On Jun. 14, 2025, VIE GVT said the National Assembly voted to pass the Law on management and investment of state capital in enterprises, effective Aug. 1, 2025.
On Jun. 25, VIE GVT drafted law on state capital investment at firms.
VIE GVT drafted Law on management and investment of state capital at enterprises.
Follows VIE GVT Jun. 2024 drafting committee conference on draft law, see #206884.
Draft Law
Proposed law is expected to replace the Law on management and use of state capital investment in production and business at enterprises (Law No. 69/2014/QH13).
This law regulates the management and investment of state capital in enterprises.
Covers capital management on enterprises with direct state capital investments and other state-invested enterprises and their management of capital investment activities.
Specifies rules of arrangement and restructuring state investment capital at enterprises with direct investment of state capital and other state-invested enterprises.
Covers agencies and representatives of capital owners, and corporate governance.
In addition, covers inspection, evaluation and report on management and investments.
Effectiveness
The comment period for this consultation closes on Jul. 17, 2024.
Jul. 2024 Collecting Opinions
On Jul. 12, 2024, VIE GVT held a conference to collect opinions on the draft law.
The conference was organized by Ministry of Finance, National Assembly's finance and budget committee, and the state capital management committee at enterprises.
An agreement was reached to add the draft Law on management and investment of state capital at enterprises to the Law and ordinance development program for 2024.
The expected progress of the draft law will be given for the first time by the National Assembly in Oct. 2024; expected to get approval at the 9th session in May 2025.
The law is expected to take effect from Jan. 1, 2026.
Ministry of Finance issued decision No. 1337/QD-BTC on Jun. 12 to establish a drafting committee and a working group to assign agencies to implement drafting of the law.
Aug. 2024 Consultation Ongoing
On Aug. 15, 2024, VIE GVT organized an additional conference to collect opinions on the Draft law on management and investment of state capital in enterprises.
The conference on the draft law was organized by the Ministry of Finance, Department of Corporate Finance alongside the State Capital Investment Corporation (SCIC).
The discussion aims to gather opinions on state-owned enterprises (SOEs) specializing in the financial sector, and it made comparisons to SOEs operating in ASEAN.
Stakeholders should pay attention to continuing to separate the function of capital ownership from the function of state management at enterprises at a deeper level.
Document dated Aug. 16, 2024, received from VIE GVT Aug. 20, summarized Aug. 23.
Oct. 8, 2024 Responses to Feedback
On Oct. 8, 2024, VIE GVT published documents, explanations, and responses to feedback from agencies, organizations, and individuals regarding the draft law.
Oct. 16, 2024 SOE Performance Report
On Oct. 16, 2024, VIE GVT reported on state-owned enterprise performance and outlined upcoming plans to enhance their effectiveness through legal reforms.
Enterprise performance not commensurate with allocated resources, weak presence in strategic sectors like high-tech, manufacturing; investment efficiency below expected.
Limited autonomy in market-based operations, slow progress in equitization and state capital divestment; several large projects facing losses and accumulated deficits.
Government to enhance legal framework for state capital management, separating state ownership from enterprise management; enterprises to operate independently.
The state will exercise ownership rights through designated representatives and plans to modernize existing governance models to be aligned with international practices.
Emphasis will be on restructuring management systems and workforce optimization.
Document dated Oct. 16, 2024, received from VIE GVT Oct. 18, summarized Oct. 23.
Nov. 2024 Implementation
On Nov. 21, 2024, VIE GVT said the draft law is expected to be approved at its 9th session in May 2025 and is scheduled to take effect from Jan. 1, 2026.
SOEs expect the law to fundamentally and comprehensively reform the management of state capital in enterprises, creating new momentum for SOEs to make breakthroughs.
Jun. 2025 Law Passed
On Jun. 14, 2025, VIE GVT said the National Assembly voted to pass the Law on management and investment of state capital in enterprises, effective Aug. 1, 2025.
