Circular No. 08/BKH-DN guiding the implementation of Decree No. 50/CP dated August 28, 1996 of the Government on the establishment, restructuring, dissolution, and bankruptcy of state-owned enterprises (SOEs) and Decree No. 38/CP dated April 28, 1997 of the Government amending and supplementing certain articles of Decree No. 50/CP.

CIRCULAR

Guidelines for implementing Decree No. 50/CP dated August 28, 1996 of the Government on establishment, restructuring, dissolution, and bankruptcy of state-owned enterprises, and Decree No. 38/CP dated April 28, 1997 of the Government amending and supplementing certain provisions of Decree No. 50/CP.

Implementing Decree No. 50/CP dated August 28, 1996 of the Government on establishment, restructuring, dissolution, and bankruptcy of state-owned enterprises (hereinafter referred to as Decree No. 50/CP) and Decree No. 38/CP dated April 28, 1997 of the Government amending and supplementing certain provisions of Decree No. 50/CP, the Ministry of Planning and Investment provides specific guidelines for procedures related to the establishment, business registration, restructuring of state-owned enterprises (SOEs), and changes after business registration as follows:

I. ESTABLISHING NEW SOEs

1. The proposer for establishing new SOEs

1.1. Ministers of Ministries, Heads of agencies at the ministerial level, and Heads of government agencies (hereinafter referred to as Ministers) are the proposers for establishing SOEs under their respective ministries.

1.2. Chairpersons of People's Committees of provinces and centrally governed cities (hereinafter referred to as Chairpersons of Provincial People's Committees) are the proposers for establishing SOEs under their respective provinces.

1.3. Chairpersons of People's Committees of districts, towns, and cities directly under provincial administrations (hereinafter referred to as Chairpersons of District People's Committees) are the proposers for establishing SOEs engaged in public services under their respective districts.

1.4. Board of Directors (BoD) of State-owned Corporations are the proposers for establishing units within their respective corporations.

2. Proposal for Establishing New SOEs

2.1. Ministers and Chairpersons of Provincial People's Committees submit to the Prime Minister proposals for establishing State-owned Corporations, SOEs directly serving national defense and security, and SOEs with charter capital at the time of establishment equivalent to the capital of Group A investment projects as defined in the appendix attached to the Regulation on Management of Investment Construction Projects issued by Decree No. 42/CP dated July 16, 1996 of the Government (hereinafter referred to as Group A investment project capital).

BoDs of State-owned Corporations established by decisions of the Prime Minister submit to the Prime Minister proposals for establishing units within their respective corporations.

After approving the proposal for establishing new SOEs, the Prime Minister decides whether to sign directly or delegate to Ministers or Chairpersons of Provincial People's Committees to sign decisions to establish SOEs as specified in points 3.1 and 3.2, Section 3, Part I of this Circular.

2.2. Ministers and Chairpersons of Provincial People's Committees send to the Minister of Planning and Investment proposals for establishing independent SOEs not part of State-owned Corporations, engaged in business operations, with charter capital at the time of establishment lower than Group A investment project capital.

After reviewing these proposals, the Minister of Planning and Investment issues a consent letter for Ministers or Chairpersons of Provincial People's Committees to sign decisions to establish such SOEs.

2.3. Proposals for establishing new SOEs as mentioned in points 2.1 and 2.2 above must be reviewed and approved in writing by the Prime Minister or the Minister of Planning and Investment before submission to the decision-maker or the person authorized to sign the establishment decision along with the application for establishing new SOEs.

Proposals for establishing new SOEs as mentioned in points 3.3 and 3.4, Section 3, Part I of this Circular shall be submitted to the competent authority for establishing enterprises together with the application for establishing new SOEs.

3. Decision to Establish New SOEs

3.1. The Prime Minister decides to establish State-owned Corporations operating according to the model prescribed in Decision No. 91/TTg dated March 7, 1994 of the Prime Minister, and some particularly important SOEs with charter capital at the time of establishment equivalent to Group A investment project capital.

3.2. The Prime Minister approves proposals for establishing new SOEs as mentioned in point 2.1, Section 2, Part I of this Circular, then delegates to:

The Minister of National Defense, the Minister of Interior to sign decisions to establish SOEs directly serving national defense and security.

