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Official Gazette

Friday, December 13, 2019

Equitized public non-business units to enjoy preferential policies

Updated: 14:32’ - 30/11/2019
Joint-stock companies transformed from public non-business units would enjoy incentives like newly established businesses, according to a draft decree prepared by the Ministry of Finance.

Hanoi Trade Corporation (Hapro) operates more effectively after equitization__Photo: Internet

Specifically, these companies would be entitled to registration fee incentives, incentives for science and technology activities, and policies to encourage socialization as prescribed by law. They may also continue renting land and buildings from the State as well as performing the State’s orders for provision of public non-business services given they meet the criteria and quality standards set by competent agencies.

Kindergartens, infirmaries and other welfare facilities built with capital from the welfare fund of public non-business units would be handed over to trade union organizations of joint-stock companies for management in service of their employees. Meanwhile, houses built for cadres and workers would be transferred to local housing management agencies for management.

Regarding the sale of shares to employees of transformed public non-business units, under the draft, public employees and contractual workers of such a unit may purchase shares at the price equaling 60 percent of par value and in a maximum quantity of 100 shares for each year of working at the unit. Those who commit to further working for the joint-stock company transformed from the public non-business unit for at least three more years may additionally purchase 200 shares for each year of the commitment period. However, the total number of shares to be additionally purchased by each employee must not exceed 2,000. For highly qualified experts, these figures would be 800 and 8,000, respectively.

Noteworthily, employees may not transfer their preferential shares to others within three years after purchase.  In case an employee loses his job before the commitment period expires because the joint-stock company is restructured or relocated, changes its technology or narrows its production or business site, the amount of shares additionally purchased by the employee would be converted into ordinary shares and may be sold to the joint-stock company if the employee so wishes. If an employee unilaterally terminates his labor contract before the commitment period expires, he must re-sell to the joint-stock company all additionally purchased shares at a price close to the market price but not exceeding the purchase price at the time of equitization.

If a joint-stock company transformed from a public non-business unit could not arrange suitable jobs for public employees and contractual employees of the public non-business unit, such persons would be entitled to policies applicable to redundant laborers in accordance with law.- (VLLF)

 

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