Decree No. 52/2008/ND-CP on management of security service business operations

DECREE
ON THE MANAGEMENT OF SECURITY SERVICES BUSINESS

THE GOVERNMENT

Pursuant to the Enterprise Law dated November 29, 2005;

Pursuant to the Law on Organization of the Government dated December 25, 2001;

In order to unify state management over security services business activities, to meet the requirements of economic and social development, and to ensure national security, public order, and social safety;

Considering the proposal of the Minister of Public Security.

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Decree stipulates the management of security services business in the following areas:

a) Human security services;

b) Property and goods security services; house, production facility, business premises, agency, and organization security services;

c) Security services for sports, entertainment, leisure, and festival activities.

2. The protection of objects and targets listed in the State's directory shall be carried out by the People's Armed Police Force and the People's Army, and the protection of agencies and enterprises according to Decree No. 73/2001/NĐ-CP dated October 5, 2001 on the operation and organization of security forces for agencies and enterprises does not fall within the scope of this Decree's regulation.

Article 2. Applicability

1. All businesses engaged in security services under all forms of ownership.

2. Organizations and individuals related to the establishment, management, and operation of security services businesses.

Article 3. Principles of organization and operation of security services businesses

1. The establishment and registration of security services businesses must comply with the provisions of this Decree and other relevant laws. The name of a security services business must comply with the provisions of the Enterprise Law and must include the phrase "security services."

2. Only businesses that have been established and registered in accordance with the law and hold a certificate confirming their compliance with conditions regarding security and public order for operating security services businesses as stipulated in this Decree may conduct security services business operations.

3. A security services business may not engage in any other industries, trades, or services outside those specified for security services under this Decree.

4. All security services activities must be conducted pursuant to a written contract, which must clearly specify the service fee for security services.

5. Domestic security services businesses may only cooperate with foreign security services businesses when high-level technical and technological capabilities are required and Vietnam cannot yet meet such requirements, and only through joint ventures involving capital contribution and investment in technical and operational equipment for security services, where the foreign business's share of capital must be less than 50% of the statutory capital and the total value of assets of the joint venture. Foreign nationals may not be employed as security personnel.

Article 4. Organizations and individuals who are prohibited from establishing and managing security services businesses and directly implementing security services activities

1. Organizations and individuals prohibited from establishing and managing businesses under the Enterprise Law and other relevant legal documents.

2. Individuals subject to administrative penalties under the Administrative Violations Handling Ordinance; serving non-custodial sentences, residence bans, probation, suspended prison sentences, or court prohibitions against engaging in security services business operations.

3. Individuals with criminal records for intentional offenses or who have been subject to administrative penalties but have not completed the period necessary to be considered free from administrative violations; drug addicts.

Article 5. Responsibilities of security service enterprises

1. Strictly comply with legal regulations and bear legal responsibility for all activities of security service enterprises.

2. Must maintain adequate conditions for security and public order throughout the operation of the enterprise.

3. Issue identification plates and Security Guard Certificates to individuals who meet the standards and have been selected and trained as security guards of the enterprise; recover Security Guard Certificates, uniforms, and identification plates when security guards terminate their labor contracts or are dismissed.

4. Fulfill the contents agreed upon in the security service contract.

5. Compensate for losses caused by breach of contract or due to the fault of the enterprise or security service employees.

6. Purchase social insurance and fully implement other policies and regulations stipulated by law for workers in the enterprise.

7. Accurately implement accounting, auditing, statistical systems, and tax payments according to legal provisions; regularly report on the situation of security and public order during security service operations to competent police authorities.

8. Must refuse to execute illegal requests while providing security services and report to competent authorities for handling according to legal provisions.

9. Comply with mobilization by competent police authorities when necessary to perform tasks related to security, public order, and social safety.

10. Strictly comply with guidance, inspection, supervision, and violation handling by state authorities with jurisdiction.

