Vietnam: Management of environmental remediation deposits

1. Each deposit receiver shall open a separate bank account to monitor deposits.

2. Deposits shall be kept at commercial banks with good operational quality based on credit ratings by State Bank of Viet Nam, on the principle that the principal is reserved and deposit interest payable to deposit payers and management cost incurred by deposit receivers are covered.

3. The interest rate and term of deposits shall be arranged by the deposit receiver with the commercial bank as prescribed by the law.

4. Deposit interest rates:

- The deposit interest rate shall be adjusted to the lending interest rate imposed by the deposit receiver and shall be applicable to the total deposit balance.

- If the deposit receiver does not lend the deposit, the interest rate shall be set according to the lending interest rate imposed by the Viet Nam Environmental Protection Fund at the time of depositing.

- In the event of varied application of interest rates to different organizations by the deposit receiver, interest paid to the deposit payer shall be the arithmetic mean of those interest rates.

- A deposit payer shall make one-time withdrawal of the interest after receipt of a document certifying the completion of all terms provided for in environmental restoration and remediation plan or other supplemental environmental restoration and remediation plans as prescribed in Clause 4 Article 8 of Decree 19/2015/NĐ-CP of Vietnam’s Government or its superseding document or any amendments thereto (if any).

5. Fulfillment of tax duties: A deposit receiver shall fulfill tax duties as prescribed in the applicable law.

View more contents at Circular No. 08/2017/TT-BTC of the Ministry of Finance of Vietnam, effective from March 10, 2017.

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