Relationship between Vietnam Disaster Management Fund and provincial Funds

Relationship between Vietnam Disaster Management Fund and provincial Funds (Internet image)

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

1. Relationship between Vietnam Disaster Management Fund and provincial Funds

The relationship between Vietnam Disaster Management Fund (VNDMF) and provincial Funds according to Article 10 of Decree 78/2021/ND-CP is as follows:

- Responsibilities of VNDMF:

+ Allocating its funds to provincial Funds.

+ Provide instructions, inspect and supervise the management and use of VNDMF’s allocations granted to provincial Funds.

- Responsibilities of provincial Funds:

+ Receive, manage and use VNDMF’s allocations.

+ Make transfers to VNDMF according to the Prime Minister’s decision.

+ VNDMF’s allocations that provincial Funds receive must be inspected and supervised by the VNDMF.

+ Report on management and use of provincial Funds to the agency running the VNDMF for its synthesis purposes.

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

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

- VNDMF’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 VNDMF’s Management Board is joined by 02 Vice Chairs and members appointed or approved by the Chair of the VNDMF’s Management Board at the recommendation of the agency running the VNDMF.

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

+ 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 VNDMF issued by the Chair of the Fund’s Management Board at the request of the agency running the VNDMF.

- The VNDMF’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 VNDMF’s Management Board at the recommendation of the VNDMF’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 VNDMF.

- The agency running the VNDMF is composed of the Director, Deputy Directors and specialized and professional units.

+ The VNDMF’s Director is appointed or approved by the Chair of the VNDMF's Management Board, and is the legal representative of the VNDMF. The VNDMF'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 VNDMF’s Management Board at the recommendation of the VNDMF's Director.

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

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

3. Spending details of Vietnam Disaster Management Fund

Spending details of Vietnam Disaster Management Fund according to Article 7 of Decree 78/2021/ND-CP are as follows:

- 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.

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