Prime Minister Nguyen Tan Dung has signed Decree128/2014/ND-CP regulating the sale of wholly State-owned enterprises (SOEs).

According to the decree, the price of a sale will be defined in accordance with the method of selling (auction or direct sale), payment method, registered price and the number of employees that the buyer will continue to hire, with the price being no less than the reference price.

In the event that two buyers seek to purchase a SOE, the company will be sold through auction with a commitment to handle labour issues. If there is only one buyer, the method chosen will be direct negotiation.

The proceeds from the sale will be contributed, in part, to the State budget, with the amount being equivalent to the value of the land use rights. The remaining money will pay for the costs of preparations of the sale, resolving debts that the buyers do not inherit and implementing policies for employees.

Other destinations for money received from the sale include corporate arrangement support funds.

The decree will take effect in March and is designed for the purpose of moving forward with the process of restructuring and equitising SOEs based upon Government guidelines.-VNA