Article 1.- To ratify the Organization and Operation Charter of Vietnam Deposit Insurance, enclosed herewith.

Article 2.- This Decision takes effect after its signing.

Article 3.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People�s Committees of the provinces and centrally-run cities and the chairman of the Managing Board of Vietnam Deposit Insurance shall have to implement this Decision.

For the Prime Minister
Deputy Prime Minister
NGUYEN TAN DUNG

Chapter I

GENERAL PROVISIONS

Article 1.- Vietnam Deposit Insurance is a State-run financial organization set up under the Prime Minister�s Decision No. 218/1999/QD-TTg of November 9, 1999, with a view to protecting the legitimate rights and interests of money depositors, contributing to maintaining the stability of organizations participating in deposit insurance as well as the safe and healthy development of banking operations.

Article 2.- Vietnam Deposit Insurance has its international transaction name in English as Deposit Insurance of Vietnam, abbreviated to DIV.

Article 3.- DIV has the legal person status, has its head office located in Hanoi, has its charter capital of 1,000 billion VND allocated by the State and supplemented from the deposit insurance premium amount collected annually and has its own seal; is entitled to open accounts at the State Bank, the State Treasury as well as domestic and foreign credit institutions prescribed by law; has the balance sheet and is entitled to set up funds according to law provisions.

Article 4.- DIV operates for non-profit purposes, ensuring the capital safety, self-financing and enjoying tax exemption according to law provisions.

Article 5.- DIV is managed and administered by the Managing Board, the Control Commission and the general director.

Article 6.- The Communist Party of Vietnam organization as well as socio-political organizations within DIV shall operate according to the Constitution and law.

Chapter II

CONTENTS OF OPERATION, TASKS AND POWERS

Section I. CONTENTS OF OPERATION

Article 7.- DIV may conduct the following professional operations:

1. Collecting the deposit insurance premiums from the deposit insured.

2. Paying insurance to money depositors.

3. Monitoring, supervising and inspecting the observance of regulations on deposit insurance and regulations on safety in operation of the deposit insured.

Article 8.- DIV has the tasks to:

1. Receive, manage and use for the right purposes capital, land and other sources allocated by the State.

2. Fulfill commitments on insurance payment to money depositors when a deposit insured has to terminate its operations under the written decision of the competent State agency and falls into the insolvency.

3. Fulfill commitments to the deposit insured and other commitments which fall under DIV�s responsibility.

4. Operate in strict compliance with the Government�s stipulations on deposit insurance and this Charter; take responsibility for the results of the deposit insurance activities; keep secret the deposit data and documents related to deposit insurance of the deposit insured according to law provisions.

5. Elaborate the development strategy and operation plan on deposit insurance in conformity with the tasks assigned by the Prime Minister.

6. Study and propose to the competent State agencies the promulgation or amendment and/or supplement of the regulations related to deposit insurance activities as well as regulations on safety in banking operations.

7. Renovate and modernize technologies and managerial mode in conformity with the development requirements of DIV.

8. Perform the obligations towards laborers according to the provisions of law.

9. Submit to the inspection and abide by the regulations on examination, inspection and audit by the competent State agencies according to the provisions of law.

10. Observe the State�s regulations on the management of capital, assets and funds as well as the accounting, auditing, statistical and reporting regimes and take responsibility for the accuracy of the reports thereon.

Article 9.- DIV has the right:

1. To manage and use its charter capital; capital supplemented from the source of insurance premiums collected from the deposit insured as well as the sources of capital received and borrowed according to regulations.

2. To assign, lease, mortgage or pledge assets under its management according to law provisions.

3. To request the deposit insured to regularly or irregularly provide documents, information and reports on their operation and business situation; to apply measures for handling the violations of regulations on safety in banking operations and the danger of insolvency.

4. To conduct the regular or irregular inspection of the observance of the Government�s regulations on deposit insurance as well as the regulations on safety in operations of the deposit insured.

5. To propose the State Bank to take measures for dealing with the deposit insured that violate the regulations on safety in banking operations and are in danger of insolvency.

Article 10.- DIV�s organizational apparatus is composed of the Managing Board, the Control Commission and the executive apparatus, comprising the general director and the assisting apparatus.

