Rules of receipt of sponsorships of small and medium enterprises development fund in Vietnam

According to Article 3 of the Circular No. 08/2020/TT-BKHĐT of the Ministry of Planning and Investment of Vietnam, rules and objectives of receipt of sponsorships, contributions, and trusts from domestic organizations and individuals and repayable contributions and trusts from foreign organizations and individuals to the SMEs development fund are specified as follows:

- The Fund may receive sponsorships, contributions and trusts to carry out the activities as prescribed in Clause 1 Article 20 of the Law on assistance for small and medium enterprises of Vietnam and Clause 1 Article 36 of Decree No. 39/2019/ND-CP.

- The receipt of sponsorships, contributions, and trusts by the Fund shall comply with regulations and laws of Vietnam and international treaties to which Vietnam is a signatory. The receipt of trusts and contributions shall ensure the repayment capacity of the Fund.

- The sponsorships, contributions, trusts to the Fund shall be made in a voluntary, public, and transparent manner.

- The Fund may not receive any sponsorships, contributions, trusts that cause harm to national interests, security and defense, violations of the law on anti-corruption, money laundering, terrorist financing and illegal activities.

- The sponsors, contributors, and trustors shall ensure and take personal liability for origin and legality of the sponsorships, contributions, trusts.

Moreover, Article 4 of Circular No. 08/2020/TT-BKHĐT of the Ministry of Planning and Investment of Vietnam also stipulates methods of receipt of sponsorships, contributions, and trusts, including:

- 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.

- 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.

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

- 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.

Le Vy

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