws on civil servants, public officials, and employees and relevant laws.

9. Payment and settlement dossiers for state budget funds supporting cooperative groups, cooperatives, and cooperative unions shall be carried out in accordance with the laws on state budget.

10. Cooperative groups, cooperatives, and cooperative unions shall bear full responsibility under the law for the accuracy and honesty of the information provided in the registration dossier for support needs as stipulated in Clause 2 of this Article.

11. When the competent authority implementing support activities discovers that the information provided by cooperative groups, cooperatives, and cooperative unions is not honest and violates commitments in the Application for Support Needs Registration, the cooperative groups, cooperatives, and cooperative unions selected to benefit from the policy will have their policy implementation suspended and be subject to legal sanctions.

Chapter IV

ASSETS AND FINANCES OF COOPERATIVES AND COOPERATIVE UNIONS

Article 18. Conditions for establishing enterprises, contributing capital, purchasing shares to participate in enterprises by cooperatives and cooperative unions

Cooperatives and cooperative unions may establish enterprises, contribute capital, purchase shares to participate in enterprises with the aim of supporting their operations, linkages, consumption, and utilization of products and services when meeting the following conditions:

1. The business sector of the enterprise being established, contributing capital, or purchasing shares must be related to the production and business sectors registered with the business registration agency by the cooperatives and cooperative unions.

2. Management of the capital for establishing enterprises, contributing capital, or purchasing shares must be approved by the General Assembly of Members in accordance with the Law on Cooperatives and relevant laws.

3. Management and use of income derived from the established enterprise, contributed capital, or purchased shares must be approved by the General Assembly of Members, specifying the proportion of the general reserve fund to be set aside from this income in accordance with the Law on Cooperatives and relevant laws.

Article 19. Internal lending activities within cooperatives and cooperative unions

1. Cooperatives and cooperative unions may conduct internal lending activities when meeting the following conditions:

a) Sources of internal lending include: remaining income after fulfilling tax obligations, financial obligations, loss handling, setting up various reserves, and distributing profits to members as prescribed by the Law on Cooperatives, subscribed capital, other sources of own capital but not exceeding 30% of the recorded own capital in the annual financial report of the cooperative or cooperative union submitted to the tax management agency of the previous year.

b) Internal lending must be approved by the General Assembly of Members and stipulated in the Charter, including key contents such as management and inspection of internal lending; risk management measures; compensation measures for damages caused by violations of cooperative regulations during internal lending activities.

c) The conditions prescribed in point a and c of Clause 2 of Article 83 of the Law on Cooperatives.

2. The maximum loan amount for each member in each period shall be decided by the General Assembly of Members, but not exceeding 5% of the cooperative's or cooperative union's own capital used for internal lending activities.

3. The Board of Directors shall consider and decide the loan term for members based on the purpose of borrowing and repayment capacity, but the term shall not exceed 12 months.

4. The interest rate framework for internal lending shall be decided by the General Assembly of Members, but shall not exceed 20% per annum of the borrowed amount. The Board of Directors shall consider and decide specific interest rates for internal lending consistent with the loan term and purpose of borrowing, but shall not exceed the interest rate framework for internal lending decided by the General Assembly of Members.

The interest rate applied to overdue loans shall not exceed 150% of the interest rate for on-time loans on the principal balance recorded in the internal loan agreement.

Interest rates for internal lending must be publicly displayed at the headquarters of the cooperative or cooperative union.

5. The Board of Directors and the borrowing member shall agree on the repayment terms for the principal and interest based on the purpose of borrowing and repayment capacity of the member.

6. The decision on whether to provide loans secured by assets or unsecured loans and the measures for disposing of collateral to recover debts shall be made by the Board of Directors upon submission to the General Assembly of Members, depending on the purpose of the loan, loan term, and loan amount, in compliance with civil law regulations.

Measures for disposing of collateral to recover debts (if applicable) must be recorded in the internal loan agreement.

