Vietnam: Policies for enterprises and buyers, assignment and transfer of wholly State-owned enterprises

Specifically, according to the Decree No. 128/2014/NĐ-CP of Vietnam’s Government, policies for enterprises and buyers, assignment and conversion of wholly State-owned enterprises are specified as follows:

Policies for businesses selling, assigning, transferring

- Enterprises assigned to the collective of employees; enterprises sold to collectives, individuals or legal entities are entitled to the policies prescribed for enterprises in the Government's Decree on converting a wholly State-owned enterprise into a joint stock company.

- Transferring enterprises are entitled to free issuance of Enterprise Registration Certificates (amended and supplemented); may continue to exercise their lawful rights and interests in land use in accordance with the law on land.

Policy for buyers pay immediately

If the buyer of the business or division of the enterprise pays a lump-sum right after the purchase, the maximum discount is 5% of the selling price excluding the value of land use rights but not exceeding the existing equity in the enterprise or division of the enterprise.

Policy for collective employees to buy businesses

In case the collective of employees in the enterprise wins the auction or is the only one who registers to buy, the sale price will be reduced by 15%, excluding the value of land use rights but not exceeding the existing equity in the enterprise or division of the enterprise.

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

Ty Na

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE