Decree No. 39/2019/NĐ-CP On the organization and operation of the Small and Medium Enterprise Development Fund

DECREE
On the organization and operation of the Small and Medium Enterprise Development Fund

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

Pursuant to the Law on Supporting Small and Medium Enterprises dated June 12, 2017;

Pursuant to the Enterprise Law dated November 26, 2014;

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

Pursuant to the Law on Management and Use of State Capital for Production and Business Investment in Enterprises dated November 26, 2014;

On the basis of the Law on Credit Institutions dated June 16, 2010, and the Law Amending and Supplementing Some Provisions of the Law on Credit Institutions dated November 20, 2017;

At the proposal of the Minister of Planning and Investment,

The Government issues this Decree on the organization and operation of the Small and Medium Enterprise Development Fund.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Article 1. This Decree provides detailed guidance on the implementation of Article 20 of the Law on Support for Small and Medium Enterprises regarding the organization and operation of the Small and Medium Enterprise Development Fund (hereinafter referred to as the Fund).

Article 2. This Decree applies to the Small and Medium Enterprise Development Fund, small and medium enterprises, and organizations and individuals related to the support activities for small and medium enterprises.

Article 3. Legal status and legal personality of the Fund

Clause 1. The Small and Medium Enterprise Development Fund is a state financial fund outside the budget, operating without profit objectives, established by the Prime Minister.

Clause 2. The Fund operates under the model of a Limited Liability Company with one member, where the State holds 100% of the charter capital.

Clause 3. The Fund has legal personality, has charter capital, maintains separate financial statements, has its own seal, and is allowed to open accounts at the State Treasury and commercial banks legally operating in Vietnam in accordance with the law.

Clause 4. The Ministry of Planning and Investment is the agency representing the State's ownership rights, performing the rights and obligations of the State's representative owner.

Clause 5. The main office of the Fund is located in Hanoi City.

Article 4. Principles and Objectives of the Fund's Operation

Clause 1. Principles of operation

Point a) The Fund operates on the principle of financial autonomy, ensuring capital safety;

Point b) The Fund is liable up to the limit of its own capital;

Point c) The Fund supports the correct target and meets the conditions stipulated in this Decree.

Clause 2. Objectives of operation

Point a) To enhance the competitiveness of small and medium enterprises, contributing to increasing income and creating jobs for workers;

Point b) To create a source of funding to support and develop small and medium enterprises;

Point c) To improve the efficiency of state capital management in supporting small and medium enterprises.

Article 4. Definitions

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

Clause 3. "Direct lending" refers to the Fund directly implementing loans to small and medium enterprises.

Clause 4. "Indirect lending" refers to the Fund implementing loans to small and medium enterprises through transferring funds to commercial banks established and operating in accordance with the law.

Clause 5. "Sponsorship" refers to the Fund providing capital and implementing activities to enhance capacity for small and medium enterprises.

Clause 6. "Risk acceptance ratio" is the highest risk ratio in a fiscal year that the Fund can accept when losses occur. The risk acceptance ratio is measured by the loss value reducing the actual paid-in charter capital of the Fund at the time of determining the risk acceptance ratio.

Chapter II
TASKS, LIMITATIONS AND ORGANIZATIONAL STRUCTURE
OF THE SMALL AND MEDIUM ENTERPRISE DEVELOPMENT FUND

Article 5. Tasks and Authorities of the Fund

1. Tasks of the Fund

a) Supporting small and medium enterprises in accordance with this Decree;

b) Receive, manage, and utilize capital in accordance with regulations;

c) Implementing reporting and accounting systems as prescribed in this Decree and relevant laws;

d) Being subject to inspection, examination, and auditing by competent state management agencies in accordance with the law;

đ) Purchasing property insurance and other types of insurance as prescribed by law to ensure safety for the Fund;

e) Providing data, publicly announcing regulations on operations, financial mechanisms, results of activities of the Fund, and annual audited financial reports in accordance with this Decree and relevant laws;

2. Authorities of the Fund

a) Organize and operate in accordance with the principles and operational objectives of the Fund;

b) Selecting, arranging, using, training, and employing labor in accordance with this Decree and relevant laws;

c) Regularly and randomly inspecting and supervising the use of the Fund's capital; recovering support capital from organizations that violate conditions and commitments signed with the Fund;

d) Hiring organizations, experts, and scientists to assist in the Fund's activities;

đ) Implementing or using consulting services, evaluating management capabilities, financials, technology, credit ratings for small and medium enterprises in accordance with the law;

e) Requesting enterprises to pay costs when participating in the Fund's support activities;

g) Organizing seminars, communication, training, consulting, investment promotion, trade, information provision, database provision, research and development support, investment, establishment of incubation bases, technical facilities, shared workspaces, and other support activities in accordance with this Decree and the Law on Support for Small and Medium Enterprises;

Article 6. Management Structure of the Fund

The management structure of the Fund includes:

1. Board of Members;

3. Director and supporting staff.

Article 7. Board of Members

1. The Board of Members acts on behalf of the Fund to exercise rights and fulfill obligations of the Fund as prescribed in this Decree and other relevant laws.

2. The Board of Members consists of a Chairman and two members. The Chairman and members work under a full-time system, appointed, relieved, dismissed, rewarded, and disciplined by the Minister of Planning and Investment.

3. The Chairman and members of the Board of Members have a five-year term and may be reappointed.

b) Issue regulations governing the operation of the Fund in accordance with this Decree;

c) Deciding on capital management plans, construction; buying, selling, managing, and using assets within their authority as prescribed by law;

e) Deciding on the establishment, restructuring, and dissolution of branches, representative offices, and dependent units after obtaining approval from the Ministry of Planning and Investment;

g) Deciding on the establishment, restructuring, and dissolution of specialized and operational units;

h) Deciding on functions, tasks, authorities, and organizational structures of specialized and operational units, branches, representative offices, and dependent units;

a) The Chairman of the Board of Members must have a bachelor's degree or higher and at least five years of experience in management and operation in economic, financial, banking, business administration, law, accounting, and auditing fields;

b) Members of the Board of Members must have a bachelor's degree or higher and experience in management and operation in economic, financial, banking, business administration, law, accounting, and auditing fields;

c) Not being the spouse, father, adoptive father, mother, adoptive mother, child, adoptive child, full sibling, brother-in-law, sister-in-law, sister-in-law, or brother-in-law of the Fund manager;

d) Not concurrently serving as a civil servant in state agencies, political organizations, social-political organizations, or managing and operating another enterprise;

đ) Not having been dismissed as Chairman of the Board of Members, member of the Board of Members, Chairman of the company, Director, Deputy Director, General Manager, or Deputy General Manager of a state-owned enterprise.

