What is defense and security enterprise? What are the rights and obligations of defense and security enterprises in Vietnam? – Xuan Uyen (Quang Nam, Vietnam)
Article table of contents
Vietnam: What is defense and security enterprise? (Internet image)
1. What is defense and security enterprise?
According to Clause 2, Article 2 of Decree 47/2021/ND-CP, defense and security enterprise means a state-owned enterprise that directly serves defense and security or combines business operation with defense and security as prescribed in Clause 5 Article 217 of the Law on Enterprises 2020 and satisfies the conditions specified in Article 13 of Decree 47/2021/ND-CP.
An enterprise will be identified as a defense and security enterprise in the following cases:
- All of the following conditions are satisfied:
+ The enterprise is a single-member limited liability company in which state ownership is represented by the Ministry of National Defense or the Ministry of Public Security.
+The enterprise’s sector and location is included in the List of sectors and areas directly serving defense and security in Appendix 1 of this Decree.
+ The enterprise is assigned by the Ministry of National Defense or the Ministry of Public Security to produce, supply defense and security-related products and services or perform defense and security tasks using resources of the State of the enterprise that are suitable for the objectives of the enterprise.
- Other cases decided by the Prime Minister to meet defense and security requirements at the time.
2. Rights and obligations of defense and security enterprises in Vietnam
Defense and security enterprises have the rights and obligations specified in Article 9 of the Law on Enterprises 2020 and Article 14 of Decree 47/2021/ND-CP, specifically as follows:
- Have the rights and obligations specified in Article 7, Article 8 and relevant regulations of the Law on Enterprises 2020.
- Be reimbursed in accordance with bidding laws or collect payments as prescribed by competent authorities.
- Have appropriate time to provide products/services to recoup investment and make reasonable profit.
- Provide products/services with adequate quantity, good quality and on schedule at the prices imposed by competent authorities.
- Ensure fairness and convenience for customers.
- Take legal responsibility for the quantity, quality, supply conditions and prices for their products/services.
- Defense and security enterprise shall be provided by the Ministry of National Defense or the Ministry of Public Security of Vietnam with adequate resources and charter capital to perform assigned defense and security tasks.
- Defense and security enterprises may use the provided resources to engage in additional business activities other than defense and security tasks when the following conditions are satisfied:
+ These activities are approved in writing by the Ministry of National Defense or the Ministry of Public Security of Vietnam;
+ These business activities are meant to support defense and security tasks or improve efficiency of property after the assigned defense and security tasks have been fulfilled;
+ These activities do not cause reduction in capacity or affect the performance of assigned defense and security tasks;
+ Taxes are fully paid as prescribed by law.
- Manage the use of provided resources for performance of defense and security tasks in accordance with applicable regulations on the management and use of state property in the people’s armed forces and relevant laws.
- Comply with decisions of the Ministry of National Defense or the Ministry of Public Security on transfer of capital or assets serving performance of defense and security tasks of the enterprise to other enterprises for performance of defense and security tasks where necessary. In this case, the Ministry of National Defense or the Ministry of Public Security shall be responsible for the debts and other liabilities of the enterprise.
- Changes or addition of business lines are subject to approval by the Ministry of National Defense or the Ministry of Public Security.
- Comply with regulations of law on international cooperation and regulations of the Ministry of National Defense or the Ministry of Public Security during association with foreign organizations and individuals in performance of defense and security tasks.
Van Trong
