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Official Gazette

Wednesday, October 17, 2018

Government urges more drastic actions in state business equitization

Updated: 16:54’ - 22/08/2014

At its June regular meeting, the Government demanded ministries, agencies and provincial/municipal administrations to monitor and urge more aggressively the process of equitizing state enterprises and divesting state capital from non-core business lines. 

Enterprises with approved asset value and equitization plans should seek to publicly offer their initial shares or convert themselves into joint-stock companies with shareholders being trade union organizations, employees and strategic shareholders, if any, or other voluntary shareholders. 

The MOF is tasked to expeditiously devise and submit to the Prime Minister a scheme on pilot contribution of equity capital to establish new public non-business units and units of state groups and corporations before undergoing equitization; and detail Government Decree No. 189/2013/ND-CP which revises Decree No. 59/2011/ND-CP on conversion of wholly state-owned enterprises into joint-stock companies.

The MPI will have to report on implementation of Government Decree No. 99/2012/ND-CP on exercise of powers and performance of responsibilities of state owners to state enterprises; finalize and submit to the Government a decree revising regulations on sale and assignment of state enterprises; and provide guidance on settlement of problems in the withdrawal of capital contributions made with trademark value.

The State Bank of Vietnam is assigned to coordinate with related agencies in formulating plans on handling of contributed capital portions of state enterprises in commercial banks under Government Resolution No. 15/NQ-CP on divestment of state capital, and report to the Government.

Regarding the use of proceeds from restructuring and equitization of state enterprises during 2014-15, the Government reached consensus on a guideline for use of equitization proceeds and partial remittance of state capital portions into the Enterprise Reorganization and Development Support Fund as proposed by MOF and approved by the Political Bureau.-


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