DECISION

ON THE GOVERNMENT’S ACTION PROGRAM FOR IMPLEMENTATION OF THE RESOLUTION OF THE IXTH PARTY CENTRAL COMMITTEE’S THIRD PLENUM

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to the Government’s Resolution No.12/2001/NQ-CP of November 2, 2001,

DECIDES:

Article 1.-To promulgate together with this Decision the Government’s action program for implementation of the Resolution of the IXth Party Central Committee’s third plenum.

Article 2.-This Decision takes effect as from the date of its signing.

Article 3.-The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People’s Committees of the provinces and centrally-run cities shall have to implement this Decision.

THE GOVERNMENT’S ACTION PROGRAM

FOR IMPLEMENTATION OF THE RESOLUTION OF THE IXTH PARTY CENTRAL COMMITTEE’S THIRD PLENUM
(promulgated together with the Prime Minister’s Decision No. 183/2001/QD-TTg of November 20, 2001)

I. OBJECTIVE AND REQUIREMENT OF THE PROGRAM

The objective of the action program (program for short) is to organize the successful implementation of the Party Central Committee’s (PCC) Resolution: continuing to restructure, renovate, develop and raise the efficiency of State enterprises so that they make important contributions to ensuring essential products and public-utility services for the society and meeting the needs of national defense and security, and act as the core force in boosting the economic growth and creating foundation for the cause of national industrialization and modernization along the socialist orientation.

The program’s requirement is, on the basis of fully grasping the Resolution’s contents, to fully concretize viewpoints, undertakings, orientations, policies and tasks already approved by the PCC into legal documents and to organize the efficient implementation thereof.

II. MAJOR CONTENTS OF THE PROGRAM

A. AMENDMENT AND SUPPLEMENTATION OF MECHANISMS AND POLICIES

1. To clarify and concretize the orientation for restructuring and development of State enterprises engaged in business and public-utility activities by promulgating concrete criteria for classification of State enterprises into such categories as enterprises with 100% State-owned capital; enterprises where the State holds dominant shares, special shares, small shares or no shares upon their equitization; State enterprises to be merged, dissolved or bankrupt; and State enterprises subject to assignment, sale, business contracting or lease.

2. To encourage people and enterprises of all economic sectors to turn out products and provide public-utility services necessary for the society and not banned by law.

To perform this task, it is necessary to issue a decree on public-utility enterprises in replacement of Decree No.56/CP on State public-utility enterprises in the spirit that State public-utility enterprises shall also conduct cost-accounting and the State shall adopt preferential treatment policies for public-utility products and services, irrespective of enterprise forms and economic sectors.

3. To amend and supplement mechanisms and policies, formulate a complete legal framework for the creation of an environment for State enterprises to act independently, deciding by themselves their own business according to the supply-demand relationship, raise the efficiency of and take self-responsibility for, their activities.

a/ To promulgate preferential treatment policies for branches, regions, products and services which need priority or development promotion, irrespective of economic sectors; to adopt mechanisms for the protection and encouragement of enterprises to compete and cooperate with one another on an equal footing for mutual development; to stipulate the control of operations and regulation of profits of enterprises operating in those fields where the State holds monopoly.

b/ To issue criteria on efficiency evaluation, supervision mechanism and penalties for each type of State enterprises: enterprises with 100% State-owned capital, enterprises where the State holds dominant shares and State corporations, so as to encourage the enterprise managers who work fruitfully and at the same time, handle those who work inefficiently due to subjective causes.

To renew the accounting, auditing, reporting and information regimes, publicize enterprises  business activities and financial situation.

c/ To issue the financial Regulation for State enterprises in replacement of the Regulations issued together with Decrees No.59/CP and No.27/1999/ND-CP so as within 5 years from 2001 to 2005 to basically create enough charter capital for enterprises, encourage them to renovate and modernize technologies.

d/ To experimentally establish a financial investment company in order to effect the State investment and management of capital at enterprises, instead of capital allocation.

e/ To amend and supplement the Regulation on Investment and Construction Management along the direction of increasing powers and responsibilities of enterprises in deciding the investment.

f/ To issue a decree on management of labor, wages and revenues in State enterprises in replacement of Decrees No.28/CP and 03/2001/ND-CP.

4. To elaborate a planning for training of a contingent of State enterprise managers. To issue criteria and regulations on training and recruitment examination of key managerial staff of State enterprises. To build up the enterprise director-training system.

5. To promulgate the regimes of preferential treatment and responsibility of enterprise managers along the direction of ensuring satisfactory material and spiritual incentives according to the levels of their contribution to enterprises production and business results.

a/ To amend and supplement Decision No.83/1998/QD-TTg on the wage and allowance regime for members of Managing Boards and Control Commissions of State corporations and large-scale independent enterprises.

b/ To promulgate mechanisms of responsibility as well as material and spiritual incentives for directors of State enterprises.

c/ To assign responsibility for appointment and management of personnel of State corporations.

6. To apply measures for a healthy financial situation of enterprises

a/ To adopt a debt- management and -handling mechanism for State enterprises.

b/ To set up a company for sale and purchase of debts and assets of State enterprises in order to handle their debts and redundant assets, thus creating conditions to make healthy the financial situation of enterprises.

7. To adopt policies towards laborers left redundant in the course of restructuring State enterprises. The redundant laborers shall be given conditions to get re-training or fully-paid leave for a certain period of time in order to look for new jobs; if being unable to find new jobs, they shall enjoy the job-loss regime. To amend and supplement a number of specific policies for redundant laborers who wish to retire before the prescribed retirement ages.

