Vietnam: Newest conditions for establishment of a public service provider

Vietnam: Newest conditions for establishment of a public service provider

According to Decree 120/2020/ND-CP, the establishment of a public service provider in Vietnam must satisfy the following conditions:

- Be consistent with the national sector planning or network planning for public service providers (if any) approved by competent authorities;

- Meet the criteria for establishing a public service provider as stipulated by specialized law;

- Clearly define the objectives, functions, and tasks of the public service provider providing public services and serving state management;

- Have a minimum number of 15 employees (except for public service providers providing basic and essential public services established according to specialized law provisions).

+ For public service providers that self-cover recurrent expenditures and those that self-cover recurrent and investment expenditures, the minimum number of public employees shall follow the Establishment Scheme. For public service providers that self-cover recurrent and investment expenditures and operate under the enterprise mechanism, the minimum number of personnel includes public employees and professionals working under employment contracts.

+ For overseas public service providers, the number of employees is approved by the Prime Minister of Vietnam in the Establishment Scheme.

- Have office premises or a land allocation scheme for building office premises approved by competent authorities (in the case of new office construction); initial necessary equipment; human resources and operating funds as stipulated by law.

- Overseas public service providers: In addition to meeting the above conditions, they must also conform to the foreign policy of the Communist Party of Vietnam, the State, and agreements between the Government of Vietnam and the host country's government regarding the establishment and operation of public service providers.

More details can be found in Decree 120/2020/ND-CP effective from December 1, 2020.

Thuy Tram

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