Management and governance machinery of the Central Disaster Management Fund in Vietnam

Management and governance machinery of the Central Disaster Management Fund in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is the Disaster Management Fund?

Article 3 of Decree 78/2021/ND-CP stipulates the Disaster Management Fund as follows:

- The Disaster Management Fund is a state extra-budgetary financial foundation having its legal personality, its own seal and allowed to have its accounts opened at the State Treasury and commercial banks legally operating in Vietnam.

- The Central Disaster Management Fund is established by the Government under the provisions of this Decree and run by the Ministry of Agriculture and Rural Development. Its international name is Vietnam Disaster Management Fund, abbreviated to Central Disaster Management Fund.

- Provincial disaster management funds (hereinafter referred to as provincial DMF) are established under the approval decisions of Presidents of the People's Committees of centrally-affiliated cities and provinces, and run by the People's Committees of centrally-affiliated cities and provinces.

The Fund of each province or centrally-affiliated city is named after the name of that province or centrally-affiliated city.

2. Management and governance machinery of the Central Disaster Management Fund in Vietnam

According to Article 5 of Decree 78/2021/ND-CP, Central Disaster Management Fund is composed of the followings: Management Board, Control Board and the agency running the Central Disaster Management Fund.

- Central Disaster Management Fund’s Management Board is composed of fewer than 09 members, including:  Chair, Vice Chairs and other members.

+ The Board’s Chair is the Minister of Agriculture and Rural Development.

+ The Central Disaster Management Fund’s Management Board is joined by 02 Vice Chairs and members appointed or approved by the Chair of the Central Disaster Management Fund’s Management Board at the recommendation of the agency running the Central Disaster Management Fund.

+ The Central Disaster Management Fund’s Management Board uses the machinery of the standing agency for disaster prevention and control as the agency running the Central Disaster Management Fund.

+ The working regime, tasks and powers of the Board’s members are assigned by the Chair of the Fund’s Management Board and are implemented under the Regulations on organization and operation of the Central Disaster Management Fund issued by the Chair of the Fund’s Management Board at the request of the agency running the Central Disaster Management Fund.

- The Central Disaster Management Fund’s Control Board shall have no more than 05 members, including the Head of the Control Board and members.

+ The Head of the Control Board shall be appointed or approved by the Chair of the Central Disaster Management Fund’s Management Board at the recommendation of the Central Disaster Management Fund’s Management Board.

+ The working regime, tasks and powers of the Control Board shall be subject to the Regulations on organization and operation of the Central Disaster Management Fund.

- The agency running the Central Disaster Management Fund is composed of the Director, Deputy Directors and specialized and professional units.

+ The Central Disaster Management Fund’s Director is appointed or approved by the Chair of the Central Disaster Management Fund's Management Board, and is the legal representative of the Central Disaster Management Fund.

The Central Disaster Management Fund's Director is entitled to sign contracts in accordance with law for a number of jobs serving the Fund's operations and bears legal liability.

+ Deputy Directors and Chief Accountant are appointed or dismissed by the Chair of the Central Disaster Management Fund’s Management Board at the recommendation of the Central Disaster Management Fund's Director.

+ Professional and specialized units are decided by the Chair of the Central Disaster Management Fund’s Management Board at the recommendation of the Central Disaster Management Fund's Director.

+ The working regime, tasks and powers of the agency running Central Disaster Management Fund are assigned by the Chair of the Central Disaster Management Fund’s Management Board and are expressed in the Regulations on organization and operation of the Central Disaster Management Fund.

3. Spending details of the Central Disaster Management Fund in Vietnam

The Central Disaster Management Fund in Vietnam shall spend the following activities:

- Provide assistance and support for emergency response to natural disasters when local budgets cannot afford to carry out these response activities; emergency assistance and support priority is given to food, drinking water, medicines and others meeting urgent needs of those affected by natural disasters, repair of houses, medical facilities, schools, environmental remediation and sanitation in affected areas. 

- Support disaster recovery activities for localities that suffer damage from natural disasters in excess of local budgets; provide irregular support and aids to victims and victims' families affected by natural disasters or persons suffering accidents or losses when participating in natural disaster prevention and control activities.

- Provide support for emergency projects on natural disaster prevention, control and recovery, basic survey projects and inter-provincial, inter-regional and inter-sectoral disaster prevention and control activities.

- Provide support for disaster warning, monitoring, observation and communication activities.

- Support disaster prevention and control information, communication, training, coaching and drilling activities; organize specialized and professional training, coaching, instruction and experience exchange and learning courses on managerial operations amongst provincial funds.

- Expenses for management and operation of the VNDMF within a year shall not exceed 1% of total revenue of the Fund in that year.

(Article 7 of Decree 78/2021/ND-CP)

Tran Thanh Rin

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