THE PRIME
MINISTER
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 601/QD-TTg
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Hanoi, April
17, 2013
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DECISION
TO ESTABLISH THE
MEDIUM AND SMALL ENTERPRISE DEVELOPMENT FUND
THE PRIME MINISTER
Pursuant to the Law
on Government organization dated December 25th 2001;
Pursuant to the Government's Decree No.
56/2009/ND-CP dated June 30th 2009 on supporting the development of
medium and small enterprises;
At the request of the Minister of Planning and
Investment,
DECIDES:
Article 1. Establishing the Medium and
Small Enterprise Development Fund (hereinafter referred to as Fund) to support
medium and small enterprises that have feasible business plans that are
encouraged by the State and conformable with the purposes of the Fund in order
to improve the competitiveness of enterprise and contribute to the increase of
incomes and employment creation.
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1. The Fund is a state financial institution
affiliated to the Ministry of Planning and Investment. The Fund has a separate
the Balance sheet, charter capital, seal, and legal status, is allowed to open
accounts at State Treasuries or commercial banks
2. Name: Medium and Small Enterprise Development
Fund. English name Medium and Small Enterprise Development Fund (SMEDF)
3. The head office of the fund is situated in
Hanoi. The Minister of Planning and Investment shall consider and decide the
establishment of its representative offices in some central-affiliated cities
and provinces.
Article 3. Subjects and range of the Fund
1. The subjects of the Fund are medium and small
enterprises, as prescribed by law, that directly engage in investment,
production, and business belonging to the list prioritized industries of the
Fund made by the Ministry of Planning and Investment in each stage.
2. The Fund shall support the operation of
medium and small enterprises nationwide.
Article 4. Tasks and entitlements of the Fund
1. Tasks:
a) Receive, manage, and use financial resources
and entrusted capital sources at home and overseas as prescribed by Vietnam’s
law to create a capital sources supporting the development of medium and small
enterprises.
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c) Formulate annual operation plans, development
strategies, long-term operation plans, and criteria for selecting prioritized
subjects of the Fund, then submit them to the Ministry of Planning and
Investment for decision.
2. Entitlements of the Fund
a) Organize a managerial apparatus in accordance
with its Charter; issue regulations within its competence to serve its
operation.
b) Carry out periodic and irregular inspections
at the banks entrusted by the Fund according to entrustment contracts
(hereinafter referred to as entrusted banks); cooperate with entrusted banks
and inspect the funded business plans, repay debts of clients and settle
complaints against organizations and individuals that violate credit contracts
as prescribed by law.
c) Request entrusted banks to suspend the
support and withdraw the capital when organizations and individuals violate
credit contracts or regulation of the State; and file lawsuits as prescribed by
law.
d) Send idle cash of the Fund to commercial
banks for preserving and development capital of the fund (safety must be
ensured).
dd) Carry out technical support of Vietnamese
and overseas organizations and individuals to improve the capability of the
Fund.
Article 5. Capital
sources of the Fund
1. The charter capital of the Fund provided by
the State budget is 2,000 billion VND. The State budget shall provide charter
capital for the Fund for 3 years from the day on which the Decision or
establish is made. 500 billion VND shall be provided in the first 2 years;
1,000 billion VND shall be provided in the third year.
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2. Additional capital from the operation of the
fund.
3. Capital from: voluntary contributions and
entrusted money from Vietnamese and overseas organization that aim to serve the
development of medium and small enterprises.
4. Other raised capital as prescribed by law.
Article 6. Method for financial support of
the Fund
1. The Fund shall authorize the Vietnam
Development Bank or capable commercial banks to give loans to medium and small
enterprises that wish to take loans and satisfy the conditions in Article 7 of
this Decision.
2. Principle: entrusted banks shall make
appraisals and decide to give loans to business plans, and take responsibility
for such plans.
3. The entrusted banks may establish loan loss
reserve to handle risks of giving loans to medium and small enterprises as
prescribed.
4. The stipulations about entrusted loan are
written in the entrustment contract as prescribed by the State bank.
Article 7. Conditions
for giving loans
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1. The business plans belong to the List of
prioritized sectors of the Fund.
2. Owners of such medium and small enterprises
are capable of civil acts.
3. The equity capital for the business plan
reaches at least 20%, and the capital is adequate to execute such business
plans.
4. The debt is likely to be paid before the
deadline in the signed credit contract.
5. The regulations on loan guarantee are
complied with.
6. The medium and small
enterprises that have taken loans from the Fund for their business plans shall
not take preferential loans from other credit institutions of the State.
Article 8. Loan interest, loan period, and
loan rate
1. The maximum loan given to each
business plan is 70% of its total investment (not including working capital),
and shall not exceed 30 billion VND.
2. The loan period depends on the
ability to recoup capital, the solvency of the debtor, and the specific
conditions of each business plan, but shall not exceed 07 years. In special
cases in which long-term projects demand longer period, the Minister of
Planning and Investment shall decide the loan period, but such period shall not
exceed 10 years.
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Depending on the credit market,
the Ministry of Finance shall decide the loan interetst of the Fund in each
stage, but it shall not exceed 90% of commercial loan interests. The loan
interests are uniformly applicable to all medium and small enterprises being
prioritized subjects of the Fund.
The commercial loan interests are
determined based on the average loan interests in 05 years of state-owned
commercial banks in Hanoi.
Article 9. Debt classification
and establishment of loan loss reserve funds
Debt classification and establishment
of loan loss reserve funds shall comply with current laws.
Article 10. Managerial appratus
of the Fund
The managerial appratus of the
Fund include the Management Board, the Control Board, and the
Administration Board. Their tasks and entitlements are specified in the Charter
of the Fund.
Article 11. The
Management Board
1. The Management Board of the Fund consists of
06 members: The President of the Management Board is a senior official from The
Ministry of Planning and Investment; 05 members are senior officials from the
Ministry of Finance, the State bank of Vietnam, The Department of Enterprise
Development – The Ministry of Planning and Investment, the Director of the Fund
and the Director of the Medium and Small Enterprise Association of Vietnam
2. The Minister of Planning and Investment shall
designate the President of the Management Board of the Fund.
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Article 12. The Control Board
The Control Board of the Fund consists of 03
members, including a President and 02 members, appointed and dismissed by the
Management Board. Members of the Control Board must not be spouses, parents, children,
brothers or sisters of members of the Management Board, the Director, and
Deputy Directors of the Fund. Members of the Control Board must be proficient
in finance, accounting, banking, and law, and shall work full-time during its
5-year tenure.
Article 13. The
Administration Board
1. The Administration Board includes the
Director, Deputy Directors, the Chief Accountants, and specialized Departments
2. The Director of the Fund is the legal
representative of the Fund, designated and dismissed by the Minister of
Planning and Investment at the request of the Management Board
3. The Director of the Fund shall request
the Minister of Planning and Investment to decide the appointment and dismissal
of the Deputy Directors, Chief Accountant, and Department Managers of the
Funds. Deputy Directors shall assist the Director in performing the tasks.
4. The Minister of Planning and Investment shall
decide the organizational structure of the Fund. The functions and tasks of
specialized Departments and representative offices of the Fund shall be decided
by the Director after an approval of the Management Board is granted.
Article 14. Financial
principles of the Fund’s operation
1. Non-profit
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3. Open and transparent
4. Frugal and efficient
5. The Fund is exempt from taxes and payments to
the State budget as prescribed by law.
Article 15. Responsibilities of Ministries,
local governments, and Associations
1. The Ministry of Planning and Investment being
the state authority in charge of the Fund’s operation shall:
a) Cooperate with the Ministry of Finance, the
Ministry of Internal Affairs, the Ministry of Justice, the State bank, and
relevant agencies in issuing the Fund’s Charter in accordance with this
Decision and current regulations of the State.
b) Cooperate with relevant agencies and local
governments in making the List of prioritized sectors of the Fund; the criteria
for selecting prioritized subjects of the Fund.
c) Issue Decisions to establish the Management
Board, appoint and dismiss personnel of the Fund.
d) Approve the quarterly and annual financial
statements and capital plans of the Fund as prescribed by law.
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2. The Ministry of Finance being
the state authority in charge of the Fund’s finance shall:
a) Cooperate with the Ministry of Planning and
Investment and relevant agencies in providing a financial management mechanism
and mange the finance of the Fund.
b) Announce the loan interests of the fund in
each stage.
c) Provide guidance on the establishment of loan
loss reserve fund (if any)
d) Provide guidance, inspect and supervise the
financial activities of the Fund.
3. Responsibilities of the State bank:
Perform the state management function in terms
of finance and banking relating to the Fund’s operation
4. Ministries, local governments, and
Associations shall cooperate with the Ministry of Planning and Investment in
providing guidance and enable medium and small enterprises to access the
support of the Fund.
Article 16. Implementation
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2. Ministers, Heads of ministerial agencies,
Heads of Governmental agencies, the President of the provincial People’s
Committee, the President of the Management Board and the Director of the Medium
and Small Enterprise Development Fund are responsible for the implementation of
this Decision.
THE PRIME
MINISTER
Nguyen Tan Dung