Vietnam: Provincial People’s Committee is responsible for approving the 5-year operation plan of the local investment and development fund

According to Article 49 of the Decree No. 147/2020/NĐ-CP of the Vietnam Government, responsibilities of the Provincial People's Committee in the organization and operation of the local investment and development fund are as follows:

1. To perform the function of representing the state owner at the local investment and development fund according to the provisions of this Decree and the Fund's charter on organization and operation.

2. Formulate a scheme on establishment of a local investment and development fund and submit it to the People's Council of the province for approval in accordance with the provisions of this Decree.

3. To decide on the establishment, restructuring and dissolution of the local investment and development fund in accordance with the provisions of this Decree and relevant laws.

4. To submit to the People's Councils of provinces for approval the plan on granting and supplementing charter capital from the state budget; allocate sources to provide and supplement charter capital for the local investment and development fund according to the plan approved by the People's Council.

5. Approve the operation charter of the local investment and development fund or approve the amended and supplemented charter at the request of the Fund Management Board.

6. To decide on the organizational model of the local investment and development fund and the number of members of the Fund Management Board.

7. Approving the organizational structure of the local investment and development fund at the request of the Fund Management Board.

8. To promulgate the list of investment and lending sectors of the local investment and development fund according to the provisions of Article 16 of this Decree after it is approved by the People's Council of the province.

9. Get approval for the local investment and development fund's regulations on risk handling as prescribed in Article 30 of this Decree.

10. To decide on the minimum lending interest rate of the local investment and development fund in each period according to the provisions of Article 25 of this Decree.

11. To decide on investment and lending approval according to the competence specified in this Decree.

12. To manage, inspect and supervise comprehensively the operation and finance of the local investment and development fund.

13. Approve the 5-year operation plan and annual financial plan of the local investment and development fund.

14. Approve financial statements, distribute income and expenditure differences, and set aside annual funds of the local investment and development fund.

15. Perform other duties as prescribed by law.

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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