Decision No. 95/2000/QD-BTC on the issuance of regulations for managing collection and utilization of the fund to support restructuring and equitization of state-owned enterprises

 

ESTABLISHMENT AND SOURCES OF FORMATION OF THE FUND

Article 1:

The Fund for Supporting Restructuring and Privatization of State Enterprises aims to resolve employee benefits, create conditions, and provide financial support for state enterprises during the restructuring and ownership conversion process, specifically enterprises undergoing division, merger, privatization, transfer, lease, and sale as stipulated in Decree No.

44/1998/ND-CP dated June 29, 1998 and Decree No. 103/1999/ND-CP dated September 10, 1999 of the Government, and Decision No. 177/1999/QD-TTg dated August 30, 1999 of the Prime Minister.

Article 2:

The Fund for Supporting Restructuring and Privatization of State Enterprises (hereinafter referred to as the Restructuring Enterprise Fund) shall be established at three levels: central, local, and Total Company 91; specifically:

1. Central Restructuring Enterprise Fund:

The capital of this Fund shall be formed from: revenues from the restructuring and ownership conversion of state enterprises under the management of various ministries and sectors; financial contributions from organizations and individuals both domestically and internationally to the government and ministries for the purpose of restructuring and privatizing state enterprises; and annual central budget allocations (if any).

2. Local Restructuring Enterprise Fund:

The capital of this Fund shall be formed from revenues from the restructuring and ownership conversion of state enterprises under local management; financial contributions from organizations and individuals both domestically and internationally to localities for the purpose of restructuring and privatizing state enterprises; and annual local budget allocations (if any).

3. Restructuring Enterprise Fund at Total Company 91:

The capital of this Fund shall be formed from revenues from the restructuring and ownership conversion of state enterprises that are members of Total Company 91; financial contributions from organizations and individuals both domestically and internationally to Total Company 91 for the purpose of restructuring and privatizing state enterprises.

Article 3:

Specific sources of revenue entering the Restructuring Enterprise Fund at the three levels mentioned above include:

1. Actual proceeds from selling state shares in state enterprises during the privatization process (including proceeds from deferred payment of shares sold to employees).

2. Proceeds from sales, leasing, and management contracts of state enterprises (after deducting costs associated with the sale, lease, and management activities; payment of outstanding wages, social insurance debts, secured debts, and other expenses as prescribed by law).

3. Proceeds from the transfer of employee shares in enterprises after three years of implementing the transfer to employee collectives within the enterprise (collecting 30% of the share value at the time of transfer).

4. Proceeds from the recovery of difficult-to-collect debts, sale of unused assets, surplus assets, and liquidation assets excluded from the enterprise's value during the ownership conversion process (after deducting costs associated with asset transfers and debt recovery activities).

5. Proceeds from the sale of assets of dissolved state enterprises, after deducting costs associated with dissolution activities and payments of outstanding debts as stipulated in Circular No. 25/TC/TCDN dated May 15, 1997 of the Ministry of Finance guiding procedures, formalities, and principles for financial handling during the dissolution of state enterprises.

6. Dividends and income distributed from the state's equity in joint-stock companies and limited liability companies formed based on the conversion of state enterprises or contributed by these enterprises using state funds.

Article 4:

For the proceeds from the sale of state shares of enterprises that have completed privatization and are currently deposited in the account "proceeds from privatization of state enterprises," the National Treasury shall transfer the funds to the corresponding Restructuring Enterprise Fund account according to the level of enterprise management.

For Total Companies 90 (with Board of Directors) under the management of ministries and provincial People's Committees with member enterprises undergoing ownership conversion, depending on specific circumstances, the fund management body may consider allowing the retention of proceeds from the sale of state shares in member enterprises undergoing conversion to meet investment development needs according to approved usage plans.

Article 5:

Ministries, provincial People's Committees, and Total Companies 91 shall direct relevant functional departments:

1. Coordinate with the same-level enterprise finance agency to inspect expenses for ownership transfer at enterprises under management and determine the amount that the enterprise must pay into the Fund.

2. Urge subordinate enterprises that have implemented ownership transfer, the Asset Liquidation Board, and the Enterprise Dissolution Council (under Ministries, localities, or State-owned Corporations managing) to immediately deposit into the Fund the proceeds from selling, transferring, or shareholding enterprises, asset liquidation, and sale of assets of dissolved enterprises or recovery of receivables not included in the enterprise's value before ownership transfer (after deducting expenses according to regulations).

