Deputy Prime Minister Ho Duc Phoc: Equitization is to improve the capacity of enterprises.

Photo caption — Deputy Prime Minister Ho Duc Phoc speaks at the meeting. Photo: An Dang/VNA

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 Environment, 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 handling mechanism when dissolving an enterprise;...

After listening to the discussion of Deputy Minister of Finance Cao Anh Tuan with ministries, branches 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. "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", the Deputy Prime Minister emphasized.

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.

Giving opinions on the contents: financial support for dissolved enterprises; regulations on the authority to recover assets after joint ventures..., the Deputy Prime Minister also requested the Ministry of Finance to receive and collect opinions at the meeting to complete the draft, ensuring it is close, correct, accurate, transparent, avoiding many different interpretations, and submit it to the Government for consideration and decision according to its authority.

The Ministry of Finance's report said that the draft Decree on restructuring state capital in enterprises includes 8 chapters, 100 articles and 2 appendices. In addition to the general provisions and implementation provisions, the draft Decree 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.

The draft Decree also regulates the consolidation, merger, division, separation, and dissolution of enterprises; transfer of state capital invested in joint stock companies and LLCs with two or more members; transfer of the right to represent the ownership of state capital in enterprises; transfer of investment projects, capital, and assets of enterprises; transfer of the right to purchase shares, the right to preemptively purchase shares, and the right to purchase capital contributions.

Notably, the draft Decree on restructuring state capital in enterprises amends and supplements a number of basic contents compared to current regulations. Accordingly, 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 when equitizing. At the same time, it strengthens decentralization in implementing steps of enterprise equitization as well as other forms of capital restructuring according to the principle that all levels decide on restructuring for enterprises as well as other forms of capital restructuring according to the principle that all levels decide on restructuring for 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; the owner representative agency decides on level I enterprises, level I enterprises decide on level II enterprises.

Regarding other forms of state capital restructuring, the draft Decree provides comprehensive and comprehensive provisions to ensure the handling of cases arising in practice such as mergers and consolidations of level 2 enterprises into level 1 enterprises, transfer of investment projects, capital, and assets between enterprises; transfer of rights to purchase shares and 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.

Source: https://baotintuc.vn/thoi-su/pho-thu-tuong-ho-duc-phoc-co-phan-hoa-la-de-nang-cao-nang-luc-cua-doanh-nghiep-20251014190405739.htm