The Minister managing the economic-industrial sector, the Chairperson of Provincial People's Committee to sign decisions to establish State-owned Corporations operating according to the model prescribed in Decision No. 90/TTg dated March 7, 1994 of the Prime Minister, and some SOEs with charter capital at the time of establishment equivalent to Group A investment project capital;

The Minister managing the economic-industrial sector to sign decisions to establish units within State-owned Corporations established by decisions of the Prime Minister.

3.3. The Minister decides to establish units within State-owned Corporations delegated by the Prime Minister to the Minister to sign decisions to establish State-owned Corporations and SOEs engaged in public services initiated by the Minister.

3.4. The Chairperson of Provincial People's Committee decides to establish units within State-owned Corporations delegated by the Prime Minister to the Chairperson of Provincial People's Committee to sign decisions to establish State-owned Corporations and SOEs engaged in public services proposed for establishment by the Chairperson of District People's Committee under their jurisdiction or initiated by themselves.

3.5. The Minister of Planning and Investment reviews proposals for establishing new SOEs as mentioned in point 2.2, Section 2, Part I of this Circular, then issues a consent letter for Ministers or Chairpersons of Provincial People's Committees to sign decisions to establish independent SOEs not part of State-owned Corporations, engaged in business operations, with charter capital at the time of establishment lower than Group A investment project capital proposed for establishment by Ministers or Chairpersons of Provincial People's Committees.

4. Application for Establishing New SOEs

4.1. The application for establishing new SOEs includes:

a. A request for establishing new SOEs signed by the proposer and submitted, content according to Appendix No. 1 attached to this Circular;

b. Proposal for establishing new SOEs, content according to Appendix No. 2 attached to this Circular;

For proposals for establishing new SOEs as mentioned in point 2.1, Section 2, Part I of this Circular, the application for establishing must include written approval from the Prime Minister, and for proposals for establishing new SOEs as mentioned in point 2.2, it must include a consent letter from the Minister of Planning and Investment.

c. Charter capital and written opinions of financial authorities regarding sources and levels of charter capital to be provided.

For the projects to establish SOEs mentioned in point 2.1, Section 2, Part I of this Circular, the application dossier for establishment must include the written approval of the Prime Minister, and for the projects to establish SOEs mentioned in point 2.2, it must include the agreement in writing from the Minister of Planning and Investment.

c. The registered capital level and the written opinion of the financial authority on the sources and level of registered capital to be granted.

The registered capital at the time of establishment of SOEs is the amount of capital recorded in the charter of the enterprise at the time of establishment. The registered capital at the time of establishment must not be lower than the statutory capital requirement for the business sector as specified in Appendix 2 attached to Decree 50/CP. In cases where an enterprise engages in multiple business sectors, the registered capital must not be lower than the statutory capital requirement of the sector with the highest statutory capital requirement.

The proposer of establishing an SOE must ensure that the state capital is available for the enterprise at the time of proposal, including state investment capital for basic construction already allocated to the enterprise, state capital mobilized from other member enterprises by State Corporations, preferential state loans, and monetary capital recorded in the budget plan ready to be provided to the enterprise upon establishment.

The confirmation of the registered capital when establishing an SOE shall be carried out in accordance with the guidelines of the Ministry of Finance.

d. Draft charter regarding the organization and operation of the enterprise;

đ. Suggestions on the organizational form of the enterprise; State Corporation, independent units under State Corporations, independent SOEs with a Board of Directors, independent SOEs engaged in business operations or public services, and economic units dependent on SOEs.

e. Written opinion of the Ministry managing the economic and technical sector concerning the main business sector; written opinion of the competent authority issuing business licenses for business sectors with conditions. For the sectors mentioned in point 1.1, Section 1, Part IV of this Circular, there must be an opinion from the Prime Minister;

g. Presentation on environmental protection measures;

h. Written opinion of the Chairman of the People's Committee of the province regarding land use rights and other issues related to the locality where the enterprise's headquarters and production and business bases are located;

4.2. The application for establishing an SOE is submitted to the person authorized to make the decision or delegated to sign the decision to establish the SOE as stipulated in Section 3, Part I of this Circular.

5. Examination of SOE Establishment

Before making the decision to establish an SOE, the person authorized to make the decision or delegated to sign the decision to establish the SOE (hereinafter referred to as the decision-making authority) must establish an Examination Board (EB) consisting of experts familiar with the contents to be examined to review the application for establishing the enterprise. The content of examining the application for establishing an SOE is prescribed in Clause 2, Article 7 of Decree 50/CP.

