Under a revised law, public-sector professionals can now legally manage or invest in private enterprises, with conflict-of-interest safeguards.
On the afternoon of December 10, the National Assembly passed the amended Law on Public Employees, consisting of 6 chapters and 43 articles. The revised law will come into effect on July 1, 2026.
One of the most notable updates is a shift in management based on job positions. Job positions will now serve as the primary basis for recruitment, assignment, evaluation, training, promotion, and policymaking regarding public employees.
A job position is defined as work associated with the title or role of a public employee, aligned with the functions and duties of public service units.
The revised law sets out clear, stringent provisions governing the rights and obligations of public employees when participating in professional activities outside their primary institutions.
Public employees permitted to invest and manage businesses
Before the bill was passed, Minister of Home Affairs Do Thanh Binh explained that public employees are obligated to fulfill their duties at their assigned public institutions. They must comply with regulations in their professional field and avoid conflicts of interest, as defined under Vietnam’s anti-corruption laws.
The law now allows public employees to sign labor or service contracts with other agencies, organizations, or units - so long as the laws governing their respective sectors do not prohibit such activities. They must also ensure no conflict of interest, adhere to ethical standards, and respect the terms of their existing employment contracts.
If no such terms are specified in the existing contract, they must obtain written approval from the head of their public institution. For those already leading public institutions, approval must come from the directly managing authority.
Public employees may also practice their profession independently, as long as it’s permitted by the relevant sector's legislation. They are now legally allowed to invest in, manage, or operate enterprises, cooperatives, hospitals, educational institutions, and non-public research organizations - except where restricted by anti-corruption, enterprise, or sector-specific laws.
Minister of Home Affairs Do Thanh Binh presents the report to the National Assembly. Photo: National Assembly
They may also participate in other business-related activities, provided these do not violate laws governing professional conduct or directives from competent authorities.
For those working in public science and technology units or public universities, the law grants them additional rights, as stipulated in the laws on science, innovation, enterprise, and related legal frameworks.
The revised law also introduces a detailed framework for evaluating and ranking public employees. Evaluation criteria will be based on job performance, attitude toward citizens and businesses, as well as innovation, accountability, and willingness to act in the public interest.
Technological tools and digital transformation will be applied in the assessment process, which must remain transparent and open. The government will issue specific guidelines for building evaluation criteria across different public sectors.
Based on annual evaluations, public employees will be categorized as:
Outstanding performance Good performance Satisfactory performance Unsatisfactory performance
These performance rankings will determine eligibility for training, promotions, transfers, reappointments, salary adjustments, commendations, or dismissal for those failing to meet performance expectations.
Vietnamnet.vn
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