Newest regulations on authority to decide on and procedures for advances from the land development funds in Vietnam

Newest regulations on authority to decide on and procedures for advances from the land development funds in Vietnam (Image from Internet)

On July 31, 2024, the Government of Vietnam issued Decree 104/2024/ND-CP regulating the land development funds in Vietnam.

Newest regulations on authority to decide on and procedures for advances from the land development funds in Vietnam

According to Article 16 of Decree 104/2024/ND-CP, the authority to decide on and procedures for advances from the land development funds in Vietnam are as follows:

- Authority to decide on advances:

The Provincial People's Committee specifies the authority to decide on advances from the land development funds. The authority or individual in charge must review the conditions for advances stipulated in Clause 2, Article 15 of Decree 104/2024/ND-CP to ensure compliance and take responsibility for approving the amount advanced from the land development funds.

- Based on the Capital Advancement Plan approved by the competent authority or individual, the organization receiving the advance prepares one set of documents requesting the capital advance and sends it to the land development funds. The request documents include:

A written request from the organization for the capital advance (clearly stating the plan, progress of work, repayment scheme of the advance, commitment to use the advance for the intended purpose and repayment on time): 01 original copy.

Documents related to the advance conditions stipulated in Clause 2, Article 15 of Decree 104/2024/ND-CP: 01 copy.

- Within 07 working days from the date of receiving complete and valid documents, the land development funds must submit the documents to the competent authority or individual specified in Clause 1, Article 16 of Decree 104/2024/ND-CP for a decision on the capital advance. If the conditions are not met, a notice and return of documents must be made to the requesting organization.

- Based on the Decision on Capital Advance from the land development funds issued by the competent authority or individual specified in Clause 1, Article 16 of Decree 104/2024/ND-CP, the land development funds reviews the documents stipulated in Clauses 2 and 3, Article 16 of Decree 104/2024/ND-CP and is responsible for the legality of the documents, preparing transfer documents to the State Treasury or commercial banks where accounts are maintained.

No later than 01 working day, the State Treasury where the account is opened transfers the funds to the intended recipient as requested by the land development funds. Commercial banks where the accounts are maintained process the transfer orders from the land development funds to the intended recipients as regulated.

- The capital advance can be implemented either once or multiple times based on the progress and needs of each project or task. If multiple advances are needed for the same project or task, the organization receiving the advance must submit a written request and other related documents for each advance.

- The organization receiving the advance responsibilities include:

+ Using the advance to perform tasks specified in Clause 1, Article 14 of Decree 104/2024/ND-CP for the intended legal purpose and being accountable for the use of the advance as per the law. The funds cannot be used for any other purposes than those specified in Clause 1, Article 14 of Decree 104/2024/ND-CP.

+ Paying management costs of the advance from the land development funds as stipulated in Article 17 of Decree 104/2024/ND-CP.

+ Informing the competent authority or individual who issued the repayment decision to the land development funds and executing the repayment as per Article 18 of Decree 104/2024/ND-CP.

- The land development funds is responsible for checking the use of the advance from the Fund and recovering the advanced funds as regulated.

More details can be found in Decree 104/2024/ND-CP which comes into effect in Vietnam from August 1, 2024.

Decision 40/2010/QD-TTg of the Prime Minister of Vietnam regarding the issuance of the Sample Regulations on the management and use of the land development funds is no longer in effect from the date Decree 104/2024/ND-CP becomes effective.

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