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Boosting the Development of Debt Trading Companies


equitization of state-owned enterprises in the past time. Therefore, in the coming time, it is recommended that the Government and the Ministry of Finance continue to implement solutions to promote the equitization of state-owned enterprises.

development of the market

stock market. Bring the market

Lao Stock Exchange

Maybe you are interested!

Not only has it become a major capital mobilization channel for the economy, but it is also a place to conduct auctions, valuations, and purchases and sales of all types of shares when equitizing state-owned enterprises in general and state-owned commercial banks in particular.

Implement the promulgation of regulations on market operations.

Boosting the Development of Debt Trading Companies

stock market according to market principles. Continue to bring

Many types of goods are stocks, bonds, investment fund certificates

to trade on the stock market. Allow joint stock commercial banks

shares are listed on the market if they meet the prescribed conditions. There must be a Vientiane Capital Securities Trading Center, Department

centralized securities trading, conducting transactions with markets

famous securities in the world, first of all the stock market

Singapore. In addition, the promotion of the stock market

Laos also needs to be focused on the world to attract more investment from foreign investors.

3.2.4.2. Real estate market development

Although the buying and selling of real estate assets, especially land use rights and housing, has been quite active in recent times, we still do not have an official, legal and properly operating real estate market. This not only causes the State to lose a significant amount of tax revenue for the budget but also causes prices to increase too high, not reflecting the true value of the assets. Therefore, the valuation of state-owned enterprises, especially the valuation of land use rights and ownership rights, is still very complicated.

old house

fractionalization

have difficulty because of anything

Every state-owned enterprise has it.


The assets are land and buildings. The revaluation at market value

The market for these assets is almost reasonable.

unfounded

official and

Therefore, in the coming time, the Government needs to assign the relevant agencies to urgently study the establishment of an official real estate market, with public and centralized transactions in the form of auctions. First, pilot implementation will be carried out in the capital Vientiane, then experience will be gained to establish it in other localities. The goods traded in the real estate market are mainly the value of land use rights and other types of real estate. These prices will be formed through buying and selling relationships in accordance with market principles.

3.2.4.3. Promote the development of debt trading companies

The Bank's outstanding debt trading and settlement center has been established.

established (as planned if the Debt Settlement and Settlement Service operates effectively, it will

allowed to transform into an independent company not belonging to the State Bank of Laos) according to the decision of the Governor of the State Bank of Laos. After nearly three years of operation, the Debt Settlement Organization has initially handled a number of outstanding debts of

banks but still

on a small scale

and processing time

reason is still long.

In the coming time, the Government and the State Bank need to create conditions and further promote the scale, operations and expand the subjects to buy and sell debts and outstanding assets in enterprises, not just buy and sell outstanding debts in banks as this organization is doing now (the goal is to reduce the entire equitization process of state-owned enterprises) because this is a new tool suitable for the market economy, helping enterprises to handle outstanding debts and unnecessary assets, assets awaiting liquidation, stagnant, poor, and degraded materials, contributing to improving the financial situation of enterprises. In particular, the Debt Trading and Handling Center will contribute to


not small in resolving existing problems such as handling debts and outstanding assets before and after implementing enterprise conversion, thereby strongly promoting the equitization process of state-owned enterprises in general and state-owned commercial banks in particular.

separate. Activities of the Debt Trading and Handling Department buying and selling debt and assets

The accumulation of debts of enterprises will also contribute to promoting the process of forming and developing the capital market, asset market, stock market, reducing deep intervention in the activities of enterprises from administrative management agencies. Thus, it means that the state management function and business function in debt and asset handling have been separated.

3.3. CONDITIONS FOR IMPLEMENTING SOLUTIONS

To make the solutions effective

highest, Government, Ministry

Resources

In particular, the State Bank and state-owned commercial banks need to have specific plans to organize these solutions well.

3.3.1. State agencies

The Government, the Ministry of Finance, and the State Bank shall review all current documents related to the equitization and preparation for equitization of state-owned enterprises, and promptly issue new, synchronous policies that are consistent with reality. Specifically:

The Government reviews, promulgates and amends a number of regulations such as: securities and securities market, Decree guiding the implementation of the Enterprise Law (2005), and content on strategic investors.

