Phuoc & Partners – Vietnam Company Law

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

rates-and-instructions-on-calculating-of-compensation-for-non-contractual-damages

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

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

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).

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

  1. 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:

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:

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 EmploymentTaxationMerger and acquisitionLitigation. We are confident in providing customers with optimal and effective service.

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