Vietnam: Sources of operation capital of the Peasant Assistance Fund

According to Article 3 of Circular No. 69/2013/TT-BTC of the Ministry of Finance of Vietnam, operation capital of the Peasant Assistance Fund shall be formed from the following sources:

- Equity:

+ Capital allocated by the State (for the Central Peasant Assistance Fund shall be allocated by the central state budget; for the provincial – and district – level Peasant Assistance Funds shall be allocated by the provincial – and district – level budget);

+ Capital mobilized, financed from domestic and foreign organizations and individuals for agricultural and rural development.

+ Annually self-supplemented capital.

- Capital entrusted by the State or provided by the domestic and foreign organizations as financial support for agricultural and rural development.

- Other legal capital sources as prescribed by law.

The Peasant Assistance Fund must not mobilize and borrow capital in forms of savings, promissory notes, bills, bonds, commercial loans of organizations, and individuals like the operation of credit institutions.

Also according to Circular No. 69/2013/TT-BTC, the Peasant Assistance Fund shall be entitled to collect fees for the capital amounts lent as assistance to peasants so as to cover necessary expenses for activities of the Peasant Assistance Fund. The fee levels shall ensure the defrayal of necessary expenses for the activities of Peasant Assistance Fund, preserve its capital and ensure target of assisting peasants. The Peasant Assistance Fund must not collect any additional charge other than the mentioned-above fee from loans as assistance.

The Executive Board of the Vietnam Peasants Association’s Central Committee shall issue fee table of loans as assistance for unified implementation by the Peasant Assistance Funds.

View relevant provisions at Circular No. 69/2013/TT-BTC of the Ministry of Finance of Vietnam, effective from July 15, 2013.

Thu Ba

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