Directive No. 04/2002/CT-TTg on continuing the restructuring, reforming, developing, and enhancing the efficiency of state-owned enterprises

DIRECTIVE

Regarding the continued restructuring, renewal, development and enhancing the efficiency of state-owned enterprises

To implement Resolution No. 3 of the Third Plenary Session of the Ninth Central Committee of the Communist Party of Vietnam on the Continued Restructuring, Renewal, Development and Enhancement of Efficiency of State-Owned Enterprises; and the Government's Action Program to implement this Resolution, the Prime Minister issues the following Directive:

1. Ministries, ministerial-level agencies, government agencies, provincial people's committees under the central government, state-owned holding companies shall provide written comments on draft Decrees replacing Decree No. 44/1998/NĐ-CP on the conversion of state-owned enterprises into Joint Stock Companies; Decree on management and handling of overdue debts for state-owned enterprises; Decree on policies for surplus labor in the restructuring and enhancement of efficiency of state-owned enterprises; Decision of the Prime Minister on criteria and classification lists of state-owned enterprises and state-owned holding companies, and submit them to the Steering Committee for Enterprise Renewal and Development before February 15, 2002.

The Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Labor, Invalids and Social Affairs shall incorporate the opinions of contributing agencies and localities at the national conference to implement Resolution No. 3 of the Third Plenary Session of the Ninth Central Committee of the Communist Party of Vietnam, to perfect the above-mentioned documents for submission to the Government and the Prime Minister for issuance in February 2002. Specifically regarding the shareholding reform of state-owned enterprises, the Ministry of Finance needs to reflect the following contents:

- In the short term, continue to apply leasing and land allocation to enterprises according to current regulations. For advantageous positions with high profitability, rental prices should be recalculated appropriately. Only pilot projects will be organized to include the value of land use rights in the enterprise's valuation for shareholding reform.

- Regarding the sale of shares at preferential prices to employees within enterprises: it should not only rely on administrative measures but also require leadership from the Party organization and assistance from trade unions to ensure that poor employees retain their shares and remain committed to the enterprise.

- Study the use of a portion of state capital in enterprises based on the principle of harmonizing three interests: the State, the enterprise, and the employees to form non-distributable shares that still enjoy dividends.

- Clearly stipulate that if state-owned enterprises undergoing shareholding reform retain 51% or more of the shares, they remain state-owned enterprises; if they are members of state-owned holding companies, they must maintain their status as members of those holding companies.

2. Ministries: Planning and Investment, Finance, Labor, Invalids and Social Affairs, Construction, Government Organizational and Cadre Management Department shall urgently prepare and submit to the Government and the Prime Minister related programs concerning the restructuring, renewal, development, and enhancement of efficiency of state-owned enterprises according to tasks and deadlines set out in Decision No. 183/2001/QĐ-TTg dated November 20, 2001 of the Prime Minister on the Government's Action Program to implement Resolution No. 3 of the Third Plenary Session of the Ninth Central Committee of the Communist Party of Vietnam.

The Government Organizational and Cadre Management Department shall issue guidance on implementing Decision No. 180/2001/QĐ-TTg dated November 16, 2001 of the Prime Minister on personnel for Deputy General Managers, Chief Accountants, and Directors of units within wholly state-owned holding companies to ensure compliance with the Party's leadership principles on cadre work. By the first quarter of 2002, report to the Prime Minister on the organizational structure and specific personnel of the Board of Directors and General Managers of state-owned holding companies.

3. Ministries, sectors, localities, state-owned holding companies:

- Fully understand and implement Resolution No. 3 of the Central Committee in leadership and subordinate units.

- Ministers of ministries, heads of ministerial-level agencies, heads of government agencies, chairmen of provincial people's committees under the central government, chairmen of boards of directors of state-owned holding companies 91 shall be responsible for developing restructuring, renewal, and development plans for enterprises to be approved by party committees and submitted to the Prime Minister for approval before April 30, 2002.

4. Regarding pilot models of new management organizations:

Ministries, sectors, localities, state-owned holding companies shall select some enterprises to direct towards becoming Limited Liability Companies with one member. At the end of 2002, conduct a review and evaluate results to implement for all enterprises.

The Steering Committee for Enterprise Renewal and Development shall coordinate with ministries, localities, and state-owned holding companies to submit to the Prime Minister the number of enterprises required to pilot operations under the parent company-subcompany model.

After reviewing the implementation of the pilot program, all state-owned holding companies meeting the conditions to maintain their status as holding companies will operate under the parent company-subcompany model as stipulated in Resolution No. IX.

Pilot establishment of business groups in oil and gas, telecommunications, electricity, construction.

End the pilot program for the Chairman of the Board of Directors and General Manager being the same person. The Government Organizational and Cadre Management Department, ministers of ministries, chairmen of municipal people's committees with state-owned holding companies shall complete the board of directors and general manager structure according to Resolution No. 3.

5. Ministries, sectors, localities, state-owned holding company 91 shall immediately establish the Enterprise Renewal and Development Board at their respective levels to assist leadership in drafting, guiding, and monitoring the implementation of restructuring, renewal, development, and efficiency enhancement plans for state-owned enterprises.

Ministers, heads of ministerial-level agencies, heads of government agencies, chairmen of provincial people's committees under the central government, boards of directors of state-owned holding companies are responsible for implementing this Directive.

The Steering Committee for Enterprise Renewal and Development is responsible for urging, monitoring, and regularly reporting to the Prime Minister on the implementation of this Directive.