3. The representative of the State capital in joint-stock companies and limited liability companies shall be responsible for inspecting and urging timely distribution and transfer of income corresponding to the State capital contribution in these enterprises into the accounts of the enterprise restructuring Fund at all levels.

USE OF THE FUND

Article 6:

Prior to implementing enterprise restructuring or ownership transfer, the Board of Directors or General Director (for enterprises with a Board of Directors) and the Reform Committee at the enterprise shall coordinate with the enterprise trade union:

1. To compile and classify the current workforce of the enterprise implementing restructuring and ownership transfer according to the following categories:

a. Workers requiring training or retraining for new job placement.

b. Workers losing their jobs.

c. Workers voluntarily terminating their employment.

d. Workers whose contracts have expired.

2. To develop a policy resolution plan for these workers in accordance with the guidelines of the Ministry of Labor, Invalids, and Social Affairs. The policy resolution plan for workers of the enterprises must clearly specify:

a. The total cost to resolve policies for workers.

b. The enterprise's ability to self-settle from the reserve fund for unemployment benefits.

c. The shortfall requested to be supported by the assistance Fund.

3. The list and policy resolution plan for workers requiring retraining for new job placement, workers whose contracts have expired or who voluntarily terminated their employment, and workers unable to be placed in new jobs must be publicly announced within the enterprise and submitted together with the restructuring or ownership transfer proposal to the competent authority for review and the enterprise restructuring Fund management agency for monitoring and coordination.

Article 7:

The level of support from the Fund for training and retraining to resolve new job placements for workers continuing to work at the enterprise after restructuring and ownership transfer as stipulated in Article 6 is determined as follows:

1. For workers requiring training and retraining at state-owned enterprises after separation and merger: the Fund support level equals 50% of the budgeted training and retraining costs set by the State for one year; the remaining training costs are recorded and allocated to production and business expenses by the enterprise.

2. For workers requiring training and retraining at state-owned enterprises after shareholding, transfer, sale, or lease: support is provided based on actual incurred costs but not exceeding the budgeted training and retraining costs set by the State for one year; the remaining training costs are recorded and allocated to production and business expenses by the enterprise.

3. Training and retraining cost standards are adjusted appropriately during each period, currently applying the training cost standards already established and implemented since 1998 by the Ministry of Finance (attached table).

Article 8.

The level of support from the Fund to settle unemployment and termination benefits for workers losing or terminating their jobs (contract expiration or voluntary contract termination) at enterprises implementing restructuring and ownership transfer as stipulated in Article 6 is determined as follows:

Support level from the enterprise restructuring Fund

=

Unemployment benefit costs for workers

-

Remaining reserve fund for unemployment benefits of the enterprise

- Unemployment and termination benefit costs according to the provisions of the Labor Code, Decree No. 198/CP dated December 31, 1994, Decree No. 72/CP dated October 31, 1995 of the Government, and guiding documents of the Ministry of Labor, Invalids, and Social Affairs.

Article 9:

Based on the approved support plan and level from the Fund by the competent authority, the enterprise shall proceed with:

- Preparing documents to request the Fund management agency to transfer support funds.

- Receiving support funds from the Fund.

- Organizing payments to beneficiaries.

- Settling accounts with the enterprise restructuring Fund.

Article 10:

The application for Fund support includes:

- The approved support plan to resolve policies for workers in the enterprise (including the list of workers eligible for benefits and the benefit amounts).

- A copy of the enterprise's financial report at the time prior to restructuring and ownership transfer.

- Training contracts between the enterprise and the training institution (if the enterprise does not have its own training facilities).

Article 11.

Settlement of expenses:

For unemployment and termination benefits: no later than 30 days from receiving the support funding, the enterprise or organization receiving and utilizing the Fund support must report the settlement of the support funding to the Fund management agency.

For training and retraining support: no later than 30 days after the completion of the training program, the enterprise must report the settlement of the support funding to the Fund management agency.

3. In cases where the funding has not been fully utilized, the enterprise must report the reasons and proposed handling measures to the Fund management agency and the authority approving the support plan for comments.

4. No later than 30 days from receiving the enterprise's report on the settlement of support funding, the Fund management agency must conduct a review of the settlement report with the enterprise or organization receiving the funding.

