Decree No. 87/2015/ND-CP on supervision of state capital investment in enterprises; financial oversight, assessment of operational efficiency, and disclosure of financial information of state-owned enterprises and enterprises with state capital.

DECREE

On supervision of state capital investment in enterprises; financial supervision, evaluation of business performance, and public disclosure of financial information for state-owned enterprises and enterprises with state capital

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

Pursuant to the Law on Management and Use of State Capital for Investment in Business Operations dated November 26, 2014;

Based on the Enterprise Law dated November 26, 2014;

Pursuant to the Investment Law on November 26, 2014;

Pursuant to the Law on Public Investment dated June 18, 2014;

At the proposal of the Minister of Finance,

The Government promulgates this Decree on supervision of state capital investment in enterprises; financial supervision, evaluation of business performance, and public disclosure of financial information for state-owned enterprises and enterprises with state capital.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree provides for:

1. Supervision of the situation of state capital investment in enterprises.

2. Financial supervision, evaluation of business performance, and classification of state-owned enterprises.

3. Financial supervision of enterprises with state capital.

4. Public disclosure of financial information of state-owned enterprises.

Article 2. Applicability

The objects to which this Decree applies include:

1. Financial agencies.

2. Agencies representing owners.

3. Enterprises wholly owned by the State (hereinafter referred to as state-owned enterprises):

a) Limited liability company with one member - Parent companies of economic groups, holding companies, companies operating under the parent-subsidiary model (hereinafter collectively referred to as parent companies) established by the Prime Minister, Ministries, ministerial-level agencies, agencies under the Government (collectively referred to as Ministries managing sectors), People's Committees of provinces and centrally-administered cities (collectively referred to as Provincial People's Committees);

b) Independent limited liability company with one member (hereinafter referred to as independent limited liability company with one member) established by Ministries managing sectors, Provincial People's Committees;

c) State Capital Investment Corporation (SCIC).

4. Representatives of state capital invested in joint-stock companies and limited liability companies with two or more members.

5. Other agencies, organizations, and individuals related to activities of state capital investment, management, and utilization in enterprises.

6. State-owned enterprises operating in fields directly serving national defense, security, combining economy with national defense and security, finance, banking, lottery, securities shall implement financial supervision, evaluation of business performance, and public disclosure of financial information according to this Decree and laws on national defense, security, finance, banking, lottery, and securities. In cases where laws on national defense, security, finance, banking, lottery, and securities have different provisions from those stipulated in this Decree, such laws shall be applied.

Article 3. Explanation of Terms

1. Financial supervision report is a report analyzing, evaluating, and warning about financial issues of each enterprise.

2. Report on the results of financial supervision is a consolidated report summarizing the results of financial supervision work for enterprises under the agencies representing owners.

3. Enterprise with state capital is a joint-stock company or limited liability company with two or more members having state capital contribution.

4. Direct supervision is the inspection and audit conducted directly at the enterprise.

5. Indirect supervision is the monitoring and inspection of the situation of the enterprise through financial reports, statistics, and other reports as prescribed by law and by the agencies representing owners.

6. Pre-supervision is the examination and review of the feasibility of short-term and long-term plans, investment projects, capital raising schemes, and other projects and schemes of the enterprise.

7. In-process supervision is the monitoring and inspection of the implementation of plans and projects of the enterprise, compliance with laws and regulations of the agencies representing owners throughout the implementation process.

8. Post-supervision is the inspection of the enterprise's operational results based on periodic reports, compliance with laws by the agencies representing owners or the enterprise charter, and adherence to legal regulations.

9. Financial supervision is the monitoring, inspection, auditing, and evaluation of financial issues and compliance with financial policies and laws of the enterprise.

10. Special financial supervision is the process of supervising enterprises showing signs of financial instability that need to be monitored and corrected by competent authorities.

11. Evaluation criteria is a system of indicators and standards used to evaluate business performance and classify enterprises.

Article 4. The purpose of monitoring state capital investment in enterprises, financial oversight, assessing effectiveness, and publicly disclosing enterprise financial information

1. Assess compliance with regulations on scope, procedures, formalities, authority, and the effectiveness of state capital investment in enterprises.

2. Fully and promptly assess the financial situation and operational efficiency of enterprises to implement measures to address existing issues, achieve business goals, plans, public service tasks, enhance production and business efficiency, and competitiveness.

3. Assist the state and representative bodies of owners in promptly identifying weaknesses in the production and business activities of enterprises, issuing warnings, and proposing corrective measures.

4. Implement transparent disclosure of the financial situation of state-owned enterprises.

5. Enhance the responsibility of enterprises in complying with legal provisions regarding the management and utilization of state capital invested in production and business operations within enterprises.

Chapter II
To implement the supervision content prescribed in Article 6 of Decree No. 87/2015/NĐ-CP, the representative body of the owner must conduct analysis and assessment of state capital investment to:

Article 5. Monitoring Subjects

The Ministry of Finance shall lead and coordinate with relevant ministries and sectors to carry out monitoring of state capital investment in enterprises by representative bodies of owners.

Article 6. Content of Surveillance

1. The content of monitoring state capital investment in enterprises shall be implemented in accordance with the provisions of Clauses 2, 3, 4, 5, and 6 of Article 51 of the Law on Management and Use of State Capital for Investment in Production and Business Operations at Enterprises.

2. The Ministry of Finance shall establish forms to implement the monitoring contents specified in Clause 1 of this Article.

Article 7. Methods of Organizing Monitoring

1. Monitoring state capital investment in enterprises shall be conducted through direct monitoring, indirect monitoring, pre-monitoring, ongoing monitoring, post-monitoring, with a focus on pre-monitoring and post-monitoring.

2. In the fourth quarter of the previous year, the Ministry of Finance shall prepare a Monitoring Plan for state capital investment in enterprises and publish it before January 31 each year. The Ministry of Finance shall lead and coordinate with relevant ministries and sectors to implement the published Monitoring Plan for state capital investment in enterprises.

3. Reporting System:

a) Representative bodies of owners shall prepare a Report on the situation of state capital investment in enterprises in the previous year and submit it to the Ministry of Finance before May 31 each year. The content of the Report shall comply with the provisions of Article 6 of this Decree;

b) The Ministry of Finance shall prepare a Report on monitoring state capital investment in enterprises in the previous year and report it to the Government before July 31 each year.

4. In cases where violations by representative bodies of owners concerning the scope of state capital investment, procedures, formalities, and decision-making authority for state capital investment in enterprises are discovered, the Ministry of Finance shall report to the Prime Minister for handling in accordance with the law.

Chapter III
FINANCIAL MONITORING, ASSESSMENT OF OPERATIONAL EFFECTIVENESS, AND RATING FOR STATE ENTERPRISES

Section 1
FINANCIAL MONITORING

Article 8. Monitoring Subjects

1. Representative Bodies of Owners:

a) The ministry managing the industry shall lead and coordinate with the Ministry of Finance to conduct financial monitoring and assess the operational effectiveness of production and business activities of enterprises that are parent companies or independent limited liability companies established or managed by the ministry managing the industry;

b) Provincial People's Committees shall conduct financial monitoring and assess the operational effectiveness of production and business activities of enterprises that are parent companies or independent limited liability companies established by provincial People's Committees.

