Decision No. 266/2005/QĐ-TTg on the pilot equitization of the Mekong Delta Housing Development Bank

 Pursuant to …;

On piloting the shareholding reform of the Housing Development Bank

Đồng bằng sông Cửu Long

PRIME MINISTER

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

Pursuant to the Enterprise Law dated June 12, 1999;

Pursuant to the State Enterprise Law dated November 26, 2003;

Pursuant to the Law on the State Bank of Vietnam dated December 12, 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam dated June 17, 2003;

Pursuant to the Law on Credit Institutions dated December 12, 1997 and the Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions dated June 15, 2004;

Pursuant to Decree No. 187/2004/NĐ-CP dated November 16, 2004 of the Government on the conversion of state-owned companies into joint-stock companies;

Considering the proposal of the Governor of the State Bank of Vietnam,

DECISION:

Article 1. To implement the pilot shareholding reform of the Mekong Delta Housing Development Bank with the main contents as follows:

1. Objectives, requirements, and forms of shareholding reform

a) Objectives of shareholding reform:

- To enhance management capacity and modernize the banking industry, improve business efficiency and capital utilization.

- To strengthen financial capacity to ensure operational safety and development of the Mekong Delta Housing Development Bank.

- To increase the competitiveness of the Mekong Delta Housing Development Bank under conditions of international economic integration.

b) Requirements for shareholding reform:

- To diversify ownership forms to enhance management capacity and operational efficiency of the Mekong Delta Housing Development Bank.

- The pilot shareholding reform of the Mekong Delta Housing Development Bank must ensure safety and not cause significant fluctuations in the operations of the banking system, ensuring the operational effectiveness of the Mekong Delta Housing Development Bank.

- To ensure the controlling role of the State in the activities of the Mekong Delta Housing Development Bank and maximize benefits for the State.

- To conduct the process openly and transparently according to market principles.

- To mobilize capital from all strata of the population and economic sectors both domestically and internationally.

c) Forms of shareholding reform

Maintain the current State-owned capital at the Mekong Delta Housing Development Bank based on re-evaluated value, issue shares to attract additional capital according to the following principles:

- The State holds controlling shares of the Mekong Delta Housing Development Bank. The sale of shares will be carried out in multiple stages with the State's capital proportion gradually decreasing but not falling below 51% of the charter capital of the Mekong Delta Housing Development Bank.

- Ensure the safety ratio of the Mekong Delta Housing Development Bank reaches the minimum level according to international practices.

d) Charter capital at the time of shareholding reform shall be determined by the Governor of the State Bank to be decided by the Prime Minister in the pilot shareholding reform plan of the Mekong Delta Housing Development Bank.

đ) Shareholders: domestic and foreign investors may purchase shares of the Mekong Delta Housing Development Bank in accordance with the provisions of the law.

2. Contents of the pilot shareholding reform of the Mekong Delta Housing Development Bank

a) Allow the hiring of consulting organizations to advise on shareholding reform according to the following contents:

- Determining the enterprise value.

- Developing the pilot shareholding reform plan and issuing shares.

- Selecting strategic investors.

b) Method and timing for determining the enterprise value of the Mekong Delta Housing Development Bank:

- The method for determining the enterprise value of the Mekong Delta Housing Development Bank shall be decided by the State Bank of Vietnam in coordination with the Ministry of Finance based on the proposal of the valuation organization and existing legal regulations.

- The date for determining the enterprise value is December 31, 2005.

c) Share sale schedule

- In 2006, the Mekong Delta Housing Development Bank will sell shares while ensuring that the State's ownership ratio does not fall below 70% of the charter capital of the Mekong Delta Housing Development Bank.

- From 2007 to 2010, the Mekong Delta Housing Development Bank will continue to sell shares to increase its charter capital but must ensure that the State's ownership ratio does not fall below 51% of the charter capital of the Mekong Delta Housing Development Bank.

Article 2. Division of responsibilities

1. Mekong Delta Housing Development Bank

a) Submit to the State Bank of Vietnam and the Ministry of Finance for approval of the consulting fee to implement the pilot shareholding reform of the Mekong Delta Housing Development Bank;

b) Implement and carry out the contents and procedures of the pilot shareholding reform of the Mekong Delta Housing Development Bank in accordance with the provisions of Decree No. 187/2004/NĐ-CP dated November 16, 2004 of the Government on converting state-owned enterprises into joint-stock companies;

c) Develop and report to the State Bank of Vietnam the pilot shareholding reform plan of the Mekong Delta Housing Development Bank for approval by the Prime Minister.

2. State Bank of Vietnam

a) Coordinate with the Ministry of Finance to decide on the establishment of the Steering Committee for shareholding reform;

b) Take the lead and coordinate with the Ministry of Finance to decide on selecting consulting organizations based on the proposal of the Mekong Delta Housing Development Bank;

c) Bear primary responsibility for organizing, supervising, and directing the implementation of the Prime Minister's Decision on the shareholding reform of the Mekong Delta Housing Development Bank;

d) Perform other tasks as stipulated in Decree No. 187/2004/NĐ-CP dated November 16, 2004 of the Government on converting state-owned enterprises into joint-stock companies.

3. Ministry of Finance

a) Coordinate with the State Bank of Vietnam to complete the pilot shareholding reform plan of the Mekong Delta Housing Development Bank for approval by the Prime Minister;

b) Perform other tasks as stipulated in Decree No. 187/2004/NĐ-CP dated November 16, 2004 of the Government on converting state-owned enterprises into joint-stock companies.

Article 3. This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

The Governor of the State Bank of Vietnam, Ministers of the Ministries of Finance, Planning and Investment, Labor, Invalids and Social Affairs, Home Affairs, Heads of relevant agencies, the Steering Committee for Enterprise Reform and Development, and the Board of Directors of the Mekong Delta Housing Development Bank are responsible for implementing this Decision./.