Functions and Duties of the Land Development Fund in Vietnam from August 1, 2024

Functions and Duties of the Land Development Fund in Vietnam from August 1, 2024 (Image from the Internet)

Legal status, status of a juridical person, and functions of the Land Development Fund in Vietnam

According to Article 5 of Decree 104/2024/ND-CP, the Land Development Fund is a state financial fund outside the budget, reporting to the provincial People's Committee. It is established by the decision of the provincial People's Committee, operates independently from the state budget, is non-profit, and aims to preserve and develop its capital.

The Land Development Fund has status of a juridical person, possesses its own seal, has accounts, operates independent accounting, and has charter capital.

The name: “Land Development Fund” combined with the name of the province or centrally-governed city.

The Land Development Fund functions to receive and mobilize capital as prescribed to perform its task of providing advance capital and receiving capital repayment as stipulated in Article 114 of the Land Law 2024, Decree 104/2024/ND-CP, and related laws.

Authority to establish the Land Development Fund in Vietnam

The provincial People's Committee of provinces and centrally-governed cities (hereinafter referred to as provincial level) decides to establish the Land Development Fund.

Based on the actual situation of the locality, if necessary to establish the Land Development Fund, the provincial People's Committee assigns a specialized agency under the provincial People's Committee to take the lead and cooperate with local functional agencies to prepare a dossier proposing the establishment of the Land Development Fund, and submit it to the provincial People's Committee.

Duties and powers of the Land Development Fund in Vietnam

The Land Law 2024 stipulates that the Land Development Fund is responsible for preserving and developing capital, operating non-profit. The financial sources of the Land Development Fund are allocated from the state budget and mobilized from other sources as prescribed by law. Advances for the execution of tasks are repaid to the Land Development Fund according to the law. Article 6 of Decree 104/2024/ND-CP outlines the duties of the Land Development Fund as follows:

- Manage, preserve, and develop capital.

- Execute advance tasks as decided by the competent authority; recover advance capital as prescribed.

- Comply with legal regulations on financial management, assets, accounting, auditing, and other related regulations. 

- Decide to stop or recover advance capital if the capital-receiving organization violates regulations on the use of advance capital or delays in repaying advance capital.

- Inspect the use of advance capital and recover advance capital as prescribed in Clause 7, Article 16 of Decree 104/2024/ND-CP; determine the management costs for advance capital as prescribed in Article 17 of Decree 104/2024/ND-CP.

- Perform regular reporting policies according to regulations; make unscheduled reports on the management and use of operating capital of the Land Development Fund as required by the competent authority

.- Carry out other tasks as prescribed in this Decree and related laws.

The powers of the Land Development Fund are stipulated in Article 7 of Decree 104/2024/ND-CP as follows:

- Organize the management and operation of the Land Development Fund in line with the objectives and assigned tasks.

- Issue regulations, procedures to operate the Land Development Fund.

- Inspect the compliance of the advance capital use purposes for projects or tasks funded by the Land Development Fund.

- Handle or report violations in capital management, usage, or repayment to the competent authority for actions taken by the organization or individual.

- Exercise other rights as prescribed in Decree 104/2024/ND-CP and related laws in Vietnam.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE