Resolution No. 15/NQ-CP dated March 6, 2014 of the Government on solutions for speeding up equitization and withdrawal of state capital from enterprises

THEGOVERNMENT

Resolution No.15/NQ-CP dated March 6, 2014 of the Government on solutions for speeding up equitization and withdrawal of state capital from enterprises

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the Party Central Committee’s Conclusion No. 50 KL/TW of October 29, 2012, on the Scheme on further reorganization, renewal and increase of efficiency of state enterprises;

At the proposal of the Minister of Finance,

RESOLVES:

Article1.To assign ministries, provincial-level People’s Committees, Members’ Councilsofstate economicgroups and corporations, and Members’Councils andpresidentsofstate enterprises:

1. To thoroughly grasp and properly disseminate the Party’s resolutions and conclusions on further reorganization, renewal and increase of efficiency of state enterprises (Resolutions of the 3^rdplenum and 9^thplenum of the IX^thParty Central Committee, and the Party Central Committee’s Conclusion No. 50 KL/TW of October 29, 2012) and the Prime Minister’s Decision No. 929/QD-TTg of July 17, 2012, approving the Scheme on restructuring of state enterprises with a focus on state economic groups and corporations in the 2011- 2015 period (below referred to as Decision No. 929/QD-TTg).

2.BasedontheapprovedSchemeonrestructuringofstate enterprisesinthe2011-2015period,todirectenterprisesundertheirmanagement:

a/Tomakeequitizationplansandschedules (includingthetimelimit foreachstage),andsubmitthemtoequitization-decidingauthoritiesfor approval;

b/Tomakeplansonandschedulesforwithdrawalofcapitalinvestedoutsidetheircoreproductionandbusinessfields(exceptspecialcasesdecidedbythePrimeMinister)andsubmitthemtocompetentauthoritiesforapprovalinthedirectionof:

-ConformingwiththeapprovedSchemeonrestructuringofstate enterprisesandthecriteriaandclassificationofstate enterprisesunderthe PrimeMinister’sDecision.Thewithdrawalofinvestmentcapitalmustbe completedbeforeDecember31,2015;

-Ensuringtheprinciplesofmarketprices,publicity,transparency and efficiency.Forinvestmentswhosebookvaluesareunlikelytobefully recovered,provisionfordevaluationoffinancialinvestmentmustbemadeundercurrent regulations,andplansonwithdrawalofinvestmentcapitalmustbemadeandsubmittedtocompetentauthoritiesfor approvalundertheGovernment’s ResolutionNo.26/NQ-CPofJuly9,2012.

Article2^.In case equitization and withdrawal of state capital can not be completed under approved plans, Members’ Councils of state economic groups or corporations, or Members’ Councils, presidents and managerial boards of state enterprises shallidentifyobjectiveandsubjectivereasons,determineresponsibilitiesofrelatedcollectivesandindividualsandreportthemtocompetentauthoritiesforconsiderationandsettlementunderregulations.Concurrently,ministersoflineministries,headsofministerial-levelagenciesandchairpersonsofprovincial-levelPeople’sCommitteesshalltakeresponsibilitybeforetheGovernmentandthePrimeMinisterfordelayedimplementationoftheapprovedplansunderregulations.

Article3.For withdrawal of investment capital outside core production and business fields under the approved Scheme on restructuring of state enterprises, in addition to complying with the Government’s Decree No. 71/2013/ND-CPofJuly11,2013,oninvestmentofstatecapitalinenterprisesandfinancialmanagementofwhollystate-ownedenterprises,stateeconomicgroups,corporationsandenterprisesmayimplementthefollowingsolutions:

1. To withdraw investment capital shares in other enterprises under par value or book value after deducting amounts of provision for loss of financial investments under regulations and based on the investment capital withdrawal plan considered and decided by the owner.

2. For transfer of investments in unlisted joint-stock companies, which are valued at VND 10 billion or higher according to the par value, to select and hire an intermediate financial institution (securities company) to conduct an auction or to conduct an auction themselves. In case of unsuccessful auction, to report such to the owners for consideration and decision on sale under agreement.

3. To make public offering of shares invested by state enterprises in public companies engaged in production and business activities, which:

a/ Report losses in the year preceding the year of registering public offering and have accumulative losses by the year of registering public offering.

b/ Report losses in the year preceding the year of registering public offering but have no accumulative losses by the year of registering public offering.

c/ Make profits in the year preceding the year of registering public offering and concurrently have accumulative losses by the year of registering public offering.

4. For withdrawal of capital of state groups and corporations from financial investment companies and commercial banks, to designate state commercial banks to acquire such capital or to let the State Bank of Vietnam act as the owner representative.

Ministries, sectors and localities shall review and transfer equitized enterprises to the State Capital Investment Corporation under the Government’s Decree No. 151/2013/ND-CP of November 1, 2013, on functions, tasks and operational mechanism of the State Capital Investment Corporation.

Article4.To assign the State Capital Investment Corporation to consider and acquire amounts invested outside core production and business fields of state groups and corporations and wholly state -owned enterprises in insurance and banking in case of unsuccessful capital withdrawal after taking the measures specified in this Resolution , and other fields within their assigned functions and tasks. The buying prices shall be basedonmarketprices,butmustnotexceedthebookvaluesminustheamountofprovisionsfordevaluationoffinancialinvestmentsfullymadeunderregulations.Stategroups,corporationsandenterprisesshallnotifyamountsinvestedintheabovefieldstotheStateCapitalInvestmentCorporationforconsiderationandacquisition.

At the time of transferring investments to the State Capital Investment Corporation, if provisions for devaluation of financial investments are not yet made or incompletely made, state groups, corporations and enterprises shall additionally make suchprovisions.

Article5.Based on the criteria and classification of state enterprises under the Prime Minister’s Decision and the Scheme on enterprise

restructuring, line ministries,provincial-levelPeople’sCommittees,the State BankofVietnam, andtheStateCapitalInvestmentCorporationshallmakeplansonwithdrawalofstatecapitalfrom enterprisesinwhichthey representtheowners,andsubmitthemtotheMinistryofFinanceandtheEnterprise RenewalandDevelopmentSteeringCommittee forsummarizationand reportingtothePrimeMinisterforconsiderationanddecisionaccordingtothe followingprinciples:

1.Basedonthecriteriaandclassificationofstateenterprisesandtheirroleindevelopmentofsectors,stategroups,corporationsandenterprisesshalldeterminetheholdingrateofstatecapitalwhichmustnotexceed65%ofthechartercapital.

2. BaoVietGroup andjoint-stock commercialbanksshallmaintainthe State’sholdingrateatleast65%ofthechartercapital(excepttheJoint-Stock CommercialBankFor IndustryAndTrade).

3.IncasetheirState’sholdingratehasbeenapprovedbycompetentauthoritiesunderDecisionNo.929/QD-TTg,stateeconomicgroups,corporationsandenterprisesshallcomplywiththeapproveddecision.After

2015,stateeconomicgroups,corporationsandenterprisesshallproposecompetentauthoritiestoadjusttheirstate’sholdingrateaccordingtoClauses 1and 2ofthisArticleandthecriteriaforclassifyingstateenterprisesunderthePrimeMinister’sDecision.

Article6.^.Organization of implementation

1.The Ministryof Financeshall:

a/SubmittothePrimeMinister adraftdecisionfor effectiveimplementationofthis Resolution.

b/Coordinatewithministries,sectors,provincial-levelPeople’s Committees,andstateeconomicgroups,corporations and enterprisesinguiding,monitoringandinspectingthe equitizationandwithdrawalofstate capital from enterprises, andpromptlyproposesettlementof arisingproblems.

2.Ministers,headsofministerial-levelagencies,chairpersonsofprovincial-levelPeople’sCommittees,andMembers’Councilsofstate economicgroups,corporations andenterprisesshall:

a/Focusondirectingtheimplementationofsolutionsforspeedinguptheequitizationandwithdrawalofstatecapitalfrom enterprisesunderthis Resolution.

b/QuarterlyreporttothePrimeMinisterontheimplementationofthe Schemeonrestructuringofstateeconomicgroupsandcorporations(focusingonequitizationandwithdrawalofstatecapitalfrom enterprises)undertheirmanagement,andconcurrentlysendittotheMinistryofFinanceforsummarizationandreportingtothe Prime Minister.

3.The Ministerof Planning and Investment,the MinisterofHomeAffairsandtheMinisterofLabor,War InvalidsandSocialAffairsshall assumetheprimeresponsibilityfor,andcoordinatewithlineministriesandtheMinistryofFinancein,performingthetasksundertheirmanagementasprescribedinthis Resolution.

4.TheEnterpriseRenewalandDevelopmentSteeringCommitteeshallassistthePrimeMinisterindirectingministries,sectorsandlocalities,andstateeconomicgroupsandcorporationstospeeduptheequitizationandwithdrawalofstatecapitalto2015;andquarterlyreportontheimplementationtothePrimeMinister.-

For the Government

The Prime Minister

Nguyen Tan Dung