What projects are the Local Development Investment Funds entrusted with in Vietnam?

What projects are the Local Development Investment Funds entrusted with in Vietnam? (Internet image) 

Article 23 of Decree 138/2007/ND-CP stipulates that Local Development Investment Funds in Vietnam are entrusted with the following:

- Local Development Investment Funds may be entrusted to manage investment capital, provide investment loans and recover debts, and allocate investment capital for works or projects funded with the state budget, by the Vietnam Development Bank, enterprises, and domestic and foreign organizations and individuals under entrustment acceptance contracts between local Development Investment Funds and entrusting organizations or individuals.

- Local Development Investment Funds may be entrusted to manage the operation of credit guarantee funds for small- and medium-sized enterprises, and housing development funds set up by provincial-level Peoples Committees.

- Local Development Investment Funds may issue local administration bonds under authorization of provincial-level Peoples Committees in order to raise capital for local budgets in accordance with law.

Note: Local Development Investment Funds are entitled to entrustment acceptance service charges. Specific charge levels shall be agreed and written in entrustment acceptance contracts.

Note: Local development investment funds are entitled to entrustment service fees. The specific fee is agreed upon and stated in the entrustment contract.

In addition, Local Development Investment Funds in Vietnam may entrust credit institutions and the Vietnam Development Bank to provide loans and recover debts for projects loaned by local Development Investment Funds under entrustment contracts between local Development Investment Funds and entrusted organizations. Entrusted organizations are entitled to entrustment service charges. Specific charge levels shall be agreed and written in entrustment contracts.

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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