Vietnam: Principles of transfer of wholly state-owned enterprises

11:38, 08/01/2015

Recently, the Government of Vietnam issued Decree No. 128/2014/ND-CP on sale, assignment and transfer of wholly state-owned enterprises.

Principles for transferring 100% state-owned enterprises, Decree 128/2014/NĐ-CP

Principles of transfer of wholly state-owned enterprises (Illustration)

According to Clause 4, Article 5 of Decree 128/2014/NĐ-CP, the principles for transferring wholly state-owned enterprises are specified as follows:

Non-payment transfer applies in cases of transferring enterprises from the Ministry or the provincial People's Committee to economic groups, corporations, or company groups; transferring enterprises between ministries and provincial People's Committees. The transfer of enterprises from the Ministry or the provincial People's Committee to the State Capital Investment Corporation is carried out according to the principles, procedures, and processes stipulated in Decree 151/2013/NĐ-CP;
Payment transfer applies in cases of transferring enterprises between economic groups, corporations, or company groups;
With mutual agreement between the transferring party and the receiving party, in compliance with competition laws.
Transfers according to the following principles are decided by the Prime Minister: Transferring the enterprise as is, based on recognizing the increase or decrease in owner’s equity according to the transfer enterprise’s book value; Transferring the enterprise as is under the principle of non-payment, including inventory, evaluation of asset condition, finances, debts, and reaffirmation of company value.

More details can be found in Decree 128/2014/NĐ-CP, effective from March 1, 2015.

Ty Na

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