6. Rights and Obligations of Board of Members' Members

a) Attending meetings to discuss, propose, and vote on issues within the Board of Members' authority;

b) Performing tasks and duties assigned by the Chairman of the Board of Members within their authority;

d) Exercising other rights and fulfilling other obligations as prescribed in this Decree.

7. Responsibilities of the Chairman and Members of the Board of Members

a) Adhering to laws, regulations in this Decree, and decisions of the Ministry of Planning and Investment;

b) Complying with resolutions of the Board of Members;

c) Personally responsible when misusing the Fund's name to commit illegal acts;

8. Operating Costs of the Board of Members

Operating costs of the Board of Members are included in the Fund's management expenses. The Director ensures necessary conditions and means for the Board of Members' activities.

9. Working System, Conditions, and Procedures for Holding Meetings of the Board of Members in accordance with the law applicable to a State-owned Limited Liability Company with 100% state-owned charter capital.

Article 8. Chairman of the Board of Members

The Chairman of the Board of Members is the legal representative of the Fund. The Chairman of the Board of Members has the following rights and obligations:

1. To sign on behalf of the Board of Members to receive capital and other resources transferred from the State and related organizations to the Fund.

2. To sign documents within the authority of the Board of Members on behalf of the Board of Members.

3. To convene and chair meetings of the Board of Members or seek opinions from members of the Board of Members.

5. To assign tasks to members of the Board of Members to fulfill the duties and powers of the Board of Members.

6. To organize the implementation of the Board of Members' tasks, monitor and supervise the execution of resolutions and decisions of the Ministry of Planning and Investment and the Board of Members.

7. To organize supervision, directly supervise, and evaluate the results of implementing strategic goals, operational plans, and operational outcomes of the Fund, and the management and operation results of the Director.

8. In necessary cases, the Chairman of the Board of Members may delegate in writing to one of the Board of Members' members or delegate to the Director to perform their functions and duties. The person delegated is responsible to the Chairman of the Board of Members for the tasks delegated.

9. To perform other rights and obligations as required by the Ministry of Planning and Investment.

b) Not being the spouse, father, adopted father, mother, adopted mother, child, adopted child, full sibling, brother-in-law, sister-in-law, or sister-in-law of the Fund manager;

d) Not concurrently serving as a civil servant in state agencies, political organizations, social-political organizations, or managing and operating another enterprise;

a) Supervise the organization and implementation of the Fund's five-year strategy and annual plans;

a) To comply with laws, decisions of the Ministry of Planning and Investment, and professional ethics when performing the rights and obligations stipulated in this Decree;

b) To perform assigned rights and obligations honestly, carefully, and to the best of their ability to protect the interests of the State and the legitimate interests of all parties at the Fund;

c) To bear personal responsibility if they abuse the Fund's name to commit acts violating the law.

a) The Inspector works exclusively at the Fund;

b) The Inspector independently and proactively performs tasks according to the plan;

c) The Inspector is responsible for developing work plans and reporting on the fulfillment of tasks to the Ministry of Planning and Investment.

6. Salary and remuneration of the Inspector

a) The Inspector receives salary and remuneration based on the results of supervision and the performance and effectiveness of the Fund's operations;

b) The Ministry of Planning and Investment decides the level and payment of the Inspector's salary and remuneration based on the completion of tasks and legal provisions;

c) The operating costs of the Inspector are included in the Fund's management expenses according to legal regulations.

Article 10. Director

2. The criteria and conditions for appointing the Director are stipulated in points b, c, d, đ of Clause 5, Article 7 of this Decree.

a) Organizing the management of the Fund's operations; implementing and evaluating the results of implementing resolutions and decisions of the Board of Members; being responsible to the Board of Members for the results of the Fund's operations according to the authority prescribed in this Decree;

b) Issuing internal management documents in accordance with the Fund's management requirements and in compliance with the provisions of this Decree;

c) Submitting to the Board of Members for decision on the five-year operation plan, annual operation plan, annual financial report of the Fund, and organizing implementation after approval;

d) Submitting to the Board of Members for decision on profit distribution, annual reserve fund establishment, and usage quotas;

d) Managing the Fund's assets and capital in accordance with the law;

e) Proposing organizational restructuring plans;

g) Submitting to the Board of Members for decision on planning, appointing, dismissing, evaluating, rewarding, and disciplining Fund managers within the authority prescribed in this Decree;

h) Deciding on labor recruitment according to the plan; evaluating, rewarding, disciplining, and implementing policies and benefits for Fund employees according to the provisions of this Decree;

i) Performing other tasks assigned or delegated by the Board of Members as stipulated in this Decree.

4. Responsibilities of the Director

a) Adhering to the law, performing the rights and obligations assigned according to the provisions of this Decree;

b) Implementing Board of Members' resolutions and decisions;

c) To bear personal responsibility if they abuse the Fund's name to commit acts violating the law.

1. During the process of implementing Board of Members' resolutions and decisions, if the Director identifies issues that are not beneficial to the Fund, the Director shall report to the Board of Members for review and adjustment. In case the Board of Members does not adjust the resolution or decision, the Director must still implement it but must take responsibility to report to the Ministry of Planning and Investment for review and resolution according to their authority.

2. The Director has the responsibility to periodically report to the Board of Members on the Fund's operational status. In necessary cases, the Chairman of the Board of Members may require the Director to directly report to the Board of Members or send representatives from the Board of Members to attend Fund meetings.

3. The Board of Members delegates tasks to the Director for the Fund's operations and is responsible for such delegation. The Director is accountable to the Board of Members and the law for the delegated work.

Article 12. Administrative Machinery

The administrative machinery of the Fund includes Deputy Directors and specialized units, business units, branches, representative offices (hereinafter referred to as business units).

1. Deputy Director

a) Deputy Directors assist the Director in performing tasks assigned and are responsible before the Director and the law for the assigned tasks; delegation of authority. Deputy Directors are appointed or hired based on personnel plans by the Board of Members upon the Director's proposal. Deputy Directors are appointed for a term of five years and may be reappointed;

b) The number of Deputy Directors shall not exceed three persons;

c) Criteria and conditions for appointing Deputy Directors are stipulated in points b, c, d, đ Clause 5, Article 7 of this Decree;

2. Business units have the function of advising and assisting the Board of Members, the Director in managing and operating the Fund.

Article 13. Human Resources Management of the Fund

1. The Fund implements an autonomous system for human resources, deciding on job positions and the number of employees suitable with its functions and tasks assigned and in accordance with regulations of the Ministry of Planning and Investment.

2. Employees have the right to participate in discussions, provide opinions, and make proposals to competent authorities in accordance with labor laws and other relevant laws.

3. The collective of employees in the Fund has the right to supervise the implementation of resolutions of the Employee Assembly; implement internal regulations, rules, and policies of the Fund; implement collective labor agreements; fulfill labor contracts; implement systems and policies for employees; collection and use of funds contributed by employees; results of handling complaints, accusations, and labor disputes; annual results of competitions and rewards for employees.

