Circular No. 41/2018/TT-BTC guiding certain contents on financial settlement and determination of enterprise value when transferring state-owned enterprises and wholly-owned limited liability companies invested with 100% state capital to joint-stock companies.

CIRCULAR

Guidelines on certain contents regarding financial handling and determining enterprise value when converting state-owned enterprises and wholly-owned limited liability companies invested with 100% state capital into joint-stock companies

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Pursuant to the Enterprise Law No. 68/2014/QH13 dated November 26, 2014;

Pursuant to the Law on Management and Use of State Capital for Production and Business at Enterprises No. 69/2014/QH13 dated November 26, 2014;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to the Government Decree No. 126/2017/NĐ-CP dated November 16, 2017 on converting state-owned enterprises and wholly-owned limited liability companies invested with 100% state capital into joint-stock companies;

The Minister of Finance hereby issues this Circular amending and supplementing certain Articles of Circular No. 133/2015/TT-BTC dated August 31, 2015, issued by the Minister of Finance guiding the financial management mechanism for the Vietnam Chamber of Commerce and Industry (hereinafter referred to as Circular No. 133/2015/TT-BTC).

The Minister of Finance issues this Circular guiding certain contents regarding financial handling and determining enterprise value when converting state-owned enterprises and wholly-owned limited liability companies invested with 100% state capital into joint-stock companies,

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

2. Applicability:

This Circular guides certain contents regarding financial handling and determining enterprise value when implementing the conversion of state-owned enterprises and wholly-owned limited liability companies invested with 100% state capital into joint-stock companies as prescribed in Government Decree No. 126/2017/NĐ-CP dated November 16, 2017 on converting state-owned enterprises and wholly-owned limited liability companies invested with 100% state capital into joint-stock companies (hereinafter referred to as Decree No. 126/2017/NĐ-CP).

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

a) Enterprises specified in Clause 2 and Clause 3 Article 2 of Decree No. 126/2017/NĐ-CP (hereinafter referred to as enterprises undergoing shareholding reform).

b) Authorities representing the owner and other relevant agencies, organizations, and individuals specified in Clause 1 and Clause 4, Article 2 of Decree No. 126/2017/NĐ-CP.

Article 2. Certain principles on financial handling and determining enterprise value when implementing shareholding reform

1. Based on the list of enterprises undergoing shareholding reform approved by the competent authority, enterprises must proactively handle financial issues according to current regulations; simultaneously, they must develop and submit to the competent authority for approval plans for land use in accordance with laws on land and laws on reorganization and disposal of state-owned real estate before the decision on shareholding reform.

2. Upon receiving the shareholding reform decision from the competent authority, enterprises must organize asset inventory, classification of assets and capital, and handle financial issues at the time of determining enterprise value according to Article 13 of Decree No. 126/2017/NĐ-CP and the contents guided in Sections I and II Chapter 2 of this Circular as the basis for preparing financial statements at the time of determining enterprise value and at the time of the shareholding reform enterprise transitioning to a joint-stock company.

3. In cases where the actual enterprise value is lower than liabilities after financial handling and reassessment of enterprise value according to the provisions, it shall be handled according to Clause 2 Article 4 of Decree No. 126/2017/NĐ-CP.

4. During the process of financial handling and determining enterprise value in shareholding reform, strictness, transparency, and compliance with state regulations must be ensured. Organizations and individuals involved in financial handling and determining enterprise value who fail to comply with the prescribed regime, causing loss or misappropriation of state assets, shall bear administrative responsibility, compensate material losses, or be criminally prosecuted according to the law.

5. In cases where asset declarations are found to be incomplete or missing during asset inventory and confirmation of receivables and payables leading to a reduction in enterprise value and state capital in shareholding reform enterprises due to subjective reasons, the shareholding reform enterprises and related organizations and individuals must fully compensate and deposit the value of the missing or omitted assets and receivables into the Enterprise Restructuring and Development Support Fund; in cases of intentional omission, they will be held responsible according to the law. For omitted tax payments, they must declare and pay them into the state budget according to the law.

