Vietnam: 05 rights and obligations of the assignee of a wholly State-owned enterprise

According to Article 25 of the Decree No. 128/2014/NĐ-CP of Vietnam’s Government, 05 rights and obligations of the assignee of a wholly State-owned enterprise are specified as follows:

1. Register business in the chosen legal form.

2. Use assigned assets, organize production and business, and distribute income according to the enterprise's charter on organization and operation.

3. Inherit the lawful rights and interests of the former enterprise as agreed in the enterprise forwarding contract; inherit the land lease, electricity and water supply contracts of the old enterprise in accordance with the law. Enterprises have the right to choose to inherit the form of land lease or change to the form of land allocation according to the provisions of the land law.

4. Receive financial support for organizing retraining to create jobs for employees from the Enterprise Reorganization Support Fund under the guidance of the Ministry of Finance.

5. Be responsible for implementing the commitments in the enterprise handover contract and the obligations to the State as prescribed by law.

In addition, this Decree also stipulates the ownership rights for enterprises after allocating wholly State-owned enterprises. The entire residual value of the enterprise's assets, after being handled according to the provisions of Article 22, belongs to the collective ownership of employees and divided into shares or contributed capital portions to be assigned to each employee participating in receiving the business. Concurrently, each employee who receives the enterprise is assigned the right to own part of the remaining value of this property in shares or capital contribution corresponding to the number of years he has worked for the state sector; is entitled to dividends and profits; has the right to inherit but may not transfer the assigned shares or capital within 03 (three) years after receiving the business.

View more details at the Decree No. 128/2014/NĐ-CP of Vietnam’s Government, effective from March 01, 2015.

Ty Na

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