2. Financial Authorities:

a) The Ministry of Finance shall coordinate with representative bodies of owners to conduct financial monitoring of parent companies or independent limited liability companies established or managed by the ministry managing the industry; compile and report to the Government the results of financial monitoring by representative bodies of owners, boards of directors of economic groups, and state-owned corporations;

b) Departments of Finance in provinces and cities shall assist provincial People's Committees in conducting financial monitoring and assessing production and business effectiveness, compile and report the results of financial monitoring of enterprises established by provincial People's Committees.

Article 9. Content of supervision

1. Supervise the preservation and development of capital.

2. Supervise the management and use of state capital and assets at enterprises according to the following contents:

a) Investment activities with regard to investment projects, including: Sources of capital mobilization, progress in implementing investment projects, disbursement progress of investment capital;

b) Capital investment outside the enterprise, including financial supervision of subsidiaries and associated companies through the investment portfolio of the parent company in accordance with the provisions of Section 2 Chapter III of this Decree; supervise the enterprise's investment abroad in accordance with the provisions of Section 3 Chapter III of this Decree;

c) The situation of capital mobilization and the use of mobilized capital, issuance of bonds;

d) Property management situation, debt management at the enterprise, the ability to pay off debts of the enterprise, the ratio of liabilities to equity;

đ) The situation of monetary circulation of the enterprise.

3. Supervise the results of production and business operations of the enterprise

a) Implementation of production and business plans, fulfillment of tasks for supplying public goods and services ordered by the State, assigned plans;

b) Business operation results: Revenue, profit, return on equity (ROE), return on total assets (ROA);

c) Fulfillment of obligations to the State budget;

d) Profit distribution, establishment and use of funds.

4. Supervise compliance with laws on investment, management and use of state capital at enterprises; promulgate and implement financial management regulations of the enterprise.

5. Supervise restructuring of state capital invested in enterprises, restructuring of capital of enterprises invested in subsidiaries and associated companies.

6. Supervise the implementation of wage, remuneration, bonuses, responsibility allowances, and other benefits for employees, enterprise managers, Supervisors, and representatives of enterprise capital in accordance with the Labor Code.

7. The Ministry of Finance shall stipulate forms to implement the supervision contents specified in Clauses 1, 2, 3, 4, and Clause 5 of this Article.

Article 10. Basis for Financial Supervision

1. Current legal provisions on enterprise financial management.

2. Enterprise organization and operation charter, enterprise financial management regulations.

3. Annual and five-year (05) production and business development plans of the enterprise, monitoring objectives in each period established by the representative body of the owner for each enterprise.

4. The enterprise’s annual financial report audited independently and approved by the Board of Members; six-month (06) financial reports, quarterly financial reports, periodic operational reports, and other ad hoc reports as required by the representative body of the owner or state management agencies.

5. Results of inspections, audits conducted by competent agencies and published in accordance with regulations or sent in writing to the representative body of the owner.

6. Other relevant information and documents as prescribed by law.

Article 11. Methods of Supervision

1. Financial supervision is carried out through direct, indirect, pre-, during-, post-supervision methods, focusing on pre- and during-supervision to promptly identify financial risks, limitations in enterprise financial management, and provide warnings and solutions.

2. Inspections and audits are conducted regularly or ad hoc in accordance with legal provisions on inspection and audit.

Article 12. Supervisory Organization

1. Responsibilities of the representative body of the owner:

a) Establishing and promulgating the Financial Supervision Regulation and Efficiency Evaluation of Enterprises (specifying detailed responsibilities, coordination mechanisms, reports within the representative body of the owner and between the representative body of the owner and related parties) within six (06) months from the date this Decree takes effect;

b) Assigning a unit to be the focal point for implementing financial supervision and evaluating enterprise operations;

c) Building an information technology system to collect information directly from enterprises;

d) Determining specific financial monitoring indicators (if any) for each enterprise during each period, appropriate to the business activities and financial situation of the enterprise;

đ) Developing a financial supervision plan (including inspection and audit plans regarding finance) for enterprises. The financial supervision plan must clearly define objectives, contents, subjects, and scope of supervision for each enterprise. The financial supervision plan must be reviewed by the financial agency and relevant Ministries and sectors, the Government Inspectorate, and the State Audit Agency before December 31 of the previous year to finalize, approve, and announce before January 31 of each year;

e) Specifying the time for submitting financial situation reports of enterprises to the representative body of the owner, ensuring that the representative body of the owner has sufficient time to compile and issue a six-month (06) financial supervision report sent to the Ministry of Finance before August 31 of the reporting year and a financial supervision annual report sent to the Ministry of Finance before May 31 of the following year;

g) Collecting and managing financial information of each enterprise in a timely, complete, and continuous manner;

h) Promptly warning enterprises when their financial situations or financial management show signs of risk. Directing enterprises to take timely measures to prevent and address risks and weaknesses; proposing corrective measures and handling violations of financial management by enterprises; reporting to the Prime Minister and notifying the same-level financial agency in cases of violation of laws on enterprise finance;

i) Based on the results of enterprise financial supervision and financial management regulations, the representative body of the owner prepares a financial supervision report for each enterprise. In cases where enterprises exhibit signs of financial instability as stipulated in Article 24 of this Decree, the representative body of the owner assesses "The enterprise shows signs of financial instability" and decides on the necessity to implement special financial supervision according to the provisions of Section 4 Chapter III of this Decree;

k) Preparing periodic six-month (06) and annual financial supervision result reports sent to the Ministry of Finance along with individual enterprise financial supervision reports. Six-month reports are submitted before August 31 of the reporting year; annual reports are submitted before May 31 of the following year. The representative body of the owner is responsible for the truthfulness and accuracy of the financial supervision results of enterprises established or managed by itself;

l) Implementing directives of the Government, the Prime Minister, and recommendations of the financial agency, the inspectorate, audit agency regarding the handling of violations and measures to strengthen enterprise financial supervision. Disciplining managers who are civil servants or officials in cases of non-compliance with reporting requirements and failure to follow recommendations and directives in the financial supervision reports of the representative body of the owner and the Ministry of Finance;

In cases where financial reports show signs of incompleteness or inaccuracy, the representative body of the owner has the right to request enterprises to hire independent accounting and auditing companies meeting professional conditions to re-examine the financial data of enterprises to have a basis for evaluation, comments, and conclusions on supervision;

