Decision No. 243/2006/QĐ-TTg stipulates the functions, tasks, powers, and organizational structure of the Committee for Overseas Vietnamese under the Ministry of Foreign Affairs.

Pursuant to …;

On the establishment of the Cooperative Development Support Fund

________________________

PRIME MINISTER

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

Pursuant to the Law on Cooperatives dated November 26, 2003;

Pursuant to Decree No. 88/2005/NĐ-CP dated July 11, 2005 of the Government on certain support policies to encourage cooperative development;

At the proposal of the Minister of Finance,

Pursuant to …;

Article 1The Cooperative Development Support Fund shall be established to support activities for product innovation and development; technological and technical innovation and development; market development and expanded product consumption; construction and replication of new cooperative models and exemplary advanced cooperatives.

Article 2Legal status of the Cooperative Development Support Fund

1. The Cooperative Development Support Fund is a state financial organization. It has legal personality, registered capital, its own balance sheet, seal, and bank accounts at the State Treasury and commercial banks. The Vietnam Union of Cooperatives shall manage and operate the Cooperative Development Support Fund.

2. Name: Cooperative Development Support Fund. English name for transactions: Co-operative Assistance Fund (CAF).

3. The headquarters of the Cooperative Development Support Fund is located in Hanoi.

Article 3Operation methods of the Cooperative Development Support Fund

1. To raise and accept voluntary contributions from cooperatives, cooperative unions, and financial sources both domestically and internationally as prescribed by Vietnamese law to create funds for supporting cooperative and cooperative union development.

2. To support cooperative and cooperative union activities through the following methods:

c) Post-investment interest subsidy."

b) Repayment of principal.

3. To receive and manage entrusted funds from domestic and international organizations and individuals to support investment or sponsorship for cooperative development activities.

4. To use idle funds not originating from the state budget to purchase government bonds according to the provisions of the law and the Charter of the Cooperative Development Support Fund's organization and operation.

Article 4Scope of support provided by the Cooperative Development Support Fund

1. To support activities for product innovation and development, technological and technical innovation and development of cooperatives and cooperative unions.

2. To support organizational activities for market development and expanded product consumption for cooperatives and cooperative unions.

3. To support the construction, development, and replication of new cooperative and cooperative union models and exemplary advanced cooperatives.

Article 5Sources of funding for the Cooperative Development Support Fund

1. The registered capital of the Fund is one hundred billion VND provided by the state budget from the time the Fund officially commences operations. Adjustments and supplements to the registered capital of the Fund shall be decided by the Prime Minister based on proposals from the Vietnam Union of Cooperatives and the Ministry of Finance.

2. Operating funds from other sources:

a) Voluntary contributions from cooperatives and cooperative unions;

b) Voluntary contributions from domestic and international organizations and individuals;

c) Aid and sponsorship from domestic and international organizations and individuals;

d) Entrusted funds from domestic and international organizations and individuals for cooperative development;

đ) Funds from domestic and international programs and projects supporting cooperative and cooperative union development;

e) Other funds as prescribed by law.

Article 6The management and operational structure of the Cooperative Development Support Fund includes the Management Board, Supervisory Board, and operational staff. The duties and powers of the Management Board, Supervisory Board, and operational staff of the Cooperative Development Support Fund are stipulated in the Charter of the organization and operation of the Fund.

, Clause 1, Clause 2 Article 7a of this Regulation.The Management Board of the Cooperative Development Support Fund

1. The Management Board consists of five members including the Chairman of the Management Board who is a leader of the Vietnam Union of Cooperatives; four members representing the Ministry of Finance, the Ministry of Planning and Investment, the State Bank of Vietnam, and the Director of the Fund. The Chairman of the Vietnam Union of Cooperatives decides on the appointment and dismissal of the Chairman and members of the Management Board of the Cooperative Development Support Fund.

2. The Management Board operates on a part-time basis and enjoys benefits as prescribed by the State.

Article 8The Supervisory Board of the Cooperative Development Support Fund

The Supervisory Board consists of three members. The Head of the Supervisory Board is appointed and dismissed by the Management Board. Members of the Supervisory Board are decided by the Management Board upon the recommendation of the Head of the Supervisory Board.

Article 9Operational Staff of the Cooperative Development Support Fund

1. The operational staff of the Cooperative Development Support Fund includes the Director, Deputy Directors, Chief Accountant, and assisting units.

2. The Chairman of the Vietnam Union of Cooperatives appoints and dismisses the Director of the Cooperative Development Support Fund.

3. Deputy Directors and Chief Accountants are appointed or dismissed by the Management Board upon the recommendation of the Director of the Cooperative Development Support Fund.

4. Supporting units within the operational staff are established or dissolved by the Management Board based on the proposal of the Director of the Cooperative Development Support Fund.

Article 10Financial principles governing the activities of the Cooperative Development Support Fund

a) Loan interest rates must ensure coverage of management costs and risk prevention;

2. For the method of support with full repayment of principal:

a) In line with the financial resources of the Fund;

b) The maximum repayment period for the support amount does not exceed three years;

c) The maximum support level is 80% of the actual cost.

3. For the lending method:

c) Maximum loan term is five years;

d) Loan security: In specific cases, the Cooperative Development Support Fund decides on the form of loan security and bears responsibility according to the law.

c) The maximum loan term is five years;

d) Loan guarantee: in specific cases, the Cooperative Development Support Fund decides on the form of loan guarantee and must bear responsibility as prescribed by law.

Article 11. Implementation Provisions

This Decision takes effect fifteen days after its publication in the Official Gazette.

2. The Chairman of the Vietnam Union of Cooperatives, the Chairman of the Management Board, and the Director of the Cooperative Development Support Fund are responsible for implementing this Decision.

3. The Ministry of Finance shall be responsible:

a) Approving the Charter of the organization and operation of the Cooperative Development Support Fund consistent with this Decision and current regulations of the State;

b) Setting interest rates for loans suitable for each period;

c) Issuing financial management mechanisms and performing state management functions regarding finance for the Cooperative Development Support Fund.

4. The Ministry of Planning and Investment and the State Bank of Vietnam shall be responsible for state management of the activities of the Cooperative Development Support Fund in accordance with the provisions of the law.

5. The ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, chairpersons of provincial People's Committees under the central government shall be responsible for implementing this Decision./.