Vietnam: The maximum time limit for payment of reimbursement obligations of pedagogy students shall be 4 years

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 the Decree No. 116/2020/NĐ-CP to the provincial People's Committees of the recovery of support funds granted to pedagogical students and their families.

According to Article 9 of the Decree No. 116/2020/NĐ-CP of the Vietnam Government, recovery of reimbursed costs is prescribed as following:

- 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 this Decree. 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.

- 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.

More details at the Decree No. 116/2020/NĐ-CP of the Vietnam Government effective from November 15, 2020.

Le Thanh

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