More guidance about divestment in other companies by State-owned enterprises

Decision 51/2014 is another effort by the Prime Minister to accelerate the restructuring of State-owned Enterprises. In particular,

  • Decision 51/2014 provides more detailed requirements for an SOE to sell its investment in other companies under par value or book value including requirement for setting up reserve, and engaging qualified valuation companies;
  • SCIC now has the right to acquire any investment which an SOE fails to sell to other investors; and
  • After an SOE is equitised, the equitised company is now required to register its shares with the Vietnam Securities Depository Center and with Upcom exchange for trading within 90 days. This is an important step which will provide more liquidity for investors in equitised SOEs