4. Annually, the Fund is responsible for hosting and coordinating with the Trade Union Executive Committee to organize the Employee Assembly to discuss solutions to implement operational targets approved by the Board of Members; evaluate the implementation of collective labor agreements, internal regulations, and rules of the Fund, as well as other issues related to the rights and legitimate interests of employees.

5. Relationship between the Fund and employees

a) The relationship between the Fund and employees is carried out in accordance with labor laws;

b) The Director prepares plans to submit to the Board of Members for approval on matters related to hiring employees, termination of employment, salaries, insurance benefits as prescribed by law, welfare, rewards, and discipline for employees, as well as the relationship between the Fund and trade union organizations of employees.

Article 14. Activities of Political and Social Organizations

1. The Communist Party of Vietnam organization at the Fund operates in accordance with the Constitution, laws, and regulations of the Communist Party of Vietnam.

2. The Trade Union, Youth Union of Ho Chi Minh Communist Youth, and other social-political organizations of the Fund operate in accordance with the Constitution, laws, and regulations of those organizations.

Chapter III
ACTIVITIES OF LOANING, FINANCIAL SUPPORT, AND STRENGTHENING CAPACITY ASSISTANCE

Section 1
DIRECT LOANS

1. The Fund's loan activities are conducted according to agreements between the Fund and small and medium-sized enterprises, in compliance with this Decree.

2. Small and medium-sized enterprises borrowing from the Fund must ensure that borrowed capital is used for the intended purpose, fully repaying principal and interest as agreed with the Fund.

3. The currency for loans and repayment is the Vietnamese Dong.

Article 16. Conditions for borrowing capital

1. Small and medium-sized enterprises (SMEs) with innovative startups may borrow capital from the Fund if they meet the following conditions:

c) Ensuring a minimum equity participation of at least 20% of the total investment capital to implement the project plan or business operation scheme, and ensuring sufficient funds to carry out the project plan or business operation scheme;

d) Meeting the regulations on collateral for loans as stipulated in this Decree.

Article 17. Interest Rates for Direct Loans

1. The interest rate for direct loans is 80% of the lowest commercial loan interest rate. The lowest commercial loan interest rate is determined based on comparing the interest rates of four state-owned commercial banks with the largest total assets at the time of determining the Fund's loan interest rate.

In special cases, the Minister of Planning and Investment decides the loan interest rate based on the proposal of the Board of Members.

2. Annually or during each period, based on the principle of determining interest rates as stipulated in Clause 1 of this Article, the Board of Members announces the Fund's loan interest rate.

Article 18. Loan Amounts and Terms

1. The loan amount for each project or business operation scheme shall not exceed 80% of the total investment capital of each project or scheme. The total loan amount provided by the Fund to one SME shall not exceed 15% of the Fund's actual registered capital.

2. The loan term shall be determined in accordance with the enterprise's ability to recover capital and repay debt, and the specific conditions of each project or business operation scheme, but shall not exceed seven years.

Article 19. Documents, Procedures, and Formalities for Direct Loans

1. The loan application documents include:

a) The loan application form of the SME;

b) Project and business operation scheme documents and other documents and materials proving that the enterprise meets the loan conditions as stipulated in Article 16 of this Decree.

2. SMEs submit loan application documents at the Fund's headquarters or through postal service.

3. The Fund is responsible for receiving and verifying the completeness of loan application documents; assessing the feasibility of project plans or business operation schemes and other loan conditions as stipulated in this Decree; deciding on the loan and notifying the SME. If the loan is refused, the Fund will notify in writing and specify the reasons for refusal.

4. The Fund is responsible for issuing procedures for assessment and making decisions on direct loans according to the principle of clearly defining the responsibilities and obligations of individuals and organizations involved in the assessment and decision-making process.

5. If necessary, the Board of Members will consider and decide to establish a Loan Review Committee to make loan decisions.

6. The Fund has the right to hire independent consultants or establish a Loan Advisory Group consisting of scientists, managers, and experts in relevant fields to provide loan advice:

Article 20. Direct Loan Agreement

1. The direct loan agreement between the Fund and small and medium-sized enterprises must be documented in writing, ensuring compliance with the provisions of this Decree and including the following basic contents:

a) Information on the legal entity of the Fund and small and medium-sized enterprises, location, and time of signing the agreement;

b) Agreements on the amount of the loan, purpose of using the borrowed capital, loan term, currency of the loan, method of lending, disbursement of the loaned capital, interest rate on the loan, transfer of the loaned capital, recovery of interest and principal of the loan, measures to secure the loan funds and contingency plans, risk management (if applicable), and the effectiveness of the loan agreement;

c) Rights, obligations, and responsibilities of each party during the loan process; methods for resolving disputes and difficulties arising during implementation, and other agreements according to the Fund's management requirements.

2. In addition to the contents stipulated in Clause 1 of this Article, the parties may agree on other contents consistent with the provisions of this Decree and relevant laws.

Article 21. Securing the Loan

1. When borrowing from the Fund, small and medium-sized enterprises must comply with measures to secure the loan. For each project and business plan, the Fund will consider and decide on specific measures to secure the loan in accordance with actual circumstances and legal regulations.

2. Establishing, implementing secured transactions, and handling secured assets shall be carried out in accordance with the law on secured transactions and related regulatory documents.

Section 2
INDIRECT LOAN

1. The Fund selects commercial banks (hereinafter referred to as banks) to sign indirect loan agreements.

4. The bank is responsible for fully repaying the principal and interest of the indirect loan to the Fund within the agreed timeframe.

5. The currency for the loan and repayment is the Vietnamese Dong.

Article 23. Conditions for Borrowing from the Fund's Capital

1. Innovative start-up small and medium-sized enterprises can borrow from the Fund's capital when meeting the following conditions:

a) Meeting the provisions at point a, point b, and point c of Clause 1 of Article 16 of this Decree;

b) Complying with legal regulations regarding securing the loan.

2. Small and medium-sized enterprises participating in industry clusters can borrow from the Fund's capital when meeting the following conditions:

b) Complying with the provisions at point b of Clause 1 of this Article.

3. Small and medium-sized enterprises participating in value chains can borrow from the Fund's capital when meeting the following conditions:

b) Complying with the provisions at point b of Clause 1 of this Article.

Article 24. Term and Amount of Indirect Loan

The term and amount of indirect loan are implemented in accordance with the provisions of Article 18 of this Decree.

Article 25. Interest Rate on Indirect Loan, Fee for Indirect Loan

1. The interest rate on indirect loan is the interest rate charged by the bank to small and medium-sized enterprises for borrowing, equivalent to the interest rate on direct loans as stipulated in Clause 1 of Article 17 of this Decree.

