Gov’t establishes Road Accident Damage Reduction Fund
VGP - The Government has approved the establishment of the Road Accident Damage Reduction Fund (RADRF) to mobilize social resources and support initiatives aimed at minimizing the impacts of road traffic accidents nationwide.
The Road Accident Damage Reduction Fund expects to mobilize social resources and support initiatives aimed at minimizing the impacts of road traffic accidents nationwide.
The RADRF is a state-run, off-budget financial mechanism, founded under government regulations and overseen by the Ministry of Public Security. The fund will operate accounts at both the State Treasury and legally authorized commercial banks in Viet Nam.
The Fund's charter capital will be VND500 billion (US$18.9 million), provided as a one-time allocation from the central budget. Its financial sources include non-budget aid and support, voluntary contributions from domestic and foreign organizations and individuals (in cash in VND or foreign currencies), interest on deposits, and unused balances carried over from previous years.
RADRF expenditures will focus on six key areas to help reduce losses from road accidents. These include financial support for victims with injury levels between 31 percent and under 81 percent, and for families of deceased victims who face economic hardship. Assistance will also be available to help severely injured victims—those with an injury rate above 81 percent—reintegrate into the community and rebuild their lives.
Support for victims with injury levels between 31 percent and under 81 percent, as well as for families of deceased victims, will be capped at VND20 million (US$760) per case or per bereaved family, and up to VND10 million (US$370) for each injured person.
Victims whose injuries exceed 81 percent may receive up to VND100 million each per instance for rehabilitation and development support.
Additionally, organizations and individuals directly involved in the rescue, emergency transport or assistance of accident victims may receive up to VND10 million per incident for organizations and VND5 million for individuals, based on the severity of the incident.
Support for activities that contribute to reducing accident-related damage—when not covered by the State budget—will be capped at VND10 million for organizations and VND5 million for individuals per incident.
Funding for promotional events to raise contributions for RADRF will be limited to VND100 million per event for the fund's management agency.
The decree is set to take effect from December 15, 2025.
In 2024, Viet Nam reported 21,532 road traffic accidents, which resulted in 9,954 deaths and 16,044 injuries.
According to the National Traffic Safety Committee, in the first six months of 2025, traffic accidents nationwide decreased significantly in all three criteria. A total of 9,398 accidents occurred, leaving 5,293 people dead and 6,246 injured. Compared to the same period in 2024, the number of accidents, fatalities, and injuries all fell./.