Set

Financial guidance tool

can return

Other valuation methods

In addition to the two methods mentioned above to determine the bank value suitable for Lao State-owned commercial banks.

The State Bank of Vietnam has replaced and supplemented a number of inappropriate regulations on capital and capital safety ratio, and regulations on risk provisioning.


3.3.2. Establishment of the Steering Committee for equitization of state-owned commercial banks

Proposal to the Ministry

Finance, State Bank coordinate to establish Steering Committee

ancient religion

equitization of State-owned commercial banks and the equitization support team to help the State Bank, the agency deciding on equitization, direct and organize the equitization of all 3 State-owned commercial banks. According to regulations, the Steering Committee includes:

Representative of State Bank of Vietnam (head of committee)

Representatives of the functional departments of the State Bank

Representative of the Ministry of Finance

Leaders of equitized State-owned commercial banks (Board of Directors, General Director or authorized person)

The equitization steering committee will establish a working group consisting of members who are leaders, chief accountants, and heads and deputy heads of functional departments of the equitized State-owned commercial banks. The costs of the Steering Committee and the equitization working group are included in the equitization costs.

3.3.3. Correctly implement the equitization roadmap

When equitizing a State-owned commercial bank, it is necessary to follow the roadmap for converting a water treatment company into a joint stock company. Specifically, the equitization roadmap includes the following main steps:

Step 1: Develop an equitization plan

+ Establish an equitization steering body and a support team

+ Preparation

file

documentation (including method selection,

Form of determining enterprise value, choosing the time to determine enterprise value along with legal documents of the enterprise and estimated cost of equitization).

+ Inventory, handle financial issues and organize pricing


business management

+ Complete the equitization plan (Including preparing the equitization plan, completing and approving the equitization plan).

Step 2: Organize the sale of shares

+ The equitization steering committee selects the method of selling shares according to regulations.

+ Organizing the sale of shares (can be done in the following ways: direct auction at the enterprise; selling shares at an intermediary financial institution; selling shares at a stock exchange center)

+ Summary of stock sale results reported to the stock decision-making body

chemical


+ In case of not selling shares


part for the objects according to

The approved equitization plan shall be reported to the equitization decision-making body.

It turns out that the decision to adjust the scale and business.

3.3.4. Handling of violations

structure

equitization

of business


The Government and relevant agencies need to resolutely handle individuals and agencies that intentionally violate the regulations on equitization of state-owned enterprises, slowing down the equitization process, especially the phenomenon of dependence and dragging on for personal motives. In addition, there should also be timely incentives for individuals and groups that do well in equitization work through rewards and appropriate salary allowances...

3.3.5. Some recommendations and proposals

3.3.5.1. Recommendations to the State, relevant ministries and branches

The Government is considering issuing a Decree on converting 100% state-owned enterprises.


State-owned joint stock companies including State-owned commercial banks.

The Decision promulgates criteria and a list of classification of State-owned enterprises, including: single-member limited liability companies owned by the State, single-member limited liability companies belonging to State-owned corporations and groups, joint stock companies owned by the State, and parent companies in the parent company-subsidiary model holding more than 50% of the total existing shares. Based on this Decision, continue to classify and reorganize single-member limited liability companies under its management, and submit to the Prime Minister for consideration and decision.

Issue a Decree detailing the implementation of a number of articles of the Law on Enterprises related to establishment, management organization, operation, and organization.

reorganization and dissolution

business

as compared to limited liability company,

Joint stock companies, partnerships and private enterprises, including limited liability companies, joint stock companies converted from 100% state-owned enterprises, enterprises of socio-political organizations, joint venture enterprises, 100% foreign-owned enterprises, joint venture enterprises, 100% foreign-owned enterprises that do not re-register, convert and register to change the Investment Certificate of foreign-invested enterprises according to the provisions of the Law on Enterprises and the Law on Investment.

