Is it correct that 100 billion VND is the minimum charter capital of wholly state-owned enterprises in Vietnam?

Is it correct that 100 billion VND is the minimum charter capital of wholly state-owned enterprises in Vietnam?

Pursuant to Clause 1 Article 5 of the Decree 23/2022/NĐ-CP (takes effect from 01/06/2022) stipulating as follows:

1. When being established, the enterprise must have a charter capital of not less than VND 100 billion.

2. If an enterprise engages in a business line requiring the legal capital, in addition to the requirement set out in Clause 1 of this Article, the enterprise’s charter capital must not be lower than the legal capital required for that business line.

3. With regard to enterprises that provide essential public products and/or services, or social security services or engage in some business lines, sectors or areas, and require state investment to establish enterprises, the enterprise’s charter capital may be lower than the amount specified in Clause 1 of this Article but shall not be lower than the prescribed legal capital for business lines that require legal capital.

As regulations above, 100 billion VND is the minimum charter capital to establish wholly state-owned enterprises in Vietnam.

What contents are included in the scheme for wholly state-owned enterprise establishment in Vietnam?

Pursuant to Clause 3 Article 6 of the Decree 23/2022/NĐ-CP (takes effect from 01/06/2022) stipulating as follows:

The scheme for enterprise establishment shall, inter alia, include the following contents:

a) Legal grounds, objectives, and necessity of enterprise establishment;

b) Name, organizational model, and operating duration of the enterprise;

c) Headquarters address, location of business facility and used land area; branches and representative offices (if any);

d) Tasks assigned by the State; business lines; list of products and services to be provided by the enterprise;

dd) Assessment of the conformity of the enterprise establishment with socio-economic development strategies and plans, and national sector planning;

e) Market situations, market demands and prospects for each product or service rendered by the enterprise; technologies applied to production and business; production, business and investment plan for a period of 05 years after establishment;

g) Charter capital; estimated total investment (in case of establishment of a wholly state-owned enterprise associated with implementation of an investment project); funding sources and methods of raising funds other than the State initial investment; methods for repaying raised funds; demands and methods for generating working capital;

h) Expected economic - social efficiency;

i) Estimated supply of labour, materials, fuels, technologies and other conditions necessary for the enterprise’s operations after established.

Best regards!