6. The representative body of the owner is responsible for resolving financial issues during the shareholding reform process according to Decree No. 126/2017/NĐ-CP and any newly arising financial issues related to the shareholding reform process after the shareholding reform enterprise officially transitions to a joint-stock company.

7. Monetary items denominated in foreign currency at the time of determining enterprise value and at the time the shareholding reform enterprise officially transitions to a joint-stock company (including cash and equivalents, receivables, payables, deposits, pledges, and guarantees) shall be revalued according to the exchange rate stipulated in the current enterprise accounting system.

8. At the time the shareholding reform enterprise receives its first business registration certificate as a joint-stock company, it must prepare financial statements and handle financial issues according to Article 21 of Decree No. 126/2017/NĐ-CP.

If the competent authority has decided to reduce state capital at the time the shareholding reform enterprise receives its business registration certificate corresponding to the incurred losses as stipulated in Clause 7 Article 21 of Decree No. 126/2017/NĐ-CP, the joint-stock company may not carry forward these losses to determine taxable income in subsequent years according to the Corporate Income Tax Law and related guiding documents.

Consulting organizations determining enterprise value must assess enterprise value according to the asset method prescribed in Section 2 Chapter III of Decree No. 126/2017/NĐ-CP dated November 16, 2017, and detailed guidance in this Circular; they may also choose additional appropriate valuation methods according to laws on pricing and valuation to ensure that each shareholding reform enterprise is assessed using at least two different valuation methods, which are then submitted to the representative body of the owner for review and decision.

Chapter II

FINANCIAL HANDLING DURING SHAREHOLDING REFORM AND DETERMINATION OF ENTERPRISE VALUE BY ASSET METHOD

PART I

ASSET INVENTORY AND DEBT RECONCILIATION

Article 3. Inventory and Classification of Assets

1. The enterprise undergoing corporatization shall be responsible for inventorying and classifying assets, sources of capital, and funds under its management and use at the time of determining the value of the enterprise; cooperate with the consulting organization (if any) to conduct the inventory and classification of assets.

2. At the time of determining the enterprise's value, the enterprise must prepare an inventory list accurately stating the quantity, actual condition, quality, and value of existing assets managed and used by the enterprise; check cash balances, reconcile bank deposit balances; identify excess or shortage of assets and cash compared to accounting records, clearly analyze the reasons for excess or shortage and the responsibility of those involved, and determine compensation levels according to the law.

3. Inventoried assets are classified into the following groups:

a) Assets used in production and business activities.

b) Unused assets, stagnant assets, slow-turning assets, assets awaiting liquidation.

c) Assets formed from reward funds and welfare funds (if any).

d) Leased, borrowed assets, goods and materials held in custody, processed on behalf of others, agency-held assets, consigned assets, joint venture investment assets, associated investment assets, and other assets not belonging to the enterprise.

đ) Assets attached to land that must be handled according to the restructuring and disposal plan for premises and land of the relevant authority in accordance with the law on the restructuring and disposal of state-owned real estate.

e) Assets of public service units with revenue (real estate of public service units according to the law on the restructuring and disposal of state-owned real estate), assets used for public services.

g) Assets awaiting decisions on handling by competent authorities.

h) Financial investments (joint ventures, establishment of limited liability companies, other investment activities) valued at the value of land use rights.

i) Other assets (if any).

Article 4. Matching, Confirming and Classifying Accounts Receivable and Payable

The enterprise undergoing corporatization shall reconcile, confirm, and classify receivables and payables according to Articles 15 and 16 of Decree No. 126/2017/ND-CP, prepare detailed lists for each debtor and creditor at the time of determining the enterprise's value, and follow the specific guidance below:

1. Accounts Receivable:

a) Reconcile and confirm receivables for each debtor, including:

- All receivables due, overdue, and past due; for commercial banks, also reconcile and confirm off-balance sheet receivables.

