Decree No. 43/1999/ND-CP on State Investment Development Credit.

DECREE OF THE GOVERNMENT

Regarding state investment development credit

________________ 

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

At the proposal of the Minister and Head of the Government Office,

 

DECREE:

PART I

GENERAL PROVISIONS

Article 1.The purpose of state investment development credit is to support investment projects for economic components in certain industries, sectors, and major national economic programs, as well as difficult regions that require encouragement for investment.

The Government establishes a Development Support Fund to implement the state's investment support policy.

Article 2.Scope of application

1.This Decree stipulates the forms of state investment development credit as follows:

a)Investment loans;

b)Post-investment interest rate support;

c)Investment credit guarantee.

2.The mobilization of domestic and foreign capital for medium-term and long-term loans by credit organizations shall be carried out in accordance with the Law on Credit Institutions.

Article 3.Principles of State Investment Development Credit

1.Support shall only be provided for investment projects that the state encourages, which are economically and socially effective and ensure repayment of the loan.

2.A project may simultaneously receive support in the form of investment loans and investment credit guarantees.

3.Loans for investment must be implemented in accordance with the project's investment objectives and schedule.

4.An investment project borrowing state development credit must have its financial plan, debt repayment plan, and loan approval confirmed by the Development Support Fund before making an investment decision.

Article 4.In this Decree, the following terms are understood as follows:

1.Total investment capital includes all investment and construction costs (including initial production capital) and is the maximum cost limit approved for the project.

2.Loan term refers to the period from receiving the first loan to fully repaying the loan according to the credit agreement.

3.Grace period refers to the time during which principal repayment is not required, from the start of construction or equipment purchase until completion and commencement of production or business operations.

4.Repayment period refers to the time from the end of the grace period until full repayment of the loan according to the credit agreement.

5.Repayment period refers to the specified time within the repayment term for debt repayment.

6.Credit agreement is an economic contract signed in writing between the Development Support Fund or a commissioned credit organization and the project investor regarding state investment development credit.

7.Investment credit guarantee is the Development Support Fund's commitment to a lending institution regarding the borrower's full and timely debt repayment. In case the borrower cannot repay the debt or repay insufficiently when due, the Development Support Fund will assume responsibility for repaying the debt on behalf of the borrower.

8.Guarantee agreement is an economic contract signed in writing between the Development Support Fund and the guaranteed party regarding investment credit guarantee.

9.Post-investment interest rate support is the state's provision through the Development Support Fund of partial interest rate support to the project investor who borrows funds from credit institutions for post-completion project investment.

10.Interest rate support agreement is an economic contract signed in writing between the Development Support Fund and the project investor who borrows funds from credit institutions for post-completion project investment regarding post-investment interest rate support.

11.Loan organization is the Development Support Fund or a credit organization commissioned by the Development Support Fund to provide loans.

Article 5.An investment development credit plan is part of the state's investment development plan, aimed at implementing strategic goals for economic and social development according to industry, sector, and region structures; it fully reflects the indicators of state investment development credit sources and total amounts, categorized by forms such as investment loans, post-investment interest rate support, and investment credit guarantee.

Article 6.Sources of State Investment Development Credit:

1.Capital stock of the Development Support Fund.

2.National budget capital allocated annually.

3.Annual debt recovery capital.

4.Capital from government bond issuance.

5.Capital from government foreign loans and aid used for relending.

6.Capital raised by the Development Support Fund:

a)Loans from Funds: Foreign Debt Repayment Reserve, Postal Savings, Social Insurance;

b)Other capital mobilization as prescribed by law.

7.Other sources as prescribed by law.

Article 7.State investment development credit sources are used to meet the following needs:

1.Provision of investment loans;

2.Post-investment interest rate support;

3.Execution of investment credit guarantee obligations;

4.Repayment of loan capital.

 

Chapter II

FORMS OF INVESTMENT SUPPORT

PART I. INVESTMENT LOANS

Article 8The borrowing targets are investment projects for development with the ability to directly recover capital (including projects for establishing new enterprises and loans for upgrading production equipment) of various economic sectors, including:

1.Investment projects in difficult areas as currently defined by the Government's regulations on implementing the Law on Encouraging Domestic Investment (amended) in the following industries:

a)Electric power production; mineral extraction (excluding oil and gas, mineral water, gold, precious stones); basic chemicals; fertilizers; microbial insecticides;

b)Manufacturing machine tools and motive power machines for agriculture;

c)Construction of processing facilities: agricultural products, forestry products, aquatic products, salt-making facilities;

d)Production of export goods, especially projects that employ many workers;

đ)Concentrated planting of raw material forests; long-term industrial crops and fruit trees;

e)Infrastructure related to transportation, water supply, housing with the ability to directly recover capital.

