What are regulations on operating capital of the small and medium enterprise development fund in Vietnam?
i have a following question. What are regulations on operating capital of the small and medium enterprise development fund in Vietnam? Thank you!
- Financing refers to the situation in which the Fund gives its capital as a sponsorship and carries out activities in support of enhancing the capability of small and medium enterprises.
- Risk acceptance ratio refers to the highest percentage of risk in a financial year that the Fund may accept in case any loss occurs. The risk acceptance ratio is measured by the value of loss leading to reduction in the chartered capital divided by the actual amount of chartered capital at the time of determination of the risk acceptance ratio.
Pursuant to Article 43 of the Decree 39/2019/NĐ-CP (takes effect from 01/07/2019) stipulating regulations on operating capital of the small and medium enterprise development fund in Vietnam as follows:
1. Owner’s equity shall include:
a) The Fund's minimum chartered capital which is 2,000 billion dong and is derived from the state budget's capital expenditure. The Ministry of Planning and Investment shall preside over and cooperate with the Ministry of Finance in petitioning the Prime Minister to approve the Fund’s chartered capital amount over periods of time;
b) Supplementary capital derived from the Fund’s income;
c) Capital derived from non-refundable financing, aids and contributions of persons and entities;
d) Other capital under the Fund’s ownership.
2. Capital acquired from receipt of reimbursable borrowed funds, contributions and fiduciary funds of persons and entities.
3. Other capital prescribed by law.
Above are regulations on operating capital of the small and medium enterprise development fund in Vietnam.
Best regards!
