Directive No. 500-TTg on Urgently Organizing and Reorganizing State-Owned Enterprises

DIRECTIVE

ON THE URGENCY OF ORGANIZING AND REORGANIZING STATE ENTERPRISES

To urgently organize and reorganize state enterprises according to Decision No. 90/TTg dated March 7, 1994, and Directive No. 272/TTg dated May 3, 1995, of the Prime Minister, while also implementing the Law on State Enterprises and the administrative reform program, the Prime Minister requests the Ministries, ministerial-level agencies, government agencies, and localities to carry out the following tasks:

1. The Ministries, ministerial-level agencies, government agencies, and provincial People's Committees and municipal People's Committees directly under the central government (referred to as Ministries, sectors, and localities) need to quickly submit to the Prime Minister comprehensive plans for reorganizing state enterprises within their jurisdiction to ensure that the reorganization of centrally-managed enterprises is completed by the end of September 1995, and locally-managed enterprises by the end of October 1995. The plans should provide an overview without accompanying specific files.

2. The reorganization and restructuring of state enterprises to operate under the Law on State Enterprises must be closely combined with gradually eliminating the current system where ministries and local administrative levels directly manage state enterprises, while simultaneously addressing the situation where many state enterprises operate in the same industry in the same area but are managed by different ministries, sectors, and localities, particularly in the construction and machinery sectors.

a. When formulating comprehensive plans, the Ministries, sectors, and localities must review all joint-stock companies and independent enterprises under their management; carefully consider the establishment of new joint-stock companies according to Decision No. 90/TTg (referred to as Joint-Stock Company 90) and the proposal to establish additional joint-stock companies according to Decision No. 91/TTg (referred to as Joint-Stock Company 91). For independent enterprises directly under the Ministries, sectors, and localities, they need to classify as follows:

- Large enterprises or those formed by merging smaller enterprises to create large enterprises to establish companies with a Board of Directors.

- Enterprises that can be organized into the structure of Joint-Stock Company 90 established by the Ministries, provincial People's Committees, and municipal People's Committees authorized by the Prime Minister. In cases where there are large enterprises operating in fields where Joint-Stock Companies 91 or 90 have been or are being established, formal proposals should be made to relevant economic-technical sector management Ministries to consider organizing and reorganizing these enterprises into specialized joint-stock companies.

Enterprises that have operated up until now without the primary aim of profit-making, if deemed necessary to maintain, should be transferred to public service activities.

- Enterprises that have operated mainly as public services funded by state budget funds should be organized into public service units directly under the Ministries, sectors, or localities.

- Enterprises directly under specialized Ministries that are not necessary to participate in joint-stock companies or engage in public service activities and are placed directly under the Ministries should be transferred to localities for reorganization based on territorial areas.

b. In the short term, the construction and heavy industry sectors need to cooperate with other Ministries and sectors to consider reorganizing on an inter-sectoral basis. The Ministry of Construction and the Ministry of Heavy Industry need to discuss with related Ministries, sectors, and localities to urgently complete an overall plan for reorganizing and restructuring state enterprises (at least for centrally-managed enterprises) operating in the construction and heavy industry sectors to submit to the Prime Minister for consideration and approval by September 10, 1995, serving as the basis for the initial reorganization and restructuring of these two sectors.

3. The examination and approval of comprehensive plans will be conducted as follows:

a. After the Deputy Prime Minister responsible for the block or the Minister authorized by the Prime Minister listens to the presentation and provides comments on each comprehensive plan, the Minister or the head of the sector, or the Chairman of the provincial People's Committee or municipal People's Committee directly under the central government will refine the plan, seek opinions from the Central Economic Commission (for central Ministries and sectors) and the Provincial Party Committee Standing Committee or Municipal Party Committee Standing Committee (for localities), and officially submit it to the Prime Minister for approval and authorization to the Minister, head of the sector, or Chairman of the provincial People's Committee or municipal People's Committee directly under the central government to issue decisions on organization and personnel for newly registered or restructured enterprises according to the provisions of the Law on State Enterprises.

b. To expedite the examination and approval of comprehensive plans, the Prime Minister authorizes as follows:

- Deputy Prime Ministers directly listen to the presentations of comprehensive plans of central Ministries and sectors under their respective blocks.

- Deputy Prime Minister Tran Duc Luong directly listens to the presentations of comprehensive plans of Hanoi City and Ho Chi Minh City.

- Minister and Chairman of the State Planning Commission Do Quoc Sam directly listens to the presentations of comprehensive plans of some provinces and cities directly under the central government with many state enterprises.

- Minister and Head of the Central Steering Committee for Enterprise Reform Phan Van Tiem directly listens to the presentations of comprehensive plans of remaining provinces and cities directly under the central government.

4. The State Planning Commission, Ministry of Finance, Ministry of Labor, Invalids and Social Affairs, Government Price Board, and General Statistics Office, based on the division of labor in Directive No. 262/TTg dated May 2, 1995, of the Prime Minister, need to urgently complete draft regulatory documents guiding the implementation of the Law on State Enterprises and submit them to the Prime Minister no later than the end of September 1995.