What are regulations on management of collection and collection plans of Provincial disaster management funds in Vietnam?

What are regulations on management of collection and collection plans of Provincial disaster management funds in Vietnam?

Pursuant to Article 15 of the Decree 78/2021/NĐ-CP stipulating management of collection and collection plans of Provincial disaster management funds in Vietnam as follows:

1. Heads of domestic and foreign economic organizations within localities shall be responsible for providing complete lists of plans for collection and payment of contributions to funds by individuals under their management and remitting them to provincial-level funds according to the norms specified in Clause 1 and Point b of Clause 3 of Article 12 herein shall be transferred to the accounts of provincial funds or the accounts at the district level under the mandate of provincial People's Committees.

2. Heads of agencies, organizations, non-business units of the Party, State, socio-political organizations and associations operated using the state budget’s funds as specified at Point a, Clause 3, Article 12 of the Decree shall be responsible for collecting contributions from officials, civil servants, public employees, persons paid wages, salaries and allowances and employees under their management and transferring them to the accounts of the provincial funds or to the accounts at the district level with authorization from the provincial People’s Committees.

3. The commune-level People's Committees shall take charge of collecting contributions from other laborers within their remit according to the provisions of Point c, Clause 3, Article 12 of this Decree and transferring them to the district-level accounts with authorization from the provincial-level People's Committees. Collection of cash contributions must be proven by written evidence under the instructions from the Ministry of Finance.

4. Deadline for formulation and approval of the plan for collection and transfer of contributions of a provincial fund: By May 15 each year.

5. Deadline for transfer of contributions to a provincial fund: Individuals must make a one-off payment of contributions by July 31 each year; local domestic and foreign economic organizations must pay at least 50% of the required amount of contributions by July 31 and the rest by November 30 each year. In case of the prolonged disaster or disease causing large impacts, the Presidents of provincial People’s Committees may consider changing the deadline for payment of contributions or deciding whether exemption or reduction of contributions to the provincial fund is granted where appropriate.

6. Heads of agencies, organizations and district- or commune-level People’s Committees shall, based on payers, rates of contribution within their remit, persons or entities eligible for exemption, reduction or deferment of payment of contributions, develop collection plans to be executed by agencies, units and local authorities.

7. “Presidents of provincial-level People’s Committees shall provide each related agency or unit with instructions about the formulation, approval and notification of collection plans.   

a) Departments of Taxation in provinces and centrally-affiliated cities shall be responsible for cooperating with and directing district-level or regional Subdepartments of Taxation to support collection of contributions to the Fund, formulating collection plans and providing local domestic and foreign economic organizations with information about total value of existing assets determined according to annual financial reports made on December 31 each year; providing information prescribed in point i and k of clause 1 and clause 2 of Article 13 for agencies running provincial funds or district People’s Committees as a basis to formulate collection plans.    

b) Social Insurance agencies shall be responsible for providing information on the number of civil servants, public employees, persons paid wages, salaries, allowances, employees working in agencies, organizations and employees working under labor contracts of domestic and foreign economic organizations within their remit for agencies running funds of the provinces, the People's Committees of the districts and communes as a basis for the formulation of collection plans at all levels.

What are regulations on spending details of Provincial disaster management funds in Vietnam?

Pursuant to Article 16 of the Decree 78/2021/NĐ-CP stipulating spending details of Provincial disaster management funds in Vietnam as follows:

1. Spending on support for natural disaster response activities with priority given to the following activities:

a) Support for natural disaster response activities: Evacuating people out of dangerous areas; providing health care services; food and drinking water to those in muster areas; patrolling and detecting areas having risks of disasters or disaster prevention and control facility incidents; supporting forces called on to take response actions; supporting permanent forces performing on-call duties, commanding and ordering disaster response activities.

b) Disaster aid, assistance and relief: Providing emergency relief by donating food, drinking water, curative medicines, learning notebooks, materials and other essentials to those suffering from damage caused by natural disasters; supporting the repair of houses, health establishments and schools, and environmental remediation and sanitation in natural disaster-hit areas; supporting agricultural production for recovery of production activities in affected areas; dismantling items or obstacles likely to cause disasters; assisting in traffic assurance actions to ensure traffic smoothness on roads and railroads in affected areas in case of land collision or landslide; granting funds for repair, overhaul, treatment and construction of emergency projects for disaster prevention and control provided that total investment in each project does not exceed 03 billion dong. 

c) Support for disaster prevention activities: Providing information, communicating and providing education about disaster prevention and control activities; formulating and reviewing natural disaster prevention and control plans and natural disaster response plans, depending on natural disaster risk levels; assisting in movement of population out of disaster-hit and dangerous areas; disseminating, propagating, educating, providing training and educational courses for forces participating in natural disaster prevention and control at all levels in the localities and community; going on natural disaster prevention and control exercises at all levels; buying insurance against disaster risk for participants in the commune-level disaster prevention and control vanguards; providing training courses and maintaining activities for participants in dyke protection, people's dike management forces, commune-level disaster prevention and control vanguards, disaster prevention and control volunteers; assisting in creating tools, software, monitoring, disaster forecast and warning in the community; purchasing and investing in means and equipment used in disaster prevention and control activities according to regulations.

2. Based on expenditures of provincial funds prescribed in clause 1 of this Article and the amounts actually collected at specific local levels, provincial-level People’s Committees may decide to distribute the following amounts to district- or commune-level People's Committees as follows:

a) Commune-level People’s Committees retain 28% of contributions collected at communes at maximum to pay remunerations to directly collecting forces (5% or below); overheads incurred from collection of contributions (3% or below) and costs of implementation of disaster prevention and control activities at the commune level (20% or less). The remaining amount of contributions (at least 72% of contributions collected at communes) shall be deposited in accounts of district-level funds under the mandate of provincial People's Committees. For communes with special difficulties at coastal areas, islands and zone-III communes, the provincial-level People's Committees shall decide to allocate commune-level People’s Committees the minimum amount that must be equal to the amounts that communes (other than those mentioned above) are allocated at the lowest rates.

b) District-level People’s Committees retain 23% of contributions collected at districts (including those collected from communes) at maximum to pay for implementation of disaster prevention and control tasks at the district level (20% or less) and administrative costs incurred from collection activities (3% or less). The remaining amount (at least 77% of contributions collected in districts) shall be deposited in accounts of the provincial fund.

c) After all-level authorities report on cost settlement, the People's Committees of the provinces shall recover allocations if there is any residual balance, or decide on the allocation when the funding for performing natural disaster prevention and control tasks at the district and commune level is used up.

3. Expenses for management and operation of a provincial fund shall not exceed 3% of total revenue of that provincial fund.

What are regulations on spending authority of Provincial disaster management funds in Vietnam?

Pursuant to Article 17 of the Decree 78/2021/NĐ-CP stipulating spending authority of Provincial disaster management funds in Vietnam as follows:

1. Provincial-level People's Committees shall elaborate on spending details and rates of provincial funds in Article 16 of this Decree at the request of agencies running provincial-level funds.

2. Presidents of provincial-, district- or commune-level People’s Committees may decide spending amounts and details for disaster prevention and control activities other than those specified in clause 1 of Article 16 for payees upon the request of the Steering Committee for search and rescue at the same level.

3. Provincial Steering Committees for search and rescue shall be responsible for synthesizing damage and demands for support of district-level People’s Committees and relevant agencies or organizations; carrying out inspection, review and submit reports to the Presidents of provincial People’s Committees to seek their decisions.

4. Making transfers to the VNDMF under the Prime Minister's decisions or provincial funds of other provinces under the decisions of the provincial People's Committees.

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