2. Responsibilities of the Ministry of Finance:

a) Cooperating with the representative body of the owner to establish and implement plans to supervise enterprises; supervising specialized topics or as required by the Government, the Prime Minister;

b) Building an information system suitable for collecting, storing, and processing financial supervision information and reports of enterprises;

c) Based on the financial supervision result reports of the representative body of the owner and specialized supervision result reports on enterprise financial management (prepared by the inspectorate, State Audit Agency, or financial agency), compiling and reporting to the Government and the Prime Minister semi-annual and annual reports on the management and use of state capital at enterprises, operational efficiency, and financial status of enterprises. Semi-annual reports are submitted before September 30 of the reporting year, annual reports are submitted before July 31 of the following year;

d) Warning enterprises showing signs of financial instability, having the responsibility to respond to enterprise suggestions and proposals;

đ) Clarifying bases, observations, warnings, and recommendations in cases where enterprises and the representative body of the owner have different opinions from the Ministry of Finance. If the representative body of the owner and enterprises still have different opinions, the Ministry of Finance will consolidate and report to the Prime Minister for consideration and decision;

e) Recommending the Prime Minister to handle according to the law those responsible individuals in the representative body of the owner and enterprise managers who fail to comply with reporting requirements and recommendations and directives of the representative body of the owner and the Ministry of Finance;

3. Responsibilities of enterprises:

a) Establishing and promulgating management procedures to serve financial supervision and evaluation of business operation effectiveness of enterprises, including: budget planning and forecasting procedures, accounting procedures, consolidated financial statement preparation procedures, financial risk management procedures, business production and operation plans, financial supervision regulations and effectiveness evaluation procedures for subsidiaries and associated companies.

b) Enact regulations on the allocation of tasks and responsibilities among departments; mechanisms for coordination between departments, especially those with supervisory functions and internal control units; and financial oversight within the enterprise. The Board of Members (Company Chairman) shall use the organizational structure of the enterprise to carry out this supervision. The enterprise must prepare periodic annual reports on internal financial oversight activities as required by the representative body of the owner (if applicable).

c) Establish an information technology system to support the operations of the internal control unit and the enterprise as a whole, ensuring the collection of information on financial monitoring indicators of the enterprise.

d) Prepare and submit reports serving financial oversight activities according to the provisions of the financial authority and the representative body of the owner as stipulated in this Decree.

đ) Have the right to hire financial consulting services to develop specific financial monitoring criteria (if necessary), and report to the representative body of the owner for review and approval as a basis for implementation.

e) Be responsible for hiring independent accounting and auditing firms at the request of the representative body of the owner to re-examine the enterprise's financial data, with these costs being recorded as enterprise expenses.

g) Develop and immediately implement measures to prevent and address financial risks to the enterprise when warned by the representative body of the owner or the financial authority.

h) Fully and promptly comply with directives and recommendations from the representative body of the owner and the financial authority in financial oversight reports. In cases of disagreement, the enterprise must report to the representative body of the owner and the financial authority within fifteen working days from receipt of the directive or recommendation. When the representative body of the owner and the financial authority issue final opinions, the enterprise is responsible for implementing them.

Section 2
FINANCIAL SUPERVISION OF SUBSIDIARIES AND ASSOCIATED COMPANIES SUBSIDIARIES AND ASSOCIATED COMPANIES

Article 13. Supervisory Subjects

1. The parent company shall conduct financial supervision over subsidiaries and associated companies.

2. The representative body of the owner shall coordinate with the financial authority to indirectly supervise important subsidiaries and associated companies of the enterprise through the parent company.

Article 14. Supervision Targets

1. The targets for supervision by the parent company as provided in Clause 1, Article 13 of this Decree include all subsidiaries and associated companies of the enterprise.

2. The targets for supervision by the representative body of the owner and the financial authority as provided in Clause 2, Article 13 of this Decree include:

a) Subsidiaries of the enterprise;

b) Important associated companies of the enterprise. The determination of important associated companies is made by the representative body of the owner in collaboration with the parent company based on one of the following criteria:

- Strategic importance (in terms of technology, market, or finance) to the development of the enterprise;

- Parent company's shareholding ratio exceeding 35% of the charter capital;

- Charter capital reaching the classification criteria of project group B or higher as stipulated in the Law on Public Investment;

- Expected profit distribution from the associated company contributing more than 10% of the enterprise's reported revenue (including sales revenue, service provision revenue, and financial activity revenue).

Article 15. Content of Supervision

1. For subsidiary companies

a) The parent company shall carry out supervision of subsidiary companies based on referring to the contents of supervision prescribed in Article 9 of this Decree;

b) The representative body of the owner shall coordinate with the financial department and the parent company to supervise the financial situation of subsidiary companies according to the provisions of Clauses 1, 2, and 3 of Article 9 of this Decree.

2. For associated companies

a) Business operation situation: Fluctuations in revenue, fluctuations in profit compared to the last two years;

b) Effectiveness of capital investment: Recovery of capital, earning profits, dividends distributed from capital invested outside the enterprise;

c) Payment ability, debt-to-equity ratio;

d) Transfer of invested capital.

3. The Ministry of Finance shall stipulate the forms "Financial Supervision Report for Subsidiary Companies and Associated Companies" that the parent company must submit to the representative body of the owner and the financial department.

4. The parent company has the responsibility to develop forms to implement financial supervision of subsidiary companies and associated companies according to the contents prescribed in Clause 1 and Clause 2 of this Article.

Article 16. Methods of Supervision

1. The parent company shall carry out financial supervision of subsidiary companies and associated companies through direct supervision, indirect supervision, pre-supervision, ongoing supervision, post-supervision, focusing particularly on indirect supervision.

2. The representative body of the owner shall take the lead and coordinate with the financial department to carry out indirect supervision of important subsidiary companies and associated companies of enterprises.

3. In cases where there are signs of violation of laws and regulations on corporate finance, the representative body of the owner shall coordinate with the financial department to consider and decide to implement direct supervision at the parent company or subsidiary company held 100% of the charter capital by the parent company.

Article 17. Organization of Supervision

1. Responsibilities of the representative body of the owner:

a) Proactively unify with the parent company the list of subsidiary companies and associated companies to be included in the Financial Supervision Plan as prescribed in Point d Clause 1 of Article 12 of this Decree;

b) Assign the parent company to prepare the Financial Supervision Report for subsidiary companies and associated companies of the enterprise within the Financial Supervision Plan;

c) Collect periodic financial supervision reports of the parent company for subsidiary companies and associated companies within the Financial Supervision Plan;

d) Analyze business operation situations and financial risks of subsidiary companies and associated companies of enterprises;

e) In case of discovering business operation situations and effectiveness of capital investment showing signs of risk, issue warnings and require the parent company to clarify the causes in the most recent Financial Supervision Report for subsidiary companies and associated companies.

2. Responsibilities of the financial department:

a) Coordinate with the representative body of the owner to implement plans to supervise important subsidiary companies and associated companies of enterprises;

b) Analyze financial risks of subsidiary companies and associated companies to provide warnings and recommendations to the representative body of the owner and the parent company.

