Decision No. 155/2004/QĐ-TTg On issuing criteria and classification lists for state-owned enterprises and independent accounting member companies under state-owned corporations

Pursuant to …;

Regarding the issuance of criteria and classification lists for state-owned companies and independent accounting member companies under state-owned corporations

PRIME MINISTER

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

Pursuant to the State Enterprise Law dated November 26, 2003;

To implement Resolution No. 9 and to accelerate the implementation of Resolution No. 3 of the Ninth Plenary Session of the Central Committee of the Communist Party of Vietnam on continuing the restructuring, reforming, developing, and enhancing the efficiency of state-owned enterprises;

At the proposal of the Minister of Planning and Investment,

DECISION:

Article 1. This Decision issues the criteria and classification list for state-owned companies and independent accounting member companies under state-owned corporations.

Article 2. The objects subject to this Decision include independent state-owned companies, independent accounting member companies of state-owned corporations, and existing state-owned corporations.

Article 3. This Decision replaces Decision No. 58/2002/QĐ-TTg dated April 26, 2002 of the Prime Minister and shall take effect fifteen days from the date of publication in the Official Gazette.

Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairmen of People's Committees of provinces and centrally governed cities, and Management Councils of State Corporation 91 are responsible for classifying and implementing the reorganization of state-owned companies and independent accounting member companies under state-owned corporations under their management based on this Decision and report to the Prime Minister in October 2004.

The Ministry of Planning and Investment will coordinate with the Steering Committee for Enterprise Reform and Development to monitor, guide, and urge ministries, sectors, localities, and State Corporation 91 to implement this Decision and regularly compile the situation to report to the Prime Minister.

CRITERIA AND CLASSIFICATION LIST FOR STATE-OWNED COMPANIES AND INDEPENDENT ACCOUNTING MEMBER COMPANIES UNDER STATE-OWNED CORPORATIONS
(Issued together with Decision No. 155/2004/QĐ-TTg dated August 24, 2004 of the Prime Minister)

A. INDEPENDENT STATE-OWNED COMPANIES AND INDEPENDENT ACCOUNTING MEMBER COMPANIES UNDER STATE-OWNED CORPORATIONS (HEREINAFTER REFERRED TO AS COMPANIES)

I. The State holds 100% capital in companies operating in the following industries and fields:

1. Companies operating in certain important fields:

- Production and supply of explosive materials;

- Production and supply of toxic chemicals;

- Production and supply of radioactive substances;

- National power transmission system;

- National and international trunk communication networks;

- Production of cigarette sticks;

- Air traffic control;

- Maritime safety assurance;

- Production and repair of weapons, equipment, and specialized equipment for national defense and security; technical equipment and information security services using cryptographic techniques;

- Companies assigned special national defense and security tasks and companies located in strategically important areas combining economic activities with national defense according to the Prime Minister's decision;

- Printing of currency and valuable certificates; production of metallic money;

- Lottery;

- Publishing houses;

- Production of scientific films, news films, documentary films, and children's films;

- Surveying and mapping;

- Management and maintenance of national railway systems, large-scale airports, and seaports of significant importance according to the Prime Minister's decision;

- Management and exploitation of major upstream water conservancy works and large-scale water conservancy works;

- Planting and protecting headwater forests, protective forests, and special-use forests;

- Drainage in large cities;

- Urban lighting;

- Other important fields according to the Prime Minister's decision.

2. Companies ensuring essential needs for production development and improving the material and spiritual life of ethnic minorities in mountainous regions, remote areas, and border areas.

3. Companies meeting the following conditions: state capital of 30 billion VND or more; average annual revenue contribution to the state budget of 3 billion VND or more over three consecutive years; leading in applying cutting-edge technology and high-tech; playing a significant role in stabilizing the macro-economy and operating in the following industries and fields:

- Oil refining;

- Mining of radioactive ore;

- Construction and repair of air transport vessels;

- Printing of political books and newspapers;

- Wholesale pharmaceuticals, chemical drugs;

- Wholesale foodstuffs;

- Wholesale gasoline and diesel fuel;

- Air and rail transportation.

II. Companies implementing diversified ownership through forms such as shareholding, transfer to workers' collectives, or sale.

1. Companies when undergoing shareholding, the State retains more than 50% of the total shares.

a. Companies with state capital of 20 billion VND or more; average annual revenue contribution to the state budget of 2 billion VND or more over three consecutive years; operating in the industries and fields specified in Point 3 of Section I above and the following industries and fields:

- Power generation;

- Extraction of important minerals: coal, bauxite, copper ore, iron ore, tin ore, gold, precious stones;

- Production of mechanical products: electrical engineering equipment and electrical materials; specialized industrial machinery; machinery and equipment serving agriculture, forestry, and fisheries; construction and repair of sea and rail transport vessels;

- Provision of telecommunications infrastructure;

- Production of black metals (iron, steel) exceeding 100,000 tons/year;

- Production of modern cement with high quality, designed capacity exceeding 1.5 million tons/year;

- Production of chemical fertilizers and plant protection products;

- Production of some consumer goods and food items: salt; milk; beer exceeding 50 million liters/year; alcohol and spirits exceeding 10 million liters/year;

- Extraction, refining, and supply of clean water in large cities;

- Sea transportation;

- Financial and insurance business.

b. Other companies:

- Production of original crop and livestock seeds and semen;

- Offshore fishing services;

- Management and maintenance of important road and inland waterway systems;

- Management and exploitation of water conservancy works;

- Labor cooperation services;

- Exhibition and trade fair premises business.