- Clearly analyze difficult-to-collect receivables as receivables past due according to contracts and receivables not yet due but where economic organizations (companies, private enterprises, cooperatives, financial institutions) have entered bankruptcy proceedings or are in the process of dissolution, or where the debtor is an individual who has disappeared, fled, is being prosecuted, detained, tried, or has died. Determine the responsibility of related organizations and individuals for receivables where the obligor cannot be identified.

Non-recoverable receivables must have sufficient documentation proving they cannot be recovered according to Clause 3, Article 7 of this Circular.

b) Review contracts to identify prepayments made to suppliers that have been fully recorded as business expenses such as rent, land lease payments, purchase payments, long-term insurance payments, salaries, wages...

c) In cases where, at the time of determining the value of the corporatized enterprise, there are still some receivables with complete documentation but not yet reconciled and confirmed, the corporatized enterprise shall report to the competent authority for consideration and decision-making according to Clause 2, Article 15 of Decree No. 126/2017/ND-CP.

2. Payables to organizations and individuals (including payable debts due, not due, and overdue) at the time of determining the enterprise's value:

a) Based on contracts, debt notices, and debt reconciliation, prepare a detailed list of loans owed to each creditor; determine tax debts and other payments to the state budget; specifically analyze loan debts according to contracts (domestic loans, foreign loans), guaranteed loans, bond issuance loans; payable debts within term, due, and overdue; principal, interest, and non-payable debts.

b) Non-payable debts are debts where the creditor of the corporatized enterprise, upon reconciliation and confirmation of debts, falls into one of the following situations:

- Debts of enterprises that have been dissolved or declared bankrupt but no successor entity or individual has been determined according to the approved dissolution or bankruptcy plan by the competent authority.

- Debts of individuals who have died but no heir has been determined according to the law on inheritance.

- Debts of other creditors that are overdue but the creditor has not come to reconcile and confirm. In this case, the corporatized enterprise must send a direct notification letter to the creditor and simultaneously announce it through mass media at least 10 working days before the time of determining the enterprise's value.

Article 5. Verification and confirmation of financial investments; shares received; capital contributions received

1. The enterprise undergoing shareholding transformation shall prepare a detailed list to verify and confirm financial investments, profit shares of the enterprise including: joint venture and associated investment contributions with other enterprises and organizations; share capital contributions for establishing limited liability companies; capital investment for establishing a single-member limited liability company owned by the enterprise undergoing shareholding transformation; profits from investment contributions (which have been approved by the Shareholders' Meeting Resolution or the Board of Directors Resolution at the receiving entity) but have not yet been actually received up to the valuation date of the enterprise.

2. Determine the quantity and value of various securities (stocks, bonds, etc.) purchased; the number of stocks distributed to the enterprise undergoing shareholding transformation.

3. For joint venture and associated capital contributions received, the enterprise undergoing shareholding transformation shall base on the joint venture and association contracts to prepare a detailed list according to each partner who has contributed capital to the enterprise undergoing shareholding transformation and notify the contributing partners to be aware so that they can jointly continue the inherited contracts previously signed or liquidate the contracts with the successor company.

Article 6. Inventory, verification, confirmation, and classification of assets and debts when transforming state-owned commercial banks into shareholding banks

The inventory, evaluation, and classification of monetary assets, financial lease assets, and bank debts of state commercial banks shall be carried out in accordance with the provisions of Articles 3, 4, and 5 of this Circular and the following specific guidance:

1. Inventory and verification of customer deposits, deposit certificates (bills, promissory notes, bonds) as follows:

a) Detail each item on the accounting books.

b) Verify and confirm the balance of deposits of corporate customers.

c) Savings deposits, individual deposits, and deposit certificates must be verified against the accounting records kept at the bank and directly verified with the customers. In cases where it is not possible to verify all customers, the provisions of Clause 1, Article 16 of Decree No. 126/2017/ND-CP shall apply.

2. Verification of credit assets (including off-balance sheet items) as follows:

a) Based on the credit files of each customer at the commercial bank to compile a list of customers still having credit balances and the credit balance of each customer, detailed according to each credit contract.

b) Compare the data determined from the credit files with the accounting records of the commercial bank; compare the credit balance with each customer to obtain confirmation from the customer regarding the credit balance.

