Vietnam: Process of dissolution of the local investment and development fund

According to Article 45 of the Decree No. 147/2020/NĐ-CP of the Vietnam Government, the process of dissolution of the local investment and development fund is specified as follows:

- The Dissolution Council shall develop a dissolution plan, report it to the People's Committee of the province and submit it to the People's Council for approval. The dissolution plan includes the following contents:

+ Evaluation of an independent auditing organization on the financial situation and determination of the actual value of the charter capital of the local investment and development fund, except for the case that the fund has had independent audited financial statements within the 06 months before the dissolution decision.

+ Plan for liquidation of assets, handling of charter capital, on-going loans and investments, and payment of debts of the local investment and development fund.

+ Plan for transferring the entrusted amounts of the entrusting organizations.

+ Plan to handle obligations arising from the labor contract.

+ Terms of termination of all rights and interests of the local investment and development fund.

- After the dissolution plan is approved by the People's Council of the province, the People's Committee of the province shall decide to dissolve the local investment and development fund, and at the same time report it to the Ministry of Finance of Vietnam and announce the dissolution on local and central mass media.

- Within 10 working days from the effective date of the dissolution decision:

+ The local investment and development fund is responsible for implementing the provisions of Article 46 of the Decree No. 147/2020/NĐ-CP.

+ The Dissolution Council is responsible for implementing the provisions of Article 47 of the Decree No. 147/2020/NĐ-CP.

- The Dissolution Council automatically terminates its operation when the local investment and development fund has completed the dissolution procedures as prescribed in this Decree and relevant laws.

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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