The Central Steering Committee for Enterprise Renewal is the focal point for receiving and processing project proposals for establishing SOEs that need to be submitted to the Prime Minister, and applications for establishing SOEs decided by the Prime Minister. The Sub-committees for Enterprise Renewal of Ministries and Provincial People's Committees are the focal points for receiving and processing applications for establishing SOEs within the authority of Ministers, Chairmen of Provincial People's Committees, or those delegated to sign the decision to establish the enterprise.

Depending on the nature, scale, and scope of activities of the proposed SOE, the focal point agency for receiving and processing applications will request the decision-making authority to provide a list of EB members and send copies of the application for establishing the SOE to the EB members.

The Chairman of the EB is responsible for compiling the independent opinions of the EB members on the proposed SOE and submitting them to the decision-making authority.

Within twenty days from the date of receipt of complete and valid application documents from the proposer of establishing the SOE, the focal point agency for receiving and processing applications must organize the completion of the EB's opinions.

Within ten days from the date of receipt of the report from the Chairman of the EB, the decision-making authority must issue a decision on the establishment or non-establishment of the proposed SOE. The decision-making authority approves the charter governing the organization and operation of the enterprise.

Decisions on the establishment of SOEs are sent to the Central Steering Committee for Enterprise Renewal, the Ministry of Planning and Investment, the Ministry of Finance, and relevant ministries managing economic and technical sectors for monitoring.

II. BUSINESS REGISTRATION

1. Business Registration Documents (BRD) for SOEs

Within forty-five days from the date of signing the decision to establish, the enterprise must submit a set of BRD to the Department of Planning and Investment of the provincial government where the enterprise's headquarters is located, including:

1.1. Decision to establish the SOE by the authorized person as stipulated in Section 3, Part I of this Circular (original);

For SOEs mentioned in point 3.2, the BRD must include the authorization document of the Prime Minister, and for SOEs mentioned in point 3.5, it must include the agreement document of the Minister of Planning and Investment (certified copy).

1.2. Charter regarding the organization and operation of the enterprise approved by the competent authority (original);

1.3. Certificate from the state capital and asset management agency at the enterprise regarding the registered capital at the time of establishment (original).

1.4. Certificate of eligibility to engage in business activities according to current regulations for business sectors with conditions (certified copy) or written approval of the competent authority issuing business licenses (original);

1.5. Certificate of lawful right to use property for the enterprise's headquarters and production and business premises (copy).

The certificate of lawful right to use property for the enterprise's building is one of the following documents: lease contract for the building; construction permit for the building (if the enterprise builds the building itself and has not yet completed the procedures to obtain the ownership certificate); ownership certificate for the building; document transferring the building to the enterprise for use by the competent authority.

The certificate of lawful right to use property for land is one of the following documents: land use right certificate; lease contract for land; document transferring land to the enterprise for use by the competent authority in accordance with the laws on land.

Address of the enterprise's headquarters, telephone number, Fax, Telex.

1.6. Decision appointing the Chairman and members of the Board of Directors for state-owned corporations and large independent enterprises with established Boards of Directors; decision appointing the General Director or Manager of the enterprise (original copy).

All copies in the file must be certified by the authority that issued the original or by a notary public.

2. Business operations in the registration file

The business operations in the registration file shall be determined according to the provisions of Decree No. 75/CP dated October 27, 1993 of the Government on the national economic sector system and Decision No. 143 TCTK/PPCĐ dated December 22, 1993 of the General Statistics Office Head on the issuance of the second, third, and fourth level economic sectors.

3. Time limit for issuing the business registration certificate

Within fifteen days from the date of receiving complete and valid files, the Provincial Department of Planning and Investment must issue the business registration certificate to the enterprise. The issuance date of the business registration certificate shall not exceed sixty days from the date of signing the establishment decision of the enterprise; after issuing the business registration certificate to the enterprise, the Provincial Department of Planning and Investment shall send a copy of the business registration certificate to relevant agencies as stipulated in Clause 6, Article 9 of Decree No. 50/CP.

The enterprise must publish in accordance with Article 10 of Decree No. 50/CP.

