Along with the completion of policy mechanisms for State capital investment in enterprises, management and use of capital and assets of State capital investing in enterprises, the effective implementation of this policy and the supervision of State capital investments in enterprise will also be promoted.

The Ministry of Finance will supervise state capital investment
in Agribank in 2020. Source: Internet

Continue completing policy

According to assessments, policy mechanisms and legal systems on the management and use of State capital and assets in State-owned enterprises (SOEs) and the equitisation of SOEs have been promulgated, amended, supplemented, completed and ensured tightness, publicity and transparency, maximising the interests of the State and removing difficulties and problems to speed up the equitisation, divestment and limit the loss of state capital and assets during the equitisation process, divestment, and restructuring of SOEs.

However, management and use of State capital and assets in enterprises still have shortcomings in terms of mechanisms and policies, the implementation of restructuring, improving the performance of SOEs and land-related problems of SOEs.

Therefore, the mechanisms and policies on the management and use of State capital investment in production and business of enterprises will be completed towards reforming the management of SOEs in the direction of market principles, ensuring the principle where State capital is available, there is the management and supervision of the representative body of State capital through the representative of state capital in the enterprise associated with the supplementation of regulations, rights and responsibilities of a representative of State capital, applying a mechanism to sign contracts with the representative of State capital. Strengthen inspection and supervision of state management agencies on the law observance of enterprises and improve the effectiveness and efficiency of inspection, supervision and warning of State capital owner’s representative agency on the observance of instructions and decisions of the State owner in SOEs.

Along with that, supplementing regulations stipulates clearly the responsibilities and competence of the owner of State capital, the State capital owner’s representative agency in the decision of project investment, asset procurement; financial investment is consistent with provisions of the revised Law on Enterprise, the revision Law on Investment, and compliance with bidding regulations and construction investment regulations in the Law on Bidding and the Law on Construction. The authority and process of additional investment in SOEs capital from the State budget will be supplemented, specified, appropriate with the provisions of the Law on State Budget, Law on Public Investment. Clearly stipulating the content of State capital transfer in enterprises towards a principle of limiting the State's intervention in determining the value of state capital in enterprises when equitising and divesting capital. Clearly defining the interests of the State, the owner's representative agency, the enterprise in the appropriation of profits, dividends and the appropriation of the enterprise's funds.

Preservation of State capital investment in enterprises

Regarding this issue, the circular currently guides a number of contents on investment of State capital in enterprises and the management and use of capital and assets in enterprises noted in Decree No. 91/2015/ND-CP; Decree No. 32/2018/ND-CP; Decree No. 121/2020/ND-CP and Decree No. 140/2020/ND-CP of the Government being developed by the Ministry of Finance.

Some important contents are capital adjustment, capital transfer, right of buying shares, capital contribution right, inventory and process asset inventory results, appropriation of profits and developing financial plans were specified.

For example, for the adjustment of State capital invested in one-member limited liability companies where 100% of the newly established charter capital is held by the State, based on the actual State capital allocated (for enterprises that do not have construction investment projects), State capital is granted under the settlement of completed works approved by competent authorities (for enterprises based on the handover of construction investment projects) to record the increase of the owner's investment capital in accounting books of the enterprise. In case the actual investment capital of the State is lower than the registered charter capital level when establishing the company, the enterprise must register to adjust the charter capital level in the business registration certificate when established with actual capital invested by the State in the enterprise in accordance with the Law on Enterprises.

Regarding the management of capital and assets in one-member limited liability companies where all of the charter capital is held by the State, the draft circular stipulates that the management of capital and assets in the company is implemented in accordance with Decree No. 91/2015/ND-CP; Decree No. 32/2018/ND-CP; Decree No. 140/2020/ND-CP. At the same time, firms must build and issue internal regulations to manage and use all types of company assets. In particular, regulations must clearly define the coordination of each management division in the company, specifying the compensation responsibility of each department and individual for cases of damage, loss, or damage to property or damage to businesses. Besides that, enterprises must apply measures to preserve State capital investment in enterprises by setting up risk provisions in accordance with the regulations of the Ministry of Finance and amendments and supplements, replacement documents (if applicable).

In addition, implementing the supervision of State capital investment in enterprises, recently, the Ministry of Finance has promulgated a plan on State capital investment in enterprises supervision in 2020 (implementing in 2021) at two sectors that are Ministry of Defense and the State Bank. Specifically, Ministry of National Defence will directly supervise 2 enterprises that are corporation 15 and Limited Liability Company 16 with additional charter capital from the Support for Enterprise Arrangement and Development Fund. For the State Bank, the State Bank will indirectly supervise the additional investment of charter capital for the Bank for Agriculture and Rural Development of Vietnam via the payment of special bonds.