Under the legislation, state corporations are allowed to proactively mobilize capital to support production but only when their debt is not to exceed their charter capital by three-fold.

While the 41-page regulation mandates that a state corporation’s total investment in other businesses, including long and short-term investments, does not surpass its chartered capital, it also permits state corporations to determine the methods of investment they wish to make in other areas of businesses.

State corporations are allowed to contribute capital to banking, insurance and securities businesses but their investment is required not to surpass 20 percent of those businesses’ charter capital. In case they want to increase their stake, these corporations need to submit their proposal to the prime minister for consideration and approval.

Source: VNA