3. Responsibilities of the enterprise: Implement the provisions of Clause 3 of Article 12 of this Decree and the following provisions:

a) Proactively establish financial supervision indicators and effectiveness of capital investment suitable for the characteristics and operational conditions of each subsidiary company and associated company;

b) Develop financial supervision plans for subsidiary companies and associated companies, ensuring timely collection and processing of information; unify the list of important subsidiary companies and associated companies to be supervised by the representative body of the owner;

c) Prepare Financial Supervision Reports for subsidiary companies and associated companies six (06) months and annually to be submitted to the representative body of the owner and the financial department at the same level along with the reports prescribed in Point d Clause 3 of Article 12 of this Decree.

In case the results of business operations and effectiveness of capital investment in subsidiary companies and associated companies do not meet the approved plan at the beginning of the period, the parent company must explain and propose measures to address and resolve issues for each subsidiary company and associated company in the Financial Supervision Report for subsidiary companies and associated companies submitted to the representative body of the owner;

d) When warned by the representative body of the owner and the financial department about financial risks for subsidiary companies and associated companies, the parent company must immediately develop and implement measures to prevent and resolve such risks.

Section 3
SUPERVISION OF CAPITAL INVESTED BY ENTERPRISES OUTSIDE THE COUNTRY

Article 18. Supervisory Subject

1. The parent company shall supervise the overseas investment activities of the parent company, subsidiary companies, and joint ventures established by the parent company and subsidiary companies (established before July 1, 2010).

2. The representative body of the owner shall take the lead in coordinating with the financial agency to supervise overseas investment projects funded by state-owned enterprises and their subsidiaries through the parent company.

Article 19. Object of Supervision

The object of supervision includes all overseas investment projects of enterprises, including those of the parent company, subsidiaries, and joint ventures established by the parent company and subsidiaries.

Article 20. Content of Supervision

1. The situation regarding management and utilization of capital invested overseas by the enterprise:

a) Project progress compared to the plan;

b) Overseas investment activities of the enterprise: Investment forms, project investment capital structure, changes in total investment amount (if any);

c) Capital raising, asset management, and debt management of the project abroad, including guarantees for loans or other forms of funding provided by enterprises within the parent-subsidiary model.

2. Business operation results of the project: Revenue, profit, return on equity (ROE), return on assets (ROA).

3. Capital recovery (including equity capital and other forms of funding) and fulfillment of obligations to the state budget: Dividends distributed to Vietnamese investors; profits retained for reinvestment; profits repatriated to the home country; and profits used for other purposes.

4. Risks at the investment location.

5. Issuance and implementation of regulations on business operations and management and utilization of capital and assets of the enterprise abroad.

6. The Ministry of Finance shall stipulate the formats for implementing the supervision content prescribed in this Article.

Article 21. Basis for Supervision

1. Legal provisions on overseas investment, legal provisions on management and utilization of state capital invested in production and business activities of enterprises.

2. Financial reports of the project abroad for six (06) months and annually.

3. Results of inspections, audits conducted by competent agencies at the project (if any).

4. Regulations on business operations and management and utilization of capital and assets of the enterprise abroad.

5. Norms and technical standards of the industry.

6. Investment reports of the project approved by the competent authority.

Article 22. Methods of Supervision

1. The parent company shall supervise overseas investment activities using direct supervision, indirect supervision, pre-supervision, ongoing supervision, post-supervision, with a focus on indirect supervision.

2. The representative body of the owner shall take the lead and coordinate with the financial agency to supervise the overseas investment activities of enterprises, focusing on pre-supervision and indirect supervision.

3. In cases where the representative body of the owner or the financial agency discovers that the enterprise has reported inaccurately, resulting in mismanagement or misuse of state capital invested in the enterprise related to overseas investment activities or overseas investment projects showing signs of financial instability, the representative body of the owner needs to coordinate with the financial agency to select direct supervision at the parent company or wholly-owned subsidiary engaged in overseas investment.

Article 23. Supervisory Organization

1. Responsibilities of the representative body of the owner:

a) Collecting periodic financial supervision reports from enterprises regarding investment projects abroad;

b) Conducting analysis on the business operations and financial status of overseas investment projects of enterprises. In cases where signs of risk are detected, timely warnings must be issued to the parent company, while simultaneously notifying the financial authority for consideration and implementation of direct supervision at the parent company or wholly-owned subsidiary;

c) The representative body of the owner has the responsibility to examine and coordinate with the financial authority to implement necessary measures to resolve difficulties and issues for overseas investment projects; report to the Prime Minister in cases exceeding their authority as stipulated;

2. Responsibilities of the financial department:

a) Cooperating with the representative body of the owner to supervise overseas investment projects of enterprises;

b) Based on reports from enterprises and the representative body of the owner, conducting analysis on business operations and risks of overseas investment projects. In cases where violations of financial laws and regulations or potential risks are identified, timely warnings must be issued to the representative body of the owner;

3. Responsibilities of enterprises:

a) Establishing operational rules and managing and utilizing capital and assets of enterprises abroad;

b) Establishing monitoring indicators for business operation results and investment effectiveness for overseas investment projects;

c) Developing plans to monitor financial conditions and investment effectiveness in overseas investment projects;

d) Preparing a financial condition and overseas investment effectiveness monitoring report every six (06) months and annually to be submitted to the representative body of the owner and the financial authority. In cases where business operation results and investment capital effectiveness do not meet the plan, the enterprise must provide explanations and propose measures for each project. The submission deadline for the report shall follow the regulations of the representative body of the owner;

e) During the implementation of overseas investment projects, if significant issues affecting investment activities and business operations (political risks, legal risks, market risks, financial risks) arise, the enterprise must truthfully and promptly report to the representative body of the owner and the financial authority and propose solutions;

Section 4
SPECIAL FINANCIAL SUPERVISION

Article 24. Signs of Financial Instability in Enterprises

1. Signs of financial instability in enterprises include:

a) For enterprises currently in a planned loss phase: The reported annual loss amount exceeds 30% of the approved planned loss level by the competent authority;

b) For enterprises post-planned loss phase:

- The reported annual loss amount reaches 30% or more of the owner's investment capital or cumulative losses exceed 50% of the owner's investment capital;

- The debt-to-equity ratio exceeds the safe level as prescribed by laws on state capital management and utilization in production and business activities of enterprises and regulations of the representative body of the owner (if applicable);

- The ability to pay maturing debts is less than 0.5;

2. Other signs that the representative body of the owner needs to consider when determining signs of financial instability in enterprises include:

a) For enterprises currently in a planned loss phase: Actual losses over two consecutive years exceed planned losses;

b) For enterprises post-planned loss phase

- Continuous losses for two or more years;

- Net revenue or gross profit continuously decreases for two or more years;

- Has a low credit rating according to credit rating organizations;

- Does not conduct an audit of financial statements, or receives a disclaimer opinion, a refusal opinion, or a qualified opinion in the audit report for the same material issue affecting business operations over two consecutive years;

3. The signs specified in Clause 1 and Clause 2 of this Article serve as warning signals for placing an enterprise under special financial supervision. When an enterprise exhibits any of these signs, the representative body of the owner and the corresponding financial authority will jointly assess the signs of financial instability, business operations, and investment activities to decide whether to place the enterprise under special financial supervision or continue regular financial supervision as stipulated in Section 1 Chapter III of this Decree.

