Reforming corporate finance policies

VCN - At the Conference to disseminate policies and laws on corporate finance in 2022 organized by the Corporate Finance Department (Ministry of Finance) on August 9, the leaders of the Department of Corporate Finance shared information on the orientation of amending the Law on Management and Use of State Capital to invest in production and business in enterprises as well as the implementation of the Project "Restructuring SOEs, focusing on economic groups and corporations for the 2021 – 2025 period”.
Equitization and divestment of State capital not yet drastically performed Equitization and divestment of State capital not yet drastically performed
Director of Department of Corporate Finance Dang Quyet Tien: It is impossible to subsidise forever Director of Department of Corporate Finance Dang Quyet Tien: It is impossible to subsidise forever
Equitisation and divestment are still slow Equitisation and divestment are still slow
The conference to disseminate policies and laws on corporate finance in 2022.
The conference to disseminate policies and laws on corporate finance in 2022.

Reforming the method of managing state capital invested in enterprises

Deputy Director of the Department of Corporate Finance Mr. Pham Van Duc said the conference aims to disseminate issued policies and laws on corporate finance to help ministries, sectors and localities, State enterprises strictly and fully comply with the provisions of the law.

At the conference, the representative of the leaders of the Corporate Finance Department introduced a number of contents on the orientation to amend the Law on management and use of state capital invested in production and business in enterprises (Law 69/2014/QH13); the implementation of the project "Restructuring SOEs, focusing on economic groups and corporations for the 2021 – 2025 period". In addition, the conference also disseminated the basic contents of decrees and circulars related to state capital investment in enterprises.

Regarding the orientation to amend Law 69/2014/QH13, Mr. Duc said that the Committee on Laws of the National Assembly has reviewed the Government's proposal on putting the Law on Investment Management and Use of State Capital in production and business at enterprises (amended) in the program of law and ordinance making in 2023.

Regarding the goal of amending policies on the management of state capital invested in enterprises, Mr. Duc said one of the important goals is to reform the method of managing state capital invested in enterprises in accordance with international practices; and to reform the mechanism of evaluating the performance of SOEs according to the overall objective.

Mr. Pham Van Duc, Deputy Director of the Corporate Finance Department speaks at the conference.
Mr. Pham Van Duc, Deputy Director of the Corporate Finance Department speaks at the conference.

The comprehensive amendment and promulgation of this Law will help perfect the institution and stabilize the legal environment for state capital investment in production and business in enterprises; create a sufficient and stable legal environment for the management and use of state capital and assets at state agencies and enterprises; ensure SOEs operate according to the market mechanism in business lines and industries at the request of the State.

Regarding the scope of regulation, the draft Law stipulates the investment and management of state capital invested in enterprises in which 100% of charter capital is owned by the State, enterprises in which more than 50% of charter capital is owned by the State; restructures state capital in enterprises; provides for rights and responsibilities of the owner's representative.

For example, for enterprises in which 100% charter capital is held by the State, the draft Law will clearly stipulate that F1 enterprises are not allowed to lend to F2 enterprises, the Board of Directors, the Chairman of the Board of Directors shall decide and take responsibility for the efficiency of capital mobilization, and debt repayment for mobilized capital (establishing a self-borrowing, self-paying, and self-responsibility mechanism in the enterprise's capital borrowing activities).

The progress of development and approval of the project on SOEs restructuring has not met the requirements

The Project "Restructuring SOEs, focusing on economic groups and corporations for the 2021 – 2025 period", aims to complete the rearrangement and transformation of SOEs ownership; ensure revenue from SOEs restructuring to remit to the state budget for the 2021 - 2025 period at least VND248 billion according to the Resolution of the National Assembly.

In addition, the weaknesses, losses, projects, works behind schedule, inefficient investment, and prolonged losses of economic groups, state corporations and SOEs must be settled; the project on the restructuring of all economic groups, state corporations, SOEs for the 2021 - 2025 period must be approved.

Speaking about the implementation of the Project "Restructuring SOEs, focusing on economic groups and corporations for the 2021 – 2025 period", Deputy Director of the Corporate Finance Department said that until July 22, 2022, the Corporate Finance Department had only received reports from a number of representative agencies on the construction and approval of the restructuring project, in which some reports have not yet met the prescribed time.

Basically, the progress of building and submitting to competent authorities for approval of the restructuring project has not met the requirements in Resolution 68/NQ-CP dated May 12, 2022 of the Government.

At the conference, representatives of some enterprises also raised problems in the process of equitization and divestment, such as the problem of determining the value of land upon equitization, determining the brand value of enterprises; problems in signing land lease contracts when transform from limited company to joint stock company, information announcement of enterprises and the raising of charter capital at enterprises

The questions raised at the conference were answered and noted by the leader of the Corporate Finance Department to continue to improve laws and policies on corporate finance.

By Hoai Anh/ Huyen Trang

Related News

Customs always accompanies Korean businesses

Customs always accompanies Korean businesses

VCN - Before the dialogue conference between the Ministry of Finance and Korean businesses on tax and customs policies and administrative procedures in 2023-2024 taking place on February 29 in Hanoi, Customs Magazine had an interview with Ms. Tran Thi Thuy Hoa (photo), Deputy Director of the Legal Department, General Department of Customs, on the coordination and exchange of information on legal policies and support of the Customs agency with the Korean businesses that have been investing and will invest in Vietnam.
Securities attractive investment channel

Securities attractive investment channel

VCN - According to experts, with recent developments in the stock market, it can be seen that securities are currently an attractive investment channel.
Efforts to remove obstacles to upgrade the stock market

Efforts to remove obstacles to upgrade the stock market

VCN - According to the sharing of Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), in addition to completing the main criteria of international rating organizations in upgrading the stock market (TTCK), the State Securities Commission (SSC) continues to improve domestic regulations on the basis of researching international regulations and practices to promote Vietnam's stock market to develop in a sustainable direction, creating a favorable environment to attract international investors and foreign indirect investment capital flows.

