Methods of receipt of sponsorships, contributions, and trusts of small and medium enterprises development fund in Vietnam

According to Article 4 of the Circular No. 08/2020/TT-BKHĐT of the Ministry of Planning and Investment of Vietnam, methods of receipt of sponsorships, contributions, and trusts of small and medium enterprises (SMEs) development fund are prescribed as follows:

1. Sponsorships, contributions in cash: The sponsor or contributor shall transfer a sum of sponsorship or contribution in VND or foreign currency to an account of the Fund opened at a commercial bank.

2. Sponsorships, contributions in kind:

- The sponsor or contributor shall hand over to the Fund machinery, equipment, means of transport, land, construction works, and other valuable items.

- The value of the in-kind sponsorship or contribution to the Fund shall be converted into a sum of money in VND, and stated in documentation of sponsorship or contribution.

As for property valued at least VND 500 million on the market, the Fund must engage a valuation organization. The property shall be valued within 6 months to the submission of the application for sponsorship or contribution.

3. As for repayable contributions: The Fund shall make repayments as agreed upon between the parties.

4. As for trusts: The trustor shall transfer a sum of trust in VND or US Dollar to an account of the Fund opened at a commercial bank.

The Fund shall make repayments to the trustor as agreed upon between the parties.

View more details at the Circular No. 08/2020/TT-BKHĐT of the Ministry of Planning and Investment of Vietnam, effective from January 15, 2021.

Thuy Tram

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