Article 25. Special Financial Supervision Decision

1. When a business is placed under special financial supervision, the representative body of the owner shall issue a special financial supervision decision for the business. The special financial supervision decision shall include the following contents:

a) The name of the business subject to special financial supervision;

b) Reasons for special financial supervision;

c) Contents of special financial supervision.

2. The special financial supervision decision issued by the representative body of the owner shall be notified to the same-level financial agency for coordination in implementation.

Article 26. Procedures for Handling by the Representative Body of the Owner for Businesses Placed Under Special Financial Supervision

1. Coordinate with the business to conduct analysis and evaluation of the main causes leading to the risk of financial instability of the business.

2. Coordinate with the business to develop a plan to overcome financial difficulties. In cases where the business requires restructuring its organizational structure, business operations, and finance, the representative body of the owner must approve the business's restructuring plan within thirty working days from the date of receipt of the business's plan.

The remediation plan and restructuring plan must clearly specify the unit or individual responsible for implementation; specific results upon completion of the plan; start and expected completion dates; necessary conditions for implementation and support requirements within the scope prescribed by law (if any).

The representative body of the owner may hire consultants to assist in researching and evaluating the remediation plan and restructuring plan of the business. The cost of hiring consultants shall be recorded as part of the business's expenses.

3. Specify the frequency of reporting, monitoring criteria, and information feedback mechanisms between the representative body of the owner, the business, and other related parties (if necessary).

4. Monitor the business's implementation of the approved plan.

5. Coordinate with the same-level financial agency to analyze and evaluate the business's operational results, financial management, and production and business operation management to provide guidance to the business.

6. In necessary cases, the representative body of the owner may organize inspections or coordinate with the same-level financial agency to inspect the business to assess the accuracy and truthfulness of indicators in the business's reports; management and operation activities of the business's management board; production and business management, financial management, and other resources of the business.

Inspections must comply with the provisions of the law on inspection and examination. At the end of the inspection, there must be a report and conclusion on the inspected matters and recommendations to improve the business's operational efficiency.

7. Submit to the Prime Minister a handling plan in cases where the business has implemented the requirements of the representative body of the owner and the financial agency but the business's production and business operations and financial situation have not improved.

8. Evaluate and decide to remove businesses under special financial supervision from the list of special financial supervision when the business has recovered, no longer exhibits signs of financial instability, and fully complies with the reporting and supervision regime stipulated in this Decree. The representative body of the owner shall issue a decision to terminate special financial supervision. This decision shall be notified to the same-level financial agency.

9. Businesses under special financial supervision that have not recovered their production and business operations and financial situation according to the business's restructuring plan and remediation plan after the remediation and restructuring plan implementation period ends must report to the competent authority to implement ownership transfer or reorganization of the business in accordance with the regulations.

Article 27. Responsibilities of the Board of Members (Company Chairman), General Director or Director of enterprises under special financial supervision

1. Develop remediation plans, restructuring plans for organizational structure, business operations, and finance to submit to the representative body of the owner within thirty days from the date of the Decision on special financial supervision.

2. Report to the representative body of the owner and the financial authority at the frequency agreed with the representative body of the owner on the indicators approved for monitoring in the remediation plan, restructuring plan for organizational structure, business operations, and finance of the enterprise.

Section 5
ASSESSMENT OF BUSINESS ACTIVITY EFFECTIVENESS AND ENTERPRISE RATING

Article 28. Criteria for assessing the effectiveness of enterprise operations

1. Criteria for assessing the effectiveness of enterprise operations:

- Criterion 1. Revenue.

- Criterion 2. Post-tax profit and post-tax profit margin on equity.

- Criterion 3. Overdue payable debt, ability to pay maturing debt.

- Criterion 4. Compliance with laws on investment, management and use of state capital in enterprises, tax laws and other revenue payments to the State budget, regulations on financial reporting systems and reports for implementing financial supervision.

- Criterion 5. Implementation situation of public goods products and services.

2. The criteria stipulated in Clause 1 of this Article are determined and calculated based on data in annual audited financial reports and periodic statistical reports according to current regulations of a single-member limited liability company and its parent company.

When calculating the criteria 1, 2, 4, and criterion 5 stipulated in Clause 1 of this Article, factors affecting these criteria shall be considered and excluded:

- Due to objective reasons such as natural disasters, fires, epidemics, wars, and other force majeure causes;

- Due to expansion investment in production development according to planning and plans approved by competent authorities, which affect profits in the first two years from the year the investment project is put into operation;

- Due to State price adjustments (for products with State-set prices) affecting the revenue of the enterprise or having to implement economic and social targets as directed by the Government and the Prime Minister.

3. For enterprises established and actually operating stably and mainly providing public goods products and services, the enterprise rating is based on each of the criteria 1, 3, 4, and criterion 5 stipulated in Clause 1 of this Article.

4. The assessment of the results of business management performance is carried out in accordance with the Government's regulations and the following criteria:

- Degree of achievement of profit after tax and post-tax profit margin on equity indicators set by the representative body of the owner;

- Enterprise classification result;

- Degree of completion of the plan for supplying public goods products and services (for enterprises supplying public goods products and services).

Article 29. Basis for assessing business effectiveness and enterprise classification

1. Annual investment development plans, production and business operation plans, financial plans of the enterprise;

2. Results of implementing periodic six-month and annual plans;

3. Six-month and annual financial reports;

4. Results of enterprise financial supervision;

5. Issues arising that may affect the implementation results of the investment development plan, production and business operation plan, and financial plan of the enterprise.

Article 30. Methods for Evaluating Effectiveness and Classifying Enterprises

1. Based on the criteria for evaluating enterprise operational effectiveness stipulated in Article 28 of this Decree, the representative body of the owner shall assign appropriate evaluation and classification indicators that match the specific production and business activities of each enterprise. These indicators must be communicated to enterprises in writing before April 30 of the planning year and may not be adjusted throughout the implementation period of the plan (except for major force majeure cases).

The annual business production plans and financial plans of enterprises must be established based on the enterprise's strategic plan, industry development trends, legal changes, previous year's operational results, strategic tasks or assigned tasks within the planning year, internal and external conditions of the enterprise. Annual plans must include specific financial targets.

2. The evaluation of effectiveness and classification of enterprises is carried out based on comparing the plans, goals, and tasks assigned by the representative body of the owner with the actual outcomes.

3. The results of the evaluation and classification of enterprises are categorized as follows: Enterprise classified as Type A, Enterprise classified as Type B, Enterprise classified as Type C according to the degree of completion of the evaluation indicators assigned by the representative body of the owner to each enterprise.

a) For enterprises engaged in business operations, based on the classification results for each criterion 1, 2, 3, and criterion 4 specified in Clause 1, Article 28 of this Decree, classify each enterprise as follows:

- An enterprise is classified as Type A when there is no criterion classified as Type C, where criterion 2 and criterion 4 are classified as Type A;

- An enterprise is classified as Type C when criterion 2 is classified as Type C or criterion 2 is classified as Type B and the remaining three criteria are classified as Type C;

- An enterprise is classified as Type B if it does not meet the criteria for Type A or Type C.

b) For enterprises established and operating regularly and primarily providing public goods and services, based on the classification results for each criterion 1, 3, 4, and criterion 5 specified in Clause 1, Article 28 of this Decree, classify each enterprise as follows:

- An enterprise is classified as Type A when there is no criterion classified as Type C and criterion 4 and criterion 5 are classified as Type A;

- An enterprise is classified as Type C when criterion 5 is classified as Type C or criterion 5 is classified as Type B and the remaining three criteria are classified as Type C;

- An enterprise is classified as Type B if it does not meet the criteria for Type A or Type C.

4. The Ministry of Finance shall provide detailed guidance on the methods for evaluating effectiveness and classifying enterprises as prescribed in this Article.

Article 31. Reports on Evaluation and Classification of Enterprises

1. For Enterprises:

a) Enterprises base their self-evaluation and classification on the criteria for evaluating operational effectiveness stipulated in this Decree and the indicators assigned by the representative body of the owner, prepare and submit annual reports on evaluation and classification to the agencies specified in Point b, Clause 1 of this Article for review and publication of the classification;

b) Parent companies submit reports on evaluation and classification to the representative body of the owner and the Ministry of Finance, while independent limited liability companies under the management of the Ministry or provincial People's Committees submit reports on evaluation and classification to the representative body of the owner;

c) Enterprises must submit their reports on evaluation and classification according to the time frame set by the representative body of the owner.

2. Representative body of the owner:

a) Specifies the submission deadlines for reports on evaluation and classification from enterprises to the representative body of the owner, ensuring that the representative body of the owner has sufficient time to review the classification results before May 31 each year;

b) Publicizes the evaluation and classification indicators for enterprises, simultaneously sending these indicators to the Ministry of Finance for coordinated evaluation;

c) Reviews reports on the evaluation of operational effectiveness and classification of enterprises established or managed by itself;

d) Prepares reports on the evaluation of operational effectiveness and classification of state-owned enterprises, and the implementation of assigned public service tasks, sends them to the Ministry of Finance for comments before May 31 of the following year;

đ) The representative body of the owner announces the classification results of enterprises before June 30 each year.

3. Ministry of Finance:

a) Participates in opinions with the representative bodies of the owners regarding the classification of enterprises within ten working days from the date of receipt of the request for comments from the representative body of the owner;

b) Prepares reports on the evaluation of operational effectiveness and classification of state-owned enterprises, and the implementation of assigned public service tasks, reports to the Government before July 31 each year.

Chapter IV
FINANCIAL SUPERVISION OF ENTERPRISES WITH STATE CAPITAL

Article 32. Supervisory Subject

1. The representative body of the owner shall perform supervisory functions through the Representative at joint-stock companies and limited liability companies with two or more shareholders having state capital contributions.

2. Financial Authorities:

a) Annually, the Ministry of Finance compiles financial supervision reports of the representative bodies of the owners to report to the Government on the effectiveness of operations and the fulfillment of public service tasks assigned to enterprises in which the State holds more than 50% of the charter capital; report to the Government on the effectiveness of state capital investment in enterprises in which the State holds not more than 50% of the charter capital;

b) Provincial Departments of Finance are the focal points to assist provincial People's Committees in compiling supervision reports for enterprises with state capital under the provincial People's Committees.

Article 33. Content of Supervision

1. For enterprises in which the State holds more than 50% of the charter capital

a) Supervise the preservation and development of state capital at the enterprise.

b) Supervise the management and use of state capital and assets at the enterprise according to the following contents:

- Investment activities with capital and assets at the enterprise and investment activities outside the enterprise (capital mobilization linked to investment projects, progress in implementing investment projects, disbursement progress of investment capital);

- Funding mobilization and use of raised funds; issuance of bonds;

- Asset management and debt management in the enterprise, the ability to repay debts, debt-to-equity ratio;

- Cash flow situation of the enterprise.

c) Supervise the business activities of the enterprise:

- Business operation results: Revenue, profit, return on equity (ROE), return on total assets (ROA);

- Fulfillment of financial obligations to the state budget.

d) Supervise the implementation of plans to divest state capital, recover state capital, collect profits, and dividends distributed from the enterprise.

2. For enterprises in which the State holds not more than 50% of the charter capital

a) Supervise the preservation and development of state capital at the enterprise;

b) Supervise the situation of capital mobilization and the use of mobilized capital;

c) Supervise the business activities of the enterprise: Business operation results: Revenue, profit, return on equity (ROE), return on total assets (ROA);

d) Supervise the implementation of plans to divest state capital, recover state capital, collect profits, and dividends distributed from the enterprise.

3. The Ministry of Finance shall specify specific forms and indicators of reports prescribed in Clause 1 and Clause 2 of this Article.

Article 34. Methods of Supervision

1. For enterprises in which the State holds more than 50% of the charter capital: Financial supervision is carried out indirectly through periodic, ad hoc, or upon request reports by the representative body of the owner reported by the Representative of state capital at the enterprise. In case signs of violation of laws on corporate financial management are detected, the representative body of the owner directs the Representative of state capital at the enterprise to require the Board of Auditors of the enterprise to conduct inspections on compliance with laws on management, use, preservation, and development of capital of the enterprise.

The representative body of the owner bears ultimate responsibility for supervising the enterprise, the Representative of state capital at the enterprise is an individual entrusted by the representative body of the owner to supervise the enterprise and only bears responsibility for matters entrusted by the representative body of the owner.

2. For enterprises in which the State holds not more than 50% of the charter capital: Financial supervision and evaluation of the effectiveness of state capital use at the enterprise are carried out indirectly through periodic reports by the Representative of state capital at the enterprise.

Article 35. Financial Supervision Reporting System

1. For enterprises in which the State holds more than 50% of the charter capital

a) Financial Supervision Report

Every six (06) months and annually, the State Capital Representative at the enterprise shall prepare a financial supervision report according to the contents stipulated in Clause 1, Article 33 of this Decree and submit it to the agency representing the owner and the same-level financial authority (the Ministry of Finance for state-owned enterprises undergoing shareholding transformation, conversion from economic groups, state-owned joint-stock companies, or those converted under the jurisdiction of a ministry; the Provincial Department of Finance for state-owned enterprises undergoing shareholding transformation or conversion from enterprises under the provincial People's Committee).

