VNBusinessNews – State-run enterprises must preserve their state capital in compliance with laws governing the use and management of funds and assets and benefit distribution, according to a new government decree.

The legal document was issued on Feb. 5 by the Prime Minister to regulate financial management in State-run enterprises and to ensure the effective management of State capital invested in other businesses.

The decree states that, regarding external investment activities, state-run companies must ensure at least 70% of their total investment capital is invested in businesses operating in the same field, and their total external investment capital, whether long-term or short-term, may not exceed their charter capital.

However, regarding investment in the banking, insurance and securities sectors, a state-run company may not invest in more than one enterprise in each field, and its investment capital may not exceed 20% of its charter capital and 30% of the charter capital of the organisation it invests in.

Exceptional cases must be submitted to the Prime Minister for approval. (VNA)