Article 6. Responsibilities of security guards

1. Adhere strictly to legal regulations during the provision of security services.

2. When performing security service activities, must wear uniforms and identification plates as prescribed and must possess a Security Guard Certificate issued by the enterprise's General Director.

3. Only carry out tasks within the lawful scope of security service operations and have the obligation to refuse to perform illegal activities while providing security services.

4. During the execution of security service activities, if discovering incidents related to security and public order such as fires, explosions, accidents causing injury or death, disruption of public order, or other acts indicating criminal behavior, security guards on duty at the location shall be responsible for rescuing victims, securing the scene, and taking necessary measures to minimize damage, while immediately reporting to the nearest police authority for timely handling.

5. Strictly comply with inspections and violation handling by state authorities with jurisdiction.

Article 7. Provision of Support Tools for Security Service Enterprises

1. Security service enterprises are equipped with support tools to perform tasks as prescribed.

2. The Ministry of Public Security provides specific guidelines regarding the quantity and types of support tools; procedures, authority for equipping, managing, and using support tools for security service enterprises.

Article 8. Prohibited Acts

1. Organizing and operating security service businesses contrary to this Decree and other relevant legal provisions.

2. Allowing others to use the name of organizations or individuals to establish security service enterprises or establishing security service enterprises for others to operate.

3. For security service enterprises and their employees:

a) Conducting armed activities, private investigation, and detective activities in any form;

b) Carrying out or through others carrying out acts that harm the lives, health, reputation, dignity, personal freedom, and other legitimate rights and interests of organizations and individuals;

c) Using security service employees who have not undergone training or obtained a professional certificate;

d) Using force or threatening to use force with the purpose of intimidating, obstructing, or creating difficulties for the normal operations of organizations and individuals or infringing upon their legitimate rights and interests;

đ) Performing acts exceeding the limits permitted by law or exceeding the legally agreed content in the security service contract;

e) Illegally equipping and using weapons and support tools;

g) Wearing uniforms and insignias with forms and colors similar to those of the People's Army and People's Police forces; uniforms and insignias inconsistent with civilized living habits and national cultural traditions;

h) Operating security service businesses without a Certificate of Compliance with Security and Public Order Conditions issued by competent police authorities or having such a certificate but it has been revoked by competent authorities.

4. For organizations and individuals hiring security services:

a) Hiring security services with the aim of intimidating, obstructing, or creating difficulties for the normal, lawful operations of organizations and individuals;

b) Requesting security service enterprises to use force, threaten to use force, or carry out acts violating the law, infringing upon the legitimate rights and interests of organizations and individuals.

Chapter II

RULES ON THE ESTABLISHMENT, REGISTRATION AND OPERATION OF SECURITY SERVICES

Article 9. Conditions for establishment and registration of security service business

1. For domestic organizations and individuals:

The statutory capital requirement for the security service business sector is two billion Vietnamese dong (VND 2,000,000,000).

A security service business enterprise must maintain its registered charter capital at no less than the aforementioned statutory capital throughout its operation.

2. Documents proving the capital conditions specified in Clause 1 above include:

a) Minutes on capital contribution from founding shareholders for joint-stock companies or from founding members for limited liability companies with two or more members; decision on capital transfer from the owner for a single-member limited liability company where the owner is an organization; investment capital registration form of the owner for a private enterprise and for a single-member limited liability company where the owner is an individual;

b) For capital contributed in cash, there must be confirmation from a commercial bank permitted to operate in Vietnam regarding the amount of deposit made by the founding members;

c) For capital contributed in assets, there must be a valuation certificate from an organization authorized to appraise in Vietnam regarding the valuation result of the assets being contributed as capital. The certificate must remain valid until the date of submission of the application to the competent business registration authority.

3. For foreign enterprises joint-ventured with domestic enterprises:

The foreign enterprise must specialize in security service business, have a capital and total asset value of the enterprise of five hundred thousand US dollars (USD 500,000) or more; have been continuously operating in business for at least five years; hold a certification from the competent authority of the home country certifying that the enterprise and the representative for the portion of capital contribution in the joint venture with a Vietnamese enterprise have not committed any violations of the laws of the home country or related countries.

