Vietnam: Rules of receipt of sponsorships, contributions, and trusts of small and medium enterprises development fund

According to the Circular No. 08/2020/TT-BKHĐT of the Ministry of Planning and Investment of Vietnam, rules of receipt of sponsorships, contributions, and trusts of small and medium enterprises (SMEs) development fund are specified as follows:

- The Fund may receive sponsorships, contributions and trusts to carry out the activities as prescribed in Clause 1 Article 20 of the Law on assistance for small and medium enterprises of Vietnam and Clause 1 Article 36 of Decree No. 39/2019/ND-CP. To be specific:

+ Clause 1 Article 20 of the Law on assistance for small and medium enterprises of Vietnam:

SME development fund is a non-profit state financial fund that is not funded by the state budget and is established by the Prime Minister to:

• grant loans and sponsorships to startups and SMEs joining business clusters and value chains;

• receive and manage loans, sponsorship, aids, contributions and trusts of organizations and individuals to assist SMEs.

+ Clause 1 Article 36 of Decree No. 39/2019/ND-CP of Vietnam’s Government:

Pursuant to regulations enshrined in Vietnam's law, international treaties and agreements with other organizations and individuals, the Fund shall use borrowed funds, financing, aids, contributions, fiduciary funds and profits generated therefrom (if any) for performing the following activities:

• Supplementing funds necessary for the Fund’s operations;

• Lending funds to or providing financing for small and medium enterprises under regulations of the entrusting or sponsoring party. In default of regulations of the entrusting or sponsoring party, the Fund shall comply with regulations laid down in Section 1, Section 2 and Section 3 of Chapter III of Decree No. 39/2019/ND-CP;

• Performing activities aimed at supporting capacity enhancement for small and medium enterprises as provided in Section 4 of Chapter III of Decree No. 39/2019/ND-CP.

- The receipt of sponsorships, contributions, and trusts by the Fund shall comply with regulations and laws of Vietnam and international treaties to which Vietnam is a signatory. The receipt of trusts and contributions shall ensure the repayment capacity of the Fund.

- The sponsorships, contributions, trusts to the Fund shall be made in a voluntary, public, and transparent manner.

- The Fund may not receive any sponsorships, contributions, trusts that cause harm to national interests, security and defense, violations of the law on anti-corruption, money laundering, terrorist financing and illegal activities.

- The sponsors, contributors, and trustors shall ensure and take personal liability for origin and legality of the sponsorships, contributions, trusts.

View more details at the Circular No. 08/2020/TT-BKHĐT of the Ministry of Planning and Investment of Vietnam, effective from January 15, 2021.

Thuy Tram

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