DECISION

PROMULGATING THE GOVERNMENT'S PROGRAM OF ACTION FOR STEPPING UP THE REORGANIZATION, RENEWAL, DEVELOPMENT, AND RAISING THE EFFICIENCY OF STATE ENTERPRISES IN THE 2006-2010 PERIOD

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the Government's program of action promulgated together with the Government's Resolution No. 25/2006/NQ-CP of October 9, 2006, on the implementation of the Xth Party Congress' Resolution and the XIth National Assembly's Resolution on the 2006-2010 five-year socio-economic development plan;
At the proposal of the Minister-Director of the Government Office,

DECIDES:

Article 1.- To promulgate together with this Decision the Government's program of action for stepping up the reorganization, renewal, development, and raising the efficiency of state enterprises in the 2006-2010 period.

Article 2.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 3.- Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal People's Committees, and managing boards of economic groups and state corporations shall implement this Decision.

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PRIME MINISTER




Nguyen Tan Dung

PROGRAM

OF ACTION FOR STEPPING UP THE REORGANIZATION, RENEWAL, DEVELOPMENT, AND RAISING THE EFFICIENCY OF STATE ENTERPRISES IN THE 2006-2010 PERIOD

(Promulgated together with the Prime Minister's Decision No. 263/2006/QD-TTg of November 15, 2006)

The Xth National Congress of the Communist Party of Vietnam promulgated a resolution approving the report on the 2006-2010 five-year socio-economic development orientations and tasks, putting forward an important solution, among others, to further stepping up the reorganization, renewal, and raising the efficiency and competitiveness of state enterprises. On June 29, 2006, the XIth National Assembly promulgated at its 9th session Resolution No. 56/2006/NQ-QH11 approving the report on the 2006-2010 five-year socio-economic development plan. In furtherance of the above Resolutions of the Party and the National Assembly, the Government promulgated its program of action on implementation of the Xth Party Congress' Resolution and the XIth National Assembly's Resolution on the 2006-2010 five-year socio-economic development plan.

In order to institutionalize the Party's viewpoints, line and orientation mentioned in the Resolution of the Xth Party Congress and concretize the Government's program of action on implementation of the Xth Party Congress' Resolution and the XIth National Assembly's Resolution on the 2006-2010 five-year socio-economic development plan regarding the reorganization, renewal, development, and raising the efficiency of state enterprises, the Government promulgates its program of action for stepping up the reorganization, renewal, development, and raising the efficiency of state enterprises in the 2006-2010 period with the following contents:

Part I

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1. To continue reviewing and classifying economic groups and state corporations and companies in order to reorganize and renew them in the spirit of the Resolution of the Xth Party Congress and in response to the requirements of the 2006-2010 five-year socio-economic development. To further urge, inspect, supervise, and raise responsibilities of, agencies and individuals responsible for the implementation of the approved plan and roadmap of reorganization and equitization of state enterprises and for settlement of problems arising in the course of implementation.

2. To further renew the management mechanism and operation, and increase investment in the development, of economic groups and state corporations and companies in which, in the immediate future, the State will hold 100% of their charter capital so that they can serve as a macroeconomic regulation instrument in the market economy and efficiently and competitively operate in the context of global economic integration; to closely supervise the operation of state enterprises and representatives of state capital portions in other enterprises, realize publicity and transparency in the organization and operation of state enterprises in order to manage and use state capital efficiently for business activities, prevent and combat waste, corruption and negative practices.

To complete by 2009 the conversion of all companies in which the State holds 100% of their charter capital into limited liability companies with one or more members or joint-stock companies with owners being the State. To further support state enterprises by providing their managers with business administration knowledge training and retraining.

To continue studying and piloting new organizational and managerial models, e.g., management boards of state corporations or companies hiring executive general directors, even foreigners, under contracts; converting scientific and technological research non-business units of economic groups or state corporations into scientific-technological enterprises.

3. To speed up the equitization of state companies and increase the number of those to be equitized. To concentrate on directing the equitization of economic groups, state corporations and companies of large scale, state-run commercial banks and state financial companies; to attract capital for enterprises, renew administration and raise their production and business efficiency and competitiveness. Equitization combined with listing and trading in the securities market must create high-quality commodities for this market. To expand pilot equitization of tree gardens associated with processing establishments under state-run agricultural and forestry farms. To experiment for wide application the equitization of state companies performing public-utility tasks and economic non-business units with revenues.