7. In cases where a member has not yet the ability to repay the principal and interest on time, they must submit a request for extension of the repayment period or debt rescheduling to the Board of Directors at least seven days before the repayment deadline. The Board of Directors shall consider and approve rescheduling or extending the debt with a maximum term of 12 months from the end of the loan period.

8. In case the loan is not extended, the Board of Directors shall transfer the remaining balance of such loan to overdue debt and apply the agreed internal loan interest rate for overdue loans as stipulated in the internal loan agreement; simultaneously, the cooperative or cooperative federation may proceed with measures to dispose of collateral assets to recover the debt according to the agreement in the internal loan contract.

9. When internal lending results in losses, the cooperative or cooperative federation shall record the loss value after compensating with personal or collective compensation payments and insurance organization payments (if any) in the current period expenses, while reducing the value of the internal loan.

10. The cooperative or cooperative federation shall conduct accounting for internal lending activities in accordance with the legal provisions on accounting for cooperatives and cooperative federations.

11. The cooperative or cooperative federation shall cease internal lending activities in the following cases:

a) When the overdue debt exceeds 5% of the total outstanding debt, the cooperative or cooperative federation must stop internal lending to take measures to recover overdue debts. If the overdue debt ratio is below 5%, internal lending activities can continue.

b) During the implementation of internal lending, if the cooperative or cooperative federation fails to meet the conditions specified in Clause 1 of this Article, the cooperative or cooperative federation must cease internal lending until it meets all the required conditions.

c) For internal loan contracts signed before the cooperative or cooperative federation ceases internal lending activities, the parties shall continue to perform their rights and obligations under the contract but shall not extend the contract.

12. At the end of the fiscal year, the Board of Directors shall present to the General Assembly a plan to handle debts that members cannot repay according to the risk management measures approved by the General Assembly.

Article 20. Internal transactions and income from internal transactions of cooperatives and cooperative federations

1. Internal transactions of cooperatives and cooperative federations include the following activities:

a) Cooperatives and cooperative federations organize production themselves or purchase products and raw materials to supply to official members for production in line with the cooperative's or federation's general direction or to serve the needs of official members' daily life;

b) Cooperatives and cooperative federations directly provide or hire others to provide services to support the production activities of official members in line with the cooperative's or federation's direction or to serve the needs of official members' daily life;

c) Cooperatives and cooperative federations provide storage, sorting, cleaning, preservation, packaging, preliminary processing, processing, and marketing services for products produced by official members;

d) Cooperatives and cooperative federations assist official members in connecting with product and service providers and purchasing units to market the products produced by official members through contract promotion between official members and product providers and purchasing units. Cooperatives and cooperative federations shall be paid for their assistance services by official members, providers, and purchasing units;

đ) Cooperatives and cooperative federations organize internal lending activities to support the production, business, and living expenses of official members.

2. Income from internal transaction activities of cooperatives and cooperative federations equals the revenue from internal transaction activities minus the direct costs related to those internal transaction activities.

Article 21. Handling Assets When a Cooperative or Cooperative Federation Dissolves or Becomes Bankrupt

1. The cooperative or cooperative federation shall review and compile a complete list of all capital, funds, and assets of the cooperative or cooperative federation, including: all common funds and common assets that are not to be divided as stipulated in Article 84 and Clause 2 of Article 88 of the Law on Cooperatives according to their sources of formation; other capitals, funds, and assets of the cooperative or cooperative federation.

The management, utilization, and depreciation of common assets that are not to be divided shall be carried out in accordance with the provisions of the law on the management, utilization, and depreciation of fixed assets.

