Can public employees be the General Directors of enterprises in Vietnam?

Can public employees be the General Directors of enterprises in Vietnam?

Pursuant to Clause 3, Article 14 of the Law on Public Employees 2010 stipulates rights of public employees to do business and work outside prescribed hours are as follows:

1. To carry out professional activities after working hours stated in working contracts, unless otherwise provided for by law.

2. To sign with agencies, organizations and units other than their employing public non-business units piecework contracts which are not banned by law, provided that they accomplish their assigned tasks and obtain consent of the heads of their public non-business units.

3. To contribute capital to but be disallowed to participate in managing and administering limited liability companies, joint-stock companies, partnerships, cooperatives, and private hospitals, schools or scientific research institutions, unless otherwise provided for by law.

In addition, Clause 24, Article 4 of the Enterprise Law 2020 stipulates:

24. “executive of an enterprise means the owner of a sole proprietorship, a general partner of a partnership, chairperson or member of the Member/Partner Assembly, President of a company, President or member of the Board of Directors, Director/General Director, or holder of another managerial position prescribed in the company’s charter.

Thus, public employees are not allowed to act as the General Director (manager, executive) of an enterprise but can contribute capital to the enterprise in accordance with the above provisions in Vietnam.

Best Regards!