Can officials working at public hospitals participate in establishing a private hospital?

Who is an officer?

According to the provisions of Article 2 of the 2010 Law on Public Employees, the definition of an employee is as follows:

“Article 2. Officer officials

Officers are Vietnamese citizens recruited according to their job positions, working at public service units according to the working contract regime, receiving salary from the salary fund of the public service units in accordance with the provisions of law.”

Public employees are Vietnamese citizens who are recruited according to their job positions, work at public service units according to the working contract regime, and receive salaries from the salary fund of the public service units in accordance with the provisions of law.

What are public employees not allowed to do?

According to the provisions of Article 19 of the Law on Public Employees 2010, public employees are not allowed to do the following:

“Article 19. Things public employees are not allowed to do

1. Avoid responsibility, abdicate work or assigned tasks conflict; causing factions, disunity; voluntarily quitting jobs; participating in strikes.

2. Using assets of agencies, organizations, units and people contrary to the law.

3. Discriminating against ethnic groups, gender, social groups, beliefs, and religions in any form.

4 to propagate against the Party’s guidelines and policies, the State’s laws or cause harm to the fine customs, culture, and spiritual life of the people and society.

5. Insulting the honor, dignity, and reputation of others while performing professional activities.

6. Other things that public employees are not allowed to do according to the provisions of the Anti-Corruption Law and Real Law practicing thrift, combating waste and other relevant provisions of law.”

Can officials working at public hospitals participate in establishing private hospitals?

According to the provisions of Clause 2, Article 17 of the Law on Enterprises 2020, on the right to establish, contribute capital, buy shares, purchase capital contributions and manage enterprises as follows:

“Article 17. Right to establish, contribute capital, buy shares, purchase capital contributions and manage enterprises

1. Organizations and individuals have the right to establish and manage enterprises in Vietnam according to the provisions of this Law, except for the cases specified in Clause 2 of this Article.

2. The following organizations and individuals do not have the right to establish and manage businesses in Vietnam:

a) State agencies and units of the people’s armed forces use state assets to establish business enterprises to make private profits for their agencies and units;

b) Cadres, civil servants and public employees according to the provisions of the Law on Cadres and Civil Servants and the Law on Public Employees;

c) Officers, non-commissioned officers, professional soldiers, workers, defense officials in agencies and units of the Vietnam People’s Army; officers, professional non-commissioned officers, and police workers in agencies and units under the People’s Public Security of Vietnam, except those appointed as authorized representatives to manage the State’s capital contribution in enterprises or manage state-owned enterprises;

d) Leading and professional managers in state-owned enterprises as prescribed in Point a, Clause 1, Article 88 of this Law, except those appointed as authorized representatives to manage the State’s capital contribution in other enterprises;

d) Minors; people with limited civil act capacity; people who have lost their civil act capacity; people with difficulty in cognition and behavior control; organizations without legal status;

e) People who are being prosecuted for criminal liability, detained, are serving prison sentences, are serving administrative measures at compulsory drug treatment facilities, compulsory education establishments or are banned by the Court from holding certain positions, practicing professions or doing certain jobs; Other cases according to the provisions of the Bankruptcy Law and the Law on Prevention and Combat of Corruption.

If requested by the Business Registration Authority, the person registering to establish a business must submit a criminal record card to the Business Registration Authority;

g) Organizations that are commercial legal entities are banned from doing business or operating in certain fields according to the provisions of the Penal Code.

3. Organizations and individuals have the right to contribute capital, purchase shares, and purchase capital contributions to joint stock companies, limited liability companies, and partnerships according to the provisions of this Law, except for the following cases:

a) State agencies and units of the people’s armed forces use state assets to contribute capital to enterprises to gain private profits for their agencies and units;

b) Subjects who are not allowed to contribute capital to enterprises according to the provisions of the Law on Cadres and Civil Servants, the Law on Public Employees, and the Law on Prevention and Combat of Corruption.

4. Gaining private profits for your agency or unit as prescribed in Point a, Clause 2 and Point a, Clause 3 of this Article is the use of income in any form obtained from business activities, from capital contribution, share purchase, purchase of capital contribution for one of the following purposes:

a) Divided in any form to some or all of the people specified in Points b and c, Clause 2 of this Article;

b) Adding to the operating budget of agencies and units contrary to the provisions of law on state budget;

c) Establish a fund or add to the fund to serve the private interests of the agency or unit.”

At the same time, Article 14 of the Law on Public Employees 2010 regulates the rights of public employees regarding business activities and working outside of prescribed hours as follows:

“Article 14. Rights of public employees regarding business activities and working outside of prescribed hours

1. To carry out professional activities outside the working hours specified in the working contract, unless otherwise prescribed by law.

2. To sign service contracts with other agencies, organizations or units that are not prohibited by law but must complete assigned tasks and have the consent of the head of the public service unit.

3. Contribute capital but do not participate in the management and operation of limited liability companies, joint stock companies, partnerships, cooperatives, private hospitals, private schools and private scientific research organizations, unless otherwise prescribed by specialized laws..”

Thus, public employees do not have the right to participate in establishing, managing, and operating private hospitals.