2. The General Assembly shall approve the review and handling of common funds and common assets that are not to be divided, which shall be recorded in the resolution dissolving the cooperative or cooperative federation, including the following main contents:

a) Common fund; name, type of common asset;

b) Year of formation;

c) Value of the common fund and value of the common asset at the time of formation according to their sources of formation and contribution ratio according to their sources of formation;

d) Remaining value of the common asset according to its source of formation (remaining value after depreciation and valuation of the asset as stipulated in Clause 3 of Article 77 of the Law on Cooperatives);

đ) Time limit and procedures for transferring common funds and common assets formed from state support to the People's Committee of the district where the cooperative registration certificate was issued;

e) Request to enjoy priority rights to transfer or liquidate common assets as stipulated in Clause 9 of this Article (if applicable);

g) Other contents (if necessary).

3. In cases where the common fund and common assets that are not to be divided do not have sufficient documentation to determine the origin of the assets and the proportion of each type of capital forming the common fund and common assets that are not to be divided, the origin and proportion of capital forming the common fund and common assets that are not to be divided from state support shall be determined based on the supporting documents retained by the managing agency implementing the support policy and handled according to the provisions of Clauses 4, 6, 7, 8, 9, 10, and 11 of this Article.

4. For the portion of the common fund that is not to be divided formed from state support, the cooperative or cooperative federation shall transfer it to the People's Committee of the district where the cooperative registration certificate was issued to transfer it into the state budget at the same level.

5. For the common fund specified in Clauses 1, 2, and 4 of Article 84 of the Law on Cooperatives and common assets that are not to be divided specified in Points b, d, and e of Clause 2 of Article 88 of the Law on Cooperatives: they shall be handled according to the provisions of Points b and c of Clause 2 and Points b and c of Clause 3 of Article 101 of the Law on Cooperatives.

6. Common assets that are not to be divided specified in Point a of Clause 2 of Article 88 of the Law on Cooperatives shall be handled according to the provisions of the law on land.

7. For common assets that are not to be divided specified in Points c and đ of Clause 2 of Article 88 of the Law on Cooperatives fully supported by the state: the cooperative or cooperative federation shall transfer them to the People's Committee of the district where the cooperative registration certificate was issued according to the provisions of Clause 10 and Points a, b, c, and đ of Clause 11 of this Article for handling according to the provisions of the law on the management and utilization of public property.

8. For common assets that are not to be divided specified in Point c of Clause 2 of Article 88 of the Law on Cooperatives partially supported by the state, except for the cases stipulated in Clause 9 of this Article, the cooperative or cooperative federation shall carry out asset valuation according to the provisions of Clause 3 of Article 77 of the Law on Cooperatives and transfer them according to the provisions of Clauses 10 and 11 of this Article to the People's Committee of the district where the cooperative registration certificate was issued for implementation of transfer or liquidation according to the provisions of the law on auctioning assets. The proceeds from the transfer or liquidation, after deducting the costs of transfer or liquidation of the asset, including the cost of asset valuation, the cost of organizing the auction sale of the asset, other related costs, and taxes paid according to regulations, shall be returned to the cooperative or cooperative federation the corresponding value according to the initial capital formation ratio to handle according to the provisions of Clauses 4 and 5 of Article 101 of the Law on Cooperatives and relevant laws, and the corresponding value of the state's initial support transferred into the state budget at the same level.

9. For common assets that are not to be divided attached to land as stipulated by law, formed partly from state support, constructed on land whose right of use belongs to the cooperative or cooperative federation, and the cooperative or cooperative federation uses this right of use as matching capital to invest in common assets that are not to be divided attached to land when the cooperative or cooperative federation dissolves or becomes bankrupt, the cooperative or cooperative federation shall carry out asset valuation according to the provisions of Clause 3 of Article 77 of the Law on Cooperatives and transfer these common assets attached to land to the People's Committee of the district where the cooperative registration certificate was issued according to the provisions of Clauses 10 and 11 of this Article for handling as follows:

a) The cooperative or cooperative federation has the right to prioritize the transfer or liquidation of these common assets if there is a request as stipulated in Point e of Clause 2 of this Article. The transfer or liquidation price is determined equal to the value of the asset as valued according to the provisions of Clause 3 of Article 77 of the Law on Cooperatives. After deducting the cost of asset valuation, other related costs, and taxes paid according to regulations, the cooperative or cooperative federation shall return to the People's Committee of the district where the cooperative registration certificate was issued the corresponding value according to the state's initial support ratio to transfer into the state budget at the same level.

