Vietnam: Which assets shall be contributed to social and charity funds?

According to Article 14 of Decree No. 93/2019/ND-CP of Vietnam’s Government, assets contributed to a fund include:

- Amounts of money in Vietnam dong;

- Assets converted into Vietnam dong (including objects, foreign currencies, financial instruments and other property rights) of Vietnamese citizens and organizations that are the fund's founding members and those contributed by foreign citizens and organizations to establish the fund with Vietnamese citizens and organizations. Assets which are offices, equipment or technologies must be valued by a duly established valuation organization. Such valuation must be carried out within the last 06 months before the date of submission of application for establishment license;

- If other assets, excluding the amounts of money in Vietnam dong, are contributed to the fund, the amounts of money in Vietnam dong must account for at least 50% of total value of the fund's assets.

Moreover, if a fund is established by Vietnamese citizens and/or organizations, the value of contributed assets converted into Vietnam dong must meet the following limits:

- VND 6,500,000,000 (six billion five hundred million), if the fund operates nationwide or in more than one province;

- VND 1,300,000,000 (one billion three hundred million), if the fund operates within a province;

- VND 130,000,000 (one hundred thirty million), if the fund operates within a district;

- VND 25,000,000 (twenty-five million), if the fund operates within a commune.

If a fund is established by asset contribution by foreign citizens and/or organizations and Vietnamese citizens and/or organizations, the value of contributed assets converted into Vietnam dong must meet the following limits:

- VND 8,700,000,000 (eight billion seven hundred million), if the fund operates nationwide or in more than one province;

- VND 3,700,000,000 (three billion seven hundred million), if the fund operates within a province;

- VND 1,200,000,000 (one billion two hundred million), if the fund operates within a district;

- VND 620,000,000 (six hundred twenty million), if the fund operates within a commune.

It should be noted that the ownership of assets contributed to a fund must be transferred to that fund within 45 business days from the date on which the fund is granted an establishment license and has its charter acknowledged. Assets contributed to a fund must not be under any disputes or used for fulfillment of any financial liabilities.

View full text in Decree No. 93/2019/ND-CP of Vietnam’s Government, which takes effect from January 15, 2020.

Thu Ba

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