Decision No. 90/TTg On continuing to reorganize state-owned enterprises

 Pursuant to …;

ON THE CONTINUATION OF THE REORGANIZATION OF STATE ENTERPRISES
PRIME MINISTER

Based on the reorganization and procedures for establishing and registering state enterprises according to the charter on the establishment and dissolution of state enterprises issued together with Decree No. 388-HĐBT dated November 20, 1991 of the Council of Ministers (now the Government), which has been implemented by ministries, localities, and state enterprises, a significant step has now been completed;
In order to further enhance the operational efficiency of state enterprises and strengthen state management;
Pursuant to the conclusions of the Government at its meeting on January 6, 1994,

DECISION:

Article 1. Continue to complete the procedures for establishing and registering state enterprises that have not yet been processed in the first phase. Conduct inspections, reviews, analyses, and evaluations of the current business operations of state enterprises that were not established and registered in the first phase, apply corrective measures to consolidate these enterprises so they meet the conditions for re-establishment. The procedures for re-establishment must be carefully reviewed to comply with the Charter issued together with Decree No. 388/HĐBT dated November 20, 1991.

a) For state enterprises currently operating profitably, prepare the necessary documentation and proceed with the procedures for establishment and registration according to current regulations.

b) For state enterprises currently operating without profit or at a loss but holding important positions in the national economy, both in the short and long term, it is necessary to maintain their status as state enterprises. They must submit plans for reorganization along with detailed proposals regarding specific solutions concerning capital, technology, and organizational management to gradually improve business efficiency. On this basis, consider and approve the re-establishment of truly necessary enterprises.

c) For state enterprises that lack the conditions for existence and development, the Minister (for state enterprises under the direct management of a Ministry) or the Chairman of the People's Committee of the province or city (for locally managed state enterprises) shall organize reviews and issue appropriate decisions as stipulated in Decision No. 315/HĐBT dated September 1, 1990 and No. 330/HĐBT dated October 23, 1991.

d) By September 30, 1994, all responsible agencies must conclude the receipt of applications. By December 31, 1994, all procedures for deciding on establishment and registration must be completed.

Article 2. Evaluate the results of operations, correct organizational management, continue to reorganize state enterprises that have been re-established in the first phase to enhance business efficiency and gradually reorganize state enterprises operating in the same industry on the same territory in a reasonable manner, regardless of whether they are centrally or locally managed.

Article 3. Units with economic, cultural, social, scientific, technical, public service, purely defense and security functions that operate without profit objectives should still be considered and organized, but do not need to go through the procedures for establishment and registration like other enterprises. The Ministry of Finance will provide guidance on accounting and financial systems for public service units, ensuring these organizations are not confused with state enterprises.

Article 4. Correct the establishment of new state enterprises:

4.1 New Establishment.

a) Only establish new state enterprises in key industries, sectors generating substantial revenue for the state budget, and areas with market demand where non-state economic components cannot invest and develop. Prioritize funding for technological innovation and expansion of capacity for existing enterprises, especially state enterprises requiring development.

b) Do not establish additional state enterprises in the same industry and location (including non-state economic components) where there are already many capable enterprises.

4.2 From March 1994, all newly established state enterprises must have a minimum statutory capital equal to five times the statutory capital of a limited liability company in the same industry according to Decree No. 222/HĐBT dated July 23, 1991, which details certain provisions of the Law on Enterprises.

Article 5. Reorganize, establish, and register Joint Enterprises and State Corporations (hereinafter referred to as State Corporations).

5.1 State Corporations may be considered for establishment and registration when they meet the following conditions:

a) A State Corporation is a state enterprise with at least five affiliated units related to each other in terms of technology, finance, investment development programs, supply, transportation, consumption, information, and training services.

b) The entire State Corporation must have a statutory capital of over 500 billion VND, and for some State Corporations in special industries, the statutory capital can be lower but not less than 100 billion VND.

c) The State Corporation implements economic accounting in one of the following two forms:

- Full accounting for the entire State Corporation, with affiliated units reporting accounts.

- Comprehensive accounting with分级翻译任务，以下是第1部分的翻译结果：

d) There must be economic and technical justifications for the establishment of the State Corporation and a business plan for the State Corporation, along with documents appraising these justifications.

e) There must be a staffing plan for leadership and management personnel meeting the required standards and having the capability to manage the entire operation of the State Corporation.

g) There is a charter on organization and operation that has been approved by the supervising authority and adhered to in practice.

5.2 Classification for reorganization of existing State Corporations.

Type A: State Corporations that are genuinely operating effectively and meet the conditions specified in point 5.1 above should complete the procedures for establishment and registration.

Type B: State Corporations that are not yet operating effectively but require maintaining their status as State Corporations must be corrected and consolidated to meet the conditions specified in point 5.1 before proceeding as Type A.

Type C: State Corporations outside Types A and B, which operate in an administrative intermediary nature, must be handled appropriately, such as:

- Converting to basic enterprises.

- Merging into State Corporations or other enterprises.

- Dissolving according to Decisions No. 315/HĐBT dated September 1, 1990 and No. 330/HĐBT dated October 23, 1991.

5.3 Assignment of implementation:

a) National Planning Commission:

- Draft the Government Decree to issue a model charter for State Corporations to replace Decree No. 27/HĐBT dated March 22, 1989.

- Serve as the lead in guiding the procedures for reorganizing state-owned enterprises pursuant to this Decision.

- Take the lead in reviewing applications for establishing state-owned enterprises and submit them to the Prime Minister for decision in accordance with current regulations.

b) The Ministry of Finance:

- Provide specific guidance on the accounting system of State Corporations and their member enterprises, and the accounting system in non-profit public service units.

- Guide the inventory process and procedures for transferring capital in compliance with current regulations.

c) Ministries, ministerial-level agencies, government-affiliated agencies, People's Committees of provinces and centrally-administered cities:

Carry out classification, reorganization, and procedures for establishing and dissolving state-owned enterprises (including State Corporations) in accordance with current regulations.

5.4 Implementation schedule:

- Directives must be issued before March 31, 1994.

- The list of classifications for State Corporations must be completed and reported to the Prime Minister before April 30, 1994.

- State Corporations classified as Type A: Must complete the re-establishment process before September 30, 1994.

- State Corporations classified as Type B: Must complete the re-establishment process before December 31, 1994.

- State Corporations classified as Type C: Must resolve all issues before September 30, 1995.

- Until the re-establishment or dissolution procedures are completed, State Corporations shall continue operations until the end of the specified schedule above.

Article 6. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally-administered cities are responsible for implementing this Decision.

Article 7. This Decision takes effect from the date of signing.