Laws of Vietnam

DECISION No. 763-TTg ON THE 19TH OF DECEMBER 1994 OF THE PRIME MINISTER ON A NUMBER OF POLICIES FOR THE COOPERATIVE ECONOMY (SMALL INDUSTRY, HANDICRAFTS, CONSTRUCTION, TRANSPORT, TRADE AND SERVICES).

THE PRIME MINISTER

Pursuant to the Law Organization of the Government on the 30th of September 1992;

In order to encourage the renewal and development of the cooperative economy,

DECIDES:

Article 1.- The cooperatives, collective teams and unions of cooperatives in the fields of small industry, handicrafts, construction, transport, trade services (hereunder referred to as cooperatives) whose statutes are recognized and which are granted business licenses by the People's Committees of precincts, districts, towns and cities directly under the provincial administration, are economic organizations having a legal status and equal to the businesses of the other economic sectors and operate in accordance with law. With regard to large-scale cooperatives, their applications for a business license shall be considered by the People's Committees of precincts, districts, towns and cities directly under the provincial administration, and forwarded to the People's Committees of the provinces and cities directly under the Central Government for approval and granting of business licenses.

Article 2.- To supplement the following policies on cooperatives:

1. Those cooperatives which meet the current regulations can apply for loans from the State investment and development funds.

2. The qualified cooperatives may be granted a business license to export their products and import materials for producting export goods under the Government's current regulations. The minimum level of circulating capital required for consideration and granting of a business license, must be equivalent to 100,000 USD.

3. The qualified cooperatives may be licensed to carry out State projects for socio-economic development; projects funded by foreign countries and international organizations relating to the sector of cooperative economy, such as credit, development of medium and small-scale businesses, science and technology, export and import, training, information, marketing, and ether projects. The State Planning Committee and the Central Council of the Vietnam Union of Cooperatives shall set conditions, and consider which cooperatives are fully qualified to be assigned the execution the above-mentioned projects.

4. Those cooperatives which have a legal status may apply for short-term, medium-term and long-term loans from the Commercial Banks according to the borrowing and repayment conditions applied to State-owned business.

5. The cooperatives must strictly abide by the State's stipulations on business and taxation, and may be considered for reduction of taxes as stipulated by law, if they face difficulties in the process of adjustment and renewal for restoration and development in accordance with the principles of cooperatives.

With regard to profit tax, the Ministry of Finance shall cooperate with the Central Council of the Vietnam Union of Cooperatives in providing detailed guidance in accordance with law and with the characteristics of the operation of cooperatives.

Article 3.- The Central Council of the Vietnam Union of Cooperatives and the Ministry of Trade shall make a plan, and take measures to consolidate and develop the commercial and service cooperatives in rural and mountain areas, so that they may join the State-owned commercial sector in organizing the sale of vital necessities to the people of these areas (including those items which are sold under the special policy for the mountain areas and areas inhabited by ethnic minorities).

Article 4.- The People's Committees of different levels should create favorable conditions for the granting of the right to land use and for the lease of land and workshops to the cooperatives in accordance with law.

Article 5.- This Decision takes effect from the date of its signing.

Article 6.- The Ministers, the Heads of 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, and the Chairman of the Central Council of the Vietnam Union of Cooperatives shall have to implement this Decision.

For the Prime Minister

Deputy Prime Minister

PHAN VAN KHAI