The asset after the cooperative or cooperative federation receives the transfer or liquidation is a common asset of the cooperative or cooperative federation not formed from state support and shall be handled according to the provisions of Clause 5 of this Article.

b) If the cooperative or cooperative federation refuses the right of first refusal, does not accept the transfer or liquidation of the undivided common assets, then the People's Committee of the district where the Cooperative Registration Certificate was issued shall carry out the transfer or liquidation of such assets in accordance with the provisions of the Auction Law. The proceeds from the transfer or liquidation of the undivided common assets, after deducting the costs of transfer and liquidation (including asset valuation costs, auction organization costs, other related costs, and taxes as prescribed), shall be returned to the cooperative or cooperative federation according to the proportion of the initial source of formation of the assets for handling in accordance with Clause 4 and 5, Article 101 of the Law on Cooperatives and relevant laws. The portion corresponding to the State's support ratio shall be transferred to the state budget at the same level.

10. Within ten days from the date the cooperative or cooperative federation sends the resolution to dissolve as stipulated in Point a, Clause 3, Article 98 of the Law on Cooperatives, the cooperative or cooperative federation shall submit the handover dossier of the undivided common fund and undivided common assets as specified in Clauses 4, 7, 8, and 9 of this Article to the People's Committee of the district where the Cooperative Registration Certificate was issued. The handover dossier includes:

a) Decision on support by the competent state agency; minutes of handover of supported works and assets by the implementing agency; depreciation book of undivided common assets; valuation document for undivided common assets that have been transferred or liquidated during operation as stipulated in Clause 3, Article 77 of the Law on Cooperations in cases of asset valuation and Receipt for payment of proceeds from the transfer or liquidation of these assets included in the undivided common fund (copies);

b) Valuation document for undivided common assets valued by the appraisal organization as stipulated in Clause 3, Article 77 of the Law on Cooperatives in cases of asset valuation (copies);

c) Other documents (if any).

11. The People's Committee of the district where the Cooperative Registration Certificate was issued shall receive the handover dossier of the undivided common fund and undivided common assets of the cooperative or cooperative federation as follows:

a) In case the dossier is incomplete or invalid as stipulated in Clause 10 of this Article, within three working days from the date of receipt of the dossier of the cooperative or cooperative federation, the People's Committee of the district where the Cooperative Registration Certificate was issued shall issue a written opinion requesting the cooperative or cooperative federation to supplement the dossier. The time limit for the cooperative or cooperative federation to supplement the dossier is three working days;

b) In case the cooperative or cooperative federation fails to submit the dossier as prescribed in Clause 10 of this Article or fails to supplement the dossier as prescribed in Point a of this clause, within ten days from the expiration date of the submission deadline or the supplementation deadline, the People's Committee of the district where the Cooperative Registration Certificate was issued shall complete the determination of the value and proportion of the State's capital contribution based on the records of the competent management agency implementing the policy and notify the cooperative or cooperative federation about the determination of the value and proportion of the State's capital contribution for the undivided common assets of the cooperative or cooperative federation;

c) Publicize information on the acceptance of the undivided common fund and undivided common assets handed over from the cooperative or cooperative federation on the website of the People's Committee of the district where the Cooperative Registration Certificate was issued and the National Information System on Cooperatives within thirty days from the date of receiving a valid dossier or from the date the People's Committee of the district where the Cooperative Registration Certificate was issued notifies the cooperative or cooperative federation about the determination of the value and proportion of the State's capital contribution for the undivided common assets of the cooperative or cooperative federation;

d) Within five working days from the expiration date of the public announcement period as stipulated in Point c of this clause, if there are no objections or issues, the People's Committee of the district where the Cooperative Registration Certificate was issued shall establish a Council to accept the undivided common fund and undivided common assets of the cooperative or cooperative federation, organize the acceptance and issue a decision on accepting the undivided common fund and undivided common assets of the cooperative or cooperative federation along with the minutes of handover between representatives of the cooperative or cooperative federation and representatives of the People's Committee of the district where the Cooperative Registration Certificate was issued. The minutes of handover include contents on the participants in the handover; detailed dossier of the undivided common fund and undivided common assets being handed over; determination of value and proportion of support from the state budget;

