Two new points in PM Decision on SOE management

The Prime Minister has issued Decision No. 22/2021/QD-TTg on allowing flexibility in the innovative re-organization of State-owned enterprises (SOEs). The Decision contains two new points. Firstly, it provides criteria for the classification of SOEs, and changes in the rate of charter capital held by the State, in which some important industries will see 100 per cent held by the State, such as high-tech applications, major investments, the field of prospecting, exploration, and development, and oil and gas exploitation. Secondly, the parent company, the representative of State capital, and the owner’s representative agency will be able to proactively classify SOEs according to announced criteria, and at the same time develop a restructuring plan based on an evaluation of business performance.