Circular No. 2499/TC-TCDN regarding the implementation of Circular No. 126/2004/TT-BTC dated December 24, 2004 of the Ministry of Finance.

DIRECTIVE

ON CONTINUING TO PROMOTE THE REORGANIZATION, MODERNIZATION OF STATE ENTERPRISES IN THE SPIRIT OF RESOLUTION 3 OF THE PARTY CENTRAL COMMITTEE, RESOLUTION 9 (TERM IX), DIRECTIVE NO. 45-CT/TW OF THE PARTY CENTRAL COMMITTEE ON 22/10/2004 AND DIRECTIVE NO. 04/2005/CT-TTg OF THE GOVERNMENT ON 17/3/2005 OF THE PRIME MINISTER

In 2004, the reorganization, modernization, and improvement of the efficiency of state enterprises according to the spirit of Resolution 3 of the Party Central Committee, Resolution 9 (Term IX), and Directive No. 11/2004/CT-TTg of the Prime Minister were actively implemented and directed by the Ministry of Posts and Telecommunications, achieving many results compared to previous years, creating significant changes in the work of modernizing and improving the operational efficiency of enterprises, enhancing the awareness of cadres, party members, and employees within enterprises regarding the policy of shareholding. As of now, 32 enterprises and business units of Vietnam Post and Telecommunications Corporation in the list of shareholding for the period 2003-2005 approved by the Prime Minister have basically completed the steps to become joint-stock companies, among which there are still 4 units that have not yet approved their plans and 9 units that have not yet carried out the public auction of initial shares. MaleOn March 23, 2005, the Prime Minister signed and issued Decision No. 58/2005/QD-TTg on approving the pilot project to form the Vietnam Posts and Telecommunications Group. For Vietnam Television Investment and Development Corporation (VTC), the Ministry has instructed the company to develop a plan to transform its organizational structure according to the holding company-subcompany model.

To further promote the process of reorganizing, modernizing, and improving the efficiency of state enterprises in accordance with the spirit of Resolution 3 of the Party Central Committee, Resolution 9 (Term IX), and Directive No. 45-CT/TW dated October 22, 2004 of the Party Central Committee on accelerating the reorganization, modernization, development, and improvement of the efficiency of state enterprises during the two-year period 2004-2005; Implementing Decision No. 13/2005/QD-TTg of the Prime Minister on the implementation plan for Directive No. 45-CT/TW dated October 22, 2004 of the Party Central Committee and Directive No. 04/2005/CT-TTg dated March 17, 2005 of the Prime Minister on accelerating the shareholding reform of state-owned companies, the Minister of Posts and Telecommunications requests the heads of the ministries, agencies, and units under the Ministry, Vietnam Post and Telecommunications Corporation, and Vietnam Television Investment and Development Corporation (VTC) to focus on implementing the following key tasks:

1. Organize the dissemination and deep understanding of Resolution 3 of the Party Central Committee, Resolution 9 (Term IX), Directive No. 45-CT/TW dated October 22, 2004 of the Party Central Committee, Decision No. 13/2005/QD-TTg, and Directive No. 04/2005/CT-TTg dated March 17, 2005 of the Prime Minister on promoting the reorganization, modernization, and improvement of the efficiency of state enterprises to create unity and further enhance the understanding of cadres and party members regarding the reorganization, modernization, and improvement of the efficiency of state enterprises, as well as the economic and social development policies of the Party and the State.

2. Strengthen propaganda and raise awareness of compliance with Party resolutions and State laws among cadres and party members, incorporating the results of the reorganization and modernization of state enterprises into the annual review and assessment of cadres, party members, and units.

