What is Vietnam Environmental Protection Fund? Sources of operating capital of Vietnam Environmental Protection Fund

What is Vietnam Environmental Protection Fund? Sources of operating capital of Vietnam Environmental Protection Fund (Internet image)

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

1. What is Vietnam Environmental Protection Fund?

According to Clause 1, Article 151 of the Law on Environmental Protection 2020, Vietnam Environment Protection Fund and provincial environment protection funds are state financial agencies established at the central level, in provinces and central-affiliated cities to grant concessional loans, receive deposits, donations, assistance and financial contributions for environmental protection.

2. Power to establish an environment protection fund in Vietnam

According to Clause 2, Article 151 of the Law on Environmental Protection 2020, the power to establish an environment protection fund is as follows:

- The Prime Minister shall decide on the establishment, organizational structure and operation of the Vietnam Environment Protection Fund;

- A provincial People’s Committee shall decide on the establishment, organizational structure and operation of the provincial environment protection fund;

- An organization, enterprise or individual shall establish its/his/her own environment protection fund and operate it as prescribed by law.

3. Sources of operating capital of Vietnam Environmental Protection Fund

Sources of operating capital of Vietnam Environmental Protection Fund (VEPF) according to Article 158 of Decree 08/2022/ND-CP is as follows:

-  Equity, including:

+ Charter capital which is at least 3,000 billion dong generated from the following sources: funding derived from state budget and development investment fund before the effective date of this Decree; extra funding from the development investment fund; state funding from public investment sources prescribed by law.

The change in charter capital of the VEPF shall be decided by the Prime Minister.

+ Development investment fund;

+ Other capital under the VEPF’s ownership as prescribed by law.

- Other capital, including domestic and foreign organizations and individuals’ sponsorships, assistance, voluntary contributions and authorized investments for environmental protection and climate change adaptation; VEPF’s operating capital provided by the competent authority before the effective date of this Decree; other sources of capital prescribed by law.

- The Prime Minister shall decide the organizational structure, operation and financial mechanism of the VEPF.

4. Sources of operating capital of provincial environment protection funds in Vietnam

Sources of operating capital of provincial environment protection funds according to Article 159 of Decree 08/2022/ND-CP is as follows:

- Equity, including:

+ Charter capital which is at least 30 billion dong. For an operating fund whose charter capital is less than 30 billion dong, there must be a roadmap for increasing the charter capital within 05 years from the effective date of this Decree. The charter capital is generated from the following sources: funding derived from state budget and development investment fund before the effective date of this Decree; extra funding from the development investment fund; state funding from public investment sources prescribed by law.

The change in charter capital of a provincial environment protection fund shall be decided by the Chairman/Chairwoman of the provincial People’s Committee.

+ Development investment fund;

+ Other capital under the fund’s ownership as prescribed by law.

- Other capital, including domestic and foreign organizations and individuals’ sponsorships, assistance, voluntary contributions and authorized investments for environmental protection and climate change adaptation; VEPF’s operating capital provided by the competent authority before the effective date of this Decree; other sources of capital prescribed by law.

-. Chairmen/Chairwomen of provincial People’s Committees shall decide the organizational structures, operation and financial mechanisms of the provincial environment protection funds.

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