2. Companies not falling under Point 1 of this Section, when undergoing shareholding, competent state authorities will decide based on specific cases whether the State retains a low percentage of shares or does not retain any shares.

3. Companies that cannot be listed, shall convert ownership through transferring the company to a workers' collective or selling the company according to the Government's regulations.

III. METHODS OF HANDLING COMPANIES NOT LISTED IN SUBITEM I ABOVE THAT HAVE BEEN OPERATING AT A LOSS FOR AN EXTENDED PERIOD AND ARE UNABLE TO IMPLEMENT OWNERSHIP TRANSFER.

1. FOR COMPANIES THAT ARE NOT PROFITABLE AND HAVE INCURRED LOSSES FOR TWO CONSECUTIVE YEARS BUT HAVE NOT YET REACHED THE LEVEL NECESSITATING LIQUIDATION OR BANKRUPTCY, MERGER OR CONSOLIDATION MEASURES SHALL BE IMPLEMENTED.

2. FOR COMPANIES THAT HAVE INCURRED LOSSES FOR THREE CONSECUTIVE YEARS AND HAVE A CUMULATIVE LOSS OF 3/4 OF THE STATE CAPITAL OR MORE, BUT HAVE NOT LOST THEIR ABILITY TO PAY MATURING DEBTS DESPITE APPLYING REORGANIZATION MEASURES AND STILL CANNOT OVERCOME THE SITUATION, LIQUIDATION SHALL BE IMPLEMENTED.

3. FOR COMPANIES THAT HAVE INCURRED LOSSES FOR TWO CONSECUTIVE YEARS AND ARE UNABLE TO PAY MATURING DEBTS, BANKRUPTCY PROCEDURES SHALL BE IMPLEMENTED.

B. STATE GROUP COMPANIES

1. STATE GROUP COMPANIES DECIDED BY THE STATE TO INVEST IN AND ESTABLISH MUST SATISFY THE FOLLOWING CONDITIONS:

a. BELONG TO INDUSTRIES AND SECTORS SUCH AS OIL AND GAS EXPLORATION AND PROCESSING AND WHOLESALE PETROLEUM SALES; ELECTRICITY PRODUCTION AND SUPPLY; COAL EXPLORATION, PROCESSING, AND SUPPLY, AND IMPORTANT MINERALS; METALLURGY; MACHINE MANUFACTURING; CEMENT PRODUCTION; POST, TELECOMMUNICATIONS, AND ELECTRONICS; AVIATION; MARITIME; RAILWAY; CHEMICALS AND CHEMICAL PRODUCTS; PRODUCTION OF CERTAIN CONSUMER GOODS AND IMPORTANT FOOD INDUSTRIES (TEXTILES, PAPER, SALT, COFFEE, RUBBER, WOOD PROCESSING, ALCOHOL, BEER, TOBACCO); MEDICINES AND PHARMACEUTICALS; CONSTRUCTION AND WHOLESALE GRAIN SALES; BANKING; INSURANCE.

b. HAVE STATE CAPITAL OF 500 BILLION VIETNAM DONG OR MORE; FOR SPECIAL INDUSTRIES ACCORDING TO THE PRIME MINISTER'S DECISION, THE STATE CAPITAL MAY BE LOWER, BUT NOT LESS THAN 100 BILLION VIETNAM DONG.

c. HAVE AN AVERAGE ANNUAL CONTRIBUTION TO THE STATE BUDGET OF 50 BILLION VIETNAM DONG OR MORE FOR THE LAST THREE CONSECUTIVE YEARS; FOR SPECIAL INDUSTRIES ACCORDING TO THE PRIME MINISTER'S DECISION, THIS AMOUNT MAY BE LOWER, BUT NOT LESS THAN 20 BILLION VIETNAM DONG.

d. HAVE ADVANCED TECHNOLOGY AND MANAGEMENT LEVELS, HIGH QUALITY PRODUCTS, HIGH EFFICIENCY IN BUSINESS OPERATIONS, AND COMPETITIVE CAPABILITY IN BOTH DOMESTIC AND INTERNATIONAL MARKETS.

2. STATE GROUP COMPANIES THAT DO NOT SATISFY ALL FOUR CONDITIONS ABOVE WILL BE REORGANIZED IN THE DIRECTION OF MERGER, CONSOLIDATION, OR LIQUIDATION AFTER REORGANIZING THEIR MEMBER COMPANIES.