Criteria for classifying public non-business units in industry and trade sectors in Vietnam

Criteria for classifying public non-business units in industry and trade sectors in Vietnam (Internet image)

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

1. Criteria for classifying public non-business units in industry and trade sectors

According to Article 3 of Circular 16/2022/TT-BCT, the classification of public non-business units in the industry and trade sector is based on the following criteria:

1.1. Classification according to the degree of financial autonomy in Vietnam

- Public non-business units self-finance recurrent and investment expenditures;

- Public non-business units self-finance recurrent expenditures;

- Public non-business units cover part of recurrent expenditure by themselves;

- Public non-business units whose recurrent expenditures are guaranteed by the State.

1.2. Classification by functions and tasks in Vietnam 

(i) Public non-business units serving the state management

+ Public non-business units performing the research function in service of strategic planning and building and perfecting institutions and policies on industry and trade;

+ Public non-business units perform the function of propagating the Party's guidelines and policies, the State's laws, and information on industry and trade;

+ Public non-business units performing the function of training and fostering civil servants, public employees, and workers in industry and trade;

+ Public non-business units performing other functions in service of state management in the industry and trade sectors.

(ii) Public non-business units providing public non-business services

+ Public non-business units in the field of inspection, assessment, certification, testing, consulting, and supporting industrial safety;

+ Public non-business units in the field of environment and cleaner production

+ Public non-business units in the field of chemicals, chemical management, incident response, and chemical safety;

+ Public non-business units in the field of sustainable production and consumption;

+ Public non-business units in the field of economical and efficient use of energy;

+ Public non-business units in the field of electricity support and electricity market development;

+ Public non-business units in the field of energy and renewable energy project management, management and operation of energy information systems;

+ Public non-business units in the field of supporting the development of industry and supporting industries;

+ Public non-business units in the field of competition management, protection of consumers' interests and management of business activities in a multi-level manner;

+ Public non-business units in the field of trade remedies;

+ Public non-business units in the field of import and export;

+ Public non-business units in the field of trade promotion, investment promotion and development of industry and trade;

+ Public non-business units in the field of e-commerce and digital technology;

+ Public non-business units in the field of industrial promotion;

+ Public non-business units in the field of information and communication in industry and commerce;

+ Public non-business units in the field of health, industrial environment;

+ Public non-business units providing other public services in the field of industry and trade.

(iii) Public non-business units that support state administration and provide public non-business services

The public non-business unit performs at least one function and task specified in (i) and one function specified in (ii).

The determination of the type of public non-business unit in the industry and trade sector specified in this Clause is based on the functions and tasks of the public non-business unit as approved by a competent authority.

2. Conditions for merger and consolidation of non-business units in industry and trade sectors in Vietnam

Specifically, in Article 5 of Circular 16/2022/TT-BCT, conditions for merger and consolidation of non-business units in the industry and trade sectors are as follows:

(1) A public non-business unit in the industry and trade sector may be merged or consolidated when one of the conditions for establishing a public non-business unit in Clause 1 Article 5 of Decree 120/2020/ND-CP is not satisfied. 

(2) 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 the 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.

(3) The merger and consolidation of public non-business units must not reduce the existing level of financial autonomy of the unit; In case of merger or consolidation of public administrative units, the financial autonomy of the public administrative units shall be at different levels; the degree of financial autonomy of the public administrative units shall be determined after the merger, and the consolidation will be decided by the competent authority.

(4) Public non-business units in foreign industry and trade fields: in addition to meeting the conditions specified in (1), (2), (3), 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 merger and consolidation of public non-business units.

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