What are general principles of the Vietnam Debt and Asset Trading Corporation?

What are general principles of the Vietnam Debt and Asset Trading Corporation? - image from internet

Pursuant to Article 3 of the Regulation issued together with the Circular 62/2021/TT-BTC stipulating general principles of the Vietnam Debt and Asset Trading Corporation as follows:

- The Company is entitled to establish the ownership and right to manage and use debts and assets it purchased and received; manage, use and record debts and assets in accordance with regulations laid down in this document and regulations of relevant laws in force.

- Each debt purchased by the Company (under either agreement or direction) shall be considered as a specific type of goods, and shall be recorded and monitored by the Company.

- Debts and assets received from wholly state-owned enterprises and public service providers undergoing rearrangement or ownership conversion or received under the direction of competent authorities shall be managed and monitored out of the Company’s statement of financial position and settled in accordance with regulations of law and this document.

- Conversion of a debt into capital contribution associated with the restructuring of a wholly state-owned enterprise subject to rearrangement or ownership conversion shall be carried out according to the plan agreed upon (in writing) with the authority that has the power to decide the enterprise restructuring plan in accordance with regulations of law on arrangement and conversion of ownership of enterprises.

Conversion of a debt into capital contribution associated with the restructuring of other enterprises shall be carried out according to specific agreements made with the enterprise’s owner.

- Use of debts and assets as capital contributed to enterprises must ensure efficiency on the basis of the plans for purchase and handling of debts and assets approved by competent authorities as prescribed. Before assets (excluding debts) are contributed to an enterprise, they must be revalued by a qualified valuation organization in accordance with regulations of law.

- When receiving, purchasing, selling and settling debts and assets under direction of competent authorities, the Company shall develop and implement plans appropriate to the direction of competent authorities and the Company’s Charter.

- DATC shall not consolidate financial statements of enterprises of which it owns controlling shares through debt restructuring in the form of conversion of debts into capital contributions.

DATC shall carry out divestment within 05 years from the day on which it official becomes a shareholder of the enterprise of which it owns controlling shares through restructuring. If DATC fails to complete the divestment within 05 years, it shall provide reasons and propose remedial measures to the Ministry of Finance for its written opinions.

- DATC shall pay taxes and other amounts payable to state budget in accordance with regulations of law.

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