Vietnam: Obligation to pay the costs of disposing of sunken property

1. Shipwrecked property owner shall assume responsibility to pay the costs of treatment of shipwrecked property in case the treatment of such shipwrecked property is organized by a competent authority; within 12 months after the completion of salvage operations, all costs of treatment of shipwrecked property must be fully paid.

2. In case of salvage of shipwrecked property causing hazard, if the proceeds from sale of property are not enough to pay the costs of treatment of shipwrecked property and the shipwrecked property owner is insolvent or it is unable to identify the owner of shipwrecked property, the deficit shall be covered by funding from state budget. Authorities that have the power to make decisions on sale of shipwrecked property shall assume responsibility to pay the costs of treatment of shipwrecked property.

3. Costs of treatment of shipwrecked property may also be paid in kind which is the property to be raised. Payment of costs in kind may be made either before or after the salvage. Authorities that have the power to consider giving approval for salvage plans shall make a decision to make payment of costs in kind according to regulations.

4. If shipwrecked property is subject to compulsory destruction, the costs of destruction operations shall be paid by property owner. If the shipwrecked property owner is insolvent or it is unable to identify the owner of shipwrecked property, such costs of destruction operations shall be covered by state budget. Competent authorities shall make decision on payment of the costs of destruction operations.

5. The costs of treatment of shipwrecked property causing hazard which is rescued or raised by a port authority shall be covered by an advance from funding for operations of the port authority. An insolvent port authority may apply for an advance from state budget in accordance with regulations of the law on state budget. In such case, the port authority shall assume responsibility to get back money from the shipwrecked property owner or by selling shipwrecked property in accordance with laws and make payment of advance amount to state budget.

6. People’s Committee of provinces or central-affiliated cities where the shipwrecked property owner applied for business registration shall take charge and cooperate with relevant ministries to verify and certify the owner’s insolvency, where necessary.

View more details at Decree No. 05/2017/NĐ-CP of Vietnam’s Government, effective from July 01, 2017.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE