Chương I Nghị định 39/2019/NĐ-CP: Quy định chung

Chapter I

GENERAL PROVISIONS

Article 1. Scope and subjects of application

1. This Decree provides detailed instructions on implementation of Article 20 in the Law on Small and Medium Enterprise Support regarding organization and operation of small and medium enterprise development fund (hereinafter referred to as Fund).

2. This Decree shall apply to small and medium enterprise development funds, medium and small enterprises and organizations or individuals involved in support for small and medium enterprises.

Article 2. Legal status and legal personality of the Fund

1. Small and medium enterprise development fund is an out-of-budget state financial fund operating for not-for-profit purposes which is established by the Prime Minister.

2. The Fund shall adopt the operational structure of single-member limited company whose chartered capital is wholly owned by the State.

3. The Fund shall have legal personality, chartered capital, independent financial report and seal and may open an account at the State Treasury and other commercial banks operating legally in Vietnam in accordance with law.

4. Ministry of Planning and Investment shall be authorized to play its role as and implement its rights and obligations of an agency representing the state owner of the fund.

5. The Fund’s main office shall be located in Hanoi capital.

Article 3. Operational principles and objectives of the fund

1. Operational principles

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

b) The Fund shall assume limited liability not exceeding its equity;

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

2. Fund’s operational objectives

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

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

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

Article 4. Interpretation

For the purposes of this Decree, terms used herein shall be construed as follows:

1. “Fund’s manager” refers to persons holding the position or title of Chairperson of Members' Board, commissioner of Members’ Board, Comptroller, Director or Deputy Director.

2. “Fund’s employee" refers to a worker recruited to work for the Fund in accordance with law on employment but not holding the title or position as defined in clause 1 of this Article.

3. “Direct lending” refers to the Fund’s directly granting loans to small and medium enterprises.

4. “Indirect lending” refers to the Fund’s granting loans to small and medium enterprises through entrusting capital to commercial banks established and operated under law.

5. “Financing” refers to the situation in which the Fund gives its capital as a sponsorship and carries out activities in support of enhancing the capability of small and medium enterprises.

6. “Risk acceptance ratio” refers to the highest percentage of risk in a financial year that the Fund may accept in case any loss occurs. The risk acceptance ratio is measured by the value of loss leading to reduction in the chartered capital divided by the actual amount of chartered capital at the time of determination of the risk acceptance ratio.