Section I. MANAGING BOARD AND CONTROL COMMISSION

Article 11.- The Managing Board shall perform the management function and take responsibility for annual operations of DIV according to the provisions of this Charter.

Article 12.- Tasks and powers of the Managing Board

1. To receive capital, land and other resources assigned by the State.

2. To submit to the Prime Minister for ratification the long-term deposit insurance development strategy.

3. To inspect and supervise operations of DIV.

4. To approve and submit to the Prime Minister for ratification the plan on borrowing and using the Government�s special support capital as well as the plan on adjusting the deposit insurance premium and the maximum insured deposit amount.

5. To ratify the annual operation plan of DIV; and the plan on borrowing and using capital borrowed from other organizations.

6. To approve the plan on support for the deposit insured as well as plan on the payment of insurance money at the deposit insured which are declared to terminate their operations and insolvent.

7. To approve the plan on investment of the temporarily idle capital as prescribed by the Charter as well as the financial management regulations.

8. To decide or submit to the State Bank Governor for decision the plan on cooperation with domestic and foreign organizations.

9. To give its opinions or propose to the Ministry of Finance and the Ministry of Labor, War Invalids and Social Affairs to submit such opinions to the Prime Minister for ratification or adjustment of the DIV�s financial and wage regimes.

10. To decide or propose commendation and reward for organizations and individuals that make great contributions to DIV; to commend and reward units and individuals within DIV; to approve and supervise the implementation of the labor and wage regulations within DIV.

11. To propose the State Bank Governor and the Minister-Head of the Government Commission for Organization and Personnel to submit to the Prime Minister the appointment, dismissal, commendation or discipline of members of the Managing Board and the general director. To submit to the State Bank Governor the appointment, dismissal, commendation or discipline of the deputy general directors of DIV.

12. To ratify the plan on organization of DIV�s executive apparatus and payroll; to decide the opening of DIV�s branches and representative offices as well as the section assisting the Managing Board; to decide the appointment, dismissal, commendation or discipline of members of the Control Commission, directors of branches and representative offices of DIV.

13. To ratify the annual financial plan and plan on renovation of DIV�s technologies and equipment.

14. To approve DIV�s annual financial statements and operation reports.

15. To ratify the operation plan of the Control Commission.

16. To issue regulations on internal protection and confidentiality in the operations of DIV.

17. To handle complaints and denunciations related to DIV according to its competence or report such to the competent authorities for handling.

18. To ratify the scientific- technical research and cooperation programs in service of the deposit insurance activities; to organize the personnel training and fostering.

19. To issue the Regulation on organization and operation of DIV�s Managing Board.

20. To ratify and decide other issues according to its competence.

Article 13.- Organizational structure and working regime of the Managing Board

1. DIV�s Managing Board is composed of 5 members, including 3 full-time members being its chairman, the general director and the head of the Control Commission; and 2 part-time members being a Vice-Minister of Finance and a Deputy Governor of the State Bank.

2. The Managing Board�s term is 5 years. The members of the Managing Board may be re-appointed. A member of the Managing Board may be replaced or dismissed at the proposal of the chairman of the Managing Board in the following cases:

a/ He/she gets a decision on retirement, job transfer or other posting;

b/ He/she asks for resignation with plausible reasons;

c/ He/she is no longer capable of performing his/her duty;

d/ He/she has breached law or DIV�s Charter.

3. The chairman of the Managing Board shall have to organize the performance of tasks and exercise of powers of the Managing Board as prescribed in Article 12 of this Charter.

4. Working regime of the Managing Board:

a/ The Managing Board adopts the collective working regime and regularly meets at least once a quarter to consider and decide matters within its tasks and powers. When necessary, the Managing Board may hold extraordinary meetings at the request of its chairman or the general director, or the head of the Control Commission or at the request of other member(s), with the consent of the chairman;

b/ The chairman of the Managing Board shall convene and chair all its meetings. In case of his absence with plausible reasons, the chairman may authorize another member of the Managing Board to convene and chair a meeting. Where a meeting is necessary but cannot be held, the chairman of the Managing Board may ask for written opinions of the other members;

c/ All meetings of the Managing Board must be attended by at least 4/5 of the total of its members;

d/ The Managing Board�s resolutions and decisions shall take effect only when they are voted for or approved in writing by at least 3/5 of the total number of the Managing Board members.

