What subjects have yet been subject to downsizing in Vietnam?

Hello, Lawnet would like to answer the following:

1. What subjects have yet been subject to downsizing in Vietnam?

Specifically, Article 4 of Decree 29/2023/ND-CP stipulates that those who have yet been subject to downsizing in Vietnam include:

- Persons who are pregnant, on maternity leave, or nursing a child under 36 months of age, except for individuals who voluntarily downsize their payroll.

- Those who are in the process of disciplinary consideration, criminal prosecution, or being inspected or examined for signs of violation.

2. Principles of downsizing in Vietnam

Pursuant to Article 3 of Decree 29/2023/ND-CP, stipulating the principles of downsizing as follows:

- Ensuring the leadership of the Party, and promoting the supervisory role of socio-political organizations and the people in the process of downsizing.

- Linking downsizing the payroll with reorganizing the apparatus in the direction of leanness, effective and efficient operation, and restructuring, improving the quality of the contingent of cadres, civil servants, and public employees according to job positions, in line with the autonomy mechanism of agencies, organizations, and units.

- Ensuring the principles of democratic centralism, objectivity, fairness, publicity, transparency, and compliance with the law.

- Ensuring payment of payroll reduction regimes and policies in a timely and complete manner in accordance with law, ensuring efficient use of the state budget.

- The head must be responsible for the results of downsizing in the agency, organization, or unit assigned to manage according to his/her competence.

- Subjects of downsizing, if they are elected or re-recruited into agencies, organizations, or units receiving salaries from the state budget within 60 months from the date of downsizing, must return the received allowances to the agencies, organizations, and units that have paid the allowances.

3. Funding sources for downsizing in Vietnam

Pursuant to Article 11 of Decree 29/2023/ND-CP, the funding sources for downsizing are as follows:

- Funding for settlement of the policy of downsizing the payroll for the subjects specified in Clauses 1 and 3, Article 2 of Decree 29/2023/ND-CP shall be provided by the state budget.

Particularly for the subjects who are public employees in public non-business units, they can self-finance their own recurrent and investment expenses; in public non-business units that self-finance their own recurrent expenditures according to the Government's regulations, the funding for settlement of the policy of downsizing the payroll shall be taken from the non-business revenues of the units.

Particularly for those working under the labor contract regime, who are entitled to the same regimes and policies as civil servants according to the Government's regulations, the funding for the settlement of the policy on downsizing the payroll is taken from the regular funding of agencies and organizations.

- Funding for the settlement of downsizing policies for the subjects specified in Clause 2, Article 2 of Decree 29/2023/ND-CP shall be taken from regular funding or non-business revenues of the unit.

- Funding for settlement of the policy on downsizing the payroll for the subjects specified in Clause 1, Article 18 of Decree 29/2023/ND-CP shall be taken from the Association's regular budget, including the state budget to support recurrent expenditures, membership fees, and other lawful funding sources as prescribed by law.

- Funding for settlement of the policy on downsizing the payroll for the subjects specified in Clauses 2 and 3, Article 18 of Decree 29/2023/ND-CP, shall be taken from the source for implementing policies on redundant employees of that enterprise when changing ownership or rearranging the enterprise in accordance with law.

- Funding for settlement of the policy of downsizing the payroll for the subjects specified in Clause 4, Article 18 of Decree 29/2023/ND-CP shall be taken from the regular funding of the off-budget State Financial Fund.

Best regards!

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