đ) For undivided common assets as specified in Point c, đ, Clause 2, Article 88 of the Law on Cooperatives which are fully supported by the State, the People's Committee of the district where the Cooperative Registration Certificate was issued shall hand over to the competent state management agency for handling in accordance with the law on management and use of public assets;

e) For undivided common assets formed from partial State support, simultaneously with issuing the decision to accept the undivided common fund and undivided common assets as stipulated in Point d of this clause, the People's Committee of the district where the Cooperative Registration Certificate was issued shall send a letter to the cooperative or cooperative federation requesting to appoint representatives of the Management Board for full management organizations, Director for simplified management organizations; representatives of the Supervisory Board or supervisor; representatives of members or member cooperatives participating in the liquidation council (hereinafter referred to as the Liquidation Council).

Within five working days from the date of receipt of the request letter to appoint representatives to participate in the Liquidation Council, the cooperative or cooperative federation shall submit a document appointing representatives to participate in the Liquidation Council to the People's Committee of the district where the Cooperative Registration Certificate was issued.

g) Within three working days from the date of receiving the document appointing representatives to participate in the Liquidation Board, the People's Committee of the district issuing the Certificate of Registration for the cooperative shall issue a decision to establish the Liquidation Board.

The members of the Liquidation Board include: The Chairman of the Board is the representative of the People's Committee of the district issuing the Certificate of Registration for the cooperative; the permanent member is the representative of the financial agency at the same level as the business registration agency; other members are representatives of relevant state agencies at the same level; organizations representing provincial or centrally-run city cooperatives unions (if the cooperative or cooperative federation is a member of such organization); representatives of the People's Committee of the commune, ward, town where the cooperative or cooperative federation has its main office; representatives of the Management Board of the cooperative or cooperative federation if it has a full management board, or the Director if it has a simplified management board; representatives of the Supervisory Board or supervisory member; representatives of members, member cooperatives.

In case the cooperative or cooperative federation does not appoint representatives to participate in the Liquidation Board, the People's Committee of the district issuing the Certificate of Registration for the cooperative shall establish the Liquidation Board without requiring representatives of the cooperative or cooperative federation to transfer or liquidate this undivided common asset. The liquidation of undivided common assets will be carried out when the assets have been fully depreciated, become obsolete, are damaged and cannot be repaired, or repairs are not effective.

h) After completing the transfer or liquidation of assets, within three working days, the Liquidation Board shall submit a report on the results of the transfer or liquidation of assets, including the determination of transfer and liquidation costs (including asset valuation fees, auction organization fees, and other related costs and taxes as prescribed) to the People's Committee of the district issuing the Certificate of Registration for the cooperative for the purpose of processing the proceeds from the transfer or liquidation of assets according to regulations.

12. For capital, funds, and other assets that are not undivided common assets, the proceeds from the cooperative or cooperative federation shall be handled in accordance with the provisions of Clause 4 and Clause 5 of Article 101 of the Law on Cooperatives.

Chapter V

IMPLEMENTATION

Article 22. Responsibilities of Ministries, Sectors, and Agencies under the Government

1. The Ministry of Planning and Investment:

a) To take the lead and coordinate with relevant ministries and sectors in drafting and submitting to the competent authority for approval a comprehensive program on the development of collective economic organizations in compliance with relevant laws;

b) To take the lead in compiling requirements, and coordinate with the Ministry of Finance to propose plans for allocating budget funds to implement support policies for groups, cooperatives, and cooperative federations as stipulated in this Decree and the State Budget Law;

c) To take the lead and coordinate with the Ministry of Finance in compiling and reporting to the competent authority on plans for allocating central government budget funds for investment projects under the medium-term and annual public investment plans, in accordance with the support policies set forth in Article 13 and Article 16 of this Decree and laws on public investment, based on proposals from ministries, central agencies, and localities;

d) To build, manage, and operate the National Information System on Cooperatives.