2.Farming and breeding projects for aquatic and marine products, dairy cattle breeding.

3.Projects implementing the Government's policy on socializing healthcare, education, culture, sports.

4.Projects using official development assistance (ODA) funds for relending.

5.Other investment programs and projects as decided by the Prime Minister.

Article 9. Borrowing conditions

1.For projects:

a)Belonging to the target group specified in Article 8 of this Decree;

b)Have completed investment procedures as prescribed by the State;

2.For investors:

a)The investor is an organization or individual with full capacity for civil acts;

b)For projects expanding production or updating technological equipment, the investor must have clear financial status, ensuring payment capability and expenses;

c)Have a business plan with profit;

d)For assets formed by borrowed capital that are subject to mandatory insurance, the investor must commit to purchasing asset insurance throughout the loan period at a legally operating insurance company in Vietnam;

e)Comply with the provisions on securing loan money in Article 15 of this Decree.

Article 10.The amount of loan capital for each project shall be implemented according to the provisions of the Law on Encouraging Domestic Investment (amended).

Article 11Loan term

The loan term is determined based on the ability to recover capital in accordance with the characteristics of production and business operations of each project and the borrower's debt repayment capability, but not exceeding 10 years. In special cases where the loan exceeds 10 years, it will be decided by the Management Board of the Development Support Fund.

Article 12Interest rate on loans

1.The interest rate on loans is 9% per annum. When the basic interest rate of the State Bank of Vietnam increases or decreases by 10%, the Prime Minister decides to adjust the loan interest rate.

2.For a single project, the loan interest rate is determined at the time of signing the credit contract and remains unchanged throughout the loan period.

3.The overdue interest rate equals 130% of the interest rate within the loan period recorded in the credit contract.

4.Interest arising during the grace period is handled as follows:

a)For projects to establish new enterprises, the investor does not need to repay during the grace period, but instead pays evenly over the repayment periods;

b)For projects expanding production or updating technological equipment, the investor must use legitimate sources of capital to pay interest during the grace period.

Article 13Documents and appraisal procedures

1.Before making an investment decision, the investor must submit the following documents to the Development Support Fund:

a)Feasibility study report or investment report consistent with relevant legal provisions concerning the project;

b)Business and repayment plan for borrowed capital;

c)For projects expanding production or updating technological equipment, the investor must also submit the enterprise's financial reports for two consecutive years prior to the investment;

All above documents are original copies.

2.Within 30 working days from the date of receiving all appraisal documents as stipulated in Clause 1 of this Article, the Development Support Fund must respond in writing whether to approve the loan or not.

Article 14Documents and loan procedures

1.Loan documents include:

a)Loan application form;

b)Feasibility study report or investment report approved according to legal provisions;

c)Investment decision or business registration certificate;

d)Approval letter for the loan from the Development Support Fund;

đ)Total budget estimate or itemized budget estimate.

All above documents are original copies; however, documents mentioned in points (c), (d), (đ) may be certified copies from competent state agencies.

2.Within 20 working days from the date of receiving all loan documents as stipulated in Clause 1 of this Article, the Development Support Fund must review and notify the investor in writing:

a)If the Development Support Fund lends directly, the Fund will notify the investor to sign a credit contract with the Fund;

b)If the Development Support Fund entrusts a credit institution to lend, the Fund will notify the investor to sign a credit contract with the entrusted credit institution. In this case, the Development Support Fund will sign an entrustment contract with the credit institution (specifying the content of entrustment, rights and responsibilities of both parties) and transfer all loan documents to the entrusted credit institution; the entrusted party does not need to re-evaluate the financial plan and repayment plan of the project;

c)The credit contract is signed once for the entire project, divided annually according to the investment progress, and must clearly record the following contents: purpose of using borrowed capital, method and schedule of disbursement, loan amount, interest rate, loan term, repayment method and term, security for the loan and measures to handle secured assets; rights, obligations of the parties and other commitments agreed upon by the parties in accordance with the law.

