Equitisation is not about selling land: deputy PM

Equitisation is not about selling land: deputy PM

He emphasised that land-related and conversion issues must adhere strictly to the Land Law, with no space for speculative appropriation or undervaluation.

Deputy Prime Minister Hồ Đức Phớc at a meeting with ministries and state enterprises in Hà Nội on October 14, 2025. — VGP Photo

Deputy Prime Minister Hồ Đức Phớc presided over a meeting with ministries and State enterprises to review the draft decree on restructuring State capital in State-owned enterprises on October 14 in Hà Nội.

The Ministry of Finance reported that the draft comprises eight chapters, 100 articles and two appendices.

Beyond general and implementation provisions, the draft decree addresses a wide array of issues: equitisation of SOEs; converting wholly State-owned enterprises into multi-member limited companies; transforming enterprises where the State holds 50 per cent or more; mergers, splits, consolidations, dissolutions; divestment of State capital in joint stock or multi-member limited companies; transferring ownership representation rights; transferring investment projects, capital, or assets; and rights to buy shares or capital contributions.

The draft introduces important changes compared with existing rules. For equitisation, it mandates full and current valuation of land-use and leasehold rights. It also strengthens decentralisation with each administrative level will have authority to make restructuring decisions for enterprises under its management.

Under the proposed scheme, the Prime Minister will decide on equitisation, divestment, reorganisation and transfer of State ownership representation for eight designated groups and corporations: PVN, EVN, VNPT, TKV, Viettel, Vinachem, Vietnam Railways Corporation and SCIC. Ownership agencies would decide for first-tier enterprises, and first-tier enterprises for lower tiers.

Other restructuring forms are also addressed in detail: merging lower-tier enterprises upward, transferring capital and projects among enterprises, or exercising rights to purchase shares. For each, the draft specifies authority, procedures and financial safeguards.

The draft further spells out dissolution rules for fully State-owned agricultural and forestry firms, principles for divesting State capital in joint stock or multi-member entities, and criteria for classifying SOEs and foreign-invested firms.

During the meeting, representatives from the Government Office, Ministry of Justice, State Audit, Ministry of Construction, Ministry of National Defence, State Bank, Government Inspectorate, Ministry of Public Security, Ministry of Natural Resources and Environment, Hà Nội and HCM City governments, and enterprises such as Vietnam Rubber Group, Viettel, HUD, SCIC, EVN, PVN, VNPT, and Agribank offered comments.

Topics raised included: post-equitisation land assets and area transfers, eligibility for equitisation, mergers, divestment, corporate rights and responsibilities, accountability, decentralisation under Law 68, revitalising loss-making firms, valuation methods (including intangible assets), consultant liability, managing State capital in joint ventures and financial treatment during dissolution.

After reviewing the submissions, Deputy Prime Minister Hồ Đức Phớc directed the Ministry of Finance to clearly argue the rationale for the Prime Minister’s role in decisions involving the eight major groups, while leaving other approvals to respective managing agencies. He emphasised that land-related and conversion issues must adhere strictly to the Land Law, with no space for speculative appropriation or undervaluation.

“Equitisation is not about selling land; it’s about bolstering enterprise capacity for stronger, sustainable economic development,” Deputy Prime Minister Hồ said.

On valuation, the Deputy PM insisted that agencies selecting valuation firms must be held accountable, and valuation firms must justify their method choices.

“Methods must favour the State, and any loss must incur clear responsibility,” he said.

He also addressed support for dissolved enterprises and rules for recovering assets from joint ventures.

The Deputy PM urged the Ministry of Finance to gather all input, revise the draft for clarity and transparency and submit it for Government approval under its authority. 

Bizhub