Conditions for advances from the land development funds in Vietnam

Conditions for advances from the land development funds in Vietnam (Image from the Internet)

1. Conditions for advances from the land development funds in Vietnam

The conditions for advances from the land development funds in Vietnam as stipulated in Clause 2, Article 15 of Decree 104/2024/ND-CP include:

- A written request for advances from the organization eligible for advances.

- Inclusion in the advances Plan from the land development funds approved by the competent authority.

- The project or task has been approved or assigned by the competent authority

.- A plan for repaying the withdrawn capital.

- The working capital of the Fund at the time of advances meets the advances requirements.

2. Sources of working capital of the land development funds in Vietnam

Sources of working capital of the land development funds in Vietnam as stipulated in Article 13 of Decree 104/2024/ND-CP are as follows:

- The working capital of the land development funds includes:

+ Charter capital

The charter capital of the land development funds is allocated from the local development investment budget and from the surplus revenue over expenditure (if any) of the land development funds after allocating to reserves and fulfilling financial obligations to the State as prescribed by law. Based on actual conditions and the ability to balance the local budget, the provincial People's Committee shall submit to the provincial People's Council for decision the initial charter capital, and supplementary charter capital for the land development funds.

+ Other legally mobilized capital according to the law, including: Aid, sponsorship, support from international organizations, domestic and foreign organizations, and individuals according to aid or sponsorship programs or projects, and other lawful sources as prescribed.

- The allocation of charter capital to the land development funds is implemented according to the provisions of public investment law and state budget law applicable to off-budget state financial funds.

- The working capital of the land development funds is deposited at the provincial State Treasury and commercial banks with state-controlled capital in the area to ensure safety and effectiveness, as stipulated in the Charter of organization and activities of the land development funds.

The land development funds opens separate accounts at the provincial State Treasury, and payment accounts at commercial banks with state-controlled capital in the area to manage the charter capital of the Fund. The charter capital of the Fund is only used to fulfill the task of advances and ensure the repayment of withdrawn capital as stipulated in Decree 104/2024/ND-CP.

3. Regulations on the entrustment activities of the land development funds in Vietnam

Regulations on the entrusted management activities of the land development funds as stipulated in Article 19 of Decree 104/2024/ND-CP are as follows:

- The land development funds can be entrusted to manage other local state financial funds according to regulations, except in cases where the land development funds operates in the model of entrustment to the local Development Investment Fund or other local financial funds.

- The entrusted management by the land development funds is carried out according to the Decision of the provincial People’s Committee or the Trust Management Contract signed between the land development funds and the entrusting party. The Decision or Trust Management Contract includes the following basic contents:

+ Name, address, legal status, legal representative of the entrusting party (if any) and the entrusted party (land development funds).

+ Purpose of entrusting; entrusted contents.

+ Amount of entrusted capital, management of entrusted capital; entrusting period; entrustment fee;

+ Responsibilities for appraisal and supervision of entrusted activities; responsibilities of the entrusting party in dealing with risks.

+ Rights and obligations of the parties; handling of early termination of the Decision or Trust Management Contract; terms of violation handling, dispute resolution (if any).

+ Other contents agreed upon by the parties in accordance with legal regulations.

- The land development funds is responsible for independently accounting and monitoring entrusted capital and assets formed from the entrusted capital (if any) of the Fund.

- The entrusted management by the land development funds must comply with legal regulations and not affect the implementation of the Fund's tasks as stipulated in Decree 104/2024/ND-CP.

- The land development funds is entitled to income from entrusted management activities, which is recognized as the Fund's income.

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