If a member of the Managing Board disagrees with the Managing Board�s resolution(s) or decision(s), he/she may reserve his/her opinion but still has to abide by such resolution(s) or decision(s) and can report such to the competent State agency for settlement.

The contents and conclusions of a meeting of the Managing Board must be recorded in a minutes signed by the meeting�s chairman as well as the head of the Control Commission or another member of the Managing Board who is present at the meeting;

e/ When DIV�s Managing Board meets to consider issues related to different ministries and/or branches, it may invite competent representatives of such ministries or branches to attend the meeting;

f/ The resolutions and decisions of the Managing Board shall be binding to all units (departments and sections at the head office in Hanoi, branches and representative offices) and individuals within DIV;

g/ The expenses for operations of the Managing Board, the Control Commission as well as the assisting section of the Managing Board, including wages, allowances and other operational expenses, shall be accounted into DIV�s managerial costs. The general director shall ensure necessary working conditions and facilities for the Managing Board, the Control Commission and the assisting section.

5. The Managing Board shall use the DIV�s executive apparatus and seal to perform its tasks.

Article 14.- Assisting section of the Managing Board

The Managing Board shall set up an assisting section composed of no more than 5 full-time and a number of part-time cadres who shall assist the part-time members of the Managing Board. The chairman of the Managing Board shall decide, select, replace, reward or discipline the personnel and determine the functions as well as tasks for the assisting section of the Managing Board.

Article 15.- Interests and responsibilities of members of the Managing Board

1. The full-time members shall be paid with the basic salary according to scale of State employee ranks and grades and enjoy wages as well as bonuses according to the wage and bonus regime prescribed for DIV.

2. The members of the Managing Board must not:

a/ Abuse their positions for self-seeking or commit acts of appropriating operational opportunities and causing harm to DIV�s interests;

b/ Act beyond their competence provided for in this Charter.

3. The chairman of the Managing Board and the general director of DIV are not allowed to:

a/ Set up enterprises in their own names, and take part in the management and administration of such enterprises;

b/ Establish, in the name of DIV, relations through economic contracts with private enterprises, limited liability companies, joint-stock companies or partnerships where their husbands, wives, parents or offspring hold the managerial or executive positions.

4. The wives, husbands, parents, offspring and siblings of the chairman or members of DIV�s Managing Board or general director are not allowed to hold the positions of chief accountant and cashier of DIV.

5. Members of the Managing Board shall take responsibility before law for resolutions and decisions of the Managing Board. Any member who fails to fulfil his/her assigned tasks, violates the Charter, makes wrong or ultra vires decisions or abuses his/her powers, thus causing harm to DIV�s operations and the State, shall have to take responsibility and pay material compensation for the damage he/she has caused according to the provisions of law.

Article 16.- Control Commission

1. The Control Commission, which is composed of 3 full-time and a number of part-time members, is set up to assist the Managing Board in supervising and inspecting all DIV�s activities, including the management of operations and observance of law and its Charter. The members of the Control Commission (except for its head) shall be appointed and dismissed by the chairman of the Managing Board at the proposal of the Control Commission�s head.

2. A member of the Control Commission must not be the wife, husband, father, mother, offspring or sibling of the general director, deputy general director or chief accountant of DIV. Such members must not concurrently hold any positions in DIV�s executive apparatus.

3. Members of the Control Commission must fully meet the following criteria:

a/ Having been trained in the fields of accountancy, auditing, economics, insurance, finance or banking and having law knowledge;

b/ Having worked in the above-mentioned fields for not less than 5 years;

c/ Having no criminal records.

4. A term of a Control Commission member is 5 years. The Control Commission members may be re-appointed. During their work, if failing to fulfil their tasks, they shall be replaced.

5. Wages and bonuses of the Control Commission members shall comply with the provisions of the wage and bonus regime prescribed for DIV.

