PM issues Decree banning State investments in banking and finance, securities, and real estate.
From December 1 State-owned enterprises (SOEs) are prohibited from investing in real estate, banking and finance, and securities, except for special cases permitted by the government and enterprises whose main business activities are in these fields, under Decree No. 91/2015 on State investment, management, and capital and asset use signed by Prime Minister Nguyen Tan Dung.
SOEs have the right to use capital for non-core investments, including foreign investment, but must strictly adhere to government regulations, which include not investing in real estate, banking and finance, or securities.
If SOEs invest in these fields without the Prime Minister’s permission they will be forced to exit from such investments.
Enterprises are responsible for preserving and developing State capital, and any increase or decline must be fully reported.
Under a government policy now in place for many years, SOEs have to divest all capital in sensitive sectors such as banking and finance, securities, and real estate by the end of this year.
The process, however, is yet to be completed. The total value of divestments as at August stood at VND13.7 trillion ($616.5 million).