Is state capital invested in enterprises only taken from the state budget? If not, what sources are there?

What sources of state capital at enterprises include?

According to Clause 8, Article 3 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises 2014, state capital at enterprises is regulated as follows:

State capital at enterprises includes capital from the state budget, received capital originating from the state budget; capital from development investment funds at enterprises, enterprise arrangement support funds; Credit capital guaranteed by the Government, development investment credit capital of the State and other capital invested by the State in enterprises.

Thus, state capital in enterprises not only includes capital from the state budget but also receives capital originating from the state budget; capital from development investment funds at enterprises, enterprise arrangement support funds…

What principles must be followed when investing state capital in enterprises?

According to Article 5 of the Law on Management and Use of State Capital Investment in Production and Business at Enterprises 2014, amended by Clause 1, Article 22 of the Law Amending and Supplementing a Number of Articles of 37 Laws related to 2018 Planning, the principles of investment, management, and use of State capital at Enterprises are prescribed as follows:

1. Comply with legal regulations on investment, management, and use of state capital at enterprises.2. Consistent with strategies, socio-economic development plans, and national sector planning3. Invest state capital to form and maintain enterprises at key stages and stages in a number of industries and fields in which other economic sectors do not participate or where the State holds 100% of charter capital, maintaining the ratio of shares and contributed capital as prescribed in Article 10 and Article 16 of this Law.

4. The owner’s representative agency and state management agency do not directly intervene in the production and business activities of the enterprise, or the management and operation activities of the enterprise manager.

5. Management of state capital invested in enterprises must be through the direct owner representative or representative of state capital; ensure that enterprises produce and do business according to market mechanisms, equality, cooperation and competition according to the law.

6. The owner’s representative agency, direct owner’s representative, and state capital representative are responsible for managing and using state capital in the enterprise, ensuring efficiency, preserving and increasing the value of state capital invested in the enterprise; Prevent and combat spread, waste, and loss of capital and assets of the State and businesses.

7. Publicity and transparency in investment, management, and use of state capital at enterprises.

8. In accordance with international treaties to which the Socialist Republic of Vietnam is a member.

In what forms does the state invest capital in enterprises?

According to Article 6 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises 2014, the forms of state capital investment in enterprises include includes:

1. Investing state capital to establish an enterprise with 100% charter capital held by the State.

2. Investing in additional charter capital for enterprises in which 100% of the charter capital is currently held by the State.

3. Invest additional state capital to continue to maintain the ratio of shares and capital contribution of the State in joint stock companies and limited liability companies with two or more members.

4. Investing state capital to buy back part or all of an enterprise.

How is the representation of state ownership at an enterprise regulated? What content does state management of investment, management, and use of state capital at enterprises include?

According to Article 7 of the Law on Management and Use of State Capital Investment in Production and Business at Enterprises 2014, the representative of the state owner is regulated as follows:

1. The Government agrees to exercise the rights and responsibilities of the representative of the state owner in investing state capital in enterprises and managing state capital in enterprises according to the provisions of Article 40 of this Law.

2. The Prime Minister and the owner’s representative agency shall exercise the rights and responsibilities of the state owner’s representative for the enterprises they decide to establish or are assigned to manage and exercise the rights and responsibilities of the state owner’s representative for the state capital invested in joint stock companies and limited liability companies with two or more members according to the provisions of Articles 41, 42 and 43 of this Law and other relevant laws. quan.

3. The owner’s representative directly exercises the rights and responsibilities of the state owner’s representative at the enterprise according to the provisions of Article 44 of this Law and other relevant laws.

According to Article 8 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises 2014, the content of state management on investment, management, and use of state capital at enterprises includes:

1. Promulgate and organize the implementation of legal documents on investment, management and use of state capital at enterprises.

2. Develop investment strategies for enterprise development according to strategies, socio-economic development plans, and industry development plans.

3. Build and store basic information about the business; Monitor and supervise business activities.

4. Promulgate lists, financial management methods, and preferential policies for public products and services in each period.

5. Supervise, check and inspect the implementation of State policies and laws at enterprises; resolve complaints and denunciations; reward and handle violations.