For individual customers, if it is not possible to verify with the customer, the commercial bank must verify against the accounting records kept at the bank.

c) In case there is a discrepancy between the credit file data and the accounting records and customer confirmation, the commercial bank must clarify the reasons for the discrepancy and determine the responsibility of the relevant organizations and individuals to handle according to current regulations of the State.

3. Classify overdue receivables that meet the conditions for risk reserve utilization as stipulated by the State Bank of Vietnam.

4. For financial lease assets: reconciliation must be conducted with each customer, clearly determining the remaining debt of each financial lease asset.

PART II

FINANCIAL HANDLING AT THE TIME OF DETERMINING ENTERPRISE VALUE AND AT THE TIME OF TRANSITION TO A JOINT STOCK COMPANY

Article 7. Financial handling at the time of determining enterprise value

1. Enterprises shall implement financial handling at the time of determining enterprise value (before organizing consulting to determine enterprise value) in accordance with the provisions from Article 14 to Article 20 of Decree No. 126/2017/ND-CP and the specific guidance in Clauses 2, 3, and 4 of this Article.

2. Based on the results of inventory verification and asset classification: for excess or missing assets, the enterprise must analyze and clarify the causes and handle them as follows:

a) Missing assets must be identified to determine the responsibility of organizations and individuals to compensate material losses according to current regulations; the value of missing assets, after deducting the compensation amount from organizations and individuals (if any), shall be recorded in the business results when preparing the financial statements at the time of determining enterprise value.

b) Excess assets must be clearly identified to determine the cause and responsibility of organizations and individuals to handle according to current regulations; the value of excess assets that do not need to be repaid shall be recorded in the business results when preparing the financial statements at the time of determining enterprise value.

3. Receivables (excluding credit balances of state commercial banks undergoing shareholding transformation) shall be determined as uncollectible receivables to be excluded from the enterprise value if sufficient evidence is provided, specifically as follows:

a) Accounting books, vouchers, and documents proving the unrecovered debt up to the time of debt handling, which are recorded as receivables on the enterprise's accounting books such as economic contracts; loan agreements; debt commitments; contract termination statements (if any); account reconciliation (if any); request for account reconciliation letters or debt collection letters sent by the enterprise (with postal stamps or confirmation from the delivery unit); account reconciliation lists and other related vouchers.

b) In the case of economic organizations:

- The debtor has declared bankruptcy: there is a court decision declaring bankruptcy of the enterprise according to the Bankruptcy Law.

- The debtor has ceased operations, dissolved, or absconded: there is confirmation from the authority responsible for establishing the enterprise or the registration agency or the direct tax management authority about the enterprise or organization ceasing operations, dissolving, or absconding; or the debt has been initiated by the enterprise or organization in court proceedings according to the law, with court judgments and confirmation from the enforcement agency that the debtor does not have assets or the asset value is insufficient to enforce the judgment.

- For receivables but the debtor has been decided by the competent authority to write off the debt according to the law; the loss difference is decided by the competent authority to sell the debt.

c) In the case of individuals:

- Death certificate (certified copy or copied from the original) or confirmation from local authorities for deceased debtors.

- Warrant for arrest or confirmation from law enforcement agencies for debtors who have absconded or are under prosecution or serving a sentence.

- Confirmation from local authorities for debtors declared missing according to the Civil Code.

d) Receivables where the estimated cost of recovering the debt exceeds the value of the receivable, approved and accepted responsibility by the owner's representative authority according to the law.

4. The enterprise undergoing shareholding reform shall not adjust the figures in the accounting books established at the time of determining the enterprise's value when handling financial matters as prescribed in Clauses 1, 4, and 5 of Article 17 of Decree No. 126/2017/ND-CP. These financial handling contents are only used to determine the actual value of the state capital portion in the enterprise serving as the basis for setting the initial price according to the provisions of Article 24 of Decree No. 126/2017/ND-CP.

