Decree No. 49/2014/ND-CP on supervision, inspection, and audit of state-owned enterprises in compliance with laws and adherence to decisions of owners

DECREE

On supervision, inspection, and audit of state-owned enterprises in compliance with laws and adherence to decisions of owners The Government promulgates this Decree on supervision, inspection, and audit of state-owned enterprises in compliance with laws and adherence to decisions of owners.

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

Pursuant to the Enterprise Law dated November 29, 2005;

Based on the Inspection Law dated November 15, 2010;

At the proposal of the State Auditor General,

This Decree stipulates supervision, inspection, and audit of state-owned enterprises in compliance with laws and adherence to decisions of owners.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

1. State-owned enterprises (hereinafter referred to as first-tier enterprises), including:

Article 2. Applicability

a) Joint-stock limited companies that are parent companies of economic groups; parent companies of state-owned corporations; parent companies in the parent company-subcompany model; single-member joint-stock limited companies independently established by the Prime Minister's Decision or by Ministries, ministerial-level agencies, and agencies under the Government (hereinafter collectively referred to as Ministries managing sectors), People's Committees of provinces and centrally-administered cities (hereinafter collectively referred to as Provincial People's Committees);

b) Joint-stock companies and limited liability companies with two or more members where the State holds over 50% of the charter capital, managed by Ministries managing sectors, Provincial People's Committees as owners of investment capital in enterprises.

2. Limited liability companies and joint-stock companies where first-tier enterprises are owners of investment capital in enterprises and hold over 50% of the charter capital (hereinafter referred to as second-tier enterprises).

3. Ministries, ministerial-level agencies, agencies under the Government, Provincial People's Committees; owners, organizations, individuals authorized by owners to delegate or transfer rights and obligations of owners, supervisors, and representatives acting on behalf of owners for the portion of investment capital in enterprises, and other relevant agencies, organizations, and individuals involved in supervising, inspecting, and auditing state-owned enterprises.

1. "Supervision of state-owned enterprises" refers to the activity of monitoring, summarizing, analyzing, and evaluating regularly or periodically by competent authorities according to procedures and formalities prescribed by law regarding compliance with laws and adherence to decisions of owners by state-owned enterprises.

Article 3. Explanation of Terms

2. Self-generated and self-consumed electricity is electricity produced and consumed by an organization or individual to serve their own needs.

2. "Inspection of state-owned enterprises" refers to the activity of reviewing, verifying, clarifying, and concluding periodically or unexpectedly by competent state authorities based on grounds, procedures, and formalities prescribed by law regarding compliance with laws and adherence to decisions of owners by state-owned enterprises.

3. "Audit of state-owned enterprises" refers to the activity of reviewing, assessing, and handling periodically or unexpectedly by competent state authorities based on grounds, procedures, and formalities prescribed by law regarding compliance with laws and adherence to decisions of owners by state-owned enterprises.

4. "Owner" refers to the agency or organization assigned or delegated to exercise rights and obligations of owners towards single-member joint-stock limited companies owned by the State and towards the State's share capital in enterprises, including Ministries managing sectors, Provincial People's Committees, and first-tier enterprises when investing capital in other enterprises.

5. "State financial management agency for enterprises" refers to the Ministry of Finance and Provincial Departments of Finance (hereinafter collectively referred to as enterprise financial management agencies).

6. "Representative acting on behalf of the investment capital at the enterprise" (hereinafter abbreviated as Representative) refers to an individual authorized in writing by the owner to perform the rights, responsibilities, and obligations of the owner at the enterprise.

7. "Enterprise manager" refers to the Chairman and members of the Board of Members, Board of Directors, or Company Chairman, Supervisor, General Director, Deputy General Director, or Director, Deputy Director, Chief Accountant (excluding General Directors, Directors, Deputy General Directors, Deputy Directors, and Chief Accountants working under labor contracts).

8. "State-owned enterprise" refers to an enterprise where the State holds over 50% of the charter capital.

8. “State-owned enterprise” is an enterprise in which the State holds more than 50% of the registered capital.

Article 4. Application of laws in supervision, inspection, and audit activities regarding compliance with laws and adherence to owners' decisions for state-owned enterprises

1. In cases where international treaties to which the Socialist Republic of Vietnam is a member or specialized laws provide different provisions on supervision, inspection, and audit regarding compliance with laws and adherence to owners' decisions for state-owned enterprises, such provisions shall be applied according to the relevant international treaties or specialized laws.

