Can a partnership company be a defense or security enterprise?

1. What is a defense and security enterprise?

According to Article 2 of Decree 47/2021/ND-CP, a defense and security enterprise is regulated as follows:

A defense and security enterprise is a state-owned enterprise that directly serves national defense and security or combines economics with national defense and security as prescribed in Clause 5, Article 217 of the Law on Enterprises. meet the conditions specified in Article 13 of this Decree.

2. Can a defense and security enterprise be a partnership?

According to Article 13 of Decree 47/2021/ND-CP, an enterprise is determined to be a defense and security enterprise in the following cases:

– Ensuring the following conditions at the same time:

+ Is a one-member limited liability company The Ministry of National Defense and the Ministry of Public Security exercise the right to represent the state owner at the enterprise.

+ Having industries, fields and areas of operation specified in Appendix 1 of the List of industries, fields or areas directly serving national defense and security attached to this Decree.

+ Being assigned by the Ministry of National Defense and the Ministry of Public Security to produce and supply defense, security or food products and services. Carry out national defense and security tasks using State resources or enterprise resources in accordance with investment goals and business establishment.

– Other cases considered and decided by the Prime Minister to meet the requirements and tasks of national defense and security from time to time.

Thus, defense and security enterprises must not be a partnership but must be a limited liability company. members are appointed by the Ministry of National Defense and the Ministry of Public Security to exercise the right to represent the state owner at the enterprise, unless otherwise considered and decided by the Prime Minister.

3. What policies are applied to defense and security enterprises and workers in defense and security enterprises?

According to Article 16 of Decree 47/2021/ND-CP the policies for defense and security enterprises and workers at defense and security enterprises are prescribed as follows:

– Defense and security enterprises are entitled to apply the following policies:

+ Exempt or reduce land rent, land use fees and land use tax for land areas assigned to manage and use for national defense and security tasks in accordance with the provisions of the Land Law and guiding documents;

+ The State guarantees expenses including: military equipment for officers, professional soldiers, defense workers, non-commissioned officers, and police workers; spending on drills, combat training, and reserve training; Expenditures for national defense, security, defense services, and civil-military relations. In case the state budget is not sufficient, these costs can be accounted for in the costs of production and business activities of the enterprise and these costs can be excluded when evaluating and classifying enterprises according to the Government’s regulations;

+ Receive funding from the State for the maintenance, repair, and operation of national defense and security production lines in case of temporary production suspension without the ability to recoup costs;

+ Receive support from the State for 02 reward and welfare funds equal to 02 months’ salary in case of insufficient resources for appropriation;

+ Receive financial support from the State for kindergartens and education in areas that do not have schools under the public education system; Medical funding for places where due to special conditions, clinics must be maintained;

+ Depreciation is calculated for fixed assets that are investment lines for the production of weapons, ammunition, and equipment serving national defense and security tasks with large investment capital according to the guidance of the Ministry of Finance.

– Employees in defense and security enterprises are entitled to the following regimes and policies:

+ Wages of employees who are officers, professional soldiers, and non-commissioned officers are calculated in accordance with regulations on regimes and policies of the law for officers, professional soldiers, non-commissioned officers and based on the production and business results of the enterprise.

+ When performing national defense and security tasks, if an employee is injured or dies and meets the conditions and standards, he or she will be considered and certified as a person with meritorious services according to the provisions of law on people with meritorious services; Employees who have a work accident will be considered for work accident benefits according to the provisions of labor law.

+ The State ensures funding for salaries and social insurance contributions for officers and professional soldiers in preparation for retirement; pay expenses for military deployment, demobilization, demobilization, and job termination according to current regimes; Support for paying salaries to the minimum number of workers needed to maintain businesses to operate defense and security production lines in case of temporary production suspension without the ability to compensate for costs themselves.