Policies for assistance in financial consultancy and risk assessment for cooperatives in Vietnam starting from November 1, 2024

Policies for assistance in financial consultancy and risk assessment for cooperatives in Vietnam starting from November 1, 2024 (Image from the Internet)

On September 13, 2024, the Government of Vietnam issued Decree 113/2024/ND-CP guiding the Cooperatives Law 2023.

1. Policies for assistance in financial consultancy and risk assessment for cooperatives in Vietnam starting from November 1, 2024

As stipulated in Article 15 of Decree 113/2024/ND-CP, the policies for assistance in financial consultancy and risk assessment for cooperatives in Vietnam are as follows:

- Beneficiaries:

+ Cooperative groups, cooperatives, unions of cooperatives;

+ Representative organizations of cooperative groups, cooperatives, unions of cooperatives; and the Vietnam Cooperative Alliance system.

- Support Content:

+ Support for the auditing costs incurred by cooperatives that hire independent audit organizations to audit their financial reports of the previous year in cases where the cooperatives are micro and small-sized and receive state support with a budget of 3 billion VND or more. The size of the cooperatives is determined at the time of submitting the support request dossier according to the classification criteria of cooperatives stipulated in clause 2, Article 4, Decree 113/2024/ND-CP;

+ The state supports the budget for the representative organizations of cooperative groups, cooperatives, unions of cooperatives, and the Vietnam Cooperative Alliance system in performing: risk assessments, financial advisory; internal control advisory, and internal audit for cooperative groups, cooperatives, unions of cooperatives through projects and programs approved by competent authorities in accordance with the law on the state budget.

- State budget support:

+ The state budget supports up to 100% of the costs of implementing the policy stipulated in Article 15 of Decree 113/2024/ND-CP;

+ The specific support budget for each policy is determined by ministries, central agencies, and People's Councils at all levels, or submitted for review and approval by the competent authorities in line with priority directions and the capability of balancing resources at each period and legal provisions.

2. Policies for assistance in agricultural activities of cooperatives in Vietnam starting from November 1, 2024

The policies for assistance in agricultural activities of cooperatives in Vietnam are stipulated in Article 16 of Decree 113/2024/ND-CP as follows;

- Beneficiaries: cooperative groups, cooperatives, unions of cooperatives operating in the agricultural sector.

- Support Content: In addition to enjoying the support policies stipulated in Articles 7, 8, 9, 10, 11, 12, 13, 14, and 15 of Decree 113/2024/ND-CP, cooperative groups, cooperatives, unions of cooperatives operating in the agricultural sector are also entitled to the following support:

+ Support for capital, breeds, and equipment for applying science and technology when cooperative groups, cooperatives, unions of cooperatives transition to sustainable production, organic agriculture, and adaptation to climate change through approved projects and programs in line with budget management levels;

+ Support for the cost of constructing infrastructure for raw material regions when cooperative groups, cooperatives, unions of cooperatives contribute capital through land use rights or rent land, land with water surfaces from organizations, households, or individuals to create centralized agricultural production raw material regions: constructing irrigation works, inter-field traffic in the fields of crop production, forestry, salt production (including sluices, pumping stations, wells, pipelines, elevating dams, canals, water tanks, structures on canals, and various types of dykes, primary water supply systems for efficient irrigation, principal traffic roads, firebreak paths, forestry roads); constructing infrastructure facilities for aquaculture and fisheries including primary water supply and drainage systems (ponds, reservoirs, sluices, canals, pipelines for water supply and sewage, pumping stations), embankments, barriers, traffic roads, common wastewater treatment structures for aquaculture areas; marking systems, boundary warning lights for farming areas, cage anchors, upgrading, and developing focused fish and marine farming cages; constructing infrastructure facilities for focused livestock farming areas, including traffic roads, common wastewater treatment structures for concentrated livestock farming areas, and farm system.

- The funding source for support from the state budget, the support level, the process of implementing public investment projects, the support method, and the post-investment management mechanism for the infrastructure support projects stipulated at point b, clause 2, Article 16 of Decree 113/2024/ND-CP are implemented in accordance with the provisions of clauses 3, 4, 5, 6, 7, 8, 9, 10, and 11 of Article 13 of Decree 113/2024/ND-CP.

More details can be found in Decree 113/2024/ND-CP which comes into effect in Vietnam on January 1, 2024.

Repealing Decree 193/2013/ND-CP of the Government of Vietnam detailing a number of articles of the Cooperatives Law 2012.

Repealing Decree 107/2017/ND-CP of the Government of Vietnam amending and supplementing a number of articles of Decree 193/2013/ND-CP of the Government of Vietnam detailing a number of articles of the Cooperatives Law 2012.

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