Vietnam: 06 entities having the right to purchase wholly state-owned enterprises

06 entities having the right to purchase wholly state-owned enterprises (Illustration) 

Article 4 of Decree 128/2014/ND-CP stipulates the entities having the right to purchase wholly state-owned enterprises, including:

• The collective of workers in the enterprise;
• Individual workers in the enterprise;
• Enterprises, including those with foreign investment in Vietnam, except financial advisory organizations conducting valuation, auctioning the sale of enterprises, and single-member limited liability companies owned by the State;
• Vietnamese citizens with full civil capacity, except those prohibited from establishing and managing enterprises as stipulated in Points b, c, d, đ, e, g Clause 2 and Point b Clause 4 Article 13 of Law on Enterprises, members of the Enterprise Renovation and Development Committee, and individuals from financial advisory organizations conducting valuation, auctioning the sale of enterprises;
• Economic and financial organizations established under foreign laws conducting business overseas or in Vietnam, foreign individuals, except economic and financial organizations and individuals from economic and financial organizations conducting valuation, auctioning the sale of enterprises;
• Groups of enterprises, organizations, or individuals collaborating to jointly purchase the enterprise.

Furthermore, enterprises with foreign investment and economic and financial organizations established under foreign laws conducting business overseas or in Vietnam, and foreign individuals as per legal regulations are identified as foreign investors who can participate with other Vietnamese enterprises and citizens to purchase part of the enterprise under the following regulations:

• For enterprises in industries or sectors where Vietnam has international commitments regarding foreign investors' ability to contribute capital and purchase shares, foreign investors can purchase enterprises according to the ratio not exceeding Vietnam's international commitments;
• For enterprises in industries or sectors outside the scope of Vietnam's international commitments, foreign investors can purchase enterprises according to the legal regulations on limiting foreign investors' participation in those industries or sectors;
• For enterprises operating in multiple industries or sectors, including some with varying foreign investor participation ratios, foreign investors can participate in purchasing the enterprise but not exceed the lowest regulated ratio for any industry or sector;
• Beyond the aforementioned cases, foreign investors can purchase Vietnamese enterprises without ratio limitations.

For further details, refer to Decree 128/2014/ND-CP effective from March 1, 2015.

Ty Na

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE