During 2021-25, state-invested enterprises undergoing ownership transformation, reorganization or state capital withdrawal would be classified into three categories based on operating sectors; scope and characteristics of operation; and areas of operation.
This is proposed by the Ministry of Planning and Investment (MPI) in a draft decision revising Prime Minister Decision 58/2016/QD-TTg recently released for public comment.
The first category comprises enterprises in which the State needs to hold 100 percent of charter capital, including those operating in 12 sectors or groups of sectors related to security and national defense (survey and mapping related to security or national defense), natural monopolies (national electricity transmission, railway management, money printing, lottery); social order and security maintenance (hydropower plants, air traffic services, aeronautical information service, search and rescue), and public utility services (public postal and public postal network maintenance and management; management and operation of hydraulic structures).
The second category is composed of enterprises subject to reorganization or equitization in which the State would hold 65 percent or more of charter capital or voting shares. They are businesses operating in eight groups of sectors involving important infrastructure facilities (airports and seaports of special importance); national resources (large-scale mineral mining and petroleum); and sectors to ensure major balances of the economy (finance, banking; food wholesale).
The third category includes to-be-reorganized or -equitized enterprises with the State holding more than 50 percent but less than 65 percent of charter capital or voting shares. These enterprises operate in seven sectors and groups of sectors which are important to national socio-economic development such as production of basic chemicals, telecommunications services with network infrastructure, cigarette and petrol and oil.
The draft decision would be applied only to parent companies of corporations organized after the parent company-subsidiary model and independent single-member limited liability companies wholly owned by the State. The reorganization of subsidiaries would be decided by Members’ Councils and representatives of state capital portions at parent companies.
Worthy of note, the draft adds provisions requiring enterprises operating in certain sectors in certain geographical areas of national defense and security importance to seek the Prime Minister’s approval on a case-by-case basis when conducting ownership transformation, e.g., enterprises dealing in rubber and coffee planting and processing, kaolin exploitation and cement production in border areas or the Central Highlands.- (VLLF)