The Ministry of Planning and Investment (MPI) has just finalized a draft decree on sale, assignment and transfer of wholly state-owned enterprises to replace Government Decree No. 109/2008/ND-CP, devoting a separate chapter to deal with transfer of enterprises.
As explained by the MPI, although transfer of wholly state-owned enterprises has not yet governed in any legal document, many state enterprises have actually been transferred from managing ministries or localities to the State Capital Investment Corporation (SCIC) and vice versa, while some others have been transferred between state economic groups or corporations. For example, EVN Telecom was transferred from the Electricity of Vietnam (EVN) to Viettel in 2012, while some member enterprises of Vinashin were transferred to Vinalines and PetroVietnam.
In order to complete the legal foundation for transfer of enterprises, the draft specifies eight steps of transferring a state enterprise, ranging from notification of the transfer to publicization of the transfer contract and registration of changes in enterprise registration contents.
The draft stipulates that a to-be-transferred enterprise should determine the quantity and assess the actual state of its assets, long-term and short-term investments, and assets hired or borrowed from, deposited, consigned or appropriated by, or leased or lent to, other entities. It would also be required to compare and classify its debts and identify its creditors and payables as well as debtors and receivables.
As for employees of the to-be-transferred enterprise, under the draft, those who continue working would be offered new labor contracts and entitled to benefits according to current regulations. Meanwhile, employees who wish to cease their labor contracts would enjoy allowances according to the labor law or policies applicable to redundant laborers upon reorganization of state-owned single-member limited liability companies.
The draft decree is now available at the MPI’s website www.mpi.gov.vn .-