3.Based on the credit contract, construction tender contract, consulting contract, supply contract for materials and equipment, budget estimate, and valid payment vouchers, the lending organization disburses funds for settlement of completed basic construction volume. Each time withdrawing borrowed capital, the investor must sign a promissory note with the lending organization.

Article 15On securing loan money

1. For state-owned enterprises acting as project sponsors, when borrowing from thestate's investment credit development fund, the sponsor may use assets formedwith borrowed funds to secure the loan. During the period before fully repayingthe debt, the sponsor shall not transfer, sell, or mortgage or pledge such assetsfor borrowing elsewhere.

2. For project sponsors that are not state-owned enterprises, when borrowing fromthe state's investment credit development fund, in addition to using assetsformed with borrowed funds to secure the loan, they must also provide collateralassets valued at least 50% of the loan amount. Special cases are decided by thePrime Minister. During the period before fully repaying the debt, the sponsorshall not give, gift, transfer, sell, or mortgage or pledge these assets forborrowing elsewhere.

3. When the sponsor cannot repay the debt or is dissolved or declared bankrupt, thelender organization shall handle the assets formed with borrowed funds ascollateral assets according to the provisions of the law to recover the debt.

Article 16.Settlement of Investment Capital

1. Upon completion and commencement of operation of the project, the projectsponsor is responsible for preparing a final settlement report on the investmentcapital for basic construction. The content of the final settlement report, theprocedure for preparation, review, and approval (for projects sponsored bystate-owned enterprises) shall be carried out in accordance with the provisionsof the law.

2. The lending organization is responsible for inspecting and confirming the totalamount of capital lent, the outstanding debt, and accrued interest up to thetime of project completion and commencement of use, and reviewing andevaluating the management and use of borrowed capital to allow the competentstate authority to approve the final settlement report.

Article 17.Debt Repayment

1. The project sponsor is responsible for repaying the borrowed capital to thelending organization according to the signed credit agreement. The sponsor maybeuses the following sources to repay the debt:

a) Depreciation or revenue from fees for using assets formed with borrowed funds.

b) Post-tax profits and other lawful sources of capital of the sponsor.

2. At the maturity date for repayment, if the debt cannot be repaid and noextension is granted, the lending organization will transfer the overdue debt tooverdue status and the sponsor must bear the overdue interest rate.

Article 18.Adjustment of Debt Repayment Periods and Extension of Debt

In case of objective reasons, if the sponsor cannot repay the debt according tothe terms stipulated in the credit agreement, there shall be a written requestaccompanied by the opinion of the investment decision-making authority sentto the lending organization for consideration of adjusting the debt repaymentperiods, extending the debt, and adjusting the debt repayment periods inaccordance with the authority prescribed in Article 20 of this Decree. The maximum extension period shall be one-third of the repayment period specifiedin the credit agreement.

Article 19.Termination of Credit Agreement

1. When all debts have been repaid;

2. According to the decision of the competent state authority.

Article 20. Rights and Obligations of Lending Organizations

1.Rights and obligations of the Development Support Fund:

a) Requesting the project sponsor to provide documentation proving the feasibilityof the investment project and their financial capacity before deciding to lend;

b) Reviewing and being responsible for the review of the financial plan and debtrepayment plan of the project. If it is deemed ineffective and unable to repaythe loan, the Fund shall issue a refusal letter to the sponsor and simultaneouslysubmit a report explaining its opinion to the investment decision-makingauthority;

c) Inspecting and supervising the borrowing process, use of borrowed capital, anddebt repayment by the sponsor;

d) Terminating the loan and recovering the debt ahead of schedule upon discoveringthat the sponsor has provided false information or violated the creditagreement;

đ) Initiating legal action against the sponsor for violating the credit agreement oragainst the guarantor in accordance with the law;

e) When the debt repayment deadline arrives, if the parties have no otheragreement and the sponsor cannot repay the debt, the lending organization hassuch rights to auction off the assets formed with borrowed funds and thecollateral assets to recover the debt according to the law;

g) Adjusting the debt repayment deadlines and periods, extending the debt, andwaiving or reducing interest on borrowed capital according to the provisions ofArticle 18 and point (a) Clause 3 of Article 22 of this Decree;

h) Implementing loans in accordance with the target groups, industry structure,fields, regions, and total amount of state investment credit development asdecided by the Prime Minister and as stipulated in this Decree;

i) Adhering to the agreements in the credit agreement;

k) Properly preserving loan-related files in compliance with the law.

