Principles of investment, management and utilization of state capital in an enterprise in Vietnam

This Law shall govern the investment of state capital in an enterprise; the management and utilization of state investments in an enterprise's manufacturing and business activities as well as the supervision of investment, management and utilization of state capital used as financing for an enterprise.

According to the Law on management and utilization of state capital invested in the enterprise’s manufacturing and business activities 2014 of Vietnam, investment, management and utilization of state capital in an enterprise must comply with the following principles:

1. Comply with laws on investment, management and utilization of state capital in an enterprise.

2. Conform to the strategy and proposal for socio-economic growth as well as the planning for sector development.

3. Make state capital investment in creation and maintenance of important stages and processes of the enterprise getting involved in several sectors or domains that other economic entities are not involved in or of which 100% charter capital is held by the State, and sustain the proportion of stocks and paid-in capital.

4. The owner's representative agency and regulatory bodies shall not directly get involved in manufacturing and business activities of an enterprise, and administrative work of the enterprise’s management.

5. Management of state investments in an enterprise must be carried out through the representative of direct ownership or of state capital share; ensure that manufacturing and business activities of that enterprise adhere to principles of market, equality, cooperation and lawful competition.

6. The owner’s representative agency, representative of direct ownership and representative of state capital share shall be responsible for managing and using state capital in an enterprise, ensure the efficiency, safety and promote the value of state investments in that enterprise; prevent and combat mismanagement, misuse and loss of capital assets of the State and that enterprise.

7. Public disclosure and transparency in investment, management and utilization of state capital invested in an enterprise must be respected.

8. It must comply with the international agreements to which the Socialist Republic of Vietnam is a signatory.

This content is specified in Article 5 of the Law on management and utilization of state capital invested in the enterprise’s manufacturing and business activities 2014 of Vietnam, effective from July 01, 2015.

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