List of sectors and fields for implementing conversion of Public Service Providers into Joint Stock Companies in Vietnam from December 10, 2024

List of sectors and fields for implementing conversion of Public Service Providers into Joint Stock Companies in Vietnam from December 10, 2024 (Image from the Internet)

On October 25, 2024, the Prime Minister of the Government of Vietnam issued Decision 17/2024/QD-TTg amending and supplementing certain articles of Decision 26/2021/QD-TTg regarding the List of sectors and fields for implementing conversion of Public Service Providers into Joint Stock Companies in Vietnam.

List of sectors and fields for implementing conversion of Public Service Providers into Joint Stock Companies in Vietnam from December 10, 2024

From December 10, 2024, the list of sectors and fields for implementing conversion of public service providers into joint stock companies in Vietnam is stipulated as follows:

(1) List of sectors and fields where public service providers are transformed into joint stock companies, with the State holding more than 50% charter capital:

- Exploitation, production, and supply of clean water; urban and rural drainage;

- Safety technical inspection of labor;

- Construction inspection;

- Technical inspection of road motor vehicles, and inland waterway means of transportation (excluding maritime ship and offshore project registration fields).

(2) List of sectors and fields where public service providers are transformed into joint stock companies, with the State holding up to 50% charter capital or not maintaining shares; when initially offering shares, the State holds between 35% to 50% charter capital to ensure the State's role, organizational stability, and the maintenance of service quality post-equitization:

- Environmental sanitation, wastewater treatment;

- Public lighting;

- Advisory services in areas: urban planning, accounting, auditing, taxation, valuation, market research, opinion polling, business management consulting;

- Technical support services for scientific and technological research; services related to intellectual property, technology transfer, standards, technical regulations, product quality measurement, goods; information services, consultancy, training, fostering, dissemination, applications of scientific and technological achievements in socio-economic fields;

- Labor market information services, employment services, support for labor relations development, sending Vietnamese workers abroad under contracts (excluding Employment Service Centers under the Departments of Labor, Invalids and Social Affairs of provinces, centrally-run cities, and under the Ministry of Labor, Invalids and Social Affairs);

- Management and maintenance of the road system;

- Management and maintenance of port, terminal;

- Driver training and testing (not operating on the model of a school);

- Exhibition ground trading, trade promotion, and investment;

- Support services, providing market information, tourism promotion;

- Real estate management, market management, commercial centers;

- Operation of guesthouses, lodging facilities; short-term accommodation and meeting services;

- Industrial park infrastructure development, industrial cluster and supporting services within industrial parks, industrial clusters (excluding land fund development fields).

Conditions for converting public service providers into joint stock companies in Vietnam

To be specific, public service providers stipulated in Clause 1, Article 2 of Decree 150/2020/ND-CP shall be transformed into joint stock companies when simultaneously meeting the following conditions:

- Independently ensuring regular and investment expenses or independently ensuring regular expenses in the most recent year by the time of transformation.

- Retaining state capital after financial treatment and re-evaluation of public service provider's value.

- Belonging to the list of sectors and fields transforming public service providers into joint stock companies as decided by the Prime Minister of the Government of Vietnam in each period. This list does not include sectors and fields for which specialized laws stipulate not transforming public service providers into joint stock companies.

- Having a plan to reorganize and handle houses and lands approved by competent authorities according to the regulations on the management and use of public assets.

(Article 4 of Decree 150/2020/ND-CP)

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