What are the regulations on financial performance and distribution of financial performance at the Vietnam Development Bank?

According to Article 26, Decree 46/2021/ND-CP on the financial performance and distribution of financial performance at the Vietnam Development Bank:

1. The financial performance is the difference between income and expenses incurred in the financial year:

a) The financial performance of the Vietnam Development Bank in the year achieves a surplus when the difference between income and expenses incurred in the financial year of the Vietnam Development Bank has a positive result (+);

b) The financial performance of the Vietnam Development Bank in the year incurs a deficit when the difference between income and expenses incurred in the financial year of the Vietnam Development Bank has a negative result (-).

2. When the financial performance in the year achieves a surplus, after offsetting the deficits from previous years (if any), it is distributed as follows:

a) Allocate 5% to the provision for supplementing charter capital, the maximum level of this fund does not exceed the charter capital of the Vietnam Development Bank;

b) Allocate 10% to the financial provision, the maximum level of this fund does not exceed 25% of the charter capital of the Vietnam Development Bank;

c) Allocate a maximum of 25% to the development investment fund;

d) Allocate to the reward and welfare funds for the employees of the Vietnam Development Bank:

- Vietnam Development Bank ranked A is allocated 03 months of actual salary for the two reward and welfare funds;

- Vietnam Development Bank ranked B is allocated 1.5 months of actual salary for the two reward and welfare funds;

- Vietnam Development Bank ranked C is allocated 01 month of actual salary for the two reward and welfare funds;

dd) Allocate the reward fund for managers and the Board of Controllers:

- Vietnam Development Bank ranked A is allocated 1.5 months of actual salary for managers and members of the Board of Controllers;

- Vietnam Development Bank ranked B is allocated 01 month of actual salary for managers and members of the Board of Controllers;

- Vietnam Development Bank ranked C is not allocated the reward fund for managers and members of the Board of Controllers;

e) In cases where the remaining difference after making the funds specified at point a, point b, and point c of this clause is insufficient to allocate the reward and welfare funds for employees, the reward fund for managers and the Board of Controllers at the specified level, the Vietnam Development Bank is allowed to reduce the allocation to the development investment fund to supplement the sufficient funds for the reward and welfare funds for employees, the reward fund for managers and the Board of Controllers at the specified level, but the maximum reduction does not exceed the allocation to the development investment fund in the financial year;

g) The remaining amount after making the above funds is supplemented to the provision for supplementing charter capital.

3. When the financial performance in the year incurs a deficit, the Vietnam Development Bank shall carry forward the difference of smaller income than expenses to the following year, the carry forward period not exceeding 05 years. In cases where, after 05 years, the Vietnam Development Bank has not fully carried forward the difference of smaller income than expenses, the Vietnam Development Bank shall report to the Ministry of Finance to preside, coordinate with the Ministry of Planning and Investment to submit to the Prime Minister of Vietnam for consideration and decision.

Respectfully!