Article 8. Financial handling at the point when the enterprise undergoing shareholding reform officially becomes a joint-stock company

1. The excess or deficiency in asset value compared to the value of the enterprise undergoing shareholding reform (book value) which has been decided and announced by the representative body of the owner shall be handled according to the provisions of Clause 4 of Article 10 of Decree No. 126/2017/ND-CP.

2. Debts and receivables at the time when the enterprise undergoes shareholding reform and receives its first business registration certificate for a joint-stock company shall be handled according to the provisions of Articles 15 and 16 of Decree No. 126/2017/ND-CP.

3. Any bonus fund or welfare fund generated from the time of determining the enterprise's value until the time the enterprise receives its first business registration certificate for a joint-stock company shall be managed and disbursed according to regulations. The remaining balance (if any) shall be inherited and continued to be used by the newly formed joint-stock company.

Article 9. Handover between the enterprise undergoing shareholding reform and the joint-stock company

1. Based on the decision approving the financial settlement report; the settlement of funds received from shareholding reform; the settlement of shareholding reform costs; the settlement of support expenses for redundant employees (if any); the announcement of the actual value of the state capital portion at the time the enterprise officially becomes a joint-stock company by the representative body of the owner; and the financial statements re-prepared according to the results of financial handling at the time of officially becoming a joint-stock company, the enterprise shall prepare the necessary documents and organize the handover to the joint-stock company.

2. Within thirty days from the date the enterprise completes the preparation of the financial statements according to Clause 5 of Article 21 of Decree No. 126/2017/ND-CP, the Steering Committee and the Working Group shall coordinate to urge and monitor the handover process between the enterprise undergoing shareholding reform and the joint-stock company. The handover must be recorded in a protocol accompanied by all relevant documents related to the shareholding reform process under the witness of the representative body of the owner. The handover protocol must clearly record the rights and obligations of the parties involved; the contents that need to be further processed after the handover (if any), specifically as follows:

a) The handover dossier from the joint-stock enterprise to the corporation includes:

- Documents determining the enterprise's value and the decision announcing the enterprise's value.

- Financial statements at the time of officially becoming a joint-stock company, audited and approved by the competent authority.

- Reports on the settlement of shareholding reform costs and amounts payable to the Enterprise Restructuring and Development Fund.

- Decision approving the value of the state capital portion at the time of becoming a joint-stock company by the competent authority.

- Protocol of asset and capital handover established at the time of receiving the first business registration certificate for a joint-stock company (including a detailed list of debts handed over for the joint-stock company to continue inheriting and any outstanding financial issues needing further processing - if any).

- Reports on labor conditions and land usage plans of the enterprise approved by the competent authority.

b) Handover participants include:

- Representative of the representative body of the owner.

- Representatives of State Economic Groups, State Corporations, Parent Companies (in the case of shareholding reform of member enterprises of State Economic Groups, State Corporations, subsidiaries), General Directors, Chief Accountants, Supervisors, and representatives of the enterprise's trade union - representing the handing-over party.

- Chairman of the Board of Directors, General Director, Chief Accountant, and representatives of the company's trade union - representing the receiving party.

- Representatives of the State Capital Investment Corporation for enterprises undergoing shareholding reform that are subject to transferring ownership representation rights of state capital to the State Capital Investment Corporation.

c) The handover protocol must contain signatures of all handover participants and must clearly record:

- The situation of assets, capital, and labor present at the time of handover.

- Rights and obligations that the corporation continues to inherit.

- Issues that the corporation is responsible for continuing to resolve.

3. Within sixty days from the date of signing the handover protocol, the joint-stock company must complete the relevant documents on assets and land and submit them to the competent authorities as prescribed to implement the transfer of management and use of assets from the enterprise undergoing shareholding reform to the joint-stock company; carry out land allocation, payment of land use fees, issuance or replacement of land use right certificates according to the provisions of the Land Law and guiding documents implementing the Land Law.

