Businesses to be purchased by State
VGP - The Government has issued a decree on State investment in businesses, providing regulations on which businesses will be purchased partially or totally by the State.
October 15, 2015 2:03 PM GMT+7
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Accordingly, the State will invest in buying parts of or the whole businesses which operate in fields that greatly affect the socio-economic development. Those businesses are restructured as decided by the Prime Minister.
Businesses which serve national defence and security, including those operating in the defence industry and in strategic regions, as well as those supplying essential products and services for society, will be owned by the State.
The decree also regulates types of State-owned enterprises (SOEs), including those supplying essential public services and products to ensure social welfare; those operating in serving national defence and security directly as regulated by the Government; those operating in fields of natural monopoly; and those applying hi-tech with large investment to stimulate other sectors and the economy.
Effectively-operating SOEs can have their charter capital supplemented if their current charter capital cannot ensure their operation as approved by authorized State agencies.
The charter capital of SOEs directly serving national defence and security can also be supplemented if their capital is not enough to implement assigned tasks.
Criteria to evaluate SOEs’ performances are in accordance with the Government’s regulations on monitoring finance and rating SOEs’ operation.
SOEs which have three consecutive years with performance evaluated from B level can be considered for charter capital increase.
The decree will be effective from December 1, 2015.
By Vien Nhu
