Decree No. 50/1999/ND-CP On the organization and operation of the Development Support Fund

DECREE

Regarding the organization and operation of the Development Support Fund

THE GOVERNMENT

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

Pursuant to Decree No. 43/1999/NĐ-CP dated June 29, 1999 of the Government on state investment credit for development;

At the proposal of the Minister of Finance, the Minister, Head of the Government Organizational and Cadre Affairs Department, and the Minister, Chairman of the Government Office

DECREE:

Article 1. Establish the Development Support Fund to mobilize medium and long-term capital, receive and manage state funds allocated for investment credit development to implement the state's investment support policy.

Article 2. The Development Support Fund is a state financial organization operating without profit-making objectives, ensuring repayment and covering costs, having legal personality, registered capital, balance sheets, seals, and accounts opened at the State Treasury, domestic and foreign banks. The Development Support Fund operates according to its charter approved by the Prime Minister.

The Fund is exempt from tax payments and other national budget contributions to reduce loan interest rates and guarantee fees.

The Development Support Fund is a centralized economic accounting unit with a financial system determined by the Ministry of Finance and decided upon by the Prime Minister.

Article 3. The registered capital of the Fund is 30,000 billion VND from the existing registered capital of the National Investment Support Fund and annual supplementary funding from the state budget.

Article 4. The Development Support Fund has its headquarters in Hanoi. Depending on its scale and scope of operations, the Fund may establish branches or transaction offices in provinces and centrally-administered cities. The Fund may open transaction offices abroad based on the Prime Minister's decision.

Article 5. The Development Support Fund has the following responsibilities:

1. Mobilizing medium and long-term capital, receiving state funds (including both domestic and foreign funds) to implement the state's investment support policy;

2. Using the Fund's resources effectively and in accordance with their intended purpose;

3. Providing investment loans and recovering debts;

4. Supporting post-investment interest rates;

5. Implementing guarantees for investors borrowing for investment; re-guaranteeing and accepting re-guarantees for investment funds;

6. The Fund may entrust or accept entrustment for investment lending;

7. Performing other tasks assigned by the Prime Minister;

8. Strictly adhering to state laws and other regulations related to the Fund's activities;

9. Regularly reporting to the Prime Minister and relevant ministries and sectors as stipulated.

Article 6. The Development Support Fund has the following rights:

1. Inspecting and requesting investors to provide documentation and explain issues related to the management and use of state investment support funds;

2. Reviewing financial plans and debt repayment plans for investment projects;

3. Refusing and recommending competent authorities to decide against lending, post-investment interest rate support, and investment credit guarantees for projects that do not meet the criteria for state investment support, are not effective, or do not comply with government regulations on state investment credit development;

4. Ceasing state investment support when discovering that investors violate loan contracts, post-investment interest rate support contracts, or guarantee contracts;

5. Recommending competent state management agencies to issue, supplement, or amend policies and mechanisms related to investment construction management and the Fund's activities;

6. Implementing risk management and collateral asset handling according to government regulations on state investment credit development;

7. Initiating legal proceedings before competent authorities to resolve disputes or complaints according to the law against organizations and individuals violating contracts or commitments with the Fund.

Article 7. The management and operational structure of the Development Support Fund includes: the Management Board, the Supervisory Board, the General Director, Deputy General Directors, and various business departments.

Appointments, dismissals, commendations, and disciplinary actions for members of the Management Board, the Supervisory Board Chair, the General Director, and Deputy General Directors of the Fund are decided by the Prime Minister based on proposals from the Minister and the Head of the Government Organizational and Cadre Affairs Department.

Article 8. The Development Support Fund's Management Board consists of five members, including two full-time members who are the Chairman and Vice-Chairman兼任总经理，以及三位兼职成员，他们是财政部、国家计划和投资部、越南国家银行的授权代表。

The Management Board of the Development Support Fund has the following duties and powers:

1. Submitting to the Prime Minister for approval, supplementation, and amendment of the Fund's Charter and matters concerning investment credit development beyond its authority;

2. Approving the direction of operations, financial plans, and final accounts reports of the Fund;

3. Carrying out duties and exercising powers as prescribed in the Fund's Charter;

4. Supervising and inspecting the Fund's activities according to the Fund's Charter and Management Board decisions;

5. Considering reports from the Supervisory Board; resolving complaints as stipulated in Clause 4 of Article 9 of this Decree, and reporting to the Prime Minister for consideration and resolution if beyond its authority.

Article 9. The Supervisory Board is responsible to the Management Board of the Development Support Fund for overseeing all of the Fund's activities.

The Supervisory Board has the following duties and powers:

1. Inspecting and supervising compliance with policies, systems, and business practices in the Fund's operations to enhance operational efficiency, ensure the safety of state assets and Fund assets; reporting to the Management Board on inspection and supervision results and recommending measures for handling;

2. Conducting work independently according to a program approved by the Management Board;

3. Having the responsibility to present reports and recommendations on oversight results and financial settlement reviews at Management Board meetings but without voting rights;

4. Considering and submitting to competent authorities for resolution complaints from lending organizations, investors, financial institutions accepting entrusted lending, and other organizations and individuals related to the Fund's activities.

