DECISION

APPROVING THE SCHEME ON EXPERIMENTALLY FORMING VIETNAM POST AND TELECOMMUNICATIONS CONGLOMERATE

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government,
Pursuant to the June 12, 1999 Law on Enterprises;
Pursuant to the November 26, 2003 Law on State Enterprises;
Pursuant to the May 25, 2002 Ordinance on Post and Telecommunications;
Pursuant to the Government's Decree No. 153/ 2004/ND-CP of August 9, 2004 on the organization and management of state corporations and transformation of state corporations and indepen­dent state companies into ones operating after the parent company-subsidiary company model,
At the proposals of the Minister of Post and Telematics and the Managing Board of Vietnam Post and Telecommunications Corporation,

DECIDES:

Article 1.- To approve the scheme on experimentally forming Vietnam Post and Telecommunications Conglomerate with the following contents:

1. To form Vietnam Post and Telecommuni­cations Conglomerate with a modern technological and management level and high specialization; doing business in multiple branches, of which telecommunications, information technology and post are major business lines; closely combining production and business with science, technology, research and development, and training, with participation of various economic sectors; acting as a core for the post and telecommunications industry of Vietnam to develop in a fast and sustainable manner, and efficiently conduct competition and international economic integration.

2. Vietnam Post and Telecommunications Conglomerate shall be formed on the basis of reorganizing Vietnam Post and Telecommunica­tions Corporation and its member units, with the following structure:

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The Conglomerate's managerial apparatus shall be composed of the Managing Board, the Control Board, the general director, deputy general directors, the chief accountant, and the assisting apparatus.

The Conglomerate's Managing Board shall be composed of 9 members at most, including the Chairman, the general director, the head of the Control Board of the Conglomerate, the general director of Vietnam Post Corporation, the general directors of Telecommunications Corporations 1, II and Ill, and possibly one or two experts. The Managing Board members shall be appointed by the Prime Minister at the proposal of the Minister of Post and Telematics.

The Conglomerate shall have to inherit the legitimate rights and obligations of Vietnam Post and Telecommunications Corporation according to the provisions of law.

b/ Vietnam Post Corporation, with its establishment decided by the State and capital assigned by the State through the Conglomerate; doing business in multiple branches, of which the provision of post services is the principal business line; ensuring the provision of public post services according to the provisions of the Ordinance on Post and Telecommunications, and performing other public-utility post tasks assigned by the State.

The Corporation's managerial structure shall be composed of the general director, deputy-general directors, the chief accountant and the assisting apparatus. The Corporation's general director, deputy-general directors and chief accountant shall be appointed by the Conglomerate's Managing Board after obtaining the written approval of the Ministry of Post and Telematics.

c/ Telecommunications corporations operating after the parent company - subsidiary company model, including:

- Telecommunications Corporation I (operating in the provinces from Quang Binh northwards).

- Telecommunications Corporation III (operating in the provinces from Quang Tri to Ninh Thuan and in the Central Highland provinces).

- Telecommunications Corporation II (operating in the provinces from Binh Thuan southwards).

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d/ Companies with 100% of their charter capital being held by the Conglomerate, including:

- Vietnam DataCommunication Company.

-The Software and Communication Development Company.

e/ Companies with over 50% of their charter capital being held by the Conglomerate, including:

- Vietnam Mobile Service Joint-Stock Company.

- Vietnam Telecom Service Joint-Stock Company.

- Other joint-stock companies and multi-member limited liability companies, to be formed through equitization or ownership transformation of state enterprises, or newly set up, operating in the production/business lines permitted by law.

f/ Companies with under 50% of their charter capital being held by the Conglomerate (associated companies), including companies engaged in equipment manufacture, software industry, construction and installation, trade, provision of added value services, insurance, tourism, and other production/business lines under the provisions of law.

g/ Telecommunications and information technology joint-ventures with foreign countries.

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3. Roadmap for forming the Conglomerate:

- From the second quarter to the fourth quarter of 2005:

+ To form the Conglomerate, Vietnam Post Corporation, Telecommunications Corporations I, II and III, and companies with 100% of their charter capital being held by the Conglomerate.

+ To equitize entirely enterprises or enterprise sections to form subsidiary companies and associated companies.

- In the fourth quarter of 2005: To transfer the Central Post Department to the Ministry of Post and Telematics for management, to transform units stated at Point h, Clause 2, Article 1 of this Decision into independent non-business units operating under the mechanism defined in the Government's Decree No. 10/2002/ND-CP of January 16, 2002 on financial regimes applicable to non-business units with revenues.

Article 2.- Organization of implementation: 1. The Ministry of Post and Telematics shall:

- Direct and monitor the implementation of this scheme; promptly detect and settle arising problems, and report to the Prime Minister for settlement problems falling beyond its competence; assume the prime responsibility for, and coordinate with concerned agencies in, studying and proposing to the Prime Minister new issues to be experimented in the course of implementation of the scheme.

- Propose the Prime Minister to decide on the establishment of the parent company - Vietnam Post and Telecommunications Conglomerate, and approve the Regulation on its organization and operation; transfer the Central Post Department to the Ministry of Post and Telematics for management.

- Decide on the establishment of Vietnam Post Corporation, Telecommunications Corporations I, II and III, and companies with 100% of their charter capital being held by the Conglomerate after obtaining the written approval of the Prime Minister. Adopt the Regulations on organization and operation of such Corporations and companies so that the Conglomerate's Managing Board can approve them.

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- Stipulate connection charges and manage connection, ensuring the equal provision of services on telecommunications line networks to all customers inside and outside the Conglomerate.

2. The Ministry of Finance shall:

Approve Financial Regulations of the Conglomerate, Vietnam Post Corporation and Telecommunications Corporations I, II and Ill.

3. The Managing Board of Vietnam Post and Telecommunications Corporation shall:

- Formulate schemes on establishment, and Regulations on organization and operation, of the parent company - Vietnam Post and Telecommuni­cations Conglomerate, Vietnam Post Corporation, Telecommunications Corporations I, II and III, and companies with 100% of their charter capital being held by the Conglomerate; and the scheme on transfer of the Central Post Department for submission to the Ministry of Post and Telematics.

- Submit to the Ministry of Post and Telematics for decision the transformation of enterprises or enterprise sections into joint-stock companies.

- Ensure the non-interruption of activities in operating networks and providing services to customers, and transferring the legitimate rights and obligations between Vietnam Post and Telecommuni­cations Corporation and the Conglomerate.

4. The Ministers of Finance; Planning and Investment; Labor, War Invalids and Social Affairs; and Home Affairs; the heads of the concerned agencies; and the Steering Committee for Enterprise Renewal and Development shall, according to their respective functions and tasks, have to coordinate with the Ministry of Post and Telematics and the Managing Board of Vietnam Post and Telecommunications Corporation in performing the above-said tasks.

Article 3.- This Decision takes effect 15 days after jts publication in the Official Gazette.

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FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER




Nguyen Tan Dung