Regulations on sources of assets of cooperatives in Vietnam

Regulations on sources of assets of cooperatives in Vietnam (Internet image)

1. Sources of assets of cooperatives in Vietnam

According to Clause 1, Article 48 of the Cooperative Law 2012, the assets of a cooperative or union of cooperatives may be formed from the following sources:

(1) Contributed capital of members or member cooperatives:

+ Contributed capital is in Vietnam dong and other kinds of asset convertible into Vietnam dong, including foreign currency, objects, value of land use rights, intellectual property rights and valuable papers at the time of contribution.

= The value of other kinds of assets contributed as capital is determined according to the principles of agreement between the cooperative or union of cooperatives and the contributing member or member cooperative or through an appraisal organization.

(Article 42 of the Cooperative Law 2012)

(2) Mobilized capital of members or member cooperatives and other mobilized capital:

+ Cooperatives or unions of cooperatives shall give priority to mobilization of capital from their members or member cooperatives to invest in and expand business and production on the basis of agreement with their members or member cooperatives.

= In case the capital mobilized from their members or member cooperatives has not met the requirements, cooperatives or unions of cooperatives may mobilize capital from other sources as prescribed by law and their charter.

(Clause 1, Article 44 of the Cooperative Law 2012)

(3) Capital and assets formed during the operation of the cooperative or union of cooperatives;

(4) Subsidies and financial assistance of the State and other offered and donated amounts:

- Cooperatives or unions of cooperatives may receive subsidies and financial assistance from the State and organizations and individuals at home and abroad under agreement as prescribed by law.

- The management of subsidies and financial assistance of the State must be implemented as follows:

= Non-refundable subsidies and financial assistance of the State must be included in the undivided assets of cooperatives or unions of cooperatives;

= Refundable financial assistance of the State must be included in the debts of cooperatives or unions of cooperatives.

- The management and use of foreign-involved subsidies and financial assistance must comply with the provisions of law and the treaties to which the Socialist Republic of Vietnam is a contracting party.

(Clause 2, 3, 4, Article 44 of the Cooperative Law 2012)

2. Regulations on undivided assets of the cooperative in Vietnam

Pursuant to Clause 4, Article 4 of the Cooperative Law 2012, undivided asset means a part of assets of a cooperative or union of cooperatives not divided to the members or member cooperatives upon termination of the status of member or member cooperative or when the cooperative or union of cooperatives terminates its operation.

According to Article 48 of the Cooperative Law 2012, undivided assets of the cooperative or union of cooperatives include:

- Use rights of land allocated or leased by the State;

- Non-refundable subsidies and financial assistance of the State; offered and donated amounts treated as undivided assets as agreed upon;

- Annual deductions from the development investment fund which are included in the undivided assets under decisions of the general meeting of members;

- Other capital and assets being undivided assets as prescribed by the charter.

Van Trong

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