Is the Disaster Management Fund allowed to have accounts opened at the State Treasury of Vietnam and commercial banks?
- Is the Disaster Management Fund allowed to have accounts opened at the State Treasury of Vietnam and commercial banks?
- May the Disaster Management Fund in Vietnam operate like a joint-stock company?
- What are the financial sources of the Disaster Management Fund in Vietnam?
- What are the regulations on the management and governance apparatus of the Vietnam Disaster Management Fund?
Is the Disaster Management Fund allowed to have accounts opened at the State Treasury of Vietnam and commercial banks?
Under the provisions of Clause 1 Article 3 of Decree 78/2021/ND-CP on the name and legal status of the Disaster Management Fund:
Name and legal status of the Disaster Management Fund
1. The Disaster Management Fund is a state extra-budgetary financial foundation having its legal personality, its own seal and allowed to have its accounts opened at the State Treasury and commercial banks legally operating in Vietnam.
2. The Central Disaster Management Fund is established by the Government under the provisions of this Decree and run by the Ministry of Agriculture and Rural Development. Its international name is Vietnam Disaster Management Fund, abbreviated to VNDMF.
3. Provincial disaster management funds (hereinafter referred to as provincial DMF) are established under the approval decisions of Presidents of the People's Committees of centrally-affiliated cities and provinces, and run by the People's Committees of centrally-affiliated cities and provinces. The Fund of each province or centrally-affiliated city is named after the name of that province or centrally-affiliated city.
...
Under the above regulations, the Disaster Management Fund is a state extra-budgetary financial foundation having its legal personality, its own seal and allowed to have its accounts opened at the State Treasury and commercial banks legally operating in Vietnam.
Thus, the Disaster Management Fund is allowed to have its accounts opened at the State Treasury and commercial banks legally operating in Vietnam.
May the Disaster Management Fund in Vietnam operate like a joint-stock company?
Under Clause 4 Article 3 of Decree 78/2021/ND-CP on the name and legal status of the Disaster Management Fund:
Name and legal status of the Disaster Management Fund
...
4. Each DMF operates like a single-member limited liability company of which the charter capital is wholly held by the State.
Thus, according to the above-mentioned regulations, each Disaster Management Fund operates like a single-member limited liability company of which the charter capital is wholly held by the State.
Therefore, the Disaster Management Fund in Vietnam is not allowed to operate like a joint-stock company.
What are the financial sources of the Disaster Management Fund in Vietnam?
According to the provisions of Article 6 of Decree 78/2021/ND-CP on financial sources:
Financial sources
1. Grants, aids, voluntary and trusted contributions of domestic and foreign organizations and individuals. Voluntary contributions, grants, aids and financial support given to the Fund shall be included in CIT-deductible expenses.
2. Amounts granted by provincial Funds according to the Prime Minister’s decision.
3. Interest earned from deposit accounts.
4. Other legitimate finances (if any).
5. Balance in the last year that may be carried forward to the subsequent year.
Thus, according to this regulation, the financial resources of the Disaster Management Fund in Vietnam include:
- Grants, aids, voluntary and trusted contributions of domestic and foreign organizations and individuals. Voluntary contributions, grants, aids and financial support given to the Fund shall be included in CIT-deductible expenses.
- Amounts granted by provincial Funds according to the Prime Minister’s decision.
- Interest earned from deposit accounts.
- Other legitimate finances (if any).
- Balance in the last year that may be carried forward to the subsequent year.
What are the regulations on the management and governance apparatus of the Vietnam Disaster Management Fund?
Under Article 5 of Decree 78/2021/ND-CP, there are specific management and governance apparatus as follows:
VNDMF is composed of: Management Board, Control Board and the agency running the VNDMF.
- VNDMF’s Management Board is composed of fewer than 09 members, including: Chair, Vice Chairs and other members.
+ The Board’s Chair is the Minister of Agriculture and Rural Development.
+ The VNDMF’s Management Board is joined by 02 Vice Chairs and members appointed or approved by the Chair of the VNDMF’s Management Board at the recommendation of the agency running the VNDMF.
+ The VNDMF’s Management Board uses the machinery of the standing agency for disaster prevention and control as the agency running the VNDMF.
+ The working regime, tasks and powers of the Board’s members are assigned by the Chair of the Fund’s Management Board and are implemented under the Regulations on organization and operation of the VNDMF issued by the Chair of the Fund’s Management Board at the request of the agency running the VNDMF.
- The VNDMF’s Control Board shall have no more than 05 members, including the Head of the Control Board and members.
+ The Head of the Control Board shall be appointed or approved by the Chair of the VNDMF’s Management Board at the recommendation of the VNDMF’s Management Board.
+ The working regime, tasks and powers of the Control Board shall be subject to the Regulations on organization and operation of the VNDMF.
- The agency running the VNDMF is composed of the Director, Deputy Directors and specialized and professional units.
+ The VNDMF’s Director is appointed or approved by the Chair of the VNDMF's Management Board, and is the legal representative of the VNDMF. The VNDMF's Director is entitled to sign contracts in accordance with law for a number of jobs serving the Fund's operations and bears legal liability.
+ Deputy Directors and Chief Accountant are appointed or dismissed by the Chair of the VNDMF’s Management Board at the recommendation of the VNDMF's Director.
+ Professional and specialized units are decided by the Chair of the VNDMF’s Management Board at the recommendation of the VNDMF's Director.
+ The working regime, tasks and powers of the agency running VNDMF are assigned by the Chair of the VNDMF’s Management Board and are expressed in the Regulations on organization and operation of the VNDMF.
LawNet