Directive No. 03/2007/CT-BGTVT on intensifying the work of restructuring, reforming, developing, and enhancing the operational efficiency of enterprises in the Transport Industry in 2007.

DIRECTIVE

On Promoting the Work of Reorganizing, Reforming, Developing, and Enhancing the Efficiency of Business Operations in the Transport Industry in 2007

Reorganizing, reforming, developing, and enhancing the efficiency of business operations is a major policy of the Party and the State. Therefore, with the attention of the Party Committee and leadership of the Ministry in recent years, businesses under the Ministry of Transport have been restructured, management and organization improved, and resources concentrated through reorganization of organizational models, shareholding, selling shares to outside parties to attract investment for development, gradually improving competitiveness, and adapting to market mechanisms.

To serve the work of reorganizing and reforming businesses, the Ministry of Transport has organized conferences to disseminate policies and resolutions of the Party and directives of the Prime Minister; organized training conferences to introduce new state policies on business reform and shareholding, the restructuring of state-owned enterprises into parent companies and subsidiary companies... so that key cadres and those responsible for business reform throughout the industry understand and implement them. Due to effective propaganda and guidance, since the policy on reorganizing, reforming, developing, and enhancing the efficiency of business operations was initiated, especially after Resolution No. 3 of the Ninth Plenum, the Ministry of Transport has successfully shareholded 279 businesses and business units, including 100 businesses in 2005 according to the overall plan approved by the Prime Minister. In addition, the Ministry of Transport has directed units to apply many measures to reorganize and reform management to enhance operational efficiency: The Construction and Trade Corporation has piloted the shareholding of the entire corporation; The Fifth Highway Construction Corporation sold Company 568 Investment and Construction; The Parent Company - Multimodal Transport Corporation applied the form of the Board of Directors hiring a General Director...

However, in 2006, the work of reorganizing, reforming, developing, and enhancing the efficiency of business operations, particularly the shareholding of state-owned companies in the industry, was slow. According to the plan approved by the Prime Minister to sharehold 74 businesses, only 31 businesses were successfully shareheld. Therefore, in 2007, there needs to be focused direction to accelerate the progress of reorganizing, reforming, developing, and enhancing the efficiency of business operations, with the focus on implementing shareholding of businesses or applying forms such as sale or bankruptcy for small businesses with losses. To effectively achieve these goals and tasks, the Minister of Transport issues the following directive:

1. Units shall be responsible for organizing the dissemination and implementation of the Resolution of the 10th National Congress of the Communist Party of Vietnam, the Government's Action Program on Promoting the Reorganization, Reform, Development, and Enhancement of the Efficiency of State-Owned Enterprises during the 2006-2010 period issued together with Decision No. 263/2006/QD-TTg dated November 15, 2006 of the Prime Minister, Directive No. 36/2006/CT-TTg dated November 15, 2006 of the Prime Minister on the Implementation of the Government's Action Program on Promoting the Reorganization, Reform, Development, and Enhancement of the Efficiency of State-Owned Enterprises during the 2006-2010 period, and other relevant regulations to raise awareness among cadres, party members, civil servants, employees, and workers throughout the industry about the necessity and forms of reorganizing and reforming state-owned enterprises.

2. Continue to improve the Business Reform and Development Board, the Steering Committee for Shareholding... and allocate cadres with professional expertise to ensure advisory work for leaders in the implementation of reorganizing, reforming, developing, and enhancing the efficiency of business operations.

3. Directors of Departments, Chairmen of the Boards of Directors, General Directors (Directors) of Corporations, State Companies, Heads of subordinate units under the Ministry shall be responsible for:

- Reviewing and building positive programs and solutions to carry out the reorganization and shareholding of businesses in accordance with the plans approved by the Prime Minister in Decision No. 63/2003/QD-TTg dated April 21, 2003 on Approving the Overall Plan for the Reorganization and Reform of State-Owned Enterprises under the Ministry of Transport until 2004 and Decision No. 95/2005/QD-TTg dated May 6, 2005 on Adjusting the Plan for the Reorganization and Reform of State-Owned Enterprises under the Ministry of Transport in 2005-2006 and other related documents and regulations, and report their implementation plans to the Ministry before March 20, 2007.

