Vietnam: What is a state-owned enterprise? What are the differences between state-owned enterprises and sole proprietorship?
What is a state-owned enterprise in Vietnam?
Pursuant to the provisions of Clause 11 Article 4 of the Law on Enterprise 2020, specific regulations on state-owned enterprises are as follows:
Definitions
For the purpose of this document, the terms below are construed as follows:
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11. A “state-owned enterprise” means an enterprise more than 50% charter capital or voting shares of which is held by the State as prescribed in Article 88 of this Law.
Article 88 of the Law on Enterprise 2020 specifically regulates state-owned enterprises as follows:
State-owned enterprises
1. State-owned enterprises shall be limited liability companies or joint stock companies, including:
a) Wholly state-owned enterprises (100% of charter capital of which is held by the State)
b) Partially state-owned enterprises (over 50% of charter capital or voting shares is held by the State, except the enterprises specified in Point a Clause 1 of this Article).
2. Wholly state-owned enterprises specified in Point a Clause 1 of this Article include:
a) Single-member limited liability companies 100% of charter capital of which is held by the State that are parent companies of state-owned corporations or parent companies in groups of parent company – subsidiary companies;
b) Independent single-member limited liability companies 100% of charter capital of which is held by the State.
3. Partially state-owned specified in Point b Clause 1 of this Article include:
a) Multiple-member limited liability companies and joint stock companies over 50% of charter capital or voting shares of which is held by the State that are parent companies of state-owned corporations or parent companies in groups of parent company – subsidiary companies;
b) Independent multiple-member limited liability companies and joint stock companies over 50% of charter capital or voting shares of which is held by the State.
4. The Government shall elaborate this Article.
Thus, there are currently the following types of state-owned enterprises:
- Single-member limited liability companies 100% of charter capital of which is held by the State;
- Multiple-member limited liability companies and joint stock companies over 50% of charter capital held by the State
- Joint stock companies over 50% of charter capital of which is held by the State.
Vietnam: What is a state-owned enterprise? What are the differences between state-owned enterprises and sole proprietorship?
What are the differences between state-owned enterprises and sole proprietorship in Vietnam?
The differences between state-owned enterprises and sole proprietorship are as follows:
What are the regulations on application of regulations on state-owned enterprises in Vietnam?
According to the provisions of Article 89 of the Law on Enterprise 2020, the application of regulations on state-owned enterprises is as follows:
Application of regulations on state-owned enterprises
1. Wholly state-owned enterprises specified in Point a Clause 1 Article 88 of this Article shall be organized as single-member limited liability companies in accordance with this Chapter and relevant regulations of this Law. In case of discrepancies between regulations of this Law, the regulations of this Chapter shall prevail.
2. Partially state-owned enterprises specified in Point b Clause 1 Article 88 of this Article shall be organized as multiple-member limited liability companies in accordance with Section 1 of Chapter III or as joint stock companies in accordance with Chapter V of this Law.
Thus, the application of regulations on state-owned enterprises is regulated as above.
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