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  • The Following Enterprises Are Entitled To Equitize

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    The document outlines conditions for privatizing state-owned enterprises in Vietnam. It specifies six types of enterprises that are eligible for privatization, including state-owned corporations and companies with 100% capital held by the government. It also lists additional requirements for privatization, such as retaining state-owned capital after financial settlement and not negatively impacting production efficiency. An example is given of Vietcombank meeting the criteria for an initial public offering with the government retaining a majority stake.

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    The document outlines conditions for privatizing state-owned enterprises in Vietnam. It specifies six types of enterprises that are eligible for privatization, including state-owned corporations and companies with 100% capital held by the government. It also lists additional requirements for privatization, such as retaining state-owned capital after financial settlement and not negatively impacting production efficiency. An example is given of Vietcombank meeting the criteria for an initial public offering with the government retaining a majority stake.

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    11 views2 pages

    The Following Enterprises Are Entitled To Equitize

    Uploaded by

    lina889
    The document outlines conditions for privatizing state-owned enterprises in Vietnam. It specifies six types of enterprises that are eligible for privatization, including state-owned corporations and companies with 100% capital held by the government. It also lists additional requirements for privatization, such as retaining state-owned capital after financial settlement and not negatively impacting production efficiency. An example is given of Vietcombank meeting the criteria for an initial public offering with the government retaining a majority stake.

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    TOPIC 4:

    1/Conditions for privatization:

    • The following enterprises are entitled to equitize::

    1. Independent State-owned enterprises from Ministries, Industries and localities.

    2. Parent company of Economic Group (called Corporation). State- owned corporations


    (including State-owned Commercial banks)

    3. Parent company in Parent company- subsidiary complex.

    4. Independent Accounting Member Company of Government- found& invested

    5. Dependent Accounting Unit of Independent State- owned enterprises, Groups, state-


    owned corporations, Parent company, Independent Accounting member company ò
    Corporations.

    6. Limited companies with 100% authorized capital held by Government.

    • Conditions for privatization:

    1. Those above- mentioned enterprises are to privative only if:

    a/ Not classified as those with 100% authorized capital held by Government. The
    classification for those with 100% authorized capital held by Government is divided by Prime
    Minister upon different operating periods.

    b/ With State-owned capital retained after financial settlement and business re-valuation.

    2. As for Dependent Accounting Units, they need some additional conditions:

    a/ Sufficient criterion for Independent Accounting.

    b/ The production efficiency of the company is not affected by the privatization.

    c/ Is designated in the General plan of reorganization of enterprises approved by the Prime


    Minister.

    3, In case after financial handling and revaluation of the enterprise’s worth according to
    regulations in chapter II and III of Decree 109/ 2007 CP, June 26, 2007 and Circular 146/
    2007, December 6, 2007, its value is below its payables then it must carry out selling the
    company or dissolution and bankruptcy.
    Applications:

    By August 30,2008 the authorized capital of Vietcombank is 12,100,860,260,000. The


    Government’s capital accounted for 90.72% (approximately 11 thousand billion VND). When
    issuing 30% of the capital, the Government had the largest proportion of share. The criterion
    mentioned above satisfy requirements for IPO( Initial Public Offerings)

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