What does organizational structure of the Local Development Investment Fund in Vietnam comprise?

What does organizational structure of the Local Development Investment Fund in Vietnam comprise?

Pursuant to Article 9 of Decree 147/2020/ND-CP stipulating organizational structure of the Local Development Investment Fund is as follows:

1. The organizational structure of a local development investment fund includes:

a) Board of Management.

b) Board of Control.

c) The Executive Board consists of the Fund's Director, the Fund's Deputy Directors, the Chief Accountant and the assisting apparatus.

2. Competence to decide the planning, appointment, re-appointment, resignation, relief from duty, transfer, rotation, commendation, discipline, resignation and retirement of the Fund manager as prescribed in Clause 2 of this Article. Article 10, Article 11, Article 12 and Article 13 of this Decree and the Fund's Charter on organization and operation.

What are conditions to be appointed President of the Management Board of the Local Development Investment Fund in Vietnam?

According to Article 10 of Decree 147/2020/ND-CP, the management board of Local Development Investment Fund is as follows:

1. The Local Development Investment Fund Management Council has a maximum of 5 members, including the President, Vice President and members. The term of office of the Fund Management Board shall not exceed 5 years. The Director of the Local Development Investment Fund may concurrently be the Vice President or a member of the Fund Management Council. Other members of the Management Board may act concurrently but may not concurrently hold any other management positions at the Fund.

2. Provincial-level People's Committees shall decide on the number of members and operating term of the Management Council on the principle that the number of members of the Fund Management Council is odd; decide the planning, appointment, re-appointment, resignation, dismissal, transfer, rotation, commendation, discipline, resignation and retirement of the President, Vice President and members of the Board of Directors Fund Manager.

3. Criteria and conditions for appointment and re-appointment of the President of the Fund Management Council:

a) Being a Vietnamese citizen, permanently residing in Vietnam, having full civil act capacity.

b) Having a university degree or higher, having at least 5 years' experience as a manager or executive officer in one of the fields of economics, finance, banking, business administration, law, accounting or auditing. 

c) Not being the spouse, adoptive father, biological mother, adoptive mother, biological child, adopted child, sibling, brother-in-law, brother-in-law, sister-in-law, sister-in-law of the fund manager.

d) Other standards and conditions as required by the management of the People's Committee of the province specified in the Charter of organization and operation of the Fund.

4. The Vice President and members of the Fund Management Council must have a university degree or higher, have management capacity and experience in one of the fields of economics, finance, banking, business administration, law, accounting, auditing. Specific criteria and conditions for the Vice President and members of the Fund Management Council are specified in the Fund's Charter on organization and operation.

5. The working regime of the Management Board is specified in the Fund's Charter on organization and operation to ensure the following contents:

a) Meetings of the Fund Management Board are only effective when at least 2/3 of the members attend. In case the meeting is not held, the collection of opinions of the members of the Management Board shall be done in writing.

b) The conclusions of the Fund Management Board are expressed in resolutions and decisions of the Management Board.

c) The Board of Management of the Fund decides on issues by majority vote, each member of the Management Board has one vote with equal voting rights. Resolutions and decisions of the Management Board take effect when more than 50% of the total number of members of the Fund Management Board vote or collect written opinions in agreement. In case the number of votes is equal, the final decision belongs to the side with the opinion of the President of the Fund Management Council or the person presiding over the meeting of the Management Board.

6. Duties and powers of the Management Council include:

a) Receive, manage and use the Fund's capital in accordance with the law and the Fund's Charter on organization and operation; preserve and develop the Fund's capital.

b) Approve the 5-year operation plan and annual financial plan of the local development investment fund for submission to the provincial People's Committee for approval.

c) Promulgate or amend the regulations on professional activities and other regulations as prescribed in the Fund's Charter on organization and operation.

d) Supervising and inspecting the executive apparatus of the Local Development Investment Fund in the observance of policies and laws and the implementation of decisions of the Management Council.

dd) Approve the list of investment and lending sectors and the minimum lending interest rate of the local development investment fund for submission to the provincial People's Committee for decision in accordance with this Decree.

e) To decide on lending and investment activities, capital mobilization plans and risk handling within its competence.

g) Approve financial statements, distribute income and expenditure differences, set aside annual funds of the local development investment fund after obtaining appraisal opinions of the Supervisory Board for submission to the provincial People's Committee for approval. 

h) Submit to the provincial People's Committee for decision to amend and supplement the charter of organization and operation of the local development investment fund.

i) Decide the planning, appointment, re-appointment, resignation, dismissal, transfer, rotation, commendation, discipline, resignation, retirement for the titles according to the competence specified in Article 2 of this Law. organization and operation of the Fund.

k) Issue or amend the Regulation on operation and assign tasks to members of the Fund Management Council.

l) Other tasks and powers as prescribed in the charter of organization and operation of the local development investment fund.

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