Update: Consolidated document of the Decree guiding the Law on Enterprises in Vietnam

Consolidated document of the Decree guiding the Law on Enterprises in Vietnam

On September 18, 2024, the Ministry of Planning and Investment of Vietnam issued Consolidated Document 7566/VBHN-BKHDT of 2024, consolidating the Decree guiding the Law on Enterprises.

The Consolidation merges 02 Decrees guiding the Law on Enterprises, including:

(i) Decree 47/2021/ND-CP dated April 1, 2021, by the Government of Vietnam detailing certain articles of the Law on Enterprises, effective from April 1, 2021.

(ii) Decree 16/2023/ND-CP dated April 25, 2023, by the Government of Vietnam on the organization, management, and operation of enterprises directly serving national defense and security and enterprises combining economic activities with national defense and security; amending the provisions of point g, clause 1, Article 23 of Decree 47/2021/ND-CP dated April 1, 2021, effective from April 25, 2023.

Consolidated document of the Decree guiding the Law on Enterprises in Vietnam (Image from the internet)

Regulations on enterprises directly serving national defence and security functions in Vietnam

According to Article 3 of Decree 16/2023/ND-CP dated April 25, 2023, by the Government of Vietnam, to qualify as an enterprise directly serving national defence and security functions, an enterprise must satisfy all of the conditions mentioned hereunder:

(1) It must be one of the following types of enterprises:

- A single-member limited liability company wholly owned by the State under the management of the Ministry of National Defense, Ministry of Public Security.

- A single-member limited liability company wholly owned by an enterprise specified in point a, clause 1, Article 3 of Decree 16/2023/ND-CP.

- A multi-member limited liability company wholly owned by single-member limited liability companies wholly owned by the State, in which at least one enterprise is as specified in point a, clause 1, Article 3 of Decree 16/2023/ND-CP.

(2) It must operate in sectors, fields, and geographical areas stipulated in the Appendix on the List of Sectors, Fields, or Areas Directly Serving National Defense, Security attached to Decree 16/2023/ND-CP.

(3) It must be assigned by the Ministry of National Defense, Ministry of Public Security directly or through functional agencies, focal units under the Ministry of National Defense, Ministry of Public Security, or the parent company as a single-member limited liability company wholly owned by the State under the management of the Ministry of National Defense, Ministry of Public Security to produce and provide defense, security products and services, and perform defense, security tasks using resources from the state budget or resources of the enterprise in line with the investment goals and establishment of the enterprise.

Regulations on enterprises serving both business and national defence and security functions in Vietnam

According to Article 3 Decree 16/2023/ND-CP dated April 25, 2023, the regulations on enterprises serving both business and national defence and security functions in Vietnam.

An enterprise identified as combining economic activities with national defense, security must meet the following conditions simultaneously:

1. It must be an enterprise in which the State holds more than 50% of the charter capital or the total number of voting shares, with the Ministry of National Defense, Ministry of Public Security acting as the state owner’s representative.

2. It must be assigned by the Ministry of National Defense, Ministry of Public Security directly or through functional agencies, focal units under the Ministry of National Defense, Ministry of Public Security to produce, supply defense, security products and services; perform defense, security tasks to meet regular or emergency defense, security requirements; implement investment projects related to national defense secrets, important defense tasks, or investment projects in areas with key strategic defense, security importance.

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