Laws of Vietnam

THE PRIME MINISTER

DECIDES:

Article 1.- To set up a Central Equitization Steering Committee, comprising:

- Mr. Phan Van Tiem, Minister-Chairman of the Central Steering Committee for the Renewal of Enterprises: Chairman.

- Mr. Pham Van Trong, Vice Minister of Finance: Vice Standing Chairman.

- Mr. Le Duy Dong, Vice Minister of Labor, War Invalids and Social Affairs: member.

- Mr. Hoang Minh Chuc, Vice President of the Vietnam General Confederation of Labor: member.

The Central Steering Committee shall be assisted by a group of experts selected from the related Ministries with the Equitation Steering Committee of the General Department for the Management of State Capital and Property at enterprises under the Ministry of Finance acting as the standing agency.

The number of experts, the apparatus, head office and working regulations of the standing agency shall be decided by the Chairman of the Central Equitization Steering Committee.

Article 2.- Tasks and powers of the Central Equitization Steering Committee:

1. Tasks:

a/ Promulgating the working regulations of the Committee; assigning tasks to each member of the Committee in accordance with the provisions of Decree No.28-CP of May 7, 1996 of the Government; coordinating the activities of the members and creating favorable conditions for them to accomplish their assigned tasks.

b/ Participating together with the Ministries, branches, provinces and cities directly under the Central Government (Ministries and localities for short) in directing the equitization of enterprises with the State capital of over 3 billion VND (including budget capital, capital from budget resources and capital accumulated by the enterprises themselves).

c/ Taking part together with the Managing Boards of the State Corporations established by decisions of the Prime Minister and operating in accordance with Decision No.91-TTg of March 7, 1994 (the 91 Corporations for short) in guiding the equitization of member enterprises of such Corporations.

d/ Guiding and supervising the Ministries and localities in the equitization of enterprises directly in their charge.

e/ Evaluating and submitting to the Prime Minister for ratification the projects on the equitization of enterprises with a State capital of over 3 billion VND.

f/ Submitting to the Prime Minister for decision matters which are beyond the competence of the Committee.

g/ Working out pilot projects on the sale of stocks to foreign organizations and individuals to be submitted to the Prime Minister for approval.

h/ Reviewing the materialization of the policies on equitization so as to report to the Prime Minister in the second quarter of 1998.

2. Powers:

a/ Promulgating the equitization procedures, defining the tasks and powers of the Equitization Steering Committees in the Ministries and localities and the Equitization Committees at enterprises.

b/ Convening meetings of Ministries, localities and State enterprises so as to brief them and provide them guidance on the undertakings, policies and decisions of the Party and the Government on equitization; requesting the Ministries and localities and the 91 Corporations to report their projects on equitization and make quarterly reports on the results of the implementation of those projects.

c/ Settling within its competence any difficulties arising in the equitization process.

d/ Suspending the equitization conducted by Ministries or localities which is contrary to the guidance of the Government.

e/ Depending on each case, the Minister-Chairman of the Committee may be authorized by the Prime Minister to ratify plans for the equitization of enterprises with a State capital of from over 3 to 10 billion VND.

f/ Inspecting the entire equitization work carried out by the Ministries, localities and State enterprises.

g/ Requesting the related Ministries and branches to appoint a number of their specialists to the standing agency of the Committee (if necessary).

3. The seal and fund for operations:

- The Central Equitization Steering Committee shall not have its own seal. For each case coming under the competence of each member of the Committee, he/she shall affix his/her signature and the seal of his/her agency. The Chairman of the Committee is entitled to use the seal of the Government. The Vice Standing Chairman is entitled to use the seal of the Ministry of Finance to direct the common affairs of the Committee.

- The fund for regular operations of the Central Equitization Steering Committee shall be included in the annual central budget plan for equitization; the State may supply a temporary fund for operations of the Committee in 1996 at the proposal of the Chairman of the Committee.

1. The Ministers, the Presidents of the provinces and cities directly under the Central Government shall make decisions on the establishment of Equitization Steering Committees of their own Ministries and localities.

The ministerial and local Equitization Steering Committees shall appoint a number of officials from the departments for the renewal of enterprises which were set up by Decision No.83-TTg of March 4, 1993 of the Prime Minister to serve as the core of the Committees. The membership of such a Committee shall include:

- A Vice Minister (or Vice President of a province) who shall act as Chairman of the Committee.

- The Heads (or Deputy Heads) of Departments or Directors (or Deputy Directors) of Services of Planning and Investment; the Financial Service; and the Labor, War Invalids and Social Affairs Service who shall act as members.

The President (or Vice President) of the Labor Confederation of the branch (for Ministries) or of the provincial Union of Labor Confederation (for localities) shall be invited to join as a member.

The Equitization Steering Committees of the Ministries and localities shall be subject to the professional direction of the Central Equitization Steering Committee and shall perform the same tasks as the Central Steering Committee within the scope of their assignment. The fund for operations of the Committees shall also be included in the annual budget plan.

2. The Managing Boards of the 91 Corporations shall direct the equitization of their Corporations.

3. The State enterprises chosen for equitization shall have to set up Equitization Steering Committees of their own by decision of the Ministers, the Heads of the ministerial level agencies and agencies attached to the Government or the Presidents of the People’s Committees of the provinces and cities directly under the Central Government and the Managing Boards of the 91 Corporations. The membership of such a Committee shall comprise:

- The Director (or Deputy Director): Chairman of the Committee.- The Chief Accountant (or the Head of the Accounting and Finance Section): standing members.

- The Head (or Deputy Head) of the Section for Organization, Personnel, Labor and Wage: member.

- The Secretary (or Deputy Secretary) of the Party Committee and the President (or Vice President) of the Labor Confederation shall be invited to join as members of the Committee.

Article 4.- To have a basis for the review of the equitization from now to the year 1997, at least 150 State enterprises in the whole country must be equitized. The Central Equitization Steering Committee shall decide the concrete number of State enterprises to be equitized in each Ministry, locality and in the 91 Corporations after obtaining consensus thereof and reaching agreement with the Party Caucuses (for Ministries), the provincial or municipal Party Committees, the People’s Councils (for localities), and the Party Committees of the same level (for the 91 Corporations).

Article 5.- This Decision takes effect from the date of its signing.

The Ministers, the Heads of the ministerial level agencies and agencies attached to the Government, the Presidents of the People’s Committees of the provinces and cities directly under the Central Government; the Managing Boards of the Corporations established by decision of the Prime Minister and the persons named in Article 1 shall have to implement this Decision.

For the Prime Minister

Deputy Prime Minister