Directive No. 17/NN-TCKT-CT on the organization and implementation of the shareholding reform of state-owned enterprises

DIRECTIVE

"On the organization and implementation of state-owned enterprise shareholding"

Implementing Resolution No. 202/CT of the Party's Eighth National Congress, Circular No. 63/TB - TW of the Politburo, Decision No. 202/CT, and Decree No. 28/CP of the Government, the Ministry of Agriculture and Rural Development has repeatedly organized the dissemination of policies and guidelines on shareholding among leaders and managers of enterprises, but progress has been very slow; the organization and implementation at the grassroots level have not been proactive or widespread; after three years of pilot programs, only one enterprise has successfully transformed into a joint-stock company (VIFOCO Feed Company).

Currently, the Ministry manages 17 State Holding Companies, directly managing 13 State Holding Companies "90", 30 affiliated enterprises, including 425 independent accounting entities with legal personality. In comparison to the criteria for shareholding set forth in Decree No. 28/CP, except for public welfare enterprises, almost all state-owned enterprises under the Ministry fall within the scope of shareholding (approximately 400 enterprises).

Adhering to Directive No. 658/TTg dated August 20, 1997 of the Prime Minister on accelerating the implementation of state-owned enterprise shareholding.

The Minister of Agriculture and Rural Development hereby instructs:

1/ The Ministry’s Steering Committee for Shareholding:

* To continue organizing the dissemination of policies and guidelines on shareholding for the leadership of State Holding Companies and enterprises that did not attend the Ministry's training conference on September 5 and 6, 1997.

* To compile the classification of enterprises to develop plans for shareholding:

+ Public welfare enterprises

+ State-owned enterprises required to retain 100% capital

+ State-owned enterprises only need to hold controlling shares or special shares.

* To organize extensive propaganda campaigns for cadres and party members regarding shareholding. The Party must provide individual education, trade unions should mobilize and organize study sessions and talks on shareholding, newspapers and magazines should regularly publish articles and photos promoting shareholding.

* To strengthen and supplement the steering committee for shareholding, assign responsibilities for guidance, select some officers and specialists knowledgeable about shareholding policies and procedures to form two teams (North and South) to assist the steering committee in providing consulting services to shareholding enterprises; prepare conditions for establishing a consultancy company for enterprises and shareholding in agriculture and rural development.

* To develop specific implementation plans for the nine enterprises that have registered for shareholding in 1997 and plans for 1998 for State Holding Companies and affiliated enterprises. The steering committee and State Holding Companies should continue selecting units such as the former Lam Son Sugar Factory, other products from production lines like cakes, candies, bio-fertilizers, sugar, and fruit factories; tea processing lines... to conduct shareholding trials by the end of 1997.

* To organize training and capacity building for officers of grassroots steering committees for shareholding and officers capable of participating in the management of joint-stock companies.

* To draft proposals for research on policies towards farmers and workers in forestry and plantations to ensure preferential treatment for them as shareholders when they supply raw materials to agricultural and forestry product manufacturing and trading enterprises during the shareholding process; to study models of joint-stock irrigation companies for submission to the Government.

* To provide full documentation and government texts on shareholding to State Holding Companies, member enterprises, and direct affiliates of the Ministry.

2/ State Holding Companies and Direct Affiliates of the Ministry:

* Chairmen of Management Boards and General Directors of enterprises under the Ministry who did not attend the training conference on state-owned enterprise shareholding on September 5 and 6, 1997 (list attached) must submit reports and seek opinions from the Ministry’s steering committee for shareholding, and organize meetings to disseminate national and ministry documents throughout their units.

* All State Holding Companies and Direct Affiliates of the Ministry, after disseminating policies and guidelines on shareholding among key cadres, must:

+ Establish a steering committee for shareholding and report to the Ministry for approval.

+ Compare with the conditions and forms of shareholding, develop steps for implementing the registration of joint-stock enterprises in 1998 and subsequent years, and report to the Ministry’s steering committee for shareholding.

+ Direct the implementation of shareholding according to the plan and guidance of the Ministry.

+ Specifically, State Holding Companies "91" when developing plans for classifying enterprises for shareholding and implementation plans must report to the Government simultaneously and report to the Ministry for consolidation and monitoring.

+ State Holding Companies and enterprises that have received the Ministry's notification and decision to convert into joint-stock companies in 1997 must focus on directing to complete on time.

+ Each quarter, the shareholding steering committee must submit written reports to the Ministry for consolidation and reporting to the Prime Minister.

3. Heads of agencies under the Ministry, Chairmen of Management Boards, General Directors of State Holding Companies, and Directors of Direct Affiliates of the Ministry are responsible for strictly implementing this directive and regularly reporting progress to the Ministry’s steering committee for shareholding for consolidation and reporting to the Ministry leadership and the Government./.