Section III

DETERMINATION OF ENTERPRISE VALUE

BY ASSET METHOD

Article 10. Determining the actual value of various types of assets of the enterprise

The determination of enterprise value by the asset method is carried out according to the provisions of Section 2 Chapter III of Decree No. 126/2017/ND-CP and the following specific guidance:

1. The actual value of each asset of the enterprise is determined in Vietnamese dong based on the list of assets recorded in the accounting books of the enterprise.

2. For tangible assets:

a) Only revalue those assets that the joint-stock company continues to use.

b) The actual value of the asset equals (=) the original cost calculated based on the market price at the time of determining the enterprise's value multiplied (x) by the remaining quality of the asset at the time of determining the enterprise's value.

Where:

- Market price is:

+ The market price of new assets of the same type currently being bought and sold on the market including transportation and installation costs (if any). If it is a special asset not available on the market, the purchase price of the asset is calculated based on the new purchase price of a similar asset, produced in the same country, with the same capacity or equivalent features. In cases where there is no similar asset, it is calculated based on the asset value recorded in the accounting books (including assets invested in or purchased with foreign currency).

+ For assets that are buildings or structures: The market price is the basic construction unit price or investment rate prescribed by the competent authority at the nearest time to the time of determining the enterprise's value. In cases where there is no such regulation, it is calculated based on the book value, taking into account the inflation factor in basic construction.

For assets that are houses and new architectural structures completed within three (03) years prior to the time point for determining the enterprise value, the settled construction project value approved by the competent authority shall be used. In exceptional cases where the construction project has not been approved by the competent authority but has already been put into use, it shall be temporarily calculated based on the value recorded in the accounting books.

- The remaining quality of the asset is determined as a percentage compared to the quality of newly purchased or newly constructed similar assets, in accordance with state regulations on safety conditions for use and operation of assets; ensuring product quality; environmental hygiene according to the guidelines of the relevant economic and technical ministries. If there are no state regulations, the asset's quality shall be determined as follows:

+ For assets such as machinery and equipment; transportation means, transmission devices; management tools and other fixed assets, they shall be reassessed based on actual conditions but not less than twenty percent (20%) of the quality of newly purchased similar assets;

+ For assets such as houses and architectural structures, they shall not be less than thirty percent (30%) of the quality of newly constructed similar assets.

c) Fixed assets that have been fully depreciated to recover capital; labor tools and management tools that have been fully allocated to business costs but continue to be used by the joint-stock company must be reassessed at no less than twenty percent (20%) of the value of newly purchased assets, tools, and equipment.

d) For joint-stock enterprises undergoing privatization with tangible assets being planted forests and orchards, when determining the enterprise value for privatization, the value of planted forests and orchards shall be determined according to the provisions of Circular Joint Circular No. 17/2015/TTLT-BNNPTNT-BTC dated April 22, 2015 issued by the Ministry of Agriculture and Rural Development and the Ministry of Finance, and any subsequent amendments or replacements (if applicable).

đ) For assets formed under BOT contracts, industrial infrastructure, the value is determined in accordance with Clause 6, Clause 7 of Article 27 of Decree No. 126/2017/ND-CP.

e) Assets formed from state budget investment funds serving public welfare activities managed, operated, and utilized by the enterprise shall not be included in the enterprise value when privatizing.

3. Monetary assets including cash, deposits, and securities (bills, bonds, etc.) of the enterprise shall be determined as follows:

a) Cash on hand is determined based on the inventory reconciliation report.

b) Deposits are determined based on the confirmed balance with the bank where the enterprise maintains its account.

c) Securities shall be determined based on market transaction prices. If there are no transactions, they shall be determined based on their face value.

4. Accounts receivable included in the enterprise value shall be determined based on the actual balance on the accounting books after reconciliation and processing as stipulated in Article 15 of Decree No. 126/2017/NĐ-CP.

5. Uncompleted production and business expenses, basic construction investment expenses, and compensation, resettlement, and land leveling expenses shall be determined based on the actual occurrences recorded in the accounting books.

6. The value of collateral and short-term and long-term deposits is determined based on the actual balance in the accounting books after confirmation.