2. Ministry of Finance:

To take the lead and coordinate with the Ministry of Planning and Investment in compiling and reporting to the competent authority on plans for allocating annual central government budget funds to implement support policies for groups, cooperatives, and cooperative federations as stipulated in this Decree and the State Budget Law.

3. Ministries, ministerial-level agencies, and agencies under the Government within their respective functions and authorities:

a) Based on the ability to balance resources, draft plans and budgets for state budget funds to support groups, cooperatives, and cooperative federations annually and over the medium term within their respective industries and fields of management in accordance with the Law on Cooperatives and this Decree, and submit them to the Ministry of Planning and Investment and the Ministry of Finance for consolidation into the annual and medium-term state budget support plans for groups, cooperatives, and cooperative federations;

b) Proactively allocate the annual and medium-term state budget funds assigned to implement support for groups, cooperatives, and cooperative federations;

c) Publicize information on support for groups, cooperatives, and cooperative federations on their own websites; provide and update information on support for groups, cooperatives, and cooperative federations on the National Information System on Cooperatives in accordance with Clause 5 of Article 113 of the Law on Cooperatives;

d) Report to the Ministry of Planning and Investment and the Ministry of Finance on the implementation of content, programs, plans, and projects supporting groups, cooperatives, and cooperative federations in accordance with laws on the state budget and relevant laws;

đ) To carry out inspections and audits of the implementation of laws by groups, cooperatives, and cooperative federations; handle violations of laws in accordance with the provisions of the law.

Article 23. Responsibilities of the Provincial People's Committee

1. Issuing or submitting to the Provincial People's Council for issuance a program on the development of collective economic organizations that is suitable to the locality's characteristics and does not contravene the provisions of the Law on Cooperatives and this Decree.

2. Publicizing information supporting production cooperatives, cooperative enterprises, and cooperative federations on the local electronic information website; providing and updating information about support for production cooperatives, cooperative enterprises, and cooperative federations on the National Cooperative Information System in accordance with Clause 5, Article 113 of the Law on Cooperatives.

3. Reporting to the Ministry of Planning and Investment and the Ministry of Finance on the implementation of content, projects, programs, and plans to support production cooperatives, cooperative enterprises, and cooperative federations within their jurisdiction in accordance with the laws on state budget and related laws.

4. Within the scope of their duties and powers, conducting inspections and supervision of the implementation of laws by production cooperatives, cooperative enterprises, and cooperative federations; handling violations of law according to the provisions of the law.

Chapter VI

IMPLEMENTING PROVISIONS

Article 24. Effectiveness and Transitional Provisions

1. This Decree takes effect from November 1, 2024.

2. Abolishing Decree No. 193/2013/NĐ-CP dated November 21, 2013 of the Government detailing certain provisions of the 2012 Law on Cooperatives.

3. Abolishing Decree No. 107/2017/NĐ-CP dated September 15, 2017 of the Government amending and supplementing certain provisions of Decree No. 193/2013/NĐ-CP dated November 21, 2013 of the Government detailing certain provisions of the 2012 Law on Cooperatives.

4. During the period when the National Cooperative Information System has not been operational, reporting, provision, and updating of information as required on this system shall be carried out through paper documents or email.

5. For cooperatives and cooperative federations that still have balances in the Risk Credit Reserve Fund, they may continue to use these balances to address credit losses due to objective reasons arising from internal credit contracts signed before September 1, 2023 (if any) or handle them according to the Resolution of the Member Congress.

