Vietnam: How are the activities of the local development investment fund Management Council regulated?

According to Article 10 of the Decree No. 147/2020/NĐ-CP of the Vietnam Government, the Management Board of the local development investment fund has a maximum of 5 people, including the Chairman, Vice Chairman and members.

Thus, the working regime of the Management Board is specified in the Fund's Charter of organization and operation to ensure the following contents:

- Meetings of the Fund Management Board are only effective when having at least 2/3 of the members attend. In case the meeting is not held, the collection of opinions of the members of the Management Board shall be done in documents.

- Conclusions of the Fund Management Board are expressed in resolutions and decisions of the Management Board.

- The Fund Management Board decides on issues by majority vote, each member of the Management Board has one vote with equal voting rights. Resolutions and decisions of the Management Board take effect when more than 50% of the total number of members of the Fund Management Board vote or collect written opinions in agreement. In case the number of votes is equal, the final decision belongs to the side with the opinion of the Chairman of the Fund Management Council or the person presiding over the meeting of the Management Board.

Note: The term of office of the Fund Management Board shall not exceed 5 years. The Director of the local development investment fund may concurrently be the Vice Chairman or a member of the Fund Management Council. Other members of the Management Board may act concurrently but may not concurrently hold any other management positions at the 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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