Decree No. 37/2023/NĐ-CP On the establishment, organization, and operation of the Farmer Support Fund

DECREE
On the establishment, organization, and operation of the Farmers Support Fund

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

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

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

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

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

At the proposal of the Minister of Finance;

The Government issues this Decree on the establishment, organization, and operation of the Farmers Support Fund.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

2. Applicability:

This Decree stipulates the establishment, organization, and operation of the Farmers Support Fund under the Vietnam Farmers Union.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

a) The Central Farmers Support Fund is directly subordinate to the Central Vietnam Farmers Union; the Provincial Farmers Support Fund is directly subordinate to the Provincial Vietnam Farmers Union; the District Farmers Support Fund is directly subordinate to the District Vietnam Farmers Union (hereinafter collectively referred to as the Farmers Support Fund).

b) Borrowers of the Farmers Support Fund as prescribed in this Decree.

c) The Vietnam Farmers Union.

d) Organizations and individuals related to the implementation of this Decree.

Article 2. Interpretation of Terms

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

1. Borrowers are members of the Vietnam Farmers Union with production and business plans in the agricultural sector that are eligible for loans from the Farmers Support Fund.

2. Managers include the Chairman of the Management Board, other members of the Management Board, members of the Supervisory Board, the Director, Deputy Directors, and the Chief Accountant of the Farmers Support Fund.

Article 3. Legal status, legal personality, and obligations to the state budget of the Farmers Support Fund

1. The Farmers Support Fund is a state financial fund outside the state budget, directly subordinate to the Farmers Unions at various levels; it operates without profit objectives, ensuring capital preservation and development; it fulfills functions and tasks as prescribed in this Decree.

2. The Farmers Support Fund has legal personality, registered capital, seals, and bank accounts opened at State Treasury, Social Policy Bank, and commercial banks operating legally in Vietnam according to the law.

3. The Farmers Support Fund fulfills its obligations to the state budget according to tax laws and other relevant laws.

Article 4. Principles, objectives, scope of activities, and functions and tasks of the Farmers Support Fund

1. Principles of operation of the Farmers Support Fund:

a) Financial autonomy, non-profit objectives, transparency, and capital preservation and development;

b) Limited liability within the scope of the Fund's capital;

c) Properly performing assigned functions and tasks according to the law.

2. Objectives of the Farmers Support Fund:

a) Supporting members of the Vietnam Farmers Union to build and expand effective production and business models, contributing to increasing income and improving the living standards of farmers;

b) Creating resources, conditions, and tools to unite and organize farmers into unions, contributing to building unions and farmer movements.

3. Scope of activities of the Farmers Support Fund:

a) The Central Farmers Support Fund performs its assigned functions and tasks according to this Decree throughout the country;

b) The Provincial/District Farmers Support Fund performs its assigned functions and tasks according to this Decree within the provincial/district area where it is established.

4. Functions and tasks of the Farmers Support Fund:

a) Receiving and managing the registered capital provided from the state budget according to this Decree and relevant laws;

b) Mobilizing support, sponsorship, and non-repayable aid for the activities of the Farmers Support Fund;

c) Providing loans to members of the Vietnam Farmers Union to build and expand production and business models;

d) Entrusting loans from domestic and foreign organizations and individuals according to the law;

đ) Entrusting lower-level Farmers Support Funds to perform loan tasks according to this Decree and relevant laws;

e) Performing other tasks assigned by competent authorities according to the law.

Article 5. Responsibilities and Authorities of the Farmer Support Fund

1. Responsibilities of the Farmer Support Fund:

a) Adhere to the provisions of this Decree and relevant laws governing the activities of the Farmer Support Fund;

b) Implement regulations on budget preparation, execution, settlement, and auditing for state budget funds allocated to the Farmer Support Fund;

c) Be subject to inspection, examination, and auditing by competent state management agencies; provide data and publicly disclose financial information according to the provisions of this Decree and relevant laws.

2. Authorities of the Farmer Support Fund:

a) Organize activities in accordance with the objectives and scope of operations of the Farmer Support Fund;

b) Select loan schemes that meet the conditions for lending as stipulated in this Decree;

c) Recruit, arrange, train, and utilize labor in accordance with the Charter of Organization and Operation of the Farmer Support Fund and relevant laws;

d) Refuse requests to provide information or use resources of the Farmer Support Fund if such requests contravene the law and the Charter of Organization and Operation of the Farmer Support Fund;

đ) Contact and coordinate with functional agencies, units, and individuals related to mobilizing legitimate funding for the activities of the Farmer Support Fund.

Chapter II

COMPLETE THE ORGANIZATION AND OPERATIONS OF THE FARMER SUPPORT FUND THAT HAS BEEN ESTABLISHED AND THE ESTABLISHMENT OF NEW FARMER SUPPORT FUNDS

Section 1

COMPLETE THE ORGANIZATION AND OPERATIONS OF THE FARMER SUPPORT FUND THAT HAS BEEN ESTABLISHED

Article 6. Completing the organization and operations of the Farmer Support Fund established before the effective date of this Decree

1. Farmer Support Funds established and operating before the effective date of this Decree must implement procedures to complete their organizational structure and operations and submit to the competent authority for approval of the restructuring plan according to the provisions of Clause 2 of this Article.

In cases where the competent authority approves the restructuring plan of the Farmer Support Fund and evaluates the Fund's operations as ineffective and/or falls under the circumstances specified in Articles 39 and 40 of this Decree, then the dissolution, division, or merger of the Farmer Support Fund shall be carried out according to this Decree and relevant laws.

2. Procedures and decision-making authority for completing the organization and operations of the Farmer Support Fund:

a) For the Central Farmer Support Fund: The Central Executive Board of the Vietnam Farmers' Union builds the restructuring plan for the Central Farmer Support Fund according to the provisions of Clause 3 of this Article, submits it to the Prime Minister for consideration and issuance of a decision approving the plan after soliciting opinions from the Ministry of Finance, the Ministry of Planning and Investment, and the Ministry of Home Affairs;

b) For Provincial Farmer Support Funds: The Provincial Executive Board of the Farmers' Union builds the restructuring plan for the Provincial Farmer Support Fund according to the provisions of Clause 3 of this Article, submits it to the Provincial People's Council for approval. After the plan is approved by the Provincial People's Council, the Provincial People's Committee issues a decision approving the plan;

c) For County-level Farmer Support Funds: The County-level Executive Board of the Farmers' Union builds the restructuring plan for the County-level Farmer Support Fund according to the provisions of Clause 3 of this Article, submits it to the County-level People's Committee for submission to the County-level People's Council for approval. After the plan is approved by the County-level People's Council, the County-level People's Committee issues a decision approving the plan. For county-level administrative units without a People's Council, the County-level People's Committee decides to approve the plan.

3. Basic contents of the restructuring plan for the Farmer Support Fund:

a) Decision to establish the Farmer Support Fund;

b) Evaluation of the results of operation, effectiveness of state budget capital utilization, and economic-social benefits of the Farmer Support Fund from its establishment until the development of the plan according to this Decree;

c) Objectives, necessity, and feasibility of continuing the implementation of the Farmer Support Fund's activities; support needs for farmers at the local level; scale, scope, content of activities, and impact of restructuring the organizational structure and operations of the Farmer Support Fund on local socio-economic development;

d) Plan for the operational capital of the Farmer Support Fund over the next five years including: Registered capital provided by the state budget, ability to mobilize non-budget capital;

đ) Plan for dividing or merging existing County-level Farmer Support Funds into Provincial-level Farmer Support Funds according to Article 39 of this Decree (if applicable);

e) Plan for using labor in the case of dividing or merging Farmer Support Funds (if applicable) ensuring the rights and responsibilities of workers according to the law;

g) Draft Charter of Organization and Operation of the Farmer Support Fund according to Article 8 of this Decree;

h) Detailed explanation about the organizational structure and operational machinery of the Farmer Support Fund;

i) List of proposed key personnel including: Chairman, members of the Management Board; Supervisory Board; Director, and other key personnel of the Farmer Support Fund meeting the standards and conditions stipulated in this Decree;

k) Proposed operational, management, and financial plans for the Farmer Support Fund over the next five years starting from the time of developing the restructuring plan for the organization and operations of the Farmer Support Fund.

Section 2

ESTABLISHING NEW FARMER SUPPORT FUNDS

Article 7. Conditions for Establishing New Agricultural Support Funds

1. Conditions for establishing new Agricultural Support Funds in localities that have not established such funds before this Decree takes effect include:

a) Having the need to establish an Agricultural Support Fund;

b) Possessing the ability to allocate local budget to provide the initial capital for the Agricultural Support Fund;

c) Possessing the ability to allocate personnel meeting the standards and conditions stipulated in Articles 10, 11, and 12 of this Decree;

2. The process and authority to decide on establishing new Agricultural Support Funds shall be carried out according to the procedures for improving the organizational structure and operations of already established Agricultural Support Funds as specified in Clause 2, Article 6 of this Decree.