2.Rights and obligations of entrusted credit organizations:

a) Implementing the provisions at points (c), (d), (đ), (e), (i), (k) of Clause 1 ofthis Article;

b) Adjusting the debt repayment period;

c) Adhering to the entrusted agreement with the Development Support Fund.

Article 21. Rights and Obligations of the Project Owner

1. Refusing requests from lending organizations that do not comply with legalprovisions and agreements in the credit agreement.

2. Filing complaints or initiating legal actions against violations of the creditagreement by lending organizations in accordance with the law.

3. Providing complete, timely, and truthful information and documents related toborrowing, using borrowed capital, and bearing responsibility for the accuracyof the provided information and documents.

4. Using borrowed capital for the intended purpose and fulfilling other agreed-uponcontents in the credit agreement.

5. Repaying the principal and interest of borrowed capital according to theagreements in the credit agreement.

6. Bearing legal responsibility for failing to fulfill the agreements regarding debtrepayment and the obligation to guarantee the debt as committed in the creditagreement.

Article 22. Risks and Risk Management

1. State investment credit development projects facing risks due to objectivefactors shall be handled as follows:

a) Due to changes in national policies or market price fluctuations within andoutside the country not anticipated in the feasibility study, leading to difficultyin repaying the loan, the debt may be extended; interest on the loan may beexempted, reduced, or suspended;

b) Due to natural disasters, fires, or unexpected accidents causing asset loss,confirmed by the competent state authority, if the sponsor cannot repay thedebt, after receiving insurance compensation (if applicable), part or all of theloan may be waived. If there is still the ability to repay the debt, it shall behandled as in point (a) of this clause.

2. The risk compensation fund specified in Clause 1 of this Article shall be drawnfrom the Risk Prevention Fund of the Development Support Fund. The Risk PreventionFund shall allocate 2% from the annual loan interest income. In cases where theRisk Prevention Fund is insufficient to cover the compensation, the ManagementBoard of the Development Support Fund shall report to the Prime Minister forconsideration and decision.

3. Authority to handle risks:

a) The Development Support Fund decides on debt extension, interest exemption, anddebt reduction;

b) The Prime Minister decides on debt write-off based on the proposal of theDevelopment Support Fund.

Article 23.Loaning to projects using Official Development Assistance (ODA) funds forresublending shall be carried out according to the provisions of Decree No. 87/ND-CPof August 5, 1997, issued by the Government on the management and use of OfficialDevelopment Assistance (ODA) sources, and Decree No. 90/1998/ND-CP of November 7,1998, issued by the Government on the management of foreign borrowing andrepayment, and the provisions of this Decree. In cases where Decrees No. 87/ND-CPand No. 90/ND-CP have different provisions from this Decree, they shall beimplemented according to Decrees No. 87/ND-CP and No. 90/ND-CP mentionedabove.

 

PART II. INTEREST SUBSIDY AFTER INVESTMENT

Article 24. The subjects eligible for post-investment interest rate support are projects thatenjoy investment incentives under current government regulations guiding theimplementation of the Law on Encouraging Domestic Investment (amended), whichare funded by lawful financial institutions in Vietnam, completed and put intouse, and have repaid part of the loans.

Article 25. The investor may only receive interest rate support for the amount of investmentloans within the total project investment limit.

Article 26.Conditions for Post-Investment Interest Support

1. Being permitted by competent state agencies to enjoy investment incentivesunder the Law on Encouraging Domestic Investment (amended).

2. Projects not yet borrowed for investment or guaranteed for investment creditusing state development investment capital.

3. Approved by the Development Support Fund and signed a post-investmentinterest rate support contract.

Article 27. The post-investment interest rate support contract must include: the name of theinvestment project, the lending financial institution, the loan amount, the loanterm, the repayment period, the amount of interest rate support divided by therepayment period, the rights, obligations of each party, and other commitmentsagreed upon by the parties in accordance with the law.

