Decision No. 91/TTg On the pilot establishment of business groups

Pursuant to …;

ON TRIAL ESTABLISHMENT OF BUSINESS GROUPS

PRIME MINISTER

To create conditions to promote accumulation and concentration, enhance competitiveness while implementing the policy of gradually abolishing the system of principal ministries, administrative management levels, and distinctions between central and local enterprises, and strengthen the role of state management over enterprises of all economic sectors, improving the efficiency of the economy;
Pursuant to the Resolution of the National Assembly at its fourth session, ninth term;
Pursuant to the conclusion of the Government at its meeting on January 6, 1994,

Pursuant to …;

Article 1. Trial establishment of business groups (hereinafter referred to as groups) in some ministries managing economic-industrial sectors and Ho Chi Minh City. The selection of units for trial must be based on several large State-owned Joint Stock Companies and companies with relationships within industries and regions, regardless of whether they are managed by the central or local authorities, having significant positions in the national economy, ensuring necessary requirements for the domestic market, and having prospects for expanding business relations abroad. Each group should have its own trading name, maintaining reputable trading names familiar in both domestic and international markets.

Article 2. Main principles regarding organization and operation of groups:

1. A group is an economic entity established by the State comprising many member enterprises that are financially related and provide related services, and have relatively large scale;

2. The establishment of a group must ensure both limitation of monopoly and unrestricted competition. It can be organized into three types:

- National group;

- Regional group;

- Local group (in major cities).

3. A group must have seven member enterprises or more and have a minimum statutory capital of 1,000 billion VND;

4. In principle, a group may engage in multi-sector business operations but must necessarily have a main industry orientation. Each group may establish a financial company to raise funds, regulate funds to serve internal development needs or joint ventures with other economic entities;

5. The Management Council of the group consists of 7-9 members appointed by the Prime Minister, responsible for:

- Implementing the right to use and manage state resources, allocating and regulating common funds within the group;

- Deciding on the development strategy and business plans of the group;

- Deciding on the organizational structure of the group's management body and proposing to the Prime Minister the appointment or dismissal of the General Director, Deputy General Directors, and Chief Accountant of the group;

6. General Director:

- Representing the group as a legal entity in commercial relations with counterparties and before the law;

- Organizing the formulation and implementation of plans and overall activities of the group according to the decisions of the Management Council;

7. The Supervisory Board is established under the organizational regulations of the state inspection and supervision system to perform the task of supervising the activities of the Management Council, the group's management body, and member enterprises;

8. Tasks and powers of member enterprises:

- Implementing rights, responsibilities according to the charter of the group;

- Adhering to laws and policies as prescribed by the state and being subject to inspection by competent authorities.

Article 3. Groups operate under the law and are subject to state inspection and audit. Ministries managing economic-industrial sectors and other state management agencies, local state authorities are responsible for managing groups according to their functions as prescribed by law.

Article 4.

- The State Planning Commission has the responsibility to guide the trial of groups according to this decision; to develop the operational regulations of the Management Council, the group's management body, and the Supervisory Board;

- The Ministry of Finance has the responsibility to guide the use, management, raising, and regulation of funds and accounting systems of the group;

Article 5. Implementation schedule:

First quarter of 1994: Each ministry managing economic-industrial sectors and the People's Committee of Ho Chi Minh City shall each select one core State-owned Joint Stock Company to propose for trial, sending the list to the State Planning Commission for consolidation and submission to the Prime Minister for consideration and decision;

Second quarter of 1994:

- By mid-second quarter of 1994, the State Planning Commission and the Ministry of Finance shall complete the issuance of necessary guiding documents as stipulated in Article 4 of this Decision;

- By the end of the second quarter of 1994, the State Planning Commission shall complete the review of some pilot project proposals for groups and submit them to the Prime Minister for approval;

- From the third quarter of 1994 onwards until the end of 1995: Implementing the pilot projects of approved groups. At the end of 1995, conduct a summary of the pilot work.

Article 6. Ministers, heads of ministerial-level agencies equivalent to ministries, heads of government agencies, Chairmen of People's Committees of provinces and centrally governed cities are responsible for enforcing this Decision.

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