3:49 PM, 16/10/2015
SOEs prohibited from non-core investments in real estate and banks
VGP – State-owned enterprises (SOEs) are not allowed to invest in real estate and buy stocks in banks, insurance companies, securities companies, and venture capital funds excluding special cases which are decided by the PM.
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The new regulation is stipulated at the newly-approved Decree 91/2015/ND-CP (Decree 91) on state capital investment in enterprises, management and spending of SOEs capital and assets.
Under Decree 91, SOEs are permitted to use their assets and capital to invest in other fields including overseas investment in accordance with Article 28 and Article 29 of the Law on Management and the Use of State Capital in Production and Business.
Non-score investments have to comply with the legal system and not affect business and production activities of SOEs and in favor of efficiency.
In addition, SOEs are not allowed to use hired assets to conduct non-core business investments.
The new Decree also stipulates that SOEs are responsible for keeping and developing state capital and reporting to supervisory agencies./.
By Kim Loan