3. Vietnam Post and Telecommunications Corporation, Vietnam Television Investment and Development Corporation Male (VTC) shall concentrate on implementing the following contents:

3.1 Vietnam Post and Telecommunications Corporation Male:

- Proactively review and supplement the plan for the reorganization and modernization of state enterprises, accelerate progress, and expand the scope of state enterprises that need to be converted into joint-stock companies according to the spirit of Resolution 9 (Term IX) of the Party Central Committee, Decision No. 155/2004/QD-TTg dated August 24, 2004 of the Prime Minister on criteria and classification lists of state-owned companies and independent accounting subsidiaries of state-owned corporations, and Decision No. 58/2005/QD-TTg dated March 23, 2005 of the Prime Minister on approving the pilot project to form the Vietnam Posts and Telecommunications Group.

- Coordinate with the Vietnam Post Union to organize propaganda and dissemination of the policies and systems of the Party and the State, deeply understand Party resolutions and Government directives on the work of reorganizing, modernizing, developing, and improving the efficiency of state enterprises to create unity, enhance the understanding of cadres and party members, and stabilize the mindset of workers in enterprises.

- Effectively implement the determination of enterprise value, resolve financial and redundant labor issues in enterprises. The sale of enterprise shares must be conducted openly within the enterprise as well as on the market, resolutely preventing closed shareholding within the enterprise.

- For the 32 enterprises that have basically completed the process of converting state-owned companies into joint-stock companies according to Decree No. 64/2002/ND-CP dated June 19, 2002 of the Government, Vietnam Post and Telecommunications Corporation will focus on directing units to continue implementing according to new regulations in Decree No. 187/2004/ND-CP dated November 16, 2004 of the Government on converting state-owned companies into joint-stock companies, Circular No. 126/2004/TT-BTC dated December 24, 2004, and Document No. 2499/TC-TCDN dated March 4, 2005 of the Ministry of Finance.

- Develop specific plans to implement shareholding for Mobile Information Company (VMS) and the Information Center under Hanoi Post, which have been supplemented to the list of shareholding for 2005 by the Prime Minister, and for units included in the pilot project to form the Vietnam Posts and Telecommunications Group.

- Organize the implementation of the pilot project to form the Vietnam Post and Telecommunications Group according to the contents and timeline approved by the Prime Minister in Decision No. 58/2005/QĐ-TTg dated March 23, 2005, develop detailed plans for each month and quarter with specific tasks, assign persons responsible for directing to complete the assigned tasks. The implementation of the pilot project must be based on the current legal regulations. Propose and recommend issues arising that differ from legal provisions.

- The restructuring and modernization of state-owned enterprises must be carried out urgently and resolutely, strictly handle enterprises that fail to restructure and transform their operations according to the prescribed schedule.

3.2 Vietnam Investment and Development Television Technology Company Male:

Focus on building and perfecting the implementation of plans to convert the organizational model of the VTC Corporation to a parent company-subcompany model in line with the requirements of a market economy; clearly demonstrating the development orientation of the parent company with financial investment functions and control over subcompanies in terms of capital, secrets, markets, technology, brand, creating competitive capabilities in both domestic and international markets.

4. Implementation:

- Heads of agencies and units under the Ministry, Vietnam Post and Telecommunications Corporation, and Vietnam Investment and Development Television Technology Corporation (VTC) shall organize the dissemination and concentrate on developing specific plans to implement the contents of this Directive.

- Vietnam Post and Telecommunications Corporation and Vietnam Investment and Development Television Technology Corporation shall report monthly to the Minister of Posts and Telecommunications on the situation and progress of restructuring and modernizing state-owned enterprises and the implementation of this Directive.

- The Steering Committee for Enterprise Modernization of the Ministry shall continue to be strengthened to better fulfill its advisory, inspection, urging, guidance, and dissemination functions regarding new Party and State documents on enterprise restructuring, modernization, development, and efficiency enhancement; closely follow practical situations, draw lessons, promptly identify and address emerging issues to effectively implement the restructuring, modernization, development, and efficiency enhancement plans for state-owned enterprises approved by the Prime Minister; regularly report to the Ministry's leadership on the implementation of this Directive./.