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THE PRIME
MINISTER OF GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No.
462-TTg
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Hanoi
,July 09, 1996
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DECISION
RATIFYING THE STATUTE OF THE NATIONAL INVESTMENT ASSISTANT
FUND
THE PRIME MINISTER
Pursuant to the Law on Organization of the
Government of September 30, 1992;
Pursuant to the Law on Domestic Investment Promotion of June 22, 1994;
Pursuant to Decree No.29-CP of May 12, 1995 of the Government providing
detailed guidance for the implementation of the Law on Domestic Investment
Promotion;
At the proposals of the Minister of Finance and the Chairman of the Management
Council of the National Investment Assistant Fund,
DECIDES:
Article 1.- To ratify
the Statute of the National Investment Assistant Fund issued together with this
Decision.
Article 2.- This
Decision takes effect from the date of its promulgating.
Article 3.- The Minister
of Finance, the Chairman of the Management Council and the General Director of
the National Investment Assistant Fund shall be responsible for organizing the
implementation of this Decision. The Ministers, the Heads of the
ministerial-level agencies, the Heads of the agencies attached to the
Government, the Presidents of the People’s Committees of the provinces and
cities directly under the Central Government shall have to implement this
Decision.
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FOR THE
PRIME MINISTER
DEPUTY PRIME MINISTER
Phan Van Khai
STATUTE OF THE NATIONAL INVESTMENT ASSISTANT FUND
(Issued together with Decision No.462-TTg of July 9, 1996 of the
Prime Minister)
Chapter I
GENERAL PROVISIONS
Article 1.- The
National Investment Assistant Fund is established and operates by Decision
No.808-TTg of December 9, 1995 of the Prime Minister and other relevant legal
documents currently in force.
The Fund has its international transaction name
as the National Investment Assistant Fund (NIAF for short).
Article 2.- NIAF is a
financial State institution, operating nationwide. It has the function of
mobilizing capital from organizations and individuals inside and outside the
country; receiving investment capital from different sources from the State to
lend to investment projects for the development of privileged branches and trades
of all economic sectors and in difficult areas as provided for by the
Government.
Article 3.- The NIAF
has the legal person status, a Management Council and an Executive Office; a
statutory capital of 1,100 billion VND (one thousand and one hundred billion
Vietnam Dong); its balance of accounts and its own seal, and is entitled to
open bank accounts at the State treasuries, domestic and foreign banks. The
NIAF is headquartered in Hanoi city. The Fund has its branches set up in the
provinces and cities directly under the Central Government by decision of the
Management Council. If necessary, the Fund may also open transaction offices
overseas in accordance with the Government’s regulations.
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Article 5.- The NIAF is
managed by the Management Council and run by the General Director.
Chapter II
WORKING CAPITAL, RIGHTS AND OBLIGATIONS
I. WORKING CAPITAL
A. RECEIVING AND MOBILIZING CAPITAL
FROM VARIOUS SOURCES
1. Statutory capital
Article 6.- The initial
and additional statutory capital of the NIAF shall be mobilized from the
following sources:
1. State budget allocation, representing 50% of
the total statutory capital;
2. Capital contributed by insurance
organizations, State owned credit institutions and State enterprises. The list
of the capital contributing organizations and the respective amounts of their
contributions shall be submitted by the Minister of Finance to the Prime Minister
for decision;
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Article 7.- The initial
allocation of and contribution to the statutory capital and its increase as
mentioned in Points 1 and 2 of Article 6 of this Statute shall be proposed by
the Management Council to the Minister of Finance who shall submit it to the
Prime Minister for decision:
1. The State budget capital shall be set in the
annual budget plan;
2. Capital contributed by insurance
organizations, credit institutions and State enterprises shall be taken from
the after-tax profits of the previous operation year and shall make up at least
3% of the statutory capital.
