03 operating expenses of the Fund to Support Poor Women in Vietnam

03 operating expenses of the Fund to Support Poor Women in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

Operating principles of the Fund to Support Poor Women in Vietnam

The activities of the Fund to Support Poor Women must comply with the following principles:

- The Fund's activities are under the direction, management, and supervision of the Central Presidium of the Vietnam Women's Union, the Ministry of Finance, and competent agencies according to the provisions of law.

- The Fund operates independently, has legal status, has its own account and seal, and operates in compliance with current laws. The fund can open accounts at the State Treasury and State credit institutions.

- The Fund operates not for profit, the Fund's activities are not subject to value added tax or corporate income tax.

- The Fund operates according to the principles of financial autonomy and capital preservation.

- The Women's Voluntary Mobilization Fund supports and helps poor women develop production, especially in remote and difficult areas.

- The Fund is not allowed to mobilize capital and borrow capital in the form of savings deposits (except for women's savings deposits and members who voluntarily participate in women's loan and savings groups), issue promissory notes, bonds, commercial loans, etc., such as from financial and credit institutions.

- The Fund manages and uses capital in accordance with the Fund's operating objectives and the provisions of this Regulation, promptly repaying capital to organizations and individuals sponsoring capital in the form of repayment.

- The Fund Director is the legal representative of the Fund and is responsible before the law for the Fund's operations.

(Article 3 of the Regulations promulgated together with Decision 66/2007/QD-BTC in 2007)

03 operating expenses of the Fund to Support Poor Women in Vietnam

Operating expenses of the Fund to Support Poor Women include:

(1) Professional costs include:

- Paying fees to domestic and foreign organizations and individuals that fund the fund.

- Interest payment: Interest must be paid on capital funds received as grants or entrusted by domestic and foreign organizations and individuals.

- Other costs (if any).

(2) Management costs:

- Salary payments to Fund officials (for officials not on the payroll of the Women's Union at all levels). Salary payments are decided by the Central Presidium of the Vietnam Women's Union.

- Monthly allowances for officials of the Women's Union assigned to manage and administer the Fund. Based on actual revenue sources, the Central Presidium of the Vietnam Women's Union shall specifically stipulate appropriate allowance spending levels. The maximum expenditure is not more than 0.5 times the monthly salary (paid by the Women's Union) for Union officials assigned to manage and administer the Fund.

- Social insurance, health insurance, and other payments based on salary according to State regulations (for officials not on the payroll of the Women's Union at all levels).

- Expenses for business trips according to current State regulations.

- Other necessary and reasonable expenses, such as professional training, conferences, guest reception, etc.

(3) Expenses for setting up risk reserve fund:

- Deduction rate of 0.05% on the loan balance at the end of each quarter.

- The maximum risk reserve fund is equal to 10% of outstanding debt as of December 31 every year; the excess (if any) is supplemented with operating capital.

(Article 14 of the Regulations promulgated together with Decision 66/2007/QD-BTC in 2007)

Operating capital sources of the Fund to Support Poor Women in Vietnam

Operating capital of the Fund to Support Poor Women includes:

- Charter capital of 40 billion VND allocated by the State Budget.

- Capital mobilizes women, organizations, and individuals at home and abroad to support and sponsor loans without interest or at low interest rates.

- Entrusted capital from the State and domestic and foreign organizations to support women in hunger eradication and poverty reduction.

- Self-additional capital every year.

(Article 4 of the Regulations promulgated together with Decision 66/2007/QD-BTC in 2007)

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