Directive No. 28/2001/CT-TTg On continuing to create a favorable business environment for enterprises

DIRECTIVE

Regarding the implementation of the conversion of state-owned enterprises and enterprises of political organizations and political-social organizations,

enterprises of political organizations and political-social organizations

thành công ty trách nhiệm hữu hạn một thành viên ||| to become a limited liability company with a single member 

On September 14, 2001, the Government issued Decree No. 63/2001/NĐ-CP on the conversion of state-owned enterprises and enterprises of political organizations and political-social organizations into Joint Stock Companies with One Member. This is a new and complex issue, involving the scope of enterprises operating in business sectors where the State, political organizations, and political-social organizations decide to retain 100% capital. At the same time, it relates to the adjustment of authorities and obligations of many state agencies, political organizations, political-social organizations, and enterprise management bodies. To ensure that the implementation of Decree No. 63/2001/NĐ-CP is positive and solid, and to properly address issues arising during and after the conversion process, the Prime Minister requests the Ministries, ministerial-level agencies, agencies under the Government, provincial people's committees directly under the central government, and state-owned corporations to immediately implement the following tasks:

1. Disseminate, internalize, explain, and promote the viewpoints, policies, and objectives of the Party and the Government regarding the conversion of state-owned enterprises and enterprises of political organizations and political-social organizations into Joint Stock Companies with One Member down to managers and workers within these enterprises.

2. Conduct classification and arrangement of state-owned enterprises in accordance with the spirit of Resolution No. 3 of the Central Committee of the Communist Party of Vietnam's Ninth Congress; develop plans for converting state-owned enterprises engaged in business activities where the State needs to hold 100% capital into Joint Stock Companies with One Member as stipulated in Decree No. 63/2001/NĐ-CP.

3. Coordinate with the Ministry of Finance, the Ministry of Labor, Invalids and Social Affairs, the Ministry of Planning and Investment, and the State Bank of Vietnam to handle financial, asset, debt, labor issues of enterprises, and procedures and formalities for conversion.

4. To achieve the requirements set forth, it is necessary to proceed in two stages:

a) From November 2001 to December 2002:

The Ministries of Industry, Construction, Transport, Agriculture and Rural Development, Trade; the cities of Hanoi and Ho Chi Minh City; the State Corporations of Electricity, Coal, Posts and Telecommunications, Maritime, Aviation, Import-Export Construction, and Import-Export Fisheries shall coordinate with the Steering Committee for Enterprise Reform and Development and the Working Group to select some state-owned enterprises with favorable conditions to pilot the conversion into Joint Stock Companies with One Member.

By the end of 2002, the Ministries, provincial people's committees directly under the central government, and state-owned corporations that have converted state-owned enterprises into Joint Stock Companies with One Member shall organize interim reviews, evaluate results, and draw lessons for the next phase.

b) From 2003 to 2005:

After conducting interim reviews and drawing lessons from the 2001-2002 period, the Ministries, ministerial-level agencies, agencies under the Government, provincial people's committees directly under the central government, and state-owned corporations must complete the conversion of enterprises by the end of 2005 in line with the progress of enterprise reform and restructuring.

5. Specific tasks of some Ministries and state agencies are as follows:

a) The Ministry of Planning and Investment shall guide registration procedures for Joint Stock Companies with One Member.

b) The Ministry of Finance shall guide financial issues during and after the conversion process.

c) The Ministry of Labor, Invalids and Social Affairs shall guide labor and wage issues for workers.

d) The Civil Service Department of the Government, in coordination with the Ministry of Labor, Invalids and Social Affairs, shall guide labor and wage policies for positions appointed in Joint Stock Companies with One Member converted from enterprises with 100% state capital.

The issuance of guiding documents mentioned above must be completed before December 31, 2001.

6. The Working Group implementing the conversion of state-owned enterprises and enterprises of political organizations and political-social organizations into Joint Stock Companies with One Member shall be responsible for coordinating and urging agencies to issue guiding documents for the implementation of Decree No. 63/2001/NĐ-CP according to the tasks assigned in Point 5 of this Directive.

Ministers, heads of ministerial-level agencies, heads of agencies under the Government, chairmen of provincial people's committees directly under the central government, and boards of directors of state-owned corporations are responsible for reporting quarterly plans, programs, and results of converting state-owned enterprises and enterprises of political organizations and political-social organizations into Joint Stock Companies with One Member to the Ministry of Planning and Investment, the Steering Committee for Enterprise Reform and Development, and the Working Group for consolidation and submission to the Prime Minister.

The Minister of Planning and Investment and the Head of the Working Group implementing the conversion of state-owned enterprises and enterprises of political organizations and political-social organizations into Joint Stock Companies with One Member are responsible for monitoring the implementation of this Directive.