Business registration for dependent economic units:

4.1. Dependent economic units of an enterprise are subordinate units directly under the enterprise, accounting for the enterprise, performing tasks assigned by the enterprise within the scope of business operations recorded in the enterprise's business registration certificate. The enterprise shall bear legal responsibility for all activities of its dependent economic units.

Dependent economic units of an enterprise may be called branches, centers, stations, camps, factories, mines, farms, forest farms... as specifically provided in the enterprise's charter.

4.2. The business registration file includes:

Approval document of the provincial People's Committee where the dependent economic unit is located (original copy);

Establishment decision of the dependent economic unit by the authorized person as stipulated in Clause 1 and Clause 2, Article 11 of Decree No. 50/CP (original copy);

Document defining the functions and responsibilities of the dependent economic unit (original copy);

Appointment document of the head of the dependent economic unit (original copy);

Certificate of lawful rights to use premises and land of the dependent economic unit (copy);

Address of the headquarters, telephone number, fax, telex of the dependent economic unit;

Copy of the business registration certificate of the enterprise.

4.3. Within thirty days from the date of signing the establishment decision of the dependent economic unit, the enterprise must submit the business registration file of the dependent economic unit to the Provincial Department of Planning and Investment where the enterprise's dependent economic unit is located.

Within fifteen days from the date of receiving complete and valid files, the Provincial Department of Planning and Investment must issue the business registration certificate to the dependent economic unit of the enterprise.

4.4. In case the enterprise requests to establish dependent economic units in the same province where the main office of the enterprise is located, it must obtain written approval from the district People's Committee where the dependent economic units are located. The enterprise must report to the Provincial Department of Planning and Investment or register the business for these dependent economic units as specified in Point 4.2, Section 4, Part II of this Circular (the approval document of the provincial People's Committee shall be replaced by the approval document of the district People's Committee where the dependent economic unit is located).

4.5. The representative office of the enterprise only performs transactional functions authorized by the enterprise and does not engage in business activities.

The representative office of the enterprise does not need to apply for a business registration certificate but must register its operation at the Provincial Department of Planning and Investment after obtaining written approval from the provincial People's Committee where the representative office is located.

III. REORGANIZATION OF STATE ENTERPRISES

1. The merger of independent state enterprises to form a new independent state enterprise; the division of an independent state enterprise to form new independent state enterprises; the conversion of an economic unit subordinate to a state enterprise or a public service unit into an independent state enterprise, which shall be decided and implemented by the person signing the establishment decisions of those enterprises in accordance with the procedures for establishing state enterprises and business registration stipulated in Parts I and II of this Circular.

During the process of merging or dividing independent state enterprises, the person signing the establishment decision of the enterprise must decide to remove the names of the merged or divided independent state enterprises before signing the establishment decision of the new enterprise, and simultaneously notify relevant agencies to recover the business registration certificates and seals.

2. The absorption of one or more enterprises (referred to as the absorbed enterprises) into another independent state enterprise must be decided by the person signing the establishment decisions of those enterprises on the absorption plan and removal of the names of the absorbed enterprises. After absorbing the absorbed enterprises, the independent state enterprise retains its legal entity status without needing to re-establish the enterprise, but must register changes to the registered capital and business operations (if any) with the agency that issued the business registration certificate to the enterprise.

3. The transformation of a state enterprise into a public service unit shall be decided by the person signing the establishment decision of the enterprise after obtaining written agreement from the competent authority managing related public service activities concerning the transformation of the enterprise.

4. The merger, absorption, and division of member units of state corporations; the conversion of types of member units within state corporations; the admission of new members or resolution of member units leaving state corporations, shall be proposed by the State Corporation Board of Directors and decided by the person signing the establishment decision of the state corporation. Reorganization leading to the formation of a new member unit as an independent state enterprise must be carried out in accordance with the procedures for establishing state enterprises and business registration stipulated in Parts I and II of this Circular.

In case an independent enterprise outside the Corporation wishes to join the Corporation, such enterprise must submit a request for joining the Corporation to the Board of Directors and must obtain written consent from the person who signed the decision to establish the enterprise.

IV. CHANGES AFTER BUSINESS REGISTRATION

1. Changes and additions to business operations:

1.1. For business operations that require permission from the Prime Minister:

Business operations requiring permission from the Prime Minister include:

Production and circulation of explosives, poisons, toxic chemicals, radioactive substances;

Extraction of precious minerals and radioactive ores;

Production and supply of electricity and water on a large scale;

Production of broadcasting equipment, postal services, telecommunications, radio and television broadcasting, publishing;

Long-distance shipping and air cargo transportation;

Production and repair of weapons and military equipment.

