Vietnam: Supplementing revenues earned from outward investments of a state enterprise

14:10, 21/09/2018

On March 08, 2018, the Government of Vietnam issued Decree No. 32/2018/NĐ-CP on amending and supplementing certain articles of Decree No. 91/2015/NĐ-CP on state capital investment in enterprises, use and management of capital and assets in enterprises.

According to Decree No. 32/2018/NĐ-CP of Vietnam’s Government, revenues earned from outward investments of a state enterprise which are accounted for as other revenue of that enterprise include:

- Revenues from after-tax profits, collection of remaining after-tax profits after setting up funds at subsidiaries, collection of the difference between equity capital and charter capital of subsidiaries back to state enterprises.

- Profits and dividends distributed by using proceeds from investment of capital in joint-stock companies and multiple-member limited liability companies; investment made under the business cooperation contract without establishment of independent legal entity (BCC contracts); proceeds from dissolution and bankruptcy of enterprises that have capital contributed by state enterprises and proceeds from other outward investments.

- In particular, revenues earned from transformation of single-member limited liability companies whose chartered capital is wholly owned by state enterprises into joint-stock companies shall be subject to the Government's regulations on equitization.

Decree No. 32/2018/NĐ-CP of Vietnam’s Government takes effect from May 01, 2018.

-Thao Uyen-

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