Article 11. Enterprise Value for Privatization Based on Asset Method

1. The total actual value of the enterprise for privatization based on the asset method shall be determined according to the provisions of Clause 1 of Article 27 of Decree No. 126/2017/NĐ-CP (excluding the balance of exchange rate differences arising from revaluation of monetary items denominated in foreign currencies) and the specific guidance provided in this Article 11 of this Circular.

2. The actual value of state capital in the enterprise for privatization shall be determined by subtracting the actual accounts payable (excluding the balance of exchange rate differences arising from revaluation of monetary items denominated in foreign currencies) and subtracting the balance of operating funds (if any) from the total actual value of the enterprise for privatization as specified in Clause 1 above.

Chapter III

ANNOUNCEMENT OF INFORMATION AND IMPLEMENTATION PROVISIONS

Article 12. Disclosure of Information

Joint-stock enterprises undergoing privatization must publicly disclose information about the privatization process of the enterprise according to the provisions of Clause 1 of Article 11 of Decree No. 126/2017/NĐ-CP and the following specific guidance:

1. Within ten working days from the date of receipt of decisions and documents from the competent authorities regarding financial issues, labor, land related to the privatization process and the provisions of Clause 1 of Article 11 of Decree No. 126/2017/NĐ-CP, the joint-stock enterprise must publicly disclose information on its website and send it to the Government Portal; simultaneously sending a written report to the Ministry of Finance and the Steering Committee for Enterprise Reform and Development.

2. On a regular basis before the fifth day of each month, the joint-stock enterprise is responsible for reporting on the situation and progress of implementing the privatization work according to the plan approved by the competent authority and publicly disclosing the information on its website; simultaneously sending reports to the owner representative agency, the Ministry of Finance, and the Steering Committee for Enterprise Reform and Development.

Article 13. Transitional Provisions

1. Enterprises that have announced the enterprise value but have not yet approved the privatization plan before January 1, 2018 (the effective date of Decree No. 126/2017/NĐ-CP) must adjust the book value of assets according to the announced enterprise value determination results and continue to implement privatization according to the provisions of Clause 1 of Article 48 of Decree No. 126/2017/NĐ-CP, except for some cases where the competent authority has decided not to adjust the book value of assets according to the announced enterprise value determination results.

2. Enterprises that are still in the process of determining the enterprise value but have not been officially announced by the competent authority by January 1, 2018, the owner representative agency shall handle according to the provisions of Clause 1 of Article 23 of Decree No. 126/2017/NĐ-CP.

3. For enterprises undergoing privatization that were first registered as joint-stock companies from January 1, 2018, the handling of financial issues at the time the enterprise officially becomes a joint-stock company shall be carried out according to the provisions of Decree No. 126/2017/NĐ-CP and the guidance provided in this Circular.

By the time the joint-stock company is issued its first Enterprise Registration Certificate for a joint-stock enterprise, based on the land use plan and the approved land price, the representative body of the owner shall direct the enterprise to pay into the State budget the entire difference between the temporarily calculated value of the land use right included in the enterprise's value and the newly determined land use right value by the competent authority (if applicable).

4. For enterprises that have had their enterprise value announced or have been approved for the privatization plan before January 1, 2018 but have not yet received approval for the land use plan from the competent authority, they must complete the approval of the land use plan prior to the issuance of the first business registration certificate for the joint-stock company according to the provisions of Government Decree No. 167/2017/ND-CP dated December 31, 2017 on the reorganization and handling of state assets and related guiding documents, amendments, and supplements (if any).

Article 14. Implementation clause

This Circular takes effect from June 18, 2018.

The contents stipulated in this Circular shall be applied from January 1, 2018.

2. This Circular replaces Circular No. 127/2014/TT-BTC dated September 5, 2014 of the Ministry of Finance guiding financial settlement and determination of enterprise value when converting a state-owned enterprise with 100% state capital into a joint-stock company.

3. In the course of implementation, if there are difficulties, agencies and enterprises are requested to promptly report to the Ministry of Finance for study and amendment./.