Conditions for the merger and consolidation of public service providers in the transportation sector

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Conditions for Merger and Consolidation of Public Service Providers in the Transport Sector

Pursuant to Article 5 of Circular 12/2021/TT-BGTVT, the conditions for merger and consolidation of public service providers in the transport sector are stipulated as follows:

- The merger and consolidation of public service providers is conducted upon fulfillment of the conditions specified in Clause 2, Article 5 of Decree 120/2020/ND-CP.

- The public service provider formed after the merger or consolidation must meet the establishment conditions stipulated in Article 4 of Circular 12/2021/TT-BGTVT and relevant legal provisions. The merger or consolidation of public service providers should not reduce the current financial autonomy of the unit; in cases where public service providers with different levels of financial autonomy are merged or consolidated, the financial autonomy level of the post-merger or post-consolidation public service provider shall be implemented according to the decision of the competent authority.

- Conditions for merger and consolidation for other public service providers in the transport sector, but under the state management of other Ministries, shall be implemented in accordance with relevant legal provisions and those of such Ministries.

Conditions for Merger and Consolidation of Public Service Providers in the Transport Sector

Criteria for Classification of Public Service Providers in the Transport Sector

Pursuant to Article 3 of Circular 12/2021/TT-BGTVT, the criteria for classification of public service providers in the transport sector are defined as follows:

- Based on the functions and tasks of the public service provider:

+ Public service unit serving state management, including:

++ Public service unit performing the function of safety management system assessment and certification; quality assurance conditions assessment.++ Public service unit performing the function of emission testing, energy labeling for motor vehicles.++ Public service unit performing the function of quality testing, technical safety, and environmental protection for vehicles, components, industrial products, and other safety devices used in transport.++ Public service unit performing the function of inspecting loading and unloading equipment, specialized construction equipment, containers used in road, rail, inland waterway, maritime transport; exploration, exploitation, and transport equipment at sea; machinery, equipment, and materials with strict safety requirements (except for equipment used for national defense, security, and fishing vessels).++ Public service unit performing other functions serving state management (if any).

+ Public service unit providing public service in the field managed by the Ministry of Transport, including:

++ Public service unit providing road technical services.++ Public service unit providing roadway ferry operation and exploitation services.++ Public service unit providing maritime security information reception, processing, and transmission services.++ Public service unit providing maritime incident response, disaster response, and search and rescue services.++ Public service unit providing vehicle inspection services (except for vehicles used for national defense, security, and fishing vessels).++ Public service unit providing other public services in the field managed by the Ministry of Transport (if any).

- Based on the level of financial autonomy of the public service provider:

+ Public service unit self-financing recurrent and investment expenditures.

+ Public service unit self-financing recurrent expenditures.

+ Public service unit partially covering their own recurrent expenditures.

+ Public service unit with recurrent expenditures guaranteed by the State.

- Classification criteria for other public service providers in the transport sector, but under the state management of other Ministries, shall be implemented in accordance with relevant legal provisions and those of such Ministries.

Principles for Establishment, Reorganization, and Dissolution of Public Service Providers

According to Article 4 of Decree 12/2020/ND-CP, the principles for establishment, reorganization, and dissolution of public service providers are as follows:

- The establishment, reorganization, and dissolution of public service providers must ensure compliance with the conditions, procedures, and authority stipulated in this Decree (where specialized law has different provisions, the provisions of the specialized law shall apply); a public service provider may supply multiple types of public services.

- Newly established public service providers (including those that are sub-units of another public service provider) must be self-financing recurrent and investment expenditures (except for cases of new establishment to supply essential public services). Particularly for sub-units of public service providers that are self-financing recurrent and investment expenditures, new establishments (including cases of providing essential public services) must be self-financing recurrent and investment expenditures.

- Public service providers operating inefficiently shall be reorganized or dissolved. Reorganization of public service providers shall not increase the number of individuals receiving salaries from the state budget as approved by the competent authority, ensuring compliance with the number of deputy heads of the unit and implementing downsizing according to regulations.