Principles for the establishment and dissolution of public service providers in the field of construction in Vietnam from February 19, 2025

Principles for the establishment and dissolution of public service providers in the field of construction in Vietnam from February 19, 2025

On December 30, 2024, the Minister of Construction of Vietnam promulgated Circular 15/2024/TT-BXD specifying the criteria for classification, conditions for establishment, merger, consolidation, and dissolution of public service providers in the construction sector.

Principles for the establishment and dissolution of public service providers in the field of construction in Vietnam from February 19, 2025

According to Article 3 of Circular 15/2024/TT-BXD, the establishment, merger, consolidation, and dissolution of public service providers in the construction sector must adhere to the following principles:

- The establishment, merger, consolidation, and dissolution of public service providers in the construction sector must comply with the provisions of Article 4 of Decree 120/2020/ND-CP by the Government of Vietnam, which regulates the establishment, reorganization, and dissolution of public service providers, specifically:

+ The establishment, reorganization, or dissolution of public service providers must ensure compliance with the conditions, procedures, and authority prescribed in Decree 120/2020/ND-CP (in case the specialized law has different provisions, the specialized law shall prevail); a public service provider may offer multiple similar public service activities.

+ Newly established public service providers (including public service providers under other public service providers) must self-finance their recurrent expenditures and investments (except when new establishments are required to provide basic and essential public services). For public service providers under other self-financed public service providers, even when establishing for basic and essential public services, self-financing of recurrent expenditures and investments is required.

+ Ineffectively operating public service providers should be reorganized or dissolved. Reorganizing public service providers should not increase the number of employees drawing government salaries as approved by competent authorities, and must ensure conformity in the number of deputy heads and implement staffing streamlining as required.

- Public service providers in the construction sector but under the management of other Ministries and sectors must also comply with related legal regulations and the specific regulations of those Ministries and sectors.

Guidelines for classifying public service providers in the construction sector in Vietnam by function and task from February 19, 2025

Classification of public service providers in the construction sector by function and task is performed according to Article 4 of Circular 15/2024/TT-BXD as follows:

- Public service providers serving state management in the construction sector must have at least one of the following areas: construction planning; architecture, construction investment activities, urban development, technical infrastructure, housing, real estate market, and building materials.

- Public service providers providing public services:

+ public service providers providing public services utilizing state budgets or basic and essential public services in the construction sector as approved by competent authorities;

+ Public service providers providing other public services in the construction sector.

- Public service providers serving state management and providing public services are units performing one or multiple functions, tasks specified in Clause 1 and one or multiple functions, tasks specified in Clause 2 Article 4 of Circular 15/2024/TT-BXD.

The classification of public service provider types as stated in Clause 3, Article 4 of Circular 15/2024/TT-BXD is based on the functions and tasks approved by competent authorities.

For more details, please refer to Circular 15/2024/TT-BXD, effective from February 19, 2025.

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