3. Basic contents of the proposal for establishing new Agricultural Support Funds:

a) Objectives, necessity, and feasibility of establishing an Agricultural Support Fund, the support needs of farmers at the local level; scale, scope, content of activities, and impact of establishing an Agricultural Support Fund on economic and social development at the local level;

b) Operation plans of the Agricultural Support Fund demonstrating its financial independence; sources of income and expenditure tasks that do not overlap with those of the state budget;

c) Contents prescribed in points d, g, h, i, and k of Clause 3, Article 6 of this Decree.

Article 8. Charter of Organization and Operations of the Agricultural Support Fund

1. The charter of organization and operations of the Agricultural Support Fund includes the following basic contents:

a) Name and location of the main office;

b) Legal status, legal personality, and legal representative;

c) Principles and scope of operations;

d) Registered capital;

d) Organizational structure and management;

e) Functions and responsibilities;

g) Functions, responsibilities, powers of the Management Board, Executive Board, and Supervisory Board;

h) Standards, conditions, planning, and appointment of managerial positions;

i) Recruitment of staff, planning, and appointment of other leadership positions;

k) Accounting, financial systems, and auditing;

l) Procedures for amending and supplementing the charter of organization and operations;

m) Relationships and responsibilities between the Agricultural Support Fund and state management agencies and borrowers from the Agricultural Support Fund;

n) Dispute resolution, division, merger, and dissolution;

o) Other contents as required by management.

2. The Management Board of the Agricultural Support Fund drafts the charter of organization and operations of the Agricultural Support Fund for approval by the Standing Committee of the same-level Farmers' Association based on the model charter as stipulated in Clause 3 of this Article.

3. The Standing Committee of the Central Farmers' Association of Vietnam promulgates the model charter of organization and operations applicable to the entire system of Agricultural Support Funds.

Chapter III

ORGANIZATIONAL STRUCTURE OF THE AGRICULTURAL SUPPORT FUND

Article 9. Organizational Structure of the Agricultural Support Fund

1. The organizational structure of the Agricultural Support Fund includes:

a) Management Board;

b) Supervisory Board;

c) Executive Board consisting of: Director, Deputy Directors, Chief Accountant, and supporting staff.

2. Authority to decide on planning, appointing, reappointing, resigning, dismissing, transferring, rotating, rewarding, and disciplining managers of the Agricultural Support Fund according to the provisions of Articles 10, 11, and 12 of this Decree, the charter of organization and operations of the Agricultural Support Fund, and guiding documents of the Farmers' Association (if any).

Article 10. Management Board of the Farmer Support Fund

1. The Central Farmer Support Fund Management Board has a maximum of five members who are officers of the Central Farmers' Association working on a part-time basis, including:

a) The Chairman of the Central Farmer Support Fund Management Board is the Vice President of the Vietnam Farmers' Association;

b) One member of the Management Board is the Director of the Central Farmer Support Fund;

c) The remaining members of the Management Board are appointed by the Central Farmers' Association Executive Committee.

2. The Provincial Farmer Support Fund Management Board has a maximum of five members who are officers of the provincial Farmers' Association working on a part-time basis, including:

a) The Chairman of the Provincial Farmer Support Fund Management Board is the Vice President of the provincial Farmers' Association;

b) One member of the Management Board is the Director of the Provincial Farmer Support Fund;

c) The remaining members of the Management Board are appointed by the provincial Farmers' Association Executive Committee; in necessary cases, the provincial People's Committee may appoint one representative from the provincial department or agency to participate in the Provincial Farmer Support Fund Management Board.

3. The District Farmer Support Fund Management Board has a maximum of three members who are officers of the district Farmers' Association working on a part-time basis, including:

a) The Chairman of the District Farmer Support Fund Management Board is the Vice President of the district Farmers' Association;

b) One member of the Management Board is the Director of the District Farmer Support Fund;

c) The remaining members of the Management Board are appointed by the district Farmers' Association Executive Committee and work on a part-time basis; in necessary cases, the district People's Committee may appoint one representative from the district office or department to participate in the District Farmer Support Fund Management Board.

4. The term of office for members of the Farmer Support Fund Management Board does not exceed five years and can be reappointed but not more than two terms.

5. The Farmers' Association Executive Committees at all levels decide on planning, appointment, reappointment, resignation, dismissal, transfer, commendation, and disciplinary action for members of the Farmer Support Fund Management Board at the same level who are officers of the Farmers' Association at all levels. The Chairman of the provincial/district People's Committee decides on appointment, reappointment, resignation, dismissal, transfer, commendation, and disciplinary action for members of the Farmer Support Fund Management Board who are representatives of provincial departments/offices or district departments/offices.

6. Criteria and conditions for appointment and reappointment of the Chairman of the Farmer Support Fund Management Board:

a) Being a Vietnamese citizen residing in Vietnam with full capacity for civil acts;

b) Having a bachelor's degree or higher, with at least five years (for the Central Farmer Support Fund) or three years (for the provincial/district Farmer Support Fund) of experience holding leadership or management positions in one of the following fields: economy; finance; banking; agriculture and rural development; business administration; law; accounting; auditing;

c) Not being the spouse, father, adopted father, mother, adopted mother, child, adopted child, full brother, sister, brother-in-law, sister-in-law, or wife-in-law of the Fund Manager;

d) Other criteria and conditions according to the management requirements of the Farmers' Associations at all levels and as stipulated in the Charter of the Organization and Operation of the Farmer Support Fund.

7. Other members of the Farmer Support Fund Management Board must have a bachelor's degree or higher and experience in managing one of the following fields: economy, finance, banking, business administration, law, accounting, auditing. Specific criteria and conditions for members of the Farmer Support Fund Management Board are provided in the Charter of the Organization and Operation of the Farmer Support Fund.

8. The working system of the Management Board is specifically regulated in the Charter of the Organization and Operation of the Farmer Support Fund, ensuring the following contents:

a) Meetings of the Farmer Support Fund Management Board are only valid when at least two-thirds of the members attend. In cases where meetings are not organized, opinions of Management Board members are obtained through written documentation;

b) Conclusions of the Farmer Support Fund Management Board are expressed through Resolutions and decisions of the Management Board;

c) The Farmer Support Fund Management Board makes decisions on issues based on majority voting, each Management Board member having one vote with equal voting rights. Resolutions and decisions of the Management Board take effect when more than 50% of the total number of Farmer Support Fund Management Board members vote in favor or give written approval. In case of a tie, the final decision belongs to the side with the opinion of the Chairman of the Farmer Support Fund Management Board;

d) The Farmer Support Fund Management Board may use the seal of the same-level Farmers' Association.

9. The tasks and powers of the Management Board include:

a) Receiving, managing, and using the capital of the Farmer Support Fund in accordance with the provisions of the law and the Charter of the Organization and Operation of the Farmer Support Fund; being responsible before the same-level Farmers' Association Executive Committee for the assigned tasks and powers;

b) Developing annual, medium-term, and long-term activity plans and financial plans of the Farmer Support Fund, submitting them to the same-level Farmers' Association Executive Committee for approval;

c) Issuing or amending operational regulations and other internal regulations in accordance with the Charter of the Organization and Operation of the Farmer Support Fund;

d) Supervising and inspecting the operation of the Farmer Support Fund in compliance with policies and laws and the implementation of Management Board decisions;

đ) Deciding the interest rate for loans of the Farmer Support Fund during each period as stipulated in Article 16 of this Decree;

e) Approving loans, deciding fundraising plans and risk management measures within their authority;

g) Approving financial reports, distribution of surplus income, and setting up various funds annually of the Farmer Support Fund after receiving the audit opinion of the Supervisory Board to submit to the same-level Farmers' Association Executive Committee for approval;

h) Submitting to the same-level Farmers' Association Executive Committee for decision on issuing amendments and supplements to the Charter of the Organization and Operation of the Farmer Support Fund.

i) Submit to the Standing Committee of the Farmers' Association at the same level for approval of the personnel arrangement plan to establish the operational machinery of the Farmers' Support Fund;

k) Issue or amend the Operating Regulations, assign tasks to members of the Management Board of the Farmers' Support Fund;

l) Other tasks and powers as stipulated in the Charter on organization and operation of the Farmers' Support Fund.

