On 25/4/2023, the Government has just issued Decree No. 16/2023/ND-CP on the organization, management and operation of enterprises directly serving national defence and security and enterprises combining economics with national defence and security; amending the provisions at Point g, Clause 1, Article 23 of the Government's Decree No. 47/2021/ND-CP dated April 1, 2021 detailing a number of articles of the Enterprise Law.

This Decree details the organization, management and operation of enterprises directly serving national defence and security and enterprises combining economics with national defence and security being state-owned enterprises and a limited liability company whose 100% of charter capital is held and regulated by a state-owned enterprise specified in Clause 2, Article 88 of the Law on Enterprises; amends the provisions at point g, clause 1, Article 23 of the Government's Decree No. 47/2021/ND-CP dated April 1, 2021 detailing a number of articles of the Enterprise Law on the disclosure of information of state enterprises.

Accordingly, enterprises directly serving national defence and security have the rights and obligations specified in Article 9 of the Law on Enterprises and the following provisions: Having sufficient resources and enough charter capital guaranteed by the Ministry of National Defense and the Ministry of Public Security to perform assigned national defence and security tasks. To use assigned resources for production and business activities (besides performing national defence and security tasks) when the following conditions are satisfied: the Ministry of National Defense and the Ministry of Public Security approve in writing; do additional business with the purpose of combining to support national defence and security missions or boosting the capacity and efficiency of asset use; reduce capacity and affect the performance of assigned national defence and security tasks; fulfill tax obligations as prescribed by law. To manage assigned resources to perform national defence and security tasks according to current regulations. To abide by the laws and regulations of the Ministry of National Defense and the Ministry of Public Security on international cooperation when performing activities in association with foreign organizations and individuals to perform national defence and security tasks. To abide by decisions of the Ministry of National Defense or the Ministry of Public Security on the transfer of capital or assets serving national defence and security tasks of an enterprise to perform national defence and security tasks at another enterprise in case of necessary under current law.

Enterprises combining economics with national defence and security have the rights and obligations specified in Article 9 of the Law on Enterprises and the following provisions: To manage assigned resources to perform the task of combining economics with national defence, security according to current regulations. At the same time, complying with the laws and regulations of the Ministry of National Defense and the Ministry of Public Security on international cooperation when carrying out activities in association with foreign organizations and individuals to perform the task of economic combination with national defence and security.

Enterprises that combine economics with national defence and security are entitled to incentives for land rent, land use levy and land use tax, and allocated budget and other resources by the State to ensure expenditures according to prescribed norms.

The Decree also clarifies policies for enterprises directly serving national defence and security and their employees. Specifically, enterprises directly serving national defence and security may apply the following policies:

To enjoy incentives in terms of land rent, land use levy and land use tax for the land area assigned for management and use in service of national defence and security tasks in accordance with the law on land, tax and relevant laws.

To be allocated budget and other resources by the State to ensure expenditures according to the regimes and norms prescribed by law, including: military equipment for officers, professional soldiers, defense workers and public employees, non-commissioned officers, public security workers, cipher workers; spending on maneuvers, combat training, reserve training; expenditures for defense and security work, defense service work, military-civilian relations. In case the state budget is insufficient, the unsecured expenditures shall be included in deductible expenses when determining taxable incomes in accordance with the Law on Corporate Income Tax and guiding documents; and excluded when assessing and classifying enterprises according to the Government's regulations.

To be allocated budget and other resources by the State to finance the maintenance, repair, operation of production lines and equipment, and repair of defense and security products during the period of temporarily suspend of the production of defense and security products according to plans and tasks assigned or ordered directly by the Ministry of National Defense or the Ministry of Public Security or through professional agency, affiliated focal unit.

To be allocated budget and other resources by the State to support 02 bonus and welfare funds equal to 02 months' salary in case there are not enough sources to set aside.

To be allocated budget and other resources by the State to support the funding of kindergartens and education in areas where there are no schools under the public education system; medical expenses for places where due to special conditions must maintain infirmaries; or need to maintain kindergartens and clinics in the locality according to decisions of the Ministry of National Defense or the Ministry of Public Security.

Employees in enterprises directly serving national defence and security are entitled to the following regimes and policies:

Wages of employees who are officers, professional soldiers, defense workers, defense officers, non-commissioned officers, police workers, and cipher workers shall be calculated in accordance with regulations on the regime, policies of law for officers, professional soldiers, defense workers, defense officers, non-commissioned officers, public security workers, cipher workers and based on labor productivity and annual results of production and business activities of the enterprise.

When performing national defecse and security duties, if an employee is injured or dies but fully meets the conditions and criteria, he shall be considered and certified as a person with meritorious services to the revolution in accordance with the provisions of the preferential law on people with meritorious services to the revolution; If the employee suffers an occupational accident, he shall be considered for the occupational accident regime according to the provisions of the labor law.

The State shall allocate funds to ensure salary payment and social insurance premiums for officers, professional soldiers, defense workers, defense officers, public security workers and cipher workers during the time of preparation for retirement; pay expenses for demobilization and termination according to the current regime.

This Decree takes effect from the date of signing for promulgation.