What are the policies applied to enterprises directly serving national defence and security functions in Vietnam?
- Who has the right to decide to grant recognition of enterprises directly serving national defense and security functions in Vietnam?
- What are the conditions of enterprises qualified as an enterprise directly serving national defence and security functions in Vietnam?
- What are the policies applied to enterprises directly serving national defence and security functions in Vietnam?
Who has the right to decide to grant recognition of enterprises directly serving national defense and security functions in Vietnam?
Pursuant to the provisions of Clause 1, Article 9 of Decree No. 16/2023/ND-CP as follows:
Grant or re-grant of recognition of enterprises directly serving national defence and security functions
1. The Prime Minister shall decide to grant or re-grant recognition of enterprises directly serving national defense and security functions at the request of the Ministry of National Defense or the Ministry of Public Security, and according to the result of appraisal conducted by the Ministry of Planning and Investment on a five-yearly basis.
Thus, the Prime Minister shall decide to grant or re-grant recognition of enterprises directly serving national defense and security functions.
What are the policies applied to enterprises directly serving national defence and security functions in Vietnam? (Image from the internet)
What are the conditions of enterprises qualified as an enterprise directly serving national defence and security functions in Vietnam?
Pursuant to the content specified in Article 3 of Decree No. 16/2023/ND-CP as follows:
Enterprises directly serving national defence and security functions
To qualify as an enterprise directly serving national defence and security functions, an enterprise must satisfy all of the conditions mentioned hereunder:
1. It may be:
a) A single-member limited liability company with its charter capital wholly owned by the State that is controlled by the Ministry of National Defence or the Ministry of Public Security;
b) A single-member limited liability company with its charter capital wholly owned by an enterprise specified in point a of clause 1 above; or
c) A multiple-member limited liability company with its charter capital wholly owned by single-member limited liability companies with their charter capital wholly owned by the State, including at least a company that is defined in point a of clause 1 of this Article.
2. Its business line or sector and location conform to regulations laid down in the Appendix pertaining to the List of business lines, sectors or locations of direct support for national defence and security activities to this Decree.
3. It is assigned directly by the Ministry of National Defence or the Ministry of Public Security, or by the competent body or the managing body immediately under the Ministry of National Defence, the Ministry of Public Security, or by its parent company that is an enterprise with its charter capital wholly owned by the State under the control of the Ministry of National Defence or the Ministry of Public Security, to produce and supply national defence and security products and services, and to perform national defence and security tasks through use of funding of the state budget or other enterprises according to investment and establishment objectives.
Thus, an enterprise is defined as an enterprise directly serving national defence and security functions when fully satisfying the conditions mentioned in the above regulations.
What are the policies applied to enterprises directly serving national defence and security functions in Vietnam?
Pursuant to the provisions of Clause 1, Article 7 of Decree No. 16/2023/ND-CP as follows:
Policies applied to enterprises directly serving national defence and security functions, and their employees
1. Enterprises directly serving national defence and security functions may apply the following policies:
a) Receiving incentives related to land rents, land use fees and levies imposed on plots that they are authorized to manage and use for national defence and security tasks in accordance with laws on land, taxes and other relevant laws.
b) Receiving the State funding and other resources to meet normed expenditures defined in laws, including those on military equipment for officers, professional soldiers, defense workers, defense officers, non-commissioned officers, public security workers, and cipher workers; maneuvers, combat training, reserve training; defense and security work, defence support work, military-civilian relations. Where the state budget funding is not sufficient enough to meet these expenditures, any expenditure exceeding the state budget funding shall be counted as the deductible from the income subject to corporate income tax in accordance with Law on Corporate Income Tax and instructional documents thereof; shall not be taken into account as a factor in the performance evaluation or corporate rating process under the Government’s regulations.
c) Receiving the State funding and other resources to finance expenditures on maintenance, repair and operation of production lines and equipment, and repair of defense and security products during the period of temporary suspension of production of defense and security products according to plans and tasks assigned or orders placed directly by the Ministry of National Defense or the Ministry of Public Security, or by specialized agencies or managing bodies immediately under the Ministry of National Defense or the Ministry of Public Security.
d) Receiving the State funding and other resources used for supporting operation of 02 bonus and welfare funds which are as much as 02 months' pay of employees if an enterprise does not have enough budget to support these funds.
dd) Receiving the State funding and other resources intended to finance expenditures on operation of kindergartens and education affairs in areas without schools under the public education system; health expenditures in areas where sick bays remain due to special conditions; or expenditures on operation of kindergartens and sick bays in localities where continued operation of sick bays is necessary according to decisions of the Ministry of National Defense or the Ministry of Public Security.
e) Carrying out the depreciation of fixed assets, including production lines, and the repair of weapons, military equipment, infrastructure and other dedicated and special assets needed for national defense and security tasks under the guidance of the Ministry of Finance.
Thus, enterprises directly serving national defence and security functions will apply the above policies.
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