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Decree No. 28/2005/ND-CP on the Organization and Operation of Microfinance Institutions in Vietnam
(enacted in 2005)
Decree No. 28/2005/ND-CP on the organization and operation of microfinance institutions (MFIs) in Vietnam covers:
- Scope of regulation and the objects of application;
- Conditions under which licenses to MFIs can be issued, cancelled and revoked and the kind of procedures any MFI has to follow for the same;
- Organizational structure and management a MFI should have for carrying out its administrative functions and maintaining its control over opening and stopping of operations of different defaulting units;
- Capital mobilization and credit activities any MFI can engage in;
- Accounting and reporting mechanisms;
- Special control and powers that the State Bank of Vietnam has in cases of bankruptcy, dissolution and liquidation of any MFI; and
- Penalties and sanctions likely to be invoked in case of violation of this regulation.
This decree was subsequently amended, supplemented and partially annulled by Decree No. 165/2007/ND-CP and SBV Circular No. 07-2009-TT-NHNN which can both be found under “Related Amendments.”