Vietnam: How are natural disaster prevention and control funds established?

According to Clause 1 Article 1 of Decree No. 83/2019/ND-CP, which amends and supplements Clauses 1 and 2 Article 4 of Decree No. 94/2014/ND-CP of Vietnam’s Government, the Fund is a state extra-budgetary financial trust set up at the provincial level and put under the management of a provincial-level People's Committee. The Fund’s year-end balance may be carried forward to the subsequent year.

Specialized bodies counseling and helping provincial-level People's Committees to carry out state management of natural disaster prevention and control activities are entities in charge of managing the Fund; using their personnel for exercising the regulatory authority over the Fund in accordance with laws, possessing their seals and being eligible for opening their accounts at state treasuries, and performing part-time duties to manage the Fund.  The Fund’s Director shall be appointed, dismissed or discharged from office under the decision of the President of a provincial-level People’s Committee.

Moreover, Chairpersons of provincial-level People’s Committees shall promulgate Regulations on organization and operation of funds; and authorize district- and commune-level People’s Committees to organize the collection of contributions to funds.

Besides, Decree No. 83/2019/ND-CP also stipulates that Presidents of provincial-level People’s Committees shall provide each related agency or unit with instructions about the formulation of collection plans, approve and inform these plans to be implemented by such agency or unit; Departments of Taxation in provinces and centrally-affiliated cities shall be responsible for cooperating in supporting collection of payments to the Fund, formulating collection plans and providing fund management bodies with information about total value of existing assets in Vietnam according to annual financial reports with respect to domestic and foreign economic organizations within their ambit.

View more details at Decree No. 83/2019/ND-CP of Vietnam’s Government, effective from January 01, 2020.

Thu Ba

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