Rates And Instructions On Calculating Of Compensation For Non-Contractual Damages in Vietnam

Compelling compensation for damages is one of the methods of protecting civil rights if the civil rights of a natural person or a legal person are violated, including the right to life, right to safety of life, health and body, right to protection of honour, dignity and prestige, right to asset, right to private life, personal secrets, family secrets. So, how rates and instructions on calculating of compensation for non-contractual damages are made is one of the great interesting questions when an entity seeks compensation for damages.

The civil laws of Vietnam do not specify rates and instructions on calculating of compensation for non-contractual damages, for example, whether the heath of a natural person is infringed, the infringing person has to pay compensation for damages with a certain amount or how is amount calculated or a range of amount paid for damages.

Alternatively, the civil laws of Vietnam provide principal regulations to calculate an amount of compensation for damages that are divided into four groups of damages, including damages caused by infringement of property; damages caused by harm to health; damages caused by harm to life; damages caused by harm to honour, dignity and prestige. Therefore, rates and instructions on calculating of compensation for non-contractual damages will be calculated as follows:

1. Rates and instructions on calculating of compensation for non-contractual damages are defined for the group of damages caused by infringement of property

• Property which was lost, destroyed or damaged;
• Interests associated with the use and exploitation of the property were lost or declined;
• Reasonable costs for the prevention, mitigation and remedy of the damage;
• Other damage as prescribed by law.

2. Rates and instructions on calculating of compensation for non-contractual damages are defined for the group of damages caused by harm to health

• Reasonable costs for treating, nursing and rehabilitating health, and functional losses and impairment of the aggrieved person;
• Loss of or reductions in the actual income of the aggrieved person. If the actual income of the aggrieved person is irregular and is not able to be determined, the average income level for the type of work performed by the aggrieved person shall be applied;
• Reasonable costs and actual income losses of the carers of the aggrieved person during the period of treatment. If the aggrieved person loses his or her ability to work and requires a permanent carer, the damage shall also include reasonable costs for taking care of the aggrieved person;
• Other damage as prescribed by law; and
• An amount of money as compensation for mental suffering of the aggrieved person. The amount of compensation for mental suffering shall be as agreed by the parties; if the parties are not able to agree, the maximum sum shall not exceed fifty-month base salary prescribed by the State.

Pursuant to the Resolution No. 128/2020/QH14 passed by the National Assembly of Vietnam dated 12 November 2020 on State budget estimation in 2021, the current base salary in 2021 is still VND1,490,000 VND per month. So, rates and instructions on calculating of compensation for non-contractual damages for mental suffering when the health is infringed are maximum of VND74,500,000 (i.e. 50 × VND1,490,000 per month).

3. Rates and instructions on calculating of compensation for non-contractual damages are defined for the group of damages caused by harm to life:

• Damages caused by harm to health;
• Reasonable funeral costs;
• Support of the dependants of the aggrieved person;
• Other damage as prescribed by law.
• An amount of money as compensation for mental suffering of the close relatives in the first line of succession to the deceased. If there are no such relatives, this sum shall be paid to the persons who were directly reared by the deceased or to the persons who directly reared the deceased. The amount of compensation for mental suffering shall be as agreed by the parties; if the parties are not able to agree, the maximum sum shall not exceed one-hundred-month base salary prescribed in by the State i.e. not exceeding VND149,000,000.

4. Rates and instructions on calculating of compensation for non-contractual damages are defined for the group of damages caused by harm to honour, dignity and prestige:

• Reasonable costs for mitigating and remedying the damage;
• Loss of or reductions in actual income;
• Other damage as prescribed by law; and
• An amount of money as compensation for mental suffering of the aggrieved person. The amount of compensation for mental suffering shall be as agreed by the parties; if the parties are not able to agree, the maximum sum shall not exceed ten-month base salary prescribed by the State, i.e. not exceeding VND14,900,000.

Specially, rates and instructions on calculating of compensation for non-contractual damages caused by harm to a corpse or by harm to a grave are not divided into the groups of damages, but can be defined compensation for damages as prescribed in the Civil Code 2015 as follows:

• rates and instructions on calculating of compensation for non-contractual damages caused by harm to a corpse include reasonable costs for mitigating and remedying damages; and an amount of money as compensation for mental suffering for family of infringed person shall be agreed by the parties, if the parties are not able to agree, the maximum sum for each damaged corpse shall not exceed thirty-month base salary, i.e. not exceeding VND44,700,000.
• rates and instructions on calculating of compensation for non-contractual damages caused by harm to a corpse or by harm to a grave include reasonable costs for mitigating and remedying the damage; and an amount of money as compensation for mental suffering for family of infringed person shall be agreed by the parties, if the parties are not able to agree, the maximum sum for each damaged grave shall not exceed ten-month base salary, i.e. not exceeding VND14,900,000.

The above is an overview of rates and instructions on calculating of compensation for non-contractual damages. If you have trouble with legal issues regarding rates and instructions on calculating of compensation for non-contractual damages, please contact us: Phuoc & Partners is a professional consulting firm established in Vietnam which currently has nearly 100 members working in three offices in Ho Chi Minh City, Hanoi and Danang. Phuoc & Partners. It is rated as one of the leading consulting firms specializing in business law in Vietnam that has leading practice areas in the legal market such as Labour and Employment, Taxation, Merger and acquisition, Litigation. We are confident in providing customers with optimal and effective service.

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Article Name

Rates And Instructions On Calculating Of Compensation For Non-Contractual Damages in Vietnam

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how rates and instructions on calculating of compensation for non-contractual damages are made is one of the great interesting questions when an entity seeks compensation for damages

Author

Tran Thanh Phuong

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Phuoc & Partners

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