You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

April 8, 2021

Vietnam Updates Regulations on Oil Spill Response

Subscribe to Updates

On March 24, 2021, the Prime Minister of Vietnam issued Decision No. 12/2021/QD-TTg issuing regulations on oil spill response (Decision 12). Decision 12 will take effect on May 10, 2021, replacing Decision No. 02/2013/QD-TTG as amended by Decision No. 63/2014/QD-TTg (together, Decision 02).

Broadly speaking, the changes introduced by Decision 12 are minor, and serve mainly to update aspects of Decision 02. One of the more notable changes is the introduction of templates for oil spill response plans (OSR plans) which are provided under Decision 12 to support localities to formulate and prepare their own OSR plans, which must then be approved by the relevant authorities.

Another notable change is the introduction of the timeline for evaluation and approval of OSR plans at all levels. Accordingly, such timelines are elaborated as follows:

  • For OSR plans requiring approval from the National Committee for Natural Disaster Response and Search and Rescue (VINASARCOM): Within 30 working days from the date of receipt of complete and valid dossier.
  • For OSR plans requiring approval from the provincial People’s Committee: Within 20 working days from the date of receipt of a complete and valid dossier.
  • For OSR plans requiring approval from the district-level People’s Committee: Within 15 working days from the date of receipt of a complete and valid dossier.

Another change is related to financial security for payment of compensation for loss and damage caused by oil spills. Accordingly, Decision 12 requires the owners of Vietnamese and foreign seagoing vessels carrying more than 2,000 tons of raw material to have a certificate of insurance or a financial guarantee as security to discharge their civil legal liability to pay compensation for loss and damage caused by oil spills in accordance with provisions under the 1992 CLC Convention.

Decision 12 also requires owners of Vietnamese seagoing vessels with a total tonnage of more than 1,000 GT operating on international routes to have a certificate of insurance or have a financial guarantee as security to discharge their civil legal liability to pay compensation for loss and damage caused by oil spills in accordance with the provisions of the 2001 Bunker Convention. Further, it is worth noting that the requirement to establish a compensation fund or trust fund, which was imposed on the owner of the ship or the owner of the establishment which caused the oil spill and its insurer under Decision 02, have been removed by Decision 12.

For more information on Decision 12, please contact us at [email protected].

Related Professionals

Industries

Energy

Location

RELATED INSIGHTS​ 

October 14, 2021
As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2021. This guide outlines all of the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Guides to Doing Business series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource when planning an international business strategy or researching a new market.
Read More
April 19, 2021
Thailand has made significant changes to its statutory interest rate framework for the first time in almost a century. Since 1925, the statutory interest rate codified in Thailand’s Civil and Commercial Code (the CCC) has remained at 7.5% per year. But with Covid-19 having an unprecedented impact on the Thai economy, the Thai Government, via emergency decree, has reduced the statutory rate. While the decree is largely aimed at providing relief to hard-hit SMEs and individual debtors, the amendments have broader implications for doing business in Thailand. Main Changes The new interest rate revisions are contained within the Emergency Decree Amending the Civil and Commercial Code B.E. 2564 (2021) (the Emergency Decree), which was published in the Government Gazette on April 10, 2021 and came into effect on April 11, 2021. The Emergency Decree amends Sections 7 and 224 of the CCC, which stated the previous statutory interest rate of 7.5% per year. The Emergency Decree makes three major changes. The first involves a reduction of the statutory interest rate from 7.5% per year to 3% per year in Section 7. The new 3% annual rate is subject to review every three years by the Ministry of Finance. The interest rate is subject to further change later by a royal decree. The second change concerns money debts under Section 224 of the CCC. The previous version of Section 224 stated, among other things, that a money debt based on a default bears interest of 7.5% per year. Under the Emergency Decree, the new actual statutory default interest rate is the statutory interest rate stated in Section 7 with an additional rate of 2% per year. The result is a 5% annual statutory default interest rate. Since the statutory default interest rate is based in part on the Section 7
Read More