8. To renew and raise the efficiency of the operations of State corporations, build up a number of strong economic consortiums.

a/ To amend and supplement the model Statute on organization and operation of State corporations issued together with Decree No.39/CP.

b/ To issue a decree on shifting State corporations to operate after the parent company- affiliated company model.

c/ To work out a project on the establishment of economic consortiums.

9. To boost the equitization of State enterprises. The State shall adopt policies to reduce the difference in preferred shares for laborers among equitized enterprises and issue regulations so that laborers can hold their preferred shares for a given period of time. To study the use of part of enterprises’capital for the creation of laborers shares; the laborers shall enjoy interests from these shares but must not withdraw them from enterprises. Investors are allowed to buy shares issued for the first time by equitized enterprises where the State does not hold dominant shares strictly according to the provisions of the Enterprise Law and the Law on Domestic Investment Promotion.

a/ To issue a decree in replacement of Decree No.44/1998/ND-CP on equitization of State enterprises.

b/ To propose the National Assembly Standing Committee to amend Clause 2, Article 13 of the Anti-Corruption Ordinance, on the amount of shares to be purchased by leaders and operation managers of the equitized State enterprises.

10. To effect the assignment, sale, business contracting and lease of small-sized enterprises with State capital of under VND 5 billion.

To amend and supplement a number of articles of Decree No.103/1999/ND-CP on assignment, sale, business contracting and lease of State enterprises, which relate to the scope of application of the Decree and competence to decide the assignment, sale, business contracting or lease of State enterprises.

11. To invest in development and establishment of State enterprises, which are necessary and satisfy all conditions, in key branches and domains as well as important areas. To merge, dissolve or bankrupt those State enterprises which inefficiently operate but are unable to apply measures of equitization, assignment, sale, business contracting or lease of State enterprises.

To amend and supplement a number of articles of Decrees No.50/CP and No. 38/CP on the establishment, reorganization, dissolution and bankruptcy of State enterprises in the spirit that new State enterprises engaged in business activities shall be established mainly in form of joint-stock companies. To establish enterprises with 100% State-owned capital only in those branches and domains where the State holds monopoly or where other economic sectors refuse or are unable to participate in.

12. To amend and supplement a number of articles of the laws and ordinances related to the restructuring, renovation and development of State enterprises.

a/ To amend and supplement a number of articles of the Law on Enterprise Bankruptcy along the direction that the person deciding on the enterprise establishment shall have the right to propose the enterprise bankruptcy.

b/ To amend and supplement the State Enterprise Law in the spirit that State enterprises shall include enterprises with 100% State-owned capital and enterprises where the State holds dominant shares; to prescribe the establishment, operation organization, reorganization, dissolution and bankruptcy of State enterprises; to include in the to-be revised law new contents on the model of organization and operation of State corporations. To concretize the organizational model as well as functions, tasks and powers of State owners for State enterprises.

c/ To draft the Law on Accountancy.

d/ To draft the Ordinance on State Audit.

e/ To draft the Law on Competition Encouragement and Monopoly Restriction.

f/ To draft the Law on the Use of State Capital Invested in Business.

The above-mentioned contents shall be concretized into tasks mentioned in the appendix to the Government’s action program for implementation of the Resolution of the PCC’s third plenum, IX Congress (not printed herein).

B. ORGANIZATION OF IMPLEMENTATION

In the spirit of the Resolution of the IXth PCC’s third plenum, those matters which have been clearly explained and resolved, should be expeditiously and resolutely realized; those matters, which are still ambiguous should be experimented, realizing them while drawing experiences therefrom, taking appropriate, active and firm steps, redressing errors and deviations in time. The Government shall focus its direction on the following major contents:

1. Setting up an organization compatible with the performance of the task of advising on and coordinating the mechanism and policy elaboration and assisting the Government in directing the implementation of the Resolution of the PCC’s third plenum.

2. Organizing the thorough study of the Resolution throughout the country, disseminating the Government’s action program; gathering enterprises’ opinions before promulgating new mechanisms and policies related to them. Guiding branches and levels to work out their respective programs of action for implementation of the Resolution.

3. Directing and guiding localities, ministries, branches and State corporations to classify and restructure State enterprises. Paying special attention to directing and guiding the restructuring of State enterprises under the Ministry of Defense, the Ministry of Public Security and local administrations in mountainous, deep-lying and remote areas. Enhancing the direction, inspection and supervision of the implementation of schemes already approved by the Prime Minister.

4. Directing the prompt restructuring of State corporations which fail to meet the prescribed conditions.

5. Directing the expeditious and firm experimentation of the conversion of State corporations into those operating after the parent company-affiliated company model, for widespread application; establishing economic consortiums and Financial Investment Company.

6. Well directing, guiding and organizing the classification and restructuring of enterprises belonging to Party organizations, socio-political organizations.

7. Organizing the direction of pilot conversion of State enterprises, enterprises of Party organizations or socio-political organizations into one-member limited liability companies.

8. Accelerating the implementation of the program on equitization of State enterprises, considering this an important stage to create basic changes in the renovation and raising the efficiency of State enterprises.

9. Directing the efficient formulation of a healthy financial situation, handling outstanding debts and pre-venting the recurrence thereof; dealing with redundant laborers of State enterprises in a sound manner.

10. Organizing the direction of the experimentation of contents of the Resolution of the PCC’s third plenum pending the amendment and/or supplementation of laws and ordinances (the Law on Bankruptcy, the State Enterprise Law, the Labor Code, the Anti-Corruption Ordinance...).

The ministries, the ministerial-level agencies, the agencies attached to the Government and the People’s Committees of the provinces and centrally-run cities shall, on the basis of this action program of the Government, work out concrete programs of action for implementation of the Resolution of the PCC’s third plenum for their respective branches and localities.