Vietnam: What is the period of failing to serve in the education sector subject to the reimbursement of support funds?

What is the period of failing to serve in the education sector subject to the reimbursement of support funds in Vietnam?

Under Point a, Clause 1, Article 6 of Decree 116/2020/ND-CP on the reimbursement of support funds in Vietnam:

Reimbursement of support funds  

1. Pedagogy students required to reimburse funds for tuition support, living allowances, including:

a) Pedagogy students already receiving financial support policies have not served in the education sector for 2 years of receipt of graduation decisions;

b) Pedagogy students already receiving financial support policies and serving in the education sector fail to meet the seniority requirement prescribed in point a of clause 2 of this Article;

c) Pedagogy students receiving financial support policies change their field of study during their course period, drop out of school, fail to complete the training programs or are disciplined in the form of expulsion.

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According to the above regulation, pedagogy students already receiving financial support policies but failing to serve in the education sector for 2 years of receipt of graduation decisions must reimburse the support funds.

What is the period of failing to serve in the education sector subject to the reimbursement of support funds in Vietnam? (Image from the Internet)

What is the formula for calculating reimbursed costs in Vietnam?

Under Article 8 of Decree 116/2020/ND-CP, the reimbursed costs are calculated according to the formula:

S = (F / T1) x (T1 -T2)

Where:

- S denotes reimbursed cost;

- F denotes the amount of tuition support and living allowances or stipends funded by the state;

- T1 denotes the prescribed total time length of service in the education sector, which is the rounded number of months;

- T2 denotes the total time length of service in the education sector, which is the rounded number of months.

What are the regulations on recovery of reimbursed costs in Vietnam?

According to Article 9 of Decree 116/2020/ND-CP, the recovery of reimbursed costs in Vietnam is specified as follows:

- Annually, based on training and learning results of pedagogy students, teacher training institutions shall notify the list of students who fall into the subjects specified at Point c of Clause 1 of Article 6 of Decree 116/2020/ND-CP to the provincial People's Committees of the recovery of support funds granted to pedagogical students and their families according to the provisions of Clause 2 of Article 8 of Decree 116/2020/ND-CP.

- For pedagogy students required to reimburse the support funding according to the provisions of Points a and b of Clause 1 of Article 6 of Decree 116/2020/ND-CP, provincial People's Committees shall issue notices of recovery of the support funding based on which pedagogy students or their families fully pay the amount to be reimbursed according to the provisions of Article 8 of Decree 116/2020/ND-CP.

- Within 30 days after receipt of the competent authority’s decisions, students themselves or their families must contact authorities in charge of recovery of reimbursed costs to complete reimbursement procedures.

The maximum time limit for payment of reimbursement obligations shall be 4 years starting from the date of receipt of the reimbursement notice.

In case students or their families defer paying their reimbursement obligations according to the prescribed time limit, they must bear the maximum interest rate applicable to demand deposits as prescribed by the State Bank of Vietnam with respect to deferred payment of reimbursements. In case the State Bank does not specify the maximum interest rate applicable to demand deposits, they must bear the interest rate applicable to demand deposits as prescribed by Vietnam Joint Stock Commercial Bank for Industry and Trade at the time of fulfillment of their reimbursement obligations.

- Pedagogy students must reimburse costs according to the provisions of Clause 1 of Article 6 of Decree 116/2020/ND-CP. If they are beneficiaries of state policies or in difficult situation, based on specific and particular conditions of pedagogy students, provincial People’s Committees shall decide on the method of withdrawal of support funds, the policy of exemption, reduction or cancellation of the reimbursed costs owed.

- Costs recovered from pedagogical students shall be remitted into the state budget according to the current budget management authorization and in accordance with the State Budget Law on management of amounts remitted to the state budget.

- If pedagogy students or their families fail to fulfill their obligations to pay reimbursements to collecting authorities, these authorities shall have the right to file lawsuits to the Court in accordance with the law.