Vietnam: 04 criterion for the local investment and development fund to evaluate its performance annually

According to Article 42 of the Decree No. 147/2020/NĐ-CP of the Vietnam Government, the Provincial People's Committee is responsible for monitoring and comprehensively evaluating the performance of the local investment and development fund. Thus, annually, the local investment and development fund evaluates its performance according to the following criterion:

- Criteria 1: Revenue and other incomes.

- Criteria 2: Income - expenditure difference and ratio of income - expenditure on equity.

- Criteria 3: Ratio of bad debts to total loans (including direct loans and loan syndications) and ratio of bad debts to total investment capital.

- Criteria 4: Comply with the law on investment, management and use of capital, obligations to the state budget, regulations on financial reporting and reporting to carry out financial supervision.

Concurrently, the above-mentioned criterion are determined and calculated on the basis of audited annual financial statements and periodical reports as prescribed by law. When calculating these criterion, the following factors shall be considered and excluded:

- Due to natural disasters, fires, epidemics, wars and other force majeure causes.

- Due to the State's policy adjustment or market fluctuations, which greatly affects the Fund's revenue and operation.

- Due to the Fund's implementation of socio-economic objectives under decisions of competent authorities.

- The State freezes, rescinds and cancels debts for borrowers; adjust the Fund's minimum lending interest rate.

Besides, evaluate the performance of the local investment and development fund manager according to the following criterias:

- Results of the implementation of assigned goals and tasks.

- Results of evaluation of the performance of the local investment and development fund.

- The observance of the Party's lines, guidelines and policies and the State's laws; the implementation of the Charter on organization and operation and the operation regulations of the local investment and development fund.

More details at the Decree No. 147/2020/NĐ-CP of the Vietnam Government, effective from February 05, 2021.

Ty Na

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