What conditions do state-owned enterprises that want to be equitized need to meet?

Legal Consulting Office of Lao Dong Newspaper answers:

Article 6 of Decree 57/2026/ND-CP on restructuring state capital in enterprises (effective from February 13, 2026) stipulates the conditions for equitization as follows:

1. Enterprises specified in Article 5 of this Decree shall carry out equitization when ensuring the following conditions:

a) Not belonging to the category where the State needs to hold 100% of charter capital;

b) After financial handling and determination of enterprise value according to the provisions of Section 2 and Section 3 of Chapter II of this Decree, the actual value of the enterprise is equal to or greater than the payables.

2. For enterprises after being financially handled and enterprise value re-determined according to the provisions of Section 2 and Section 3 of Chapter II of this Decree, if the actual enterprise value is lower than the payables, the agency representing the owner shall direct the enterprise to continue to coordinate with the Vietnam Debt and Asset Trading Company and the enterprise's creditors to develop a plan for buying and selling, handling debt for enterprise restructuring so that the enterprise is eligible for equitization. In case the plan for buying and selling, handling debt for enterprise restructuring is not feasible, it shall be switched to other forms of conversion according to the provisions of law.

Article 5 of Decree 57/2026/ND-CP stipulates:

1. Equitization of enterprises with 100% state-owned charter capital must be associated with the goal of enhancing business efficiency and production and business capacity, and enterprise competitiveness.

2. Equitized enterprises are level I enterprises converted into joint-stock companies, including:

a) Parent company of economic groups, Parent company of state-owned general corporations;

b) Parent company in the group of parent company - subsidiary company;

c) Independent one-member limited liability companies with 100% charter capital held by the State.

Thus, from February 13, 2026, state-owned enterprises wishing to be equitized need to meet the above conditions.