Deputy Prime Minister Ho Duc Phoc: Equitization is to make businesses stronger, not to sell land.

(Chinhphu.vn) – Deputy Prime Minister Ho Duc Phoc stated: We equitize not to sell land but to improve the capacity of enterprises, so that the economy can develop more strongly, higher, more firmly and sustainably.

Deputy Prime Minister Ho Duc Phoc chaired a meeting with ministries, sectors and businesses on the draft Decree on restructuring state-owned enterprise capital at enterprises.

On the afternoon of October 14, Deputy Prime Minister Ho Duc Phoc chaired a meeting with ministries, branches and businesses on the draft Decree on restructuring state-owned enterprise capital at enterprises.

The Ministry of Finance 's report said that the draft Decree on restructuring state capital in enterprises includes 8 chapters, 100 articles and 02 appendices.

In addition to the general provisions and implementation provisions, the draft Decree on restructuring state capital in enterprises stipulates: Equitization of enterprises; conversion of enterprises in which the State holds 100% of charter capital into LLCs with 2 or more members and conversion of enterprises in which the State holds 50% or more of charter capital; consolidation, merger, division, separation, dissolution of enterprises; transfer of state capital invested in joint stock companies, LLCs with 2 or more members; transfer of the right to represent the ownership of state capital in enterprises; transfer of investment projects, capital, assets of enterprises; transfer of rights to purchase shares, preemptive rights to purchase shares, rights to purchase capital contributions.

Deputy Minister of Finance Cao Anh Tuan reported at the meeting.

Supplementing many important contents on equitization and restructuring of state capital

The Draft Decree on restructuring state capital in enterprises amends and supplements a number of basic contents compared to current regulations such as:

Regarding equitization: The draft supplements regulations to fully determine and update in accordance with the practical situation of land such as determining the value of land use rights and land lease rights during equitization.

At the same time, strengthen decentralization in implementing steps of enterprise equitization as well as other forms of capital restructuring according to the principle that levels decide on the restructuring of enterprises as well as other forms of capital restructuring according to the principle that levels decide on the restructuring of enterprises under their management.

Specifically, the Prime Minister decides on equitization, capital transfer, reorganization (division, separation, consolidation, merger, dissolution), transfer of ownership representation rights at 8 Groups and General Corporations (PVN, EVN, VNPT, TKV, Viettel, Vinachem, Vietnam Railway Corporation, SCIC); the owner representative agency decides on level I enterprises, level I enterprises decide on level II enterprises.

Regarding other forms of state capital restructuring: Full and comprehensive regulations to ensure handling of cases arising in practice such as mergers and consolidations of level 2 enterprises into level 1 enterprises, transfer of investment projects, capital, assets between enterprises; transfer of rights to purchase shares, rights to purchase capital contributions. For each form of restructuring, the draft Decree specifically stipulates the authority, order, procedures and financial handling.

The draft supplements specific regulations on the dissolution of agricultural and forestry companies in which the State holds 100% of charter capital, the transfer of state capital in investment enterprises in joint stock companies and limited liability companies with two or more members, and principles for issuing criteria for classifying state-owned enterprises and foreign-invested enterprises.

At the meeting, representatives of the Government Office, Ministry of Justice, State Audit, Ministry of Construction, Ministry of National Defense, State Bank, Government Inspectorate, Ministry of Public Security, Ministry of Agriculture and Rural Development, Hanoi City, Ho Chi Minh City; enterprises: Vietnam Rubber Industry Group, Viettel, HUD, SCIC, EVN, PVN, VNPT, Agribank spoke about the following contents: Land use rights after equitization; land area when assigned to equitized enterprises; subjects of equitization; merger and consolidation of enterprises; capital transfer; rights and obligations of enterprises, handling of responsibilities of subjects when equitizing; decentralization and delegation of authority in enterprise management in accordance with the spirit of Law 68; restructuring of enterprises that are producing and doing business at a loss; valuation methods; regulations on valuation of intangible assets; responsibilities of valuation consulting units; management of capital and assets in joint ventures between state-owned enterprises and foreign enterprises; financial settlement mechanism when dissolving an enterprise;...

Deputy Prime Minister Ho Duc Phoc: Equitization is not to sell land but to improve the capacity of enterprises.

Equitization is not to sell land but to improve the capacity of enterprises.

After listening to the discussion between Deputy Minister of Finance Cao Anh Tuan and ministries, sectors and enterprises, concluding the meeting, Deputy Prime Minister Ho Duc Phoc requested the Ministry of Finance to clearly and appropriately argue the content of the proposal for the Prime Minister to decide on equitization, capital transfer, reorganization, and transfer of ownership representatives at 8 corporations and groups (PVN, EVN, VNPT, TKV, Viettel, Vinachem, Vietnam Railway Corporation, SCIC), the rest is for the competent authority to approve.

Regarding the contents related to land and land use conversion, the Deputy Prime Minister stated: This draft Decree should not provide detailed instructions, but must be applied according to the provisions of the Land Law; not to allow the loss of differential land rent, land acquisition, etc. to occur.

"We equitize not to sell land but to improve the capacity of enterprises, so that the economy can develop more strongly, more steadily, more sustainably and sustainably," the Deputy Prime Minister emphasized.

Deputy Prime Minister Ho Duc Phoc: The selection and application of valuation methods must ensure the most benefit to the state.

Regarding the subjects of equitization, the Deputy Prime Minister requested compliance with the provisions of the Law on Management and Investment of State Capital in Enterprises (Law No. 68). This draft Decree only regulates level I enterprises, while level II and later enterprises must be approved by level I enterprises. The competent state management agency shall conduct inspection.

Regarding the content related to valuation, the Deputy Prime Minister stated: The agency that selects the valuation unit must be responsible for its choice. The valuation agency must be responsible for the selection and application of the valuation method. The selection and application of the valuation method must ensure the most benefit to the state. If there is a loss, it must be responsible.

Deputy Prime Minister Ho Duc Phoc also gave his opinion on the following contents: financial support for dissolved enterprises; regulations on the authority to recover assets after joint ventures...

The Deputy Prime Minister requested the Ministry of Finance to absorb and collect opinions at the meeting to complete the draft, ensuring it is close, correct, accurate, transparent, avoiding different interpretations, and submit it to the Government for consideration and decision according to its authority./.

Tran Manh

Source: https://baochinhphu.vn/pho-thu-tuong-ho-duc-phoc-co-phan-hoa-la-de-doanh-nghiep-manh-len-chu-khong-phai-ban-dat-102251014180615833.htm