Article 28Post-investment interest rate support level

1. The amount of post-investment interest rate support is determined by multiplyingthe total amount of investment loans from financial institutions by 50% of the statedevelopment investment credit interest rate prescribed in Article 12 of this Decree.The interest rate support level is calculated at the time of borrowing and remainsstable throughout the loan term.

2. Post-investment interest rate support payment is made once a year at the end ofthe year based on the principal debt paid by the investor to the lending financialinstitution.

3. Post-investment interest rate support ends when the loan term recorded in thecredit contract expires.

Article 29Post-investment interest rate support procedures

1. To be considered for post-investment interest rate support, the investor mustsubmit to the Development Support Fund an application for interest rate supportincluding:

a) An application for interest rate support;

b) Investment decision or business registration certificate;

c) Decision of the competent state agency allowing investment incentives under theLaw on Encouraging Domestic Investment (amended);

d) Credit contract.

The documents specified in points (b), (c), and (d) above must be originals orcertified copies by the competent state agency.

2. Within twenty working days from the date of receiving all documents as stipulatedin Clause 1 of this Article, the Development Support Fund will review and, ifapproved, proceed to sign the interest rate support contract. If not approved, theFund will send a letter to the investor and must provide a report explaining itsdecision and bear responsibility for it to the investment decision-making authority.

3. To receive interest rate support payments, the investor must submit to theDevelopment Support Fund:

a) The acceptance record of the completed works or project components handedover for use (original);

b) Debt agreement (certified copy by the competent state agency);

c) Original proof of debt repayment by the investor to the lending financialinstitution during the year.

4. Within five working days from the date of receiving all documents as stipulatedin Clause 3 of this Article, the Development Support Fund will process theinterest rate support payment for the investor.

 

PART III. CREDIT GUARANTEE FOR INVESTMENT

Article 30. The subjects eligible for guarantee are investors with projects enjoying investmentincentives under current government regulations guiding the implementation of theLaw on Encouraging Domestic Investment (amended), but who are not eligible forpost-investment interest rate support, or have not been granted or have only beengranted partial state development investment credit.

Article 31Conditions for investors wishing to obtain guarantees:

1. Having been assessed by a financial institution for a loan and having a requestfor guarantee in writing.

2. Approval by the Development Support Fund of the financial plan and debtrepayment plan.

3. Must have collateral for the guarantee as follows:

a) For state-owned enterprise investors, when obtaining a guarantee, theinvestor can use assets formed by the loan as collateral for the guarantee.

b) For non-state-owned enterprise investors, when obtaining a guarantee, inaddition to using assets formed by the loan as collateral for the guarantee, theymust also have collateral worth at least 50% of the guaranteed amount. In specialcases, the Prime Minister shall decide.

c) During the guarantee period, the investor may not give, gift, transfer, sell, orpledge the asset to borrow elsewhere.

Article 32Guarantee period

Article 33The guarantee period shall be consistent with the agreed loan term between theinvestor and the financial institution lending for the project implementation.

Guarantee level

1. The guarantee level for a project is equal to the loan amount from financialinstitutions within the total project investment limit, but not exceeding the maximumlevel prescribed by the Law on Encouraging Domestic Investment (amended).

Article 34. Annually, the Development Support Fund shall allocate 5% of the total investment credit capital of the State (excluding ODA loanable capital) to set aside for payment to financial institutions when the project sponsor fails to repay the debt on time despite having been guaranteed. If unused at year-end, this capital will be transferred to become the lending capital for the following year. In cases where the reserve capital is insufficient to fulfill guarantee obligations, the Management Board of the Fund shall report to the Prime Minister for decision.

Article 35. The project sponsor who receives a guarantee must pay the Development Support Fund a guarantee fee of 0.5% per annum based on the amount being guaranteed.

Article 36Application for Guarantee

1. An application for guarantee from the project sponsor and a document from the financial institution requesting the guarantee;

2. Project application documents for guarantee in accordance with points (b), (c) of Clause 1, Article 13 and points (b), (c), (đ) of Clause 1, Article 14 of this Decree;

3. A document assessing the loan from the financial institution.

Article 37Within twenty working days from the date of receipt of all application documents for guarantee, the Development Support Fund shall review and, if approved, sign the guarantee contract and proceed with the issuance of the guarantee letter. If the guarantee is rejected, the Fund shall send a document to the project sponsor; simultaneously, it must provide a detailed explanation and bear responsibility for its opinion with the competent authority deciding on investment.

