Decision No. 127/2006/QD-TTg on approving the project to transfer the Vietnam Electric Equipment Corporation to operate under the holding company - subsidiary model and pilot the Board of Directors signing contracts with the General Director.

Pursuant to …;

Regarding the approval of the Project to transfer the Vietnam General Electric Equipment Corporation to operate under the holding company-subcompany model and pilot the Board of Directors of the Corporation signing contracts with the General Director

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on State-Owned Enterprises No. 14/2003/QH11 dated November 26, 2003;

Pursuant to the Enterprise Law No. 13/1999/QH10 dated June 12, 1999;

Pursuant to the Government Decree No. 153/2004/NĐ-CP dated August 9, 2004 on the management organization of State-owned Corporations and the transformation of State-owned Corporations and independent State-owned projects into the holding company-subcompany model;

Considering the proposal of the Minister of Industry.

Pursuant to …;

Article 1. Approves the Project to transfer the Vietnam General Electric Equipment Corporation to operate under the holding company-subcompany model, with the main contents as follows:

1. The holding company - Vietnam General Electric Equipment Corporation is a state-owned enterprise, having its own legal personality, seal, and bank accounts at the National Treasury and banks; directly conducting production and business activities and investing capital in sub-companies and associated companies; responsible for preserving and developing state capital within the corporation and investments in sub-companies and associated companies.

International trade name: Vietnam Electrical Equipment Corporation.

Abbreviation: VEC.

Head office: No. 41 Hai Ba Trung Street, Hoan Kiem District, Hanoi City.

The holding company is formed based on the restructuring of the Office of the Vietnam General Electric Equipment Corporation and the Limited Liability Company of Electrical Measurement Equipment.

The management structure of the holding company includes: the Board of Directors, the Supervisory Board, the General Director, and the supporting staff.

2. Sub-companies have their own legal personality, assets, names, management structures, and bear civil liability within the scope of the company's assets according to the relevant laws corresponding to each company's legal form. Specifically as follows:

a) Companies that have been listed:

- Gas Appliance Joint Stock Company No. 1.

- Transformer Manufacturing and Electrical Material Joint Stock Company Hanoi.

b) Companies to be converted into joint stock companies in 2006 and 2007:

- Vietnam-Hungary Electrical Machinery Manufacturing Limited Liability Company.

- Electrical Equipment Limited Liability Company.

- Vietnam Wire and Cable Electrical Limited Liability Company.

- Materials and Construction Company.

3. The charter capital structure, industry, and business operations of the holding company and sub-companies; organization and management of the holding company; relationships between the holding company and the state owner and sub-companies and associated companies are stipulated in the Charter of the holding company's organization and operation.

4. The holding company is responsible for inheriting all legal rights, obligations, and legitimate interests of the Vietnam General Electric Equipment Corporation.

Electrical technical equipment.

Article 2. Agrees to pilot the Board of Directors signing contracts with the General Director at the holding company - Vietnam General Electric Equipment Corporation.

Article 3.

1. Entrust the Minister of Industry:

- To direct the implementation of the Project to transfer the Vietnam General Electric Equipment Corporation to operate under the holding company-subcompany model; decide on the establishment of the holding company and the formation of sub-companies as stipulated in Article 1 of this Decision according to current regulations; direct the determination of charter capital and approval of the Charter of the holding company's organization and operation.

- To approve the Pilot Regulation of the Vietnam General Electric Equipment Corporation's Board of Directors signing contracts with the General Director and bear responsibility for directing the implementation in accordance with current regulations.

2. Entrust the Minister of Finance to approve the Financial Management Regulation of the holding company.

Article 4. This Decision takes effect 15 days from the date of publication in the Official Gazette.

Ministers of the Ministries of Industry, Finance, Planning and Investment, Home Affairs, Labor, Invalids and Social Affairs, Governor of the State Bank of Vietnam, and Heads of related agencies are responsible for implementing this Decision./.