Decision No. 90-TTg Regarding the Continued Reorganization of State-Owned Enterprises

Pursuant to …;

Regarding the continued reorganization of state-owned enterprises.

________________________

THE PRIME MINISTER.

Based on the reorganization and procedures for establishing and registering state-owned enterprises according to the regulations on the establishment and dissolution of state-owned enterprises issued with Decree No. 388-HĐBT dated November 20, 1991 of the Council of Ministers (now the Government), which have been implemented by ministries, localities, and state-owned enterprises, a significant step has now been completed;
To further enhance the operational efficiency of state-owned 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-owned enterprises that were not processed in the first round. Conduct inspections, reviews, analyses, and evaluations of the actual business operations of state-owned enterprises that were not established and registered in the first round. Apply corrective measures to consolidate state-owned enterprises so they meet the conditions for re-establishment. The procedures for re-establishment must be strictly reviewed to ensure compliance with the regulations issued with Decree No. 388/HĐBT dated November 20, 1991.

a) For state-owned enterprises currently operating profitably, prepare the necessary documentation and proceed with the procedures for establishing and registering according to current regulations.

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

c) For state-owned enterprises that do not meet the conditions for existence and development, the Minister (for state-owned enterprises under the management of a ministry) or the Chairman of the People's Committee of a province or city (for locally managed state-owned 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.

By September 30, 1994, all relevant agencies responsible for reviewing must conclude the receipt of applications, and 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-owned enterprises re-established in the first round to enhance business efficiency, and gradually reorganize state-owned enterprises operating in the same industry within the same area in a rational 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 for management 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-owned enterprises.

Article 4. Correct the establishment of new state-owned enterprises:

4.1 New Establishment.

a) Only establish new state-owned enterprises in key industries, areas generating significant revenue for the state budget, and sectors with market demand where non-state economic components lack the conditions to invest and develop. Prioritize capital for technological innovation and expansion of capacity for existing enterprises, especially state-owned enterprises requiring development.

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

4.2 From March 1994, all newly established state-owned enterprises must have a minimum statutory capital five times that 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-owned 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 at least 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 forms:

- Full accounting for the entire State Corporation, with affiliated units maintaining subsidiary 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 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 reorganizing existing State Corporations.

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

Type B: State Corporations that are not yet operating effectively but require the maintenance of their State Corporation form 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 intermediary administrative capacity, must be handled appropriately, such as:

- Converting to basic enterprises.

- Merging into another State Corporation or enterprise.

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

5.3 Assignment of responsibilities:

a) The State 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 accordingly.

b) The Ministry of Finance:

- Provide specific guidelines on the accounting system for State Corporations and their member enterprises, as well as the accounting system in non-profit public institutions.

- Guide the inventory process and the procedures for transferring capital in accordance 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 the procedures for establishing and dissolving state-owned enterprises (including State Corporations) in compliance with current regulations.

5. 4 Implementation timeline:

- Directives must be issued before March 31, 1994.

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

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

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

- State Corporations categorized 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 timelines above.

Article 6. Ministers, heads of ministerial-level agencies, government-affiliated agencies, and 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.