On March 8, 2818, The Government issued Decree No.32/2018/ND-CP amending and supplementing certain articles of The Government’s decree No.91/2015/ND-CP dated October 13, 2015 on state capital investment in enterprises, use and management of capital and assets in enterprises. The Decree took effect since May 1, 2018.
Accordingly, Decree No.32/2018/ND-CP contains some important contents as follows:
- Narrowing the state capital investment in maintaining the rate of state-owned share and contributed capital: Decree No. 32/2018/ND-CP eliminates some industries such as cigarette production, electricity distribution, petrol wholesale, wholesale food, urban water drainage, organic chemicals, international maritime transport, rail transport, plant varieties, agricultural and forestry activities in accordance with the law.
- State enterprises shall not be allowed to use capital assets and right to use the leased land to contribute their capital to or invest in real estate (except those whose main businesses are types of real estate stipulated in the Law on Real Estate Business), or contribute their capital or buy shares of banks, insurance companies, securities companies, venture investment funds, securities investment funds or securities investment companies, except for special cases decided by the Prime Minister.
- Supplementing the regulations on state capital diversion at enterprises:
– The transfer of state capital in enterprises must be associated with the restructuring of the enterprise;
– State capital transfer must be through completion of the open auction, the competitive bidding and arrangement or “book-building” approach.
Thus, Decree No. 32/2018/ND-CP plays an important role in the management of state capital investment in enterprises, use and management of capital and assets in enterprises, contributing to the efficient use of state capital, avoid losses and waste.