Which public non-business units are allowed to convert into joint stock companies in Vietnam?

According to Clause 1 Article 2 of the Decree No. 150/2020/NĐ-CP of the Vietnam’s Government, there are 08 groups of public non-business units that satisfy the conditions for transformation into a joint stock company include:

- Public non-business units affiliated to ministries, ministerial-level agencies, agencies attached to the Government;

- Public non-business units affiliated to units under ministries, ministerial-level agencies, and agencies attached to the Government;

- Public non-business units under provincial People's Committees;

- Public non-business units affiliated to specialized agencies and other administrative organizations of the People's Committee of the province;

- Public non-business units under district-level People's Committees;

- Public non-business units under Hanoi National University, Vietnam National University Ho Chi Minh City;

- Public non-business units belonging to public non-business units under ministries, ministerial-level agencies, Government agencies, provincial-level People's Committees, Hanoi National University, Ho Chi Minh City National University;

- Public non-business units belonging to enterprises in which 100% of charter capital is held by the State.

These public non-business units can be converted into joint stock companies in the two forms specified in Article 5 of this Decree:

- Keep intact the existing state capital in the public non-business units and issue more stocks to increase charter capital.

- Sell a part of the existing State capital or combine the sale of part of state capital with the additional issue of stock to increase charter capital.

View more details at the Decree No. 150/2020/NĐ-CP of the Vietnam’s Government, effective from February 15, 2021.

Phuong Thanh

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