10. Tasks and powers of the Chairman of the Management Board:

a) Organize the implementation of the tasks and powers of the Management Board of the Farmers' Support Fund; assign tasks to members to implement the tasks and powers of the Management Board of the Farmers' Support Fund according to the operating regulations of the Management Board of the Farmers' Support Fund; be responsible before the Standing Committee of the Farmers' Association at the same level and the Management Board of the Farmers' Support Fund for the implementation of assigned tasks and powers;

b) Direct the preparation of the program, plan of activities of the Management Board of the Farmers' Support Fund; the program, content, and meeting materials of the Management Board of the Farmers' Support Fund; the process of soliciting opinions from Management Board members on matters related to the operation of the Farmers' Support Fund;

c) Convene and chair meetings of the Management Board of the Farmers' Support Fund;

d) Direct the supervision of the implementation of decisions of the Management Board of the Farmers' Support Fund and the operation of the Farmers' Support Fund;

đ) Sign and issue documents within the authority of the Management Board of the Farmers' Support Fund, the Chairman of the Management Board of the Farmers' Support Fund.

Article 11. The Supervisory Board of the Farmers' Support Fund

1. Members of the Supervisory Board of the Farmers' Support Fund are cadres of the Farmers' Association at all levels, appointed by the Standing Committee of the Farmers' Association at the same level, working under a part-time system, assisting the Standing Committee of the Farmers' Association at the same level in supervising the organization, management, and operation of the Farmers' Support Fund.

2. The number of members of the Supervisory Board shall be decided by the Standing Committee of the Farmers' Association at the same level based on the scale, nature, and actual operation of the Farmers' Support Fund, but not exceeding three members, including one member as the Head of the Supervisory Board.

3. The term of office of members of the Supervisory Board of the Farmers' Support Fund is five years, which may be reappointed but not exceeding two terms.

4. Criteria and conditions for appointing members of the Supervisory Board of the Farmers' Support Fund:

a) Being a Vietnamese citizen residing in Vietnam with full capacity for civil acts;

b) Having a bachelor's degree or higher, with at least three years of work experience in one of the fields of accounting, auditing, finance, banking, economics, or law;

c) Other criteria and conditions as required by the management of the Farmers' Association at all levels stipulated in the Charter on organization and operation of the Farmers' Support Fund.

5. The Supervisory Board has the following tasks and powers:

a) Inspect and supervise compliance with policies, systems, the Charter on organization and operation, and operating regulations, to ensure the effectiveness of operations and the safety of assets of the Farmers' Support Fund;

b) Inspect and supervise the legality, honesty, and diligence of the Management Board and Director of the Farmers' Support Fund in managing and directing the operation of the Farmers' Support Fund;

c) Review reports on activities, financial statements, financial plans, and the establishment of reserve funds as prescribed by law;

d) Develop activity plans; report periodically or ad hoc on monitoring and inspection work; perform other tasks assigned by the Standing Committee of the Farmers' Association at the same level.

6. The operating system of the Supervisory Board; responsibilities, powers, criteria, and conditions for members of the Supervisory Board; relationships between the Supervisory Board of the Farmers' Support Fund and related organizations and individuals, and other contents shall be implemented according to the Operating Regulations of the Supervisory Board issued by the Central Standing Committee of the Farmers' Association, applicable throughout the system of Farmers' Support Funds.

Article 12. Management Board of the Farmer Support Fund

1. The Director is the legal representative of the Farmer Support Fund, responsible to the Management Council, the Standing Committee of the Farmers' Union at the same level, and before the law for all activities of the Farmer Support Fund.

2. Criteria and conditions for appointing and reappointing the Director of the Farmer Support Fund:

a) Being a Vietnamese citizen residing in Vietnam with full capacity for civil acts;

b) Having a bachelor's degree or higher in one of the following majors: Economics, finance, banking, agriculture and rural development, business administration, law, accounting, auditing;

c) Having at least five years of work experience at the Central/Provincial Farmer Support Fund and three years at the County-level Farmer Support Fund;

d) Other criteria and conditions according to the management requirements stipulated in the Charter on the organization and operation of the Farmer Support Fund by the Farmers' Union at the same level.

3. Duties and powers of the Director of the Farmer Support Fund:

a) Organizing and managing the operations of the Farmer Support Fund in accordance with this Decree, the Charter on the organization and operation of the Farmer Support Fund, and decisions of the Management Council and the Standing Committee of the Farmers' Union at the same level;

b) Submitting to the Management Council for approval of operational regulations of the Farmer Support Fund within their authority;

c) Directly managing assets and operating capital and being responsible for their own decisions before the Standing Committee of the Farmers' Union at the same level and the Management Council in accordance with the law and the Charter on the organization and operation of the Farmer Support Fund;

d) Approving loans, deciding fundraising plans and risk management measures within their authority;

đ) Deciding on the recruitment of staff under labor contracts to carry out the tasks of the Farmer Support Fund;

e) Fulfilling other powers and duties as required by the Management Council and stipulated in the Charter on the organization and operation of the Farmer Support Fund.

4. Deputy Director of the Farmer Support Fund

a) The Deputy Director has the duty to assist the Director in managing the operations of the Farmer Support Fund according to assigned tasks and delegated authority; being responsible to the Director, the Management Council, the Standing Committee of the Farmers' Union at the same level, and before the law for the assigned tasks and delegated authority;

b) Criteria, conditions, appointment authority, term of office, and number of Deputy Directors are stipulated in the Charter on the organization and operation of the Farmer Support Fund.

5. Chief Accountant of the Farmer Support Fund

a) The Chief Accountant is responsible for organizing the accounting work of the Farmer Support Fund, assisting the Management Council and the Director in financial oversight at the Farmer Support Fund in accordance with the law on finance and accounting; being responsible to the Management Council and the Director for the fulfillment of assigned tasks and delegated authority, performing other functions and duties as prescribed by the Accounting Law and current relevant laws;

b) The Chief Accountant of the Farmer Support Fund must meet the criteria and conditions stipulated in the Accounting Law, guiding documents, amendments, supplements, or replacements (if any). Specific criteria, conditions, and appointment authority of the Chief Accountant are stipulated in the Charter on the organization and operation of the Farmer Support Fund.

Article 13. The administrative apparatus assisting the Farmers Support Fund

1. The administrative apparatus assisting the Farmers Support Fund includes:

a) Staff members of the Farmers' Association's office at the same level who are directly assigned to carry out the operational activities of the Farmers Support Fund;

b) Employees hired by the Farmers Support Fund under labor contracts.

2. The administrative apparatus undertakes specialized and operational tasks; advises and assists the Management Board of the Farmers Support Fund.

Chapter IV

ACTIVITIES OF THE FARMERS SUPPORT FUND

Section 1

LOAN ACTIVITIES

Article 14. Borrower Eligibility and Loan Conditions

1. The borrowers of the Farmers Support Fund are members of the Vietnam Farmers' Association who have capital needs for developing production and business in the agricultural sector.

2. Conditions for obtaining loans from the Farmers Support Fund:

a) The borrower must be eligible according to the provisions of Clause 1 of this Article and have full civil capacity as stipulated by law;

b) The borrower must be confirmed by the People's Committee of the commune where they reside to be living in the locality where the Farmers Support Fund provides loans at the time of applying for a loan from the Farmers Support Fund;

c) Legal purpose for using borrowed funds;

d) The borrowing plan of each customer must be compiled into a common plan for a group of Farmers' Association members producing and trading the same type of product within the same commune. The borrowing plan of each customer and the common plan of the group of Farmers' Association members must be assessed by the Farmers Support Fund as feasible and capable of repaying the loan;

đ) At any given time, a single customer may only borrow funds under one common plan for a group of Farmers' Association members from the Farmers Support Fund;

e) Members of the same household shall not generate outstanding debts with the Farmers Support Fund simultaneously;

g) Other lending conditions specified in internal regulations on lending and debt management of the Farmers Support Fund issued by the Management Council of the Farmers Support Fund at all levels pursuant to this Decree.

Article 15. Loan Period

1. The loan period for each customer's plan and the common plan of the group of Farmers' Association members at the Farmers Support Fund is determined based on the ability to recover capital, consistent with the production and business cycle, and the customer's ability to repay debt but shall not exceed five years (excluding the time for debt extension).

2. The specific loan period for each customer's plan and the common plan of the group of Farmers' Association members is decided upon by the Farmers Support Fund.

3. The total maximum extended debt period shall not exceed half of the initial loan period under the signed credit contract.

