Decision No. 183/2001/QD-TTg On the Action Program of the Government to Implement the Resolution of the Third Plenary Session of the Central Committee of the Communist Party of Vietnam, Term IX

Pursuant to …;

Regarding the Government's Action Program to Implement the Resolution of the Fifth Plenary Session of the Ninth Central Committee of the Party

The Third Plenary Session of the Ninth Central Committee of the Party

____________________________ 

PRIME MINISTER

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

Pursuant to Resolution No. 12/2001/NQ-CP dated November 2, 2001 of the Government,

DECISION:

Article 1. Issued with this Decision is the Program of Action of the Government to Implement the Resolution of the Third Plenary Session of the Ninth Central Committee of the Party.

Article 2. This Decision takes effect from the date of signature.

Article 3. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city People's Committees are responsible for implementing this Decision.

PROGRAM OF ACTION OF THE GOVERNMENT TO IMPLEMENT THE RESOLUTION OF THE THIRD PLENARY SESSION OF THE NINTH CENTRAL COMMITTEE OF THE PARTY

(Issued together with Decision No. 183/2001/QĐ-TTg dated November 20, 2001 of the Prime Minister)

I. OBJECTIVES AND REQUIREMENTS OF THE PROGRAM

The objective of the Program of Action (the program) is to organize the successful implementation of the Central Resolution: continue to restructure, reform, develop, and enhance the efficiency of state-owned enterprises so that they contribute significantly to ensuring essential public goods and services for society and necessary requirements for national defense and security, serving as the core force to accelerate economic growth and lay the foundation for the country's industrialization and modernization according to the socialist orientation.

The requirement of the Program is to fully understand the content of the Resolution and concretize fully the viewpoints, policies, and tasks approved by the Central Committee through legal regulations and effectively implement them.

II. MAIN CONTENTS OF THE PROGRAM

A. AMENDMENTS AND SUPPLEMENTS TO MECHANISMS AND POLICIES.

1. Clarify and concretize the orientation for restructuring and developing state-owned enterprises engaged in business and public services by issuing specific criteria for classifying state-owned enterprises holding 100% capital, state-owned enterprises holding controlling shares; special shares, low shares, and state not holding shares when corporatizing; state-owned enterprises implementing mergers, dissolution, bankruptcy; state-owned enterprises implementing transfer, sale, lease, and entrustment of business operations.

2. Encourage the people and enterprises of various economic sectors to produce public goods and services needed by society and not prohibited by law.

To implement this task, it is necessary to issue a decree on public service enterprises to replace Decree No. 56/CP on state-owned enterprises engaged in public services, in the spirit that state-owned public service enterprises also operate on a cost-accounting basis, the State has preferential policies for public goods and services regardless of the type of enterprise or economic sector.

3. Amend and supplement mechanisms and policies, form a synchronized legal framework to create an environment for state-owned enterprises to operate independently, make business decisions based on supply and demand relationships, improve efficiency, and take responsibility for their own activities.

a) Issue preferential policies for industries, regions, products, and services that need priority or encouragement for development, regardless of the economic sector; have mechanisms to protect and encourage enterprises to compete and cooperate equally for development; regulate the operation and profit regulation of enterprises operating in state-monopoly fields.

b) Issue criteria for evaluating effectiveness, supervision mechanisms, and sanctions for each type of state-owned enterprise: state-owned enterprises holding 100% capital, state-owned enterprises holding controlling shares, State Corporations to encourage effective management personnel, while dealing with ineffective management personnel due to subjective reasons.

Reform accounting, auditing, reporting, information systems, and implement transparency in business and financial operations of enterprises.

c) Issue Financial Regulations for state-owned enterprises to replace the Regulations issued together with Decrees No. 59/CP and 27/1999/NĐ-CP, aiming to establish sufficient charter capital for enterprises within five years from 2001 to 2005, encouraging enterprises to innovate and modernize technology.

d) Pilot the establishment of Investment Finance Companies to implement state investment and management of capital in enterprises instead of direct capital allocation.

e) Amend and supplement the Management Regulations for Investment and Construction towards increasing the rights and responsibilities of enterprises in investment decisions.

f) Issue a Decree on labor management, wages, and income in state-owned enterprises to replace Decree No. 28/CP and Decree No. 03/2001/NĐ-CP.

4. Develop a training plan for the cadre of managers of state-owned enterprises. Issue standards and Training Regulations for key managers of state-owned enterprises. Establish a system for training General Managers of enterprises.

5. Issue incentive and accountability systems for enterprise managers in a way that ensures appropriate material and spiritual incentives based on their contribution to the enterprise's production and business results.

a) Amend and supplement Decision No. 83/1998/QĐ-TTg on wage and allowance systems for members of the Board of Directors and Supervisory Board of State Corporations and large independent enterprises.

b) Issue a mechanism for accountability and material and spiritual incentives for General Managers of state-owned enterprises.

c) Implement decentralization in the appointment and management of cadres for State Corporations.

6. Implement measures to improve the financial health of enterprises.

a) Issue a management and debt resolution mechanism for state-owned enterprises.

b) Establish a Company for purchasing debts and assets of state-owned enterprises to handle debts and unused assets, creating conditions for improving the financial health of enterprises.

7. Issue policies for surplus labor during the restructuring of state-owned enterprises. Surplus labor will be provided opportunities for retraining or leave with full pay for a period to find work; if unable to find work, they will retire under unemployment benefits. Amend and supplement some specific policies for surplus workers who wish to retire early.

