DECISION

ON ORGANIZATION AND OPERATION OF THE SUPPORT FUND FOR REORGANIZATION AND EQUITIZATION OF STATE ENTERPRISES

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of December 25, 2001;
Pursuant to the Governments Decree No. 64/2002/ND-CP of June 19, 2002 on transformation of State enterprises into joint-stock companies; Decree No. 103/1999/ND-CP of September 10, 1999 and Decree No. 49/2002/ND-CP of April 24, 2002 on assignment, sale, business contracting or leasing of State enterprises;
Pursuant to the Governments Decree No. 41/2002/ND-CP of April 11, 2002 on policies towards laborers redundant due to the reorganization of State enterprises;
At the proposal of the Finance Minister,

DECIDES:

Article 1.- To set up the support fund for reorganization and equitization of State enterprises at the central level, in the provinces and centrally-run cities and corporations established under the Prime Ministers Decision No. 90/TTg and Decision No. 91/TTg of March 7, 1994 (hereinafter referred collectively to as State corporations) for settling entitlements for laborers and providing financial supports for State enterprises in the course of reorganization and ownership transformation (hereinafter called the Enterprise Reorganization Fund for short).

Article 2.- The Enterprise Reorganization Fund shall be used to:

1. Support enterprises in paying allowances under the provisions of the Labor Code to their laborers who terminate or lose their jobs at the time of transformation, who are, however, not subject to the Governments Decree No. 41/2002/ND-CP of April 11, 2002 on policies towards laborers redundant due to the reorganization of State enterprises.

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In cases where laborers in State enterprises, which have already been transformed under the Governments Decree No. 44/1998/ND-CP of June 29, 1998 and Decree No. 103/1999/ND-CP of September 10, 1999, lose or terminate their jobs before the effective date of the Governments Decree No. 64/2002/ND-CP of June 19, 2002, the concerned enterprises shall be provided with supports by the Enterprise Reorganization Fund to pay the said allowances to laborers for the periods they work in the State sector without enjoying any allowances provided for by the Labor Code.

3. Support enterprises in retraining redundant laborers at the time of transformation for arrangement of new jobs in joint-stock companies.

4. Supplement capital to equitized enterprises to ensure the State capitals ratio in the charter capital structure of joint-stock companies.

5. Provide capital support for State enterprises which meet with difficulties in payment capabilities for handling overdue debts and/or social insurance debts before carrying out the transformation.

6. Support the repayment of debts of State enterprises when the proceeds from the sale of enterprises by the State are not enough for such repayment.

7. Provide capital support for State enterprises which invest in renewing technologies, raising competitiveness and developing enterprises.

Article 3.- Capital sources for formulation of the Fund

On principle, they include: capital sources coming from the reorganization, equitization, sale, business contracting and/or leasing of State enterprises, which are collected from State enterprises in localities and remitted into the local enterprise reorganization funds, those collected from State enterprises under the State corporations and remitted into the enterprise reorganization funds at such State corporations; those collected from State enterprises under ministries and branches as well as the central budgets allocations under annual plans remitted into the central enterprise reorganization fund; local budgets allocations remitted into the local enterprise reorganization funds.

Specific sources for formulation of the Fund include:

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a/ Proceeds from activities of reorganizing and transforming the ownership over the whole enterprises or affiliated units of independent State enterprises under the management by the provinces and centrally-run cities shall be remitted into the local enterprise reorganization funds.

b/ Proceeds from activities of reorganizing and transforming the ownership over the whole member enterprises or affiliated units of member enterprises of State corporations shall be remitted into the corporations enterprise reorganization funds.

c/ Proceeds from activities of reorganizing and transforming the ownership over the whole enterprises or affiliated units of independent State enterprises under the ministries, ministerial-level agencies and agencies attached to the Government shall be remitted into the central enterprise reorganization fund.