Article 16. Interest Rate on Loans and Currency of Loans

1. Interest rate on loans:

a) The interest rate on loans of the Farmers Support Fund is determined during each period, based on the principle of ensuring sufficient coverage of management costs and other costs related to lending activities;

b) Based on the principle of determining the interest rate on loans as stipulated in point a of this clause, the Management Council decides the specific interest rate on loans of the Farmers Support Fund during each period;

c) For borrowing plans utilizing entrusted capital with different interest rates than those prescribed in this Decree, the agreement signed with the entrusting party shall be followed.

2. The currency for loans and repayment is the Vietnamese Dong (VND).

Article 17. Guarantee for Loans

1. The Farmer Support Fund and the borrowing customer shall agree on appropriate guarantee measures for the loan in accordance with the provisions of the law on security measures to fulfill obligations and other relevant laws.

2. The Management Board of the Farmer Support Fund shall specify the forms of loan guarantees and the authority to decide on loan guarantees in the internal regulations on lending and debt management of the Farmer Support Fund.

Article 18. Authority to Decide on Lending

1. The Director of the Farmer Support Fund shall decide on lending for the general plan of groups of members of the Farmers' Association with a loan amount not exceeding 15% of the net assets of the Farmer Support Fund recorded in the annual financial report or the most recent six-month financial report approved by the Management Board. The Management Board shall specify the maximum lending limit delegated to the Director to decide in the internal regulations on lending and debt management of the Farmer Support Fund.

2. The Management Board of the Farmer Support Fund shall decide on lending for the general plan of groups of members of the Farmers' Association with a loan amount exceeding the decision-making authority of the Director as stipulated in Clause 1 of this Article, ensuring compliance with the loan limit provisions set forth in Article 19 of this Decree.

Article 19. Limitations on Lending

1. The outstanding loan balance for a single customer shall not exceed 10% of the net assets of the Farmer Support Fund recorded in the annual financial report or the most recent six-month financial report approved by the Management Board.

2. The outstanding loan balance for a general plan of groups of members of the Farmers' Association shall not exceed 20% of the net assets of the Farmer Support Fund recorded in the annual financial report or the most recent six-month financial report approved by the Management Board.

3. The Management Board of the Farmer Support Fund shall submit to the Standing Committee of the Farmers' Association at the same level for a decision on the loan limits for each individual customer and the general plan of groups of members of the Farmers' Association that exceed the loan limits specified in Clauses 1 and 2 of this Article.

4. For loan plans using entrusted capital with different loan limits from those stipulated in this Decree, they shall be implemented according to the agreement signed with the entrusting party.

Article 20. Restructuring of Repayment Terms

The Farmer Support Fund shall consider and decide on restructuring the repayment terms (including measures to adjust the loan period and extend the loan) based on the request of the borrowing customer, the financial capacity of the Farmer Support Fund, and the assessment results of the Farmer Support Fund regarding the customer's ability to repay the loan, specifically:

1. If the customer is unable to repay the principal and/or interest according to the original loan term and is assessed by the Farmer Support Fund as having the ability to fully repay the principal and/or interest according to the adjusted repayment term, then the Farmer Support Fund shall consider and adjust the repayment term of the principal and/or interest in accordance with the customer's repayment capability; the loan term shall remain unchanged.

2. If the customer is unable to repay the principal and/or interest according to the agreed loan term and is assessed by the Farmer Support Fund as having the ability to fully repay the principal and/or interest within a certain period after the loan term, then the Farmer Support Fund shall consider extending the loan term appropriately in accordance with the customer's repayment capability, with a maximum extension not exceeding half of the initial loan term under the credit contract.

3. The content and authority to decide on restructuring the repayment terms shall be in accordance with the Charter of Organization and Operation of the Farmer Support Fund and the internal regulations on lending and debt management of the Farmer Support Fund.

Article 21. Classification of debts, provision for and utilization of risk reserves for loans

1. The Farmers Support Fund shall implement debt classification, establish risk reserves for loan disbursements subject to risk, and utilize the reserve to address loan risks in accordance with regulations applicable to microfinance organizations, consistent with the operational characteristics of the Farmers Support Fund as guided by the Ministry of Finance.

2. For entrusted loan disbursements where the Farmers Support Fund does not bear the risk, no risk reserve shall be established.

3. At least five years from the date of utilizing the reserve to address risks and having implemented all measures to recover debts but failing to do so, based on the recommendation of the Risk Management Council of the Farmers Support Fund:

a) For the Central Farmers Support Fund: The Chairman of the Management Board decides to write off the debt transferred to off-balance sheet monitoring upon approval by the Standing Committee of the Central Vietnam Farmers' Union following a report to the Prime Minister for consideration and guidance;

b) For the Provincial Farmers Support Fund: The Chairman of the Management Board of the Provincial Farmers Support Fund decides to write off the debt transferred to off-balance sheet monitoring upon approval by the Standing Committee of the Provincial Farmers' Union following a report to the Chairman of the Provincial People's Committee for consideration and guidance;

c) For the District Farmers Support Fund: The Chairman of the Management Board of the District Farmers Support Fund decides to write off the debt transferred to off-balance sheet monitoring upon approval by the Standing Committee of the District Farmers' Union following a report to the Chairman of the District People's Committee for consideration and guidance.

4. Based on the provisions of Clause 1, Clause 2, and Clause 3 of this Article, the Farmers Support Fund shall develop a risk management regulation and submit it to the Management Board of the Farmers Support Fund for issuance after obtaining approval from the Standing Committee of the same-level Farmers' Union. The risk management regulation shall include the following main contents: principles for managing risks; cases, measures, and authorities for managing risks; documentation, procedures for managing risks, utilization of risk reserves, information and reporting systems, and responsibilities of relevant agencies in managing risks of the Farmers Support Fund.

Article 22. Risk Management Council

1. The Management Board of the Farmers Support Fund shall request the Standing Committee of the same-level Farmers' Union to establish a Risk Management Council. The composition of the Risk Management Council includes:

a) The Chairman of the Management Board of the Farmers Support Fund serves as the Chairman of the Risk Management Council;

b) The Head of the Supervisory Board, Director, and Chief Accountant of the Farmers Support Fund;

c) At least two other members decided by the Standing Committee of the same-level Farmers' Union.

2. Responsibilities of the Risk Management Council:

a) Periodically review the assessment and classification of debts, establishment, and utilization of risk reserves reported by the Director of the Farmers Support Fund;

b) Decide on the utilization of the reserve to manage risks;

c) Determine the recovery plan for debts that have been utilized with the reserve to manage risks, including specifying the time frame and measures for recovering the debt;

d) Monitor the implementation of debt recovery for debts that have been utilized with the reserve to manage risks;

đ) Prepare procedures and documentation to propose the write-off of debts transferred to off-balance sheet monitoring for submission to the competent authority for consideration and decision in accordance with Clause 3 of Article 21 of this Decree;

e) Develop the operational regulation of the Risk Management Council for signature and issuance by the Chairman of the Management Board of the Farmers Support Fund.

Article 23. Internal regulations on lending, debt management, and risk handling

1. The Central Steering Committee of the Vietnam Farmers' Union shall issue model internal regulations on lending, debt management, and risk handling applicable to the entire system of Farmers' Support Funds under the Vietnam Farmers' Union.

2. The model internal regulations on lending and debt management shall minimally include the following contents:

a) Lending conditions, lending limits, authority to decide on lending, interest rates, application forms, procedures, processes for loan approval and review, debt management;

b) Responsibilities and authorities of units and individuals in loan approval and review, credit quality management, collateral asset management (if any);

c) Procedures and contents for pre-loan, during-loan, and post-loan inspection and control;

d) Guarantee measures for loans, appraisal and management of collateral assets;

đ) Valuation of collateral assets, including principles, periodicity, methods, procedures, and responsibilities of each unit and individual involved in the valuation of collateral assets in accordance with the law;

e) Measures for debt recovery;

g) Information and reporting systems on lending activities and debt management.

3. Model internal regulations on risk handling shall minimally include the following contents:

a) Principles for handling risks;

b) Cases and measures for handling risks;

c) Authority for handling risks;

d) Documents, procedures for handling risks;

đ) Use of risk reserves;

e) Information and reporting systems and responsibilities of relevant agencies in handling risks of the Farmers' Support Fund.

Section 2

ACTIVITIES OF RECEIVING AND TRUST MANAGEMENT

Article 24. Receiving trust

1. The Farmers' Support Fund may receive trust management of capital for lending and debt recovery from the state budget, policy banks, upper-level Farmers' Support Funds, and organizations and individuals both within and outside the country; receive trust management of capital and operations of other state financial funds outside the budget that have the same target beneficiaries at the local level.

