Prevent the exploitation of privatization for the purpose of acquiring land for resale.

On December 12th, 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.

These are not shares that people can use to take land and sell it.

Speaking at the meeting, the Deputy Prime Minister 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.

Government leaders have requested thorough and in-depth discussions, proposing reasonable and effective solutions to "close legal loopholes," ensuring compliance with land law regulations and suitability to practical realities. This aims to both promote business development and prevent post-privatization enterprises from changing land use purposes to profit from differential land rent. Based on this, the draft will be finalized and submitted to the Government for consideration and promulgation as prescribed.

Deputy Prime Minister Ho Duc Phoc emphasized that the decree must be implemented, because "issuing a decree just for the sake of issuing it without implementing it is meaningless."

After hearing the representatives from the Government Office and various ministries and agencies, 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 the meeting and the opinions of the Government members to finalize the draft for the Government's consideration and timely promulgation.

The Deputy Prime Minister emphasized 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 obstacles and prevent the loss of state assets, while promoting the efficient and sustainable development of businesses.

Deputy Prime Minister Ho Duc Phoc clearly stated that the 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".

Không để lợi dụng cổ phần hóa nhằm thâu tóm đất đai đem bán - 1

Do not allow inspections and monitoring to affect the company's production activities.

Government leaders also emphasized the need for strict management and closing of legal loopholes related to land during the equitization process; strictly prohibiting the exploitation of equitization to cause the loss of state assets and land; and ensuring that equitization is 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 that for land where the land lease fee has been paid in a lump sum, it should naturally be included in the enterprise value. For land under 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 of the Communist Party of Vietnam.

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 government leaders, 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. The Land Law stipulates this very strictly.

Therefore, the draft Decree must design and phrase this regulation in a way that is reasonable, rigorous, in accordance with the Land Law, easy to understand, and easy to implement, to ensure the right of businesses to change the land use purpose, 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.

Government leaders also provided feedback on regulations regarding the criteria 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 Government members and the Government.

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

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