Directive No. 658/TTg on Promoting the Implementation of State-Owned Enterprise Shareholding

DIRECTIVE

On Promoting the Implementation of State-Owned Enterprise Stock Ownership Reform

The policy of reforming a portion of state-owned enterprises into stock companies over the past few years has achieved some initial results, but overall, the implementation has been slow. To continue to actively and firmly implement the reform of a portion of state-owned enterprises according to the spirit of Resolution No. 63-TB/TW dated April 4, 1997 of the Politburo and the Resolution of the Eighth National Congress of the Party, the Prime Minister issues the following directive:

1. The Central Steering Committee for Stock Ownership Reform shall review existing documents, submit them to the Government for amendment and supplementation in accordance with the guidance of the Politburo. Relevant ministries shall review the issued documents, study, amend, supplement, and concretize them appropriately to create a consistent legal basis, accelerate the process of converting certain state-owned enterprises into joint-stock companies.

2. Ministries, agencies at the ministerial level, government agencies, and people's committees at all levels must thoroughly grasp and explain to the public and workers in state-owned enterprises about the Party and Government's viewpoint and policy on the reform of a portion of state-owned enterprises in order to fundamentally change perceptions regarding this policy. The Central Steering Committee for Stock Ownership Reform shall coordinate with relevant agencies and organizations to promote awareness so that everyone understands the benefits of investing capital in production through purchasing shares of reformed enterprises.

3. The Ministry of Planning and Investment shall establish principles for classifying state-owned enterprises that need to retain 100% state capital, those requiring state control shares, and special shares, to be submitted to the Government for decision in August 1997.

Based on these principles, in September 1997, ministries, agencies at the ministerial level, government agencies, provincial people's committees, and state-owned holding companies established by the Prime Minister's Decision No. 91/TTg dated March 7, 1994 shall select and report to the Prime Minister a list of affiliated state-owned enterprises meeting the conditions for stock ownership reform in 1997 and 1998.

4. Promptly strengthen and supplement members of the Stock Ownership Reform Steering Committee to enhance guidance on stock ownership reform work at ministries, sectors, and localities. Ministries, sectors, and localities that have not yet established a Stock Ownership Reform Steering Committee must urgently establish such committees in accordance with the Prime Minister's Decision No. 548/TTg dated August 13, 1996.

5. The Central Steering Committee for Stock Ownership Reform shall develop a detailed plan for implementing stock ownership reform from now until the end of 1997, submit it to the Prime Minister for approval and implementation, and assist the Prime Minister in focusing on guiding ministries and localities with many state-owned enterprises that can undergo stock ownership reform, particularly provinces and cities such as Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, Ba Ria-Vung Tau, Dong Nai, Binh Duong, and ministries such as Transportation, Industry, Agriculture and Rural Development, Trade, etc. In the fourth quarter of 1997, organize a mid-term review of the implementation of stock ownership reform according to the Government's Decree No. 28/CP dated May 7, 1996.

6. Ministers, heads of agencies at the ministerial level, heads of government agencies, chairmen of provincial people's committees directly under the central government, and boards of directors of state-owned holding companies established by the Prime Minister shall develop plans for implementation and organize the execution in accordance with the schedule and objectives of stock ownership reform, in line with the policies of the Party and the State. Report monthly to the Central Steering Committee for Stock Ownership Reform for consolidation and reporting to the Government.

7. Entrust the State Securities Commission to take the lead, coordinating with the Ministry of Finance to develop a proposal for establishing a securities trading center, bonds to be submitted to the Prime Minister for consideration and decision in September 1997.

The Chairman of the Central Steering Committee for Stock Ownership Reform, ministers, heads of agencies at the ministerial level, heads of government agencies, chairmen of provincial people's committees directly under the central government, and boards of directors of state-owned holding companies established by the Prime Minister shall be responsible for organizing and guiding the effective implementation of this Directive.

Tran Duc Luong

(Signed)