Hanoi (VNS/VNA) - State-owned enterprises (SOEs) are now permitted to invest in real estate, decide their own salary and bonus policies and manage asset transactions, as clarified by the Law on Management and Investment of State Capital in Enterprises, effective August 1.
According to the 2025 law passed by the National Assembly, SOEs are allowed to conduct business activities in line with legal regulations and the State's directives as the owner, which are outlined in the company's charter and development strategy.
In addition to the removal of restrictions on real estate investment, this law also allows SOEs to purchase securities in accordance with securities law.
Furthermore, these enterprises have the right to lease, rent out, hire-purchase, mortgage, pledge and buy fixed assets.
They can also proactively sell fixed assets that are damaged, technically outdated, no longer needed, unusable or inefficient.
The law also introduces a new mechanism for salaries and bonuses. The Government will only regulate the salary, remuneration and bonuses of the owners' representatives and the controllers at State-owned enterprises.
Bonuses for employees, direct owner representatives and controllers will be drawn from after-tax profits.
Regarding the distribution of after-tax profits, the new law adds a provision that after fulfilling all legal obligations, enterprises can allocate up to 50% of a development investment fund. This fund is intended for expanding the company’s production and business operations.
SOEs can set aside up to three months' worth of salaries to establish a commendation and welfare fund, based on their performance and classification.
💖 The law also adds new regulations on capital sources for investment, which include the State budget, public assets, the development investment fund, the charter capital reserve fund, after-tax profits retained to increase charter capital, stock dividends and share capital surplus./.
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