Consider regulations allowing state-owned enterprises to invest in real estate business outside their core industries.

Delegate Pham Van Hoa ( Dong Thap ) spoke at the hall on the morning of May 13. Photo: QUANG PHUC

Continuing the plenary session program on the morning of May 13, the National Assembly listened to the presentation, the verification report and discussed in the hall a number of contents with different opinions of the draft Law on Management and Investment of State Capital in Enterprises.

Chairman of the Economic and Financial Committee Phan Van Mai reports on the review at the meeting. Photo: QUANG PHUC

Reporting at the meeting, Chairman of the Economic and Financial Committee Phan Van Mai said that after being revised, the draft law now clearly stipulates the tasks and powers of the Government; the board of members, and the company chairman at enterprises in which the State holds 100% of the charter capital.

The draft also cut 7/24 (about 30%) of administrative procedures. Along with that, about 50% of the procedures submitted to the Prime Minister were cut or decentralized to the owner's representative agency. The draft law is also adjusted to ensure coverage of both management and investment of state capital according to the investment capital portion in enterprises with 50% state capital or less, according to the principle that wherever there is state capital, there must be state management with appropriate measures and levels.

Regarding supervision and inspection of the management and investment of state capital in enterprises, the draft law has been revised to only stipulate the inspection authority of the Government and the Prime Minister; it does not stipulate the inspection authority for ministries, ministerial-level agencies, and agencies representing state capital owners. The inspection of the management and investment of state capital in enterprises shall be carried out in accordance with the provisions of the law on inspection and relevant laws.

Delegate Tran Anh Tuan (HCMC) speaks at the meeting. Photo: QUANG PHUC

Acknowledging that this draft law has been much more open in the process and procedures for adding charter capital to state-owned enterprises, Deputy Tran Anh Tuan (HCMC) commented: "Previously, adding charter capital according to Law No. 69 was very difficult. This draft is more open, but there are still constraints on the scope in 5 areas, which is like opening at the end, but closing at the beginning."

According to Deputy Tuan, the decision on capital increase should be decentralized to the owner's representative agency, ensuring more flexibility and timely response to the business's investment expansion requirements. The areas eligible for capital increase should also be expanded, for example, in the case of a commercial enterprise wanting to build real estate as commercial infrastructure, especially when using capital mobilized from other sources, not state capital...

President Luong Cuong talks with National Assembly member Tran Hoang Ngan (HCMC) on the sidelines of the meeting. Photo: QUANG PHUC

Deputy Pham Van Hoa (Dong Thap) has a slightly different view on the fields in which state-owned enterprises invest. The deputy commented: “Recently, some state-owned enterprises investing outside their core industries have encountered difficulties, and in some cases have been caught up in legal trouble. The draft law allowing real estate investment and business outside such industries should be considered carefully. Allowing all state-owned enterprises to invest in real estate is not advisable and not good. Real estate business is a lucrative business, with very high profits to offset other costs, so it is very necessary, but not everyone can do it.”

Delegate Nguyen Van Than (Thai Binh). Photo: QUANG PHUC

Agreeing with this view, Deputy Nguyen Van Than (Thai Binh) commented: “It is not correct to say that if private enterprises can do it, state-owned enterprises cannot. However, it is necessary to assign very specific tasks to state-owned enterprises, not just seeing that real estate is “hot” and jumping in. Even large enterprises that invest in everything find it very difficult to succeed.” According to the Deputy, state-owned enterprises that want to participate in investment in areas outside of their assigned functions and tasks must have the opinion of the owner.

National Assembly Chairman Tran Thanh Man talks with Chairman of the Economic and Financial Committee Phan Van Mai. Photo: QUANG PHUC

Concerning pre-tax costs, Deputy Le Thi Thanh Lam (Hau Giang) said that it would be unreasonable to stipulate that salaries, remuneration, and bonuses for employees be deducted from after-tax income, which would not accurately reflect the relationship between employers and employees. "These amounts must be included in pre-tax costs, not in after-tax profits," she said. The Deputy also suggested studying and adding to the draft regulations to ensure the property rights of bona fide buyers who are unaware of the seller's violations when making the transaction.

MR. PHUONG

Source: https://www.sggp.org.vn/can-nhac-quy-dinh-cho-phep-doanh-nghiep-nha-nuoc-dau-tu-kinh-doanh-bat-dong-san-ngoai-nganh-post795013.html