New: Public employees working in converted public non-business units in Vietnam can buy shares

According to Article 37 of the Decree No. 150/2020/NĐ-CP of Vietnam’s Government, public employees and employees working under labor contracts in public non-business units at the time of valuation of converted public non-business units may purchase shares at preferential prices. To be specific:

Thus, public employees and employees can 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 state sector) at a price sold at 60% of the value of 01 share at par value (VND 10,000/share). However, the shares sold at preferential prices as prescribed in this Clause, employees must hold and not transfer within 03 years from the time of payment for buying preferred shares.

Besides, public employees and employees working under labor contracts of public non-business units at the time of determining the value of converted public non-business units, subject to converted public non-business units that need to be used and have a long-term commitment to work for a joint stock company for at least 3 years (from the date the enterprise is granted the Certificate of Business Registration for the first time) will be entitled to purchase additional shares in accordance with the following provisions:

- Buy more at the rate of 200 shares/year committing to continue working in the enterprise but not more than 2,000 shares per employee.

- Particularly, employees who are good experts with high professional qualifications can buy more at the rate of 800 shares/1 year committed to continue working in the enterprise but not more than 8,000 shares per employee. Converting public non-business units, based on the specificity of their industries and business fields, shall develop criteria to identify good and highly qualified experts, which shall be approved at the Employee Conference of the public non-business units before converting them into joint stock companies and submitting them to the agency approving the conversion plan for decision.

View more details at the Decree No. 150/2020/NĐ-CP of Vietnam’s Government, effective from February 15, 2021.

Ty Na

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