Operational principles of the Support Fund for Farmers in Vietnam

Operational principles of the Support Fund for Farmers in Vietnam (Internet image)

1. Operational principles of the Support Fund for Farmers in Vietnam

- Financial autonomy, not-for-profit, publicity, transparency, capital preservation, and development;

- Limited liability within the owner's equity of the Support Fund for Farmers;

- Properly performing the assigned functions and tasks according to the provisions of law.

(Clause 1, Article 4 of Decree 37/2023/ND-CP)

2. Objectives of the Farmer Support Fund in Vietnam

- Support members of the Vietnam Farmers' Association to build and replicate effective production and business models, contributing to increasing incomes and improving the lives of farmers;

- Create resources, conditions, and tools to unite and gather farmers into associations, contributing to building farmers' associations and movements.

(Clause 2, Article 4 of Decree 37/2023/ND-CP)

3. Operational scope of the Support Fund for Farmers in Vietnam

- The Central Support Fund for Farmers performs the functions and tasks assigned in accordance with Decree 37/2023/ND-CP nationwide;

- The Provincial/District Support Fund for Farmers performs the assigned functions and tasks as prescribed in Decree 37/2023/ND-CP within the province/district where it is established.

(Clause 3, Article 4 of Decree 37/2023/ND-CP)

4. Functions and tasks of the Support Fund for Farmers in Vietnam

- Receive and manage the charter capital allocated from the state budget according to the provisions of this Decree and relevant laws;

- Mobilize sources of support, sponsorship, and non-refundable aid for the operation of the Support Fund for Farmers;

- Lending capital to members of the Vietnam Farmers' Union to build and replicate production and business models;

- Receive loan entrustment from domestic and foreign organizations and individuals according to the provisions of the law;

- Entrust the inferior Support Fund for Farmers to perform the lending tasks as prescribed in this Decree and relevant laws;

- Perform other tasks assigned by competent authorities in accordance with the law.

(Clause 4, Article 4 of Decree 37/2023/ND-CP)

5. Responsibilities and powers of the Support Fund for Farmers in Vietnam

5.1. Responsibilities of the Support Fund for Farmers

- Comply with the provisions of Decree 37/2023/ND-CP and the provisions of law related to the operation of the Support Fund for Farmers;

- Implement regulations on the formulation, implementation, settlement, and audit of the state budget for the state budget capital at the Support Fund for Farmers;

- Subject to inspection, examination, and audit by competent state management agencies; provide data; publicly announce the financial situation as prescribed in this Decree and relevant laws.

5.2. Powers of the Support Fund for Farmers

- Organize activities in accordance with the objectives and scope of activities of the Support Fund for Farmers;

- Be able to choose loan options that fully satisfy the conditions for lending as prescribed in Decree 37/2023/ND-CP;

- Be selected, arranged, trained, and employed according to the provisions of the Organization and Operation Charter of the Support Fund for Farmers and relevant laws;

- Refuse a request to provide information or use resources of the Support Fund for Farmers if such request is contrary to the provisions of law and contrary to the Charter of the organization and operation of the Support Fund for Farmers;

- Contact and coordinate with relevant authorities, units, and individuals to mobilize legal capital to finance the operation of the Support Fund for Farmers.

(Article 5 of Decree 37/2023/ND-CP)

Decree 37/2023/ND-CP takes effect as of August 8, 2023.

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