2. The fee for indirect loan is the amount that the Fund must pay to the bank to implement the loan, agreed upon by both parties but not exceeding 50% of the interest earned from the indirect loan for each project or business plan.

Article 26. Documents, Procedures, and Formalities for Indirect Loans

1. The documents a business requests to borrow capital include:

a) The loan application form of the SME;

b) Project documents, production and business operation plans of small and medium-sized enterprises (SMEs), and other documents proving that the enterprise meets the conditions for borrowing capital as stipulated in Article 23 of this Decree.

2. The documents a bank requests to accept indirect loan capital include:

a) The bank's application to accept indirect loan capital;

b) The documents specified in point b, Clause 1, Article 23 of this Decree, and other related documents.

3. SMEs submit their loan request documents at the bank's transaction office or through postal service.

4. The bank is responsible for receiving loan request documents, evaluating them, making loan decisions for SMEs, and submitting indirect loan capital acceptance request documents to the Fund's headquarters or through postal service.

5. The bank is responsible for issuing evaluation procedures and making indirect loan decisions ensuring transparency and openness principles.

6. The Fund is responsible for receiving and assessing loan capital acceptance request documents and deciding to transfer capital to the bank for indirect lending. In case of refusal to transfer capital, the Fund must notify the bank of the reasons for refusal.

7. The Fund is responsible for issuing evaluation procedures and making capital transfer decisions for indirect lending according to the principle of clearly defining the responsibilities and obligations of all parties involved during the indirect lending process.

Article 27. Agreement on Indirect Lending

1. The indirect lending agreement between the Fund and the bank must be documented, comply with the provisions of this Decree, and include the following main contents:

a) Information about the legal entities of the Fund and the bank, location, and time of signing the agreement;

b) Agreements on the amount of the loan, purpose of using borrowed capital, loan term, currency of the loan, interest rate, receipt of borrowed capital, repayment of principal, recovery of interest, restructuring of debt repayment terms, overdue debt conversion, effectiveness of the indirect lending agreement;

c) Rights, obligations, and responsibilities of each party during the implementation of indirect lending; methods for resolving disputes and issues arising during the implementation process, and other agreements according to the management requirements of the Fund.

2. In addition to the contents stipulated in Clause 1 of this Article, the parties may agree on other contents consistent with the provisions of this Decree and relevant laws.

3. The loan agreement between the bank and SMEs must be documented and consistent with the indirect lending agreement between the Fund and the bank as stipulated in Clause 1 and Clause 2 of this Article.

Section 3
CAPITAL SUPPORT

1. The Fund provides partial funding for construction investment projects, purchasing machinery and equipment under the production and business plans of SMEs that meet the conditions stipulated in Clause 1 of Article 29 of this Decree.

2. The currency for capital support is the Vietnamese Dong.

Article 29. Conditions and Level of Capital Support

2. The level of capital support does not exceed one billion Vietnamese Dong for one project, production and business plan but does not exceed 50% of the investment cost for building factories and purchasing machinery and equipment.

Article 30. Documents, Procedures, and Formalities for Requesting Capital Sponsorship

1. The documents for requesting capital sponsorship include:

a) The application for capital sponsorship from small and medium-sized enterprises;

b) Project documents, business operation plans of small and medium-sized enterprises, and relevant documents and materials proving that these enterprises meet the conditions for sponsorship as stipulated in Clause 1, Article 29 of this Decree.

2. Small and medium-sized enterprises submit the sponsorship request documents at the headquarters of the Fund or through postal service.

3. The Fund receives and reviews the completeness of the sponsorship request documents; assesses the feasibility of projects, business operation plans, and the conditions for capital sponsorship as prescribed in this Decree; makes a decision on sponsorship and notifies the small and medium-sized enterprises. In case of refusal to sponsor, the Fund must issue a written notice to the enterprise explaining the reasons for refusal.

4. The Fund is responsible for issuing procedures for review, making sponsorship decisions, and disbursing sponsored capital according to principles ensuring clear definition of responsibilities and obligations of individuals and organizations involved during the review, sponsorship decision-making, and disbursement processes.

5. The Fund establishes a Review Board to examine and make decisions on capital sponsorship. The Board of Members decides the composition of the Review Board.

6. The Fund has the right to hire independent consultants or establish a Financial Sponsorship Advisory Group consisting of scientists, managers, and experts in relevant fields to provide financial sponsorship advice.

Article 31. Financial Sponsorship Agreement

1. The financial sponsorship agreement between the Fund and small and medium-sized enterprises must be documented in writing, ensuring compliance with the provisions of this Decree and including the following basic contents:

a) Information on the legal entity of the Fund and small and medium-sized enterprises, location, and time of signing the agreement;

b) Agreements on the form of sponsorship, amount of sponsorship, purpose of using the sponsored funds, currency of sponsorship, disbursement of the sponsored funds, and the validity period of the sponsorship contract;

c) Rights, obligations, and responsibilities of each party; methods for resolving disputes arising during implementation, and other agreements as required by the Fund's management.

2. In addition to the contents specified in Clause 1 of this Article, the parties may agree on other contents consistent with the provisions of this Decree and related laws.

Article 32. Acceptance of Sponsored Capital Projects

1. Based on the acceptance documents for sponsored capital submitted by small and medium-sized enterprises, the Fund proceeds with the acceptance of sponsored capital.

2. The acceptance documents for sponsored capital include:

a) The acceptance application for sponsored capital from the enterprise;

b) Relevant documents, records, and payment receipts related to investment, construction of factories, purchase of machinery and equipment for project plans and business operations.

3. The Fund receives and thoroughly evaluates the acceptance documents for sponsored capital; assesses and accepts the sponsored capital.

4. The Fund is responsible for issuing procedures for evaluating and accepting sponsored capital, ensuring equality and transparency.

5. Annually, enterprises receiving sponsorship have the responsibility to send reports to the Fund about the operational status of projects and business operation plans that have received sponsorship or the company's financial statements.

Section 4
ENHANCED CAPACITY SUPPORT

Article 33. Activities to Support Enhanced Capacity

1. Based on the operating capital and annual work plan, the Fund organizes seminars, communication, training, consulting, investment promotion, trade promotion, information provision, and database provision to support enhanced capacity for small and medium-sized enterprises, ensuring effective and targeted support.

2. Based on the operating capital and annual work plan, the Fund develops research and development projects and proposals; investment and establishment projects for incubation bases, technical facilities, and shared working spaces to support small and medium-sized enterprises, submitting them to the Prime Minister or the Ministry of Planning and Investment for approval within their authority.