- For businesses facing difficulties (mainly financial difficulties), efforts should be made to improve organizational structures, intensify the resolution of existing problems, and overcome difficulties to facilitate shareholding. Businesses with losses in production and operation, without state capital, and unable to meet the prescribed criteria for shareholding should proactively propose and report to the Ministry to request the Prime Minister's approval for sale or bankruptcy.

- For businesses that have effectively implemented restructuring and production and operation adjustments, creating brands in the market, measures should be taken to encourage and support their expansion of production and operation, forming new models in compliance with the law.

4. The Department of Roads of Vietnam shall organize a mid-term review of the pilot shareholding model for state-owned companies engaged in public services; propose plans for the reorganization of remaining state-owned companies engaged in public services; develop asset management plans (preserving traffic safety reserve assets, managing and using public assets) and the inheritance of toll collection rights at joint-stock companies, and report these plans and implementation schedules to the Ministry before March 20, 2007.

5. The Vietnam Inland Waterways Administration shall organize a mid-term review of the pilot model for equitization of inland waterway management sections; propose restructuring plans for inland waterway management sections in accordance with the Party and State's policies on enterprise reorganization and reform, while ensuring the fulfillment of assigned public service tasks; report the plan and implementation schedule to the Ministry before March 20, 2007.

6. The Civil Aviation Administration of Vietnam shall be responsible for researching and proposing plans to reorganize and reform the structure and operations of civil aviation port clusters towards separating state management from business production, establishing regional civil aviation port authorities, and transforming them into production and business enterprises at civil aviation ports; report the plan to the Ministry before March 31, 2007.

7. The Vietnam Highway Administration, the Vietnam Maritime Administration, the Civil Aviation Administration of Vietnam, and the Vietnam Railway Corporation shall be responsible for reviewing and recommending to the Ministry for recognition of state-owned companies performing public service tasks based on Decree No. 31/2005/NĐ-CP dated March 11, 2005; submit the dossier to the Ministry before March 15, 2007.

8. State-owned corporations under the Ministry shall strictly implement Decision No. 1729/QĐ-TTg dated December 29, 2006 of the Prime Minister approving the list of state-owned corporations to be equitized during the period 2007-2010. Accelerate the steps of equitizing state-owned corporations. Consider the full equitization of state-owned corporations as a key task in the work of enterprise reform and reorganization, aiming to create a breakthrough in enhancing the operational efficiency of corporations in the near future, achieving the goal of attracting capital and improving corporate governance, and increasing competitiveness.

9. The Steering Committee for Enterprise Reform and Development of the Ministry of Transport shall be responsible for:

    - Urging and inspecting organizations and individuals in the implementation of plans for the reorganization and equitization of state-owned enterprises under the Ministry.

    - Promptly proposing measures to resolve difficulties and obstacles encountered by units during the process of reform, reorganization, and equitization of enterprises, reporting to the Minister for consideration and resolution.

    - Cooperating with relevant units to propose solutions for related ministries and sectors to consider and address financial difficulties to enable enterprises to implement reorganization and equitization, and resolve employee welfare policies (surplus labor policies, training, retraining...).

    - Studying and applying the merger and restructuring model of parent company - subsidiary company for enterprises in the same industry with technological and market relationships within the transportation sector. Implementation time: Second quarter of 2007.

    - Completing the Charter and coordinating with relevant departments in implementing the Charter of the Board of Directors of the Vietnam Automobile Industry Corporation signing contracts for hiring General Managers. Implementation time: First quarter of 2007.

Organize a mid-term review and evaluation of the model of the Board of Directors signing contracts for hiring General Managers at the Parent Company - Multimodal Transport Company to promote and apply it in other enterprises in the transportation sector. Implementation time: Second quarter of 2007.

Heads of units under the Ministry shall implement the main contents mentioned above according to their scope of responsibility, strictly and seriously; consider this as an important criterion for assessing competition, evaluating the effectiveness of enterprise operations, and assessing the leadership capabilities of enterprise leaders. Firmly deal with enterprise leaders (Chairmen of the Board of Directors, General Managers, or Directors) who deliberately fail to implement or obstruct the transformation and equitization of enterprises.

The Steering Committee for Enterprise Reform and Development of the Ministry of Transport shall be responsible for urging, monitoring, and periodically reporting to the Minister on the implementation of this Directive.