Decree No. 107/2017/ND-CP dated September 15, 2017 amendments and supplements Decree 193/2013/ND-CP elaborating on certain articles of the Law on Cooperatives

DECREE

AMENDMENTS AND SUPPLEMENTS TO GOVERNMENT’S DECREE NO. 193/2013/ND-CP DATED NOVEMBER 21, 2013, ELABORATING ON CERTAIN ARTICLES OF THE LAW ON COOPERATIVES

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Cooperatives dated November 20, 2012;

Upon the request of the Minister of Planning and Investment,

The Government hereby promulgates the Decree on amendments and supplements to the Government’s Decree No. 193/2013/ND-CP dated November 21, 2013, elaborating on certain articles of the Law on Cooperatives.

Article 1. Amendments and supplements to the Government’s Decree No. 193/2013/ND-CP dated November 21, 2013, elaborating on certain articles of the Law on Cooperatives

1. Combining point a and point b together to create point a, shifting from point c to point b of clause 2, and amending clause 3 of Article 5 as follows:

“Article 5. Supply of products or services to non-member customers

2. The rate of products, services or employments supplied and consumed under commitments made by cooperatives or associations of cooperatives to their members, or by member cooperatives to non-member customers, shall be clearly specified in statutes of cooperatives, but not exceed the following prescribed maximum limits:

a) 50% of total value of agricultural and non-agricultural products or services supplied by cooperatives and associations of cooperatives.

b) As regards cooperatives that generate employments, wages and salaries paid to non-member employees working under indefinite-term employment contracts shall not exceed 30% of total payroll of all of their employees working under indefinite-term employment contracts.

3. Receipt of deposits and grant of credit to customers that are not members of people's credit funds shall be subject to regulations enshrined in the Law on Credit Institutions and the State Bank’s instructions.”

2. Repealing point d of clause 3 of Article 16

3. Amending point c of clause 1 and inserting clause 3 of Article 21 as follows:

“Article 21. Disposition of non-divisible property of cooperatives or associations of cooperatives in case of bankruptcy or business closure

c) Value of property acquired from annual capital investment funds and accepted as non-divisible property according to decisions of members' general meetings in case cooperatives or associations of cooperatives close their business; assets that are agreed upon as non-divisible gifted and donated property; other equity and assets prescribed by statutes of cooperatives or associations of cooperatives as non-divisible property in case of their business closure shall be transferred under decisions of members' general meetings to local authorities or other organizations (transfer of them to other cooperatives or associations of cooperatives is preferred) located in the same localities as these cooperatives or associations of cooperatives in order to meet objectives of serving public interests of population in these localities.

3. The Ministry of Finance shall preside over and cooperate with related entities in providing instructions for disposition (including closeout) of property acquired from different funding sources (e.g. grants, aids or subsidies of the State or of annual capital investment funds, or contributed capital of members of cooperatives, etc.) in case cooperatives or associations of cooperatives are bankrupt or close their business."

4. Amending clause 1 and inserting clause 4 of Article 23 as follows:

“Article 23. Regime for reporting of business results of cooperatives and associations of cooperatives

1. No later than January 15 every year, cooperatives and associations of cooperatives shall be required to submit reliable, sufficient and accurate review reports on the previous year’s business operations of cooperatives and associations of cooperatives to registration bodies and sectoral administrations.

4. The Ministry of Agriculture and Rural Development shall provide specific instructions about particular operations and regime for reporting of business operations of cooperatives and associations of cooperatives operating in the agriculture, forestry, aquaculture and salt industry.”

5. Adding point c to clause 1, amending and supplementing clause 2 of Article 25 as follows:

“Article 25. Support and preferential policies granted to cooperatives and associations of cooperatives operating in the agriculture, forestry, aquaculture and salt industry

1. Support for investment in development of infrastructure

c) Give priority to support for investment in development of infrastructure of cooperatives that render public utilities or those that help to consume products and those connected to value chains.

2. Policies on lease of land used for business operations of cooperatives and associations of cooperatives operating in the agriculture, forestry, aquaculture and salt industry.

a) Cooperatives and associations of cooperatives shall be entitled to exemption and relief policies on land and water surface rents specified in point g of clause 1, clause 9 of Article 19 and point a of clause 1 of Article 20 in the Government’s Decree No. 46/2014/ND-CP dated May 15, 2014 on renting of land and water surfaces, and clause 5, clause 6 and clause 7 of Article 3 in the Government’s Decree No. 135/2016/ND-CP dated September 9, 2016 on amendments and supplements to certain articles of the Decree prescribing collection of fees for use of land, renting of land and water surfaces.

b) Members and cooperatives whose members make capital contribution by investing their rights to own land and water surfaces for construction of working offices, drying grounds and storage facilities; construction of service facilities directly meeting the needs of agricultural, forestry, aquacultural and salt production of cooperatives and associations of cooperatives.

c) People’s Committees of provinces and centrally-affiliated cities shall direct Departments of Natural Resources and Environment to check demands, carry out land measurement and surveying, installation of markers and grant of certificates of land tenure and ownership of house and other property attached to land to cooperatives and associations of cooperatives at localities in accordance with laws on land.”

6. Adding clause 4 to Article 27 as follows:

“Article 27. Implementation of support and preferential policies

4. People’s Committees of provinces and centrally-affiliated cities shall, depending on actual conditions and particular characteristics of their localities, adopt and provide instructions on implementation of support policies for cooperatives and associations of cooperatives operating in the agriculture, forestry, aquaculture and salt industry under their authority."

7. Amending and supplementing clause 2 of Article 29 as follows:

“Article 29. Responsibilities of Ministries and Ministry-level agencies

2. Implement the state management of cooperatives and associations of cooperatives within their assigned duties and powers.

The Ministry of Agriculture and Rural Development shall provide specific instructions about responsibilities for state management of cooperatives operating in the agriculture, forestry, aquaculture and salt industry at all agricultural-bound levels of jurisdiction (provinces, districts or communes).”

Article 2. Entry into force and implementary responsibilities

1. This Decree shall enter into force from the signature date.

2. The Ministry of Planning and Investment shall preside over and cooperate with relevant ministries and sectoral administrations in providing instructions on, and shall have the burden of monitoring and expediting, the implementation of this Decree.

3. Ministers, Heads of Ministry-level agencies, Heads of Governmental bodies, and Chairpersons of People’s Committees of centrally-affiliated cities and provinces, shall be responsible for implementing this Decree./.