02 sources of operating capital of local development investment funds in Vietnam

02 sources of operating capital of local development investment funds in Vietnam (Internet image)

Decree 138/2007/ND-CP regulates the operating capital of local development investment funds in Vietnam as follows:

First: Owner capital

Owner capital of a local Development Investment Fund is formed from the following sources:

- Charier capital: is included in the expenditure estimate or the increased revenue of the annual local budget and added with capital from the development investment fund under the provisions of Point b, Clause 6, Article 40 of this Decree;

- Voluntary contributions and aid of domestic and foreign organization and individuals, and other revenues as prescribed by law.

Note: The provincial-level Peoples Committee shall decide to adjust the charter capital of a local Development Investment Fund and notify the Ministry of Finance of such adjustment; however, the charter capital must not be lower than the minimum level specified in Clause 2, Article 30 of this Decree.

Second: Raised capital

Local Development Investment Funds may raise medium- and long-term capital from domestic and foreign organizations and individuals by:

- Borrowing loans from domestic and foreign financial and credit institutions. The borrowing of foreign loans complies with legal provisions on foreign loans and debts;

- Issuing their bonds in accordance with law;

- Applying other forms of capital raising in accordance with law.

Note: The total capital amount raised by a local Development Investment Fund in the forms above may be up to 6 times its owner capital at a time.

Entrusted capital provided for according to the regulations is not included in the operating capital of a local Development Investment Fund.

More details can be found in Decree 138/2007/ND-CP which comes into force from September 19, 2007.

Ty Na

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