Vietnam: Comparison and verification of financial investments, amount distributed and contributed capital

14:15, 25/09/2018

The Ministry of Finance of Vietnam issued Circular No. 41/2018/TT-BTC providing guidelines for financial settlement and enterprise valuation in equitization of state-owned enterprises and single-member limited liability companies 100% charter capital of which by state-owned enterprises, which replaces Circular No. 127/2014/TT-BTC.

According to Circular No. 41/2018/TT-BTC of the Ministry of Finance of Vietnam, the comparison and verification of financial investments, amount distributed and contributed capital are prescribed as follows:

- The equitized enterprise shall make a list of financial investments and profits distributed, including capital contributed under joint-venture or association agreements, money given in exchange for stock, capital contributed to limited liability companies, capital invested in single-member limited liability company owned by such enterprise and unrealized profits, that are profits received from capital contribution as specified in resolution of general shareholders meetings or by member councils of capital-receiving entities but not yet cashed in by the time of enterprise valuation.

- Calculate the quantity and value of purchased securities such as shares, bonds, etc; quantity of shares acquired by the equitized enterprise

- With regards to capital contributed under joint-venture or association agreements, the equitized enterprise shall make a list of contributor-based contributed capital and notify the contributor to continue executing or complete the signed agreements.

Circular No. 41/2018/TT-BTC of the Ministry of Finance of Vietnam takes effect from June 18, 2018.

- Thanh Lam -

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