Directive No. 12/2001/CT-TTg On handling the results of the comprehensive asset inventory and revaluation of state-owned enterprises' assets at 00:00 on January 1, 2000

DIRECTIVE

Regarding the handling of the results of the comprehensive inventory of assets and the revaluation of the value of state-owned enterprises' assets at 00:00 on January 1, 2000                  

Through the inventory and revaluation of the asset values of state-owned enterprises at 00:00 on January 1, 2000, basic data on the situation of state capital and asset usage at enterprises were identified, allowing for an assessment of the business operation results of state-owned enterprises in each locality and nationwide. In general, state-owned enterprises have maintained and developed their capital, used assets and conducted business operations more effectively, with the scale of enterprises having made progress.

However, through the results of this inventory and revaluation of asset values, it is evident that the scale of state-owned enterprises is still small, the growth rate is slow, there are many state-owned enterprises with low capital levels and poor business efficiency, and outdated technology remains a significant obstacle to competitiveness and integration. Bad debts, excess materials, goods not needed and of poor quality awaiting processing remain large. The production and business efficiency and competitive strength of state-owned enterprises are still low, not commensurate with the conditions and advantages they possess. Weak and loss-making enterprises that have lost all capital and cannot continue to operate have not been resolved definitively.

To address the aforementioned issues and thoroughly implement the Resolution of the Ninth National Party Congress, striving to basically complete the consolidation, restructuring, adjustment of structures, reform, and enhancement of the operational effectiveness of state-owned enterprises within five years, the Prime Minister instructs ministries, sectors, localities, and state-owned enterprises to promptly implement the following tasks:

1. For discrepancies in asset surpluses and shortages and asset values after the inventory, enterprises must analyze and clarify the causes to handle them according to current regulations, thereby improving accounting practices and adjusting accounting records accordingly.

2. For increases and decreases in asset values due to revaluation (including fixed assets and low-quality, deteriorated assets) after being reviewed and approved by competent authorities, corresponding adjustments to capital will be made based on the revaluation figures. The Ministry of Finance shall lead and coordinate with relevant agencies to review the data of the 91 Holding Corporations and state-owned enterprises under ministries and sectors. Provincial People's Committees and municipal people's committees directly under the central government shall be responsible for reviewing the data of state-owned enterprises under their management.

The Ministry of Finance shall lead and coordinate with relevant agencies to re-evaluate the asset values of enterprises funded by borrowed capital from ODA sources but received as foreign assets, machinery, and equipment at high prices, significantly different from current market prices, and handle them according to regulations; in cases exceeding authority, the Ministry of Finance shall report and propose specific measures to the Prime Minister for resolution.

3. To enhance the effectiveness of capital utilization, enterprises must take active measures to put idle assets and materials into use or sell them. For obsolete and deteriorated assets and materials that cannot be used anymore, enterprises must liquidate them in accordance with financial management principles and environmental protection, without causing losses. Any discrepancies arising from the liquidation of assets shall be recorded as enterprise income according to current regulations. If an enterprise incurs losses during the liquidation process and lacks the ability to cover them, the Ministry of Finance shall consider reducing the capital. The Ministry of Finance shall guide and monitor the liquidation of assets and materials by enterprises to ensure both the resolution of difficulties for enterprises and the management of state capital and assets.

4. Outstanding receivables and bad debts:

a) For receivables that cannot be recovered, state-owned enterprises must prepare files, identify figures and reasons for outstanding balances, and handle them or submit them to competent authorities for resolution according to the following principles:

+ Debts that are difficult to recover due to individual or organizational errors must clearly define responsibility and resolve according to the law.

+ Debts that are difficult to recover and not due to individual or organizational errors must first be covered by the enterprise's bad debt reserve fund; if the fund is insufficient, the shortfall shall be recorded as expenses or income of the enterprise. For enterprises suffering losses and unable to cover them, financial treatment shall be considered based on the nature and severity of each case. The Ministry of Finance shall provide guidance on financial recording and resolution for enterprises within its authority; in cases exceeding authority, it shall report to the Prime Minister for decision.

b) For receivables owed to the budget that the enterprise has misappropriated for investment and now cannot repay, after the inventory, the enterprise actually has specific projects, the Ministry of Finance shall examine each case to resolve and increase capital for the enterprise; while requiring the enterprise to seriously review and learn from this violation.

c) For outstanding debts of commercial banks, follow the Government's Decision on the project to resolve outstanding debts of banks.

d) The Ministry of Finance shall lead and coordinate with the State Bank of Vietnam and related ministries and sectors to continue guiding the resolution of outstanding debts and the restructuring of debts for state-owned enterprises to improve their financial health, creating conditions to promote the restructuring of enterprises towards self-responsibility for their debts. The Ministry of Finance shall study and develop a proposal to establish a company for purchasing non-performing debts and liquidated assets and materials of enterprises, to be submitted to the Government in the fourth quarter of 2001.

5. The Ministry of Finance shall take the lead and coordinate with relevant ministries and sectors to develop and perfect mechanisms for capital mobilization for enterprises in a manner that creates conditions to encourage and support enterprises to legally supplement their own capital for investment in modernizing production technology, especially in processing industries that employ a large number of workers and produce export goods.

6. Ministries and sectors shall continue to improve, reorganize, and innovate enterprises, state-owned enterprises shall proactively train cadres, particularly leadership teams, to ensure enhanced management capabilities and qualifications to meet the requirements of promoting dynamism, improving efficiency, and competitiveness of enterprises.

7. Based on the results of the comprehensive asset inventory and the reassessment of the value of state-owned enterprise assets at 00:00 hours on January 1, 2000, the Ministry of Finance shall organize the publication of the inventory results and store the inventory data for research and management purposes by the state; the Ministry of Finance shall take the lead and coordinate with the General Statistics Office and relevant ministries and sectors to guide and promulgate a system of inventory reports and software programs for state-owned enterprises to update information and report inventory results at 00:00 hours on January 1 each year in subsequent years.

8. The Ministry of Finance shall compile and report to the Prime Minister the results of implementing the contents of this Directive.

Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally governed cities, and the Board of Directors of State Corporation 91 are responsible for enforcing this Directive./.