Article 12:

Supplementing capital for state-owned enterprises according to approved plans:

1. Supplementing capital for state-owned enterprises requiring priority consolidation.

2. Supplement capital for enterprises with insufficient state capital to implement preferential pricing policies for employee share purchases as approved by competent authorities under Article 14 of Decree No. 44/1998/NĐ-CP dated June 29, 1998 of the Government.

3. Supplement capital for enterprises with insufficient state capital to ensure the controlling proportion of state capital.

For such enterprises, the level of support from the Fund shall be determined based on: The necessary proportion of state capital required to maintain in the enterprise's charter capital structure according to the ownership conversion plan approved by competent authorities and the actual state capital available at the enterprise.

4. Supplement capital for enterprises with a low proportion of state capital in their operating capital to facilitate the handling of overdue debts and restructuring of debt, improving production and business efficiency before ownership conversion.

For such enterprises, the level of support from the Fund shall be determined based on: The debt restructuring plan prior to ownership conversion of the enterprise approved by competent authorities. The total amount of overdue loans and the actual repayment capacity of the enterprise at the time of the decision to implement ownership conversion.

Article 13.

Invest capital in enterprises that have completed shareholding reform.

1. Form of support: Purchase shares issued by the aforementioned enterprises to implement investment projects.

2. Level and scope of support from the Fund:

For state-owned enterprises that need to maintain controlling shares: The Fund arranges for enterprises to provide capital support (purchase of shares) for enterprises according to the approved support plan, project progress, and the necessary proportion of state shares to maintain in the enterprise's capital structure.

Article 14:

Support payment of debts for state-owned enterprises implementing transfer, sale, or lease:

1. For enterprises transferring to a collective of workers: The Fund arranges for enterprises to support social insurance payments for those enterprises unable to pay at the time of the transfer decision due to previous losses in production and business activities.

2. For state-owned enterprises implementing sale or lease (then resell to the lessee): The Fund arranges for enterprises to only support payment of social insurance debts, bank loans, and other payable debts when there is no buyer willing to assume the debts and revenues from leasing and selling the enterprise, recovering receivables, and remaining cash capital at the time of sale are insufficient for payment. Such payment support can only be implemented based on the decision of the Minister of Finance.

Article 15:

Enterprises eligible for support and capital supplementation from the Fund under Articles 12, 13, and 14 above, when needed, must prepare a proposal requesting support from the Fund along with relevant documents (plans for shareholding reform, transfer, or lease of enterprises already approved or confirmed by competent authorities; decisions approving investment projects, share issuance plans, debt restructuring plans prior to ownership conversion already approved by competent authorities; enterprise financial reports...) submitted to the authority for approval of the support plan; simultaneously sent to the Fund management agency for comments and coordination in implementation.

When the support plan is approved, the enterprise submits it to the Fund management agency to implement the support.

Article 16:

Enterprises receiving support and capital supplementation from the Fund are responsible for managing and using the support funds in accordance with the approved plan by competent authorities and are subject to inspection and supervision by the Fund management agency and the enterprise finance department. If misuse of support funds from the Fund for purposes other than intended and violation of regulations are discovered, the Fund management agency and the enterprise finance department must report to the Minister of Finance or the Chairman of the People's Committee of provinces and centrally-run cities or the Board of Directors of the 91 State-Owned Corporations to make decisions on recovery and punishment according to current laws.

 

MANAGEMENT OF THE FUND

Article 17:

Management of the funds is carried out according to Article 4 of Decision No. 177/1999/QĐ-TTg dated August 30, 1999 of the Prime Minister, specifically:

1. The central enterprise restructuring fund is managed by the Minister of Finance and is used to provide financial support for state-owned enterprises under the management of central ministries and sectors during the restructuring and ownership conversion process; resolving employee benefits at these enterprises, the Ministry of Finance implements disbursements based on the use of proceeds from the ownership conversion of state-owned enterprises approved by sector-managing ministries and the Fund's budgetary balance.

2. The local enterprise restructuring fund is managed by the Chairman of the Provincial People's Committees directly under the Central Government. Approving plans and financial support expenditures for state-owned enterprises under local management during the restructuring and ownership conversion process; resolving employee benefits at these enterprises.

3. The enterprise restructuring fund of the 91 State-Owned Corporations is managed by the Boards of Directors of the 91 State-Owned Corporations, approving plans and financial support expenditures for member enterprises during the restructuring and ownership conversion process; resolving employee benefits at these enterprises.

