Decision No. 174/2002/QD-TTg On the organization and operation of the Fund for Supporting the Reorganization and Shareholding Reform of State-Owned Enterprises

DECISION OF THE PRIME MINISTER

Regarding the organization and operation of the Fund for the reorganization and shareholding transformation of state-owned enterprises to assist in the reorganization and shareholding transformation of state-owned enterprises into joint-stock companies;

PRIME MINISTER

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

Pursuant to Decree No. 64/2002/NĐ-CP dated June 19, 2002 of the Government on the conversion of state-owned enterprises into joint-stock companies; 6 Decree No. 103/1999/NĐ-CP dated September 10, 1999 and Decree No. 49/2002/NĐ-CP dated April 24, 2002 of the Government on the transfer, sale, lease, and management of state-owned enterprises; successfully;

Government Decree No. 103/1999/NĐ-CP dated September 10 pursuant to Decree No. 249/1999/ND-CP dated September 1999 and Decree No. 49/2002/NĐ-CP dated April 24, 2002 of the Government on the transfer, sale, lease, and management of state-owned enterprises;

Pursuant to Decree No. 41/2002/NĐ-CP dated April 11, 2002 of the Government on policies for redundant workers due to the reorganization of state-owned enterprises; 2002 of the Government regarding policies for surplus labor due to the reorganization of state-owned enterprises;

At the proposal of the Ministry Ministry of Science and Technology The following amendments are made to Article 2 of Decision No. 1247/2003/QĐ-NHNN dated October 20, 2003 of the Governor of the State Bank of Vietnam promulgating regulations on the banking code system used in transactions through the State Bank of Vietnam:

DECISION:

Article 1Establish the Fund for the reorganization and shareholding transformation of state-owned enterprises at the central level, provinces, centrally-administered cities, and state-owned holding corporations established under Decision No. 90/TTg and Decision No. 91/TTg dated March 7, 1994 of the Prime Minister (hereinafter referred to as state-owned holding corporations) to address the treatment of workers and provide financial support to state-owned enterprises during the reorganization and ownership conversion process (hereinafter referred to as the Reorganization Enterprise Fund). The Reorganization Enterprise Fund shall be used for:1. Supporting state-owned enterprises to pay severance benefits according to the Labor Code for workers who lose their jobs at the time of conversion but do not fall within the scope of application of Decree No. 41/2002/NĐ-CP dated April 11, 2002 of the Government on policies for redundant workers due to the reorganization of state-owned enterprises.

Article 22. Supporting joint-stock companies converted from state-owned enterprises to pay severance benefits for workers who lose their jobs after transferring from state-owned enterprises to work in joint-stock companies according to Clause 6, Article 27 of Decree No. 64/2002/NĐ-CP dated June 19, 2002 of the Government.

In cases where workers in state-owned enterprises have implemented the conversion according to Decree No. 44/1998/NĐ-CP dated June 29, 1998 and Decree No. 103/1999/NĐ-CP dated September 10, 1999 of the Government and lost their jobs or were laid off before the effective date of Decree No. 64/2002/NĐ-CP dated June 19, 2002 of the Government, they will be provided with assistance by the Reorganization Enterprise Fund to cover the period during which they worked in the state sector but did not receive severance benefits as stipulated by the Labor Code. 3. Supporting state-owned enterprises to train redundant workers at the time of conversion to arrange new jobs in joint-stock companies.

4. Supplementing capital for state-owned enterprises that have been transformed into joint-stock companies to ensure sufficient state capital in the charter capital structure of joint-stock companies. 5. Providing capital support to state-owned enterprises facing difficulties in payment capacity to handle overdue debts and social insurance arrears before implementing the conversion.

6. Supporting the settlement of debts owed by state-owned enterprises when the State sells enterprises and the proceeds from the sale are insufficient to settle the debts. 7. Providing capital support to state-owned enterprises for investment in technological innovation, enhancing competitiveness, and developing the business.

Sources of the Fund: In principle: The sources of the Fund are formed through the reorganization of state-owned enterprises, shareholding transformation, sales, leasing, and management activities of state-owned enterprises, revenues collected from state-owned enterprises under localities transferred to the Reorganization Enterprise Fund at the locality level, revenues collected from state-owned enterprises under state-owned holding corporations transferred to the Reorganization Enterprise Fund at the state-owned holding corporation level, revenues collected from state-owned enterprises under ministries and sectors and central budget funds allocated annually transferred to the Reorganization Enterprise Fund at the central level, and local budget funds transferred to the Reorganization Enterprise Fund at the locality level.

