Establishment of the Management Council in Public Service Provider

On January 30, 2018, the Ministry of Transport issued Circular 05/2018/TT-BGTVT, specifically regulating the establishment of a management board in the public service provider.

Principles of Establishment

- Public service units that self-finance regular and investment expenditures must establish a Management Board to make decisions on important issues during the unit's operation.- Based on specific conditions and management requirements, if necessary, the Ministries, Provincial People's Committees of centrally-run cities and provinces (hereinafter referred to as Provincial People's Committees) shall stipulate the establishment of Management Boards for public service providers not covered by the above regulations.

Conditions for Establishment

- Public service providers specified in Clause 1 of this Article must meet the conditions set by the State determining the value of assets to be assigned to the unit for management according to the capital allocation mechanism for enterprises and be recognized by the competent authority, with decisions on asset allocation made following legal regulations.

Establishment Procedures

- Public service units meeting the prescribed conditions shall prepare and submit a dossier to the competent state authority for consideration and decision on the establishment of a Management Board. The establishment procedures follow legal regulations.

Establishment Scheme

- The scheme for establishing the Management Board is developed by the public service provider and submitted to the competent authority or person for consideration and decision on establishment.

Authority to Decide Establishment

- The Minister decides on the establishment of the Management Board within public service providers under the Ministry's management. The Chairman of the Provincial People's Committee decides on the establishment of the Management Board within public service providers under local management.

See details in Circular 05/2018/TT-BGTVT, effective from April 15, 2018.

-Thao Uyen-

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