New rules outline ratio of charter capital in State-owned enterprises

The State will hold 50 per cent of the charter capital of power production companies with minimum capacity of 500MW instead of 100MW in accordance with the new requirements.

This is one of the regulations stated in Decision 14/2011/QD-TTg that was signed by Prime Minister Nguyen Tan Dung, which stipulates the ratio of charter capital that the State will hold in State-owned enterprises (SOEs).

Under the decision, the State will hold 100 per cent of charter capital in enterprises operating in sectors involving national defence and security and in military/economic enterprises that are located in strategic and/or remote areas. The State will also hold 100 per cent of charter capital in enterprises managing infrastructure systems such as the national railways, urban areas, airports, important and large-scale seaports and television stations.

Dung asked ministries, ministerial-level agencies, People’s Committees of provinces and centrally-governed cities, economic corporations and groups set up under the PM’s decisions to continue classifying and re-arranging their one-member limited liability companies, before reporting to the Prime Minister for approval.

The decision will become effective on April 20.

Pham Duc Trung, deputy head of the Enterprise Committee under the Central Institute for Economic Management, said State-owned groups and corporations would be more active in selecting affiliates which would be equitised.

However, it also puts pressure on the groups and corporations because these enterprises are required to complete and submit their plans concerning corporate renewal and equitisation to the Prime Minister for approval during the second quarter of the year.

Enterprises that the State will hold 50 per cent of their charter capital include businesses that produce public products like media outlets, lighting companies and agro-businesses.

The State will hold 50 per cent of stake in businesses that play a key role in ensuring the stability of the national economy; stabilising markets such as electricity; exploiting minerals, coal, bauxite, copper, iron, tin, gold and precious stones; producing more than 500,000 tonnes of pig-iron and steel per year; and companies that provide financial, credit and insurance services. — VNS

Tags: Decision 14/2011/QD-TTg, Vietnam companies, Vietnam enterprises, Vietnam SOEs

Posted by VBN on Mar 15 2011. Filed under Enterprises. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry