Closing the 'loopholes' in equitization, promoting sustainable business development.

(Chinhphu.vn) - On December 12, Deputy Prime Minister Ho Duc Phoc chaired a meeting on the draft Decree on restructuring state capital in enterprises and the draft Decree on supervision, inspection, evaluation, classification, reporting and disclosure of information in the management and investment of state capital in enterprises.

Deputy Prime Minister Ho Duc Phoc chaired a meeting on the draft Decree on restructuring state capital in enterprises and the draft Decree on supervision, inspection, evaluation, classification, reporting and disclosure of information in the management and investment of state capital in enterprises - Photo: VGP/Tran Manh

Regarding the draft Decree on restructuring state capital in enterprises, Deputy Minister of Finance Cao Anh Tuan presented a detailed report on the following contents: Regulations on transferring the right to purchase shares and capital contributions to enterprises wholly owned by the State under its management or enterprises wholly owned by the State with the function of investing and conducting capital business; the need for clearer criteria and regulations to prevent related-party transactions, negative consequences, and sanctions in case the strategic investor violates commitments; and the determination of land use rights value during the equitization of state-owned enterprises in accordance with the contents of the 2024 Land Law and the draft Resolution of the National Assembly stipulating some mechanisms and policies to remove difficulties and obstacles in the implementation of the Land Law to determine the value of land use rights appropriately. Regarding issues related to the authority to decide on adjustments to the equitization plan, financial handling during equitization; regulations on land handling after equitization; and the calculation of land use rights value in the enterprise value…

Speaking at the meeting, Deputy Prime Minister Ho Duc Phoc requested representatives from ministries and agencies to discuss in detail the remaining points of disagreement in the draft, especially whether or not to include the value of land use rights and land leases in the valuation of enterprises during equitization.

Deputy Prime Minister Ho Duc Phoc requested thorough and in-depth discussions, proposing reasonable and effective solutions to "close legal loopholes," ensuring compliance with land law regulations, aligning with practical realities, promoting enterprise development, and preventing post-privatization enterprises from changing land use purposes to profit from differential land rent. Based on this, the draft should be finalized and submitted to the Government for consideration and promulgation as prescribed.

"A decree must be implemented; 'issuing a decree just for the sake of issuing it without implementing it is meaningless'," Deputy Prime Minister Ho Duc Phoc stated clearly.

After hearing the representatives from the Government Office and various ministries and agencies (State Bank of Vietnam, Ministry of Agriculture and Environment, Government Inspectorate, State Audit Office, Ministry of Public Security, Ministry of Justice), Deputy Prime Minister Ho Duc Phoc concluded the meeting by highly appreciating the responsible opinions of the representatives from the ministries and agencies. He requested the Ministry of Finance to fully incorporate the opinions expressed at today's meeting, as well as the opinions of the Government members, to finalize the draft for the Government's consideration and timely promulgation.

Deputy Prime Minister Ho Duc Phoc emphasized the requirements: Strict management and closing of legal loopholes related to land during the equitization process - Photo: VGP/Tran Manh

Privatization aims to promote efficient and sustainable business development.

The decree emphasizes the necessity of equitization to promote the efficient development of state-owned enterprises in production and business. However, in recent times, the equitization of state-owned enterprises has not met expectations due to regulatory obstacles, especially those related to land... Therefore, after its promulgation, the decree must both resolve these obstacles and prevent the loss of state assets, while simultaneously promoting the efficient and sustainable development of enterprises.

Deputy Prime Minister Ho Duc Phoc clearly stated: Our goal after equitization is to enhance the capacity of enterprises, promote sustainable development, and contribute to the development of the country, not to equitize so that people can "buy shares to acquire land for resale."

Deputy Prime Minister Ho Duc Phoc also emphasized the following requirements: Strict management and closure of legal loopholes related to land during the equitization process; strict prohibition of exploiting equitization to cause the loss of state assets and land; and equitization must be carried out in accordance with the law.

Regarding the question of whether the value of land use rights should be included in the enterprise value, the Deputy Prime Minister stated: "For land where the land lease fee has been paid in a lump sum, since the payment has already been made, it must naturally be included in the enterprise value. For land subject to annual lease, if the payment has not yet been made, it should not be included in the enterprise value. This is consistent with Resolution 12 of the Central Committee."

Regarding land use management after equitization, Deputy Prime Minister Ho Duc Phoc requested that it be implemented in accordance with the provisions of the Land Law.

According to the Deputy Prime Minister, the Land Law does not prohibit changing land use purposes, but the issue is whether or not to allow the change of land use purpose and in what form, which is decided by the competent authority. The Land Law stipulates this very strictly. Therefore, the draft Decree must design and express this regulation in a way that is reasonable, strict, in accordance with the Land Law, easy to understand, and easy to implement, to ensure the right of businesses to change land use purposes, while preventing losses and waste when changing land use purposes.

Regarding the sale of shares in state-owned enterprises, Deputy Prime Minister Ho Duc Phoc requested clear regulations on the transfer of capital or shares of state-owned enterprises to other state-owned enterprises; the sale of shares of state-owned enterprises to employees; and the sale of shares to external parties.

The Deputy Prime Minister also commented on the regulations regarding the standards for strategic investors; the Ministry of Finance's participation in the Steering Committee; and some details related to the wording in the draft… and requested the Ministry of Finance to incorporate the feedback, finalize the draft with specific explanations, and submit it to the members of the Government.

According to the Deputy Prime Minister, the Land Law does not prohibit changing land use purposes, but the issue is whether or not to allow changing land use purposes and in what form, which is decided by the competent authority. - Photo: VGP/Tran Manh

Supervision and inspection must be thorough, timely, and not affect the business operations.

Regarding the draft Decree on supervision, inspection, evaluation, classification, reporting, and disclosure of information in the management and investment of state capital in enterprises.

The Ministry of Finance's report clearly outlined the contents related to the supervision and inspection by the owner's representative agency of the representative agency and the enterprise (indirect supervision; direct supervision and inspection); the supervision and inspection by the Ministry of Finance of the owner's representative agency; the principles for evaluating and classifying enterprises; the methods for evaluating and classifying enterprises; and the criteria for evaluating and classifying enterprises…

After hearing opinions from the Government Office, the Ministry of Interior, the Ministry of Justice, the State Bank of Vietnam, the Ministry of Public Security, the Ministry of Agriculture and Environment, the Government Inspectorate, and the State Audit Office, Deputy Prime Minister Ho Duc Phoc concluded on this matter by requesting clear regulations on matters related to monitoring and inspection plans, monitoring teams, and supervisors (both regular and ad hoc); monitoring should focus on assigned basic indicators and a number of important indicators; ensuring strict and timely detection of irregularities for correction; and preventing inspections and monitoring from affecting the production and business activities of enterprises.

The Deputy Prime Minister also gave his opinion on regulations regarding the evaluation of representatives through the results of supervision, inspection, auditing, etc., related to inspection, auditing, emulation and reward, and control of state-owned enterprises.

Deputy Prime Minister Ho Duc Phoc requested the Ministry of Finance to fully incorporate all feedback and finalize the draft for submission to the Government for consideration and decision.

Tran Manh

Source: https://baochinhphu.vn/bit-kin-cac-lo-hong-trong-co-phan-hoa-thuc-day-doanh-nghiep-phat-trien-ben-vung-102251212140618434.htm