Directive No. 8-TTg on promptly completing the procedures for re-establishing and registering state-owned enterprises according to Decree No. 388-HĐBT dated November 20, 1991 of the Council of Ministers.

DIRECTIVE

ON PROMPTLY COMPLETING THE REVISION OF PROCEDURES FOR ESTABLISHING AND REGISTERING STATE ENTERPRISES IN ACCORDANCE WITH DECREE NO. 388-HĐBT DATED NOVEMBER 20, 1991 OF THE COUNCIL OF MINISTERS

Decree No. 388-HĐBT on the issuance of regulations for the establishment and dissolution of state enterprises has been taken seriously by sectors and localities in its implementation, viewed as a necessary policy to contribute to the rapid restructuring of state enterprises. Nationwide, there have been reviews and classifications of enterprises; several provinces and centrally-administered cities have boldly restructured and dissolved many loss-making enterprises, especially those previously established by district and county levels. Enterprises with potential for survival and development have initiated procedures to submit applications for re-establishment to their supervisory authorities. However, up to now, the deadline for re-registering state enterprises as stipulated in Circular No. 34-CT dated January 28, 1992 of the Chairman of the Council of Ministers has passed, and in many sectors and localities, there remain numerous enterprises that have not completed their application procedures and assessments. This situation is partly due to the large volume of work, which has come to each level in a concentrated manner and must be carried out simultaneously; additionally, guidance from economic and technical sectors and competent agencies is still lacking in specificity and coordination, and the procedures are cumbersome and lack thoroughness.

To promptly complete the revision of procedures for establishing and registering state enterprises, the Prime Minister issues the following directive:

1. Ministries and People's Committees of provinces and centrally-administered cities must appoint a deputy minister or vice chairman of the provincial People's Committee to oversee and a number of capable staff members to specifically implement Decree No. 388-HĐBT, focusing their efforts continuously to quickly complete the re-establishment and registration of state enterprises.

Economic and technical ministries and the State Planning Commission, which are responsible for reviewing enterprise establishment applications, must immediately improve their review methods to ensure compliance with review requirements while minimizing inconvenience and costs for related units. Regional division can be implemented to conduct simultaneous reviews at two locations: Hanoi and Ho Chi Minh City.

Departments and sectors with representatives participating in the Review Board must allocate sufficient personnel and create favorable conditions for their representatives to effectively fulfill their tasks.

2. The schedule for revising procedures for establishing and registering state enterprises is adjusted as follows:

a) For enterprises meeting the conditions for survival and development:

- Applications for re-establishment must be submitted to the competent authority for review no later than December 31, 1992.

- By the end of the first quarter of 1993, all procedures for re-establishment and registration of enterprises, including obtaining new seals for enterprises permitted to re-establish, must be completed.

b) Enterprises without conditions for survival and development must be promptly addressed through appropriate measures (restructuring, changing production orientation, altering ownership form, or dissolution).

c) When reviewing for re-establishment of enterprises meeting operational conditions and when considering solutions for enterprises failing to meet re-establishment conditions, close cooperation with debt settlement management departments at various levels is required to avoid overlapping and inconsistent practices.

3. Regarding the establishment and re-registration of Enterprise Unions and Holding Companies:

The Central Institute for Economic Management Research needs to cooperate with relevant ministries, sectors, and provincial People's Committees to promptly summarize the operational experience of this type of enterprise and submit recommendations to the Prime Minister for consideration and decision-making so that restructuring and organizing these Enterprise Unions and Holding Companies can begin in the first quarter of 1993. Pending the overall directive from the Prime Minister, these enterprises will continue to operate normally.

4. Only ministers and chairmen of provincial People's Committees have the authority to establish (propose establishment) and sign decisions for the establishment of state enterprises after the competent authorities have reviewed the applications and officially agreed in writing to allow establishment.

After the establishment of state enterprises, ministers shall not delegate management of such enterprises to subordinate institutes or schools within their ministries. Similarly, for local enterprises, management shall not be delegated to districts or counties; however, the Chairmen of the People's Committees of Hanoi and Ho Chi Minh Cities may consider delegating management to district People's Committees if deemed necessary, with the latter being accountable to the city-level People's Committee for a certain number of enterprises.

5. In joint ventures, careful consideration should be given to facilitate the operation of member units with large scale or located far from the joint venture office, as follows:

a) If the unit operates independently as a legal entity and does not necessarily need to be part of the joint venture in terms of production technology, it must follow the procedures for establishment under Decree No. 388-HĐBT.

b) If they remain members of the joint venture without full legal status, these units do not need to follow the procedures for establishment and registration under Decree No. 388-HĐBT but continue to operate under the current mechanism; the General Director of the joint venture is responsible to the higher supervisory authority for the entire operation of these member units.

6. The Prime Minister requests ministers, heads of state committees, and heads of other government agencies and chairmen of provincial People's Committees to fully understand the importance of establishing and re-registering state enterprises; they should regard this as one of the key tasks of their sector or locality, concentrate their leadership to complete this task according to the specified deadlines, and not extend the timeframe further.