Investment; Business households and other organizations and individuals related to the establishment

Establishment, organization, management and operation, reorganization and dissolution of enterprises.

3.3.5.2. Recommendations to the Ministry of Finance

Complete circular

Instructions. Set

Finance has issued a circular to

guidance on the Government's Decree on converting state-owned enterprises into joint stock companies.

The Ministry of Finance must provide specific guidance on the equitization of enterprises.

100% state-owned enterprise

should go home

Legal aspects still have many problems


infected:

1. Instructions on initial public offering and management and use of money

Revenue from equitization of 100% state-owned enterprises.

2. Problem guidance

about treatment

financial management and valuation

business

ancient

fractionalization and value

state capital, joint stock enterprise

determining charter capital, developing an equitization plan and organizing the initial sale of shares, organizing a general meeting of shareholders, continuing to handle remaining financial issues until the official conversion into a joint stock company, settling with the State and handing over to the joint stock company.

Due to the specific characteristics of the equitization process of

State-owned commercial banks are different from normal state-owned enterprises in that their regulations on shares

There are some inappropriate points in the fractionalization, the Ministry of Finance needs to coordinate with

State Bank in handling

handle the problems

beyond the provisions of the circulars

link

The Ministry of Finance shall preside over and coordinate with the State Bank to guide state-owned commercial banks on contents other than regulations on financial handling in the process of equitization of state-owned commercial banks or in deciding on related issues.

to service budget

for the implementation process

fractionalization as

job

Decide on the cost of hiring consultants for equitization of state-owned commercial banks, coordinate with the State Bank to submit to the Prime Minister the reserve fund to handle the case of state-owned commercial banks becoming insolvent during the equitization process...

3.3.5.3. Issues of valuation of brands and other intangible assets

Surveying through many tables of assets of enterprises put into equitization, tangible assets such as factories, machinery, vehicles... are valued very clearly and specifically, but there is absolutely no item listing the values ​​of intellectual property rights regarding: trademarks, designs...


industrial, inventions and useful solutions... And a huge amount of assets would have been lost if such tangible assets were ignored. In the recent past, thousands of enterprises have been equitized, but most of them are only small-scale enterprises, so "forgetting" to evaluate the brand has not caused great damage. However, if in the process of equitizing state-owned commercial banks, the value of the brand is ignored, a huge amount of assets will be lost.

To come to the correct equitization decision, the commercial assets

Brands and intellectual property must be fully listed and valued to be included in the list of equitized assets. Accurately determine ownership of brands and other intellectual property to avoid complicated disputes over

after. Legally, we still lack guidance around

Brand valuation issues, the calculation of brand value and other intellectual property assets into equitization. During the time the Ministry of Finance needs to make adjustments to allow the integration of brand value into enterprise value and have a proper calculation method based on practical bases or reference to the value of banks of similar nature, brand value will increase the value of state-owned commercial banks when equitized.

3.3.5.4. Recommendations to the State Bank of Laos

The State Bank of Vietnam reviews and adjusts and supplements a number of inappropriate regulations on capital and capital safety ratio, regulations on risk provisioning... as follows:

Firstly , the State Bank has the responsibility to guide state- owned commercial banks in carrying out inventory, comparison, assessment and classification of assets and liabilities .

at the same time

maintain and coordinate with the Ministry

Finance guides state-owned commercial banks


methods of classification and risk provisioning to handle credit risks. The State Bank needs to innovate and adjust current regulations on debt classification and risk provisioning according to international practices, avoiding the situation of discrepancies in bad debt data of the Lao banking system between the assessment figures of international organizations and according to Lao standards. This will create confidence for investors, especially foreign investors with shares of the Bank of Laos. In addition, the State Bank needs to synchronize standards and

Banking system operating standards, research on system application

International accounting standards in banking operations.

Second , the State Bank plays an important role in coordinating with the Ministry of Finance .

Finance submits to the Prime Minister for approval of reserve funds for handling

case of state-owned commercial banks being

loss of ability

affordability

in the ancient process

Partitioning. Requires the State Bank to have a specific plan and action plan.

