Directive 04/2002/CT-TTg on continuing the structuring, renewal, development and raising of the efficiency of state enterprises

DIRECTIVE

ON CONTINUING THE STRUCTURING, RENEWAL, DEVELOPMENT AND RAISING OF THE EFFICIENCY OF STATE ENTERPRISES

With a view to implementing the Resolution of the 3rd plenum of the Party Central Committee, IXth Congress, on continuing the structuring, renewal, development and raising of the efficiency of State enterprises; and the Government’s program of action for implementation of this Resolution, the Prime Minister hereby instructs:

1. The ministries, the ministerial-level agencies, the agencies attached to the Government, the People’s Committees of the provinces and centrally-run cities, and State corporations shall give their written comments on the drafts of: a decree replacing Decree No. 44/1998/ND-CP on transforming State enterprises into joint-stock companies; a decree on management and handling of debts owed by State enterprises; a decree on policies towards female laborers who become redundant as a result of the structuring and raising of the efficiency of State enterprises; a decision of the Prime Minister on criteria for and classification list of State enterprises and State corporations, and send them to the Steering Committee for Enterprise Renewal and Development before February 15, 2002.

The Ministry of Finance, the Ministry of Planning and Investment, and the Ministry of Labor, War Invalids and Social Affairs shall receive opinions contributed by the agencies and localities at the national conference on the implementation of the Resolution of the 3rd plenum of the Party Central Committee, IXth Congress, so as to finalize the aforesaid documents before submitting them to the Government and the Prime Minister for promulgation in February 2002. Particularly for the equitization of State enterprises, the Ministry of Finance should express the following contents:

- For the immediate future, the lease and assignment of land to enterprises for use shall still comply with current regulations. For land located at convenient positions capable of yielding big profits, rent rates shall be re-calculated appropriately. The inclusion of the value of land use right into the value of to be-equitized enterprises shall be only effected on an experimental basis.

- Regarding the equities sold at preferential prices to laborers working in the enterprises: Not only the administrative measures shall be applied but also the leadership of the Party organizations and the support of trade unions shall be also required to help poor laborers keep their equities and feel attached to their enterprises.

- To study the use of a portion of the State capital at enterprises on the principle of harmonious combination of the three interests of the State, the enterprise and the laborers, for forming stocks which shall not be divided to laborers who, however, shall enjoy dividends therefrom.

- It is necessary to clearly stipulate that the equitized enterprises in which the State still holds 51% of their stocks shall stay State enterprises; for those being members of State corporations, they shall still be State corporation members.

2. The Ministries of: Planning and Investment; Finance; Labor, War Invalids and Social Affairs; Construction, and the Government Commission for Organization and Personnel shall expeditiously prepare and submit to the Government and the Prime Minister the schemes related to the structuring, renewal, development and raising of the efficiency of State enterprises according to their assigned tasks and deadlines specified in the Prime Minister’s Decision No. 183/2001/QD-TTg of November 20, 2001 on the Government’s program of action for implementation of the Resolution of the 3rd plenum of the Party Central Committee of the XIth Congress.

The Government Commission for Organization and Personnel shall, within February 2002, guide the implementation of the Prime Minister’s Decision No. 180/2001/QD-TTg of November 16, 2001 on the posts of deputy general director, chief accountant and director of the Corporations member units having 100% of State-owned capital, ensuring the principle of Party leadership over the personnel work. In the first quarter of 2002, they shall report to the Prime Minister on the strengthening of the Managing Boards and the concrete nomination of their personnel as well as the general directors of State corporations.

3. The ministries, localities and State corporations shall:

- Make their leadership and attached units fully grasp the Resolution of the 3rd plenum of the Party Central Committee.

- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of the provinces and centrally-run cities, and the chairmen of the Managing Boards of Corporations 91 shall have to elaborate schemes on structuring, renewing and developing enterprises, report them to the concerned Party committees for adoption, then submit them to the Prime Minister for approval before April 30, 2002.

4. On the experimentation of new models of managerial organization:

The ministries, branches, localities and State corporations shall select a number of enterprises and direct their experimental transformation into one-member limited liability companies. They shall by the end of 2002 preliminarily review and evaluate the results thereof for application to all enterprises.

The Steering Committee for Enterprise Renewal and Development shall reach agreement with the ministries, localities and corporations before submitting to the Prime Minister for decision the necessary number of enterprises to operate after the parent company - affiliate company model on an experimental basis.

After the preliminary review of the experimental implementation, all State corporations which meet fully the conditions for being corporations shall be organized and operate after the parent company - affiliate company model in the spirit of the Resolution of the IXth Congress.

To establish on a trial basis business conglomerates dealing in petroleum, telecommunications, electricity and construction.

Upon termination of the experimentation of the model of Managing Board chairman and general director being one person, the Government Commission for Organization and Personnel, the ministers, and the presidents of the People’s Committees of the cities where exist State corporations shall strengthen the Managing Board apparatus and the general director post in line with the Resolution of the 3rd plenum of the Party Central Committee.

5. The ministries, branches, localities, and Corporations 91 shall consolidate immediately their respective Committees for Enterprise Renewal and Development which shall assist their leaderships in elaborating, guiding and supervising the implementation of the schemes on the structuring, renewal, development and raising of the efficiency of State enterprises in their units.

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of the provinces and centrally-run cities and the Managing Boards of State corporations shall have to implement this Directive.

The Steering Committee for Enterprise Renewal and Development shall have to urge, supervise and periodically report to the Prime Minister on the implementation of this Directive.