Vietnam: Conditions for operation of charity funds

A fund may operate upon its satisfaction of the conditions listed in Article 24 of Decree No. 93/2019/ND-CP of Vietnam’s Government, specifically as follows:

- The fund has an establishment license and acknowledgement of the fund's charter issued by a competent authority as prescribed in Article 18 hereof.

- It has made an announcement of establishment as prescribed in Article 22 hereof.

- It has obtained from the bank where its account is opened a written certification of the availability of money amounts contributed by its founding members in its account. For other assets, it has completed procedures for transfer of ownership of assets as prescribed in Clauses 2, 3 Article 23 hereof.

- The competent authority prescribed in Article 18 hereof has issued a decision on certification of the fund’s eligibility for operation and members of the Fund Management Council.

Besides, Decree No. 93/2019/ND-CP also specifies that after completing all the procedures specified in Clause 2 and Clause 3 Article 24 hereof, the Fund Management Council shall prepare and send an application to the competent authority as prescribed in Article 18 hereof for certification of the fund’s eligibility for operation and members of the Fund Management Council. An application for certification of the fund’s eligibility for operation must be sent to the competent authority within 45 business days after obtaining its establishment license.

An application for certification of the fund’s eligibility for operation and members of its Management Council includes:

- Documents proving the fund’s compliance with Clause 2 and Clause 3 Article 24 hereof;

- A list indicating names, addresses and telephone numbers of members of the Fund Management Council, enclosed with their CVs and criminal records. The CV of a foreign member must be certified by a competent authority of the country of his/her citizenship;

- Documents on the election of members of and other positions in the Fund Management Council.

Within 30 business days from the receipt of a sufficient and valid application, the competent authority shall issue a decision to certify the fund’s eligibility for operation and members of the Fund Management Council. If an application is refused, it shall issue a written response clearly stating reasons for such refusal.

In case of changing members of or adding new members to the Fund Management Council during its operation, the fund shall send to the competent authority as prescribed in Article 18 hereof an application for certification of new members of the Fund Management Council, clearly stating the reasons for such change or addition of members (enclosed with a list indicating names, addresses and telephone numbers of new members, their CVs and criminal records).

Other regulations can be found in Decree No. 93/2019/ND-CP of Vietnam’s Government, which takes effect from January 15, 2020 and replaces Decree No. 30/2012/ND-CP.

Thu Ba

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