Article 10. Location of Head Office, Branches, and Representative Offices of Security Service Business Enterprises

1. The location of the head office, branches, and representative offices of security service business enterprises must be stable for at least one year; if it is a house owned by the person registering the business, then the business registration documents must include valid documentation, and if it is rented, then there must be a lease agreement with a term of at least one year.

2. In the case of relocating the location of the head office, branch, or representative office of a security service business enterprise, the head of the branch or representative office must notify in writing the provincial police authority of both the departure and arrival locations at least fifteen days before the relocation takes place.

Article 11. Conditions and Standards for the Heads of Security Service Business Enterprises and Procedures for Issuing Certificates of Compliance with Security and Public Order Conditions

1. The heads of enterprises, branches, representative offices, and members of the Board of Members, Board of Directors; General Director, Deputy General Director, Director, Deputy Director, and founders participating in establishing a security service business enterprise must meet the following conditions:

a) Have full civil capacity, good morals, clear background, and not fall under any of the cases stipulated in Article 4 of this Decree;

b) Have a college or university degree in economics or law.

2. Those who have worked for other security service business enterprises whose business registration certificates have been revoked must also satisfy the additional condition: they must not have held management positions or key roles in such enterprises within the three years immediately preceding the application.

3. Application documents for issuing a Certificate of Compliance with Security and Public Order Conditions for a security service business enterprise:

a) Business registration certificate and logo of the enterprise;

b) Background declaration form (with attached photograph and confirmation from the People's Committee of the commune, ward, town where the applicant resides), certified copies of university or college graduation certificates (certified by the competent authority), certified copies of retirement, discharge, or resignation decisions (if applicable), criminal record forms of the enterprise leaders and managers mentioned in Clause 1 of this Article.

4. The competent police authority according to the regulations of the Ministry of Public Security shall be responsible for examining and issuing a Certificate of Compliance with Security and Public Order Conditions for a security service business enterprise within seven working days from the date of receipt of complete and valid application documents.

Article 12. Changing leadership and management personnel and changing the registered capital of security service business enterprises

When changing management personnel and key positions of security service business enterprises, or when changing the level of registered capital, such enterprises must comply with current laws on business registration and must meet the conditions regarding security and public order, as well as capital requirements stipulated in this Decree, and must notify in writing the competent business registration authority and the competent public security agency within ten days from the date of such changes.

Article 13. Conditions and standards for security service employees

1. To have a lawful labor contract with a security service business enterprise.

2. To have full civil capacity, good health (a health certificate issued by a medical center or hospital at district level or higher), good morals, a clear background (confirmed by the police station of the locality where they reside), a minimum educational level of secondary school or equivalent, and not to fall under any of the cases specified in Clause 2 and Clause 3 of Article 4 of this Decree.

3. To hold a security service vocational certificate issued by the competent public security agency according to the regulations of the Ministry of Public Security.

Article 14. Notification of the commencement of operation of security service business enterprises

1. At least ten days before commencing security service business operations, the head of the enterprise must notify in writing the provincial public security agency of the location of the headquarters, the operating area, and the time of commencement of operations, and simultaneously send copies of the Business Registration Certificate and a list of members of the leadership board, managers, and key position holders of the security service business enterprise.

2. In cases of relocating the headquarters, branch offices, representative offices, or where a security service business enterprise registered in one province opens branch offices, representative offices, or regularly conducts security service business operations in another province, at least ten days before commencing operations, the head of the enterprise must notify in writing and send along a list and summary of the backgrounds of those who will be working in that province to the public security agency of the province where the operations will take place.