2. For state-owned enterprises managed by ministries, provincial People's Committees, and first-tier enterprises that own capital investment in other enterprises and hold no more than 50% of the charter capital, the ministries, provincial People's Committees, and first-tier enterprises shall base their specific regulations on the supervisory, inspection, and evaluation systems for the effective use of capital investments at these enterprises on the provisions of this Decree.

Article 5. Objectives of supervision, inspection, and audit

1. To grasp, reflect, and accurately assess compliance with laws and adherence to owners' decisions for state-owned enterprises, thereby promptly rectifying or applying appropriate measures to help enterprises overcome existing shortcomings and limitations to enhance business efficiency.

2. To assist state management agencies and owners in identifying weaknesses in the business operations of state-owned enterprises; determining causes and responsibilities of related agencies, organizations, and individuals, and handling them within their authority or recommending those with authority to consider and handle.

3. To promptly identify loopholes and inadequacies in policies, laws, and management mechanisms for state-owned enterprises to propose measures to improve and perfect them to competent state agencies.

4. To strengthen transparency in the operations of state-owned enterprises; encourage sharing and expanding successful experiences and effective business models among state-owned enterprises.

Article 6. Principles of supervision, inspection, and audit

1. To comply with legal provisions and ensure objectivity, accuracy, timeliness, transparency, and openness.

2. To effectively enhance coordination between owners, agencies, organizations, and individuals tasked with supervising, inspecting, and auditing, and other related agencies, organizations, and individuals in supervisory work.

3. Not to hinder the normal operations of supervised enterprises and other related subjects.

4. Not to overlap in scope, content, objects, or timing of inspections and audits among authorized agencies, organizations, and individuals.

Article 7. Contents of supervision, inspection, and audit

1. Supervision, inspection, and audit of compliance with laws in the following areas:

a) Management and use of state capital and assets; financial systems and financial oversight for enterprises as prescribed in Government Decree No. 61/2013/NĐ-CP dated June 25, 2013, and implementing guidelines;

b) Restructuring, modernization, organizational structure improvement, and operation of enterprises; development and implementation of strategies, plans, and investment development plans, production and business plans for enterprises;

c) Recruitment, management, and use of labor; assessment, rewards, punishments, salary policies, bonuses, and other policies for enterprise managers, representatives, and employees;

d) Legal provisions of specialized laws concerning business sectors, industries, and professions; technical procedures and management rules within the business sectors, industries, and professions of enterprises;

đ) Provisions of laws regarding supervision, inspection, audit, and evaluation of operational effectiveness, and implementation of information disclosure, reporting, transparency, and openness in enterprise business activities;

e) Other legal provisions as required by owners or competent state agencies.

2. Supervision, inspection, and audit of adherence to owners' decisions on the following matters:

a) Implementation of approved business strategies, production and business plans, and investment development plans; public service tasks assigned to enterprises; approved Group A and B investment projects;

b) Profit distribution, reserve fund establishment and use; increase or decrease in charter capital; borrowing and lending (domestic and foreign); capital raising; property obligations; purchase and sale of assets valued at 50% or more of the charter capital or as stipulated in the Articles of Association; contribution, holding, increase, or decrease in capital of enterprises in other enterprises according to approved policies;

c) Implementation of approved business objectives, tasks, and industries; restructuring, ownership transfer, dissolution, and bankruptcy requirements; establishment and dissolution of new subordinate units according to approved proposals;

d) Implementation of market development, marketing, and technology solutions; provision and assurance of essential public goods and services according to owners' decisions or regulations;

đ) Implementation of decisions related to recruitment, management, and use; implementation of policies and systems; assessment of activities, rewards, and punishments for enterprise managers and employees;

e) Implementation of other decisions related to supervision, inspection, and audit results; assessment of business production and management efficiency; implementation of managerial duties and powers of enterprise managers;

g) Other matters as required by owners.

Article 8. Construction, approval of annual supervision, inspection, and audit plans for state-owned enterprises

1. In the fourth quarter of each year, based on the operational situation of state-owned enterprises under their management and ownership, the Ministry managing the sector and the provincial People's Committee shall direct the construction, approval, and implementation of annual supervision, inspection, and audit plans for state-owned enterprises. The content of the audit in the annual supervision, inspection, and audit plan must be consistent with the Audit Program Orientation approved by the Prime Minister, the State Audit Office's guidance on building the audit plan, and the audit plan of the owner; the first-level enterprise owner shall construct, approve, and implement supervision and inspection plans for second-level enterprises.