In this case, to ensure the operational safety of the

State-owned commercial banks in the process of converting to joint stock form.

Third , the State Bank needs to play an active role in supporting the development of the stock market. The banking system will continue to closely coordinate with the Ministry of Finance and the State Securities Commission to further improve the legal environment for the operation of the stock market. Accelerate the progress of building and supplementing two new banking laws, contributing together with the Securities Law to create a legal framework for the stable development of the stock market.

Fourth , with the commitment to allow foreign banks to participate

Buying shares in Lao banks will facilitate the participation of foreign financial and banking institutions in the Lao banking sector. This could lead to Lao commercial banks being manipulated by


foreign organizations if the State Bank does not have reasonable regulation. The joint ventures in Laos gradually turn into 100% foreign-owned companies.

is a valuable lesson in manipulation and domination by foreign partners.

In addition to participating in companies in Laos. Therefore, the State Bank of Laos must provide tools to regulate the level and speed of market share acquisition by foreign banks through the limit on the shares that foreign organizations and individuals are allowed to buy. Laos can limit the share participation of foreign credit institutions in equitized Lao State-owned commercial banks to the same level as the share participation of Lao commercial banks.

In addition, the State Bank continues to implement solutions to improve its capacity to manage monetary policy and participate in stabilizing the macroeconomic environment.

create more practical conditions for the stock market to develop

to create a healthy development environment for the stock market, thereby promoting the effectiveness of the equitization process of state-owned commercial banks.

3.3.5.5. Recommendations to the Lao State Securities Commission

The equitization of state-owned commercial banks will create a huge amount of goods for the stock market and will more or less have impacts on the market at the time the banks are listed on the stock market due to the sharp increase in the supply of goods. Therefore, the Securities Commission

Contracts need to orient towards perfecting the legal framework and incentive policies.

encourage market participation

market, product development and expansion

wide market scope

stock exchange. Continue to build and perfect the legal framework.

equality and uniformity

for the operation of

stock market, create

legal corridor and more open investment environment as required by the World Trade Organization (WTO) to attract foreign securities service providers to do business in Laos, perfecting the legal framework


Regulate the financial market in general and the stock market in particular, organize and operate the stock market in accordance with international standards, ensure publicity and transparency, and improve the capacity to manage and supervise the stock market.

The process of equitization of state-owned commercial banks will be more favorable.

in public bidding of shares on the stock market if the stock market in Laos develops on a larger scale. However, due to the small scale of the stock market compared to the scale of the

State-owned commercial banks should if the

equitization

These banks only

attached to the market

The domestic stock market will certainly face difficulties.

investment capital. Therefore, it is necessary to consider expanding the maximum shareholding limit of a foreign investor in a State-owned commercial bank in Laos as well as encouraging equitized State-owned commercial banks to list on the stock exchanges.

market

international stock market. This is of a preparatory nature.

But

is just a matter of preventing the risk of uncontrollable collapse.

market

stock market

Laos has a huge amount of goods on the market.

market at the time when state-owned commercial banks are listed on the domestic stock market.

In short, facing the challenges of international economic integration, globalization trends and to become one of the strong banking and financial groups in Laos, state-owned commercial banks must reform and change.

new, in which the old

fractionalization is considered as

Precondition

to solve

to solve the limitations that are arising. To promote the equitization process of State-owned commercial banks, the Steering Committee for Equitization of State-owned commercial banks needs to synchronously implement different solutions. Solutions from the equitization preparation process, the implementation process and after equitization. These solutions


must be directed by the Board

ancient religion

National Commercial Bank for Industry and Trade

departmental executive

Only by studying, being reasonable and determined can we effectively promote and resolve the difficulties in the equitization process of the Lao State Commercial Bank.


CHAPTER 3 CONCLUSION

Based on the objectives, viewpoints, and principles of equitization of Lao State Commercial Bank, combined with the conclusions on existing problems pointed out at the end of chapter 2, the thesis has proposed a system of solutions to promote the equitization of Lao State Commercial Bank in the coming time.

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