Agencies assist the Minister of Finance, the Chairmen of the Provincial People's Committees directly under the Central Government, and the Boards of Directors of the 91 State-Owned Corporations in managing the Fund.

Article 18:

The Enterprise Financial Bureau assists the Minister of Finance in performing state management functions over the operation of the enterprise restructuring fund system; reviewing support plans for enterprises under ministries and sectors; organizing inspections and supervision of the use of the central enterprise restructuring fund; inspecting annual settlement reports of enterprise restructuring funds at all levels and directly managing the central enterprise restructuring fund.

1. The Department of Corporate Finance is the agency assisting the Minister of Finance in performing the state management function over the activities of the Enterprise Restructuring Fund system; reviewing support plans for enterprises under various Ministries and sectors; organizing inspections and supervision of the use of funds from the Enterprise Restructuring Fund at central enterprises; inspecting annual final reports of Enterprise Restructuring Funds at all levels and directly managing the Central Enterprise Restructuring Fund.

2. The Department of Finance - Price Control shall assist the People's Committee of the province or centrally governed city in appraising support plans for local enterprises; inspecting the use of funds from the Enterprise Reorganization Fund at local enterprises; and directly managing the Enterprise Reorganization Fund of the locality.

3. The Financial Board or the financial-accounting department of State-owned Enterprise Group 91 shall assist the Board of Directors in appraising support plans for member enterprises; coordinating with the Enterprise Financial Department to inspect the use of funds from the Enterprise Reorganization Fund at enterprises under the management of the Group; and directly managing the Enterprise Reorganization Fund of State-owned Enterprise Group 91.

Article 19:

Accounts of the Fund

1. The Enterprise Reorganization Fund shall be centralized in the National Treasury system, and the account name "funds received from state enterprise shareholding" shall be changed to "Enterprise Support and Reorganization Fund". Specifically:

a) The Central Enterprise Reorganization Fund shall be deposited into Account 945.06, managed by the Minister of Finance or their authorized representative.

b) The Local Enterprise Reorganization Fund shall be deposited into Account 945.07, managed by the Chairman of the Provincial People's Committee or their authorized representative.

c) The Enterprise Reorganization Fund of State-owned Enterprise Group 91 shall be deposited into Account 945.08, managed by the Chairman of the Group's Board of Directors or their authorized representative.

2. The opening, accounting, and use of the "Enterprise Support and Reorganization Fund" account shall follow the guidelines of the Central Treasury.

Article 20:

Plan for revenue and expenditure and regulation of the Enterprise Reorganization Fund.

1. Annually, along with the preparation of the budget plan, based on the plan for reorganization and ownership transfer of state enterprises, relevant Ministries, People's Committees of provinces and centrally governed cities, and State-owned Enterprise Group 91 shall direct the Enterprise Management Reform Board to coordinate with the directly managing agency of the Fund to prepare the revenue and expenditure plan of the Enterprise Reorganization Fund, report to the Ministry, People's Committees of provinces and centrally governed cities, and the Board of Directors of State-owned Enterprise Group 91 for approval, and submit to the Ministry of Finance (Enterprise Financial Department).

2. Based on the management and use situation of the Fund reported in the year, the reorganization and ownership transfer plan of state enterprises of Ministries, localities, and State-owned Enterprise Groups, and the revenue and expenditure plan of various levels of Enterprise Reorganization Funds, the Enterprise Financial Department of the Ministry of Finance shall review, consolidate, and report to the Minister of Finance the plan for using and regulating the Fund within the national scope.

Article 21:

Regulation of the Fund:

1. Based on the decision to reallocate issued by the Minister of Finance, within fifteen days from receiving the decision, the managing agency of the Fund subject to reallocation must complete the procedures to transfer funds from the Fund to the Central Enterprise Reorganization Fund account. If the managing agency of the Fund does not transfer the funds within fifteen days, the Treasury where the Fund has its account must automatically execute the reallocation of the Fund according to the Minister of Finance's decision on the Central Enterprise Reorganization Fund and notify the managing agency of the Fund subject to reallocation.

2. Based on the approved support plan and the progress report of the managing agency of the supported Enterprise Reorganization Fund, the Central Enterprise Reorganization Fund shall implement the transfer of support funds to the Local Enterprise Reorganization Fund and State-owned Enterprise Group 91 in accordance with the implementation progress and within the approved limit by the Minister of Finance. Periodically or urgently, the managing agency of the Central Enterprise Reorganization Fund shall conduct inspections on the management and use of the supported Enterprise Reorganization Fund.