Latest News

Tax sector implements solutions on revenue management to achieve “dual goals”

Tax sector implements solutions on revenue management to achieve “dual goals”

VCN – Sharing direction of ta management in 2024, Mr. Mai Son, Deputy Director General of Taxation said that the Tax sector has implemented solutions to achieve “dual goals” of completing the revenue target while supporting enterprises in operation and economic growth.
Public investment - Expectations from key transportation projects

Public investment - Expectations from key transportation projects

VCN - As one of the three main growth engines of the economy, in recent times, public investment has played an important role, leading and activating all social resources for development investment. This important driving force continues to have very positive signals with disbursement results reaching 2.58%, higher than the same period. 2024 strives to achieve a disbursement rate of at least 95%.
More policy rate cuts forecast in 2024 to support economic growth

More policy rate cuts forecast in 2024 to support economic growth

There is still room for the State Bank of Vietnam (SBV) to make another policy interest rate cut in 2024 to boost economic growth, analysts believed.
Urgently complete Decree on application of Global Minimum Tax inline with roadmap

Urgently complete Decree on application of Global Minimum Tax inline with roadmap

VCN – Regarding the development of Decree on the application of Additional corporate income tax (Global Minimum Tax), Deputy Director General of the General Department of Taxation Dang Ngoc Minh has requested units developing the Decree to closely cooperate and give opinion in line with actual operations of corporations that are affected by Resolution 107/2023/QH15 to effectively facilitate taxpayers during the implementation of the Decree.

More News

Strengthen the applications of coercive measures to collect tax debt

Strengthen the applications of coercive measures to collect tax debt

VCN - The General Department of Taxation requests tax departments to fully implement measures to urge, enforce and disclose information under the provisions of the Law on Tax Administration to recover tax debt.
PM orders SOEs to improve production, business efficiency

PM orders SOEs to improve production, business efficiency

Prime Minister Phạm Minh Chính has requested State-owned enterprises (SOEs) to reform governance, improve production and business efficiency, and strongly promote development investment.
Vietnam acts to combat money laundering, terrorist financing

Vietnam acts to combat money laundering, terrorist financing

Deputy Prime Minister Le Minh Khai on February 23 signed a decision promulgating the national action plan to implement the Government's commitment to prevent and combat money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction.
Banks ask central bank to extend June 30 payment deadline

Banks ask central bank to extend June 30 payment deadline

Industry experts said the current challenging economic situation and difficulties faced by businesses severely affect their ability to meet debt obligations. As there are no shortcuts to resolving old bad debts, a significant number of newly classified bad debts, which should be expected on June 30 this year, will put tremendous pressure on the country’s financial sector, as well as businesses.
The State Treasury implements nine key tasks in 2024

The State Treasury implements nine key tasks in 2024

VCN - The deployment of key tasks plan in 2024 (refer to the Plan) of State Treasury was issued to focus resources on completing tasks during the year and following the proposed strategies.
SBV injects large amount of money to support capital for banks

SBV injects large amount of money to support capital for banks

The State Bank of Vietnam (SBV) on February 20 net injected more than 5 trillion VND (nearly 204 million USD) into the banking system through the open market operation (OMO) channel to support capital for commercial banks.
Vietnam Stock Exchange’s revenue down nearly 44% in 2023

Vietnam Stock Exchange’s revenue down nearly 44% in 2023

The Vietnam Stock Exchange (VNX) reported revenue of over 1.92 trillion VND (78.26 million USD) in 2023, down nearly 44% compared to the previous year.
Focusing on five tasks so that the securities industry continues to develop in the face of intertwined opportunities, challenges

Focusing on five tasks so that the securities industry continues to develop in the face of intertwined opportunities, challenges

VCN - Deputy Minister of Finance Nguyen Duc Chi raised five tasks that need to be focused in 2024 so that the securities industry continues to develop in the face of intertwined opportunities and challenges.
Prioritizing the allocation of public investment capital

Prioritizing the allocation of public investment capital

VCN - Public investment in 2024 continues to set a disbursement target of at least 95% of the total of more than VND657,000 billion of assigned public investment capital. Thus the task is to focus on allocating capital quickly and reasonably right from the beginning of the year.
Read More

Your care

Latest Most read
Tax sector implements solutions on revenue management to achieve “dual goals”

Tax sector implements solutions on revenue management to achieve “dual goals”

VCN - 2023 is the year that the domestic economy faces many difficulties and challenges and is negatively impacted by the world economy, causing great pressure in the revenue collection of the Tax sector.
Securities attractive investment channel

Securities attractive investment channel

VCN - According to experts, with recent developments in the stock market, it can be seen that securities are currently an attractive investment channel.
Public investment - Expectations from key transportation projects

Public investment - Expectations from key transportation projects

VCN - For 12 component projects in the 2021-2025 period, although the first implementation years still had many problems for land and construction materials, investors and contractors had made efforts to organize construction and closely follow progress p
More policy rate cuts forecast in 2024 to support economic growth

More policy rate cuts forecast in 2024 to support economic growth

There is still room for the State Bank of Vietnam (SBV) to make another policy interest rate cut in 2024 to boost economic growth, analysts believed.
Urgently complete Decree on application of Global Minimum Tax inline with roadmap

Urgently complete Decree on application of Global Minimum Tax inline with roadmap

VCN - On November 29, 2023, the National Assembly approved Resolution No. 107/2023/QH15 on the application of additional corporate income tax under Global Anti-Base Erosion Rules. The Resolution takes effect from January 1, 2024, and is applied from fisca
Mobile Version