2. Mobilized capital
Article 8.- The NIAF is
entitled to mobilize and receive capital from the following sources:
1. Medium- and long-term loans from individuals
and organizations inside and outside the country;
2. Investment capital received from various
sources of the State, including the Government�s
loans and the official development assistance (ODA) so as to lend to projects
decided by the Government;
3. Issuing medium- and long-term treasury bonds;
4. Receiving capital for development investment
loans commissioned by Vietnamese and foreign organizations and individuals;
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B. LENDING CAPITAL AND
RETRIEVING DEBTS
Article 9.- Eligible for
NIAF loans are medium- and long-term investment projects in privileged branches
and trades or in the regions of ethnic minorities, mountainous areas, offshore
islands and other difficult areas as provided for by the Government.
Article 10.- Investment
projects to be considered for NIAF loans must meet the following conditions:
1. Having been ratified by the competent
authority in accordance with current legislation;
2. Having been granted the certificate of
preferential investment by the Ministry of Planning and Investment or the
People�s Committee of
the province or city directly under the Central Government;
3. Capable of direct recovery of capital;
4. Having property for mortgage or guaranty or
pledge as prescribed by law.
Article 11.- The amount
of capital to be loaned by the NIAF for the execution of an investment project
shall not exceed 50% of the total investment capital already ratified by the
competent authority; in case of excess of this prescribed level, it must be considered
and decided by the Chairman of the Management Council.
Article 12.- The
lending interest rates of the NIAF:
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b/ Newly established production or business
establishments prescribed in Articles 9 and 11 of the Law on Domestic
Investment Promotion shall be loaned at the interest rates decided by the
Management Council according to the principle of ensuring the recovery of
capital and the coverage of the managerial expenses.
Article 13.- The time
limit for retrieving debts (both principal and interest) and the point of time
for starting the payment of debts (both principal and interest) shall be
determined in the capital lending and borrowing contracts.
When the debt is due but the project owner
cannot pay it, the NIAF shall turn the loan into an overdue debt and the
project owner shall be dealt with in accordance with the provisions of law.
Article 14.- The NIAF
shall organize the lending and paying for the capital construction volume,
including building and installation, equipment and other expenses thereon
directly to the contractors, the equipment suppliers and the project owner.
Article 15.- The NIAF
is not allowed to invest in foreign countries.
II. RIGHTS AND OBLIGATIONS
OF THE NIAF
Article 16.- The NIAF
shall have the following rights and obligations in the fields of organization,
management and finance:
1. To manage and use the assigned capital and
property;
2. To use the apparatus of the General
Department for Development Investment to run its operations in accordance with
the objectives and assigned tasks;
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4. To organize the management and exploitation
of resources with a view to increasing the support capital for development
investment projects;
5. To set and apply norms to the management and
calculation of lending interest rates for each type of investment projects
within its capital sources and in accordance with the Government policies
regarding the development investment projects in privileged branches and trades
and in difficult areas as prescribed by the Government;
6. After fulfilling the obligation of paying the
interests for all borrowings and managerial expenses, contributing to the
reserve fund for service risk compensation, the remaining profits shall be
distributed to the capital contributors and deducted for setting up other funds
as prescribed in Article 37 of this Statute;
7. To be eligible for compensation by the State
for the force majeure risks;
8. To be exempt from taxes of all kinds.
Article 17.- The NIAF
is entitled to request the project owners to provide information on the
production and business situation, finance and credit conditions of the
enterprises. It also has the right to inspect the implementation of the
projects as well as the management and use of the borrowed capital. If the Fund
discovers that the project owner uses the borrowed capital for the wrong
purpose and inefficiently, it is entitled to refuse or suspend the capital
supply, retrieve the loaned capital and at the same time notify the
higher-level managing agency of the project owner and the concerned agencies so
that measures can be taken to settle the problem in accordance with law.
The Fund may also refuse the loan requests of
organizations or individuals which are contrary to this Statute.
Article 18.- In its
relationship with the State, the NIAF has the responsibility:
1. To receive and efficiently use capital
sources assigned by the State; observe the State regulations on the management
of capital and property; be responsible for the accuracy and lawfulness of its
financial activities;
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3. To correctly apply the prescribed lending
interest rates;
4. To observe the regime of statistical and
accounting reporting, periodical report, as provided for by the State and be
responsible for the accuracy of such reports;
5. To supply necessary information so that the
State can assess correctly and objectively the results of the Fund’s
activities;
6. To observe the regulations on inspection by
the competent State agencies as prescribed by law.
