Decision on the Establishment of the Vietnam Securities Depository

PRIME MINISTER

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No. 171/2008/QD-TTg

SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

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Hanoi, December 18, 2008

DECISION

On the Establishment of the Vietnam Securities Depository

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PRIME MINISTER

Pursuant to the Law on the Organization of the Government dated December 25, 2001; Pursuant to the Law on Securities dated June 29, 2006;

Considering the proposal of the Minister of Finance,

DECIDES:

Article 1.

Establish the Vietnam Securities Depository based on the conversion and reorganization of the Securities Depository Center (established pursuant to Decision No. 189/2005/QD-TTg dated July 27, 2005), a revenue-generating public service unit, to operate under the model of a single-member limited liability company owned by the State.

• International trading name: Vietnam Securities Depository.
• Abbreviation: VSD.

Article 2.

The Vietnam Securities Depository has legal person status, possesses its own seal; is permitted to open accounts at the State Treasury, domestic commercial banks, and foreign banks; is an independent accounting unit with financial autonomy; and implements financial regimes, reporting, statistics, accounting, and auditing in accordance with legal regulations.

The Vietnam Securities Depository has its head office in Hanoi and a branch in Ho Chi Minh City. Based on the development of the securities market, the Ministry of Finance decides on the establishment of additional branches in provinces and centrally run cities.

Article 3.

The Vietnam Securities Depository has the function of organizing the registration, custody, clearing, and settlement of securities, and providing services to support the completion of securities transactions for securities listed on the Stock Exchange, the Securities Trading Center, and securities of unlisted public companies, in accordance with legal regulations.

The Vietnam Securities Depository inherits all rights and responsibilities of the Securities Depository Center and exercises rights and obligations stipulated in the Law on Securities, the Law on Enterprises, the Charter of Organization and Operation of the Vietnam Securities Depository, and other relevant legal regulations.

Article 4.

The operating capital of the Vietnam Securities Depository includes:

1. Charter capital: 1,000 billion VND (one thousand billion VND), including: a) State budget capital allocated, transferred from the Securities Depository Center; b) Additional State budget capital during the operation process.

2. Self-supplemented capital from after-tax profits and other legal capital sources.

3. Other legal borrowing and mobilized capital sources for investing in technical infrastructure development.

Article 5.

Organizational Structure and Operation

1. The management and executive body of the Vietnam Securities Depository includes the Board of Directors, the General Director, the Supervisory Board, and supporting departments.

2. The Vietnam Securities Depository applies the safety bonus regime; managers of the Center are subject to salary classification according to the General Corporation category.

3. The organizational structure and operation of the Vietnam Securities Depository are specifically stipulated in the Charter of the Center.

Article 6.

Responsibilities of Agencies

1. Ministry of Finance: a) Approve the Charter of Organization and Operation of the Vietnam Securities Depository; issue financial mechanisms and approve the positions of Chairman and members of the Board of Directors, and the General Director of the Vietnam Securities Depository, upon the proposal of the Board of Directors, after receiving opinions from the Chairman of the State Securities Commission. b) Coordinate with relevant Ministries and sectors to guide the implementation of this Decision. c) The State Securities Commission issues the Business Registration Certificate; manages and supervises the operation of the Vietnam Securities Depository.

2. The Ministry of Labor, War Invalids and Social Affairs coordinates with the Ministry of Finance to guide the Vietnam Securities Depository in implementing salary classification and safety bonus regimes according to current regulations.

3. The Board of Directors and General Director of the Vietnam Securities Depository are responsible for organizing the operation of the Vietnam Securities Depository in strict accordance with legal regulations.

Article 7. This Decision takes effect 15 days after the date of publication in the Official Gazette and replaces Decision No. 189/2005/QD-TTg dated July 27, 2005, of the Prime Minister on the establishment of the Securities Depository Center.

Article 8.

The Minister of Finance, the Chairman of the State Securities Commission, Ministers, heads of ministerial-level agencies, heads of agencies under the Government, and Chairmen of People's Committees of relevant provinces and centrally run cities are responsible for the implementation of this Decision.

Distribution:

• Central Secretariat of the Communist Party of Vietnam;
• Prime Minister, Deputy Prime Ministers;
• Ministries, ministerial-level agencies, agencies under the Government;
• Office of the Central Steering Committee for Anti-Corruption;
• People's Councils and People's Committees of provinces and centrally run cities;
• Central Office and Departments of the Party;
• Office of the President;
• National Assembly's Ethnic Council and Committees;
• National Assembly Office;
• Supreme People's Court;
• Supreme People's Procuracy;
• State Audit Office;
• National Financial Supervisory Committee;
• Social Policy Bank;
• Vietnam Development Bank;
• Central Committee of the Vietnam Fatherland Front;
• Central agencies of mass organizations;
• State-owned Economic Groups, General Corporations 91;
• Government Office: Central Secretariat, Deputy Secretariats, Electronic Portal, Departments, Bureaus, subordinate units, Official Gazette;
• Filed: Secretariat, General Administration (5 copies).

PRIME MINISTER

(Signed)

Nguyen Tan Dung