Current regulations on Disaster Management Fund in Vietnam

Current regulations on Disaster Management Fund in Vietnam (Image from the internet)

Current regulations on Disaster Management Fund in Vietnam

According to Article 3 of Decree 78/2021/ND-CP, the regulations on the name and legal status of the Disaster Prevention Fund in Vietnam are as follows:

- The Disaster Prevention Fund is an extra-budgetary state financial fund with legal status, its own seal, and is allowed to open accounts at the State Treasury and legally operating commercial banks in Vietnam.

- The Central Disaster Prevention Fund (hereinafter referred to as the Central Fund) is established by the Government of Vietnam under this Decree and managed by the Ministry of Agriculture and Rural Development. The international transaction name of the Central Fund is: Vietnam Disaster Management Fund, abbreviated as VNDMF.

- The Provincial Disaster Prevention Fund (hereinafter referred to as the Provincial Fund) is established by decision of the Chairman of the Provincial People's Committee or centrally-managed city and managed by the Provincial People's Committee or centrally-managed city. The international transaction name of the Provincial Fund is set according to each province or centrally-managed city.

- The Disaster Prevention Fund operates under the model of a single-member limited liability company with 100% charter capital owned by the State.

Spending details​ of the disaster prevention fund in Vietnam

(1) Providing relief, supporting emergency disaster response activities when local capacity is exceeded; prioritizing emergency relief for food, drinking water, medicine, and other urgent needs for those affected by disasters, supporting the repair of housing, medical facilities, schools, and environmental sanitation in disaster areas.

(2) Supporting disaster recovery activities for localities heavily affected by disasters that exceed local recovery capacity; providing sudden support, allowances to victims, families of disaster victims, and those injured or damaged while participating in disaster prevention and control.

(3) Supporting urgent projects for disaster prevention and recovery, basic investigation projects, and inter-provincial, inter-regional, and inter-sectoral disaster prevention and control activities.

(4) Supporting disaster warning, monitoring, supervising, and information transmission work.

(5) Supporting information, communication, training, and enhancing disaster prevention knowledge for the public; organizing training, guiding professional skills, and exchanging, learning management experience between Provincial Funds.

(6) The management and operational costs of the Central Fund in a year do not exceed 1% of the total revenue of the fund for that year.

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

Duties of the Disaster Prevention Fund in Vietnam

- Supporting disaster prevention and control activities that the state budget has not invested in or has not met the requirements.

- Receiving, managing, and using financial resources.

- Implementing reporting policies, accounting according to this Decree and other related legal regulations.

- Complying with inspections, examinations, and audits by competent state agencies according to legal regulations.

- Publicly disclosing the operational regulations, operational results of the Disaster Prevention Fund, and reporting on the implementation status of the fund as regulated by this Decree and related legal regulations.

(Article 4 of Decree 78/2021/ND-CP)

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