National Assembly Passes Amended Law on Enterprises
|
The newly passed law stipulates that enterprises issuing private placement bonds must meet the condition of having payables (including the value of the planned bond issuance) not exceeding 5 times their owner’s equity.
Organizations that fall under this category include state-owned enterprises, issuers of bonds for real estate projects, credit institutions, insurance and reinsurance companies, insurance brokers, securities companies, and investment fund management companies.
Explaining this provision before the National Assembly’s approval, Minister of Finance Nguyen Van Thang stated that the addition of the debt-to-equity ratio requirement for issuers aims to mitigate bond payment risks for enterprises and investors.
The government views private placement bonds as risky financial products, and investors are expected to assess and take responsibility for their purchases based on transparent information about the issuing company’s financial health.
However, when legal violations related to private placement bonds occurred recently, the issuing companies were unable to fully repay the bond principal and interest on time, leading to investor complaints and state intervention.
Mr. Thang mentioned that the proposed ratio of not exceeding 5 times was based on feedback from ministries, sector members, and existing regulations in the Law on Real Estate Business and related decrees regarding debt and bond issuance limits in this sector.
According to the passed law, officials working at public higher education institutions are allowed to contribute capital, participate in the management and operation of enterprises established by these institutions, and even establish their own enterprises to commercialize research results generated by the institutions.
This policy aligns with Resolution No. 193/2025 of the National Assembly, which aims to pilot several special mechanisms to boost the development of science, technology, innovation, and national digital transformation. By enabling scientists and research institutions to more easily commercialize their research outcomes, this change will expedite the application of their work in practice.
The law also introduces a broader definition of “beneficial owner of an enterprise,” aligning with the Law on Anti-Money Laundering. The government will provide detailed criteria for determining beneficial owners, including ownership ratios of charter capital (direct or indirect), voting rights, or control through the appointment/dismissal of personnel.
For enterprises established before this law takes effect, the addition of beneficial owner information will be done simultaneously during their next registration or notification of changes. The collected information will primarily be stored and provided upon request by authorized state agencies.
The Amended Law on Enterprises will come into effect on July 1, 2025.
– 12:10, June 17, 2025
The Government to Announce the Natural Area of New Communal Administrative Units by September 30th.
The Standing Committee of the National Assembly has tasked the Government with accurately determining and publicly disclosing the natural area of communal-level administrative units by September 30, 2025.
The Magic of Municipal Mergers: Unveiling the 168 New Wards of Ho Chi Minh City
The city of Ho Chi Minh, a bustling metropolis, has undergone a transformation, resulting in a streamlined structure of 168 administrative units at the commune level. This includes 113 wards, 54 communes, and one special administrative region, each playing a vital role in the city’s vibrant tapestry.
Teachers’ Salaries to Be Ranked Highest in the System, With No Restrictions on Private Tutoring From 2026 Onwards
“From 2026 onwards, teachers will be among the highest-paid professionals within the administrative career ladder, receiving additional allowances based on the nature of their work and the region they serve. This is a well-deserved recognition of the invaluable contribution they make to society.”
The Jobless Benefit: A Safety Net or a Trap?
The Standing Committee of the National Assembly assessed that the unemployment benefit rate of 60% of the average monthly unemployment insurance contribution is relatively in line with international practices and the current provisions for benefits that workers receive upon job loss. Consequently, the amended Labor Law retains the existing provision regarding the unemployment benefit rate.
The Constitution Amendment Passes in Congress, County-Level Operations Halt from July 1st
With the recent resolution passed by the National Assembly, the Prime Minister will now directly appoint the chairman and vice-chairman of the People’s Committees in the provinces and centrally-run cities formed after the reorganization.