Article 22:

The Enterprise Reorganization Fund shall only process payments of subsidies and support to workers and enterprises eligible for benefits when all necessary documentation and approved support plans are available.

Article 23:

Prior to disbursement and payment, the directly managing agency of the Enterprise Reorganization Fund at all levels must recheck the conditions and calculation of subsidy and support amounts for beneficiaries.

In case of errors or unclear points discovered, the directly managing agency of the Fund must immediately report to the approving agency for timely review and adjustment. If the approving agency fails to provide reasonable explanations, supplement documentation, or adjust the subsidy amount, the directly managing agency of the Fund must execute the payment according to the revised amount and report to the Minister for resolution.

Article 24:

The disbursement and payment of subsidies and support from the Fund to workers and enterprises undergoing reorganization and ownership transfer shall be carried out in the following priority sequence:

1. Supporting training and retraining costs for workers.

2. Supporting policy solutions for workers who have lost or left their jobs.

3. Supporting the settlement of wage arrears and social insurance debts.

4. Supporting the implementation of preferential pricing policies for workers in state enterprises undergoing shareholding reform that lack sufficient state capital.

5. Providing financial support to state enterprises requiring priority consolidation to facilitate ownership transfer.

6. Investing capital in state enterprises that have completed shareholding reform according to the approved plan.

Article 25:

Based on the Decision of the competent authority and the Payment Mandate of the directly managing agency of the Fund, the Treasury shall process the transfer of subsidy and support funds to enterprises and beneficiaries.

The Treasury shall not use the Fund for other purposes or make payments contrary to the provisions of this regulation.

Article 26:

The Enterprise Reorganization Fund at all levels shall be responsible for maintaining accounting records, fully recording all revenues and expenditures, and retaining supporting documents in accordance with the prescribed state regulations.

The fiscal year of the Enterprise Restructuring Fund begins on January 1 and ends on December 31. The first fiscal year shall be calculated from the date the Fund commences operations to the end of the year.

Article 27:

On a monthly and quarterly basis, the management agencies of the Enterprise Restructuring Fund at all levels (the Chairman of the People's Committee of the province or centrally governed city for the local Enterprise Restructuring Fund; the Board of Directors of the State-Owned Corporation for the Enterprise Restructuring Fund of the State-Owned Corporation 91) shall be responsible for reporting the management and utilization status of the Fund to the Minister of Finance. In cases where necessary, these management agencies shall also be responsible for promptly reporting and explaining issues related to the management and utilization of the Fund according to the requirements of the Minister of Finance.

Article 28:

At the end of the fiscal year, within forty-five days, the management agencies of the Enterprise Restructuring Fund at all levels must direct and urge the preparation and submission of the final report of the Fund to the Ministry of Finance (Enterprise Financial Department) for coordination in inspection, review, and presentation to the Minister of Finance for approval and consolidation of the report to the Government.

The final report of the Fund must fully and truthfully reflect the status of the Fund at the time of preparing the report; the income and expenditure situation and remaining issues in the management of the Fund such as: Unreceived or unspent amounts; expenditures exceeding or without payment sources... accompanied by confirmation of the Fund balance by the State Treasury where the Fund has an account.

Article 29:

The Enterprise Restructuring Fund is subject to regular and periodic inspection and supervision by the Ministry of Finance.

Based on reports on the management and utilization of the Fund from localities and State-Owned Corporations 91, the Enterprise Financial Department of the Ministry of Finance shall develop and implement inspection work on the management and utilization of the Fund according to the decision of the Minister of Finance.

Article 30:

Finalization of the Fund;

1. Annually, the management agencies of the Enterprise Restructuring Fund at all levels shall be responsible for finalizing the income and expenditure with the Ministry of Finance.

2. Within ninety days from the date of receipt of the final report of the Fund, the Enterprise Financial Department of the Ministry of Finance shall be responsible for assisting the Minister of Finance in implementing the inspection work on the final report of the Enterprise Restructuring Fund at all levels.

3. The results of the inspection of the final report of the Fund shall be reported to the Chairman of the People's Committee of the province or centrally governed city, the Board of Directors of State-Owned Corporation 91, and submitted to the Minister of Finance for consideration and approval.

HANDLING VIOLATIONS

Article 31.

Acts violating the provisions of this Regulation shall be subject to handling according to the current laws depending on the nature and degree of violation.