In an attempt to accelerate the equitisation of State-owned enterprises (SOE), in November 2013, the Government issued certain changes to the existing equitisation rules under Decree 59/2011. The amendments took effect on 15 January 2014 covering the following:

• The time limit during which the enterprise valuation remains effective is prolonged from 12 months to 18 months. This amendment reflects that many equitsation process take longer time than expected.

• The requirement to have the State Audit to review the enterprise valuation is limited to the holding company of State Economic Group only. Previously, the valuation of SOEs with State capital of VND 500 billion or more operating in various sectors is subject to review by the State Audit.

• An equitised SOE may delay the settlement or valuation of certain outstanding receivable or payable amounts before the registration of the equitised joint stock company (JSC) if the equitised SOE is large and has many receivable or payable amounts.

• The new amendments only require an equitised SOE to reevaluate and take into account the land use rights which are “allocated” to it for real estate development or which are decided by the Prime Minister. All other land use rights will be converted into leased land use rights. The payment made for allocated land will constitute pre-payment of land rental. Under Decree 59/2011, an equitised SOE has the option to select between to have its land use rights allocated or leased to it. This provision is said to be one of the obstacles in valuating an equitised SOE.

• If an equitised SOE contributed land use rights to the charter capital of another company, then the capital contribution will either be transferred to a different SOE (if permitted by other shareholders or members) or be inherited by the equitised JSC.

• The management of an equitised SOE will be subject to penalty if they miss the schedule of the equitisation process.