6. Abolishing Clause 1 and Clause 3 of Article 3 and Article 4 of Decree No. 77/2019/NĐ-CP dated October 10, 2019 of the Government on Production Cooperatives.

7. Amending some articles and clauses of Decree No. 77/2019/NĐ-CP dated October 10, 2019 on Production Cooperatives as follows:

a) Article 5 of Decree No. 77/2019/NĐ-CP on the rights of production cooperatives is amended as follows:

"1. Production cooperatives have the rights stipulated at points a, b, c, d, đ, and g of Clause 3, Article 107 of the Law on Cooperatives.

2. Production cooperatives are eligible to enjoy state policies on supporting the development of production cooperatives as provided for in Clause 2 and Clause 3 of Article 18 of the Law on Cooperatives and Clause 2 and Clause 3 of Article 6 of Decree No. 113/2024/NĐ-CP dated September 12, 2024 of the Government detailing certain provisions of the Law on Cooperatives."

b) Article 6 of Decree No. 77/2019/NĐ-CP on the obligations of production cooperatives is amended as follows:

"1. Production cooperatives have the obligations stipulated at points a, b, and c of Clause 4, Article 107 of the Law on Cooperatives.

2. Implementing the public disclosure of information recorded in the books regarding members' contributions and other information as prescribed by the cooperative agreement.

3. Implementing the reporting and updating of information on the operation of production cooperatives as prescribed by law."

c) Clause 3 of Article 15 of Decree No. 77/2019/NĐ-CP on the handling of common assets of production cooperative members and financial matters when ceasing operations is amended as follows:

"3. In cases where common assets formed from state support or legally donated, gifted, or transferred by other individuals or organizations, and according to the requirements of the state or the donor, the production cooperative does not have the right to dispose of such assets, upon ceasing operations, the production cooperative shall proceed as follows:

a) Hand over common assets formed from state support to the People's Committee issuing the registration certificate for the production cooperative for disposal according to the procedures for disposing of undivided funds and assets of cooperatives and cooperative federations formed from state support as stipulated in Article 21 of Decree No. 113/2024/NĐ-CP dated September 12, 2024 of the Government detailing certain provisions of the Law on Cooperatives;

b) In cases where the production cooperative has common assets formed from state support prior to the effective date of the Law on Cooperatives No. 17/2023/QH15, the production cooperative shall hand over common assets formed from state support to the People's Committee of the district where the cooperative's business address is located for disposal according to the procedures for disposing of undivided funds and assets of cooperatives and cooperative federations formed from state support as stipulated in Article 21 of Decree No. 113/2024/NĐ-CP dated September 12, 2024 of the Government detailing certain provisions of the Law on Cooperatives;

c) Common assets legally donated, gifted, or transferred by other individuals or organizations shall be handled according to the agreement between the donor, giftor, or transferor and the production cooperative."

d) Article 24 of Decree No. 77/2019/NĐ-CP on the contribution of production cooperative members is amended as follows:

"1. The contribution of a member of a production cooperative includes the capital contribution as stipulated in Clause 12, Article 4 of the Law on Cooperatives and the degree of labor contribution as stipulated in Clause 10, Article 4 of the Law on Cooperatives made or committed to be made by that member to the production cooperative.

2. Determination of the capital contribution and degree of labor contribution of a production cooperative member to the production cooperative is agreed upon by the members of the production cooperative or determined by a third party authorized by all members of the production cooperative.

3. In cases where a production cooperative member commits to contribute but fails to fully contribute or contributes late, it shall be handled according to the cooperative agreement and the civil law provisions."

đ) Clause 6 of Article 29 of Decree No. 77/2019/NĐ-CP on regular reporting and state management of production cooperatives is amended as follows:

"6. Production cooperatives registered with the business registration authority shall not implement the reporting to the People's Committee of the commune as stipulated in Clause 1 of this Article."

Article 25. Responsibilities for Implementation

1. The Ministry of Planning and Investment shall take the lead and coordinate with relevant ministries and sectors to implement this Decree.

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