Accordingly, People’s Councils and People’s Committees of provinces and central-affiliated cities are allowed to get loans in the forms of: issuing municipal bonds; borrowing funds on-lent from the ODA loans; getting loans directly from domestic financial institutions or credit institutions; borrowing money from state funds; getting loans from financial reserve fund.
However, the People’s Councils and People’s Committees of provinces and central-affiliated cities are not allowed to directly ask for foreign loans and are not allowed to act as a guarantor for any organizations or individuals for their domestic or foreign loans or bond issues.
In addition, the scope of state compensation liability is also enlarged. Accordingly, the State shall be liable for damages upon unlawfully applying one of the following remedial measures for administrative violations:
- Enforce elimination of infringement on products, packages, business facilities, or articles;
- Enforce recall of unqualified products and goods.
This Law shall come into force from July 1st, 2018 and replace the Law on State compensation liability No. 35/2009/QH12 dated June 18th, 2009.