May Public Officials Establish Cooperatives in Vietnam?

Short answer: In principle, yes. A public official may join a cooperative as an individual member because a cooperative is not an enterprise — the prohibition on officials “establishing or managing enterprises” does not directly apply to joining a cooperative. However, officials must comply with regulations on conduct prohibited for cadres and public officials, particularly when holding management or executive positions in the cooperative or where there is a conflict of interest with their official duties.

Legal basis

• The Law on Cooperatives 2023 (No. 17/2023/QH15, effective from 01/7/2024) — cooperative members;
• Laws on cadres and public officials and anti-corruption — acts prohibited for cadres and public officials.

Conditions for becoming a cooperative member

• Individuals aged 18 or older with full civil act capacity;
• Endorsing the cooperative charter, voluntarily contributing capital and effort;
• The Law on Cooperatives 2023 does not exclude public officials from membership.

Why may public officials join cooperatives?

• A cooperative is a collective economic organisation with legal personality, not an enterprise under the Enterprise Law;
• The ban on officials establishing, managing or operating enterprises is not the same as joining a cooperative;
• In practice, many public officials are members of agricultural, credit or transport cooperatives.

Limits officials should note

• When holding management or executive positions in the cooperative: check regulations on prohibited conduct and codes of conduct for cadres and officials, and avoid conflicts of interest;
• Do not abuse official position for the benefit of the cooperative they join;
• Declare assets and income under anti-corruption regulations if subject to declaration;
• Comply with the regulations of the official’s managing authority (some agencies have stricter internal rules).

If you need to determine the appropriate approach for your specific situation, you should discuss it with a lawyer beforehand to have your file reviewed and a suitable solution advised.

For quick advice, you may contact a lawyer via 0966.475.966.

Related articles

• May an organisation without legal personality become a cooperative member?
• Conditions for establishing a cooperative
• Is a cooperative an enterprise?