Directive No. 262/TTg on the allocation of tasks for preparing guiding documents to implement the Law on State Enterprises

DIRECTIVE

Regarding the assignment to prepare guiding documents for the implementation of the State Enterprise Law

On April 20, 1995, at its seventh session, the National Assembly of the Ninth Term adopted the State Enterprise Law. To ensure timely organization and implementation when the State Enterprise Law comes into effect, the Prime Minister assigns relevant agencies to urgently prepare draft regulatory documents with the following contents:

I. The State Planning Commission shall take the lead:

1) Coordinate with the Ministry of Defense, the Ministry of Interior, the Ministry of Finance, and other relevant state agencies to prepare draft guidelines on the implementation of the State Enterprise Law for state enterprises operating in public services in certain important fields directly serving national defense and security, to be submitted to the Prime Minister before May 15, 1995;

2) Study and develop criteria for classifying business enterprises engaged in trade activities and those engaged in public services, to be submitted to the Prime Minister before June 30, 1995. Coordinate with ministries, ministerial-level agencies, government agencies having state enterprises, provincial people's committees under the central government, and municipal people's committees under the central government to classify and compile lists of business enterprises engaged in trade activities and those engaged in public services, to be submitted to the Government at the end of the third quarter of 1995;

3) Coordinate with relevant agencies to draft regulations on procedures and processes for establishing, registering business operations, restructuring, dissolution, and setting up branches and representative offices both domestically and abroad for state enterprises (including state corporations), based on reviewing, supplementing, amending, or replacing existing documents such as Decree No. 388/HĐBT, Decision No. 315/HĐBT, 330/HĐBT, and Decree No. 40/CP dated May 19, 1994 of the Government, issuing regulations on establishing representative offices of Vietnamese enterprises abroad in accordance with the provisions of the State Enterprise Law, to be submitted to the Prime Minister before May 20, 1995.

Note specific guidance on the establishment, organization, and operational regulations of appraisal councils; specify basic contents that must be appraised when establishing, restructuring, and dissolving state enterprises. Specify rights, obligations, and procedures when enterprises supplement business activities outside the main business sectors assigned by the state.

4) Develop basic indicators as a basis for coordinating with relevant agencies to compile a list of large-scale enterprises required to establish boards of directors, to be submitted to the Prime Minister before May 15, 1995;

5) Coordinate with the Government’s Organizational and Cadre Affairs Board, the Ministry of Finance, and the Ministry of Labor, Invalids, and Social Affairs to draft regulations on the organization and operation of boards of directors, general managers, and directors. Specify salary, bonus, and allowances for兼任董事会成员、总经理和其他职务的制度，以及其他相关制度；在1995年5月30日前提交总理审议。

6) Draft model articles of association regarding the organization and operation of state corporations, to be submitted to the Prime Minister before May 30, 1995;

7) Coordinate with relevant agencies to compile a list of important industries and sectors prioritized by the state for establishing new enterprises; areas where the state needs to hold controlling shares or special shares, to be submitted to the Prime Minister at the end of the third quarter of 1995.

II. The Ministry of Finance shall take the lead:

1) Coordinate with the Ministry of Justice and the State Planning Commission to draft regulations on the minimum capital requirements for newly established state enterprises appropriate to each type of business activity, to be submitted to the Prime Minister before May 20, 1995;

2) Coordinate with the State Planning Commission and the Government’s Organizational and Cadre Affairs Board to draft regulations on the organization and operation of supervisory bodies in enterprises not establishing boards of directors, to be submitted to the Prime Minister before May 15, 1995;

3) Guide enterprises on their rights to transfer, lease, mortgage, or pledge assets under their management; develop basic indicators or criteria as a basis for determining important equipment and factories that require approval from competent state authorities before enterprises can transfer, lease, mortgage, or pledge them, to be submitted to the Prime Minister before May 20, 1995;

4) Guide the financial management rights and obligations of state enterprises; state management systems for financial activities in enterprises; systems for capital allocation, utilization, preservation, development, mobilization, issuance of bonds and stocks; asset revaluation systems; systems for setting aside and using depreciation reserves, production development incentive funds, and other funds; profit distribution mechanisms after tax; review and supplement, amend, or replace current accounting, bookkeeping, auditing, settlement, and financial disclosure regulations; financial, accounting, and bookkeeping systems for enterprises engaged in public services; fee collection and usage systems for enterprises engaged in fee-charging activities; financial and accounting systems and forms of bookkeeping in state corporations; business responsibility systems within the scope of capital managed by enterprises; responsibilities and authorities of financial agencies over state capital and assets in enterprises, to be submitted to the Prime Minister before May 30, 1995.

III. The Government’s Price Control Board shall take the lead, coordinating with relevant agencies to develop a list of products and services subject to state pricing or price control; review and supplement, amend price support mechanisms for enterprises engaged in products and services subject to state pricing or price control to cover costs and achieve reasonable profits for these enterprises, to be submitted to the Prime Minister by the end of June 1995.

IV.The Ministry of Labor, War Invalids and Social Affairs shall specify regulations on recruitment, hiring, deployment, utilization, training of labor; wage and bonus systems for workers; labor norms and unit prices as a basis for enterprises to exercise autonomy in this field, and submit them to the Prime Minister before May 15, 1995.

V. The General Statistics Office shall take the lead and coordinate with the Ministry of Finance and the State Planning Commission to study and supplement and amend the regulations on statistical reports and other reporting systems as prescribed by the State to be consistent with the Law on State-owned Enterprises, and submit them to the Prime Minister by the end of June 1995.

VI. It is requested that the Vietnam General Confederation of Labor provide guidance on the organization and operation of Workers' Congresses.

The agencies assigned the above tasks shall base their proposals on the assigned contents to prepare the legal forms and the number of documents to be issued, with the spirit of minimizing circulars guiding ministries and inter-ministerial bodies.

In addition to the assigned tasks above, the State Planning Commission shall take the lead and coordinate with the Ministry of Justice, the Ministry of Finance, and the Central Steering Committee for Enterprise Reform to review all draft documents before submitting them to the Government and the Prime Minister for consideration and decision.

The issues related to implementing the Law on State-owned Enterprises are relatively complex and the time frame is very tight; therefore, the agencies assigned these tasks must prioritize and concentrate experienced experts both within and outside the agencies to complete the tasks according to the schedule mentioned above.