According to the law on enterprises in Vietnam, what is the definition of "enterprise"? What is the definition of "state-owned enterprise"?

What is the definition of "enterprise"? What is the definition of "state-owned enterprise"?

- Enterprise means an organization that has a proper name, assets, premises, is established or registered in accordance with law for business purposes.

- A state-owned enterprise means an enterprise more than 50% charter capital or voting shares of which is held by the State as prescribed in Article 88 of this Law.

Besides, a Vietnamese enterprise means an enterprise that is registered in accordance with Vietnam’s law and has its headquarters located within Vietnam.

What are rights and obligations of enterprises in Vietnam?

a) Rights of enterprises in Vietnam

- Freely engage in any business line that is not banned by law.

- Freely run the business and choose a type of business organization; choose business lines, area of operation and type of operation; change the scale of business and business lines.

- Choose the method of mobilizing, distributing and using capital.

- Freely find markets, customers and enter into contracts.

- Export and import.

- Hire employees in accordance with employment laws.

- Apply technological advances to improve business efficiency; have intellectual property rights protected in accordance with intellectual property laws.

- Acquire, use, dispose of their assets.

- Reject unlawful requests for provision of resources from other organizations and individuals.

- File complaints and participate in proceedings as prescribed by law.

- Other rights prescribed by law.

b) Obligations of enterprises in Vietnam

- Maintain the fulfillment of conditions for conducting restricted business lines and business lines restricted to foreign investors (hereinafter referred to as “restricted business lines”) prescribed by law throughout the course of business operation.

- Apply for enterprise registration; register changes to enterprise registration information; publish information about the establishment and operation of the enterprise; submit reports and fulfill other obligations prescribed by this Law.

- Take responsibility for the accuracy of information in the enterprise registration application and reports; promptly rectify incorrect information if found.

- Organize accounting works; pay taxes and fulfill other financial obligations prescribed by law.

- Protect lawful rights and interests of employees as prescribed by law; do not discriminate against or insult employees; do not mistreat or force employees to work; do not employ minors against the law; enable employees to improve their vocational skills through training; buy social insurance, unemployment insurance, health insurance and other insurance for employees as prescribed by law.

- Other obligations prescribed by law.

Legal basis: Article 7 and 8 of the Law on Enterprises in 2020

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