State-owned enterprises are prohibited from investing in real estate, banking, and securities.

From December 1, state-owned enterprises are not allowed to invest in real estate, banking, or securities, except in special cases permitted by the Government.

The Government has just issued Decree 91 on state capital investment in enterprises and management and use of capital and assets in enterprises. Since December 1, 2015, the state-owned sector has been officially prohibited from contributing capital or investing in real estate, banking, insurance, securities and investment funds, except in special cases as decided by the Government.

In case a State-owned enterprise has contributed capital and invested in the above fields without the Prime Minister's permission, it must restructure and transfer all invested capital according to regulations.

Four years ago, the Government also issued a Resolution requiring State corporations and groups not to invest outside of core business areas. If they "accidentally" participate, the enterprise must divest its capital before 2015. With the promulgation of Decree 91, this viewpoint is once again reinforced and requires strict implementation. If the request is not followed, the Board of Members or the Chairman of the company will be handled according to the provisions of the law.

Illustration.

The document also clearly states that enterprises must be responsible for preserving and developing the invested State capital, and any changes in capital increase or decrease must be reported.

Previously, losses from enterprises investing in non-core sectors had seriously affected the image and operational efficiency of the state-owned sector. At the end of 2011, state-owned economic groups invested nearly VND23,744 billion in non-core sectors, of which the largest was in the banking sector with VND11,403 billion, followed by real estate with VND9,286 billion, insurance with VND1,682 billion, securities with VND696 billion and investment funds with VND677 billion.

To date, the divestment process from the above 5 sensitive sectors has been carried out, but has not yet been completed. The total value of divestment according to book value by the end of August 2015 reached 13,797 billion VND, while the actual amount collected was 17,777 billion VND.

In addition, the Government Decree also points out three cases where the State buys back entire enterprises, including the goal of restructuring the economy; directly serving national defense and security; and providing essential public products and services to society.

The acquisition of part or all of an enterprise is carried out through the acquisition of shares or capital contributions in enterprises.

According to Vnexpress