Can University Lecturers Establish and Manage Enterprises in Vietnam?

Short answer: In principle, cadres, civil servants, and public employees may not establish or manage enterprises where prohibited by law (Clause 2, Article 17 of the Law on Enterprises 2020). The extent of restriction differs among groups: cadres and civil servants face an almost absolute prohibition; public employees (including lecturers at public institutions) are restricted under the Law on Public Employees and anti-corruption regulations — in principle they may not establish, participate in managing, or operate enterprises, except for certain special cases permitted by law (e.g., managing an enterprise as assigned by the State). Specific cases should be checked against current regulations. Legal basis: the Law on Enterprises 2020 (as amended by Law No. 76/2025/QH15); the Law on Cadres and Civil Servants 2008 (as amended); the Law on Public Employees 2010 (as amended); the Law on Anti-Corruption 2018.

Legal basis

• The Law on Enterprises 2020, as amended and supplemented by Law No. 76/2025/QH15 — Clause 2, Article 17;
• The Law on Cadres and Civil Servants 2008 and amending documents;
• The Law on Public Employees 2010 and amending documents;
• The Law on Anti-Corruption 2018 — provisions on conflicts of interest and post-employment restrictions.

Cadres and civil servants: an almost absolute prohibition

• Cadres and civil servants may not establish, participate in establishing, or participate in managing or operating private enterprises, LLCs, joint stock companies, or partnerships;
• They may not contribute capital or purchase shares to participate in managing or operating enterprises (except where otherwise prescribed by law);
• Violations constitute disciplinary breaches, subject to disciplinary sanctions ranging from reprimand to dismissal, and the related enterprise may have its certificate revoked.

Public employees and public-university lecturers: restrictions by position and field

• Public employees (including lecturers at public institutions) in principle may not establish, participate in managing, or operate enterprises;
• Certain activities are permitted: contributing capital without participating in management or operation (within the limits permitted by law); scientific activities and technology transfer as prescribed;
• Public-university lecturers participating in science–technology spin-off enterprises derived from research results: certain incentive policies have special mechanisms — current regulations and the institution’s rules must be checked;
• Public employees assigned to represent state capital at enterprises: may participate in management under the assignment decision.

What cadres, civil servants, and public employees must avoid

• Acting as a nominee for others to establish a company — still deemed a violation if in substance they participate in management or operation;
• Having relatives act as nominees while actually managing the business — risk of detection through cash flows, signatures, and management activities;
• Holding concurrent enterprise management titles (director, member of the Members’ Council, Board of Directors) while being a cadre, civil servant, or public employee;
• After resignation or retirement: certain special positions (persons with functions and powers) remain subject to restrictions on establishing or managing enterprises in the fields they previously managed for a certain period under the Law on Anti-Corruption.

How to do business lawfully

• Resign from the public sector (after the post-employment restriction period expires) and then establish an enterprise;
• Relatives (spouse, adult children) establish and manage the enterprise independently in their own right — ensuring no actual management participation by the person who is a cadre, civil servant, or public employee;
• Participate as an expert or advisor (not a management title) within the limits permitted by law and the agency’s rules.

Frequently asked questions

May a public lecturer open their own language center?

In principle, public employees may not establish or manage enterprises. A lecturer wishing to open a center must terminate their public-employee status or have another person (who is qualified) establish and actually manage it — specific cases should receive individual advice.

Is it a violation for a civil servant to buy shares on the stock exchange?

Buying shares as a small retail investor, without participating in managing or operating the enterprise — in principle this is not a prohibited act; however, conflict-of-interest rules should be noted if the work relates to that enterprise.

May a retiree open a company immediately?

Yes, once retired and no longer an incumbent cadre, civil servant, or public employee — except for post-employment restrictions applicable to persons who held functions and powers in related fields under the Law on Anti-Corruption.

Notes on applying current regulations

This is an area where many legal instruments intersect (the Law on Enterprises, the Law on Cadres and Civil Servants, the Law on Public Employees, the Law on Anti-Corruption) and some points remain not entirely clear in practical application — particularly for scientific public employees and lecturers participating in spin-offs. Specific cases should be carefully reviewed by a lawyer before deciding. Contact ANT Legal at 0966.475.966 for advice.

Common risks to note

• Cadres or civil servants standing in to establish a company — disciplinary action and certificate revocation;
• “Underground” management through relatives as nominees;
• Violating post-employment restrictions for persons with functions and powers;
• Applying outdated regulations without updating amending documents.

How ANT Legal can help

ANT Legal advises on the legal capacity of cadres, civil servants, and public employees in business activities; designs lawful business participation plans; reviews disciplinary and conflict-of-interest risks. For prompt advice, please contact a lawyer at 0966.475.966.

Related articles

• Persons without the right to establish and manage enterprises in Vietnam
• Working regime, conditions, and procedures for Members’ Council meetings in state-owned enterprises
• Company and enterprise establishment services nationwide in Vietnam
• Procedures for registering a private enterprise in Vietnam
• Legal notes when establishing an enterprise in Vietnam