Chương 1 Nghị định 79/2002/NĐ-CP: Các quy định chung

Chapter I

GENERAL PROVISIONS

Article 1.- Regulation scope

This Decree prescribes the organization and operation of financial companies.

Article 2.- Definition of the financial company

The financial company constitutes a type of non-bank credit institution, with function of using equity capital, mobilized capital and other capital sources to provide loans, make investment; provide services on financial or monetary consultancy and provide some other services under the provisions of law, but not to provide payment services, not to receive under-one year- deposits.

Article 3.- Founding forms

The financial companies are set up and operate in Vietnam in the following forms:

1. The State-run financial companies are those invested with capital, set up and managed in term of business operation by the State.

2. The joint-stock financial companies are those set up in form of joint-stock companies by organizations and/or individuals that jointly contribute capital thereto.

3. The financial companies of credit institutions are those each set up and owned by a credit institution with its equity capital under the provisions of law, which conduct independent cost-accounting and have their own legal person status.

4. The joint-venture financial companies are those set up with capital contributed between the Vietnamese party comprising one or many credit institutions and/or Vietnamese enterprises and the foreign party comprising one or many foreign credit institutions, on the basis of joint-venture contracts.

5. The financial companies with 100% foreign capital are those set up with capital of one or many foreign credit institutions according to the provisions of Vietnamese law.

Article 4.- Legal capital

The legal capital of financial companies shall be prescribed by the Government. The change of legal capital levels of financial companies shall be decided by the Government.

Article 5.- Operation duration

The operation duration of a financial company in Vietnam shall not exceed 50 years. In case of necessity to extend the operation duration, the approval of Vietnam State Bank (hereinafter called the State Bank for short) is required. Each extension shall not exceed 50 years.

Article 6.- Interpretation of terms and phrases

In this Decree, the following terms and phrases shall be construed as follows:

1. Entrustment taking means that the financial companies use the entrusted capital to lend or invest in projects or works on the basis of entrustment contracts between the entrusting parties and the financial companies.

2. Payment contracting means a form of discounting vouchers with a view to providing credit support for enterprises, on the basis of repurchase of receivable debts of enterprises which arise from goods sale with deferred payment, and performing the management of invoices, vouchers and accounting books for enterprises.

Article 7.- State management

The State Bank is responsible for the State management over the organization and operation of financial companies, grant and withdraw establishment and operation licenses; supervise and inspect the activities of financial companies in Vietnam; promulgate documents guiding the organization and operation of financial companies; perform other State management tasks under the provisions of law.