Article 17.- The Control Commission shall take responsibility before DIV�s Managing Board for the control of all DIV�s operations and have the following tasks and powers:

a/ To inspect and supervise the observance of undertakings, resolutions and decisions of the Managing Board and laws in the DIV�s operations, with a view to raising the efficiency of DIV�s operations, ensuring safety for the State�s assets as well as interests of the DIV and the deposit insured; to regularly report to the Managing Board on the results of inspection and supervision, and propose handling measures;

b/ To carry out its work independently under the program already ratified by the Managing Board;

c/ To consider complaints of organizations and individuals, which are related to DIV�s operations before submitting them to the Managing Board for settlement;

d/ To use DIV�s internal control apparatus and working facilities to perform its tasks;

e/ To perform other tasks assigned by the Managing Board.

Section II. GENERAL DIRECTOR AND ASSISTING APPARATUS

Article 18.- General director and assisting apparatus

1. The general director shall represent the legal person of DIV, take responsibility before the Managing Board and law for the administration of DIV�s operations.

2. The deputy general directors shall assist the general director in running one or a number of fields of operation of DIV under the general director�s assignment and be answerable to the general director.

3. DIV�s office, its professional and specialized departments and sections shall have the function of advising and assisting the Managing Board and the general director in managing and running the work.

Article 19.- Tasks and powers of the general director

1. To sign, together with the chairman of the Managing Board, the reception of capital (including debts), land and other resources assigned by the State for management and use by the DIV according to the set objectives. To allocate resources received from the State to DIV�s branches and representative offices (if any) according to the plan approved by the Managing Board. To propose to the Managing Board the plan on adjustment of capital and other resources.

2. To efficiently use and develop capital under the plan approved by the Managing Board.

3. To elaborate DIV�s deposit insurance development strategy and annual operation plan, projects on cooperation with foreign countries and plan on economic partnership, submit them to the Managing Board and the competent State authorities and organize the implementation thereof when they are ratified.

4. To administer the DIV�s operations and take responsibility for its operations� results.

5. To work out and submit to the Managing Board for ratification the regulations, labor and wage norms in conformity with the general regulations of the State.

6. To propose the Managing Board to appoint, dismiss, reward or discipline the directors of DIV�s branches or representative offices. To decide the appointment, dismissal, reward or discipline of the heads and deputy heads of DIV�s departments and sections as well as the deputy directors of DIV�s branches or representative offices.

7. To submit to the Managing Board the organizational model together with the apparatus staff and adjustment plan therefor in case of any changes, and organize the realization thereof after they are ratified. To issue the Regulation on organization and operation of the branches and representative offices after it is ratified by the Managing Board.

8. To submit to the Managing Board for ratification the regulations on commendation and discipline applicable within DIV.

9. To organize the administration of DIV�s operations according to the resolutions and decisions of the Managing Board; to report to the Managing Board and the competent State agencies on the results of DIV�s operations.

10. To refuse and denounce all requests of any individuals or organizations to supply resources not prescribed by law, except for voluntary contributions for charity and public-utility purposes.

11. To fully supply documents at the request of the Managing Board and the Control Commission; to prepare documents for meetings of the Managing Board.

12. To submit to the inspection and supervision of the performance of his/her executive tasks by the Managing Board, the Control Commission and the competent State bodies.

13. To decide the application of measures beyond his/her jurisdiction in urgent cases (the deposit insured become insolvent due to natural calamities, enemy sabotage, fires or incidents) and take responsibility for such decisions; then to report immediately such to the Managing Board and the competent State bodies.

14. To exercise other rights prescribed by law.

Section III. BRANCHES, REPRESENTATIVE OFFICES

1. The DIV may set up its branches and/or representative offices where necessary. Such branches and representative offices shall be DIV�s dependent units. Their functions, tasks and powers shall be determined by the general director after they are approved by the Managing Board.

2. The branches and representative offices shall be the dependent cost-accounting units that have their own seals and be entitled to open their own accounts at the State Bank, State-run credit institutions or State Treasury.

Chapter IV

FINANCE OF DEPOSIT INSURANCE OF VIETNAM

Article 21.- DIV is an independent cost-accounting unit with financial autonomy in its operations in accordance with the provisions of law.

Article 22.- Operating capital

1. DIV�s operating capital includes:

a/ The charter capital of 1,000 billion VND, allocated by the State;

b/ The capital source added annually from the collected deposit insurance premium amount;

c/ The other capital sources.

