Question 173. Is an Employer obliged to establish Party’s subsidiaries at the request of a competent State authority?


Pursuant to the prevailing laws on the establishment of Party’s subsidiaries at the enterprises, the obligations of companies, including foreign-invested enterprises as below:

  • To respect and not obstruct the establishment of internal political organisations, socio-political organisations; must not obstruct participation of the Employees in such organisations;[1]
  • To respect and facilitate for the Employee to establish and participate the activities organised by the Party’s subsidiary and socio-political organisations in the enterprise[2]; and
  • To coordinate and facilitate the Party’s subsidiary and socio-political organisations in propagating, popularizing, and instructing the Employee to establish a suitable organisation for the operation and development of the enterprise[3].

As such, in principle, the Employer is only obliged to respect and facilitate the establishment of the Party’s subsidiaries only the requirements are met, but they do not have the direct responsibility in establishing the Party’s subsidiaries. Upon the competent State authority’s request, the Employer shall assist and facilitate the Employers in the establishment and participation in the Party’s subsidiaries in the enterprise.

[1] Article 6.2 of the Law on Enterprises

[2] Article 3.4 of Decree 98/2014/ND-CP of the Government

[3] Article 8 of Decree 98/2014/ND-CP of the Government