State enterprises not allowed in real estates and security

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This content prescribed at the Decree No. 91/2015/ND-CP of the Government on October on investment of state capital in enterprises and management and use of capital and assets at enterprises, takes effect on December 01, 2015.

In particular, state enterprises may use assets and capital under their management and use for outside investment, including offshore investment. The outside investment of a state enterprise must comply with law and conform with its major business line without affecting its production and business activities, and ensuring efficiency, preservation and development of the invested capital; a state enterprise may not contribute capital to, or invest in, real estate must not contribute capital to, or buy shares of, banks, insurance companies, securities companies, risk investment funds, securities investment funds, and securities investment companies. If a state enterprise has contributed capital to, or invested in the fields referred to at Point b of this Clause other than the cases permitted for investment by the Prime Minister, it shall implement a restructuring plan and transfer all of the invested capital amount under regulations.

Besides, the Decree also prescribes on Scope of investment of state capital to establish state enterprises. State enterprises which provide essential public-utility products and services to ensure social welfare, including public postal services; publishing (excluding printing and distribution of publications); activities in agriculture and forestry; management and exploitation of inter-provincial and inter-district irrigation works; management, exploitation and operation of national and urban railway infrastructure facilities; flight safety assurance; maritime safety assurance;  State enterprises operating to directly serve national defense or security under the Government’s regulations. State enterprises operating in natural monopoly fields, including national electricity transmission system; multi-purpose large-scale hydropower plants, nuclear power plants of specially important socio-economic significance in association with national defense and security; money printing, coinage and gold bar production; lottery…

If their charters or financial regulations were promulgated by competent authorities before July 1, 2015, state enterprises may continue implementing them through December 31, 2015. Activities of managing and using capital and assets at state enterprises and managing state capital at joint stock companies and limited liability companies with two or more members, which arose before July 1, 2015, shall be handled under current regulations through December 31, 2015.



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