Decree 138: 05 Conditions for setting up a local Development Investment Fund in Vietnam

Decree 138: 05 Conditions for setting up a local Development Investment Fund in Vietnam (Internet image)

Article 30 of Decree 138/2007/ND-CP stipulates 05 conditions for setting up a local Development Investment Fund in Vietnam including:

1. There is a scheme on setting up a local Development Investment Fund, approved by the provincial-level Peoples Council.

2. The charter capital of a local Development Investment Fund by the time of its establishment must be at least VND 100 (one hundred) billion.

3. Personnel of the organizational apparatus of a local Development Investment Fund must possess professional capacity and skills suitable to the Funds operating requirements.

4. The director and deputy directors of a local Development Investment Fund must possess a university degree in economics, finance or banking and at least 3 years managerial or administration experience in the economics, finance, banking or investment domain.

5. The head of the Control Board of a local Development Investment Fund must possess a university degree in finance, accountancy or banking and at least 3 years managerial or administration experience in the finance, accountancy or banking domain.

In addition, this Decree also stipulates the operation principles of local Development Investment Funds in Vietnam as follows:

- Local Development Investment Funds shall operate on the principles of enjoying financial autonomy, preserving and developing capital, offsetting expenses and taking risks by themselves. State budget funds shall not be allocated for the operation of the apparatuses of local Development Investment Funds.

- Local Development Investment Funds shall take limited liability within the limits of their owner capital.

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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