Deputy Prime Minister Ho Duc Phoc chaired a meeting on the draft Decree on the restructuring of state capital in enterprises and the draft Decree on monitoring, inspection, evaluation, classification, reporting, and disclosure of information in the management and investment of state capital in enterprises – Photo: VGP/Tran Manh
Regarding the draft Decree on the restructuring of state capital in enterprises, Deputy Minister of Finance Cao Anh Tuan presented a detailed report on the following contents: Regulations on transferring the right to purchase shares and the right to purchase capital contributions to enterprises wholly owned by the state under their management or enterprises wholly owned by the state with the function of investing and managing capital; on selecting strategic investors during equitization, which requires clearer criteria, provisions to prevent related transactions, negative occurrences, and sanctions in case strategic investors violate commitments; on determining the value of land use rights during the equitization of state-owned enterprises in accordance with the provisions of the 2024 Land Law, the draft National Assembly Resolution stipulating certain mechanisms and policies to address difficulties and obstacles in the implementation of the Land Law to determine the value of land use rights appropriately; on contents related to the authority to decide on adjustments to the equitization plan, financial handling during equitization; on regulations for handling land after equitization; and on valuing land use rights as part of the enterprise value…
Speaking at the meeting, Deputy Prime Minister Ho Duc Phoc requested representatives from ministries and agencies to discuss in detail the contents with differing opinions regarding the draft, particularly whether to include the value of land use rights and land lease in the enterprise value during equitization.
Deputy Prime Minister Ho Duc Phoc emphasized the need for thorough and detailed discussions, proposing reasonable and effective solutions to “seal legal loopholes,” ensuring compliance with land laws, aligning with practical realities, promoting enterprise development, and preventing post-equitization enterprises from changing land use purposes to profit from land rent differentials. Based on this, the draft should be finalized for submission to the Government for issuance as per regulations.
“The decree must be implementable; issuing it just for the sake of issuance without implementation holds no meaning,” Deputy Prime Minister Ho Duc Phoc stated clearly.
After hearing from representatives of the Government Office and ministries (State Bank, Agriculture and Environment, Government Inspectorate, State Audit, Ministry of Public Security, Ministry of Justice), Deputy Prime Minister Ho Duc Phoc concluded the meeting by highly appreciating the responsible opinions of the representatives. He requested the Ministry of Finance to fully absorb the opinions expressed at today’s meeting and those of Government members to finalize the draft for timely submission to the Government for issuance.
Deputy Prime Minister Ho Duc Phoc emphasized the need for tight management and closing legal loopholes related to land during the equitization process – Photo: VGP/Tran Manh
Equitization to Promote Effective and Sustainable Enterprise Development
Emphasizing the necessity of equitization to enhance enterprise production and business efficiency, it was noted that the equitization of state-owned enterprises has not met requirements due to lingering issues, particularly those related to land. Therefore, upon issuance, the decree must both resolve these issues and prevent state asset losses, while promoting effective and sustainable enterprise development.
Deputy Prime Minister Ho Duc Phoc clarified: “Our goal post-equitization is to enhance enterprise capacity, fostering sustainable development and contributing to national growth, not equitization for others to ‘buy shares to acquire land for resale.'”
Deputy Prime Minister Ho Duc Phoc also stressed the requirements: Tight management and closing legal loopholes related to land during equitization; strict prohibition of exploiting equitization to cause state asset and land losses; and ensuring equitization complies with legal regulations.
On the issue of “whether land use rights value should be included in enterprise value,” the Deputy Prime Minister stated: “For land where a one-time lease payment has been made, since the payment has been completed, it should naturally be included in the enterprise value. For land leased annually, if payment has not been made, it should not be included in the enterprise value. This aligns with Resolution 12 of the Central Executive Committee.”
Regarding post-equitization land use management, Deputy Prime Minister Ho Duc Phoc mandated compliance with the Land Law.
According to the Deputy Prime Minister, the Land Law does not prohibit changes in land use purposes, but the decision to allow such changes and the form they take rests with the competent authority. The Land Law strictly regulates this content. Therefore, the draft Decree must design and articulate this provision reasonably, tightly, and in accordance with the Land Law, ensuring clarity and ease of implementation. This will safeguard enterprises’ rights to change land use purposes while preventing losses and waste during such changes.
For the sale of state-owned enterprise shares, Deputy Prime Minister Ho Duc Phoc required clear regulations on transferring capital or shares of state-owned enterprises to other state-owned enterprises; selling shares to employees; and selling shares externally.
The Deputy Prime Minister also provided input on regulations for strategic investor standards; the Ministry of Finance’s participation in the Steering Committee; and certain details related to the draft’s phrasing… He requested the Ministry of Finance to absorb these inputs, finalize the draft with detailed explanations for submission to Government members and the Government.
According to the Deputy Prime Minister, the Land Law does not prohibit changes in land use purposes, but the decision to allow such changes and the form they take rests with the competent authority – Photo: VGP/Tran Manh
Monitoring and Inspection Must Be Tight, Timely, and Non-Disruptive to Enterprise Operations
Regarding the draft Decree on monitoring, inspection, evaluation, classification, reporting, and disclosure of information in the management and investment of state capital in enterprises.
The Ministry of Finance’s report outlined contents related to the monitoring and inspection of representative agencies over representatives and enterprises (indirect monitoring; direct monitoring, inspection); the Ministry of Finance’s monitoring and inspection of representative agencies; principles for enterprise evaluation and classification; methods for enterprise evaluation and classification; and evaluation and classification criteria for enterprises…
After hearing from the Government Office, Ministry of Home Affairs, Ministry of Justice, State Bank, Ministry of Public Security, Ministry of Agriculture and Environment, Government Inspectorate, and State Audit, Deputy Prime Minister Ho Duc Phoc concluded this section by requiring clear regulations on monitoring and inspection plans, inspection teams, and inspectors (both regular and unexpected). Monitoring should focus on assigned key indicators and important ones, ensuring tightness and timeliness in detecting and rectifying irregularities without disrupting enterprise production and business activities.
The Deputy Prime Minister also commented on regulations for evaluating representatives through monitoring, inspection, audit, and inspection results… and contents related to inspection, audit, emulation, commendation, and control of state-owned enterprises.
Deputy Prime Minister Ho Duc Phoc requested the Ministry of Finance to fully absorb the opinions, finalize the draft, and submit it to the Government for consideration and decision./.
Tran Manh
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