Article 38Guarantee Contract

1. The Development Support Fund and the project sponsor shall enter into a guarantee contract, clearly defining the amount guaranteed, the term of guarantee, the guarantee fee, forms of security for the guarantee; rights, obligations of the parties and other commitments agreed upon in compliance with the law.

2. The guarantee contract terminates when:

a) The project sponsor has fully repaid the debt to the financial institution or to the Development Support Fund (in case the Development Support Fund has to repay the debt instead);

b) As decided by the competent state agency.

Article 39. Upon reaching the repayment deadline, if the project sponsor cannot repay part or all of the borrowed amount without the financial institution granting a deferment or extension of the debt, the Development Support Fund shall repay the remaining amount to the financial institution; simultaneously, the project sponsor must sign a promissory note recognizing the debt owed to the Development Support Fund for the amount repaid, with a penalty interest rate of 130% of the current borrowing interest rate of the financial institution. The Development Support Fund may handle the collateral assets for the guarantee as if they were mortgage assets to recover the debt or initiate legal proceedings according to the law.

Article 40Rights and Obligations of the Guarantor and the Guaranteed Party

1. Rights and Obligations of the Guarantor (Development Support Fund):

a) Requesting the project sponsor to provide documents as stipulated in Article 36 of this Decree;

b) Requiring the project sponsor to have collateral for the guarantee as stipulated in Clause 3, Article 31 of this Decree;

c) Charging service fees for guarantee as stipulated in Article 35 of this Decree;

d) Cooperating with the financial institution providing the loan to monitor the borrowing process, usage of borrowed funds, and repayment by the project sponsor;

đ) Refusing to provide a guarantee if the conditions for guarantee are not met;

e) Fulfilling all commitments stated in the guarantee letter and guarantee contract.

2. Rights and Obligations of the Guaranteed Party (project sponsor):

a) Requesting the Development Support Fund to fulfill all commitments in the guarantee contract;

b) Providing complete information and documents related to the guarantee as requested by the Development Support Fund and bearing responsibility for the accuracy and legality of such information and documents;

c) Fulfilling all commitments in the guarantee contract;

d) Accepting inspection and supervision by the Development Support Fund regarding activities related to the guarantee.

  

Chapter III

RIGHTS AND RESPONSIBILITIES OF STATE MANAGEMENT AUTHORITIES

Article 41. Government and Prime Minister

1. Deciding on the target program and support policies for investment.

2. Deciding on the source of capital and the total amount of State investment credit capital during each planning period; deciding on the list and amount of loans for Group A projects.

3. Assigning the Development Support Fund targets for the State's investment credit capital sources, the total amount of State investment credit capital according to various forms of support (investment loans, post-investment interest subsidies, investment credit guarantees) and by industry, sector, and region structure.

4. Deciding on supplementary and amended policies and measures to implement the State's investment credit development plan.

Article 42.Ministry of Planning and Investment

1. Based on the objectives and tasks of the socio-economic development plan, building and submitting to the Government and the Prime Minister for decision on annual plans for the Development Support Fund concerning sources of capital, the total amount of State investment credit capital according to various forms of investment support and by industry, sector, and region within the planning period.

2. On the basis of opinions from relevant agencies and the Development Support Fund's assessment results on financial plans and repayment plans; assessing and submitting to the Prime Minister for decision on Group A projects; submitting to the Prime Minister for decision on the list and amount of loans for Group A projects.

3. Balancing the State budget capital for the Development Support Fund to implement the State's investment development support policy.

4. Widely publicizing and updating information on industry, regional, and product development plans, domestic and international markets, and State policies encouraging investment development.

5. Inspecting the implementation of the State's investment development support policies, thereby proposing recommendations to the Government for supplementing and amending policies to encourage and support investment development.

Article 43.the Ministry of Finance

1. Guiding the Development Support Fund and related organizations in raising capital for State investment credit.

2. Issuing Government Bonds to raise capital for State investment credit.

3. Allocating annual State budget capital to the Development Support Fund to implement various forms of State investment development support.

4. Supervising the Development Support Fund in borrowing, receiving, and repaying raised capital; using State investment credit capital for investment loans, issuing post-investment interest subsidy payments, and repaying guaranteed investment credit.

