Conditions for dissolution of public non-business units in Vietnam

Conditions for dissolution of public non-business units in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Conditions for dissolution of public non-business units in Vietnam

Specifically, in Clause 3, Article 5 of Decree 120/2020/ND-CP, conditions for dissolution of public non-business units are as follows:

- No longer functions and tasks of providing public non-business services and serving state management;

- Failing to meet the criteria for establishing a public non-business unit as prescribed by law;

- Three consecutive years of ineffective operation, according to the assessment of the competent authority;

- Complying with the national sector planning or the network planning of public non-business units (if any) approved by the competent authorities;

- For overseas public non-business units: In addition to meeting one of the conditions specified at Points a, b, c, d, Clause 3, Article 5 of Decree 120/2020/ND-CP, it is necessary to ensure compliance with the foreign policy of the Party and State and the agreement between the Government of the Socialist Republic of Vietnam and the Government of the host country on the dissolution of public non-business units.

2. Conditions for establishing public non-business units in Vietnam

Pursuant to Clause 1, Article 5 of Decree 120/2020/ND-CP, the conditions for establishing a public non-business unit are as follows:

- In accordance with the national sector planning or the network planning of public non-business units (if any) approved by the competent authorities;

- Satisfying the criteria for establishing a public non-business unit in accordance with specialized laws;

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

- Ensuring the minimum number of employees is 15 (except for public non-business units providing basic and essential public non-business services established in accordance with specialized laws).

For public non-business units that cover recurrent and investment expenditures by themselves, when establishing these units, the minimum number of people working as public employees shall be determined according to the establishment scheme.

For non-business units that cover their own recurrent and investment expenses, operating under the enterprise mechanism, the minimum number of employees, including public employees and professionals under the labor contract regime.

For overseas public non-business units, the number of employees shall be approved by the Prime Minister in the Scheme on establishment of public non-business units.

- Having a working office or a land allocation scheme for the construction of a working office already approved by a competent authority (in case of the construction of a new office); initial necessary equipment; human resources; and operating funds as prescribed by law.

- Overseas public non-business units: In addition to satisfying the conditions specified at Points a, b, c, d, dd, Clause 1, Article 5 of Decree 120/2020/ND-CP, it is necessary to ensure compliance with the foreign policy of the Party and State and the agreement between the Government of the Socialist Republic of Vietnam and the Government of the host country on the establishment and operation of public non-business units. .

3. Conditions for reorganization of public non-business units in Vietnam

Conditions for the reorganization of public non-business units are specified in Clause 2, Article 5 of Decree 120/2020/ND-CP as follows:

- There are adjustments in functions, tasks, and powers to be consistent with the national sector planning or the network planning of public non-business units (if any) approved by competent authorities; ensure to improve operational efficiency and meet the regulations on the minimum number of employees specified at Point d, Clause 1, Article 5 of Decree 120/2020/ND-CP;

- Failing to meet the criteria for establishing a public non-business unit as prescribed by law;

- The reorganization of the units does not reduce the existing financial autonomy of the units; In the case of consolidation or merger of public non-business units with financial autonomy at different levels, the degree of financial autonomy of public non-business units after consolidation or merger shall comply with the decisions of competent agencies;

- For overseas public non-business units: In addition to meeting one of the conditions specified at Points a, b, and c, Clause 2, Article 5 of Decree 120/2020/ND-CP, it is necessary to ensure conformity with the foreign policy of the Party and State and the agreement between the Government of the Socialist Republic of Vietnam and the Government of the host country on the reorganization and operation of public non-business units. 

Ho Quoc Tuan

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