"Beginning August 1, state-controlled companies will be allowed to purchase property and stocks"
State-owned enterprises (SOEs) in Vietnam are set to experience a significant shift in operations, thanks to the recent passage of the Law on Management and Investment of State Capital in Enterprises (Law 68/2025/QH15). Effective from August 1, 2025, this law empowers SOEs to manage investments in real estate, set their own salary and bonus policies, and control asset transactions independently [1][4][5].
Under the new law, SOEs are granted the following rights:
- Investment in Real Estate: SOEs can now invest in real estate projects, giving them the opportunity to expand their business operations and increase their profitability [1].
- Decision-making Power over Salaries and Bonuses: SOEs are now allowed to decide their own salary structures and bonus schemes internally, without the need for prior approval [1].
- Autonomous Asset Transactions: SOEs can handle asset transactions, such as transfers or disposals, autonomously, providing them with greater flexibility in managing their resources [1].
The law is designed to improve the efficiency and corporate governance of SOEs by granting them greater business operational freedoms, while still maintaining state capital management oversight [1]. It includes mechanisms for supervision, evaluation, and increased transparency, with SOE performance assessed through specific indicators such as investment effectiveness and fiscal contributions [1].
This regulatory change reflects Vietnam’s broader strategy to enhance state capital management and promote SOE reform by increasing their operational independence while maintaining required financial and legal accountability [1][4][5].
In addition, SOEs are now permitted to:
- Conduct business activities as outlined in the company's charter and development strategy.
- Manage asset transactions.
- Purchase securities in accordance with securities law.
Moreover, bonuses for employees, direct owner representatives, and controllers will be drawn from after-tax profits [1].
The government will only regulate the salary, remuneration, and bonuses of the owners' representatives and the controllers at State-owned enterprises [1]. This move is expected to foster a more competitive and dynamic business environment within Vietnam's SOEs.
[1] Source: Vietnam News Agency [4] Source: Vietnam Chamber of Commerce and Industry [5] Source: Vietnam Investment Review
- The new law allows State-owned enterprises (SOEs) in Vietnam to invest in real estate, which could potentially lead to an expansion of their operations and increased profitability.
- Under the law, SOEs have the autonomy to decide on their own salary structures and bonus schemes internally, demonstrating an increased level of independence in their operations.
- Additionally, SOEs are now authorized to manage asset transactions, such as transfers or disposals, independently, providing them with greater flexibility in resource management.
