Who has the authority to decide to invest state capital in business establishment in Vietnam? What is the procedure for state investment in business establishment in Vietnam?
In which industries can state capital be invested in business establishment in Vietnam?
Pursuant to Article 10 of the 2014 Law on management and utilization of state capital invested in the enterprise’s manufacturing and business activities in Vietnam stipulating the scope of state capital investment in business establishment as follows:
Scope of state investment in business establishment
1. State investment in business establishment shall be made within the following scopes:
a) Enterprise providing basic public products and services;
b) Enterprises operating in the direct auxiliary sector for the purpose of national defense and security;
c) Enterprises operating in the natural monopoly sector;
d) Hi-tech enterprises, and those making large-scale investment in and serving as the driving force behind the fast growth of different industries, sectors as well as the entire economy.
2. The Government shall provide specific regulations on state investment in business establishment and order placement mechanism of the State, applicable to the enterprise that plays its significant roles in regulating the national macro-economy and maintaining the social security in accordance with provisions laid down in Clause 1 of this Article.
Thus, state investment in business establishment shall be made within the following scopes:
- Enterprise providing basic public products and services;
- Enterprises operating in the direct auxiliary sector for the purpose of national defense and security;
- Enterprises operating in the natural monopoly sector;
- Hi-tech enterprises, and those making large-scale investment in and serving as the driving force behind the fast growth of different industries, sectors as well as the entire economy.
Who has the authority to decide to invest state capital in business establishment in Vietnam? What is the procedure for state investment in business establishment in Vietnam?
What are the regulations on the procedure for state investment in business establishment in Vietnam?
Pursuant to Article 12 of the 2014 Law on management and utilization of state capital invested in the enterprise’s manufacturing and business activities in Vietnam (amended by Clause 3, Article 22 of the 2018 Law on Amendments to some articles concerning planning of 37 laws) stipulating the procedure for state investment in business establishment as follows:
Procedure for state investment in business establishment
1. The owner’s representative agency shall prepare the proposal for business establishment. The proposal must comprise the main information as follows:
a) Objectives and necessity for business establishment;
b) Name, organization model and operational time; main scope of business;
c) Total investment sum; charter capital; mobilized capital sources;
d) Assess socio - economic impacts made by the enterprise establishment upon relevant types of planning in accordance with regulations of the law on planning and industry distribution and development and economic region strategy;
dd) Economic and social efficiency.
2. The proposal for business establishment must be evaluated by the competent authorities.
3. In respect of business establishment stipulated in Clause 1 Article 11 hereof, the owner's representative agency shall submit their proposal to the Prime Minister for consideration and establishment decision.
4. In respect of business establishment stipulated in Clause 2 Article 11 hereof:
a) The owner’s representative agency shall submit the proposal for business establishment to the Prime Minister.
b) The Prime Minister shall consider and decide to approve the intention to establish an enterprise;
c) The owner’s representative agency shall decide to establish an enterprise.
5. The Government shall adopt specific regulations on procedures for state investment in business establishment.
Thus, the owner’s representative agency shall prepare the proposal for business establishment and this proposal must be appraised by a competent state agency.
In respect of business establishment stipulated in Clause 1 Article 11 above, the owner's representative agency shall submit their proposal to the Prime Minister for consideration and establishment decision.
In respect of business establishment stipulated in Clause 1 Article 11 above, the owner’s representative agency shall submit the proposal for business establishment to the Prime Minister.
Then, the Prime Minister shall consider and decide to approve the intention to establish an enterprise and the owner’s representative agency shall decide to establish an enterprise.
Who has the authority to decide to invest state capital in business establishment in Vietnam?
According to the provisions of Article 11 of the 2014 Law on management and utilization of state capital invested in the enterprise’s manufacturing and business activities in Vietnam on the decision-making authority over state investment in business establishment as follows:
Decision-making authority over state investment in business establishment
1. The Prime Minister shall be vested with the authority to grant a decision to make state investment in business establishment as follows:
a) Enterprises having operating capital acquired from the implementation of national important projects approved under the decision on investment policies granted by the National Assembly;
b) Parent companies of state-owned economic corporations and enterprises specializing in the investment and trading of state capital.
2. The owner’s representative agency shall have the authority to decide to invest state capital in establishment of enterprises which are not governed by regulations enshrined in Clause 1 of this Article.
3. In case state investment in business establishment can meet requirements the same as those applied to national important projects, the Prime Minister shall grant an investment decision after the National Assembly's consent to investment policies.
Thus, the Prime Minister shall be vested with the authority to grant a decision to make state investment in business establishment in the cases specified in Clause 1, Article 11 of the 2014 Law on management and utilization of state capital invested in the enterprise’s manufacturing and business activities in Vietnam.
The owner’s representative agency shall have the authority to decide to invest state capital in establishment of enterprises which are not governed by regulations enshrined in Clause 1 Article 11 of the 2014 Law on management and utilization of state capital invested in the enterprise’s manufacturing and business activities in Vietnam.
In case state investment in business establishment can meet requirements the same as those applied to national important projects, the Prime Minister shall grant an investment decision after the National Assembly's consent to investment policies.
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