The time for submitting the six-monthly and annual financial supervision reports shall be carried out in accordance with the regulations of the agency representing the owner.

b) Report on the Results of Financial Supervision

- Based on the financial supervision report of the State Capital Representative at the enterprise, the industry management ministry shall conduct financial supervision over joint-stock companies and limited liability companies converted from state-owned enterprises that are parent companies, or limited liability companies established or managed by the ministry, and compile the results of such supervision into the ministry’s financial supervision result report to be submitted to the Ministry of Finance before July 31 of the reporting year for the six-monthly report and before May 31 of the following year for the annual report.

- Based on the financial supervision report of the State Capital Representative at the enterprise, the provincial People's Committee shall conduct financial supervision over enterprises converted or undergoing shareholding transformation from state-owned enterprises established and assigned by the provincial People's Committee, and have the provincial Department of Finance compile the results of financial supervision and submit them to the Ministry of Finance before July 31 of the reporting year for the six-monthly report and before May 31 of the following year for the annual report.

- The Ministry of Finance shall compile the financial supervision results reports from the industry management ministries and provincial People's Committees to report to the Government before September 30 of the reporting year for the six-monthly report and before July 31 of the following year for the annual report. The content of the report includes the assessment of the effectiveness of operations and the fulfillment of public service tasks assigned to state-owned enterprises holding more than 50% of the registered capital nationwide.

2. For enterprises in which the State holds not more than 50% of the charter capital

a) Financial Supervision Report

Annually, the representative shall prepare a financial supervision report according to the contents stipulated in Clause 2, Article 33 and submit it to the agency representing the owner. The deadline for submitting the report shall be carried out in accordance with the regulations of the agency representing the owner.

b) Report on the Results of Financial Supervision

Based on the financial supervision report of the State Capital Representative at the enterprise, the agency representing the owner shall compile the financial supervision result report and submit it to the Ministry of Finance before May 31 of the following year so that the Ministry of Finance can compile a report to the Government on the effectiveness of state capital utilization in enterprises nationwide.

Article 36. Evaluation of Enterprise Operations with State Capital

The agency representing the owner shall base its criteria for evaluating the operational efficiency of state-owned enterprises to study and establish criteria for evaluating the efficiency of state capital investment in enterprises with state capital into two categories: Enterprises where the state holds more than 50% of the registered capital and enterprises where the state holds no more than 50% of the registered capital. The agency representing the owner shall base its evaluation of the efficiency of state capital investment in enterprises and the performance of enterprises with state capital to consider continuing investment, expanding investment, or divesting state capital in these enterprises; simultaneously serving as a basis for assessing and rewarding the State Capital Representatives at enterprises and forming the foundation for planning and assigning tasks to the State Capital Representatives at enterprises for the following year.

Chapter V
PROVISIONS ON PUBLIC DISCLOSURE OF FINANCIAL INFORMATION OF STATE ENTERPRISES

Section 1
GENERAL PROVISIONS ON PUBLIC DISCLOSURE OF FINANCIAL INFORMATION

Article 37. Subjects Implementing Financial Information Disclosure

1. State-owned enterprises shall disclose financial information in accordance with the provisions of Section 2 Chapter V of this Decree and the Decree on Disclosure of Enterprise Activities.

2. Enterprises with state capital shall disclose financial information in accordance with the laws and the Charter of the enterprise.

3. Representative bodies of state owners shall disclose financial information of enterprises in accordance with the provisions of Section 3 Chapter V of this Decree and the Decree on Disclosure of State-Owned Enterprise Activities.

4. The Ministry of Finance shall disclose financial information of enterprises in accordance with the provisions of Section 4 Chapter V of this Decree and the Decree on Disclosure of State-Owned Enterprise Information.

5. Enterprises operating in finance, banking, insurance, lottery, securities exchange, and securities depository centers shall disclose financial information in accordance with the specialized laws and the provisions of this Decree.

6. State-owned enterprises directly serving national defense and security and state-owned enterprises combining economic activities with national defense and security shall disclose financial information in accordance with the guidelines of the Minister of Public Security and the Minister of National Defense.

Article 38. Purposes and Requirements for Financial Information Disclosure

1. Purpose of Financial Information Disclosure

a) Ensuring transparency, honesty, and objectivity regarding the financial situation of state-owned enterprises; timely detection of violations of financial management regulations and accounting systems of enterprises;

b) Exercising the rights and responsibilities of state owners and employees in supervising, inspecting, and implementing democratic regulations in state-owned enterprises; practicing thrift, combating waste and corruption, enhancing business efficiency, preserving and developing state capital.

2. Requirements for Financial Information Disclosure

a) The basis for disclosing financial information of enterprises is the annual financial report, management report, and financial monitoring report of the enterprise; the annual financial monitoring report of the representative body of state owners;

b) Financial information disclosure must comply with the requirements for information disclosure as stipulated in the Decree on Disclosure of State-Owned Enterprise Activities.

Section 2
DISCLOSURE OF FINANCIAL INFORMATION OF STATE-OWNED ENTERPRISES

Article 39. Contents of Periodic Financial Information Disclosure

1. Enterprises shall disclose the Semi-Annual Financial Report and the Annual Financial Report (audited) including: Balance Sheet; Income Statement; Cash Flow Statement; Notes to the Financial Statements in accordance with the Accounting Law. For enterprises operating under the parent company-subcompany model, when disclosing the audited Annual Financial Report, the enterprise must also disclose the Annual Financial Report of the parent company and the consolidated Annual Financial Report.

2. Enterprises shall disclose the Financial Report of the enterprise together with the audit opinions, suggestions from the representative body of state owners, and the financial authority regarding the financial report and financial status of the enterprise.

3. The deadline for disclosing the Financial Report of the enterprise is before August 15 of the reporting year for the Semi-Annual Financial Report and before May 31 of the following year for the Annual Financial Report.

Article 40. Methods for Periodic Disclosure of Financial Information

1. The periodic disclosure of financial information shall be carried out on the enterprise's electronic information website, through written reports, other publications of the enterprise, and at the enterprise’s staff, workers, and employees meeting.

2. The enterprise shall send the audited semi-annual financial report and annual financial report to the representative body of the owner and the Ministry of Planning and Investment for public disclosure as prescribed; and send the audited semi-annual financial report and annual financial report to the Ministry of Finance for coordination in supervising the public disclosure of the enterprise's financial information.

Article 41. Content of Unusual Financial Information Disclosure

The enterprise shall disclose unusual financial information in accordance with the provisions of the Enterprise Law.

Section 3
DISCLOSURE OF INFORMATION BY THE REPRESENTATIVE BODY OF THE OWNER

Article 42. Contents of Information Disclosure by the Representative Body of the Owner

1. The representative body of the owner shall regularly disclose on its electronic portal the list of enterprises established or managed by itself and the State’s share capital in those enterprises.

2. The representative body of the owner shall disclose the supervision plan for enterprises established or managed by itself before January 31 each year, and simultaneously send it to the Ministry of Finance for coordination in supervision.

3. The representative body of the owner shall disclose the decision on annual performance targets for each enterprise established or managed by itself before May 31 each year, and simultaneously send it to the Ministry of Finance for coordination in supervision.