When SOEs request to add these business operations, the person who signed the establishment decision must seek permission from the Prime Minister. After receiving written approval from the Prime Minister, the person who signed the establishment decision may then decide to add these business operations for the enterprise.

1.2. For business operations that require a professional certificate or a business license according to current regulations:

When SOEs request to add these business operations, the person who signed the establishment decision must submit a written request to the competent authority issuing the professional certificate or business license for review. Only after obtaining the professional certificate, business license, or written agreement from these authorities can the person who signed the establishment decision make a decision to add these business operations for the enterprise.

1.3. If SOEs request changes or additions to business operations leading to changes in the primary business operation level of the enterprise as defined in Decree No. 75/CP dated October 27, 1993 issued by the Government on the national economic sector system or leading to changes in the main business operations recorded in the establishment decision, such requests must be reviewed and decided upon by the person who signed the establishment decision.

1.4. After the decision to change or add the aforementioned business operations by the person who signed the establishment decision, the enterprise must register these changes or additions with the authority that issued the business registration certificate to the enterprise.

1.5. In cases where enterprises request changes or additions to business operations not covered by the provisions in Points 1.1, 1.2, 1.3, Section 1, Part IV of this Circular, the enterprise only needs to register the changes or additions with the authority that issued the business registration certificate to the enterprise. After registering the changes or additions to business operations, the enterprise must report to the person who signed the establishment decision.

1.6. Changes or additions to business operations must be consistent with the registered capital; if the enterprise requests to add business operations with a higher statutory capital than its current registered capital, the enterprise can only be approved to add such business operations after increasing its registered capital to ensure it does not fall below the statutory capital requirement for the new business operation.

1.7. Changes or additions to business operations for member enterprises of state-owned corporations established by the Prime Minister's decision, the Prime Minister delegates the Chairman of the Board of Directors of the corporation to review and decide on changes or additions to business operations for these enterprises, ensuring consistency with the registered capital and technological conditions of each enterprise.

For business operations that require permission from the Prime Minister or a professional certificate or business license according to current regulations, the Chairman of the Board of Directors can only decide to change or add these business operations for member enterprises after receiving written approval from the Prime Minister or the competent authority issuing the professional certificate or business license. After deciding on changes or additions to business operations for member enterprises, the Chairman of the Board of Directors must report to the Prime Minister; member enterprises must register these changes with the authority that issued the business registration certificate.

2. Change of Enterprise Name:

The person who signed the establishment decision of SOEs reviews and decides on changing the enterprise name based on the proposal of the Board of Directors (for enterprises with a Board of Directors) or the General Director (for enterprises without a Board of Directors), provided that the new name does not conflict with the enterprise's business operations and is in accordance with the guidelines of relevant sectors.

After making the decision to change the name, the enterprise must register with the authority that issued the business registration certificate, re-engrave the seal, and publish the change according to regulations.

Changing the name of member enterprises of state-owned corporations established by the Prime Minister's decision, the Prime Minister delegates the Chairman of the Board of Directors to review and decide, then report to the Prime Minister.

3. Change of Registered Capital:

If there is a change in the registered capital, after obtaining written confirmation from the state asset management agency at the enterprise, the enterprise must register the new registered capital level with the authority that issued the business registration certificate.

V. IMPLEMENTATION PROVISIONS

1. This Circular applies to SOEs specified in Articles 1 and 2 of the State-Owned Enterprise Law.

2. Procedures and formalities for establishing enterprises jointly funded by SOEs shall be implemented in accordance with the Company Law.

3. Procedures for establishing enterprises invested in by political organizations and mass organizations (hereinafter referred to as mass organizations) shall be implemented in accordance with Decree No. 50/CP and related guiding documents.

The application for establishing a business of Party organizations and mass organizations at the central level with main business activities under the management of a specific economic-technical ministry shall be submitted to the Minister of that ministry for examination and decision on establishment of the business. The application for establishing a business of Party organizations and mass organizations at provincial and centrally-administered city levels shall be submitted to the Chairman of the People's Committee of the province or centrally-administered city for examination and decision on establishment of the business. Matters related to registration of business establishment for businesses of Party organizations and mass organizations shall be implemented in accordance with the provisions of this Circular.