Chapter IV

ACTIVITIES FOR RECEIVING, MANAGING AND USING LOAN CAPITAL, SPONSORSHIP, GRANTS, CONTRIBUTIONS, AND DELEGATED FUNDS

Article 34. Principles for receiving, managing, and using loans, grants, aid, contributions, and entrusted funds

1. Receiving, managing, and using loans, grants, aid, contributions, and entrusted funds from organizations and individuals in the form of money or in-kind.

2. The receipt, management, and use of loans, grants, aid, contributions, and entrusted funds must comply with Vietnamese laws and international treaties to which Vietnam is a party. The acceptance of entrusted funds must ensure compatibility with the Fund's repayment capacity.

3. Loans, grants, aid, contributions, and entrusted funds that harm national interests, security, defense, violate anti-corruption laws, money laundering activities, terrorist financing, and other illegal activities shall not be accepted.

Article 35. Receiving and Managing Loans, Grants, Aid, Contributions, and Entrusted Funds

1. The Fund receives, manages, and uses loans and aid in accordance with the provisions of the law.

2. The Fund directly receives financial support and contributions in the form of money or in-kind from organizations and individuals.

a) The receipt of support and contributions shall be carried out in writing between the Fund and the donor, contributor, in compliance with this Decree and other relevant legal provisions;

b) In-kind support and contributions to the Fund must be converted into monetary value. For valuable assets or those not available in Vietnam, the Fund must engage a legally established valuation organization to appraise the asset. The appraisal date shall not exceed six months from the signing date of the support or contribution agreement;

c) The donor or contributor shall be responsible for the legality of the support or contribution.

3. The Fund directly receives entrusted funds from organizations and individuals.

a) The Fund only accepts entrustment to carry out support activities for small and medium-sized enterprises within its duties and powers as stipulated in this Decree;

b) The acceptance of entrustment shall be carried out in writing, in compliance with this Decree and other relevant legal provisions;

c) The Fund ensures physical facilities and staff to implement the entrusted content;

d) The Fund is entitled to receive trust fees and must use the entrusted funds in accordance with the agreed purpose and content;

e) The entrusting party must transfer the entrusted funds in accordance with the agreed schedule, bear all risks, and enjoy benefits from the entrusted activities.

Article 36. Using Loans, Grants, Aid, Contributions, and Entrusted Funds

1. Based on Vietnamese laws, international treaties, and agreements signed with organizations and individuals, the Fund uses loans, grants, aid, contributions, and entrusted funds, as well as profits generated from these sources (if any), to carry out the following activities:

a) Supplementing operational capital for the Fund;

b) Providing loans and financial support to small and medium-sized enterprises according to the entrusting party’s or donor’s regulations. If there are no such regulations, the Fund shall implement in accordance with Sections 1, 2, and 3 of Chapter III of this Decree;

c) Implementing activities to enhance the capabilities of small and medium-sized enterprises as specified in Section 4 of Chapter III of this Decree.

2. The Fund may cooperate with organizations and individuals to carry out the activities stipulated in this Article.

Chapter V

CLASSIFICATION OF DEBT, PROVISION FOR RISK RESERVES AND RISK MANAGEMENT

Section 1
CLASSIFICATION OF DEBT, PROVISION FOR RISK RESERVES

Article 37. Classification of Debts

1. The Fund shall classify debts for all outstanding direct loans in accordance with the State Bank of Vietnam's regulations on debt classification for credit institutions.

2. The Bank shall be responsible for classifying debts for outstanding indirect loans in accordance with the State Bank of Vietnam's regulations on debt classification for credit institutions.

Article 38. Provision for Loan Risk

a) A general risk provision at 0.75% per year based on the total outstanding balance of direct loans at the time of establishment;

b) Specific risk provisions: Based on the results of debt classification, the Fund shall establish specific risk provisions for outstanding direct loans. The level of each group of provisions shall be in accordance with the State Bank of Vietnam's regulations for credit institutions.

2. The Bank shall establish provisions for risk associated with outstanding indirect loans in accordance with the State Bank of Vietnam's regulations on establishing risk provisions for credit institutions.

Section 2

RISK MANAGEMENT

Article 39. Principles for Handling Loan Risks

1. The handling of risks by the Fund must be carried out strictly in accordance with the provisions of the law.

2. The consideration and handling of risks must be based on the causes leading to the risks, the extent of the risks, business conditions, financial status, and the ability of enterprises to repay debts, ensuring complete documentation, timely implementation, and compliance with the procedures stipulated in this Decree.

3. The handling of risks should aim to minimize losses for the state and ensure accountability of the Fund, borrowers, and related organizations in recovering loan repayments.

4. The selection of risk management measures should follow a priority order, with those that do not result in loss of state capital or cause minimal loss being considered first.

5. A single debt may apply one or more risk management measures prescribed in this Decree simultaneously.

6. The Fund's risk acceptance ratio shall not exceed 5% at the end of the fiscal year.

Article 40. Measures for Handling Risks

1. Measures for handling risks associated with the Fund's direct loans include:

a) Adjusting the repayment period/payment amount;

b) Extending the loan term;

c) Writing off bad debts;

d) Waiving interest arrears;

d) Waiving principal arrears;

e) Selling debts;

g) Disposing of collateral assets;

h) Other risk management measures as prescribed by law.

2. Measures for handling risks associated with indirect loans shall be implemented in accordance with the State Bank of Vietnam's regulations on risk management measures in lending activities.

Article 41. Authority for Handling Risks

1. Authority for handling risks associated with direct loans

a) The Prime Minister shall consider and decide on risk management measures as stipulated in points d, e, and g of Clause 1, Article 40 of this Decree when risks reduce the Fund's charter capital;

b) The Minister of Planning and Investment shall consider and decide on risk management measures as stipulated in points c, d, and f of Clause 1, Article 40 of this Decree when risks do not reduce the Fund's charter capital;

c) The Fund shall consider and decide on risk management measures as stipulated in points a, b, e, g, and h of Clause 1, Article 40 of this Decree when risks do not reduce the Fund's charter capital;

d) In cases where the risk acceptance ratio exceeds 5% at the end of the fiscal year, the Ministry of Planning and Investment shall take the lead in coordinating with the Ministry of Finance to report to the Prime Minister for consideration and decision.

2. Authority for handling risks associated with indirect loans

The authority to decide on risk management measures for indirect loans shall be carried out in accordance with the State Bank of Vietnam's regulations on risk management authority in the operations of credit institutions and relevant laws.

Article 42. Using Risk Reserve to Handle Loan Risks

1. The Fund uses the risk reserve to handle loan risks directly

a) In cases where the amount of the reserve is insufficient to address all loan risks of debts that need to be handled, the Fund will draw from the financial reserve fund as stipulated in Article 51 of this Decree. After using up the financial reserve fund, if there is still a shortage, the Fund will directly record the shortfall in the operating expenses;

b) In cases where the remaining amount of the reserve exceeds the required reserve amount, the Fund will return the excess portion;

2. Banks use the risk reserve to handle risks associated with indirect loan balances according to the regulations of the State Bank of Vietnam on the use of reserves to manage risks in the operations of credit organizations.

