Under the decree, CAF is an off-budget state financial fund that operates as a single-member limited liability company with charter capital owned by the State or CAF is a non-profit financial organization that operates as a non-profit cooperative.
A co-operative scene (Photo: SGGP)
The self-financing fund is responsible for receiving and managing capital contributed or donated by cooperatives, cooperative alliance and members of the cooperatives according to the regulations.
The government decreed that the establishment of CAFs in cities and provinces aims to help develop the collective economy in the locality ensuring the necessity and feasibilities of the fund establishment.
The Decree also states the requirements of a new CAF establishment including the local CAF establishment scheme approved by competent agencies. The scheme must be comprised of basic contents according to Clause 3 Article 15 of the Decree and the minimum charter capital of VND20 billion (US$ 865,873).
