Vietnam: The purchaser for a wholly state-owned enterprise is responsible for keeping information confidential

The purchaser for a wholly state-owned enterprise is responsible for keeping information confidential (Illustration)

Specifically, Article 7 of Decree 128/2014/ND-CP stipulates the rights and obligations of purchasers of wholly state-owned enterprises as follows:

1. The purchaser:

• Has the right to survey the actual condition of the enterprise; review records, financial statements, asset lists, ownership certificates, land use rights, and related contracts of the enterprise;
• Is responsible for keeping confidential all information obtained from the actual survey and enterprise documents; is prohibited from disclosing or using such information to harm the enterprise or its subdivisions. If the purchaser discloses or uses information that harms the enterprise, they will be dealt with according to the regulations of the law.

2. The person who has purchased the enterprise:

• Has the right to choose the legal form of the enterprise after purchase; continues to lease the land or receives land allocation with payment for land use rights according to land law;
• Inherits the lawful rights, benefits, and obligations of the enterprise as specified in the sales contract and other signed contracts;
• Pays for the enterprise as per the signed contract;
• Is not allowed to sell or transfer the enterprise before completing payment for the enterprise and other commitments (if any) in the enterprise sale contract.

See detailed information at Decree 128/2014/ND-CP, effective from March 1, 2015.

Ty Na

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