Establishment and management of Vietnam disaster management funds (expected)

1. Management and governance machinery

Pursuant to Article 6 of the Draft Degree, management and governance machinery of the Vietnam disaster management funds include:

- The Management Board established by the Prime Minister of Vietnam, including:

+ The Board’s Chair is the Deputy Prime Minister of Vietnam - Head of the National Natural Disaster Prevention and Control;

+ Vice Chairs and members appointed by the Prime Minister of Vietnam, including heads of the Ministry of Agriculture and Rural Development, the Ministry of Finance, the Ministry of Planning and Investment, Ministry of Labor, War Invalids and Social Affairs, the Government Office and relevant ministries and sectors;

The Management Board takes responsibility in all its operation before the law and the Prime Minister of Vietnam.

- The Control Board appointed by the Management Board;

- The agency running the Vietnam National Disaster Management Funds (The standing agency for natural disaster prevention and control shall assist the Ministry of Agriculture and Rural Development of Vietnam in the state management of natural disaster prevention and control, manage the Vietnam National Disaster Management Funds in accordance with law, and organize in the form of concurrency. The Director of the Vietnam National Disaster Management Funds shall be appointed, relieved of duty or dismissed by the Prime Minister).

2. The charter capital of VND 500 billion

Pursuant to Article 7 of the Draft Degree, financial sources of the Vietnam National Disaster Management Funds including:

- The Fund's charter capital is VND 500 billion provided by the central budget and fully allocated within 2 years from the date of establishment of the Fund. The Fund is provided with additional capital annually from the central budget to reach the total charter capital of the fund;

- Grants, aids, voluntary and trusted contributions of domestic and foreign organizations and individuals;

- Amounts granted by provincial Funds according to the Prime Minister’s decision. Balance in the last year that may be carried forward to the subsequent year;

- Điều tiết từ Quỹ cấp tỉnh theo quyết định của Thủ tướng chính phủ. Căn cứ tồn Quỹ cấp tỉnh hàng năm;

-  Interest earned from deposit accounts or other legitimate finances (if any).

3. Responsibilities of the central fund management agency

Firstly, guide, inspect and supervise the management and use of funds regulated by the Central Fund;

Secondly, regulate the funding from the Central Fund to the Provincial Fund according to the Prime Minister's decision;

Thirdly, organize training, coaching, professional guidance and exchange and learn experiences on management skills among provincial funds.

Thus, the new point of the Draft Degree is the proposal to establish and manage the Vietnam National Disaster Management Funds to provide relief and support for emergency disaster response activities when it is beyond the capacity to respond of the provinces; Support investment, repair works, houses against floods and storms. Concurrently, supporting information, communication, training and coaching activities; Support for monitoring, information, forecasting, warning of natural disasters and other support is specified in Clause 8 of the Draft Degree (Currently, the Decree No. 94/2014/ND-CP has just only stipulated the establishment and management of provincial disaster prevention funds).

 Thuy Trong

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