8. Reform and enhance the effectiveness of the operations of State Corporations, build strong economic groups.

a) Amend and supplement the Model Charter on the organization and operation of State Corporations issued together with Decree No. 39/CP.

b) Issue a Decree on transitioning State Corporations to operate under the parent company-subcompany model.

c) Develop a proposal to establish an economic group.

9. Accelerate the shareholding reform of state-owned enterprises. The State shall have policies to reduce the disparity in preferential shares for employees among enterprises undergoing shareholding reform, with provisions ensuring that employees retain preferential shares for a certain period of time. Study the use of part of the enterprise's capital to form employee shares, where employees enjoy dividends but cannot withdraw these shares from the enterprise. Investors may purchase shares for the first time in those shareholding enterprises where the State does not hold controlling shares in accordance with the provisions of the Enterprise Law and the Law on Encouraging Domestic Investment.

a) Issue a Decree to replace Decree No. 44/1998/ND-CP on the shareholding reform of state-owned enterprises.

b) Recommend the Standing Committee of the National Assembly to amend Clause 2, Article 13 of the Ordinance on Combating Corruption regarding the level of share purchases by leaders and managers of state-owned enterprises undergoing shareholding reform.

10. Implement the transfer, sale, lease, and entrustment of management of small-scale state-owned enterprises with capital under five billion dong.

Amend and supplement some articles of Decree No. 103/1999/ND-CP on the transfer, sale, entrustment of management, and leasing of state-owned enterprises related to the scope of application of the Decree and the authority to decide on the transfer, sale, entrustment of management, and leasing of state-owned enterprises.

11. Invest in developing and establishing new state-owned enterprises that are necessary and meet conditions in key industries and fields, and merge, dissolve, or declare bankruptcy those state-owned enterprises that operate ineffectively and fail to implement shareholding reforms, transfers, sales, entrustments of management, or leasing.

Amend and supplement some articles of Decrees No. 50/CP and 38/CP on the establishment, restructuring, dissolution, and bankruptcy of state-owned enterprises in line with the spirit that the establishment of new state-owned enterprises mainly operating in business will be carried out in the form of joint-stock companies. Only establish new state-owned enterprises with 100% state capital in industries and fields where the State has a monopoly, or where other economic sectors do not wish to or are unable to participate.

12. Amend and supplement some articles of relevant Laws and Ordinances concerning the reorganization, renovation, and development of state-owned enterprises.

a) Amend and supplement some articles of the Bankruptcy Law in the direction that the person deciding to establish an enterprise has the right to propose the bankruptcy of the enterprise.

b) Amend and supplement the Law on State-Owned Enterprises in the spirit that state-owned enterprises include enterprises with 100% state capital and enterprises with state controlling shares; provisions on the establishment, operation, restructuring, dissolution, and bankruptcy of state-owned enterprises; incorporate new contents about the organizational model of activities of state-owned holding companies into the amended Law. Specifically define the organizational model, functions, tasks, and rights of state owners for state-owned enterprises.

c) Draft the Accounting Law.

d) Draft the Ordinance on State Audit.

đ) Draft the Competition Promotion and Monopoly Restriction Law.

e) Draft the Law on the Use of State Capital for Business Investment.

The above contents are detailed in the work program attached as an appendix to the Government's action program to implement the Third Plenary Session Resolution of the Ninth Central Committee of the Communist Party of Vietnam.

B. IMPLEMENTATION ORGANIZATION

In accordance with the spirit of the Third Plenary Session Resolution of the Ninth Central Committee of the Communist Party of Vietnam, urgent and resolute implementation should be carried out for issues that are clear and have resolutions; for issues that are not yet clear enough, organize pilot programs while implementing and learning from experience, taking appropriate, proactive but solid steps, promptly correcting mistakes and deviations. The Government focuses on directing the following main contents:

1. Establish an organization commensurate with its tasks to advise and coordinate in building mechanisms and policies and assist the Government in effectively implementing the Third Central Committee Resolution.

2. Organize the dissemination of the Resolution nationwide, publicize the Government's action program; seek opinions from enterprises before issuing new mechanisms and policies related to enterprises. Guide departments and levels to build action programs to implement the Resolution.

3. Direct and guide localities, ministries, sectors, and state-owned holding companies to classify and reorganize state-owned enterprises. Pay special attention to directing and guiding the reorganization of state-owned enterprises under the Ministry of Defense, the Ministry of Public Security, and localities in mountainous areas, remote regions. Strengthen guidance, inspection, and urging the implementation of approved programs.

4. Urgently direct the reorganization of state-owned holding companies that do not meet the necessary conditions.

5. Urgently pilot and firmly expand the transformation of state-owned holding companies into parent companies - subsidiary models; establish economic groups; establish financial investment companies.

6. Direct, guide, and organize the effective implementation of the classification and reorganization of enterprises under party organizations and political-social organizations.

7. Organize pilot programs to convert state-owned enterprises and enterprises of party organizations and political-social organizations into limited liability companies.

8. Vigorously implement the shareholding reform of state-owned enterprises with the understanding that this is a crucial step to create fundamental changes in the renovation and improvement of the efficiency of state-owned enterprises.

9. Direct the effective implementation of financial health, resolution of unpayable debts, and prevention of recurrence; properly address surplus labor in state-owned enterprises.

10. Organize pilot programs for the contents outlined in the Third Plenary Session Resolution while waiting for timely amendments and supplements to laws and ordinances (Bankruptcy Law, Law on State-Owned Enterprises, Labor Code, Ordinance on Combating Corruption...).

Ministries, ministerial-level agencies, agencies under the Government, provincial people's councils, and municipal people's councils directly under the central government shall base their specific action programs to implement the Third Plenary Session Resolution of the Central Committee on this Government's action program.