Chapter VI.
FINANCIAL MANAGEMENT

Article 43. Operating Capital of the Fund

1. Shareholder equity includes:

a) The minimum charter capital of the Fund is 2,000 billion VND provided by the state budget for investment development. The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance to submit to the Prime Minister for decision on the level of the Fund's charter capital during each period;

h) Additional capital from the Fund's operational results;

c) Capital formed from grants, aid, non-repayable contributions from organizations and individuals;

d) Other capital owned by the Fund.

2. Capital formed from receiving loans, contributions, entrusted funds that must be repaid from organizations and individuals.

3. Other capital as prescribed by law.

Article 44. Principles for Managing and Using Capital, Assets, Revenue, Expenses, and Distributing Operational Results of the Fund

1. The Fund must manage and use capital in accordance with the principles of purposefulness, effectiveness, and ensuring capital safety.

2. The Fund applies legal provisions regarding investment construction, purchase, sale, management, and use of fixed assets, revenue management, other income, expenses, and financial result distribution for wholly state-owned limited liability companies.

3. Fund revenues and expenses must be strictly managed to ensure accuracy, honesty, and legality; they must have complete documentation and records as prescribed by law and fully reflected in accounting books under applicable accounting regulations and related legal provisions.

Article 45. Purpose of Capital Usage

1. Using the operating capital as specified in Article 43 of this Decree to provide loans to small and medium-sized enterprises (SMEs) engaged in innovative startups and SMEs participating in industry clusters and value chains.

2. Using the capital as specified in points b, c, and d of Clause 1, Article 43 of this Decree to finance SMEs engaged in innovative startups and SMEs participating in industry clusters and value chains.

3. Using the capital as specified in points b, c, and d of Clause 1 and Clause 3, Article 43 of this Decree to support enhancing the capacity of SMEs.

4. Using the capital as specified in point b of Clause 1, Article 43 of this Decree to implement investment development projects of the Fund; to handle risks, compensate for losses and damages to property and uncollectible receivables occurring in the Fund's operations.

5. Using the operating capital as specified in Article 43 of this Decree to cover management and operational costs of the Fund; to invest in construction, procurement of fixed assets, tools, and equipment as stipulated in Article 48 of this Decree to serve the Fund's operations.

Article 46. Management of Assets

1. Procurement of Fixed Assets for the Fund

a) The authority to decide on investment, procurement of fixed assets, standards, quotas, procedures, and processes for investment, procurement, and repair of fixed assets shall be carried out according to regulations applicable to limited liability companies wholly owned by the State, ensuring transparency, thrift, and efficiency;

b) The procurement of fixed assets for the operation of the Fund shall be conducted based on the principle that the remaining value of total fixed assets does not exceed 7% of the actual paid-in capital of the Fund at the time of procurement.

2. Principles for Depreciation, Management, Usage, and Time of Depreciation of Fixed Assets of the Fund shall be implemented according to legal provisions on depreciation of fixed assets applicable to limited liability companies wholly owned by the State.

3. Leasing of Fixed Assets

a) The Fund has the right to lease fixed assets based on the principle of effectiveness and in accordance with legal regulations applicable to limited liability companies wholly owned by the State;

b) The authority to decide on leasing fixed assets shall be carried out according to regulations applicable to limited liability companies wholly owned by the State.

4. Liquidation, Transfer, and Sale of Fixed Assets

a) The Fund has the right to liquidate, transfer, or sell fixed assets that are damaged, technologically obsolete, unnecessary, unusable, or inefficiently used to recover capital based on the principles of transparency, safety of capital, and compliance with regulations;

b) The authority to decide on liquidation, transfer, and sale of fixed assets; procedures and processes for liquidation and transfer of fixed assets shall be carried out according to regulations applicable to limited liability companies wholly owned by the State.

5. Inventory and Revaluation of Fixed Assets

a) Inventory of Assets

The Fund must organize regular or extraordinary inventory to determine the quantity of fixed assets in the following cases: closing the accounting books to prepare annual financial reports; after natural disasters, epidemics, or other reasons causing asset fluctuations of the Fund; as prescribed by competent state agencies.

For excess or missing assets, the cause must be clearly identified, the responsibility of related organizations and individuals determined, and material compensation amounts set according to legal regulations.

b) Revaluation of Assets

The Fund must conduct revaluation of assets according to legal regulations applicable to limited liability companies wholly owned by the State. Any differences in value due to revaluation of assets shall be handled according to the Fund's specific regulations.

6. Handling Losses on Assets

When suffering asset losses, the Fund must determine the value of the lost assets, the cause, responsibility, and handle them as follows:

a) Clearly identify objective causes (natural disasters, fires, unexpected accidents) and subjective causes;

b) If caused by subjective reasons, the organization or individual responsible for the loss must compensate and be dealt with according to legal regulations. The Fund will specifically stipulate compensation matters and decide on appropriate compensation levels in accordance with legal regulations; bear responsibility for its decisions;

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

d) The value of the lost assets after compensating with the money from the organization or individual responsible for the loss, insurance organizations, and reserve funds, if insufficient, shall be recorded as expenses in the Fund's current period;

đ) In special cases where severe damage is caused by natural disasters or force majeure, and the Fund cannot self-recover, the Director shall report to the Board of Members for a loss handling plan to be submitted to the Minister of Planning and Investment for decision.

7. The Fund is responsible for promulgating procurement and management regulations for fixed assets according to this Decree and relevant legal provisions.

Article 47. Revenue

The revenue of the Fund includes receivables arising during the period, including:

1. Revenue from business activities:

a) Revenue from lending activities including: interest income from direct lending, indirect lending, and other revenues from lending activities;

b) Revenue from managing loan sources, sponsorships, grants, contributions, and entrusted funds (if any);

c) Revenue from supporting small and medium-sized enterprises to enhance their capacity;

d) Other revenues from business activities.

2. Interest income from deposits.

3. Revenue from liquidation and sale of assets; insurance compensation received (the remaining amount after offsetting losses occurred); penalties, compensation for breach of economic contracts; revenue from recovered debts previously written off as risk provisions; revenue from exchange rate differences (if any).

4. Other revenues as prescribed by law.

Article 48. Expenses of the Fund

The expenses of the Fund include necessary costs incurred during the period for the Fund's operations, including:

1. Business operation costs:

a) Operating expenses for lending and capital sponsorship including: fees for indirect lending, capital sponsorship expenses; expense for reviewing applications; fees for asset valuation and appraisal; expense for monitoring and supervising, acceptance of sponsored capital and other related expenses to lending and capital sponsorship activities;

b) Expenses for implementing support activities to enhance the capacity of small and medium-sized enterprises;

c) Expenses for receiving and managing loan sources, grants, sponsorships, contributions, and entrusted funds from organizations and individuals;

d) Provisions for risk reserves and other provisions (if any).

d) Expenses for debt management operations;

e) Insurance expenses, idle capital deposit activity expenses, exchange rate difference expenses;

g) Other operating expenses.

