On the evening of September 20, the Vietnam Disaster and Dyke Management Authority provided clarification on this issue.
According to the department, the Natural Disaster Prevention Fund was established and operates under the Natural Disaster Prevention and Control Law and Decree No.78/2021/ND-CP. This fund is a State financial resource outside the budget and is non-profit. It includes the Central Disaster Management Fund (managed by the Ministry of Agriculture and Rural Development) and the Provincial Disaster Management Fund (managed by provincial People's Committees).
According to the Vietnam Disaster and Dyke Management Authority, the Provincial Disaster Management Fund has been operational since 2014. As of September 20, all 63 provinces and cities have collected VND5.925 trillion, spent VND3.686 trillion, and have a remaining balance of VND2.263 trillion. Regarding this substantial remaining balance, Mr. Pham Duc Luan, Director of the Vietnam Disaster and Dyke Management Authority, confirmed that the Ministry of Agriculture and Rural Development does not manage this amount; it is retained and managed by the 63 provinces and cities.
The sources of revenue for the provincial fund include financial support and voluntary contributions from domestic and foreign organizations and individuals, mandatory contributions from domestic and foreign economic entities in the area (ranging from a minimum of VND500,000 to a maximum of VND100 million), contributions from Vietnamese citizens aged 18 and older, working under normal labor conditions as stipulated by labor laws, transfers from the central fund and between provincial funds, and interest earned from deposit accounts.
Regarding the management and expenditure of this fund, the Vietnam Disaster and Dyke Management Authority stated that all revenue generated during the year (including interest from deposit accounts) is allocated to support disaster response activities, aid and recovery efforts, as well as preventive measures. "The remaining balance in the provincial fund represents the total amount collected since its establishment. Any unspent funds at the end of the year are carried over to subsequent years for continued use," a representative from the department explained.
Currently, following the damages caused by Typhoon Yagi, several localities plan to utilize the Natural Disaster Prevention Fund for recovery efforts. Specifically, Lao Cai Province allocates VND5 billion; Hai Phong City VND50 billion; Dien Bien Province VND3 billion; Yen Bai Province VND13 billion; and Thai Nguyen Province VND10 billion. Other provinces are assessing damages and preparing proposals for using this fund.
"The VND2.16 trillion balance is primarily held in provinces and cities with high populations and businesses, such as Ho Chi Minh City, Binh Duong, and Hanoi. These areas collect substantial amounts but are less affected by natural disasters," Luan noted.
The representative from the Ministry of Agriculture and Rural Development also confirmed that, according to regulations, funds from one province's Disaster Management Fund can be transferred to another, enabling some localities to use their own funds to assist in recovery efforts for other regions.
In this context, Ho Chi Minh City provided approximately VND7.5 billion to the Dau Tieng - Phuoc Hoa Irrigation Exploitation Company in 2017 and 2021, with a planned allocation of VND6 billion in 2024. Da Nang City contributed around VND49.9 billion to assist provinces affected by natural disasters, including Ha Giang, Ha Tinh, Quang Tri, Quang Binh, Nghe An, Thua Thien Hue, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Son La, Yen Bai, Thanh Hoa, and Khanh Hoa. Additionally, Lao Cai advanced VND4 billion from its provincial Disaster Management Fund to support Lai Chau Province in recovering from disaster damages in 2019.
Mr. Pham Duc Luan emphasized that the fund's money is currently held by the localities. "Since its establishment, the central fund has yet to become operational due to issues with its model. As a result, the Ministry of Agriculture and Rural Development does not manage any disaster prevention funds," Luan stated.
He also noted that the responsibility for publicizing the fund's revenues and expenditures lies with the Chairpersons of the People's Committees of the respective provinces and cities.