Article 19.- The NIAF
shall have :
1. To strictly observe the provisions of this Statute,
take responsibility before law and the State for the results of its activities
and before the customers for the services performed by the NIAF;
2. To work out the annual and five-year
operation plans in accordance with the State socio-economic development
strategy and the assigned tasks;
3. To renew the mode of management and modernize
technology to serve the Fund�s
activities;
4. To perform the payment of interests to and
the recovery of both principal and interests for the owners of the capital entrusted
to the NIAF for loans.
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Article 20.- A member
contributing money to the NIAF’s statutory capital shall have the following
obligations and interests:
1. To fulfil the obligation to contribute to the
statutory capital within 3 months from the date on which the Prime Minister
issues the decision;
2. To be entitled to make comments and
suggestions on the policies and mechanism for capital mobilization and use and
the financial mechanism of the NIAF; to attend the annual meeting for briefing
on the results of the Fund’s activities; to be supplied with necessary
information on the operation of the Fund;
3. To be considered for loans according to the
lending regulations of the NIAF when he/she so requests.
Chapter III
ORGANIZATION OF THE
MANAGEMENT AND OPERATION OF THE NIAF
Article 21.- The
management of the NIAF is undertaken by the Management Council which shall have
the following powers and responsibilities:
1. To consider and approve the orientations of
operation, mechanism and policies for capital mobilization and capital lending
and financial plans, and check the accounts statement of the Fund;
2. To supervise and inspect the executive body
in the implementation of the Fund’s Statute and the decisions of the Management
Council;
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4. To examine the reports of the Control
Commission;
5. To consider and handle complaints of the
capital contributors and of the organizations borrowing capital from the NIAF;
6. To be entitled to use the NIAF’s seal for the
performance of its tasks and enforcement of its powers;
7. To take the material, administrative and legal
responsibilities for the commitments between the NIAF and the parties involved.
Article 22.- Members of
the NIAF’s Management Council include competent representatives of the Ministry
of Finance, the Ministry of Planning and Investment, the Commission for Ethnic
Minorities and Mountainous Areas, the State Bank of Vietnam, the General
Director of the General Department for Development Investment and
representatives of a number of domestic organizations contributing money to the
NIAF’s statutory capital. The Management Council has a Chairman and a number of
Vice Chairmen including a standing Vice Chairman. The appointment or dismissal
of the members of the Management Council shall be proposed by the Minister of
Finance to the Minister-Chairman of the Government Commission on Organization
and Personnel who shall submit it to the Prime Minister for decision.
Article 23.- Working
regulations of the Management Council
1. The Management Council adopts the regime of
collective work and meets once every three months to consider and decide
matters within its competence and responsibility.
2. The Management Council may convene
extraordinary meetings to settle urgent matters at the request of the Chairman,
the President of the Control Commission, two-thirds of the members of the
Management Council or the General Director of the Fund.
3. All meetings of the Management Council must
be attended by at least two-thirds of its members and shall be presided over by
the Chairman or a Vice Chairman (in the absence of the Chairman). The
Management Council shall make decisions by majority vote; in cases where the
numbers of votes for and against are equal, the opinion of the person who
presides over the meeting shall be decisive.
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4. The Management Council shall issue its own
working regulations and its reporting regimes and assign tasks to its members.
Article 24.- All
expenses on working facilities and operations of the Management Council shall
be included in the expenditures on the operations of the Fund. Members of the
Management Council shall be eligible for allowances and other interests as
stipulated for members of the Managing Boards of State enterprises.
Article 25.- The
Management Council of the NIAF shall have a Standing Board and a secretary
appointed by itself. In case of necessity, it may set up a consultancy team to
help in studying and/or proposing policies and professional mechanism of the
Fund.
Article 26.- The
Standing Board of the Management Council is composed of the Chairman and a
number of Vice Chairmen.
The Standing Board shall have the following
rights and responsibilities:
1. To deal with matters which are proposed by
the General Director but beyond the competence of the General Director;
2. To organize and direct the implementation of
the resolutions and decisions of the Management Council concerning the tasks
mentioned in Article 23 of this Statute;
3. To organize the research and elaboration of
directional documents; to prepare the contents and agendas for the meetings of
the Management Council;
4. To personally take material, administrative
and legal responsibility for its decisions;
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6. To convene extraordinary meetings if it deems
necessary or to summon the concerned members of the Management Council for the
settlement of urgent matters.
