THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No: 48/2001/ND-CP
Hanoi, August 13, 2001
 
DECREE
ON ORGANIZATION AND OPERATION OF THE PEOPLE’S CREDIT FUNDS
THE GOVERNMENT
Pursuant to the September 30, 1992 Law on Organization of the Government;
Pursuant to the December 12, 1997 Law No. 02/1997/QH10 on Credit Institutions;
Pursuant to the April 3, 1996 Law No. 47/L/CTN on Cooperatives;
At the proposal of the Vietnam State Bank Governor,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.- Regulation scope
This Decree prescribes the organization and operation of local People’s Credit Funds and the central People’s Credit Fund (hereinafter referred collectively to as the People’s Credit Funds).
Article 2.- The characters and objectives of the operation of the People’s Credit Funds
The People’s Credit Fund is a form of cooperative credit organization operating according to the principle of voluntariness, autonomy and self-responsibility for its operation results, attaining the main objective of mutual assistance among members in order to bring into full play the strength of the collective and each member in effectively carrying out production, business and service activities and raising the living standards. The operation of the People’s Credit Fund must ensure self-financing and accumulation for development.
Article 3.- Local People’s Credit Funds
The local People’s Credit Funds are cooperative credit organizations established by members in the localities voluntarily and operating according to the provisions of this Decree with the principal aim of mutual assistance among members.
Article 4.- The central People’s Credit Fund
The central People’s Credit Fund is a cooperative credit organization jointly set up by the local People’s Credit Funds with a view to supporting and raising the efficiency of the operation of the entire system of the People’s Credit Funds.
To support the system of the People’s Credit Funds, credit institutions and other subjects may participate in contributing capital to the central People’s Credit Fund under the guidance of Vietnam State Bank (hereinafter called the State Bank).
Article 5.- The principles for organization and operation of the People’s Credit Fund
1. To voluntarily join and leave the People’s Credit Funds: All Vietnamese citizens, family households and other subjects, that meet all conditions as provided for in Article 21 of this Decree may become members of People’s Credit Funds; the members may leave the People’s Credit Funds as provided for in the Charters of the People’s Credit Funds.
2. Democratic management and equality: The People’s Credit Fund members are entitled to participate in the management, inspection and supervision of People’s Credit Funds and have the equal right in voting.
3. Self-responsibility and mutual benefit: The People’s Credit Funds take self-responsibility for their operation results; decide by themselves the distribution of income, ensuring that the People’s Credit Funds and their members have mutual benefits.
4. Profit- sharing ensures the combination between the members’ interests and the People’s Credit Funds’ development: After fulfilling the tax obligations, a part of the remaining profit shall be deducted for various funds of the People’s Credit Funds, another part shall be divided to members according to their capital contribution percentages and the remainder shall be divided to members according to the extent of using services of the People’s Credit Funds decided by the members’ congresses.
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