2. The annual supervision, inspection, and audit plan for state-owned enterprises must clearly define the objectives, contents, subjects, scope of supervision, inspection, and audit for each enterprise and be sent to the Ministry of Finance, the Ministry of Planning and Investment, the State Audit Office, and relevant ministries, sectors, and state agencies for comments, and after approval, for coordinated implementation; the supervision and inspection plans of the first-level enterprise owners must be sent to the Ministry managing the sector, the provincial People's Committee, and the state audit agency at the same level for comments, and after approval, for coordinated implementation.

Article 9. Handling Overlap in Inspection and Audit Activities for Compliance with Laws and Implementation of Owners' Decisions by State-Owned Enterprises

1. The General Inspector of the State Audit Office shall lead the handling of overlap in the scope, subjects, contents, and timeframes for auditing compliance with laws and implementation of owners' decisions among ministry inspectors and between ministry inspectors and provincial inspectors regarding state-owned enterprises.

2. The Chief Inspector of the Ministry managing the sector shall lead the handling of overlap in the scope, subjects, contents, and timeframes for inspection and auditing compliance with laws and implementation of owners' decisions for state-owned enterprises within the national management scope of the Ministry; coordinate with the Chief Inspector of the province to resolve overlap in the scope, subjects, contents, and timeframes for auditing state-owned enterprises in the province, centrally-administered city.

3. The Chief Inspector of the province shall lead the handling of overlap in the scope, subjects, contents, and timeframes for inspection and auditing compliance with laws and implementation of owners' decisions for state-owned enterprises within the national management scope of the provincial People's Committee; among department inspectors; lead and coordinate with the Chief Inspector of the Ministry managing the sector to resolve overlap in the scope, subjects, contents, and timeframes for auditing state-owned enterprises in the province, centrally-administered city.

4. The handling of overlap as stipulated in this Article shall be carried out through activities guiding and coordinating the planning process during the construction and approval of annual supervision, inspection, and audit plans for state-owned enterprises according to Article 8 of this Decree. In case overlap occurs during the implementation of the plan, priority shall be given to inspections and audits conducted by the owner or authorized agencies or units by the owner.

Chapter II
SUPERVISION OF COMPLIANCE WITH LAWS AND IMPLEMENTATION OF OWNERS' DECISIONS

Section 1
SUPERVISION RESPONSIBILITIES

Article 10. Supervisory Authority

1. The owner, which is the Ministry managing the sector and the provincial People's Committee, has the authority to supervise the implementation of laws and adherence to owners' decisions for first-level and second-level enterprises.

2. The owner, which is the first-level enterprise, has the authority to supervise the implementation of laws and adherence to owners' decisions for second-level enterprises.

3. Within their national management scope, ministries, agencies equivalent to ministries, and provincial People's Committees that are not owners have the responsibility to cooperate with the owner to supervise the implementation of laws and adherence to owners' decisions according to the division of national management responsibilities and the exercise of owners' rights over enterprises.

Article 11. Responsibilities of the owner are the Ministries managing sectors, People's Committees of provinces

1. Assigning, delegating levels, and entrusting unified supervision tasks for enterprises under their authority to subordinate agencies, organizations, units; detailing the duties and powers of agencies, organizations, units responsible for unified enterprise supervision.

2. Directing on the content, forms of supervision, regulations, and organizing the implementation of information and reporting systems regarding supervision, inspection, and handling violations in supervisory activities for enterprises under their authority as stipulated in this Decree and other relevant legal documents.

3. At least once every six (06) months, directly work with agencies, organizations, units responsible for unified enterprise supervision; if necessary, invite additional members of the board of directors, company chairmen, auditors, representatives at enterprises to attend to understand the situation of law compliance and adherence to owner decisions.

4. Timely apply management measures or other measures within their authority or recommend competent authorities to apply necessary measures to resolve difficulties and obstacles in business operations of enterprises.

5. Based on enterprise supervision results, conduct inspections and audits within their authority or request competent state agencies to conduct inspections and audits.

6. Handle according to their authority or recommend competent state agencies to handle agencies, organizations, units, individuals who violate laws or fail to comply with owner decisions discovered through supervisory activities.

7. The Minister of the Ministry managing the sector, the Chairman of the People's Committee of the province shall be held legally accountable before the Government Prime Minister when capital and State assets are lost due to non-compliance or insufficient implementation of necessary management measures to prevent and stop such losses in assigned or managed enterprises.

Article 12. Responsibilities of agencies, organizations, units entrusted by the owner to be the unified supervision focal point for enterprises

1. Annually build the content and activities of supervision and integrate them into the unified supervision, inspection, and audit plan for state-owned enterprises to submit to the owner for approval.

2. Receive information and reports on enterprise supervision contents concerning law compliance and adherence to owner decisions as stipulated in this Decree and other relevant laws.

3. Implement information and reporting systems on law compliance and adherence to owner decisions for enterprises under the owner's management as stipulated in this Decree and other relevant laws.

4. Recommend to the owner within their authority or request competent state agencies to conduct inspections and audits based on supervision results for enterprises.

5. Lead or coordinate with agencies, organizations, units under the owner's management and related agencies, organizations to conduct inspections and audits for state-owned enterprises.

6. Based on assigned tasks, assign dedicated staff to regularly monitor and understand the situation of state-owned enterprise operations and manage organizational structures to implement supervision tasks for state-owned enterprises.

7. Heads of agencies, organizations, units entrusted to be the unified supervision focal point for enterprises shall be held legally accountable to the owner for fulfilling assigned tasks or when there are violations leading to capital and State asset losses in enterprises.

Article 13. Responsibilities of the Board of Members and the Company Chairman at Enterprises where the State Holds 100% of Charter Capital

1. Based on the provisions of this Decree and relevant laws, supervise internal compliance with laws and adherence to owner decisions within the enterprise; regularly monitor through representatives for enterprises in which capital is invested.

2. Based on relevant laws and owner guidance, organize information and reporting systems on business conditions and internal management to serve internal supervision within the enterprise and monitor through representatives for enterprises in which capital is invested.

3. Implement measures to resolve difficulties and obstacles or other management measures as required by the owner or competent state agencies to ensure capital preservation and improve business efficiency.

4. Handle according to their authority or recommend the owner or competent state agencies to handle units, organizations, entities, or individuals under their management who violate laws or fail to comply with owner decisions as stipulated by law.

5. Regularly or urgently report to the owner and competent state agencies on compliance with laws and adherence to owner decisions for the enterprise as prescribed by this Decree and other relevant laws.

6. The Board of Members and the Company Chairman are responsible before the law and the Prime Minister, the Minister of the industry managing department, and the Provincial People's Committee when losses occur due to capital or property loss of the State at the enterprise if they fail to implement or fully implement necessary management measures to prevent and stop such occurrences.

Article 14. Responsibilities of Supervisors and Representatives at Enterprises

1. Based on the annual supervision, inspection, and audit plan approved, build specific supervision plans at enterprises where they are representatives or assigned to supervise.

2. Regularly or urgently report to the owner and competent state management agencies on compliance with laws and adherence to owner decisions as prescribed by this Decree and other relevant laws.

3. Recommend to the owner within their authority or request competent state agencies to apply appropriate management measures to correct and resolve difficulties and obstacles for the enterprise.

4. Recommend to the owner within their authority or request competent state agencies to conduct inspections and audits based on supervision results for enterprises.

5. Monitor and urge the implementation of management measures, recommendations, and suggestions from the owner and competent state agencies for the enterprise.

6. Be responsible before the law and the owner for fulfilling responsibilities as stipulated herein; for the accuracy of information and reports or when losses occur due to capital or property loss of the State at the supervised enterprise if they fail to implement or fully implement necessary preventive and stopping measures.

Section 2
FORMS OF SOCIAL SUPERVISION

Article 15. Forms of Supervision

1. For first-level enterprises where the State holds 100% of charter capital, the owner being the industry-managing ministry or provincial people's committee shall supervise through the following forms:

a) Reviewing, summarizing, and evaluating self-supervision reports of the enterprise;

b) Reviewing, summarizing, and evaluating reports of supervisors;

c) Summarizing recommendations, evaluations, handling measures, and implementation situations of inspection, audit, investigation conclusions, and supervision and auditing reports;

d) Receiving, reviewing, and resolving recommendations, complaints, appeals, and denunciations related to the enterprise within their authority.

2. For first-level enterprises where the State holds more than 50% of charter capital, the owner being the industry-managing ministry or provincial people's committee shall supervise through reports of representatives at the enterprise and the supervision forms specified in Points c and d, Clause 1 of this Article.

3. For second-level enterprises, the first-level enterprise and the industry-managing ministry or provincial people's committee as the owner of the first-level enterprise shall supervise through reports of representatives at the enterprise.

Article 16. Supervision through reviewing, compiling, and evaluating self-supervision reports of enterprises, reports of supervisors or representatives.

1. Based on the provisions of Article 7 of this Decree, the agency, organization, or unit entrusted with the unified supervision of enterprises shall be responsible for regularly reviewing, compiling, and evaluating the self-supervision reports of enterprises, reports of supervisors or representatives.

2. When reviewing and evaluating the self-supervision reports of enterprises, reports of supervisors or representatives, the agency, organization, or unit entrusted with the unified supervision of enterprises has the right to request enterprises, supervisors, or representatives to provide additional information, documents, or explanations regarding related issues to clarify supervisory contents. In necessary cases, it may require enterprise representatives, supervisors, or representatives to directly present unclear contents in the report.

3. The agency, organization, or unit entrusted with the unified supervision of enterprises shall proactively coordinate with relevant agencies, organizations, units, or individuals related to the business field, industry, or profession of the enterprise or hire independent evaluation organizations to clarify supervisory contents.

Article 17. Supervision through compiling recommendations, evaluations, handling measures, and implementation situations of inspection, audit, investigation conclusions, and reporting supervision results, audit reports.

1. Agencies authorized to supervise, inspect, audit, investigate have the responsibility to send inspection, audit, investigation conclusions or supervision, audit reports of enterprises to the owner for supervision implementation.

2. The agency, organization, or unit entrusted with the unified supervision of enterprises shall be responsible for compiling recommendations, evaluations, handling measures, and implementation situations of supervision, inspection, audit, investigation conclusions or audit reports into the supervision result report of the enterprise.

Article 18. Supervision through receiving, examining, and resolving recommendations, reflections, complaints, and denunciations related to enterprises.

1. The owner, within their authority, shall be responsible for receiving, examining, and resolving recommendations, reflections, complaints, and denunciations directly related to the activities of the enterprise or decisions, actions of managers and employees working at the enterprise according to the laws on complaints and denunciations and related legal documents.

2. The results of receiving, examining, and resolving recommendations, reflections, complaints, and denunciations related to the enterprise's activities or decisions, actions of managers, employees working at the enterprise shall be sent to the agency, organization, or unit entrusted with the unified supervision of enterprises to compile into the supervision result report.

Section 3
REPORTING REGIME AND HANDLING OF SUPERVISION RESULTS

Article 19. Self-supervision reports of enterprises.

Based on the guidance of the owner, which is the Ministry managing the sector or the People's Committee of the province as stipulated in Clause 2, Article 11 of this Decree, state-owned enterprises holding 100% of the charter capital shall establish self-supervision reports on compliance with laws and adherence to the owner's decisions.

Article 20. Reports of Supervisors and Representatives at Enterprises

1. Reports of supervisors and representatives at first-tier enterprises shall be carried out as follows:

a) The report is prepared quarterly and annually and submitted to the owner and state financial management agencies for the enterprise (for enterprises under the Ministry's management, it is submitted to the Ministry of Finance, and for enterprises under the provincial People's Committee's management, it is submitted to the Provincial Department of Finance).

b) Quarterly reports must not be delayed beyond the 15th day of the first month of the following quarter; annual reports must not be delayed beyond January 31 of the following year.

2. For second-tier enterprises, the reporting system for representatives appointed by the first-tier enterprise owners shall be specifically stipulated by the first-tier enterprise owners. When submitting reports to the owner, representatives at second-tier enterprises also have the responsibility to submit them to the Ministry managing the industry and the provincial People's Committee that is the owner of the first-tier enterprise.

Article 21. Reports on Monitoring Results by Owners as Ministries Managing Industries or Provincial People's Committees

1. Every six (06) months and annually, based on the results of implementing monitoring methods prescribed in Articles 16, 17, and 18 of this Decree, the owner as a Ministry managing an industry or a provincial People's Committee shall be responsible for preparing a report on monitoring results to be sent to the Ministry of Finance, the Ministry of Planning and Investment, the Government Inspectorate, and related agencies. The monitoring report must be accompanied by each enterprise's self-monitoring report, the supervisor's or representative's monitoring report at the enterprise. The deadline for submitting the six-month report is no later than August 31 of the reporting year; the annual report is no later than May 31 of the following year.

2. The monitoring report includes the following contents:

a) Characteristics and situation of enterprises under the management authority of the owner and the current status of management work for enterprises during the reporting period (legal basis and decisions of the owner);

b) Summary of the results of self-monitoring by enterprises, reports from supervisors, and representatives at enterprises;

c) Results of the owner's monitoring of enterprises in complying with laws and adhering to the owner's decisions according to the provisions of Article 7 of this Decree;

d) Evaluation of the owner's and relevant ministries, agencies, organizations, and individuals' monitoring results regarding the degree of compliance with laws and adherence to the owner's decisions by enterprises (at levels: full compliance and adherence; partial compliance and adherence; non-compliance and non-adherence); evaluation of the degree of preservation and development of state capital in enterprises;

e) Measures already applied by the owner or relevant agencies, organizations, and individuals (if any); recommendations or proposals for measures to correct, rectify, or inspect and audit (if any).

3. The monitoring report is kept in the state-owned enterprise management file of the owner and made public in accordance with the law.

Article 22. Handling of Monitoring Results

Based on the monitoring results, the owner or agency assigned by the owner has the responsibility to:

1. Timely consider and resolve difficulties and issues related to the operation of enterprises within their authority; create conditions for enterprises to achieve approved business goals and plans.

2. Urge and promptly apply measures within their authority to correct enterprise operations.

3. Recommend the Prime Minister to impose disciplinary action against the Chairman of the Board of Members or the Company Chairman at enterprises established by the Prime Minister's decision. Handle within their authority those who manage enterprises or representatives who fail to implement or fully implement information and reporting systems, fail to comply with or fully comply with the owner's regulations, and other violations of the law.

4. Decide to inspect or audit enterprises within the authority defined in this Decree.

5. Transfer case files to competent investigative agencies to pursue criminal liability when there are signs of criminal offenses.

Chapter III
ENTERPRISE INSPECTION

Article 23. Responsibility for Inspection

1. The owner, which is the Ministry managing the sector or the People's Committee of the province within their respective authority, shall be responsible for:

a) Leading and coordinating with relevant ministries and sectors to conduct regular or surprise inspections on the compliance with laws and implementation of decisions made by the owner for enterprises as stipulated in Article 7 of this Decree;

b) Guiding the procedures, formalities, and contents of inspections for enterprises under their jurisdiction as prescribed in this Decree and other related legal documents.

2. Level 1 enterprises shall be responsible for conducting internal inspections within their enterprise, inspecting compliance with laws and adherence to decisions made by the owner for level 2 enterprises.

3. Regular inspection activities shall be carried out based on the functions, tasks, and authorities of the owner or the agency or organization entrusted by the owner to manage enterprises under its control.

4. Surprise inspection activities shall be conducted when signs of law violations are detected, non-compliance with decisions made by the owner, or upon management requirements from the owner and competent state agencies.

5. Inspection activities shall be carried out by inspection teams or individuals assigned to perform inspection tasks.

Article 24. Inspection Authority

1. In cases where the owner is the Ministry managing the sector, the Minister of the Ministry managing the sector shall decide to conduct inspections or delegate to the heads of subordinate agencies and units to conduct inspections for level 1 enterprises and level 2 enterprises.

2. In cases where the owner is the People's Committee of the province, the Chairman of the People's Committee of the province shall decide to conduct inspections or delegate to the heads of subordinate departments and sectors to conduct inspections for level 1 enterprises and level 2 enterprises.

3. In cases where the owner is a level 1 enterprise, the Board of Members, Chairman of the Company, or Board of Directors of the level 1 enterprise shall decide to conduct inspections on compliance with laws and adherence to decisions made by the owner for level 2 enterprises.

4. Ministries, agencies at the ministerial level, People's Committees of the provinces that are not owners, and related agencies and units within their functions and tasks as prescribed by law shall be responsible for coordinating with the owner and agencies or units entrusted by the owner in conducting inspections on enterprises.

Article 25. Organization of Inspection Teams

1. Issuing inspection decisions:

a) Based on the annual supervision, inspection, and audit plan approved, the owner or the head of the agency or unit entrusted by the owner must issue an inspection decision and send it to the inspected enterprise, except in cases of surprise inspections;

b) In cases of surprise inspections, the inspection team must notify the inspected enterprise of the time and content of the inspection at least one working day before the inspection date.

2. The inspection decision must include the following contents:

a) Basis for inspection;

b) Object of inspection;

c) Content and scope of inspection;

d) Time limit for conducting the inspection;

đ) Name, position, workplace of the team leader and members of the inspection team or the inspector.

3. The maximum time limit for conducting the inspection is ten working days from the date of announcing the inspection decision; in cases where the inspection involves multiple objects, wide inspection areas, and complex inspection nature, the inspection period may be extended but not exceeding fifteen working days from the date of announcing the inspection decision.

4. During the inspection process, the team leader shall prepare a record of the enterprise's violation of laws or to confirm the collection and provision of information and documents related to the inspection content. The record must include the following contents:

a) Date of recording the record;

b) Name, position of the inspection team leader;

c) Name, position of the representative of the inspected enterprise;

d) Violation behavior of the inspected enterprise or collected and provided information and documents.

đ) Confirmation by the head of the inspection team and the representative of the inspected enterprise.

Article 26. Rights and obligations of the enterprise under inspection

1. The enterprise under inspection shall have the following rights:

a) To refuse to provide information, documents, or explanations on issues not within the scope and content of the inspection and clearly state the reasons for refusal;

b) To explain and clarify issues related to the content of the inspection;

c) To lodge complaints or notify competent authorities about decisions or actions that appear to violate the law by the head of the inspection team, members of the inspection team, or the owner as prescribed by law.

2. The enterprise under inspection shall have the following responsibilities:

a) To comply with the inspection decision;

b) To cooperate, provide accurate, complete, and timely information and documents as required by the inspection team or inspector;

c) To strictly implement the requirements of the inspection team or inspector; decisions and conclusions of the person issuing the inspection decision.

Article 27. Reporting Inspection Results and Inspection Conclusions

1. Within five working days from the date of completion of the inspection, the head of the inspection team or the inspector shall report the results of the inspection to the person issuing the inspection decision. The report on the inspection results shall include the following contents:

a) Evaluation of the situation and results of the inspection;

b) Conclusion on the content of the inspection;

c) Recommendations for measures to handle violations of the law and other relevant matters (if any);

d) Recommendations for the competent authority to conduct an audit (if any);

đ) Remedial solutions (if any).

2. The report on the inspection results shall be sent to the person issuing the inspection decision.

3. Within five working days from the date of receipt of the report on the inspection results and the explanation of the enterprise under inspection (if any), the person issuing the inspection decision must issue the inspection conclusion.

4. The inspection conclusion must be in writing and sent to the enterprise under inspection, relevant agencies, organizations, and individuals. The inspection conclusion shall be kept in the enterprise management file.

Article 28. Handling Inspection Results

1. Based on the inspection results, the person issuing the inspection decision shall take responsibility to apply measures within their authority to correct and address difficulties and obstacles faced by the enterprise. They shall require the enterprise to propose or implement remedial solutions.

2. In cases where the inspection results are insufficient to assess the actual situation of the enterprise, the person issuing the inspection decision within their authority or may recommend the head of the owning agency to decide on an audit within their authority or recommend the competent authority to issue an audit decision.

3. During the process of reviewing and handling inspection results, if signs of criminal offenses are discovered, the person issuing the inspection decision shall transfer the case file to the competent investigative authority as prescribed by law.

Chapter IV
ENTERPRISE AUDIT

Article 29. Audit Responsibilities

1. The Ministry managing the industry and the provincial People's Committee, as owners of enterprises and agencies performing audit functions within their respective jurisdictions, shall be responsible for conducting audits or participating in audits regarding compliance with laws and implementation of decisions by owners for enterprises when there is one of the bases prescribed by the Law on Auditing and this Decree.

2. For investment areas or management and use of State capital and assets invested in enterprises, based on the results of supervision and inspection, the Ministry managing the industry, as the owner of the enterprise, shall be responsible for auditing compliance with laws and adherence to owner decisions at least twice every year for enterprises within the jurisdiction specified in Point a, Clause 2, Article 30 of this Decree; the provincial People's Committee, as the owner of the enterprise, shall be responsible for auditing compliance with laws and adherence to owner decisions at least once every year for enterprises within the jurisdiction as stipulated in Clause 3, Article 30 of this Decree.

3. In cases where the Ministry managing the industry, as the owner of the enterprise, does not fulfill the responsibility prescribed in Clause 2 of this Article or when discovering signs of law violations by the enterprise, the Chairman of the People's Committee of the province where the main office of the enterprise is located has the right to issue an audit decision on matters within the management authority of the provincial People's Committee concerning enterprises within the jurisdiction of the Ministry managing the industry as stipulated in Clause 2 of Article 30 of this Decree. The Chairman of the provincial People's Committee shall bear responsibility for issuing the audit decision and send it to the Ministry managing the industry for coordination during the audit process.

Article 30. Inspection Authority

1. The Government Inspectorate shall inspect the compliance with laws and adherence to decisions of the owner for first-tier enterprises established by the Prime Minister's decision and second-tier enterprises.

2. Sectoral Ministry Inspectors:

a) Shall inspect the compliance with laws and adherence to decisions of the owner for first-tier enterprises established by the Minister's decision or converted from state-owned enterprises under their ministry or assigned to their management, and second-tier enterprises.

For first-tier enterprises established by the Prime Minister's decision where the sectoral ministry is the direct superior of the Board of Members, the Ministry Inspector shall conduct inspections after reporting and reaching consensus with the Chief Inspector General of the Government.

b) Shall inspect the compliance with specialized laws, technical regulations, industry management rules, and fields within the scope of their ministry’s administrative management for enterprises as prescribed by the law on inspection.

3. Provincial Inspectors (referred to collectively as Provincial Inspectors) shall inspect the compliance with laws and adherence to decisions of the owner for first-tier enterprises established by the provincial People's Committee Chairman's decision or converted from state-owned enterprises under the provincial People's Committee and second-tier enterprises; inspect the compliance with laws for enterprises as stipulated in Clause 3, Article 29 of this Decree when assigned by the provincial People's Committee Chairman. In cases where Provincial Inspectors cannot meet the necessary requirements to conduct inspections, they have the responsibility to report to the Government Inspectorate for consideration and handling.

4. Department Inspectors shall inspect the compliance with specialized laws, technical regulations, industry management rules, and fields within the scope of their department’s administrative management for first-tier enterprises established by the provincial People's Committee Chairman's decision or converted from state-owned enterprises under the provincial People's Committee; the compliance with specialized laws of enterprises as stipulated in Clause 3, Article 29 of this Decree when assigned by the provincial People's Committee Chairman.

Article 31. Duties and Powers of the Decision-Maker for Inspection, Head of the Inspection Team, and Members of the Inspection Team

When conducting inspections of enterprises, the decision-maker for inspection, the Head of the Inspection Team, and members of the Inspection Team shall perform duties and powers as prescribed in Articles 46, 47, 48, 53, 54, and 55 of the Inspection Law and detailed provisions and guidance on implementation of certain articles of the Inspection Law issued by Government Decree No. 86/2011/NĐ-CP dated September 22, 2011, and Government Decree No. 07/2012/NĐ-CP dated February 9, 2012, concerning agencies assigned to perform specialized inspection functions and specialized inspection activities.

Article 32. Basis, Procedure, and Formalities for Conducting Inspections; Conclusions and Handling of Inspection Conclusions

The basis, procedure, and formalities for conducting inspections; conclusions and handling of inspection conclusions regarding enterprises' compliance with laws and adherence to decisions of the owner shall be carried out according to the provisions of the Inspection Law, Government Decree No. 86/2011/NĐ-CP dated September 22, 2011, detailing and guiding the implementation of certain articles of the Inspection Law, and Government Decree No. 07/2012/NĐ-CP dated February 9, 2012, concerning agencies assigned to perform specialized inspection functions and specialized inspection activities.

Chapter V
VIOLATION HANDLING AND IMPLEMENTATION ORGANIZATION

Article 33. Handling Violations

1. The manager of the enterprise, the representative, depending on the nature and degree of violation, shall be subject to one of the following disciplinary forms:

a) Applying the form of reprimand or warning in cases where there is a violation of the obligation to submit reports and provide information as prescribed in this Decree and other relevant laws concerning supervision, inspection, and audit of state-owned enterprises;

b) Applying the form of demotion in salary up to dismissal in cases where there is a violation of the obligation to implement management measures, decisions of the owner, and competent state agencies leading to the loss of capital and assets of the State at the enterprise.

2. The Minister of the managing sector, the Chairman of the People's Committee of the province, who are the owners of the enterprises, depending on the nature and degree of violation, shall bear responsibility and be subject to handling according to current laws if there is a loss of capital and assets of the State at the enterprise under their authority in the following cases:

a) Not implementing or not fully implementing the responsibility for supervision, inspection, and audit of state-owned enterprises under their management or assigned to manage as prescribed in this Decree;

b) Violating the obligation to report or reporting inaccurately the results of supervision of state-owned enterprises under their management or assigned to manage as prescribed in this Decree;

c) Not implementing or not fully implementing directives from the Government, Prime Minister, and conclusions or decisions on handling issued by financial management agencies, auditing agencies, inspection agencies, and the State Audit Office regarding measures to address violations, rectify weaknesses, and improve management of state-owned enterprises or state capital and assets at the enterprise.

3. The head of the agency, organization, unit, or person assigned to supervise and inspect the enterprise, if they commit a violation while performing their duties; the decision-maker for audits, the head of the audit team, and members of the audit team, if they fail to fulfill their responsibilities in detecting violations of the enterprise leading to the loss of capital and assets of the State, shall be subject to handling according to the law depending on the nature and degree of violation.

Article 34. Effective Date

This Decree takes effect from July 10, 2014.

Article 35. Implementation

Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairmen of provincial People's Committees, Chairmen of the Board of Members, Chairmen of companies, Chairmen of the Board of Directors, supervisors, and representatives of enterprises are responsible for implementing this Decree./.