Vietnam: Operational principles of the Fund for assistance to foreign affairs for the economy

Vietnam: Operational principles of the Fund for assistance to foreign affairs for the economy (Illustrative image)

According to Article 2 of Circular 42/2011/TT-BTC, the operational principles of the Fund for assistance to foreign affairs for the economy in Vietnam are prescribed as follows:

- The Fund operates on a non-profit basis. The Fund has a legal personality, its own accounts, and seals. The Fund can open VND and foreign currency accounts at the State Treasury or at domestic commercial banks to receive and use such funds provided by the state budget and contributions made by individuals and organizations both inside and outside the country.

- The Fund supports economic-diplomatic activities carried out by overseas representative missions of the Socialist Republic of Vietnam or by domestic agencies and units under the Ministry of Foreign Affairs to assist overseas representative missions of the Socialist Republic of Vietnam in implementing economic diplomatic activities (hereinafter collectively referred to as the Fund users).

- The Fund can only be used for activities that meet the requirements of expanding and promoting foreign economic relations, protecting state interests, protecting the legitimate economic rights and interests of Vietnamese organizations and individuals according to the tasks and economic-diplomatic projects approved and funded by competent authorities; and may not be used for regular professional activities as per the functions and tasks of overseas representative missions of the Socialist Republic of Vietnam and domestic agencies and units under the Ministry of Foreign Affairs.

Additionally, the financial sources of the Fund include:

- Funds allocated by the state budget: The state budget provides an initial capital of sixteen billion (16 billion) VND and funds annually allocated according to the budget estimates approved by competent authorities.

+ Revenues from the Fund's activities:

+ Money and assets voluntarily contributed and sponsored by organizations and individuals inside and outside the country, under the provisions of the law. For contributions made through overseas representative missions of the Socialist Republic of Vietnam, the funds can be brought into the temporary holding account of those offices or the Office of the Fund.

+ Contributions from domestic and foreign enterprises for services provided by the Fund users such as verification, partner appraisal, assistance in contract conclusion, information provision, consultancy, and other services.

+ Interest earned from deposit accounts, and other legitimate revenues (if any).

More details can be found in Circular 42/2011/TT-BTC effective from May 10, 2011.

Thuy Tram

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