4. To reorganize state-run agricultural and forestry farms together with reviewing the actual land use and classification of land allotted to agricultural and forestry farms and management boards of protective forests and special-use forests so as to ensure the efficient use of the land fund in accordance with the land law.

5. To perfect the organization model and operation mechanism of economic groups, state corporations and companies operating after the parent-subsidiary company model with multi-ownership subsidiary companies in order to bring into play the economic efficiency of business consortiums as well as the autonomy and accountability of companies in the consortiums. To equitize economic groups, corporations and parent companies according to appropriate roadmaps.

6. To expeditiously consolidate the organization, operation, management and administration of the State Capital Investment and Trading Corporation so that it can properly perform the function of state capital management and investment in accordance with the State Enterprise Law and the Prime Minister's Decision No. 151/2006/QD-TTg of June 20, 2005, establishing the State Capital Investment and Trading Corporation.

7. To actively renew the organization and management and raise the administration capability of state enterprises to be more and more adaptable to the market mechanism and the context of global economic integration.

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9. In the immediate future, to promulgate or revise the following legal documents on reorganization, renewal and development of state enterprises:

a/ Criteria for classification and reorganization and lists of economic groups and state corporations and companies in the spirit of the Resolution of the Xth Party Congress;

b/ List of domains in which the State holds monopoly, and a roadmap for ending monopoly in several domains;

c/ Revision of the Regulation on management of state companies' finance and state capital invested in other enterprises;

d/ Regulations on the mechanism for management of finance, salaries and incomes of one-member limited liability companies with owners being the State;

e/ Regulations on supervision mechanisms and regulation policies applicable to enterprises whose business monopoly cannot be abolished yet;

f/ Regulations on supervision of state corporations and companies operating at a loss or inefficiently;

g/ Revision of regulations on equitization of state companies;

h/ Guidance on the enforcement of the Securities Law;

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j/ Revision of regulations on organization and management of state corporations and the conversion of state corporations and independent state companies to operate after the parent-subsidiary company model;

k/ Revision of policies towards laborers who are left redundant due to the reorganization of state enterprises, for application from 2007.

The specific tasks of ministries, ministerial-level agencies, provincial/municipal People's Committees, economic groups and state corporations are defined in the Appendix to this Decision.

Part II

ORGANIZATION OF IMPLEMENTATION

1. Based on the major tasks and contents of this program of action and their assigned functions and tasks, ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal People's Committees, and management boards of economic groups and state corporations shall draw up plans and roadmaps for reorganizing and equitizing economic groups, state corporations or companies under their management and submit them to the Prime Minister for approval; shall review and revise mechanisms and policies on reorganization and renewal of state enterprises as assigned by the Prime Minister.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal People's Committees, and management boards of economic groups and state corporations shall direct, inspect and urge the reorganization and equitization of economic groups and state corporations or companies according to the Prime Minister-approved plan and roadmap and report thereon to the Prime Minister.

3. The Steering Committee for Enterprise Renewal and Development shall monitor and urge the implementation of this program and periodically report the implementation results to the Prime Minister.

APPENDIX

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(To the Prime Minister's Decision No. 263/2006/QD-TTg of November 15, 2006)

No.

Tasks

Managing agencies

Coordinating agencies

Time for submission to the Prime Minister

Type of document

I

To be-promulgated mechanisms and policies

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1

A decree replacing the Government's Decree No. 187/2004/ND-CP on the conversion of state companies into joint-stock companies

Ministry of Finance (MoF)

Steering Committee for Enterprise Renewal and Development (SCERD)

November 2006

Government decree

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A decree guiding the implementation of the Securities Law

MoF

State Bank of Vietnam (SBV), SCERD

November 2006

Government decree

3

Criteria for classification and lists of economic groups and state corporations or companies; domains, branches and trades in which the State holds 100% of charter capital or dominant shares or contributed capital

Ministry of Planning and Investment (MPI)

SCERD

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Prime Minister's decision

4

A decree on policies towards laborers who are left redundant due to reorganization of state enterprises