2. Administrative expenses

b) Management activity expenses including: travel expenses; training expenses; research and application of science and technology expenses; publicity, advertising, marketing expenses; information technology expenses; expenses for party and mass organization activities; office supplies, document, book expenses; electricity, water, telephone, postal and telecommunications, office cleaning expenses; conference, seminar, training, propaganda, printing material, reception expenses; purchase of goods and services expenses; transaction, external relations, forum participation, network expenses; inspection, supervision, audit expenses; domestic and foreign expert and consultant hiring expenses; transportation expenses and other management activity expenses;

c) Investment construction, procurement, maintenance, repair expenses for assets; depreciation expenses for fixed assets; rental expenses for assets under lease contracts; liquidation and sale expenses for assets; asset insurance expenses; procurement expenses for tools and equipment; other expenses for asset management and utilization.

3. Tax payment expenses, fees, and charges as prescribed by law.

4. Expenses for revenues that have been recorded but not actually collected and not reduced from revenue; expenses for debts payable, which were determined to be lost and recorded as income but later identified as creditors; expenses for recovering written-off debts, bad debt recovery costs; payment of fines, compensation for breach of economic contracts within the responsibility of the Fund; expenses for handling property losses according to the law; expenses for social welfare and charity work; litigation fees and execution fees.

5. Other expense items.

6. Expense standards prescribed in Clause 1, Clause 2, Clause 3, Clause 4, and Clause 5 of this Article shall be implemented in accordance with the laws applicable to a limited liability company wholly owned by the State. In cases where there are no legal provisions, the Fund shall base on its financial capacity to establish standards and decide on expenditures to ensure appropriateness and effectiveness.

The Fund shall manage labor, wages, remuneration, and bonuses for employees and Fund managers according to regulations applicable to state-owned limited liability companies with 100% state capital, consistent with the nature, model, and activities of the Fund as stipulated in this Decree and guidelines issued by the Ministry of Labor, War Invalids and Social Affairs.

Article 50. Distribution of Financial Results

1. The annual financial result of the Fund is the difference between total income and total expenses incurred during the fiscal year.

2. After paying fines for violations of laws, covering losses from previous years, and paying corporate income tax as prescribed by law, if total income exceeds total expenses, the surplus shall be distributed as follows:

a) Up to 25% into the development investment fund;

b) Up to 20% into the financial reserve fund, with the maximum level of this fund not exceeding 25% of the actual paid-in charter capital of the Fund;

d) The remaining amount after setting aside the above funds (if any) shall be added to the development investment fund;

3. Establishment of reward and welfare funds:

a) For Class A Funds, three months' salary of employees shall be allocated to the reward and welfare funds;

b) For Class B Funds, one and a half months' salary of employees shall be allocated to the reward and welfare funds;

c) For Class C Funds, one month's salary of employees shall be allocated to the reward and welfare funds.

a) For Class A Funds, one and a half months' salary of managers shall be allocated;

b) For Class B Funds, one month's salary of managers shall be allocated;

c) For Class C Funds, no manager's reward fund shall be established.

6. When the financial results for the year show a loss, the Fund may carry forward the loss to the next year, with the carry-forward period not exceeding five consecutive years starting from the year following the year in which the loss occurred. If the loss has not been fully carried forward within five years, the Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance to report to the Prime Minister for consideration and decision.

Article 51. Management and Use of Funds

1. The use of funds must comply with regulations, purposes, and appropriate recipients.

a) Establish and promulgate management and usage regulations for funds in accordance with the law, ensuring democracy, transparency, and participation of the Fund's Trade Union Executive Committee, and publicizing within the Fund before implementation;

b) Within the fiscal year, the Fund may proactively set aside funds based on its operational results to have resources for using the funds according to the prescribed purposes.

c) The Board of Members sets the standards for rewarding employees and welfare expenditures.

2. The development investment fund shall be used for:

b) Providing capital to small and medium-sized enterprises engaged in innovative startups, those participating in industry clusters and value chains; implementing activities to enhance the capabilities of small and medium-sized enterprises;

c) Supplementing the Fund's charter capital.

3. The financial reserve fund shall be used in the following priority order:

a) To cover losses and damages to assets and uncollectible debts arising from operations after being compensated by the organization or individual causing the damage, and insurance organizations, and using reserves accounted for as expenses in the period;

b) To handle loan risks after exhausting the loan risk reserves established from expenses as decided by the Board of Members;

c) At the end of the year, if the financial reserve fund is not fully utilized, the balance shall be carried over to the next year. Any recovered amounts from previously handled risks shall be recorded as other income of the Fund.

Article 52. Accounting and Auditing System

2. The fiscal year of the Fund starts on January 1st and ends on December 31st each year.

3. The Fund organizes its accounting staff in accordance with the law on accounting and internal regulations of the Fund.

Article 53. Financial Reporting

1. The Fund must prepare quarterly and annual financial reports. The annual financial report of the Fund must be audited by an independent auditing organization established and operating in accordance with the law.

2. The annual report must be submitted no later than ninety days from the end of the fiscal year. The audit report on the annual financial statements of the Fund, conducted by an independent auditing organization, must be submitted no later than one hundred twenty days from the end of the fiscal year.

4. The Fund shall publicly disclose its finances in accordance with the provisions of the law applicable to state-owned limited liability companies holding one hundred percent of the charter capital.

Chapter VII
SUPERVISION AND EVALUATION OF ACTIVITIES

Article 54. Supervision of the Fund's Activities

1. The Fund is responsible for establishing and operating an internal supervision system that ensures effective operation, consistent with its functions, tasks, and authority as stipulated in this Decree.

The internal supervision system of the Fund includes mechanisms, policies, regulations, procedures, organizational structure, and personnel of the Fund, which are established in compliance with the provisions of this Decree and implemented to control, prevent, detect, and promptly address risks in the Fund's operations.

2. The Fund shall develop and issue a five-year and annual operational plan according to the model prescribed in Appendix I and Appendix II attached to this Decree, to be sent to the Ministry of Planning and Investment for monitoring and management.

3. Annually, the Fund must report to the Ministry of Planning and Investment on the results of its activities, including the results of support activities, the effectiveness of capital and asset management, risk assessment, limitations in the Fund's operations, and recommendations and proposals for appropriate solutions.

4. The Ministry of Planning and Investment shall supervise the Fund's activities.

Article 55. Evaluation of Operational Results and Classification of the Fund

1. The Ministry of Planning and Investment shall conduct an annual evaluation of the operational results and classification of the Fund.

