Cases of charity funds having their establishment licenses revoked in Vietnam

Cases of charity funds having their establishment licenses revoked in Vietnam (Internet image) 

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

1. Cases of charity funds having their establishment licenses revoked in Vietnam

According to Clause 1, Article 19 of Decree 93/2019/ND-CP, a fund shall have its establishment license revoked in the following cases:

- The decision on full division, merger, consolidation or dissolution of the fund comes into force;

- The fund fails to comply with Clause 4 Article 14 of Decree 93/2019/ND-CP after obtaining the establishment license and acknowledgment of the fund’s charter, as a result, its establishment license and acknowledgement of the fund's charter are invalidated.

If the fund has not yet complied with Clause 4 Article 14 of Decree 93/2019/ND-CP because of objective reasons, within 10 business days before the prescribed deadline, the fund founding board shall send a written request for extension to the competent authority that has granted its establishment license and acknowledgement of the fund's charter.

Only one extension shall be allowed for a period not exceeding 20 business days. Upon the expiration of the extension period, if the fund still fails to comply with Clause 4 Article 14 of Decree 93/2019/ND-CP, its establishment license and acknowledgement of the fund's charter shall cease to be effective.

2. Regulations on assets contributed to funds in Vietnam

Regulations on assets contributed to funds according to Article 14 of Decree 93/2019/ND-CP are as follows:

- Assets contributed to a fund include:

+ Amounts of money in Vietnam dong;

+ Assets converted into Vietnam dong (including objects, foreign currencies, financial instruments and other property rights) of Vietnamese citizens and organizations that are the fund's founding members and those contributed by foreign citizens and organizations to establish the fund with Vietnamese citizens and organizations.

Assets which are offices, equipment or technologies must be valued by a duly established valuation organization. Such valuation must be carried out within the last 06 months before the date of submission of application for establishment license;

+ If other assets, excluding the amounts of money in Vietnam dong, are contributed to the fund, the amounts of money in Vietnam dong must be accounted for at least 50% of total value of the fund's assets.

- If a fund is established by Vietnamese citizens and/or organizations, the value of contributed assets converted into Vietnam dong must meet the following limits:

+ VND 6,500,000,000 (six billion five hundred million), if the fund operates nationwide or in more than one province;

+ VND 1,300,000,000 (one billion three hundred million), if the fund operates within a province;

+ VND 130,000,000 (one hundred thirty million), if the fund operates within a district;

+ VND 25,000,000 (twenty-five million), if the fund operates within a commune.

- If a fund is established by asset contribution by foreign citizens and/or organizations and Vietnamese citizens and/or organizations, the value of contributed assets converted into Vietnam dong must meet the following limits:

+ VND 8,700,000,000 (eight billion seven hundred million), if the fund operates nationwide or in more than one province;

+ VND 3,700,000,000 (three billion seven hundred million), if the fund operates within a province;

+ VND 1,200,000,000 (one billion two hundred million), if the fund operates within a district;

+ VND 620,000,000 (six hundred twenty million), if the fund operates within a commune.

- The ownership of assets contributed to a fund must be transferred to that fund within 45 business days from the date on which the fund is granted an establishment license and has its charter acknowledged. Assets contributed to a fund must not be under any disputes or used for fulfillment of any financial liabilities.

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