Vietnam: Conditions for establishing public service units in the field of industry and commerce

Vietnam: Conditions for establishing public service units in the field of industry and commerce
Võ Ngọc Nhi

The Minister of Industry and Trade of Vietnam issued Circular 16/2022/TT-BCT October 10, 2022 on classification criteria and conditions for establishment, merger, consolidation and dissolution of public non-business units in the industry and trade sector.

The establishment of a public service unit operating in the industry and trade sector must satisfy the conditions for the establishment of a public non-business unit as prescribed in Clause 1, Article 5 of Vietnam's Decree 120/2020/ND-CP. For example,

- Conform to the national sector planning or the network planning of public service units (if any) approved by competent authorities;
- Satisfying the criteria for establishing a public non-business unit as prescribed;
- Clearly define the objectives, functions, and tasks of the public service provider, serving the state management;
- Ensure the minimum number of people working is 15 people (except for public service units providing basic and essential public non-business services established according to regulations).
For public service units self-financing recurrent expenditures, public employees self-financing recurrent and investment expenditures, upon the establishment of these units, the minimum number of employees working as public employees is determined. under the Establishment Scheme.
For public service units that self-finance recurrent and investment expenditures, operating under the enterprise mechanism, the minimum number of employees shall include public employees and professionals under labor contract regimes. 
For overseas public service units, the number of employees shall be approved by the Prime Minister of Vietnam in the Scheme on the establishment of public service units, etc.
More details can be found in Clause 1, Article 5 of Vietnam's Decree 120/2020/ND-CP.
Vietnam's Circular 16/2022/TT-BCT takes effect from November 28, 2022.


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