Article 27.- The
Secretary of the Management Council shall be appointed by the Council and have
the following rights and responsibilities:
1. To write down the minutes of the meetings of
the Management Council and the Standing Board;
2. To draft resolutions, decisions and notices
of each meeting to be submitted to the Chairman of the Management Council or
the Standing Board for signing;
3. To prepare necessary conditions and
facilities for the meetings of the Management Council and the Standing Board:
a/ To prepare files and documents for the
meetings;
b/ To summon the members on orders of the
Chairman of the Management Council;
c/ To draft the expenditures for the meetings.
Article 28.- The
Control Commission of the NIAF shall supervise all the NIAF’s activities. The
Head and Deputy Head(s) of the Control Commission shall be decided by the
Minister of Finance at the proposal of the Management Council.
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1. To inspect and supervise the observance of
policies, regimes and professional regulations on the operations of the NIAF so
as to raise the efficiency of the Fund�s
operations, to ensure the safety of the State property, the property of the
Fund and its customers. To report and make proposals regarding its work to the
Management Council;
2. To carry out its work independently according
to the program already approved by the Management Council;
3. To present its reports and proposals on the
results of the inspection and supervision, and reports on the examination of
the financial settlement of accounts at meetings of the Management Council but
shall not take part in voting;
4. Not to disclose the results of the inspection
or supervision unless permitted by the Management Council and the Executive
Office of the NIAF.
Article 29.-
Organization of the operation of the NIAF
1. The General Director of the General
Department for Development Investment shall be the General Director of the
NIAF. The General Director is entitled to use the professional staff of the
General Department for Development Investment to run the operations of the
NIAF.
The General Director shall be the representative
at law of the NIAF and take responsibility before the Management Council, the
Minister of Finance and the law for all professional operations of the NIAF.
The apparatus assisting the General Director to
run the NIAF is composed of the Deputy General Directors including a Standing
Deputy General Director and a number of professional sections, which shall be
decided by the Management Council. The Minister of Finance shall appoint or
dismiss the Deputy General Directors at the proposal of the General Director.
The General Director shall appoint or dismiss the heads and deputy heads of the
professional sections in accordance with the assignment of responsibilities for
personnel management of the Ministry of Finance.
2. The General Director of the NIAF shall have
the following tasks and powers:
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b/ To issue the professional regulation of the
NIAF;
c/ To sign documents within his/her executive
responsibilities and take responsibility for his/her decisions before the
Management Council and the Minister of Finance;
d/ To represent the NIAF in domestic and
international relations;
e/ To make periodical reports on the situation
of capital mobilization, capital lending, debt retrieval and on the operations
of the NIAF to the Management Council and the Ministry of Finance;
g/ To directly manage the property and working
capital of the Fund and take responsibility for their preservation and
development;
h/ To act as the Fund�s representative at law in legal proceedings,
disputes, liquidation, dissolution and other matters relating to the conduct of
the NIAF�s professional
activities.
Article 30.- The
Executive General Director of the NIAF may set up executive offices at the
central and local levels:
1. The executive office of the NIAF at the
central level is the Head Office of the NIAF;
2. The NIAF executive offices in localities are
the branches whose directors shall be the Heads of the Departments for
Development Investment of the provinces and cities directly under the Central
Government, who shall be assisted by a number of deputy directors. The
directors of the branches shall use the apparatuses of the Departments for
Development Investment to perform the tasks assigned to them.
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Chapter IV
NIAF’S RELATIONSHIPS
WITH CUSTOMERS AND CONCERNED ORGANIZATIONS
Article 31.-
Relationships with customers (between borrower and lender)
1. The NIAF shall take responsibility before its
customers for:
a/ Material safety of the customers’ property
and capital used by the NIAF;
b/ Keeping secret all data, creating conditions
for the customers in their relations with the Fund in accordance with the
provisions of law;
c/ Strictly implementing the commitments on
capital lending to the project owners.