Specific sources of the Fund include: 1. Revenues of the State when implementing the reorganization and ownership conversion of state-owned enterprises, including proceeds from the liquidation of assets when state-owned enterprises are dissolved or bankrupt (if any), proceeds from the sale of assets and recovery of difficult-to-collect debts excluded from the value of the enterprise at the time of ownership conversion.

Among them: a) Revenues from the reorganization and full ownership conversion of independent state-owned enterprises or dependent units under the management of provinces and centrally-administered cities are transferred to the Reorganization Enterprise Fund at the locality level.

b) Revenues from the reorganization and full ownership conversion of wholly-owned enterprises or dependent units of member enterprises under state-owned holding corporations are transferred to the Reorganization Enterprise Fund at the state-owned holding corporation level. c) Revenues from the reorganization and full ownership conversion of independent state-owned enterprises or dependent units under ministries, agencies equivalent to ministries, and government-affiliated agencies are transferred to the Reorganization Enterprise Fund at the central level.

Specifically, the portion of profits distributed and the recovered state capital in joint-stock companies and limited liability companies with state capital contributions are handled according to Article 12 and Article 14 of Decree No. 78/2000/NĐ-CP dated December 6, 2000 of the Government promulgating the Management Regulations for State Capital in Other Enterprises.

Article 32. Financial support from organizations and individuals for the reorganization and ownership conversion of state-owned enterprises.

3. Central government budget funds allocated annually (if any). Organization and management of the Reorganization Enterprise Fund: 1. The Reorganization Enterprise Fund is organized at the following levels:

a) The Reorganization Enterprise Fund at the central level is centralized in one account opened at the National Treasury, managed by the Minister of Finance, to support the reorganization and ownership conversion of enterprises directly under ministries, agencies equivalent to ministries, and government-affiliated agencies as stipulated in Article 2 of this Decision.

b) The Reorganization Enterprise Fund at the provincial and centrally-administered city levels (hereinafter referred to as the Reorganization Enterprise Fund at the locality level) is centralized in one account opened at the National Treasury, managed by the Chairman of the People's Committee of the province or centrally-administered city, to support the reorganization and ownership conversion of enterprises directly under the People's Committee of the province as stipulated in Article 2 of this Decision.

c) The Reorganization Enterprise Fund at the state-owned holding corporation level is centralized in a separate account of the state-owned holding corporation, managed by the Board of Directors, to support the reorganization and ownership conversion of enterprises under the state-owned holding corporation as stipulated in Article 2 of this Decision and is responsible for settling accounts with the Ministry

a)Revenues from the reorganization and full ownership transfer of independent state-owned enterprises or their affiliated units under the management of centrally governed provinces and cities shall be transferred to the local enterprise reorganization fund.

b)Revenues from the reorganization and full ownership transfer of member enterprises or their affiliated units under state-owned corporations shall be transferred to the corporation enterprise reorganization fund.

c)Revenues from the reorganization and full ownership transfer of independent state-owned enterprises or their affiliated units under ministries, ministerial-level agencies, and government-affiliated agencies shall be transferred to the central enterprise reorganization fund.

Notwithstanding, the portion of profits distributed and the recovered state capital in joint-stock companies and limited liability companies with state capital contributions shall be handled according to the provisions of Article 12 and Article 14 of Decree No. 78/2000/NĐ-CP dated December 6, 2000 of the Government promulgating the Regulations on State Capital Management in other enterprises.

2.Funds provided by organizations and individuals for the reorganization and ownership transfer of state-owned enterprises.

3.Budget funds allocated annually (if any).

Article 4.Organization and management of the Enterprise Reorganization Fund:

1.The Enterprise Reorganization Fund is organized at the following levels:

a)The Central Enterprise Reorganization Fund is consolidated from a single account opened at the National Treasury, managed by the Minister of Finance, to support the reorganization and ownership transfer activities of enterprises directly under ministries, ministerial-level agencies, and government-affiliated agencies as stipulated in Article 2 of this Decision. The central authority shall concentrate from an account opened at the State Treasury managed by the Minister of Finance to support the restructuring and ownership transfer activities of enterprises directly under the Ministry, agencies at the ministerial level, and government-affiliated agencies in accordance with the provisions set forth in Article 2 of this Decision. People's Committees of provinces and centrally governed cities manage accounts to support the restructuring and ownership transfer activities of enterprises directly under

b)The Enterprise Reorganization Fund of provinces and centrally governed cities (hereinafter referred to as the Local Enterprise Reorganization Fund) is consolidated into a single account opened at the National Treasury, managed by the Chairman of the People's Committee of the province or centrally governed city, to support the reorganization and ownership transfer activities of enterprises directly under the People's Committee of the province as stipulated in Article 2 of this Decision. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).the People's Committee of the province in accordance with the provisions set forth in Article 2 of this Decision. provinces and centrally governed cities, and the Boards of Directors of state-owned holding corporations are responsible for implementing this Decision./.