This Circular takes effect fifteen days from the date of signature and replaces Circular Joint No. 01-TT/LB dated February 13, 1992, and Circular Joint No. 04-TT/LB dated June 11, 1992, issued by the State Planning Commission and the Ministry of Finance guiding the implementation of regulations on the establishment and dissolution of state-owned enterprises pursuant to Decree No. 3888/HĐBT dated November 20, 1991, of the Council of Ministers. All previous provisions contrary to this Circular are hereby abolished.

During the implementation process, if there are any difficulties, agencies and enterprises are requested to promptly reflect them to the Ministry of Planning and Investment for research, amendment, and supplementation of the guidance content to ensure appropriateness.

APPENDIX 1

CONTENT OF THE APPLICATION FOR ESTABLISHING A STATE ENTERPRISE

1. Purpose of Establishing the Enterprise

Basis for determining the necessity of proposing the establishment of the enterprise

Purpose of Establishing the Enterprise

2. Characteristics of the Proposed Enterprise

NAME OF ENTERPRISE

Main office and production and business locations

Organizational form of the enterprise (State Corporation, independent accounting unit of the State Corporation, independent state enterprise with a Board of Directors, independent state enterprise engaged in business operations or public services, organization of affiliated economic units of the enterprise...)

Main production and business activities

Major products produced and services provided

Registered capital, divided into various sources of capital (state budget capital, preferential loans, other raised capital...). Ability to ensure the availability of registered capital proposed for establishment of the enterprise

Environmental protection measures and waste disposal (for enterprises requiring such measures)

3. Proposals and Commitments After the Enterprise Is Established

4. Documents Accompanying the Application for Establishing a State-Owned Enterprise

Project for Establishing a State-Owned Enterprise

Draft Charter on Organization and Operation of the State-Owned Enterprise

ANNEX NO. 2

CONTENTS OF THE PROJECT FOR ESTABLISHING A STATE ENTERPRISE

NAME OF ENTERPRISE

Proposed main office and production and business locations

List of products produced and services provided for public service activities

I. Necessity for Establishing the Enterprise:

Industry development planning and territorial planning

Market demand analysis

Analysis and forecast of industry development trends domestically and internationally

Analysis and evaluation of the capabilities of existing enterprises in the same industry

Relevant economic and social policies for industry development

Affirmation of the necessity for establishing a state-owned enterprise

Tasks, objectives, and projected scale of the enterprise

II. Proposed Necessary Conditions for Normal Business Operations After Establishment

Proposed sources of raw materials and material resources; proposed regional raw material planning

Labor: labor source, labor skills, and ability to attract labor

Proposed technological equipment level

Charter Capital

Where:

State budget capital

Preferential loans

Other fundraising (specify the method of raising this capital)

Ability to ensure registered capital when establishing the enterprise.

Form and progress of payment of raised capital when the enterprise begins production and business operations.

Proposed needs and measures to create working capital when the enterprise starts operations

Proposed construction progress (if the enterprise has construction projects):

Start-up time, completion time

Trial operation time and official start of operations

III. Production, Business, and Service Organization of the Enterprise After Establishment

1. Organizational form: State Corporation, independent accounting unit of the State Corporation, independent state enterprise with a Board of Directors, independent state enterprise engaged in business operations or public services, organization of affiliated economic units of the enterprise...

2. Proposed production and business plan for the first year when the enterprise officially starts operations and projections for the next four years

Design capacity, proposed ability to mobilize design capacity

Proposed production volume, quality, costs, prices, revenue, and profit for major products and services

Ability to meet market requirements, sales, and competitiveness of products and services both domestically and internationally

Main measures regarding technology, labor organization, additional capital, raw material supply, marketing, product model changes, and market capture...

3. Proposed impact on the environment and environmental protection measures such as waste treatment, wastewater, exhaust gas, noise... (if applicable)

4. Proposed economic and social benefits

Proposed profit margin over total costs, prices, and selling prices; proposed income of workers, payback period, debt repayment, and tax payments

Proposed profit margin over revenue; profit margin over operating capital; profit margin over state budget capital and capital originating from the state budget...

Social and environmental benefits, including negative consequences (if any)./