Some enterprises to apply Decree 59 upon equitization

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Recently, the Government has just issued Decree No. 126/ND-CP on transforming SOEs and one member company limited of which 100% of charter capital invested by the SOEs into joint stock companies. However, this Decree will be officially effective until 1 January 2018

In order to remove obstacles in equitization from now to the end of 2017, the Government has issued Decree No. 121 which allows enterprises that have been decided to announce the enterprise value but have not been approved with the equitization plan before 1 January 2018 and enterprises that have been approved with the equitization plan in 2017 but have not been approved with land using plan according to the Land Law by the competent authorities, to continue the equitization under Decree No. 59/2011/ND-CP on the transformation of enterprises with 100% of state capital.

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However, these enterprises have to be approved with the land using plan before its first business registration certificate for joint stock company is granted