2. The customers shall have the following
responsibilities towards the NIAF:
a/ Strictly following the NIAF’s professional
regulations on capital mobilization and lending;
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Article 32.-
Relationships with credit institutions:
1. Based on the principle of voluntariness,
equality and mutual benefit and the contracts;
2. Acting as agent(s), receiving entrusted
capital and lending capital to customers;
3. Cooperating, promoting and supporting each
other in the development by applying scientific and technical advances and
managerial skills to their respective operations.
Article 33.-
Relationships with international, national and Non-Governmental organizations,
and with individuals inside and outside the country:
The NIAF is entitled to directly enter into
negotiations, sign capital- borrowing contracts, receive aid, train employees
and participate in activities in support of development investment in
privileged branches and trades and in difficult areas as provided for by the
Government on the principle of voluntariness, equality, cooperation and mutual
benefit and in accordance with Vietnamese law.
Chapter V
ACCOUNTING - REVENUE -
ESTABLISHING FUNDS
Article 34.- The NIAF
shall organize its accounting and financial work in accordance with the
prescriptions of law and regulations of the State.
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Article 36.- The result
of the Fund�s financial activities shall be the difference between the
total revenue and the total expenditure:
1. The total revenue shall include the loans� interests, deposits’
interests, service fees and other incomes;
2. The total expenditure shall include the
payment of interests of the mobilized capital, managerial expenses and other
spendings.
All fees, management expenses and other
expenditures shall be ratified by the Management Council of the NIAF at the
proposal of the General Director in accordance with the financial regulations
of the State.
Article 37.- The
financial results of the Fund shall be handled as follows:
1. If the revenue is larger than the
expenditure, the NIAF is entitled to set up funds according to the following
proportions:
- The reserve fund for service risk compensation
shall account for 25% and may be increased to 100% of the statutory capital;
- The reserve fund to be added to the statutory
capital: 15%;
- The fund for the development of professional techniques:
15%;
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- The remainder shall be used to set up reward
and welfare funds in accordance with the Financial Regulation of the Fund.
2. If the revenue is smaller than the
expenditure, the NIAF shall have to use the existing funds mentioned in Point 1
of this Article to make up for the difference. If the Fund cannot cover the
expenditures, it shall have to report to the Ministry of Finance for
consideration. The latter shall submit it to the Prime Minister for decision.
Chapter VI
SETTLEMENT OF DISPUTES
AND DISSOLUTION
Article 38.- Any
dispute between the NIAF and other legal persons or individuals directly or
indirectly related to the operations of the NIAF shall be handled in accordance
with the current laws of the Socialist Republic of Vietnam.
Article 39.- The
reorganization or dissolution of the NIAF shall be decided by the Prime
Minister.
Chapter VII
IMPLEMENTATION PROVISIONS
Article 40.- The
Ministry of Finance shall have the responsibility:
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2. To represent the owner of the allocated State
budget capital according to the Government�s
prescriptions;
3. To consider the supplement of capital and
financial support in case of risks;
4. To exempt all taxes for services provided by
the Fund.
Article 41.- The State
Bank of Vietnam shall take responsibility for State management of the monetary,
credit and banking services provided by the NIAF.
Article 42.- The
Ministry of Planning and Investment shall assist the Government in performing
the function of State management over the domestic investment promotion; making
a list of privileged branches and trades and areas eligible for preferential
investment treatment to be submitted to the Government for supplement or
alteration; granting or refusing to grant certificates of preferential
investment treatment for projects decided by the Prime Minister so that the
NIAF may consider and lend the capital.
Article 43.- The
People’s Committees of the provinces and cities directly under the Central
Government shall have the responsibility to perform the function of State
management over investment activities in their respective localities and in
accordance with the prescriptions of law; identify the lists of projects
eligible for preferential investment treatment and decide according to their
competence the granting or refusal to grant certificates of preferential
investment treatment so that the NIAF may consider and lend the capital.
Article 44.- This
Statute takes effect from the date of its promulgating. Any amendment or
supplement to this Statute must be submitted to the Prime Minister for
approval.
Article 45.- The
Minister of Finance, the Chairman of the Management Council and the General
Director of the NIAF shall have to provide guidance and organize the
implementation of this Statute.