Particularly, profit proportions divided to and State capital amounts recovered at joint-stock companies and limited liability companies with capital contributed by the State, shall be handled according to the provisions in Articles 12 and 14 of the Governments Decree No. 73/2000/ND-CP of December 6, 2000 promulgating the Regulation on management of State capital proportions at other enterprises.

2. Financial aids from organizations and individuals for the reorganization and ownership transformation of State enterprises.

3. Allocations from the State budget under annual plans (if any).

Article 4.- Organization and management of the Enterprise Reorganization Fund

1. The Enterprise Reorganization Fund is organized at the following levels:

a/ The Enterprise Reorganization Fund at the central level is concentrated at an account opened at the State Treasury and managed by the Finance Minister to support activities of reorganizing and transforming ownership over enterprises under the ministries, ministerial-level agencies and agencies attached to the Government according to the provisions in Article 2 of this Decision.

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c/ The enterprise reorganization fund at a State corporation is concentrated at a separate account of the corporation and managed by its managing board to support activities of reorganizing and transforming ownership over enterprises under such corporation according to the provisions in Article 2 of this Decision and the corporation shall have to make settlement thereof with the Finance Ministry according to the current regulations.

2. The enterprise reorganization funds of all levels shall only be disbursed strictly according to provisions in Article 2 of this Decision. All revenue and expenditure activities must be separately accounted with adequate lawful vouchers.

Article 5.- Responsibilities of the ministries, provincial/municipal People�s Committees and managing boards of State corporations:

1. To inspect and urge State enterprises under the management of their respective ministries, localities and corporations, which are undergoing ownership transformation, to fully remit the State�s revenues from reorganization and ownership transformation activities into the enterprise reorganization funds of the such level.

2. To examine and approve plans on providing supports for enterprises under their respective management according to the regime prescribed by the State. Among them, decisions approving plans on providing supports for enterprises under the ministries and central branches must be made after consulting and reaching agreement with the central fund-managing agency.

3. To direct persons, who personally manage the State�s capital proportions at enterprises, to urge enterprises to fully and promptly remit the remissible amounts into the enterprise reorganization funds, supervise enterprises in the observance of the regime of reporting, settling and using support funds strictly according to the prescribed regimes.

Article 6.- Responsibilities of enterprises undergoing reorganization and ownership transformation:

1. To fully and promptly remit the remissible amounts into the enterprise reorganization funds of the same level;

2. To work out support plans, then submit them to competent authorities for approval;

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Article 7.- Responsibilities of the Finance Ministry

1. To perform the State management over all operations of the Enterprise Reorganization Fund throughout the country.

2. To promulgate the Regulation on management, collection, remittance and use of capital sources of the Enterprise Reorganization Fund after obtaining the Prime Ministers approval.

3. To direct and organize the inspection and supervision of the use of capital sources of the Enterprise Reorganization Funds system throughout the country.

4. The Finance Minister may regulate capital sources among the enterprise reorganization funds in localities or at State corporations when deeming it necessary.

5. To ensure that the Enterprise Reorganization Fund is used for the right purposes and with efficiency in the enterprise ownership transformation.

6. To direct the summing up and appraisal of the management and use of the Enterprise Reorganization Fund throughout the country; to organize the settlement of revenues and expenditures of enterprise reorganization funds at the State corporations.

Article 8.- The Ministry of Labor, War Invalids and Social Affairs shall have to coordinate with the Finance Ministry in guiding the use of the Fund for the training and re-training of laborers to create new jobs and provide allowances for laborers, who voluntarily terminate their labor contracts or lose jobs upon the ownership transformation of State enterprises, but are not subject to the Governments Decree No. 41/2002/ND-CP of April 11, 2002.

Article 9.- This Decision replaces Decision No. 177/1999/QD-TTg of August 30, 1999 and takes effect as from July 4, 2002 (the effective date of the Governments Decree No. 64/2002/ND-CP of June 19, 2002 on the transformation of State enterprises into joint-stock companies).

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FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER




Nguyen Tan Dung