Vietnam: Entities eligible to purchase shares in state-owned enterprises

Duy Thinh

08:56, 05/06/2018

Circular No. 40/2018/TT-BTC of the Ministry of Finance of Vietnam provides guidelines for initial share offering and management and use of proceeds from the equitization of state-owned enterprises and single-member limited liability companies with 100% charter capital invested by state-owned enterprises.

According to Circular No. 40/2018/TT-BTC of the Ministry of Finance of Vietnam, the entities eligible to purchase shares in state-owned enterprises include:

- Domestic or foreign investors prescribed in clause 1 and 2 in Article 6 of Decree No. 126/2017/ND-CP of Vietnam’s Government including organizations and individuals, even employees working in equitized enterprises.

- Domestic and foreign strategic investors meeting requirements as prescribed in point a, Clause 3, Article 6 of Decree No. 126/2017/ND-CP.

- Entities prescribed in Article 42 of Decree No. 126/2017/ND-CP.

- Trade unions of equitized enterprises prescribed in point b, Clause 2, Article 33 of Decree No. 126/2017/ND-CP. Trade unions authorize a competent person to carry out procedures relating to the sale of shares.

More details can be found in Circular No. 40/2018/TT-BTC of the Ministry of Finance of Vietnam, which officially takes effect from June 18, 2018.

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