Directive No. 16/CT-TTg on Strengthening Thrift Practices and Combating Wastefulness in the Management, Exploitation, and Utilization of Resources, Capital, Assets, and Labor at State-Owned Enterprises

DIRECTIVE

On Enhancing Thrift and Combating Waste in the Management, Exploitation, and Utilization of Resources, Capital, Assets, and Labor at State-Owned Enterprises

In recent times, various sectors and levels have paid attention to implementing thrift and combating waste, achieving certain results.

State-owned enterprises currently manage, exploit, and utilize many resources, capital, and assets belonging to the state. However, at some enterprises, management, exploitation, and utilization of resources are still wasteful and not thrifty, especially land and mineral resources; the debt ratio has increased significantly; investment outside the main business sector remains large but divestment from such investments faces considerable difficulties; recruitment and labor utilization, as well as management cadre deployment, remain inadequate; salaries and bonuses are not linked to labor productivity and business performance.

Given this situation, to enhance thrift and combat waste in the management, exploitation, and utilization of resources, capital, assets, and labor at state-owned enterprises, the Prime Minister requests Ministers, Heads of ministerial-level agencies and agencies under the Government, other central agencies, Chairpersons of People's Committees of provinces and centrally-run cities, Chairpersons of Councils of Members, Chairpersons of companies, General Directors, Directors of economic groups, joint-stock corporations, state-owned enterprises, and representatives authorized by the state to implement the following tasks according to their assigned functions and responsibilities:

1. Enhance thrift and combat waste in the management, exploitation, and utilization of resources at state-owned enterprises:

a) Review the use of land, mineral resources, forest resources, and water resources to identify and promptly address units using them wastefully and not thriftily.

b) Firmly handle and recover areas of land and water surfaces used in violation of laws; land used contrary to planning, wastefully, inefficiently, left idle, and illegally occupied.

c) Review, reorganize, and resolve surplus real estate assets used for purposes not stipulated in Decision No. 09/2007/QD-TTg dated January 19, 2007, of the Prime Minister on the reorganization and resolution of state-owned real estate assets and Decision No. 140/2008/QD-TTg dated October 21, 2008, of the Prime Minister amending and supplementing Decision No. 09/2007/QD-TTg.

d) Strictly control the issuance and management of resource and mineral exploitation permits; suspend operations and revoke exploitation permits from enterprises causing waste or failing to meet environmental protection requirements as prescribed by law.

2. Enhance thrift and combat waste in the management and utilization of state capital and assets at state-owned enterprises:

a) Review investment decisions and capital contributions for expanding business activities to ensure they align with the main business of the enterprise; avoid scattered investments leading to waste and loss of state capital; decisively cut and eliminate ineffective and unnecessary projects.

b) Study solutions and timelines to expedite divestment from industries not within the main business scope of the enterprise.

c) Strengthen management, inspection, and supervision of investment by project sponsors and disbursement of construction investment funds in compliance with legal regulations. Seriously implement transparency in managing and utilizing state capital and assets, including publicizing established norms, standards, and systems; publicizing the use of state budget and allocated financial sources; publicizing procurement, management, and utilization of state assets; publicizing plans, lists, and funding sources for investment projects.

d) Review and supplement economic and technical norms regarding raw material consumption; norms for machinery and equipment utilization; wage rates and other costs based on ensuring business efficiency and compliance with legal provisions. Enterprises that have not established rules, standards, and norms in these areas must urgently develop them for implementation.

3. Enhance thrift and combat waste in the management and utilization of labor at state-owned enterprises:

a) Review and amend labor recruitment rules and cadre appointment standards in enterprises. Enterprises that have not issued such rules and standards must urgently develop them for implementation.

b) Review and supplement labor norms, determine positions and job titles within enterprises as a basis for effective labor recruitment and utilization. Enterprises without labor norms or job titles must urgently develop them for implementation.

c) Review and restructure key management cadres in state-owned enterprises to ensure efficiency, effectiveness, and compliance with prescribed staffing levels.

d) Appointments and reappointments of leadership and management positions or appointments of state representatives in enterprises with state capital contributions must comply with standards, conditions, procedures, formalities, and other requirements stipulated in Decree No. 66/2011/NĐ-CP dated August 1, 2011, of the Government on applying the Law on Civil Servants and Public Officials to leadership and management positions in wholly state-owned limited liability companies and persons appointed as state representatives in enterprises with state capital contributions.

đ) Ensure transparency and democracy in accordance with state regulations on labor recruitment and cadre appointment; recruit additional labor and appoint cadres only when truly necessary.

e) Strengthen inspection and supervision; firmly impose disciplinary actions, dismiss, or terminate employment contracts with cadres and workers who engage in wasteful behavior; firmly address cases of improper salary and bonus payments not linked to labor productivity and business outcomes.

4. Implementation organization

a) Economic groups, state-owned corporations, state enterprises:

- Develop an Action Program to enhance thrift practices and combat waste in the management, exploitation, and utilization of resources, capital, assets, and labor within the enterprise. The Action Program must clearly specify objectives, indicators, tasks, solutions, levels of reward, and clear responsibilities for each individual in each field;

- Regularly report on the implementation situation quarterly to the owner and the Ministry of Finance before the 20th day of the last month of each quarter.

b) Ministries, ministerial-level agencies, government-affiliated agencies, other central agencies, People's Committees of provinces and centrally-administered cities:

- Focus on directing units, organizations, and individuals under their jurisdiction to strictly and effectively implement this Directive;

- Regularly report on the implementation situation quarterly to the Ministry of Finance before the 20th day of the last month of each quarter.

c) The Ministry of Finance shall aggregate, monitor the situation and results of the Directive's implementation by ministries, agencies, localities, economic groups, state-owned corporations, and state enterprises; regularly report quarterly to the Prime Minister./.