Vietnam: What preferential policies is a public service provider entitled when it is converted into a joint stock company?
- What preferential policies will a public service provider when converted into a joint stock company enjoy?
- How is the sale of shares to employees at a public service provider converted into a joint stock company in Vietnam?
- When a public service provider is converted into a joint stock company, what policies will redundant employees receive?
What preferential policies will a public service provider when converted into a joint stock company enjoy?
Pursuant to Article 36 of Decree 150/2020/ND-CP stipulating that public service providers in Vietnam, when being converted into joint stock companies, receive the following preferential policies:
- Joint stock companies converted from public service providers are entitled to the same preferential policies as newly established enterprises.
- To enjoy registration fee incentives in accordance with the Law on Fees and Charges and guiding documents.
- To re-sign contracts for land lease, house and architectural object lease by state agencies in accordance with the land law and other relevant laws.
- To participate in the provision of public services when meeting the conditions under current regulations of the State on ordering and bidding for the provision of public non-business products and services using the state budget from recurrent expenditure.
- For welfare works that are kindergartens, kindergartens, infirmaries and other welfare assets invested with the Welfare Fund, they shall be transferred to the trade union at the joint-stock company for management and use for serving the collective of employees in joint-stock companies. For housing for officials and employees invested with the welfare fund of public service providers, it shall be transferred to the local housing management agency for management.
- Public service providers, when converted to joint stock companies, are entitled to incentives for scientific and technological activities and policies to encourage socialization as prescribed.
Vietnam: What preferential policies is a public service provider entitled when it is converted into a joint stock company?
How is the sale of shares to employees at a public service provider converted into a joint stock company in Vietnam?
Pursuant to Clause 1, Article 37 of Decree 150/2020/ND-CP stipulating the policy of selling shares to employees at public service providers in Vietnam converted into joint stock companies as follows:
- Objects to buy shares at preferential prices include: Officials, employees working under labor contracts in public service providers at the time of determining the value of converted public service providers.
- The subjects specified at Point a, Clause 1, Article 37 of Decree 150/2020/ND-CP are allowed to buy up to 100 shares for each year of actual working in the state sector (including the entire time worked at units/organizations in the public sector) with a selling price equal to 60% of the value of 01 share at par value (VND 10,000/share).
- The difference between the selling price to public employees and employees compared to the par value of shares as prescribed in Clause 1, Article 37 of Decree 150/2020/ND-CP shall be deducted from the value of the state capital when finalizing at the time when the public service provider is officially transformed into a joint stock company.
- The number of shares sold at a preferential price as prescribed in this Clause, the employee must hold and not transfer within 03 years from the time of payment for the purchase of preferred shares.
- The total value of shares sold at preferential prices to employees calculated at the maximum par value does not exceed the value of the state capital according to the accounting books at the time of determining the value of the public service provider.
When a public service provider is converted into a joint stock company, what policies will redundant employees receive?
Pursuant to Article 38 of Decree 150/2020/ND-CP stipulating that when a public service provider is converted into a joint stock company in Vietnam, redundant employees will receive the following policies:
- For public employees and managers working at converted public service providers: At the time of valuation determination, the unit which cannot arrange jobs at joint-stock companies according to the labor use plan shall be entitled to the policy on downsizing the payroll according to the Government's regulations.
- For employees working under labor contracts of converted public service providers: At the time of valuation, the unit cannot arrange jobs at the joint-stock company according to the labor use plan. Employees are entitled to policies for redundant employees when reorganizing a single-member limited liability company owned by the State in accordance with the Government's regulations.
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