2. The currency for receiving trust lending is the Vietnamese Dong (VND).

3. The Farmers' Support Fund's receipt of trust shall be carried out according to the decision of the competent authority or the trust management agreement signed between the Farmers' Support Fund and the entrusting organization or individual. The trust receipt decision/agreement shall include the following basic contents:

a) Name, address, legal status, and legal representative of the entrusting party (if any) and the entrusted party;

b) Purpose of entrustment; contents of entrustment;

c) Entrusted capital amount; entrustment period; entrustment costs;

d) Beneficiary; responsibility for reviewing and supervising the entrustment activity; party bearing credit risk and responsibility for handling risks;

đ) Rights and obligations of the parties; handling cases of terminating the entrustment document before the term; provisions on handling violations (if any);

e) Other contents agreed upon by the parties in compliance with the law.

4. The Farmers' Support Fund has the responsibility to account separately and monitor the entrusted capital and assets formed from the entrusted capital (if any) from its operational capital and assets. The Farmers' Support Fund's trust receipt activities must ensure that they do not affect other activities according to the functions and tasks of the Farmers' Support Fund.

5. The Central Steering Committee of the Vietnam Farmers' Union shall issue model trust receipt regulations on lending applicable to the entire system of Farmers' Support Funds at all levels, based on which, Farmers' Support Funds at all levels shall issue specific trust receipt regulations detailing the scope, objects, authority, and responsibilities of each level in managing entrusted capital for lending and other contents as stipulated in this Decree and related laws.

Article 25. Entrustment

1. The upper-level Farmer Support Fund may entrust the lower-level Farmer Support Fund to carry out certain tasks within the lending process in order to enhance the effectiveness of loan management and reduce costs.

2. The Farmer Support Fund receiving the entrustment shall be paid service fees for the entrustment according to the level agreed upon in the entrustment document signed between the parties.

3. The Central Steering Committee of the Vietnam Farmers' Union shall issue a model regulation on entrustment lending applicable throughout the system of Farmer Support Funds at all levels. Based on this, each level of the Farmer Support Fund shall issue specific entrustment regulations detailing the scope, objects, authority, responsibilities of each level in managing entrusted loan capital, and other contents as prescribed in this Decree and relevant laws.

Chapter V

FINANCIAL REGIME, ACCOUNTING, AUDITING AND SUPERVISION, ASSESSMENT OF THE EFFECTIVENESS OF THE FARMER SUPPORT FUND'S OPERATIONS

Article 26. Financial regime, accounting and auditing

1. The Farmer Support Fund shall implement the financial regime, accounting, and reporting system as stipulated in this Decree and the guidance of the Ministry of Finance.

2. The fiscal year of the Farmer Support Fund runs from January 1 to December 31 annually.

3. The annual financial report of the Farmer Support Fund must be audited by an independent auditing organization or the State Audit Office in accordance with current laws.

Article 27. Annual financial plan for the Farmer Support Fund

1. The Farmer Support Fund is responsible for developing the annual financial plan, income and expenditure plans, fixed asset acquisition plans (if any), to submit to the Management Board of the Farmer Support Fund for decision-making after obtaining approval from the Central Steering Committee of the same-level Farmers' Union.

2. The approval and issuance process for the annual financial plan is as follows:

a) Before December 31 each year, the Director of the Farmer Support Fund reports to the Management Board of the Farmer Support Fund for consideration and approval of the annual financial plan, which will then be reported to the Central Steering Committee of the same-level Farmers' Union;

b) Before March 30 of the planning year, the Central Steering Committee of the same-level Farmers' Union considers and approves the annual financial plan, serving as the basis for the Farmer Support Fund to implement and execute.

Article 28. Principles of financial management

1. The Farmer Support Fund operates autonomously in finance; it has revenue and expenditure tasks that do not overlap with those of the state budget; it bears responsibility for fulfilling assigned tasks; it fulfills its obligations and commitments in accordance with the law.

2. The Farmer Support Fund implements financial transparency in accordance with the law on the state budget and related laws. The Chairman of the Management Board of the Farmer Support Fund is responsible for the accuracy and honesty of financial reports, statistics, and the implementation of financial transparency.

Article 29. Sources of operating capital for the Farmer Support Fund

1. Shareholders' equity:

a) Charter capital provided by the state budget;

b) Development fund, financial reserve fund;

c) Capital formed from non-repayable grants and donations from organizations and individuals both domestically and internationally;

d) Differences arising from revaluation of assets;

đ) Unallocated surplus or accumulated losses;

e) Other capital owned by the Farmer Support Fund.

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

3. Entrusted capital as prescribed in Article 24 of this Decree does not belong to the operating capital of the Farmer Support Fund and is accounted for and managed separately from the operating capital of the Farmer Support Fund.

Article 30. Registered Capital

1. The registered capital of the Central Farmers Support Fund shall be allocated from the development investment expenditure of the central budget. The Central Vietnam Farmers' Union shall submit to the Prime Minister for decision on the level of registered capital of the Central Farmers Support Fund during each period after reaching consensus with the Ministry of Finance and the Ministry of Planning and Investment.

2. The registered capital of the Provincial Farmers Support Fund shall be allocated from the development investment expenditure of the local budget. The Provincial Farmers' Union shall submit to the People's Committee at the provincial level for reporting to the People's Council at the provincial level for decision on the level of registered capital of the Farmers Support Fund during each period after reaching consensus with the Department of Finance and the Department of Planning and Investment.

3. The registered capital of the District Farmers Support Fund shall be allocated from the development investment expenditure of the local budget. The District Farmers' Union shall submit to the People's Committee at the district level for reporting to the People's Council at the district level for decision on the level of registered capital of the Farmers Support Fund during each period. In cases where there is no People's Council at the district level, the People's Committee at the district level shall decide on the level of registered capital of the District Farmers Support Fund after reaching consensus with the Financial Planning and Investment Office.

4. The Management Board of the Farmers Support Fund shall prepare the demand for support of registered capital from the state budget, send it to the Standing Committee of the Farmers' Union at the same level for approval, and consolidate it together with the annual state budget estimate of the Farmers' Union at the same level, then submit it to the competent authority for examination and approval in accordance with the State Budget Law, Public Investment Law, and current laws.

Article 31. Principles for Managing and Using Capital and Assets of the Farmers Support Fund

1. The management and use of the capital of the Farmers Support Fund must ensure safety, compliance with purpose, and effectiveness to fulfill the tasks of the Farmers Support Fund as stipulated in this Decree.

2. Regarding the management and use of temporarily idle funds:

a) The Farmers Support Fund may deposit temporarily idle funds at the State Treasury, the Social Policy Bank, and commercial banks established and operating legally in Vietnam according to the principle of ensuring safety and developing capital;

b) The Central Farmers Support Fund shall establish internal regulations on the management and use of temporarily idle funds to apply throughout the system of Farmers Support Funds, which must include at least the following contents: Criteria for selecting organizations to receive deposits under point a, Clause 2 of this Article; Ensuring the principle of safety and development of capital; Authority to decide on the selection of organizations to receive deposits.

3. Procurement, management, and use of assets of the Farmers Support Fund:

a) The Farmers Support Fund shall use the material and technical facilities of the Farmers' Unions at all levels to arrange office premises;

b) Investment in fixed assets and other assets (excluding office premises) to serve the activities of the Farmers Support Fund at each level shall be carried out according to the plan approved by the Standing Committee of the Farmers' Union at the same level and within the scope of the fund from the development investment fund of the Farmers Support Fund.

4. When the Farmers Support Fund has clear evidence proving loss of assets (including loan receivables), it must determine the cause, responsibility, and handle as follows:

a) Handle collateral assets (if any) according to the agreement of the parties in accordance with the provisions of the law;

b) If the cause is subjective, the person causing the loss must compensate. The authority to decide on the amount of compensation shall be implemented in accordance with the Charter of Organization and Operation of the Farmers Support Fund. Handling the responsibility of the person causing the loss shall be carried out in accordance with the law;

c) If the asset has been insured, it shall be handled according to the insurance contract;

d) Use the reserve fund extracted from expenses to offset losses in accordance with the provisions of the law;

đ) The value of the loss after being offset by personal, collective, and insurance organization compensation and using the reserve fund extracted from expenses, if still insufficient, shall be offset by the financial reserve fund of the Farmers Support Fund. If the financial reserve fund is insufficient to offset the loss, the shortfall shall be recorded as other expenses in the period.

Article 32. Safeguarding the Capital Safety of the Farmer Support Fund

The Farmer Support Fund shall be responsible for implementing regulations on ensuring the safety of operational capital as follows:

1. Managing, using capital and assets, distributing revenue surplus, financial management systems, accounting systems, and auditing according to the provisions of this Decree and guidelines from the Ministry of Finance.

