Vietnam: New points in the procedures for converting from state-owned enterprises into joint-stock companies from January 01, 2018

Duy Thinh

15:19, 21/11/2017

Recently, the Government of Vietnam issued Decree No. 126/2017/ND-CP on conversion from state-owned enterprises and single-member limited liability companies with 100% of charter capital invested by state-owned enterprises into joint-stock companies.

According to Decree No. 126/2017/ND-CP of Vietnam’s Government, there are certain new points in the procedures for converting from state-owned enterprises into joint-stock companies, specifically as follows:

- In the stage of formulation of the equitization plan, there are 02 supplements as follows:

+ The steering committee shall direct the assistance team to cooperate with the enterprise in preparing relevant documents to request the representative authority for approval for estimate of equitization expenses or select equitization consulting services.

+ The decision on publishing the enterprise value shall specify amounts of debts and assets excluded when determining the enterprise value.

- In the stage of implementation of the equitization plan:

Extending the time for preparing financial reports, tax settlements, auditing financial reports, and settling costs of equitization from 30 days to 90 days from the date of obtaining the certification of first registration of a joint stock company.

More details can be found in Decree No. 126/2017/ND-CP of Vietnam’s Government, which takes effect from January 01, 2018.

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