c)The Enterprise Reorganization Fund of State-owned Corporations is consolidated into a separate account of the Corporation managed by the Board of Directors tosupport the reorganization and ownership transfer activities of enterprises under the Corporation as stipulated in Article 2 of this Decision and is responsible for settlement with the Ministry Financial matters shall be implemented in accordance with current regulations.

2.The Enterprise Restructuring Fund at all levels may only disburse in strict compliancewith the provisions set forth in Article 2 of this Decision. All revenue andexpenditure activities of the Fund must be recorded separately and have adequatereceipts.

Article 5Responsibilities of Ministries, Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).provincial People's Committees, Management Boards of State-owned Joint StockCompanies:

1.Supervise and urge state-owned enterprises under their management to fully remitall revenues due to the State from restructuring and ownership transfer activitiesinto the corresponding level Enterprise Restructuring Fund.

2.Review and approve support plans for enterprises within their jurisdiction inaccordance with the State’s regulations. Among which: decisions approving supportplans for enterprises under central ministries and sectors must be made afterconsultation and agreement with the central fund management agency.

3.Direct the direct managers of state capital in enterprises to urge enterprises tofully and promptly remit all amounts due to the Enterprise Restructuring Fund,monitor enterprises in implementing reporting, settlement, and proper use ofsupport funds.

Article 6Responsibilities of enterprises implementing restructuring and ownership transfer:

1.Fully and promptly remit all amounts due to the corresponding level EnterpriseRestructuring Fund.

2.Prepare support plans and submit them to the competent authority for approval.

3.Receive funds to address employee policies, ensuring proper use according topurpose and regulations; implement settlement of supported funds with the fundmanagement agency.

, Clause 1, Clause 2 Article 7a of this Regulation.Responsibilities of the Ministryof Finance:

1.Be responsible for national administration over all activities of the EnterpriseRestructuring Fund nationwide.

2.Issue Regulations on Management, Collection, and Utilization of the EnterpriseRestructuring Fund's Capital after obtaining the Prime Minister's approval.

3.Direct and organize supervision over the utilization of the EnterpriseRestructuring Fund's capital system nationwide.

4.The Minister of Finance has the authority to adjust capital between localEnterprise Restructuring Funds and those of State-owned Joint Stock Companies whendeemed necessary.

5.Ensure that the Enterprise Restructuring Fund is used for its intended purposeand effectively in the process of enterprise ownership transfer. in matters related to ownership transfer of enterprises.

6.Direct the compilation and evaluation of the management and utilization of theEnterprise Restructuring Fund nationwide; organize settlement of revenue andexpenditure of the Enterprise Restructuring Fund under State-owned Joint StockCompanies.

Article 8The Ministry of Labor, Invalids andSocial Affairs is responsible for coordinating with the Ministry of Finance to guide the use of the Fund in training and retraining labor forceto address new employment and provide assistance to employees voluntarilyterminating their labor contracts or losing their jobs due to ownershiptransfer of state-owned enterprises but not covered by Government Decree No. 41/2002/NĐ-CPof April 11, 2002.

Article 9.This Decision replaces Decision No. 177/1999/QĐ-TTg dated August 30, 1999, and takeseffect from July 4, 2002 (the effective date of Government Decree No. 64/2002/NĐ-CPdated June 19, 2002 regarding the transformation of state-owned enterprises intopublicly-traded companies).

Article 10. Ministers, Heads of agencies equivalent to ministries, Heads of governmentagencies, Chairmen of provincial People's Committees directly under the CentralGovernment, Management Boards of State-owned Joint Stock Companies areresponsible for implementing this Decision./. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of the People's Committees of provinces and centrally governed cities, Boards of Directors of state-owned corporations are responsible for implementing this Decision./. tỉnh,thành phố trực thuộc Trung ương, Hội đồng quản trị các Tổng công ty nhà nướcchịu trách nhiệm thi hành Quyết định này./.