Government establishes road accident damage reduction fund

Vietnam introduces a new national fund to strengthen efforts in minimizing road traffic accident losses.

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New fund in Vietnam aims to cut road accident losses

The Government of Vietnam has issued Decree No. 279/2025/ND-CP, establishing the Road Accident Damage Reduction Fund (RADRF) — a financial mechanism designed to mobilize social resources and support initiatives aimed at reducing road traffic accident damage nationwide.

The RADRF is a state financial fund outside the national budget, established under government regulations and managed by the Ministry of Public Security. The fund will maintain accounts at both the State Treasury and legally operating commercial banks in Vietnam.

Its financial resources will come from non-budgetary aid and support, voluntary contributions from domestic and international organizations or individuals (in cash or kind, in Vietnamese dong or foreign currencies), interest on deposit accounts, and unused funds carried over from previous years.

The Fund's charter capital, supported by the central budget in a one-time allocation, amounts to VND500 billion (US$18.9 million).

The six expenditure categories of the Fund aimed at reducing road traffic accident damage include assistance for victims injured in road traffic accidents with an injury rate between 31 percent and below 81 percent, and families of victims who have died due to road traffic accidents facing economic difficulties; support for community integration and continued development for victims injured in traffic accidents with an injury rate above 81 percent.

In addition, the Government will provide assistance for organizations and individuals that directly involved in helping, treating, and transporting road traffic accident victims to emergency care and support for organizations and individuals that directly participating in activities to promote awareness and reduce road traffic accident damage without state funding.

Based on the injury rate, the support level for victims injured in road traffic accidents with an injury rate between 31 percent and below 81 percent, and families of victims who have died due to road traffic accidents facing economic difficulties is capped at VND20 million per incident/family of the deceased; and no more than VND10 million per incident for one injured person.

Based on the injury rate, the support level for community integration and continued development for victims injured in traffic accidents with an injury rate above 81 percent is capped at VND100 million per injured person per instance.

Based on the severity of the traffic accident, the support amount for organizations and individuals directly involved in assisting, rescuing, and transporting road traffic accident victims to emergency care is capped at VND10 million for organizations per incident and VND5 million for individuals per incident.

The support amount for organizations and individuals directly participating in activities aimed at reducing road traffic accident damage, which are not funded by the State, is limited to VND10 million for organizations per incident and VND5 million for individuals per incident. Additionally, the support amount for promotional activities and events organized to raise funds is capped at VND100 million for the fund management agency per incident.

This decree will take effect from December 15, 2025.

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