2. Implementing regulations on loan limits as stipulated in this Decree.

3. Establishing risk reserves for lending activities as prescribed in this Decree.

4. Purchasing insurance for assets that must be insured under the law.

5. Handling the value of lost assets according to the provisions of Clause 4, Article 31 of this Decree.

6. Other measures to ensure capital safety as prescribed by law.

Article 33. Salary and Allowances of the Farmer Support Fund

1. The Farmer Support Fund shall implement salary and allowance mechanisms for employees and fund managers as follows:

a) Staff and civil servants belonging to the Vietnam Farmers' Association at all levels who are assigned to directly manage and operate the Farmer Support Fund (excluding members of the Supervisory Board) shall be paid salaries according to the Law on Public Officials and Civil Servants and shall receive monthly allowances from the Farmer Support Fund not exceeding one times the salary grade, rank, or position of these staff and civil servants;

b) Staff hired under labor contracts shall be paid wages, deductions from wages, and allowances (if any) as agreed upon in the labor contract signed between the Farmer Support Fund and the employee, ensuring compliance with the law;

c) Staff and civil servants from state agencies assigned to participate in managing the Farmer Support Fund (excluding staff and civil servants specified in points a and b of this clause) and members of the Farmer Support Fund's Supervisory Board shall be paid allowances for兼任职务的津贴，按照关于公务员薪酬制度的规定执行；

d) After the new salary system for officials, civil servants, and public institution employees linked to job positions, titles, and leadership positions is issued, the Farmer Support Fund shall comply with the relevant legal provisions.

2. Based on the provisions of Clause 1 of this Article, the Ministry of Labor, Invalids, and Social Affairs shall provide guidance on the salary, remuneration, and bonuses for employees and managers of the Farmer Support Fund, consistent with the nature, organizational structure, and operations of the Farmer Support Fund as stipulated in this Decree.

Article 34. Income of the Farmer Support Fund

1. The income of the Farmer Support Fund includes:

a) Interest income from loans as stipulated in this Decree;

b) Fees for agency services;

c) Interest income from deposits at the State Treasury, the Social Policy Bank, and commercial banks;

d) Other lawful income (if any) as prescribed by law.

2. The Ministry of Finance shall provide detailed guidance on the income of the Farmer Support Fund as stipulated in Clause 1 of this Article.

Article 35. Expenses of the Farmer Support Fund

1. The expenses of the Farmer Support Fund are costs incurred during the period necessary for the operation of the Farmer Support Fund, including:

a) Operational expense costs: Costs for lending activities, costs for establishing risk reserves and other reserve funds (if any), costs for debt collection activities, insurance costs, and other operational expense costs;

b) Administrative expense costs: Costs for staff and employees; administrative activity costs; investment and asset procurement costs, and other administrative expense costs;

c) Tax payment costs, fees, and charges (if any) as prescribed by law;

d) Other extraordinary costs.

2. The Ministry of Finance shall provide detailed guidance on the expenses of the Farmer Support Fund as stipulated in Clause 1 of this Article.

Article 36. Financial Results and Distribution of Financial Results

1. The financial results of the Farmer Support Fund for a fiscal year are the difference between total revenue and total expenses incurred during that fiscal year:

a) The financial result of the Farmer Support Fund is surplus when the difference between income and expenses incurred by the Farmer Support Fund in a fiscal year is positive;

b) The financial result of the Farmer Support Fund is deficit when the difference between income and expenses incurred by the Farmer Support Fund in a fiscal year is negative.

2. After paying taxes and other payments to the state budget as prescribed in this Decree and tax laws (if applicable), the difference between total income and total expenses as stipulated in Clause 1 of this Article shall be distributed as follows:

a) To cover cumulative losses up to the settlement date;

b) To allocate 20% to the development investment fund;

c) To allocate 10% to the financial reserve fund; the maximum balance of the financial reserve fund shall not exceed 25% of the charter capital of the Farmer Support Fund;

d) To allocate a maximum of three months' salary and wage allowances of the Fund's staff into the award and welfare fund; to allocate a maximum of one and a half months' salary of the management personnel into the management award fund. The ratio of allocation to the award and welfare fund for employees and the management award fund shall be determined based on the assessment and classification of the Farmer Support Fund and the evaluation of the management personnel's performance according to this Decree and the guidance of the Ministry of Finance;

đ) In cases where the remaining income-expenditure difference after allocating funds as prescribed in points a, b, and c of this clause is insufficient to allocate funds as prescribed in point d of this clause, the Farmer Support Fund may reduce the allocation to the development investment fund to supplement the required allocation but the reduction shall not exceed the amount allocated to the development investment fund in the fiscal year;

e) Any remaining difference (if any) after allocating the above funds shall be added to the development investment fund of the Farmer Support Fund.

3. Purposes of using the funds allocated after income-expenditure differences:

a) The development investment fund is used to expand the scale of operations, modernize technology, equipment, working conditions of the Farmer Support Fund, and increase the charter capital of the Farmer Support Fund;

b) The financial reserve fund is used to cover the remaining losses from asset losses, unrecoverable debts occurring during the operation process after being covered by the disposal of collateral (if any), compensation from organizations and individuals causing losses, insurance organizations, and using the reserve fund allocated in expenses as prescribed in this Decree;

c) The award fund for staff is used to reward periodically or unexpectedly the staff of the Farmer Support Fund who have innovative ideas improving technical processes, business procedures with high efficiency or have effectively contributed to the activities of the Farmer Support Fund. The Standing Committee of the Farmers' Association at all levels guides the expenditure standards for each recipient so that the Farmer Support Fund can implement them;

d) The welfare fund is used to finance sports, cultural, public welfare activities for the collective of staff of the Farmer Support Fund; to provide regular and emergency hardship allowances for the staff of the Farmer Support Fund. The Director of the Farmer Support Fund shall coordinate with the Trade Union Executive Board or the Trade Union Group (in case there is no Trade Union Executive Board) to manage and use this fund;

đ) The management award fund is used to reward the management personnel of the Farmer Support Fund. The award amount is decided by the Chairman of the Farmers' Association at the same level based on the evaluation of the management personnel's performance of the Farmer Support Fund according to this Decree.

Article 37. Reporting System of the Farmer Support Fund

1. For the Central Farmer Support Fund: To compile, prepare, and submit periodic reports every six months and annually for the entire national system of Farmer Support Funds. The consolidated report shall be submitted to the Vietnam Farmers' Union Central Committee, the Ministry of Finance, the State Bank of Vietnam, and the Ministry of Planning and Investment for monitoring and supervision.

2. For provincial and district-level Farmer Support Funds: To prepare and submit periodic reports every six months and annually to the same-level Farmers' Union for reporting to the People's Committees at the provincial and district levels where the Farmer Support Fund was established, and to submit to the Central Farmer Support Fund for consolidation as stipulated in Clause 1 of this Article.

3. Types of six-monthly and annual reports of the Farmer Support Fund as specified in Clauses 1 and 2 of this Article include:

a) Financial reports including: Balance sheet; statement of financial performance; cash flow statement; statement of changes in equity; notes to the financial statements as prescribed by law; financial income and expenditure report; report on the distribution of surplus and deficit and the use of funds as guided by the Ministry of Finance;

b) Report summarizing the operational activities of the Farmer Support Fund.

4. Deadline for submitting reports:

a) Six-monthly report must be submitted no later than July 31 each year;

b) Annual report must be submitted no later than 90 days from the end of the fiscal year; specifically, the audited annual financial report of the Farmer Support Fund must be submitted no later than 30 days from the date of the audit results.

5. Method of submitting reports: The Farmer Support Fund shall submit reports through direct submission or postal service.

6. In exceptional cases, the Farmer Support Fund has the responsibility and obligation to provide information and reports to competent authorities upon request.

7. Annually, Farmers' Unions at all levels shall implement the reporting system as prescribed in Article 12 of Decree No. 163/2016/NĐ-CP dated December 21, 2016, of the Government detailing certain provisions of the State Budget Law and subsequent amendments and supplements (if any).

8. The Farmer Support Fund shall comply with other reporting systems as prescribed by laws on inspection, examination, and auditing.

Article 38. Supervision and Evaluation of the Effectiveness of the Farmer Support Fund's Operations

1. The Standing Committees of Farmers' Unions at all levels shall be responsible for comprehensive supervision and evaluation of the effectiveness of the operations of the same-level Farmer Support Fund.