4. The representative body of the owner shall disclose the report on investment, management, and use of state capital in enterprises before June 30 each year.

5. The representative body of the owner shall disclose the semi-annual financial report and annual financial report of the enterprise within five working days from the date of receipt of the enterprise's financial reports.

6. The Ministry of Finance shall stipulate the forms for disclosing information under Clause 4 of this Article.

Article 43. Methods for Disclosure of Information by the Representative Body of the Owner

1. The representative body of the owner shall disclose the financial information of state-owned enterprises according to the methods prescribed in the Decree on the Disclosure of State-Owned Enterprise Activities.

2. The representative body of the owner must prepare and send to the Ministry of Finance a report on the implementation of the disclosure of financial information of the representative body of the owner and enterprises before June 30 of the following year.

Section 4
DISCLOSURE OF INFORMATION BY THE MINISTRY OF FINANCE

Article 44. Contents of Information Disclosure by the Ministry of Finance

1. Disclose the supervision plan for state capital investment in enterprises before January 31 each year.

2. Disclose the Government's report on enterprise investment, management, and use of state capital not later than ten days after the Government reports to the National Assembly.

3. Disclose the assessment report on enterprise activities and classification results not later than October 30 of the following year.

4. Disclose the supervision report on the implementation of financial information disclosure by enterprises and representative bodies of owners not later than October 30 of the following year.

5. Based on the Prime Minister's directive, announce the results of state capital investment supervision in enterprises of the previous year.

Article 45. Methods for Publicizing Financial Information of the Ministry of Finance

1. The Ministry of Finance shall establish a dedicated section titled "Publicizing Financial Information of Enterprises" on its official website to receive and publicize financial information of enterprises. At the same time, the Ministry of Finance shall set up an official email box to receive publicized information sent by enterprises and their representative bodies.

2. In cases where publicizing information cannot be completed within the prescribed timeframe due to force majeure reasons, the Ministry of Finance shall report to the Prime Minister regarding the temporary suspension of publicizing and the expected time for resuming such publicizing. The Ministry of Finance must immediately publicize the information once the force majeure event has been resolved or upon expiration of the temporary suspension period.

Chapter VI
REWARD AND VIOLATION HANDLING

Article 46. Rewards for Enterprise Managers

1. Annually, based on the level of task completion, enterprise managers may be considered for rewards from the Enterprise Manager Reward Fund as follows:

a) Excellent task completion: Maximum reward of 1.5 months' salary of the enterprise manager;

b) Task completion: Maximum reward of 1 month's salary of the enterprise manager;

c) Failure to complete tasks: No reward.

2. The amount allocated and usage of the Enterprise Manager Reward Fund, and the authority to decide on the reward amount for enterprise managers, shall be carried out in accordance with the Government's regulations and guidelines issued by the Ministry of Finance.

Article 47. Handling Violations and Disciplinary Measures

1. For Enterprise Managers

The representative body of the owner shall consider the degree and consequences of damage to state capital invested in the enterprise, and decide on disciplinary measures: Reprimand, warning, demotion in rank, dismissal, removal from position; determine the salary and other benefits for the enterprise manager if they violate the following provisions:

a) Failure to submit, submitting incompletely, or submitting late reports as required by competent authorities or the representative body of the owner; contents of the report are not truthful or incomplete;

b) Failure to publicize financial information at the specified time and according to the stipulated contents;

c) Failure to implement or implement inadequately the directives, recommendations, and solutions proposed by the representative body of the owner and the finance authority.

2. For State Capital Representatives in Enterprises

The representative body of the owner shall impose penalties on state capital representatives in enterprises appointed or authorized by the representative body of the owner if they violate the following provisions:

a) Failure to submit, submitting incompletely, or submitting late reports as required by competent authorities or the representative body of the owner;

b) Failure to provide truthful and comprehensive evaluations of the effectiveness of state capital investment in the enterprise.

3. For Representative Bodies of Owners

a) Competent authorities shall consider and decide on disciplinary measures including reprimand, warning, removal from office, and removal from position in accordance with the Civil Servant Law and the Public Servant Law for individuals and organizations related to the performance of representative body of the owner duties if they violate any of the following:

- Failure to issue written performance targets within the prescribed timeframe under this Decree.

- Failure to fully implement the financial oversight contents of enterprises established or managed by themselves.

- Failure to promptly take corrective actions and handle financial management violations of enterprises or failure to report to higher-level authorities and financial management agencies regarding violations of laws and regulations on enterprise finance.

- Failure to submit financial oversight reports to the finance agency as required by timeframes or contents.

- Failure to implement government directives, Prime Minister's directives, and financial management agencies', inspection, audit agencies' recommendations on handling violations and strengthening financial oversight of enterprises.

- Providing untruthful reports on the results of financial oversight of enterprises established or managed by themselves.

b) If the representative body of the owner violates the provisions in Point a of this Clause, the Ministry of Finance shall report to the Prime Minister for handling in accordance with the law.

4. For State-Owned Enterprises: Annually publish on the website of the representative body of the owner and send to the Ministry of Finance before June 30 of the following year a list of enterprises that have violated the following:

a) Delaying the publicizing of information by more than 20 days compared to the provisions of this Decree;

b) Submitting financial oversight reports to the representative body of the owner or enterprise evaluation and classification reports late by more than 20 days compared to the provisions of this Decree.

Chapter VII
IMPLEMENTATION

Article 48. Effective Date

1. This Decree takes effect from December 1, 2015, and applies to fiscal years starting from 2016, replacing Decree No. 61/2013/NĐ-CP dated June 25, 2013, of the Government on the issuance of the Financial Oversight Regulations and Evaluation of Business Effectiveness and Publicizing Financial Information for Enterprises owned by the State and Enterprises with State Capital.

2. The publicizing of financial information for state-owned enterprises in 2015 shall be carried out in accordance with this Decree.

3. Within one year from the date this Decree takes effect, the representative body of the owner shall organize units to act as focal points for implementing financial oversight and evaluating business effectiveness, ensuring that these focal points have sufficient staff with expertise in corporate financial accounting and knowledge of the industry of the enterprise.

Article 49. Implementation Organization

1. The Ministry of Finance shall take the lead in guiding, organizing the implementation, and inspecting the implementation of this Decree together with relevant ministries and sectors.

2. The Ministry of Labor - Invalids and Social Affairs shall take the lead and coordinate with related agencies to supervise and evaluate the implementation of policies for workers in enterprises.

3. Parent companies of groups, corporations, and companies operating under the parent company-subcompany model shall base on this Decree to establish and implement regulations for supervising and assessing the effectiveness of subcompanies and associated companies.

4. Political-social organizations shall base on the financial supervision mechanism stipulated in this Decree to organize the supervision of enterprises under their management.

5. Ministers, Heads of state-owned enterprise representative bodies, Chairmen of the Board of Members or Chairmen of companies, General Directors, and Directors of enterprises shall be responsible for implementing this Decree./.