What are the regulations on procedures for setting up a local Development Investment Fund in Vietnam?

What are the regulations on procedures for setting up a local Development Investment Fund in Vietnam? (Internet image)

Specifically, Article 31 of Decree 138/2007/ND-CP stipulates that the provincial-level Peoples Committee in Vietnam shall elaborate a scheme on setting up a local Development Investment Fund and submit it to the provincial-level Peoples Council for approval. Such a scheme comprises: 

- The provincial-level Peoples Committees report on the necessity to set up the Fund; operation scale and scope, and organizational structure of the Fund;

- The provincial-level Peoples Committees plan to allocate charter capital for the Fund;

- A draft charter of organization and operation of the Fund which is compliant with the model charter on organization and operation of local Development Investment Funds, promulgated by the Ministry of Finance;

- A tentative operation plan for the first 2 (two) years, attached with a tentative list of investment projects at the time of approval;

- Written explanations on the Funds organizational and operational apparatuses, as required in Clauses 3, 4 and 5, Article 30 of this Decree.

The provincial-level Peoples Committee shall decide to set up, and approve the organization and operation charter of, a local Development Investment Fund.

Within 30 days after issuing a decision to set up a local Development Investment Fund, the provincial-level Peoples Committee shall report such setting up to the Ministry of Finance and publicize it on local and central mass media.

More details can be found in Decree 138/2007/ND-CP which comes into force from September 19, 2007.

Ty Na

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