Local Development Investment Fund: What Are Its Sources of Capital Mobilization?

Currently, the Equity Capital of the Fund includes:

- Actual charter capital;- Financial reserve fund;- Development investment fund;- Other lawful capital sources of the owner as prescribed by law.

According to the provisions of Circular 28/2014/TT-BTC, the local development investment fund is allowed to mobilize capital from organizations and individuals both domestically and internationally. To be specific:

- The Fund is permitted to mobilize capital from organizations and individuals both domestically and internationally under the following basic principles:

- Mobilized capital must be medium and long-term capital (i.e., capital with a repayment term of 01 year or more).- The form of capital mobilization is prescribed in Article 27 of [Decree 138/2007/ND-CP](https://lawnet.vn/vb/nghi-dinh-138-2007-nd-cp-to-chuc-hoat-dong-quy-dau-tu-phat-trien-dia-phuong-d62b.html).- Compliance with capital mobilization limits as prescribed in Article 28 of [Decree 138/2007/ND-CP](https://lawnet.vn/vb/nghi-dinh-138-2007-nd-cp-to-chuc-hoat-dong-quy-dau-tu-phat-trien-dia-phuong-d62b.html).- The authority to mobilize capital is implemented in accordance with the capital mobilization regulation and the Charter of organization and operation of the Fund.

- The Fund shall draft a capital mobilization regulation for approval by the Fund's management board. The capital mobilization regulation must include the following basic contents:

- Purpose of capital mobilization;- Sources of capital and forms of mobilization;- Process for drafting and approving capital mobilization plans from sources as prescribed by law;- Plan for managing and using mobilized capital;- Plan and responsibility for repaying principal and interest on due dates.

See the detailed content in Circular 28/2014/TT-BTC, which came into effect on April 12, 2014.

Thu Ba

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE