03 activities of local Development Investment Funds in Vietnam

03 activities of local Development Investment Funds in Vietnam (Internet image)

Article 4 of Decree 138/2007/ND-CP stipulates that the Local Development Investment Funds can carry out the following activities:

1. Mobilize medium and long-term capital from domestic and foreign organizations and individuals according to the provisions of law;

2. Investment, including direct investment in projects; investment loans; contribute capital to establish businesses operating in the fields of socio-economic infrastructure development;

3. Entrust investment loans and debt recovery; Entrusted management of investment capital, investment loans, debt recovery, allocation of investment capital, issuance of local government bonds to mobilize capital for local budgets as authorized by the People's Committee provinces and centrally run cities (hereinafter referred to as Provincial People's Committees).

In addition, this Decree also regulates the State management of local Development Investment Funds as follows:

- Provincial-level Peoples Committees shall decide on the setting up of local Development Investment Funds, provide for organizational apparatuses and approve operation charters of local Development Investment Funds, directly manage the operation and decide on other matters of local Development Investment Funds which fall within their competence defined in this Decree and current laws.

- The Ministry of Finance shall perform the state management of financial matters; promulgate a model charter on the organization and operation of local Development Investment Funds and a financial management regulation applicable to local Development Investment Funds; and supervise, examine and inspect the operation of local Development Investment Funds.

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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