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

Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - The state economy plays a key role in the socio-economic development process, but it is necessary to strengthen the financial health and competitiveness of state-owned enterprises (SOEs).
Electronics industry overcomes challenges to penetrate deep into global supply chain

Electronics industry overcomes challenges to penetrate deep into global supply chain

VCN - In addition to the opportunities from the investment shift in the electronics industry, Vietnamese enterprises also face many challenges in terms of capital, technology and human resources. Ms. Do Thi Thuy Huong, Executive Committee Member of the Vietnam Electronics Industry Association (VEIA), shared about the future directions for this potential industry.
Policy adaptation and acceleration of digital transformation in tax and customs management

Policy adaptation and acceleration of digital transformation in tax and customs management

VCN - In order to contribute to economic growth, tax, customs and logistics management policies need to ensure high adaptability, stability and predictability so that they require little amendment or supplementation.
Public investment spending up 1.8% in first 10 months of 2024

Public investment spending up 1.8% in first 10 months of 2024

VCN - Public investment from Vietnam’s state budget saw steady growth in the first ten months of 2024, reaching 64.3% of the annual target—an increase of 1.8% compared to the same period last year.

Latest News

Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN – In order to achieve goal of strictly managing public debt and maintaining security and safety of the national financial system in 2025, it is necessary to ensure the borrowings and repayments of public debts is within the approved estimate; closely monitor public debt indicators to ensure that they are within the ceiling and warning thresholds approved by the National Assembly.
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

VCN - On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws. Concluding the session, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized the need for the Government to direct the drafting body and relevant agencies to collaborate closely to finalize a persuasive and widely supported report, ensuring the quality of the draft law for the National Assembly's consideration and decision.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

VCN - According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
State-owned securities company trails competitors

State-owned securities company trails competitors

Contrary to the outstanding performances in the banking sector, the securities subsidiaries of major banks have yet to fully leverage their potential, despite numerous inherent advantages.

More News

U.S. Treasury continues to affirm Vietnam does not manipulate currency

U.S. Treasury continues to affirm Vietnam does not manipulate currency

VCN - In its latest report, the U.S. Department of the Treasury has positively assessed Vietnam's monetary policy, reaffirming that Vietnam does not engage in currency manipulation.
Exchange rate fluctuations bring huge profits to many banks

Exchange rate fluctuations bring huge profits to many banks

Net profits from the foreign exchange trading segment of many banks have gained positive results thanks to a strong USD/VNĐ exchange rate fluctuations this year.
A “picture” of bank profits in the first nine months of 2024

A “picture” of bank profits in the first nine months of 2024

VCN - Pre-tax profits for banks during the first nine months of 2024 remained positive, exceeding 200 trillion VND, solidifying the sector's position as a market leader.
Many challenges in restructuring public finance

Many challenges in restructuring public finance

VCN - Restructuring public finance is an important step to improve state financial management, ensure resources are allocated reasonably and effectively, contributing to the country's sustainable development. In addition to the achieved results, the process of accelerating public finance restructuring also faces many pressures.
Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

VCN - E-commerce platforms that declare and pay taxes on behalf of traders not only help to reduce the number of tax declaration points but also reduce the cost of compliance with administrative procedures for the whole society because only one point as the e-commerce trading platform implements tax deduction, payment and declaration on behalf of tens, hundreds of thousands of individuals and business households on the platform.
Disbursement of public investment must be accelerated: Deputy PM

Disbursement of public investment must be accelerated: Deputy PM

Deputy Prime Minister Ho Duc Phoc has called on ministries, agencies, and localities to accelerate the disbursement of public investment from now until the year-end and further tighten investment management.
HCMC: Domestic revenue rises, revenue from import-export activities begins to increase

HCMC: Domestic revenue rises, revenue from import-export activities begins to increase

VCN - The results of State budget revenue in HCMC in the first 10 months of 2024 are estimated to increase by 10% over the same period last year, of which the highlight is that revenue from import-export activities has begun to increase.
Effectively control fiscal and monetary policy : Deputy Prime Minister and Minister Ho Duc Phoc

Effectively control fiscal and monetary policy : Deputy Prime Minister and Minister Ho Duc Phoc

VCN - Monetary policy and fiscal policy are the driving force for economic development, so that there has been effective coordination, Deputy Prime Minister and Minister of Finance Ho Duc Phoc.
Seaport stocks surge amid positive sector outlook

Seaport stocks surge amid positive sector outlook

During the trading session on 12 November, while the VN-Index fell for the fourth consecutive session to 1,244 points, several seaport and shipping stocks such as MVN (VIMC), VOS (Vietnam Shipping), and GMD (Gemadept) maintained upward momentum.
Read More

Your care

Latest Most read
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN - According to the plan for borrowing and repaying public debt and foreign debt of the country in 2025, the total borrowing demand of the Government in the year is expected to be at VND 815,238 billion, an increase of 20.6% compared to the Government'
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
State-owned securities company trails competitors

State-owned securities company trails competitors

Contrary to the outstanding performances in the banking sector, the securities subsidiaries of major banks have yet to fully leverage their potential, despite numerous inherent advantages.
Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - According to the State Capital Management Committee at Enterprises, to date, the country has six hundreds and seventy one SOEs including 6 economic groups, 53 state-owned corporations and 19 LLCs operating under the parent-subsidiary model.
Mobile Version