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Reasons for the Ministry of Health's Proposal to Establish the Disease Prevention Fund

SKĐS - The Disease Prevention Fund aims to address urgent issues arising from potential pandemics; support proactive disease prevention activities; and fund disease prevention efforts that the state budget does not cover, partially covers, or covers inadequately.

According to the Ministry of Health, to address the shortcomings and issues in public healthcare, disease prevention and control, legal gaps in disease prevention activities, and to institutionalize the Party’s policies, orientations, and tasks assigned by the National Assembly, the Government, and the Prime Minister, it is necessary to develop a new law. This law will cover activities related to the prevention and control of infectious diseases, non-communicable diseases, mental health disorders, ensuring nutrition in disease prevention, mitigating the impact of other risk factors, and establishing conditions for disease prevention. This initiative aims to address legal gaps, promote preventive activities, and enhance public health while replacing the Law on Prevention and Control of Infectious Diseases. This is entirely appropriate, avoids overlap in the legal system, and is highly necessary in the current context.

Scope and Subjects of Application: The draft Law on Disease Prevention proposes regulations on information, education, and communication regarding disease prevention; prevention and control of infectious diseases; prevention and control of non-communicable diseases, mental health disorders, and other risk factors; nutrition in disease prevention; and conditions to ensure disease prevention.

 

 

The draft Law on Disease Prevention applies to domestic and foreign agencies, organizations, and individuals in Vietnam.

In the draft Law on Disease Prevention, the Ministry of Health proposes the establishment of the Disease Prevention Fund. The draft specifies that the Disease Prevention Fund is a state financial fund outside the state budget, with legal status, its own seal, and a separate account, established by the Prime Minister, who also approves its organizational and operational charter.

The Disease Prevention Fund is exempt from taxes and other state budget contributions as stipulated by law.

The Disease Prevention Fund is formed from the following sources:

- Charter capital allocated by the state budget;
- Annual supplementation from the state budget based on available resources;
- Option 1: A portion derived from excise tax revenues from products harmful to health.
- Option 2: Mandatory contributions from businesses producing or importing products harmful to health (excluding tobacco), calculated as a percentage of the excise tax base, following a roadmap: 1.0% from January 1, 2027; 1.5% from January 1, 2028; and 2.0% from January 1, 2029. These mandatory contributions are declared and paid along with the excise tax by the producing or importing businesses, who self-declare, self-calculate, and self-pay into the Fund’s account;
- Voluntary and lawful donations and sponsorships from domestic and foreign enterprises, organizations, and individuals;
- Funds from the Tobacco Harm Prevention Fund;
- Other lawful revenue sources as prescribed by law.

The Government will provide detailed regulations for the above provisions.

What is the purpose of the Disease Prevention Fund? How does it operate?

According to the draft, the purpose of the Disease Prevention Fund is to:
- Address urgent issues arising from potential pandemics.
- Support proactive disease prevention activities.
- Fund disease prevention efforts that are not covered, partially covered, or inadequately funded by the state budget.
- Create resources and ensure sustainable financing for disease prevention activities.

In the draft, the Ministry of Health specifies that the Disease Prevention Fund operates on a non-profit basis, preserves its charter capital, and covers its management costs. It manages revenue, expenditure, financial settlements, and accounting in accordance with legal regulations, while ensuring transparency in financial and asset management.

The Fund is subject to inspection, audit, and oversight by state financial management agencies, the State Audit Office regarding its financial activities, as well as supervision by the Vietnam Fatherland Front and the community.

It ensures transparency, efficiency, thrift, and lawful use of funds for the intended purposes.

The remaining budget balance from the previous year of the Disease Prevention Fund is carried over to the following year for continued use.

The draft specifies that the Government regulates the management and use of the Disease Prevention Fund.

 

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