Decision No. 13/2005/QD-TTg on the plan to implement Directive No. 45/CT-TW dated October 22, 2004 of the Politburo.

DECISION OF THE PRIME MINISTER
Regarding the implementation plan for Directive No. 45/CT-TW dated October 22, 2004 of the Politburo

PRIME MINISTER

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

On the basis of Directive No. 45/CT-TW dated October 22, 2004 of the Politburo on accelerating restructuring, reforming, developing, and enhancing the efficiency of state-owned enterprises in 2004-2005,

DECISION:

Article 1. This Decision promulgates the Implementation Plan for Directive No. 45/CT-TW dated October 22, 2004 of the Politburo on accelerating restructuring, reforming, developing, and enhancing the efficiency of state-owned enterprises.

Article 2. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

Article 3. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities are responsible for implementing this Decision./.

IMPLEMENTATION PLAN FOR DIRECTIVE NO. 45/CT-TW

OCTOBER 22, 2004 OF THE POLITBURO

(Annexed to Decision No. 13/2005/QĐ-TTg dated January 14, 2005)

of the Prime Minister)

On October 22, 2004, the Politburo issued Directive No. 45/CT-TW on accelerating restructuring, reforming, developing, and enhancing the efficiency of state-owned enterprises in 2004-2005. To implement this Directive, the Prime Minister requests that Ministries, ministerial-level agencies, governmental agencies, provincial People's Committees under the central government, and State Councils of State-owned Corporations focus on implementing the following tasks in 2005:

1. Continue to disseminate and educate about the contents of Central Resolution No. 3, Central Resolution No. 9 (Session IX), and Directive No. 45/CT-TW of the Politburo to state agencies, organizations, and individuals to enhance awareness about restructuring, reforming, developing, and enhancing the efficiency of state-owned enterprises; strengthen responsibility in directing and organizing the implementation of these tasks; recognize that this is one of the key tasks to contribute to successfully implementing the five-year socio-economic development plan from 2001 to 2005.

2. Ministries, ministerial-level agencies, governmental agencies, provincial People's Committees, and State Councils of State-owned Corporations:

a) Direct the acceleration of progress and completion of restructuring and reforming state-owned enterprises according to plans approved by the Prime Minister; simultaneously, complete the review and classification of lists of enterprises to be listed for shareholding, transfer, sale, lease, and management contracts by the end of the first quarter of 2005, in accordance with the spirit of Central Resolution No. 9 (Session IX) and Decision No. 155/2004/QĐ-TTg dated August 24, 2004 of the Prime Minister, and submit them for approval by the Prime Minister.

In annual performance reviews for cadres, party members, and units, consideration must be given to the results of directing and implementing the restructuring and reforming of state-owned enterprises.

b) Resolutely restructure immediately in 2005 those enterprises suffering prolonged losses and unable to recover through measures such as shareholding, transfer, sale, lease, liquidation, bankruptcy. Enterprises suffering losses without state capital should be sold through public auctions or directly to employees within the enterprise.

c) State-owned companies and independent accounting subsidiaries of state-owned corporations that meet the conditions to continue maintaining 100% state capital as stipulated in Decision No. 155/2004/QĐ-TTg of the Prime Minister and the approved plan must convert their operations to a limited liability company form.

d) Fully and strictly enforce the provisions of Government Decree No. 187/2004/NĐ-CP dated November 16, 2004 on converting state-owned companies into joint-stock companies. Direct the resolution of financial and labor issues before implementing shareholding; avoid internal closed shareholding; sell shares of state-owned companies undergoing shareholding, particularly large-scale companies and those operating effectively in the securities market to attract investment and investors with technological, market, and management experience; based on criteria and lists of state-owned companies and independent accounting subsidiaries of state-owned corporations, and business development plans of shareholding enterprises, determine the registered capital of the company and the state-held capital. For the shareholding of state-owned corporations, the state will initially hold controlling shares.

e) Ministries, localities, and state-owned corporations with state-owned forestry and agricultural farms must complete restructuring, reforming, and development plans for these farms and submit them to the Ministry of Agriculture and Rural Development for review by the end of the first quarter of 2005.

The Ministry of Agriculture and Rural Development must complete the review of restructuring, reforming, and development plans for state-owned forestry and agricultural farms submitted by ministries, localities, and state-owned corporations and submit them for approval by the Prime Minister before June 2005.

f) Complete the revision and supplementation of the Charter of Organization and Operation of state-owned corporations in compliance with the Law on State-Owned Enterprises by the end of the second quarter of 2005. Approve the development strategies for enterprises under their management.

3. The Ministry of Finance must complete a report evaluating the financial situation and business effectiveness of state-owned corporations by the end of the second quarter of 2005, serving as a basis for further restructuring of state-owned corporations in conjunction with industry development strategies.

