Which entities shall have authority to decide establishment of wholly state-owned enterprises in Vietnam?

Which entities shall have authority to decide establishment of wholly state-owned enterprises in Vietnam?

Pursuant to Article 7 of the Decree 23/2022/NĐ-CP stipulating authority to decide establishment of wholly state-owned enterprises in Vietnam as follows:

1. The Prime Minister shall decide the establishment of the enterprises specified in Clause 4 Article 3 of this Decree.

2. Ministers, heads of ministerial agencies, heads of Governmental agencies, and Chairpersons of Provincial People’s Committees shall decide the establishment of wholly state-owned enterprises other than those specified in Clause 1 of this Article.

What are regulations on appraisal of application for wholly state-owned enterprise establishment in Vietnam?

Pursuant to Article 8 of the Decree 23/2022/NĐ-CP stipulating appraisal of application for wholly state-owned enterprise establishment in Vietnam as follows:

Appraisal of an application for enterprise establishment means examination and assessment of the conformity of the enterprise establishment with regulations, socio-economic development strategies and plans, and national sector planning. Such appraisal will be used as the basis for competent persons to consider making decision and ensure the efficiency of enterprise establishment.

The head of the owner’s representative agency is the applicant for enterprise establishment and assumes responsibility for the accuracy of the documents included in the submitted application for enterprise establishment.

What are procedures for establishment of enterprises established under the Prime Minister’s decision in Vietnam?

Pursuant to Article 9 of the Decree 23/2022/NĐ-CP stipulating procedures for establishment of enterprises established under the Prime Minister’s decision in Vietnam as follows:

1. The owner’s representative agency shall prepare 07 sets of application for enterprise establishment which includes original documents as prescribed in Clause 1 Article 6 of this Decree, and send them to the Ministry of Planning and Investment for appraisal.

2. Upon receipt of adequate application, the Ministry of Planning and Investment shall play the leading role in collecting opinions from the Ministry of Finance, the Ministry of Home Affairs, the Ministry of Justice, the Ministry of Labor, War Invalids and Social Affairs, the supervisory ministry, the People's Committee of province or city where the enterprise will be headquartered, and relevant authorities and organizations (where necessary).

Within 15 working days from the receipt of the application, relevant authorities shall provide their written opinions about issues under their management to the Ministry of Planning and Investment for consolidating and issuing an appraisal report.

3. Within 10 working days from the receipt of opinions from relevant authorities, the Ministry of Planning and Investment shall submit the appraisal report to the Prime Minister and also send it to the owner’s representative agency for knowing or providing explanations.

If different opinions are given about the same content of the application, the Ministry of Planning and Investment shall hold a meeting with relevant authorities before submitting the appraisal report o the Prime Minister. The time limit for submitting the appraisal report may be extended for a period not exceeding 10 working days.

4. The owner’s representative agency shall explain about appraisal conclusions drawn by the Ministry of Planning and Investment, complete and submit the application to the Prime Minister for deciding the enterprise establishment.

What are regulations on charter capital of wholly state-owned enterprises in Vietnam?

Pursuant to Article 5 of the Decree 23/2022/NĐ-CP stipulating charter capital of wholly state-owned enterprises in Vietnam 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.'

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