Duties and powers of the Small and Medium Enterprise Development Fund in Vietnam

Duties and powers of the Small and Medium Enterprise Development Fund in Vietnam (Internet image)

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

1. Operational principles and objectives of the Small and Medium Enterprise Development Fund in Vietnam

Operational principles and objectives of the Small and Medium Enterprise Development Fund in Vietnam according to Article 3 of Decree 39/2019/ND-CP are as follows:

* Operational principles

- The Fund is operated according to the financial autonomy and capital adequacy principle;

- The Fund shall assume limited liability not exceeding its equity;

- The Fund shall give support to right beneficiaries that meet requirements specified in this Decree.

* Fund’s operational objectives

- Improving the competitiveness of small and medium enterprises, contributing to increasing income and offering employment opportunities to workers;

- Creating funding sources available to support and develop small and medium enterprises;

- Promoting effectiveness in management of state capital used for supporting small and medium enterprises.

2. Duties and powers of the Small and Medium Enterprise Development Fund in Vietnam

Duties and powers of the Small and Medium Enterprise Development Fund in Vietnam according to Article 5 of Decree 39/2019/ND-CP are as follows:

* Fund’s duties

- Support small and medium enterprises in accordance with Decree 39/2019/ND-CP;

- Receive, manage and use capital legally;

- Carry out reporting and accounting regimes under the provisions of Decree 39/2019/ND-CP and relevant laws;

- Submit to inspection, examination and audit of competent regulatory authorities in accordance with law;

- Purchase property and other insurance as required by law to ensure safety for the Fund;

- Provide data and publicly disclosing operational rules, financial mechanism and operational outcomes of the Fund and annual financial statements already audited under the provisions of Decree 39/2019/ND-CP and relevant law.

* Fund’s rights

- Ensure its operation and organization adhere to defined principles and goals;

- Recruit, place, utilize and train employees and develop its personnel in accordance with Decree 39/2019/ND-CP and provisions of other relevant law;

- Conduct the periodic and unscheduled inspection and control of use of the Fund’s capital; withdraw financial support from those entities violating requirements and commitments to the Fund;

- Hire independent service providers, experts and scientists to support the Fund’s operations;

- Render or use services of consulting, assessment of management, financial, technological and credit rating capability for small and medium enterprises;

- Request enterprises to pay costs of participation in the Fund’s support activities;

- Organize seminars, carry out communication, training, consulting, investment and trade promotion, provide information, databases, support research and development, invest in establishing business incubation centers, technical facilities, coworking spaces and other supporting activities as provided in Decree 39/2019/ND-CP under the Law on Support for Small and Medium Enterprises.

3. Regulations on personnel management of  management of the Small and Medium Enterprise Development Fund in Vietnam

Regulations on personnel management of  management of the Small and Medium Enterprise Development Fund in Vietnam according to Article 13 of Decree 39/2019/ND-CP are as follows:

- The Fund shall exercise staffing autonomy and may make decisions on work positions and the number of employees relevant to assigned functions and duties and conformable to regulations of the Ministry of Planning and Investment.

- Employees shall have the right to participate in discussions, opinion surveys and recommend personnel to competent entities under labor law and other relevant legislation.

- All employees in the Fund shall have the right to get involved in supervising implementation of the resolutions made by the employees’ meeting; implementation of the rules and regulations of the Fund; implementation of the collective labor agreement; implementation of labor contracts; implementation of regimes and policies for employees; collection and use of funds contributed to by employees; results of handling of complaints and denunciations and labor disputes; annual emulation and commendation results of employees.

- Annually, the Fund shall preside over and cooperate with the Executive Committee of the Fund’s Trade Union in organizing the employees’ meeting to discuss solutions to realizing the operation plan targets adopted by the Members' Board; assessing the implementation of the collective labor agreement, the rules and regulations of the Fund and other issues related to the legitimate rights and interests of employees.

- Relationship between the Fund and employees

+ Relationship between the Fund and employees shall be subject to regulations of law on labor;

+ The Director shall submit the plan to the Members’ Board to seek their approval of issues related to recruitment of employees, staff severance, salaries and insurance benefits in accordance with law, welfares, rewards and disciplines for employees as well as relationship between the Fund and trade unions of employees.

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