2. Annually, the Farmer Support Fund shall evaluate its effectiveness based on the following indicators:

a) Indicator 1: Loan balance;

b) Indicator 2: Non-performing loan ratio;

c) Indicator 3: Annual financial results;

d) Indicator 4: Compliance with laws on investment, management, and use of capital, obligations to the state budget, and regulations on financial reporting for financial oversight.

3. When calculating the indicators prescribed in Clause 2 of this Article, factors affecting the results shall be considered and excluded:

a) Due to natural disasters, fires, epidemics, wars, and other force majeure causes;

b) Due to policy adjustments by the State or market fluctuations significantly impacting the income and operations of the Farmer Support Fund.

4. The Standing Committees of Farmers' Unions at all levels shall provide comments on the financial plans of the same-level Farmer Support Fund and assign evaluation criteria and classification targets to the same-level Farmer Support Fund in writing before April 30 of the planning year, which shall not be adjusted during the implementation period except in cases of force majeure.

5. The Ministry of Finance shall guide the evaluation of the effectiveness of operations and classification of the Farmer Support Fund according to this Decree and relevant laws, taking into account the specific nature of the Farmer Support Fund's operations.

Chapter VI

SEPARATION, MERGER, AND DISSOLUTION OF THE FARMER SUPPORT FUND

Article 39. Division and Merger of the Farmer Support Fund

1. The division and merger of the Farmer Support Fund shall be carried out in the following cases:

a) Reorganization of administrative boundaries pursuant to the decision of the competent authority;

b) Merging the Farmer Support Fund at the district level into the Farmer Support Fund at the provincial level when the People's Committee at the district level assesses that maintaining the operation of the Farmer Support Fund at the district level is ineffective, unfeasible, or unable to allocate suitable personnel as stipulated in Articles 10, 11, and 12 of this Decree, and such merger is agreed upon by the People's Committee at the provincial level.

2. The People's Committee at the provincial level shall guide the division and merger of the Farmer Support Fund as provided for in Clause 1 of this Article, ensuring compliance with relevant laws.

Article 40. Cases of Dissolution of the Farmer Support Fund

The Farmer Support Fund shall be dissolved if it falls under any of the following circumstances:

1. The Farmer Support Fund is assessed as failing to complete its tasks and has an average annual loan balance ratio (excluding entrusted loans) to the net asset value of the Farmer Support Fund lower than 20% over five consecutive years from the date this Decree takes effect.

2. The non-performing loan ratio to the total loan balance exceeds 50%, and/or the cumulative deficit of income and expenditure is greater than or equal to 75% of the paid-in capital of the Farmer Support Fund over five consecutive years from the date this Decree takes effect.

3. Cases where the Central Farmer Support Fund/provincial Farmer Support Fund/district-level Farmer Support Fund does not need to continue operations according to the assessment of the Prime Minister/provincial People's Committee/district-level People's Committee.

Article 41. Liquidation Council of the Farmer Support Fund

1. The Prime Minister/provincial People's Committee/district-level People's Committee shall establish a liquidation council to advise on the dissolution plan and organize the implementation of the dissolution of the Central Farmer Support Fund/provincial Farmer Support Fund/district-level Farmer Support Fund.

2. The composition of the liquidation council of the Central Farmer Support Fund/provincial Farmer Support Fund/district-level Farmer Support Fund includes:

a) Leaders of the Vietnam Farmers' Union/provincial People's Committee/district-level People's Committee;

b) Representatives of leaders of the following agencies at the same level: Finance, Planning and Investment, Home Affairs, Labor, Invalids and Social Affairs;

c) Representatives of the State Bank of Vietnam (for the Central Farmer Support Fund) and representatives of the provincial branch of the State Bank of Vietnam (for the provincial Farmer Support Fund and district-level Farmer Support Fund);

d) Management Board and Supervisory Board of the Farmer Support Fund at the same level;

đ) Representatives of related agencies (if necessary) as decided by the Prime Minister/provincial People's Committee/district-level People's Committee.

Article 42. Dissolution Process of the Farmer Support Fund

1. The liquidation council shall develop a dissolution plan, report to the Prime Minister/provincial People's Committee/district-level People's Committee for approval. The dissolution plan shall include the following contents:

a) An independent auditor's evaluation of the current financial status and determination of the remaining net asset value of the Farmer Support Fund, except when the Farmer Support Fund has already submitted an audited financial report within six months prior to the decision to dissolve the Farmer Support Fund;

b) A plan for liquidating assets, handling sources of funds, ongoing loans and investments, and settling debts of the Farmer Support Fund;

c) A plan for transferring entrusted items of entrusted organizations;

d) A plan for handling obligations arising from labor contracts;

đ) Provisions for terminating all rights and interests of the Farmer Support Fund.

2. Based on the approved plan proposed by the liquidation council, the Prime Minister/provincial People's Committee/district-level People's Committee shall issue a decision to dissolve the Central Farmer Support Fund/provincial Farmer Support Fund/district-level Farmer Support Fund and announce the dissolution through mass media.

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

a) The Farmer Support Fund shall fulfill the provisions set forth in Article 43 of this Decree;

b) The liquidation council shall fulfill the provisions set forth in Article 44 of this Decree.

4. The liquidation council shall automatically cease operations when the Farmer Support Fund has completed all dissolution procedures as prescribed in this Decree and relevant laws.

5. The dissolution period of the Farmer Support Fund shall not exceed two years from the effective date of the dissolution decision. In case of necessity based on practical requirements, the Prime Minister/provincial People's Committee/district-level People's Committee may decide to extend the dissolution period of the Central Farmer Support Fund/provincial Farmer Support Fund/district-level Farmer Support Fund but not exceeding one year.

Article 43. Responsibilities of the Farmer Support Fund after the dissolution decision takes effect

1. Immediately cease fundraising, lending activities, and related activities when the dissolution decision becomes effective.

2. Within ten working days from the date the dissolution decision becomes effective, the Farmer Support Fund must carry out the following:

a) Close accounting books; inventory assets; reconcile receivables and payables; prepare financial statements up to the date the dissolution decision becomes effective;

b) Prepare a list of deposits made by the Farmer Support Fund at deposit-taking organizations; a list of debts payable, including raised capital; a list of borrowers and principal and interest receivable (separated into recoverable debt and non-recoverable debt); a list of entrusted items and received entrustments;

c) Submit a document requesting the tax authority to confirm the fulfillment of tax obligations by the Farmer Support Fund (if applicable).

3. Within thirty working days from the date the dissolution decision becomes effective, the Farmer Support Fund must hand over to the Dissolution Council:

a) Financial reports, accounting books, and other documents related to the dissolution of the Farmer Support Fund; lists of loans, investments, entrusted items, and received entrustments of the Farmer Support Fund;

b) All assets legally owned, managed, and used by the Farmer Support Fund (including unrecovered assets).

Article 44. Responsibilities of the Dissolution Council after the dissolution decision takes effect

1. Within five working days from the date the dissolution decision becomes effective, the Dissolution Council shall be responsible for:

a) Recovering the seal of the Farmer Support Fund for the purpose of dissolution;

b) Organizing the dissolution of the Farmer Support Fund according to the approved plan;

c) Within five working days from the end of the dissolution process, the Dissolution Council shall report to the Prime Minister/Provincial People's Committee/District People's Committee on the results of the dissolution.

2. The Dissolution Council may use the seal of the Farmer Support Fund to serve the dissolution process and request relevant state agencies to assist in recovering assets.

Chapter VII

RESPONSIBILITIES OF RELATED AUTHORITIES AND ORGANIZATIONS

Article 45. Responsibilities of the Provincial/Municipal People's Council

1. Approve the establishment, organizational structure improvement, and operation of the Provincial/Municipal Farmer Support Fund based on the proposal of the Provincial/Municipal People's Committee.

2. Approve the plan for capital contribution and supplementary capital contribution to the Farmer Support Fund from provincial/municipal budget sources.

3. Supervise the operations of the Farmer Support Fund.

4. Perform other tasks as stipulated in this Decree and relevant laws.

Article 46. Responsibilities of the Provincial/Municipal People's Committee

1. Carry out functions and responsibilities towards the Farmer Support Fund as prescribed in this Decree and relevant laws.

2. Decide on the establishment, organizational structure improvement, operation, division, merger, and dissolution of the Farmer Support Fund as prescribed in this Decree and relevant laws.

3. Propose to the Provincial/Municipal People's Council to approve the establishment; organizational structure improvement, and operation; plans for capital contribution and supplementary capital contribution from the state budget.

4. Allocate funds for capital contribution and supplementary capital contribution to the Provincial/Municipal Farmer Support Fund according to the plans approved by the People's Council.

5. Manage, inspect, and supervise comprehensively the operational and financial situation of the Provincial/Municipal Farmer Support Fund.

