In what fields in Vietnam are persons with certain positions and powers under the Ministry of Construction not allowed to establish a business after being discharged from holding their positions?

In what fields in Vietnam are persons with certain positions and powers under the Ministry of Construction not allowed to establish a business after being discharged from holding their positions? (Internet image)

Regarding this issue, LawNet would like to answer as follows:

On August 1, 2023, the Minister of Construction issued Circular 05/2023/TT-BXD on list of sectors and periods over which persons with certain positions and powers must not establish or hold managerial titles or positions in sole proprietorships, limited liability companies, joint-stock companies, partnerships and cooperatives after being discharged from holding their positions under management of the Ministry of Construction.

In what fields in Vietnam are persons with certain positions and powers under the Ministry of Construction not allowed to establish a business after being discharged from holding their positions?

Specifically, sectors that persons with certain positions and powers must not establish or hold managerial titles or positions in sole proprietorships, limited liability companies, joint-stock companies, partnerships and cooperatives after being discharged from holding their positions include:

(1) Construction planning, architecture.

(2) Construction investment.

(3) Urban development.

(4) Infrastructure.

(5) Houses, offices and real estate market.

(6) Building materials.

(7) Science and technology in construction.

(8) Management of wholly state-owned enterprises.

(9) Programs, projects and schemes in the sectors prescribed in (1) to (7).

What are the periods over which persons with certain positions and powers must not establish business after being discharged from holding their positions in Vietnam?

According to Article 5 of Circular 05/2023/TT-BXD, periods over which persons with certain positions and powers must not establish or hold managerial titles or positions in sole proprietorships, limited liability companies, joint-stock companies, partnerships and cooperatives after being discharged from holding their positions are regulated as follows:

- Within 24 months from the date on which the persons have been discharged from holding their positions under the decisions of the competent authorities, the persons with certain positions who have worked in the sectors specified in (1) to (6) must not establish or hold managerial positions in sole proprietorships, limited liability companies, joint-stock companies, partnerships in the sectors that they were responsible for management.

- Within 12 months from the date on which the persons have been discharged from holding their positions under the decisions of the competent authorities, the persons with certain positions who have worked in the sectors specified in (7) and (8) must not establish or hold managerial positions in sole proprietorships, limited liability companies, joint-stock companies, partnerships in the sectors that they were responsible for management.

- Periods over which persons with certain positions and powers must not establish or hold managerial titles or positions in sole proprietorships, limited liability companies, joint-stock companies, partnerships and cooperatives after being discharged from holding their positions of officials and public employees directly studying, formulating or assessing and approving programs, projects and schemes prescribed in (9) are time limits for completion of such programs, projects and schemes.

Circular 05/2023/TT-BXD takes effect on September 20, 2023.

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