Vietnam: Actual seniority as the basis for purchase of discounted shares

According to Circular No. 07/2018/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, the actual seniority in the public sector as the basis for purchase of discounted shares is prescribed as follows:

- The actual length of time that a person eligible to purchase discounted shares has worked in an equitized enterprise, accrued by the time of enterprise valuation, including the length of time that such person has worked in the enterprise before it is merged with or consolidated into an equitized enterprise or fully divided or partially divided into an equitized enterprise (if any).

- The actual length of time that a person eligible to purchase discounted shares has worked, accrued in a state administrative institution, state-owned service provider, political organization, socio-political organization or armed force unit (including the length of time that the employee has done a military service), wholly state-owned enterprise or another enterprise 100% of charter capital of which is held by a wholly-stated owned enterprise before transferring to an enterprise that has been merged with or consolidated into an equitized enterprise or fully divided or partially divided into an equitized enterprise (if any).

- Notably, the actual seniority in the public sector as the basis for purchase of discounted shares excludes the length of time that an employment contract has been suspended and unpaid leave has been taken.

- The length of time as the basis for purchase of discounted shares is the actual length of time of receiving fix funding under a long-term agreement on receiving fix funding with an equitized enterprise, accrued by the time of equitized enterprise valuation.

- The length of time as the basis for purchase of discounted shares is expressed as years (full year). If a partial year has fewer than 06 months shall be rounded down to 0; a partial year that has 06 months or more shall be rounded up to 01year.

Circular No. 07/2018/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam takes effect from September 15, 2018.

-Thao Uyen-

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE