Laws of Vietnam

Pursuant to the Law on Organization of the Government on the 30th of September, 1992;

In implementation of Decision No 91-TTg issued on the 7th of March 1994 by the Prime Minister on the trial establishment of business groups;

At the proposal of the Minister of Energy,

Article 1.- To establish the Vietnam Coal Corporation on the basis of the rearrangement of the production, distribution and administration units in the coal industry under the Ministry of Energy and the units of the Army and localities which are engaged in the production and distribution of coal after reorganization in accordance with Decision No 381-TTg issued on the 27th of July, 1994, by the Prime Minister.

The Vietnam Coal Corporation is a State owned business which has the juridical capacity, a seal and a regulation for its organization and operation. It is allowed to open accounts at domestic and foreign banks in accordance with the State regulations, to have the autonomy in business. Its member units shall have their independent cost accounting or dependent cost accounting based on allocations from the General Corporation.

The Vietnam Coal Corporation is called VINACOAL in its international transactions. It has its Head Office in Ha Long City in Quang Ninh province.

The Vietnam Coal Corporation is under the State management of the Ministry of Energy and the other State agencies provided for by law; it may set up contacts with the Ministries, the State Committees and the State agencies at central and local levels in the accomplishment of its tasks.

Article 2.- The Vietnam Coal Corporation has the following main tasks:

1. To carry out business in coal production in accordance with the State plan and strategy for development of the coal industry; to take initiative in business ranging from development planning to preparation for investment, investment in capital construction, prospection, survey and designing, installation of facilities, product consumption, import and export, and supply of materials (including explosives); and to cooperate or enter into joint ventures with economic organizations at home and abroad in accordance with law and State policies.

2. To organize and manage scientific and technological research and development activities and the training of personnel.

3. To receive capital investment from the State and to preserve and use this capital on it to carry out the assigned duties of the Corporation in business and development.

Article 3.- The organization of the Vietnam General Coal Corporation includes:

1. The Managing Council,

2. The General Director and Deputy General Directors,

3. The specialized departments and boards to assist the General Director,

4. The member companies of the Corporation.

Article 4.- The Managing Council is the body empowered by the State to carry out a number of functions of representative of the State ownership over the Corporation.

The President and the other members of the Managing Council shall be appointed by the Prime Minister on the basis of the proposal to be made by the Minister of Energy after consultation with the Minister-Chairman of the Government Commission on Organization and Personnel.

1. The General Director directs the business activities of the Corporation in his capacity as chief executive, is the representative of the juridical capacity of the Corporation in all business contacts and is accountable before law and the Managing Council for the activities of the Corporation.

2. The General Director shall be appointed by the Prime Minister on the basis of the proposal to be made by the Minister of Energy after consultation with the Minister-Chairman of the Government Commission on Organization and Personnel.

3. The Vice Directors shall be appointed by the Minister of Energy on the basis of the proposal by the General Director after consultation with the Minister-Chairman of the Government Commission on Organization and Personnel.

Article 6.- To assign the Minister of Energy to direct all related preparations to ensure that the Vietnam Coal Corporation shall soon stabilize its new organization and start its operation from the 1st of January, 1995, which include the followings:

- To approve the plan for rearrangement of the business and administration units which are operating in the coal industry in order to draw up a list of the member units of the Corporation;

- To draft the Regulation on Organization and Operation of the Corporation and submit it to the Prime Minister for approval during November 1994;

- To complete the assigning and posting of personnel at the Corporation level during October 1994;

- To complete the allocation of capital to the Corporation before December 1994.

Article 7.- This Decision shall take effect from the date of signing its.

The Minister of Energy, the Heads of the agencies at ministerial-level and the agencies attached to the Government, the Presidents of the People's Committees at provinces and cities directly under the Central Government, and the Managing Council and General Director of the Vietnam Coal Corporation are responsible for the implementation of this Decision.

VO VAN KIET