The Government has just issued Decree No. 240/2025/ND-CP dated September 3, 2025 regulating the establishment, management and use of the Policy Fund and the National Defense External Relations Fund.
According to the decree, the Policy and Defense Foreign Affairs Fund (hereinafter referred to as the Fund) is a state financial fund outside the budget, with legal status, its own seal and is allowed to open an account at a commercial bank operating legally in Vietnam.
The Government establishes a Policy and Defense Foreign Affairs Fund according to regulations. The Fund is located at the Ministry of National Defense, the Minister of National Defense decides on the organization of the apparatus, management mechanism, and promulgates the Regulations on the organization and operation of the Fund according to the provisions of this Decree.
The Decree clearly states: The state budget does not support the Fund's operating expenses. The management and use of the Fund must be for the right purposes, in accordance with the law, timely, effective, public and transparent.
One of the Fund's operating principles is not to accept contributions, sponsorships, or supports that harm national interests, security, national defense, violations of the law on corruption prevention and control, money laundering, terrorist financing, and other activities contrary to the law. At the same time, the Fund also does not support organizations and individuals to operate illegally in violation of Vietnamese law.
According to the decree, the Fund receives, manages and uses contributions, sponsorships, and donations in cash and in kind from enterprises, organizations, and individuals inside and outside the Army to carry out policy work and defense diplomacy.
The fund is responsible for supporting policy and defense foreign affairs activities that the state budget has not yet guaranteed or has guaranteed but has not met practical requirements.
At the same time, the Fund must implement the reporting and accounting regime according to the provisions of this Decree and other relevant legal provisions. Comply with inspection, examination and auditing by competent state agencies according to the provisions of law.
The Fund is allowed to use the Fund's idle operating budget to deposit savings for a maximum term of no more than 12 months at commercial banks with the purpose of increasing the Fund's operating budget.
The Decree clearly states that the Fund Management Board includes the Chairman, Vice Chairman and members.
The Chairman of the Fund is appointed and dismissed by the Minister of National Defense; the Vice Chairmen and members are decided by the Minister of National Defense on the number, appointment and dismissal according to the proposal of the Chairman of the Fund.
The agencystanding to manage the Fund is appointed by the Minister of National Defense.
The tasks, powers, and working regime of the Management Board and the standing agency of the Fund are prescribed by the Minister of National Defense.
According to the decree, the Fund is formed from contributions, support, and sponsorship in money, assets, and in kind of organizations, individuals, and enterprises inside and outside the Army; revenue from deposit interest; other sources of contributions, support, sponsorship, and revenue according to the provisions of law.
The above financial sources are received at the Fund management agency directly or through accounts opened at banks according to regulations.
In case of receiving contributions, support, and sponsorship in cash: The Fund shall receive them directly in cash or through the account of the Fund opened at a commercial bank operating legally in Vietnam.