5.Submit to competent authorities for issuance or issue within their authority policies, financial mechanisms, mobilization and utilization of state credit investment capital; supervise the Development Support Fund, issue guiding documents on the Fund's operations.

Article 44.State Bank of Vietnam

Implement state management functions regarding currency and credit related to state investment development credit according to the provisions of the law and direct credit organizations to mobilize funds for medium and long-term loans to serve the state's economic development policy during each period, serving structural transformation and economic programs, key industries; coordinate with the Development Support Fund to implement entrusted lending, lend projects guaranteed by the Development Support Fund and provide post-investment interest rate support.

Article 45.Ministries, ministerial-level agencies, government agencies, and provincial People's Committees under the central government

1.Publicly announce plans, guidance on development orientation, procedures, standards, economic and technical norms, products, regions, and other necessary information in each planning period as the basis for building and appraising projects supported by state investment.

2.Decide within their authority to establish state-owned enterprises to be the main investors in projects supported by state investment. Review and provide written opinions on issues related to Group A investment projects to serve as a basis for the Ministry of Planning and Investment to appraise and submit to the Prime Minister for investment decision.

3.Direct and inspect project investors to implement investment in accordance with state regulations on investment, ensuring progress and timely repayment of loan principal according to the terms of the credit contract.

4.Cooperate with the Development Support Fund to resolve consequences for projects that have been suspended or cannot repay loans within their responsibility as stipulated by law.

 

Chapter IV

DEVELOPMENT SUPPORT FUND

Article 46.The Development Support Fund is a state financial organization operating without profit-making objectives, ensuring capital recovery and cost compensation. The Fund has a unified management and operation system nationwide, possesses legal personality, and receives regulated capital.

Article 47.The Development Support Fund is responsible for mobilizing medium and long-term capital, receiving and managing state funds allocated for state investment credit; lending and recovering debts from investment loan projects, providing post-investment interest rate support, guaranteeing investment credit according to this Decree; accepting entrusted lending for funds allocated by localities and domestic and foreign organizations for investment lending; re-guaranteeing investment funds of sectors, organizations, and localities; performing other tasks assigned by the Prime Minister.

Article 48The Development Support Fund operates according to its charter approved by the Prime Minister, subject to state management by relevant state agencies as prescribed by law.

The organization and activities of the Development Support Fund shall be carried out in accordance with the Government's regulations.

 

Chapter V

REPORTING, INSPECTION, AUDIT AND VIOLATION HANDLING

Article 49. Inspection, examination, reporting

1.All state investment development credit activities must be subject to inspection and examination by authorized state agencies as prescribed by law.

2.Depending on the specific circumstances of each project, inspections and examinations may be conducted at any stage or throughout the entire process of investment construction, production-business operations, and loan repayment.

3.The heads of ministries, ministerial-level agencies, government agencies, and Chairmen of provincial People's Committees under the central government shall carry out inspections and supervision of the implementation of state investment credit development for projects of investors within their jurisdiction.

4.Monthly on the 20th day and according to periodic reporting requirements, the Development Support Fund compiles reports to the Prime Minister on the implementation of the investment credit development plan, simultaneously sending them to the Ministry of Planning and Investment, the Ministry of Finance, and the General Statistics Office.

Article 50. Handling violations

1.Project investors supported by the state if they violate the provisions of this Decree may be subject to administrative penalties depending on the severity of the violation, and if property damage occurs, they must compensate and be dealt with according to the law.

2.Persons making investment decisions contrary to investment policies causing serious economic-social and environmental consequences must bear legal responsibility.

3.The Development Support Fund and credit organizations if they violate credit contracts, interest rate support contracts, or guarantee contracts will be handled according to the law.

 

Chapter VI

IMPLEMENTING PROVISIONS

 Implementation guidance This Decree takes effect from January 1, 2000.

Article 52. For projects borrowing state credit before this Decree takes effect, the terms already recorded in the credit contracts and previous decisions of the Prime Minister shall continue to be implemented.

Article 53.The Minister of Finance, the Minister of Planning and Investment, and the Governor of the State Bank of Vietnam are responsible for guiding the implementation of this Decree according to their functions and authorities.

Article 54Ministers, heads of ministerial-level agencies, heads of government agencies, Chairmen of provincial People's Committees under the central government, and Chairmen of the Management Council of the Development Support Fund are responsible for implementing this Decree./.