Foreign enterprises operating in Vietnam can access various government support mechanisms for disaster prevention and recovery. These supports include legal guidance, technical assistance, financial aid, and preferential policies for post-disaster reconstruction. Below is a detailed guide on how to utilize and apply for these supports, ensuring businesses are well-prepared to respond to and recover from disasters.

1. Applying for Environmental Impact Assessments (EIA) and Disaster Prevention Plans

Before launching any industrial project, foreign enterprises must comply with Vietnam’s Law on Natural Disaster Prevention and Control and Law on Environmental Protection by conducting an Environmental Impact Assessment (EIA). Here’s how companies can ensure their project is compliant with disaster prevention and environmental protection standards:

• Prepare the Necessary Documents: Work with a certified environmental consultant to gather data on the project site, including potential natural disaster risks such as floods, typhoons, or earthquakes. The consultant will help prepare the EIA report, which includes the potential environmental impacts of the project and mitigation measures.
• Submit the Application: Submit the EIA report to the Ministry of Natural Resources and Environment (MONRE) or the provincial environmental office, depending on the project’s scale. The application must include company registration details, project plans, and technical specifications.
• Approval and Feedback: The approval process typically takes 30-60 days. Companies should monitor the progress of the application and promptly provide any supplementary information requested by authorities.

Once the EIA is approved, businesses can implement their disaster prevention plans to ensure safety and compliance throughout their operations.

2. Accessing Financial Support and Low-Interest Loans

In the event of a disaster, businesses may require additional financial support to resume operations. The Vietnamese government provides a range of low-interest loans and financial aid. The following steps outline how companies can apply for these resources:

• Prepare Application Documents: After a disaster, assess the damage and prepare a detailed recovery plan. This should include an inventory of losses, a reconstruction plan, and an estimate of the required funds. Ensure all loss records are supported by photos or other evidence.
• Submit Loan Applications: Submit the loan application to government-designated banks or financial institutions, such as the Vietnam Development Bank or commercial banks at the provincial or city level. The application must include the disaster impact assessment, recovery plan, and company financial statements.
• Approval and Fund Disbursement: Financial institutions typically review the loan application based on the company’s credit history and recovery plan, with a usual review period of 30 days. Once approved, the company will receive low-interest loans to support recovery efforts.

Ensuring the completeness and accuracy of loan application documents can expedite the approval and disbursement process.

3. Applying for Tax Relief and Insurance Claims

During the recovery process, businesses can also apply for tax relief and insurance claims to reduce financial burdens. Here’s how to apply for these benefits:

• Tax Relief: Under the National Strategy on Sustainable Development and local tax regulations, businesses affected by disasters can apply for temporary tax relief. The process involves:
  • Contacting the Local Tax Office: Submit an application to the local tax office, including a disaster impact report and a recovery plan.
  • Providing Supporting Documents: Submit disaster certification documents issued by local authorities or MONRE, along with the company’s financial statements showing the impact on operations.
  • Approval and Implementation: The tax office will assess the impact of the disaster on the business and determine the level and duration of tax relief. Approval is usually granted within 30 days.
• Insurance Claims: Businesses that have purchased disaster insurance can follow these steps to claim compensation:
  • Contact the Insurance Provider: Immediately notify the insurance provider after the disaster and submit an initial damage report to ensure the claim is within the coverage period.
  • Submit Claim Documents: Provide a detailed inventory of damages, photographic evidence, disaster assessment reports, and any additional required documents, such as police or government-issued disaster certificates.
  • Track the Claim Process: Follow up with the insurance provider to ensure timely processing and provide any additional documents or information as needed to expedite the claim.

By applying for tax relief and insurance claims, businesses can mitigate the financial risks posed by disasters and resume normal operations more quickly.

4. Utilizing Technical Support from the National Committee for Disaster Prevention and Control

The National Committee for Disaster Prevention and Control is responsible for coordinating disaster response between various levels of government and businesses. Here’s how companies can access technical support and disaster warnings:

• Use Disaster Warning Systems: Businesses can access the latest disaster warnings from the National Committee’s website (http://phongchongthientai.mard.gov.vn/) or local disaster prevention offices. Receiving early warning information helps companies develop corresponding emergency plans.
• Apply for Technical Support: If a business requires technical assistance, it can submit a request to the provincial disaster prevention and emergency management office, explaining the technical difficulties faced in disaster prevention or recovery. The government will assign experts to provide tailored technical guidance to the business.

Maintaining close contact with national disaster management agencies ensures that businesses receive up-to-date information on disaster response and gain professional support during recovery efforts.

5. Fast-Track Approval for Post-Disaster Reconstruction

To help businesses resume operations quickly after a disaster, the Vietnamese government provides a fast-track approval process for post-disaster reconstruction, particularly for businesses severely affected by the disaster:

• Submit a Simplified Recovery Plan: Affected businesses must submit a simplified reconstruction plan to local authorities, including a recovery timeline, budget, and construction plans. The government prioritizes these applications to help businesses rebuild infrastructure as quickly as possible.
• Apply for Accelerated Approval: Through the government’s “fast-track approval process,” businesses can request to shorten the approval timeline for recovery projects to 15 working days, significantly speeding up the reconstruction process.

Timely submission of reconstruction plans and maintaining communication with local authorities helps businesses receive the necessary approvals to resume operations swiftly.

By correctly utilizing and applying for the disaster prevention and recovery support provided by the Vietnamese government, foreign enterprises can effectively reduce operational risks from natural disasters. Whether applying for environmental assessments, accessing financial aid, receiving tax relief, or leveraging technical support from national disaster management agencies, these tools and policies are essential for the long-term success of businesses in Vietnam. Companies must stay informed about the latest regulations and actively engage with local and national authorities to ensure business continuity and sustainable development.