2. Annual performance evaluation indicators for the Fund include:

a) Indicator 1: Loan growth, financing turnover;

b) Indicator 2: Non-performing debt ratio;

c) Indicator 3: Total income minus total expenses;

d) Indicator 4: Compliance with laws on investment, management, and use of capital and assets of the Fund, obligations towards the state budget, and compliance with regulations on annual financial reporting and annual operational reporting of the Fund.

3. Objective factors to be considered and excluded when evaluating the Fund's operations:

a) Natural disasters, fires, epidemics, economic-political fluctuations, wars, and other force majeure causes;

b) Changes in related policies affecting the support for small and medium-sized enterprises and the operational results of the Fund.

Article 56. Disclosure of Information

1. The Fund must periodically disclose the following information:

a) Basic information about the Fund;

b) General objectives, specific goals, and indicators of the annual operational plan;

c) Annual financial reports and summaries thereof, audited;

d) Reports evaluating the implementation of the annual operational plan;

d) Reports on the current governance and organizational structure of the Fund.

2. The Fund must publish such information on its website and in publications (if any), and publicly post at its headquarters within thirty-six hours of the occurrence of any of the following events:

a) The Fund's bank account being frozen or allowed to resume operations after being frozen;

b) Suspension of part or all of the Fund's operations;

d) Disciplinary decisions, criminal charges, court judgments against Fund management personnel;

đ) Conclusions of supervisory agencies or managing agencies regarding violations of the law by the Fund;

e) Decisions to change the independent auditor, or refusal to audit the financial statements.

3. The Fund's legal representative or authorized person shall be responsible for disclosing information and ensuring its completeness, accuracy, truthfulness, and timeliness.

Chapter VIII
IMPLEMENTATION

1. Take the lead and coordinate with the Ministry of Finance to report to the Prime Minister on the registered capital; decide on increasing or decreasing the registered capital of the Fund.

2. Guide the planning, appointment, dismissal, transfer, and policy for managers of the Fund.

3. Guide the handling of risks, assessment of operational results, and classification of the Fund.

4. Guide the acceptance of sponsorship, contributions, and entrusted management of the Fund.

7. Decide or take the lead and coordinate with the Ministry of Finance to report to the Prime Minister to decide on measures to handle risks of the Fund according to the authority prescribed in this Decree.

9. Implement the ranking of the Fund in accordance with the provisions of the law.

11. Perform other rights and obligations of the state representative agency as stipulated in this Decree and relevant laws.

1. Guide accounting systems for the Fund.

2. Provide the registered capital that has been approved by the Prime Minister for the Fund.

Guide the ranking of the Fund and the management of labor, wages, remuneration, and bonuses for employees and managers of the Fund.

Article 60. Responsibilities of small and medium-sized enterprises receiving support from the Fund

1. Use loans and sponsorships for their intended purposes in accordance with agreements signed between the Fund and related parties.

2. Comply with legal regulations and fulfill all commitments and obligations agreed upon in agreements signed between the Fund and related parties.

3. Timely provide complete, accurate, and truthful information and documents related to borrowing and using sponsored funds, and bear legal responsibility for the accuracy and legality of the provided information and documents.

Article 61. Transitional Provisions

1. Projects and business production plans of small and medium-sized enterprises that have been entrusted by the Fund to commercial banks for lending before this Decree takes effect shall continue to be implemented according to the agreements signed under Decision No. 601/QĐ-TTg dated April 17, 2013 of the Prime Minister on the establishment of the Small and Medium-Sized Enterprise Development Fund until the end of the entrusted lending period.

2. The Fund continues to apply the current accounting system for local development investment funds until guidelines are issued by the Ministry of Finance.

3. The Fund continues to implement wage, remuneration, and bonus policies for managers and employees according to Decree No. 52/2016/NĐ-CP dated June 13, 2016 of the Government on wages, remuneration, and bonuses for managers of limited liability companies wholly owned by the State, Decree No. 51/2016/NĐ-CP dated June 13, 2016 of the Government on labor management, wages, and bonuses for employees working in limited liability companies wholly owned by the State, and Circular No. 38/2016/TT-BLDTBXH dated October 25, 2016 of the Ministry of Labor, Invalids, and Social Affairs on guiding labor management, wages, and remuneration for the Small and Medium-Sized Enterprise Development Fund until guidelines are issued by the Ministry of Labor, Invalids, and Social Affairs.

Article 62. Effectiveness and Responsibility for Implementation

1. This Decree shall take effect from July 1, 2019.

2. The Ministers of the Ministries, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of People's Committees of provinces and centrally-run cities, Chairpersons of the Board of Directors, members of the Board of Directors, and the General Director of the Small and Medium Enterprise Development Fund, organizations and individuals are responsible for implementing this Decree.

Appendix I
Five-Year Work Plan of
Small and Medium Enterprise Development Fund

..., date..., month..., year...

Number: …/

FIVE-YEAR WORK PLAN
OF THE SMALL AND MEDIUM ENTERPRISE DEVELOPMENT FUND

I. OBJECTIVES AND TASKS OF THE PLAN
II. ACTIVITY AND FINANCIAL INDICATORS:

1. Results of activities in year ...

1. Financial activity objectives for phase ...

1. IMPLEMENTATION STRATEGIES FOR THE PLAN

2. ORGANIZATION OF IMPLEMENTATION, SUPERVISION, AND EVALUATION OF RESULTS

3. OTHER CONTENTS

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness

Seal Registration Certificate

WORK PLAN FOR YEAR ... OF

DEVELOPMENT FUND FOR SMALL AND MEDIUM ENTERPRISES

(Pursuant to Decree No. 2019/NĐ-CP dated 01 month 01 year 2019 of the Government)

< —

Ministry OF PLANNING AND INVESTMENT
DEVELOPMENT FUND
SMALL AND MEDIUM ENTERPRISES

Number: /

Date Month Year

WORK PLAN FOR YEAR ...

OF THE DEVELOPMENT FUND FOR SMALL AND MEDIUM ENTERPRISES

I. OVERALL ASSESSMENT

1. Overview of the Fund's activities in the implementation year

2. Advantages

3. Difficulties and existing issues

4. Recommendations and solutions

II. RESULTS OF ACTIVITIES IN THE IMPLEMENTATION YEAR

1. Support activities for small and medium enterprises

   1. Lending

   2. Sponsorship

2. Other activities of the Fund

3. Financial activity results in the implementation year

III. ACTIVITY AND FINANCIAL PLAN FOR THE PLANNED YEAR

IV. IMPLEMENTATION STRATEGIES FOR THE PLAN

1. ORGANIZATION OF IMPLEMENTATION, SUPERVISION, AND EVALUATION OF RESULTS

2. OTHER CONTENTS