Directive No. 748-TTg on the implementation of the Financial Management and Business Accounting Regulations for State-owned Enterprises issued together with Decree No. 59/CP dated October 3, 1996 of the Government.

DIRECTIVE

Regarding the implementation of the Financial Management and Business Accounting Regulations for State-Owned Enterprises issued together with Decree No. 59/CP dated October 3, 1996 of the Government

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To fundamentally reform the financial management mechanism of state-owned enterprises, further enhance their financial autonomy while linking it to their responsibility in business operations and the use of state capital and assets; at the same time, ensure strict supervision by competent state management agencies in the financial management of state-owned enterprises, contributing to improving the efficiency of these enterprises, on October 3, 1996, the Government issued the "Financial Management and Business Accounting Regulations for State-Owned Enterprises" attached to Decree No. 59/CP.

The Prime Minister requests that ministries, sectors, localities, and state-owned enterprises implement the aforementioned Financial Management and Business Accounting Regulations:

1. Ministry of Finance:

- Issue within October 1996 guiding documents for implementing the said Regulations including:

+ State Capital and Asset Management System at State-Owned Enterprises;

+ Fixed Asset Management, Usage, and Depreciation System;

+ Business Cost and Product Cost Management System;

+ Provision for Losses System;

+ Profit Distribution and Fund Management System;

+ Audit, Financial Indicator Disclosure, and Other Related Systems.

- Adjust the "Model Financial Regulations of State-Owned Corporations" to comply with the provisions of the above-mentioned Regulations.

- Adjust accounting systems applicable to enterprises to align with the Financial Management and Business Accounting Regulations for State-Owned Enterprises and related implementing guidelines.

- Organize training sessions on the Financial Management and Business Accounting Regulations for State-Owned Enterprises issued with Decree No. 59/CP of the Government and related guidelines from the Ministry of Finance for ministries, sectors, localities, and state-owned enterprises (including Board of Directors, General Managers or directors of enterprises, and chief accountants) to uniformly implement and enforce.

- Immediately take measures to rectify accounting practices and business cost management; organize inspections on the establishment and use of funds in state-owned enterprises until the end of 1996, and propose to the Prime Minister measures to regulate part of the excess bonus and welfare funds in enterprises with excessive funds (as of the end of 1996) to be transferred to the state budget to contribute to solving the wage task in the state budget plan for 1997.

2. The Ministry of Labor, Invalids and Social Affairs:

- Issue before December 1996 guidelines for establishing and registering labor norms and wage rates for state-owned enterprises to implement from the beginning of 1997, aiming to standardize labor and wage management, ensuring wages truly become an economic lever to encourage business development, linking wages with productivity, quality, and business efficiency for enterprises and workers.

- Develop plans to guide and organize training for enterprise management officials and personnel responsible for labor and wage matters in ministries, sectors, localities, and state-owned enterprises to immediately carry out tasks of establishing, adjusting, and re-examining approval of unit product or service activity wage rates for each industry according to state regulations.

- Organize inspections and audits of the implementation of labor and wage policies in enterprises to promptly address issues in accordance with the law.

- Promptly submit to the Government proposals for mechanisms to reform wage and bonus management in state-owned enterprises.

3. Ministers, Heads of Ministries equivalent to Ministries, Heads of Government Agencies, Chairmen of Provincial People's Committees under the Central Government, Boards of Directors of State Corporations, Companies, and other state economic organizations shall be responsible for coordinating with the Ministry of Finance and the Ministry of Labor, Invalids, and Social Affairs in organizing the implementation, guidance, and inspection of the Financial Management and Business Accounting Regulations in state-owned enterprises.

4. Request the Vietnam General Confederation of Labor to widely mobilize all sectoral trade unions, grassroots trade unions, and individual union members in state-owned enterprises to further enhance the collective rights of workers in enterprises, working together with the state to supervise corporate financial activities in compliance with state regulations.