If public employees are not allowed to set up a business, can they contribute capital in Vietnam?
As far as I know, public employees are not allowed to set up businesses. So can they contribute capital? Hope to get a reply soon.
If public employees are not allowed to set up a business, can they contribute capital in Vietnam?
In Clause 3, Article 17 of the Enterprise Law 2020, there is a provision:
3. Organizations and individuals have the right to contribute capital, buy shares and stakes of joint stock companies, limited liability companies and partnerships in accordance with this Law, except:
a) State authorities, People’s armed forces contributing state-owned assets to enterprises to serve their own interests;
b) The entities that are not allowed to contribute capital to enterprises prescribed by the Law on Officials, the Law on Public Employees, and Anti-corruption Law.
Thus, according to the above regulations in Vietnam, public employees are not allowed to establish and manage enterprises. But still contributed capital. The capital contribution must be ensured in accordance with the provisions of the Law on Public Employees, the Law on Anti-corruption.
According to Clause 3, Article 14 of the Law on Public Employees 2010 on rights of public employees to do business and work outside prescribed hours:
1. To carry out professional activities after working hours stated in working contracts, unless otherwise provided for by law.
2. To sign with agencies, organizations and units other than their employing public non-business units piecework contracts which are not banned by law, provided that they accomplish their assigned tasks and obtain consent of the heads of their public non-business units.
3. To contribute capital to but be disallowed to participate in managing and administering limited liability companies, joint-stock companies, partnerships, cooperatives, and private hospitals, schools or scientific research institutions, unless otherwise provided for by law.
And in Clause 2, Article 20 of the Law on Anti-corruption 2018, there are provisions:
2. Office holders in state organizations are prohibited from:
a) Harassment during task performance;
b) Establishing, participating in administration of sole proprietorships, limited liability companies, joint-stock companies, partnerships and cooperatives, unless otherwise prescribed by law;
c) Providing information about state secrets, business secrets or other secrets about their tasks or any task in which they participate for other domestic and foreign organizations and individuals;
d) Establishing, holding managerial or executive positions in sole proprietorships, limited liability companies, joint-stock companies, partnerships and cooperatives in the field that was under their management according to regulations of the Government;
dd) Illegally using information of their organizations;
e) Other actions that office holders must not do according to the Law on officials and public employees, the Law on Enterprises and relevant laws.
Best Regards!