Chapter III

RESPONSIBILITIES OF MINISTRIES, AGENCIES EQUIVALENT TO MINISTRIES, AND PROVINCE AND CITY PEOPLE'S COMMITTEES UNDER THE CENTRAL GOVERNMENT IN MANAGING SECURITY SERVICE BUSINESS OPERATIONS

Article 15. Responsibilities of the Ministry of Public Security

They are responsible before the Government for state management over security and public order in security service business operations and have the following tasks and powers:

1. Directing public security agencies at all levels to inspect and guide the implementation of this Decree and other relevant laws concerning security and public order in security service business operations; specifying uniform models for security service employee uniforms and insignia; setting programs, contents, times, and responsible agencies for training and issuing vocational certificates to security service employees; organizing inspections and handling violations related to security and public order in security service business operations within their jurisdiction.

2. Issuing or proposing to the Government to issue or amend legal documents related to ensuring security and public order in security service business operations.

Article 16. Responsibilities of Ministries and Sectors

Ministries, agencies equivalent to ministries, and government agencies, within the scope of their functions, tasks, and powers, are responsible for coordinating with the Ministry of Public Security to manage, direct, and guide the organization and activities of security service business enterprises in accordance with the law.

Article 17. Responsibilities of the People's Committee of provinces and centrally governed cities

Implement state management functions over the business activities of security service provision according to their authority and under the guidance of the Ministry of Public Security as stipulated in this Decree and other relevant laws.

Chapter IV

PETITIONING, REPORTING, REWARDING AND HANDLING VIOLATIONS

Article 18. Petitioning and reporting

1. Individuals and organizations related to the business activities of security service provision or their legitimate representatives have the right to petition against decisions made by competent state agencies in managing such business activities.

2. Organizations, individuals have the right to report violations of the law in the business activities of security service provision and in managing such business activities.

3. Petitioning and reporting, as well as handling petitions and reports, shall be carried out in accordance with the provisions of the law on petitioning and reporting.

Article 19. Rewards

Individuals and organizations engaged in the business of security service provision who achieve notable results in business operations and make positive contributions to ensuring national security and public order shall be considered for rewards in accordance with the law.

Article 20. Handling Violations

Any violation of the provisions of this Decree and other relevant laws concerning the organization and operation of security service business shall be subject to administrative penalties or criminal prosecution depending on the nature and severity of the violation; if damage to property occurs, compensation must be provided in accordance with the law.

In cases where enterprises or security service employees violate the provisions of this Decree or seriously violate other relevant laws, in addition to being handled according to the law, they may also be temporarily suspended from business operations, have their certificates revoked for a period of three to six months or indefinitely, including Certificates confirming compliance with conditions for national security and public order, Business Registration Certificates, Employee Service Security Certificates, and Security Professional Certificates.

An enterprise whose Certificate confirming compliance with conditions for national security and public order has been revoked must cease operations and can only resume operations after fully meeting the conditions for national security and public order and obtaining a new Certificate confirming compliance with conditions for national security and public order.

Chapter V

IMPLEMENTING PROVISIONS

Article 21. Effective Date

This Decree takes effect fifteen days after its publication in the Official Gazette and replaces Decree No. 14/2001/NĐ-CP dated April 25, 2001, on the management of security service business operations.

Article 22. Application of the Law to Enterprises Established and Registered Before the Effective Date of This Decree

1. For enterprises that have been and are currently conducting security service business operations in accordance with Decree No. 14/2001/NĐ-CP dated November 25, 2001, on the management of security service business operations but do not meet the business conditions stipulated in this Decree, within twelve months from the effective date of this Decree, they must comply with the business conditions and submit proof of compliance to the competent public security agency and the business registration authority.

2. For enterprises engaged in multiple industries and businesses, including security service business, within twelve months from the effective date of this Decree, they must comply with the provisions of this Decree.

3. If an enterprise engaged in security service business does not comply with the provisions set forth in Clause 1 and Clause 2 of this Article, it will be suspended from operations and its Certificate confirming compliance with conditions for national security and public order and Business Registration Certificate will be revoked.

Article 23. Guidance on Implementation and Responsibility for Implementation

1. The Minister of Public Security shall be responsible for providing detailed guidance on the implementation of this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the central government shall be responsible for enforcing this Decree./.