2020: Strictly prohibiting using funding from state budget to make asset contribution to the establishment of charity funds in Vietnam

Specifically, according to Article 9 of Decree No. 93/2019/ND-CP of Vietnam’s Government, abusing the establishment and operations of a social and charity fund (hereinafter referred to as “fund") to use funding from state budget to make asset contribution to the fund or use or support the contribution of assets derived from or acquired with funding from state budget to the fund is strictly prohibited.

Moreover, Decree No. 93/2019/ND-CP also strictly prohibits the acts of abusing the establishment and operations of a fund to:

- Damage the prestige of the State, competent authorities, organizations, individuals or community; harm national interests, security, defense and national unity;

- Commit self-seeking activities or financial frauds during the establishment and operation of the fund.

Decree No. 93/2019/ND-CP remains the prohibited acts according to previous regulations (Decree No. 30/2012/ND-CP):

- Contravene social morality, fine customs, practices, traditions, national characters, beliefs or religions;

- Launder money, finance terrorism or commit other illegal acts;

- Falsify, erase, transfer, lease, lend, mortgage or pledge the fund establishment license in any forms.

Besides, Decree No. 93/2019/ND-CP also specifies the funds’ legal status, seals, accounts, names, logos and head offices as follows:

- A fund has the legal status and its own seal and account as prescribed by law.

- A fund may select its name and logo. The selected name and logo must satisfy the following conditions:

+ They must be neither identical nor confusing with previously registered names and logos of other funds;

+ They must not contravene historical and cultural traditions as well as ethics and national fine customs;

- The fund's name must be in Vietnamese and may be translated into foreign languages in accordance with law regulations.

- A fund’s transaction office must be located at a specific address in the territory of Vietnam. Its legality must be supported by documentary evidence.

Other regulations can be found in Decree No. 93/2019/ND-CP of Vietnam’s Government, which takes effect from January 15, 2020 and replaces Decree No. 30/2012/ND-CP.

Thu Ba

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