Decree No. 104/SL On Establishing Basic Principles for "State Enterprises"

DECREE

NUMBER: 104/SL DATE: January 1, 1948

OF THE CHAIRMAN OF THE GOVERNMENT OF THE DEMOCRATIC REPUBLIC OF VIETNAM

PRESIDENT OF THE VIETNAM DEMOCRATIC REPUBLICIC GOVERNMENT

WHEREAS the Minister of Economy has proposed;

After the Government Council and the Standing Committee of the National Assembly reached an agreement,

ISSUES THE DECREE:

Article 1

NOW ESTABLISHES THE BASIC PRINCIPLES OF "STATE ENTERPRISES" AS FOLLOWS:

Article 2

A STATE ENTERPRISE IS AN ENTERPRISE UNDER THE OWNERSHIP AND CONTROL OF THE STATE.

Article 3

THE PURPOSES OF STATE ENTERPRISES ARE AS FOLLOWS:

1- TO SATISFY THE ESSENTIAL NEEDS OF THE STATE,

2- TO REGULATE DOMESTIC ECONOMIC ACTIVITIES,

3- TO PROTECT THE NATIONAL ECONOMY,

4- TO GENERATE PROFIT FOR THE NATIONAL FINANCE.

Article 4

STATE ENTERPRISES ARE DIVIDED INTO TWO CLASSES:

- THE FIRST CLASS CONSISTS OF ENTERPRISES WITH THE CHARACTER OF "COMPLETE ENTERPRISES."

- THE SECOND CLASS CONSISTS OF ENTERPRISES WITH THE CHARACTER OF "SPECIAL OFFICES."

THE CHARACTER OF EACH STATE ENTERPRISE WILL BE DETERMINED BY THE ESTABLISHMENT DECREE.

Article 5

THE EMPLOYEES OF A STATE ENTERPRISE ARE SUBJECT TO A SEPARATE REGIME.

Article 6

CIVIL SERVANTS DETACHED TO WORK AT A STATE ENTERPRISE RETAIN THEIR ORIGINAL SALARIES AND BENEFITS, HOWEVER, THEY MAY ENJOY THE SPECIAL REGIME OF THE ENTERPRISE IF IT IS MORE ADVANTAGEOUS DURING THE PERIOD OF DETACHMENT.

, Clause 1, Clause 2 Article 7a of this Regulation.

THE MANAGERS IN STATE ENTERPRISES WITH THE CHARACTER OF COMPLETE ENTERPRISES ARE SUBJECT TO A SPECIAL REGIME:

1- WHEN COMMITTING PROFESSIONAL MISCONDUCT, IN ADDITION TO DISCIPLINARY PUNISHMENT, THEY MAY BE REQUIRED TO COMPENSATE THE ENTERPRISE FOR DAMAGES CAUSED BY THEIR FAULT. THE AMOUNT OF COMPENSATION WILL BE DETERMINED BY THE COMMERCIAL COURT AND THE JUDGMENT WILL BE ENFORCED BY MEANS OF BODILY RESTRAINT IF NECESSARY. THE PROSECUTION BEFORE THE COURT MUST FOLLOW A SPECIAL PROCEDURE: A PANEL COMPOSED OF COLLEAGUES WHO INITIATE, SUPERIORS WHO APPROVE, AND HIGHER SUPERIORS (IF APPLICABLE) WHO DECIDE ON THE PROSECUTION.

2- THEY SHALL RECEIVE A PORTION OF THE PROFITS IF THE TOTAL PROFITS EXCEED A PREDETERMINED LEVEL.

Article 8

ALL STATE ENTERPRISES OPERATE WITH "AUTONOMOUS FUNDS" THAT ARE NOT PART OF THE ANNUAL BUDGET.

Article 9

EACH STATE ENTERPRISE WILL BE ESTABLISHED BY A DECREE AND THE DETAILS OF ITS IMPLEMENTATION WILL BE DETERMINED BY THE DEPARTMENT IN CHARGE.

Article 10

THE MINISTERS OF ECONOMY, FINANCE, AND JUSTICE SHALL ENFORCE THIS DECREE.