4. Based on criteria and lists of state-owned corporations, ministries, localities, and state-owned corporations must submit to the Prime Minister by the end of the first quarter of 2005 a list of state-owned corporations to be listed for shareholding in 2005 and 2006.

5. The State Bank must submit a plan for the shareholding of the Southern Key Economic Region Development Bank by the end of the second quarter of 2005 to the Prime Minister.

6. The Steering Committee for Enterprise Reform and Development shall organize monthly meetings with five ministries and three localities with many state-owned companies: Hanoi City, Ho Chi Minh City, Hai Phong City, and ministries: Industry, Agriculture and Rural Development, Transport, Construction, and Commerce to urge, promptly grasp the situation, and take measures to resolve difficulties related to mechanisms, policies, and organizational implementation of restructuring and ownership conversion of state-owned companies.

7. The Ministries, ministerial-level agencies, and agencies under the Government shall submit to the Prime Minister for issuance or issue within their authority legal regulatory documents serving the restructuring, reform, development, and enhancement of the efficiency of state-owned enterprises in accordance with current laws; at the same time ensuring state management and supervision as the state owner of state companies and state capital invested in enterprises. Specifically as follows:

a) Ministry of Finance:

- In the first quarter of 2005, submit to the Prime Minister for decision on establishing the State Capital Investment Corporation to perform the rights and obligations of the state owner and the functions of state capital investment and business as stipulated in Article 60 of the Law on State-Owned Enterprises.

- Study and improve procedures and processes for handling overdue debts to ensure compliance with current regulations while creating conditions to accelerate the restructuring and reorganization of state-owned enterprises.

b) Ministry of Labor, Invalids, and Social Affairs:

- In the second quarter of 2005, submit to the Prime Minister for issuance of regulations on salary and bonuses for General Directors, Directors, Deputy Directors, and Chief Accountants working under contracts; guide the implementation of responsibility allowances and bonuses for state capital representatives in other enterprises.

- Study the establishment of a managerial human resources market; programs for training managers and skilled workers to meet economic and social development requirements and international economic integration.

c) Ministry of Home Affairs, in the second quarter of 2005, submit to the Prime Minister for issuance of criteria for evaluating enterprise managers as a basis for selection, signing contracts, and income distribution for enterprise managers.

d) Ministry of Planning and Investment, in the second quarter of 2005, submit to the Government for issuance of a Decree amending and supplementing certain provisions of Decree No. 63/2001/NĐ-CP on transferring state-owned enterprises and enterprises of political organizations and political-social organizations into limited liability companies with one member.

8. Accelerate the progress of pilot models of new organizational management structures.

a) The Ministries of Industry, Construction, and Transport are responsible for:

- Directing the drafting of proposals for the formation of groups in the oil and gas, electricity, construction sectors, to be submitted to the Prime Minister for approval in the fourth quarter of 2005.

- Directing the drafting of pilot proposals for the Board of Directors to sign contracts with General Directors and Directors in five Corporations: Vietnam Shipbuilding Corporation, Vietnam Automobile Corporation, Electrical Equipment Corporation, Glass and Construction Ceramics Corporation, Hong River Construction Corporation, to be submitted to the Prime Minister in the first quarter of 2005.

b) The Ministries and ministerial-level agencies shall proactively study and propose to the Prime Minister the formation of groups outside the sectors specified in point a of this item in 2006.

9. Organize mid-term reviews of new organizational management models:

a) In the second quarter of 2005, the Ministry of Planning and Investment shall take the lead and coordinate with the Steering Committee for Enterprise Reform and Development to organize a mid-term review of the parent company-subcompany model, draw lessons to perfect relevant regulations (if necessary), and expand this model.

b) The Steering Committee for Enterprise Reform and Development, in the fourth quarter of 2005, shall organize a mid-term review of the pilot model of the Board of Directors signing contracts with General Directors and Directors.

10. Strengthen the system of Enterprise Reform Committees at all levels: the Enterprise Reform Committee of the Ministry shall be headed by the Minister or Deputy Minister; the provincial level by the Chairman or Vice-Chairman; the state-owned corporation level by the Chairman of the Board of Directors or General Director. Each Committee shall have a support unit, including dedicated staff, to provide advisory services, inspection, and supervision of enterprise restructuring and reform work, identify and resolve issues within their authority or refer them to those with authority to decide.

The Ministries, ministerial-level agencies, agencies under the Government, and People's Committees of provinces and centrally-administered cities assigned the main responsibility for organizing research and drafting proposals shall cooperate with related agencies to submit proposals to the Prime Minister according to the prescribed schedule./.