From July 28, 2026, what changes apply to the conditions for establishing, reorganizing, and dissolving public service units?
According to Article 5 of Decree No. 299/2026/ND-CP, from July 28, 2026, the establishment, reorganization, and dissolution of public service units shall be carried out when the following specific conditions are met:
1. Conditions for establishing a public service unit
A public service unit may be established when it fully satisfies the following requirements:
- Comply with the sectoral planning (if any) or the plan for developing the network of public service units by sector or field, as approved by the competent authority.
- Satisfy the criteria and conditions for establishment prescribed by specialized laws. For public service units providing basic and essential public services across multiple sectors and fields, they must be consistent with the socio-economic development conditions in the commune-level area.
- Clearly define the objectives, functions, duties, and fields of operation of the unit.
- Ensure a minimum of 15 assigned employees, except for public service units providing basic and essential public services established in accordance with specialized laws.
Notes on the number of employees:
- For public service units that fully self-finance recurrent expenditures or fully self-finance recurrent expenditures and investment expenditures, the number of employees shall be determined according to the establishment plan approved by the competent authority.
- For public service units located overseas, the number of employees shall be determined in the approved establishment plan.
For public service units located overseas, in addition to the above conditions, they must also be consistent with the foreign policy of the Party and the State and the international treaties between the Government of Vietnam and the government of the host country concerning the establishment and operation of the unit.
2. When must a public service unit be reorganized?
Reorganization shall be carried out when the unit falls under one of the following circumstances:
- There is a change in its name, position, functions, duties, or powers to conform to the sectoral planning or the plan for developing the network of public service units; at the same time, the reorganization must improve operational efficiency and satisfy the minimum requirement for the number of employees.
- The unit no longer fully satisfies the conditions for establishment regarding specialized criteria or the minimum number of employees.
- The unit fails to ensure the required level of financial autonomy under its financial autonomy plan approved by the competent authority. This provision does not apply where changes in functions or duties, socio-economic fluctuations, or force majeure events result in changes to revenue sources, expenditure requirements, and the level of financial autonomy.
For public service units located overseas, reorganization must also comply with the foreign policy and international treaties between Vietnam and the host country.
3. In what cases may a public service unit be dissolved?
A public service unit may be dissolved if it falls under one of the following circumstances:
- It no longer has the functions or duties of providing public services to society or supporting the performance of state management tasks.
- It fails to satisfy the conditions for establishment regarding compliance with sectoral planning/plans for network development, criteria prescribed by specialized laws, or the minimum number of employees.
- It fails to fulfill its duties for three consecutive years, based on the assessment results of the competent authority.
- The dissolution is carried out in accordance with the sectoral planning or the plan for developing the network of public service units approved by the competent authority.
For public service units located overseas, in addition to the above cases, the dissolution must also be consistent with the foreign policy of the Party and the State and the international treaties between the Government of Vietnam and the government of the host country concerning the dissolution and operation of the unit.
Principles for the Establishment, Reorganization, Dissolution, and Transfer of Public Service Units under Decree No. 299/2026/ND-CP
According to Article 4 of Decree No. 299/2026/ND-CP, the establishment, reorganization, dissolution, and transfer of public service units shall be carried out in accordance with the following principles:
1. Principles for Establishment, Reorganization, and Dissolution
The establishment, reorganization, or dissolution of a public service unit must ensure compliance with the conditions, procedures, processes, and authority prescribed by Decree No. 299/2026/ND-CP. Where specialized laws provide specific regulations, such regulations shall apply.
A public service unit may provide multiple public services within the same sector or field, or provide public services across multiple different sectors or fields.
2. Financial Autonomy Requirements for Newly Established Units
A newly established public service unit must self-finance its recurrent expenditures or achieve a higher level of financial autonomy, except where it is established to provide basic and essential public services.
For a public service unit that fully self-finances recurrent expenditures and investment expenditures, when establishing an affiliated public service unit, including a unit providing basic and essential public services, the newly established unit must also fully self-finance its recurrent expenditures and investment expenditures.
3. Principles for Reorganizing a Unit
The reorganization of a public service unit whose recurrent expenditures are fully covered by the state budget or partially self-financed must not result in an increase in the number of employees whose salaries are paid from the state budget, as approved by the competent authority.
In the case of consolidation or merger of public service units with different levels of financial autonomy, the level of financial autonomy of the unit after consolidation or merger shall be determined by the authority competent to establish and reorganize the unit.
4. Principle for Transfer
The transfer of a public service unit shall be carried out according to the principle of transferring the entire public service unit in its existing condition.
Which Agencies and Organizations Are Authorized to Propose the Establishment of Public Service Delivery Units?
According to Clause 4, Article 10 of Decree No. 299/2026/ND-CP, the agencies and organizations authorized to propose the establishment of public service delivery units are determined according to each administrative level and type of unit as follows:
For Units under Ministries
- The Ministry shall propose the establishment of units specified in Point a, Clause 1, Article 2, where the establishment falls under the authority of the Government, the Prime Minister, or the Minister managing the relevant sector or field in accordance with specialized laws.
- The Department of Personnel and Organization under the Ministry, or an agency assigned by the Minister or the Head of a Ministry-level agency, shall propose the establishment of units specified in Point a, Clause 1, Article 2, where the establishment falls under the authority of the Minister or Head of a Ministry-level agency.
- Departments under Ministries shall propose the establishment of units specified in Points b and c, Clause 1, Article 2.
- Ministerial Offices shall propose the establishment of units specified in Point d, Clause 1, Article 2.
For Units under Provincial-level People’s Committees
- The provincial-level People’s Committee (PPC) shall propose the establishment of units specified in Point a, Clause 2, Article 2, where the establishment falls under the authority of the Government, the Prime Minister, or the Minister managing the relevant sector or field in accordance with specialized laws.
- The specialized agency responsible for the relevant sector or field under the provincial-level PPC shall propose the establishment of public service delivery units operating in the corresponding sector or field, as specified in Point a, Clause 2, Article 2, where the establishment falls under the authority of the provincial-level PPC.
- For multi-sector and multi-field public service delivery units under the provincial-level PPC, the specialized agency advising on state management of home affairs under the provincial-level PPC, or an agency assigned by the provincial-level PPC, shall be responsible for proposing their establishment.
- Specialized agencies under the provincial-level PPC shall propose the establishment of units specified in Points b and c, Clause 2, Article 2.
- Other administrative organizations under the provincial-level PPC shall propose the establishment of units specified in Point d, Clause 2, Article 2.
For Units under Commune-level People’s Committees
The specialized agency responsible for the relevant sector or field under the commune-level PPC shall propose the establishment of public service delivery units operating in the corresponding sector or field, as specified in Clause 3, Article 2.
For multi-sector and multi-field public service delivery units under the commune-level PPC, the specialized agency advising on state management of home affairs under the commune-level PPC, or an agency assigned by the commune-level PPC, shall be responsible for proposing their establishment.
📌 In Summary
Decree No. 299/2026/ND-CP clearly sets out the principles of financial autonomy, controls the number of persons receiving salaries from the state budget when reorganizing units, requires the transfer of units in their entirety, and specifically identifies the agencies responsible for proposing the establishment of public service delivery units at each management level, from ministries to provincial- and commune-level authorities.