Article 10. The General Director is the legal representative of the Fund, accountable to the Prime Minister, the Management Board of the Development Support Fund, and the law for all of the Fund's activities.

The duties and powers of the General Director are implemented according to the provisions of the Development Support Fund Charter.

The Deputy General Directors and supporting staff assist the General Director.

The establishment, dissolution of business departments, branches, and trading offices, as well as the appointment and removal of heads and deputies of such departments and branches and trading offices shall be decided by the General Director based on the approval of the Management Board of the Fund.

Article 11.

The Minister of Finance is authorized by the Prime Minister:

1. To supervise the activities of the Management Board of the Development Support Fund and has the authority to:

- Attend meetings of the Management Board of the Development Support Fund when deemed necessary.

- Receive regular and ad hoc reports, including reports from the Supervisory Board of the Development Support Fund regarding the operations of the Fund and resolutions of the Management Board of the Fund. In cases where irregularities are detected in the reports, or if there is disagreement with the content of the Management Board's resolutions, directly work with the Management Board to review and reach consensus on handling or adjusting the content of the resolutions. If violations in the operations of the Fund and the content of the Management Board's resolutions contravene the Government Decree on state investment credit for development, this Decree, and other relevant legal documents, report to the Prime Minister for consideration and decision.

2. To perform specific tasks assigned by the Prime Minister.

Article 12. Responsibilities of state management agencies towards the Development Support Fund

1. Ministries, ministerial-level agencies, and government agencies shall carry out state management functions over the Fund and over project sponsors receiving state investment support according to the provisions of the law.

2. In addition to carrying out state management functions over the Fund as stipulated in Clause 1 of this Article, some agencies are tasked with additional responsibilities as follows:

- By January 2006, submit to the Prime Minister a draft list of particularly important state-owned companies directly implementing some rights and obligations of the state owner by the Prime Minister;

Submit annual plans to the Prime Minister for the Development Support Fund concerning sources of capital, total credit amounts for state investment support provided through various forms (investment loans, post-investment interest rate subsidies, investment credit guarantees), and by industry, sector, and region; inspect the implementation of assigned plan targets by the Fund.

Balance the state budget funds for the Fund to implement the state's investment support policy;

Appoint a Deputy Minister to participate in the Management Board of the Fund.

b) The Ministry of Finance:

Provide sufficient charter capital for the Development Support Fund as prescribed;

Implement the transfer and recovery of debts for state capital transferred to the Fund for recoverable loans;

Submit to the Prime Minister for issuance of financial regulations for the Development Support Fund; establish accounting systems; monitor and supervise the Fund's financial activities;

Appoint a Deputy Minister to participate in the Management Board of the Fund.

c) The State Bank of Vietnam:

Direct credit organizations to cooperate with the Development Support Fund to handle entrusted lending by the Fund, lend projects guaranteed by the Fund, and provide post-investment interest rate subsidies;

Guide and inspect the implementation of monetary policies, foreign exchange management, and payments by the Fund;

Appoint a Deputy Governor to participate in the Management Board of the Fund.

d) The Ministry of Labor, Invalids and Social Affairs shall submit to the Prime Minister for decision on salary and allowances for staff of the Development Support Fund.

3. People's Committees of provinces and centrally-administered cities:

Carry out state management functions over project sponsors receiving state investment support under their jurisdiction;

Inspect and supervise compliance with laws by the Development Support Fund and project sponsors implementing state-supported investment projects within their administrative areas.

Article 13.

1. Units and individuals who have achievements in managing and using the Fund's capital shall be rewarded according to the general state reward system.

2. Complaints and denunciations regarding the organization and activities of the Development Support Fund must comply with the law on complaints and denunciations.

3. Staff of the Fund violating the provisions of this Decree and other related legal documents will be subject to disciplinary action or criminal prosecution depending on the nature and severity of the violation, and must compensate for any losses caused to the Fund.

Organizations and individuals borrowing from the Fund who misuse the loan or cause its loss shall be subject to disciplinary action, administrative penalties, or criminal prosecution depending on the severity of the violation, and must compensate for any losses incurred to the borrowed amount.

Article 14. This Decree shall take effect fifteen days from the date of signature.

Abolish Decision No. 808/TTg dated December 9, 1995 of the Prime Minister on the establishment of the National Investment Support Fund and previous provisions that conflict with this Decree.

Article 15. Ministers, heads of ministerial-level agencies, heads of government agencies, Chairmen of People's Committees of provinces and centrally-administered cities, Chairman of the Management Board, and General Director of the Development Support Fund are responsible for enforcing this Decree.