Regulations on the establishment of a new Support Fund for Farmers as of August 8, 2023 in Vietnam

On June 24, 2023, the Government issued Decree 37/2023/ND-CP on the establishment, organization, and operation of the Farmer Support Fund in Vietnam (effective as of August 8, 2023).

According to Decree 37/2023/ND-CP, the regulations on the establishment of a new Farmer Support Fund in Vietnam are as follows:

Conditions for establishing a new Support Fund for Farmers in Vietnam

- Conditions for the establishment of a new Support Fund for Farmers in localities that have not yet established a Support Fund for Farmers before the effective date of this Decree include:

+ There is a need to establish a Support Fund for Farmers;

+ Capable of allocating local budgets to provide charter capital for the Support Fund for Farmers;

+ Having the ability to arrange personnel who fully meet the criteria and conditions specified in Articles 10, 11, and 12 of this Decree;

- The process and authority to decide on the establishment of a new Support Fund for Farmers shall be the same as the process of consolidating the organization and operation of the established Support Fund for Farmers specified in Clause 2, Article 6 of this Decree.

- Basic contents of the new establishment scheme of the Support Fund for Farmers:

+ Objectives, necessity, and feasibility of the establishment of the Support Fund for Farmers, the need to support local farmers; scale, scope, content of activities, and impacts of the establishment of the Support Fund for Farmers on local socio-economic development;

+ The operation plan of the Support Fund for Farmers proves that the Fund has independent financial capacity; having revenue sources and spending tasks that do not coincide with state budget revenues and expenditures;

+ The plan for operating capital of the Support Fund for Farmers in the next 5 years includes: The level of charter capital provided by the state budget, the ability to mobilize capital from outside the budget;

+ Draft Charter on organization and operation of the Support Fund for Farmers;

+ Detailed explanation of the organizational structure and operational apparatus of the Support Fund for Farmers;

+ The expected list of personnel includes: Chairman, members of the Management Board; Control Board; The director and other key personnel of the Support Fund for Farmers must meet the criteria and conditions prescribed in this Decree;

+ The proposed plan for operation, management, and finance of the Support Fund for Farmers within the next 5 years from the time of formulation of the Scheme on strengthening the organization and operation of the Support Fund for Farmers.

Regulations on the establishment of a new Support Fund for Farmers as of August 8, 2023 in Vietnam (Internet image)

Organization and operation charter of the Support Fund for Farmers in Vietnam

The organization and operation charter of the Support Fund for Farmers in Vietnam include the following basic contents:

- Name and location of the head office;

- Legal status, legal status, legal representative;

- Principles and scope of activities;

- Authorized capital;

- Organizational structure and management;

- Mandates;

- Functions, duties, and powers of the Management Board, Executive Board, and Supervisory Board;

- Standards, conditions, planning, and appointment of managers;

- Labor recruitment, planning, and appointment of other leadership positions;

- Accounting, finance, and auditing regimes;

- The process of amending and supplementing the Charter of organization and operation;

- The relationship and responsibilities between the Support Fund for Farmers and state management agencies and borrowers of the Support Fund for Farmers;

- Handling disputes, separation, merger, and dissolution;

- Other contents as required by management.

The Support Fund for Farmers's Management Council shall draw up a draft of the Organization and Operational Charter of the Support Fund for Farmers and submit it to the Standing Board of the Farmers' Association at the same level for approval on the basis of the Model Charter as prescribed.

The Standing Committee of the Central Committee of the Vietnam Farmers' Union promulgates the Model Organization and Operation Charter applicable to the entire Support Fund for Farmers system.

Mai Thanh Loi

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE