According to the provisions of Decree No. 150/2020/ND-CP, public service units are converted into joint stock companies when they simultaneously meet the following conditions:
1. Self-guarantee regular spending and investment or self-guarantee regular spending in the year closest to the time of conversion.
2. State capital remains after financial settlement and re-determination of the value of public service units.
3. Belonging to the list of industries and fields to convert public service units into joint stock companies decided by the Prime Minister in each period.
4. Have a plan to rearrange and handle houses and land that has been approved by a competent authority in accordance with the law on management and use of public assets.
Public service units that meet the above conditions include: public service units under ministries, ministerial-level agencies, and Government agencies; public service units belonging to units under ministries, ministerial-level agencies, and agencies under the Government; Public service units under the People's Committees of provinces and centrally run cities; Public service units belonging to specialized agencies and other administrative organizations of the Provincial People's Committee; Public service units under the People's Committees of districts, towns, and provincial cities; public service units under Hanoi National University, Ho Chi Minh City National University; public service units belonging to public service units under ministries, ministerial-level agencies, Government agencies, provincial People's Committees, Hanoi National University, Ho Chi Minh City National University; Public service units belonging to enterprises with 100% charter capital held by the state.
The Decree stipulates that there are two forms of conversion: retaining existing state capital at public service units, issuing additional shares to increase charter capital; Sell ​​a part of the existing state capital at a public service unit or combine selling a part of the state capital and issuing additional shares to increase charter capital.