Vietnam: Public service providers self-cover their recurrent and investment expenditures

Vietnam: Public service providers self-cover their recurrent and investment expenditures (Illustrative Image)

According to Decree 120/2020/ND-CP, public service providers in Vietnam will have autonomy regarding their organizational structure. To be specific:

- Public service providers self-covering their recurrent and investment expenditures in Vietnam have the authority to establish, reorganize, and dissolve their affiliated and subordinate units according to the autonomy scheme approved by the competent authority, ensuring suitability with their functions, tasks, and meeting the criteria, conditions, and standards as prescribed by law;

- Public service providers self-covering their recurrent expenditures in Vietnam have the authority to establish, reorganize, and dissolve units that are not part of the organizational structure of constituent units as per the decision of the competent authority when meeting the criteria, conditions, and standards as prescribed by law; develop plans to reorganize constituent units for submission to the competent authority for approval;

- Public service providers partially covering their recurrent expenditures, public service providers whose recurrent expenditures are funded from the state budget in Vietnam shall develop plans to reorganize and streamline the organizational structure of the unit for submission to the competent authority for approval in accordance with the law;

- The establishment of divisions, offices, and other constituent organizations that are not public service providers (hereafter collectively referred to as divisions) under public service providers self-covering their recurrent expenditures, public service providers partially covering their recurrent expenditures, public service providers whose recurrent expenditures are funded from the state budget in Vietnam must meet the following criteria: The work or field undertaken by the division must encompass at least two work areas and have a separate management process as required by the subjects; the volume of work of the division must necessitate the allocation of at least 07 working public employees.

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

Thuy Tram

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