Article 47. Responsibilities of the Central Vietnam Farmers' Union and Provincial/Municipal/District/Village Farmers' Unions

1. Managing state budget capital at the same-level Farmer Support Fund in accordance with this Decree and relevant laws, ensuring safety and development of capital; mobilizing and developing non-budget capital to supplement the Farmer Support Fund.

2. Inspecting and supervising lending activities of the Farmer Support Fund:

a) For the Central Farmer Support Fund: The Central Vietnam Farmers' Union shall take the lead and coordinate with the Ministry of Finance and the State Bank of Vietnam in inspecting and supervising the lending activities of the Central Farmer Support Fund in accordance with this Decree and relevant laws.

b) For provincial/district Farmer Support Funds: The provincial/district Farmers' Union shall take the lead and coordinate with local financial agencies, branches of the State Bank of Vietnam at the provincial level, and the People's Committee at the provincial/district level in inspecting and supervising the lending activities of the provincial/district Farmer Support Fund in accordance with this Decree and relevant laws.

3. The Standing Committee of the Central Vietnam Farmers' Union shall be responsible for:

a) Drafting a proposal to improve the organizational structure and operations of the Central Farmer Support Fund to submit to the Prime Minister for approval in accordance with Article 6 of this Decree;

b) Issuing model regulations on the organization and operation of the Farmer Support Fund and internal rules on lending, debt management, and risk handling applicable to the entire system of Farmer Support Funds under the Vietnam Farmers' Union;

c) Approving, amending, and supplementing the regulations on the organization and operation of the Central Farmer Support Fund;

d) Approving the direction of operations of the system of Farmer Support Funds under the Vietnam Farmers' Union for the medium and long term; approving annual, medium-term, and long-term activity plans and financial plans of the Central Farmer Support Fund; approving financial reports, distribution of surplus income, and establishment of support funds annually of the Central Farmer Support Fund in accordance with regulations;

đ) Guiding lending activities of the system of provincial/district/village-level Farmer Support Funds in compliance with this Decree and relevant laws;

e) Issuing operational regulations for the Supervisory Board of the Farmer Support Fund; inspection and supervision regulations for the Farmer Support Fund in accordance with the law; inspecting the guidance on establishing and managing the Farmer Support Fund by the Standing Committees of provincial/district/village-level Farmers' Unions; inspecting the operations of provincial/district/village-level Farmer Support Funds;

g) Allocating personnel from the Central Vietnam Farmers' Union's agency to establish the operational mechanism of the Central Farmer Support Fund in accordance with this Decree;

h) Reporting to the competent authority to consider allocating state budget capital to supplement the charter capital of the Central Farmer Support Fund in accordance with this Decree and relevant laws;

i) Monitoring and comprehensively evaluating the effectiveness of the operations of the Central Farmer Support Fund;

k) Directing the evaluation of the performance of fund managers in the entire system; annually, conducting evaluations of the performance of the manager of the Central Farmer Support Fund;

l) Performing other tasks as stipulated in this Decree and relevant laws.

4. The Standing Committee of the Provincial/District Farmers' Union shall be responsible for:

a) Drafting a proposal to improve the organizational structure and operations of the same-level Farmer Support Fund in accordance with Article 6 of this Decree and submitting it to the competent authority for issuance of the Decision to establish the same-level Farmer Support Fund in accordance with Article 7 of this Decree;

b) Approving, amending, and supplementing the regulations on the organization and operation of the same-level Farmer Support Fund;

c) Implementing directives and decisions of the Standing Committee of the higher-level Farmers' Union regarding the construction and management of the same-level Farmer Support Fund;

d) Approving annual, medium-term, and long-term activity plans and financial plans of the same-level Farmer Support Fund; approving financial reports, distribution of surplus income, and establishment of funds annually of the same-level Farmer Support Fund in accordance with regulations;

đ) Reporting to the competent authority to consider allocating state budget capital to provide charter capital for the same-level Farmer Support Fund;

e) Allocating personnel from the same-level Farmers' Union's agency to establish the operational mechanism of the Farmer Support Fund in accordance with this Decree;

g) Organizing inspections and supervision of the operations of the same-level and subordinate Farmer Support Funds;

h) Monitoring and comprehensively evaluating the effectiveness of the operations of the same-level Farmer Support Fund;

i) Annually, conducting evaluations of the performance of the manager of the same-level Farmer Support Fund;

k) In cases where the district-level Farmer Support Fund is not established, the Standing Committee of the District Farmers' Union shall implement the responsibilities prescribed in Clause 5 of this Article;

l) Performing other tasks as stipulated in this Decree and relevant laws.

5. The Standing Committee of the Village-level Farmers' Union shall be responsible for:

a) Drafting plans to mobilize contributions and support from cadres, members, organizations, and individuals in the locality for the Farmer Support Fund;

b) Formulating joint loan schemes for groups of Farmers' Union members; advising and supporting farmers in implementing loan schemes; monitoring and urging timely repayment of loans;

c) Implementing periodic reporting systems on the management and use of borrowed capital according to the internal rules on lending and debt management issued by the Standing Committee of the Central Vietnam Farmers' Union in accordance with this Decree.

Article 48. Responsibilities of the Ministry of Finance

1. To take the lead and coordinate with relevant ministries and sectors to submit to the Government for amendments and supplements to the provisions of this Decree if necessary.

2. To take the lead and coordinate with the State Bank of Vietnam and related agencies to issue guiding documents on implementing this Decree regarding financial management mechanisms, accounting systems, effectiveness assessment, classification, loan classification, provision establishment and utilization for risk mitigation of the Farmers Support Fund.

Article 49. Responsibilities of the Ministry of Planning and Investment

1. To take the lead and coordinate with relevant ministries, sectors, and organizations to report to the competent authority for balancing and allocating state budget investment expenditure estimates to supplement the charter capital of the Central Farmers Support Fund according to the provisions of the Law on Public Investment and the State Budget Law.

2. To coordinate with the Ministry of Finance and relevant ministries and sectors in building and perfecting the legal framework for establishing, organizing, and operating the Farmers Support Fund and implementing this Decree in accordance with the law.

Article 50. Responsibilities of the State Bank of Vietnam

To coordinate with the Ministry of Finance and relevant ministries and sectors in building and perfecting the legal framework for establishing, organizing, and operating the Farmers Support Fund and implementing this Decree in accordance with the law.

Article 51. Responsibilities of the Ministry of Labor, Invalids and Social Affairs

1. To take the lead and coordinate with relevant ministries, sectors, and organizations to guide the management of labor, wages, remuneration, and bonuses for employees and managers of the Farmers Support Fund in accordance with the nature, organizational structure, and activities of the Farmers Support Fund as stipulated in this Decree.

2. To coordinate with the Ministry of Finance and relevant ministries, sectors, and organizations in building and perfecting the legal framework for establishing, organizing, and operating the Farmers Support Fund and implementing this Decree in accordance with the law.

Chapter VII

IMPLEMENTATION

Article 52. Effective date

This Decree takes effect from August 8, 2023.

Within one year from the date this Decree takes effect, insurance enterprises currently operating both life insurance and non-life insurance businesses must complete the procedures to separate their life insurance business operations from their non-life insurance business operations.

1. For the implementation of credit contracts signed between the Farmers Support Fund and related parties before this Decree takes effect: continue to implement in accordance with the agreements signed in the credit contract; in cases where the credit contract is amended or supplemented after this Decree takes effect, it shall be implemented in accordance with the provisions of this Decree.

2. The lending interest rate of the Farmers Support Fund will continue to be implemented at the current level until the lending interest rate of the Farmers Support Fund is issued by the competent authorities according to the provisions of this Decree.

3. Based on the provisions of Clause 1, Article 21 of this Decree, in cases where the risk reserve surplus exceeds the amount required to be set aside, the excess portion shall be offset against income; in cases where the risk reserve is less than the amount required to be set aside, the Farmers Support Fund shall make up the shortfall in the risk reserve according to the provisions of this Decree and the guiding documents for its implementation.

4. For Farmers Support Funds currently in operation: within a maximum period of two years from the date this Decree takes effect, all levels of the Farmers Support Fund shall complete the reorganization of their organizational structures and operations in accordance with the contents of the restructuring plan for the organizational structure of the Farmers Support Fund approved by the competent authority as stipulated in Article 6 of this Decree.

Article 54. Implementation Organization

Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of People's Councils of provinces and centrally governed cities, Chairpersons of provincial-level People's Councils, Chairpersons of Farmers' Unions at all levels, Directors of Farmers Support Funds at all levels, and related organizations and individuals are responsible for enforcing this Decree.