Can university lecturers establish and manage a business in Vietnam?

The passing of the Law on Enterprises 2020 opens up many opportunities for individuals and organizations to easily establish and manage businesses. However, not all organizations or individuals have the right to establish and manage businesses.So, are university lecturers in this target group?

1. Can university lecturers establish and manage businesses in Vietnam?

Based onPoint b Clause 2 Article 17 Law on Enterprises 2020:

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

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;

…”

Besides, atArticle 2 of the Law on Public Employees 2010regulations:

“Article 2. Officials

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.”

Comparing the content from the two regulations above, in the case of lecturers working at public service units (Or known as public lecturers), they will not have the right to establish and manage businesses in Vietnam. On the contrary, for lecturers working in private units, because they are not public employees according to the provisions of the 2010 Law on Public Employees, they still have the right to establish and manage businesses.

2. Can public university lecturers contribute capital, buy shares, or purchase capital contributions to other companies?

According to regulations inClause 3, Article 14 of the Law on Public Employees 2010:

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

…   

3. To contribute capital but 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”

Conclusion: Although public university lecturers cannot establish or participate in managing businesses, they can still contribute capital, buy shares, Purchase capital contributions to joint stock companies, limited liability companies, and partnerships according to the provisions of the Law.