SOEs Suffer 2 Consecutive Years of Loss to Be Changed Ownership or Let Bankruptcy: Finance minister

30-May-2012 Intellasia | MoF | 7:01 AM Print This Post

Under the new regulations, Vietnam’s State owned enterprises (SOEs) which suffer 2 straight years of loss will be applied special solutions such as restructuring, ownership change or bankruptcy application.

Vuong Dinh Hue, the minister of Finance (MoF) said, adding that under the new regulations, SOEs must publicise finance statement as public companies.

The new regulations specify 2 contents: finance monitoring and operation effectiveness evaluating to 100 percent SOEs, enterprises which the government hold majority of stake and enterprises have State investment.

The new regulations not only rank SOEs into A, B, C levels, calculating profit distribution, calculating policy to members and board of management but also measuring business reality and finance risk.

New regulations have special provisions for monitoring the loss business. Special sanctions will be applied to business owners and businesses following the law for Officers and Civil from reprimand, warning to dismissal, demotion, not only for business leaders, operating managers but also representatives.

Businesses in the following list will be placed in the financial supervision:

1. Businesses suffers losses and their the debt/equity ratio exceed prescribed safe level.

2. Businesses have arising losses higher than 30 percent of equity or accumulated losses exceeds 50 percent equity.

3. Businesses have overdue solvency coefficient less than 0.5, businesses report wrong financial situation and wrong profits, losses.

 


Category: Legal

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