Ministry of Labor, War Invalids and Social Affairs (MoLISA)

MoF

December 2006

Government decree

5

Amendments and supplements to Decree No. 153/2004/ND-CP of August 9, 2004, on the organization and management of state corporations and the conversion of state corporations or independent state companies to operate after the parent-subsidiary company model

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SCERD and concerned ministries

December 2006

Government decree

6

Mechanisms for management of salaries and incomes in one-member limited liability companies with owners being the State

MoLISA

MoF and concerned ministries

December 2006

Government decree

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Regulations on the grading of salaries for managers of economic groups

MoLISA

MoF

December 2006

Prime Minister's decision

8

A decree on the financial mechanism applicable to one-member limited liability companies with owners being the State

MoF

Concerned ministries and branches

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Government decree

9

A list of domains in which the State holds monopoly and a roadmap for ending monopoly in several domains

Ministry of Trade (MoT)

MPI, SCERD

January 2007

Prime Minister's decision

10

Amendments to Decree No. 80/2005/ND-CP of June 22, 2005, on the assignment, sale, business contracting and lease of state companies

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MoF, SCERD

March 2007

Government decree

11

Amendments and supplements to Decree No. 199/2004/ND-CP of December 3, 2004, promulgating the Regulation on management of state companies' finance and state capital invested in other enterprises

MoF

Concerned ministries and branches

First quarter of 2007

Government decree

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Regulations on supervision mechanisms and regulation policies applicable to enterprises whose business monopoly cannot be abolished yet

MoF

MoT, SCERD

First quarter of 2007

Prime Minister's decision

13

Regulations on the supervision of state corporations or companies operating at a loss or inefficiently

MoF

SCERD

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Prime Minister's decision

14

A regulation on management, organization and operation of economic groups and parent-subsidiary consortiums

MPI

MoF, SCERD and concerned ministries

May 2007

Prime Minister's decision

II

Organization of implementation

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1

Formulating a scheme on the reorganization and renewal of state enterprises for submission to the Prime Minister for approval

Ministries, provincial/municipal People's Committees, economic groups, state corporations

SCERD

First quarter of 2007

Scheme

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Disseminating and propagating the Party's resolutions and the State's mechanisms and policies on reorganization, renewal, development and raising the efficiency of state enterprises

Ministries, provincial/municipal People's Committees, economic groups, state corporations

Regularly

3

Directing the implementation of the Prime Minister-approved schemes on the reorganization and renewal of state enterprises

Ministries, provincial/municipal People's Committees, economic groups, state corporations

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III

Reviewing, and reporting on, the application of a number of forms of reorganization and renewal of state enterprises

1

Reporting on the conversion of state companies into joint-stock companies under Decree No. 187/2004/ND-CP of November 16, 2004, and the equitization of state corporations and parent companies

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SCERD

December 2006

2

Preliminarily reviewing the implementation of the Government's Decree No. 170/2004/ND-CP of September 22, 2004, and Decree No. 200/2004/ND-CP of December 3, 2004, on the reorganization and renewal of state-run agricultural and forestry farms

Ministry of Agriculture and Rural Development (MARD)

SCERD

December 2007

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Preliminarily reviewing the conversion of state companies into one-member limited liability companies

MPI

MoF, SCERD

January 2007

4

Preliminarily reviewing the conversion of state corporations or independent state companies to operate after the parent-subsidiary company model, and the management thereof

MPI

SCERD

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5

Reporting on the equitization of a number of non-business units with revenues

SCERD

MoF

January 2007

6

Preliminarily reviewing the equitization of state corporations and parent companies

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SCERD

Fourth quarter of 2007

7

Preliminarily reviewing the organizational model and operation efficiency of economic groups

SCERD

MPI

February 2008

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Preliminarily reviewing the pilot model of hiring executive directors under contracts

SCERD

MPI, MoF

March 2008

9

Preliminarily reviewing the conversion of non-business units of economic groups or state corporations into scientific-technological enterprises

SCERD

Ministry of Science and Technology and concerned ministries

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10

Preliminarily reviewing the pilot equitization of tree gardens associated with processing establishments

MARD

SCERD

June 2007