2. DIV is not allowed to use its operating capital for purposes contrary to the provisions of law.

3. In case of an increase or decrease of its operating capital, DIV must make the prompt adjustment in its balance sheet and report to the competent State agency on its actually adjusted capital amount.

Article 23.- DIV shall be entitled to set up and use funds to ensure its operation and development process in accordance with the provisions of law.

Article 24.- Finance of DIV

1. To operate on the principle of financial autonomy and self-balancing of its revenues and expenditures, ensuring safety and development of the operating capital.

2. To take responsibility for the payment of debts and fulfillment of other financial commitments (if any) of DIV.

3. To effect the accountancy accounting according to the system of accounting accounts prescribed by the Finance Ministry.

4. To take responsibility for elaboration of DIV�s financial plans, financial statements and balance sheet as prescribed by law.

5. To strictly abide by the Ordinance on Accounting and Statistics.

6. To submit to the inspection and supervision of its finance and business activities by the competent State bodies as prescribed by law.

7. To effect the wage and remuneration regime as well as the expenditure of wage nature of DIV according to the Prime Minister�s decision at the proposal of the Ministry of Labor, War Invalids and Social Affairs and opinions of DIV�s Managing Board.

8. DIV�s financial regime shall be decided by the Prime Minister based on the proposal of the Finance Ministry and opinions of the State Bank.

Chapter V

DIV�S RELATIONSHIPS WITH THE COMPETENT STATE BODIES AND CONCERNED ORGANIZATIONS

Article 25.- DIV�s relationship with the Finance Ministry

1. To submit to the State management by the Finance Ministry over its the observance of the financial and accounting regimes as well as the organization of its accounting and accountancy apparatus.

2. To submit to the management by the Finance Ministry which shall act in its capacity as the agency assigned by the Government to perform a number of functions of the owner in the following domains:

a/ To determine capital and other resources assigned by the State to DIV for management and use;

b/ To inspect the efficient use and development of capital and other resources assigned to DIV in its operation process;

c/ To examine and inspect the contents of the annual financial statements and final account settlements.

3. To submit to examination and inspection of other matters which fall under the competence of the Finance Ministry.

4. To be entitled to propose solutions to financial mechanisms and policies related to DIV.

Article 26.- DIV�s relationship with the Vietnam State Bank

1. To submit to the management by the State Bank in the following domains:

a/ The observance of the regulations on deposit insurance;

b/ The implementation of other relevant contents prescribed by the State Bank Governor;

2. To obey to and coordinate with the latter in a number of domains:

a/ The supervision and inspection of the deposit insured;

b/ The regime of information and reporting on matters related to the deposit insurance activities as prescribed in the Government�s Decree on deposit insurance;

c/ The application of measures to handle the deposit insured.

Article 27.- The Prime Minister authorizes the State Bank Governor:

1. To supervise operations of DIV�s Managing Board and have the competence:

a/ To attend the Managing Board�s meetings when necessary;

b/ To receive regular and irregular reports, including reports of the Control Commission and resolutions of the Managing Board. If detecting any errors in the reports, disagreeing with the contents of the Managing Board resolutions, to work directly with the Managing Board for consideration of the uniform handling or readjustment of such resolutions� contents. Where the errors in the operations and contents of resolutions of the Managing Board are contrary to the Government�s Decree on deposit insurance and other legal documents, such must be reported to the Prime Minister for consideration and decision.

2. To perform a number of other specific tasks assigned by the Prime Minister.

Article 28.- DIV�s relationship with the ministries and competent State management bodies: DIV shall submit to the State management by these agencies in the fields coming under their respective functions and jurisdiction prescribed by law.

Article 29.- DIV�s relationship with the local administrations of all levels: DIV shall submit to the State management by and observe the administrative regulations of, the People�s Councils and People�s Committees of all levels according to the provisions of law.

Article 30.- DIV�s relationship with the deposit insured: to exercise the rights and perform the functions according to this Charter and the provisions of law; to promote and support each other in the application of scientific and technical progresses in management and business.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 31.- Any amendments and/or supplements to this Charter shall be submitted by DIV�s Managing Board to the Prime Minister for decision.

Article 32.- The chairman of DIV�s Managing Board shall take responsibility for organization of implementation of this Charter.

For the Prime Minister
Deputy Prime Minister
NGUYEN TAN DUNG