Vietnam: Conditions for reorganization and dissolution of public service providers

Vietnam: Conditions for reorganization and dissolution of public service providers (Illustrative photo)

Conditions for the reorganization and dissolution of public service providers in Vietnam are stipulated in Article 5 of Decree 120/2020/ND-CP as follows:

1. Conditions for the reorganization of public service providers in Vietnam:

- There must be adjustments regarding functions, tasks, and authorities to be consistent with the national sector planning or the network planning of public service providers (if any) approved by the competent authority; ensuring the enhancement of operational efficiency and meeting the regulations on the minimum number of employees;

- The criteria for establishing a public service provider as prescribed by law are not met;

- The reorganization of units ensures non-reduction of the existing financial autonomy level of the public service provider; in cases of merger or consolidation of financially autonomous public service providers at different levels, the financial autonomy level of the public service provider after the merger or consolidation shall follow the decision of the competent authority;

- Overseas public service providers: In addition to meeting one of the above conditions, overseas public service units must comply with the foreign policy of the Communist Party of Vietnam, the State, and the agreement between the Government of the Socialist Republic of Vietnam and the government of the host country regarding the reorganization and operation of the public service provider.

2. Conditions for dissolution of public service providers:

- Public service providers no longer functions and tasks of providing public services, serving state management;

- Public service providers fail to meet the criteria for establishing a public service provider as prescribed by law;

- Public service providers have three consecutive years of ineffective operation as evaluated by the competent authority;

- Public service providers are dissolved according to the national sector planning or the network planning of public service providers (if any) approved by the competent authority;

- Overseas public service providers: In addition to meeting one of the above conditions, they must comply with the foreign policy of the Communist Party of Vietnam, the State, and the agreement between the Government of the Socialist Republic of Vietnam and the government of the host country regarding the dissolution of the public service provider.

More details can be found in Decree 120/2020/ND-CP effective from December 01, 2020.

Thuy Tram

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