Laws of Vietnam

Article 1.- To set up funds for support of the restructure and equitization of State enterprises run by the central government, localities or State corporations established by the Prime Minister’s decisions (Corporation 91), with a view to applying the entitlement regime for laborers and providing financial support for State enterprises in the process of their re-arrangement and equitization (hereafter referred to as enterprise restructure funds for short).

Article 2.- The enterprise restructure funds shall be used for:

1. Expenditures on the training and re-training so as to give jobs to redundant laborers in the process of ownership change and restructure of State enterprises.

2. Subsidies to laborers who voluntarily terminate the labor contracts or lose their jobs due to the restructure or ownership change of State enterprises according to the current regulations (after using up the severance reserve fund).

3. Support for laborers in the equitized State enterprises where the State-owned capital is not enough to cover the preferential shares to be sold to laborers in such enterprises.

4. Addition of capital to the State enterprises which need to be prioritized for consolidation, and investment in the equitized State enterprises according to the plans already ratified by the competent agencies.

Article 3.- Sources of capital for the creation of the funds:

In principle, the funds shall be created with capital sources arising in the process of restructuring, equitizing, selling, business contracting and leasing (hereafter referred to as ownership conversion for short) State enterprises, including: revenues from the locally-run State enterprises, which shall be remitted to the enterprise arrangement funds in the localities; revenues from State enterprises of Corporations 91, which shall be remitted to the enterprise restructure funds in Corporations 91; revenues from State enterprises of the ministries and branches as well as central budget money allocated according to the annual plans, which shall be remitted to the centrally-run enterprise arrangement funds; and the local budget allocations, which shall be remitted to the locally-run enterprise restructure funds.

Concrete capital sources:

1. The proceeds from the sale of State capital at enterprises subject to the ownership change.

2. The share dividends and revenues from the State’s capital contributions at the joint-stock companies and limited liability companies.

3. The proceeds from the sale of the redundant assets, assets in stock and liquidated assets, and money gained from the recovered bad debts which had already been excluded from the value of enterprises in the ownership conversion process.

4. The money gained from the liquidation of the State properties upon the dissolution of State enterprises.

5. Aid sources from organizations and individuals inside and outside the country for the restructure and equitization of State enterprises.

6. The State budget allocations made according to the annual plans (if any).

Article 4.- The enterprise restructure funds shall be set up at the following levels:

1. The central enterprise restructure fund shall be concentrated in one account to be managed by the Minister of Finance. The branch-managing ministry shall, together with the Finance Ministry, ratify the annual plan on the use of the fund. Enterprises entitled to expenditures from the fund shall make the expenditures therefrom and the final settlement of accounts thereof with the Finance Ministry.

2. The enterprise restructure fund in a province or centrally-run city (hereafter referred to as the local enterprise restructure fund for short) shall be concentrated in one account of the provincial/municipal Finance - Pricing Department, and managed by the president of the People’s Committee of the concerned province or centrally-run city (hereafter referred to as the provincial People’s Committee for short). The director of the Finance- Pricing Department shall assist the provincial People’s Committee in managing the fund.

3. The enterprise restructure fund at a corporation 91 shall be concentrated in the Corporation’s separate account to be managed by the Managing Board, which shall also ratify the fund-using plan. The general director shall organize the use of the fund and make the final settlement of accounts thereof the fund with the Finance Ministry.

4. For independent cost-accounting enterprises attached to ministries or provincial People’s Committees, the State enterprise directors or Managing Boards (for enterprises with Managing Boards) shall be entitled to use the proceeds from the sale of shares to offset the expenditures stipulated in Clauses 1 and 2, Article 2 of this Decision. The remainder shall be remitted to the central enterprise restructure fund (for enterprises under the ministries and centrally-run branches) or the local enterprise restructure fund (for enterprises under the provincial People’s Committees). Where an enterprise needs to be consolidated and develop, the fund-managing agency shall give priority to the re-allocation of the fund to such enterprise according to the ratified plan.

Article 5.- Management of the funds:

1. The enterprise restructure funds shall be used in strict compliance with the stipulations in Article 2 of this Decision.

2. All the funds’ revenues and expenditures must be separately accounted and evidenced by valid vouchers and invoices.

3. The provincial People’s Committee presidents and the Managing Boards of corporations 91 shall have to manage the funds, and make regular and periodical reports thereon as stipulated by the Minister of Finance.

4. The Minister of Finance shall have to regulate the funds in the whole country to serve the enterprise restructure and equitization; sum up and make the final settlement of accounts of revenues and expenditures of the enterprise restructure funds throughout the country.

Article 6.- Responsibilities of the ministries, provincial People’s Committees and Managing Boards of Corporations 91:

1. To coordinate with the agencies managing the central enterprise restructure funds in inspecting and urging State enterprises of the ministries, localities and corporations 91 to manage and fully remit to the funds the remaining sums of money gained from their ownership change, after paying the expenditures mentioned in Clauses 1 and 2, Article 2 of this Decision.

2. To decide the regime of entitlements for laborers in the State enterprises managed by the ministries, localities and Corporations 91 upon the change of ownership.

3. To inspect and decide expenditures on financial support as mentioned in Article 2 of this Decision. For the branch-managing ministries, they must notify such decisions to the Ministry of Finance for allocation.

4. To inspect the ownership conversion expenditures and the use of the enterprise arrangement funds at enterprises managed by the ministries, localities and Corporations 91, ensuring that the funds are used for the right purposes, according to the prescribed regime and in an efficient manner for the performance of the tasks mentioned in Article 2 of this Decision.

Article 7.- Responsibilities of the Finance Ministry:

1. To issue, after getting approval from the Prime Minister, the regulation on the management, collection, remittance and use of capital sources of the enterprise restructure funds.

2. To ensure that the funds’ allocations be used for the right purposes and efficiently in the change of ownership of enterprises.

3. To direct and organize the inspection and management of the use of capital sources of the enterprise restructure funds.

4. To regulate capital sources of the local enterprise restructure funds and the enterprise restructure funds in corporations 91 when deeming it necessary.

5. To take the State management responsibility for operations of the enterprise restructure funds throughout the country.

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 said funds in the training and re-training of laborers so as to create new jobs and provide allowances for those laborers who voluntarily terminate the labor contracts or who lose their jobs upon the change of ownership of the State enterprises.

Article 9.- This Decision takes effect 15 days after its signing.

Article 10.- 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 corporations 91 shall have to implement this Decision.