Decision No. 177/1999/QD-TTg On the organization and operation of the State Enterprise Restructuring and Shareholding Fund

Pursuant to …;

Regarding the organization and operation of the Fund for Supporting the Restructuring and Shareholding Reform of State-Owned Enterprises

In order to promote the active and steady implementation of the restructuring and shareholding reform of state-owned enterprises;

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PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to Decree No. 44/1998/NĐ-CP dated June 29, 1998 of the Government on the transformation of state-owned enterprises into joint stock companies;

Establishing the Fund for Supporting the Restructuring and Shareholding Reform of State-Owned Enterprises at central, local levels, and State Corporations established by the Prime Minister's Decision (State Corporation 91) to address employee benefits and provide financial support to state-owned enterprises during the restructuring process and shareholding reform (hereinafter referred to as the Enterprise Restructuring Fund).

At the proposal of the Minister of Finance,

DECISION:

Article 1. The Enterprise Restructuring Fund shall be used for:

Article 2. The Enterprise Reorganization Fund shall be used for:

1. Training and retraining costs to create new job opportunities for surplus labor during the ownership transfer and enterprise restructuring process.

2. Subsidies for employees who voluntarily terminate their employment contracts, lose their jobs during enterprise restructuring, and when state-owned enterprises undergo ownership transfer according to current regulations (after utilizing the Unemployment Prevention Fund).

3. Financial assistance to employees in state-owned enterprises undergoing shareholding reform whose state capital is insufficient to purchase shares at preferential prices within the enterprise.

4. Supplementing capital for state-owned enterprises prioritized for consolidation and investment in state-owned enterprises that have completed shareholding reform according to approved plans by competent authorities.

Article 3. Sources of the Fund:

In principle: The sources of funds are derived from the proceeds of the restructuring of state-owned enterprises, shareholding reform, sale, lease management, and ownership transfer (hereinafter referred to as ownership transfer) from state-owned enterprises under localities transferred to the Local Enterprise Restructuring Fund, from state-owned enterprises under State Corporation 91 transferred to the State Corporation 91 Enterprise Restructuring Fund; from state-owned enterprises under Ministries and sectors and central budget funds allocated annually transferred to the Central Enterprise Restructuring Fund; and from local budget funds allocated transferred to the Local Enterprise Restructuring Fund.

Specific sources.

1. Proceeds from the sale of state-owned shares in enterprises undergoing ownership transfer.

2. Dividends and other income from state-owned shares in joint-stock companies and limited liability companies.

3. Proceeds from the sale of unused assets, accumulated assets, liquidation assets, and recovered bad debts excluded from the enterprise value during ownership transfer.

4. Proceeds from the liquidation of state-owned assets when state-owned enterprises are dissolved.

5. Financial support from organizations and individuals both domestically and internationally for the restructuring and shareholding reform of state-owned enterprises.

6. Annual central government budget allocations (if applicable).

Article 4. The Enterprise Restructuring Fund shall be organized at the following levels:

1. The Central Enterprise Restructuring Fund shall be centralized into a single account managed by the Minister of Finance. The sectoral management agency and the Ministry of Finance shall approve the annual usage plan of the Fund. Enterprises benefiting from the Fund's expenditures, implementing agencies, and settlement with the Ministry of Finance.

2. The Local Enterprise Restructuring Fund (hereinafter referred to as the Local Enterprise Restructuring Fund) shall be centralized into a single account under the Department of Finance and Price Control, managed by the People's Committee Chairman of the province or centrally-administered city (hereinafter referred to as the provincial People's Committee). The Director of the Department of Finance and Price Control assists the provincial People's Committee in managing and operating the Fund.

3. The Enterprise Restructuring Fund of State Corporation 91 shall be centralized into a separate account of the Corporation managed by the Board of Directors and approving the usage plan of the Fund. The General Director organizes the implementation and settlement of the Fund with the Ministry of Finance.

4. For independent accounting state-owned enterprises directly under Ministries and provincial People's Committees, the State Enterprise Director, or the Board of Directors (for enterprises with a Board of Directors) may use the proceeds from selling shares to cover the expenses stipulated in Clause 1 and 2 of Article 2 of this Decision. The remaining amount shall be deposited into the Central Enterprise Restructuring Fund (for enterprises under central Ministries and sectors) or the Local Enterprise Restructuring Fund (for enterprises under provincial People's Committees). If the enterprise needs to be strengthened and developed, the Fund management agency will prioritize allocating funds back to the enterprise according to the approved plan.

Article 5. Management of the Fund:

1. The Enterprise Restructuring Fund can only be disbursed in accordance with the provisions of Article 2 of this Decision.

2. All revenue and expenditure activities of the Fund must be recorded separately and supported by legal documentation.

3. The Chairman of the provincial People's Committee and the Board of Directors of State Corporation 91 are responsible for managing the Fund, reporting regularly and periodically as prescribed by the Minister of Finance.

4. The Minister of Finance is responsible for coordinating the Fund nationwide to serve the restructuring of enterprises and shareholding reform; compiling and settling annually the revenues and expenditures of the National Enterprise Restructuring Fund.

Article 6. Responsibilities of Ministries, provincial People's Committees, and the Board of Directors of State Corporation 91:

1. Cooperating with the management agency of the Central Enterprise Restructuring Fund to inspect and urge state-owned enterprises under their management and locality to fully remit the remaining proceeds from ownership transfer after using the amounts specified in Clause 1 and 2 of Article 2 of this Decision into the Fund.

2. Deciding on the policy for employees in state-owned enterprises under their management when implementing ownership transfer.

3. Reviewing, deciding, and disbursing funds for financial support needs as stipulated in Article 2 of this Decision. For sectoral management agencies, after making decisions, they must notify the Ministry of Finance for disbursement.

4. Inspecting the costs for ownership transfer and the use of the Enterprise Restructuring Fund in enterprises under their management; ensuring the Fund is used for its intended purposes, in accordance with regulations, and effectively for the tasks outlined in Article 2 of this Decision.

Article 7. Responsibilities of the Ministry of Finance:

1. After obtaining approval from

2. Disbursements from this Fund must ensure proper and effective use in the ownership transfer of enterprises.

3. Direct and organize the inspection and supervision of the use of funds from the Enterprise Restructuring Fund.

4. Coordinate the sources of funds of the Enterprise Restructuring Fund at the local level and the Enterprise Restructuring Fund of the General Corporation 91 when deemed necessary.

5. Be responsible for state management over the activities of the Enterprise Restructuring Fund nationwide.

Article 8The Ministry of Labor - Invalids and Social Affairs shall be responsible for coordinating with the Ministry of Finance to guide the use of the Fund in training and retraining workers to create new job opportunities and provide assistance to workers who voluntarily terminate their labor contracts and lose their jobs due to the transfer of ownership of state-owned enterprises.

Article 9. THIS DECISION SHALL TAKE EFFECT 15 DAYS FROM THE DATE OF SIGNATURE.

Article 10. The ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, chairpersons of provincial people's committees under the central government, and the Board of Directors of the General Corporation 91 are responsible for implementing this Decision.