RESOLUTION

Resolution No. 10/NQ-CP of February 23, 2010, promulgating the Government’s program of action for realization of the National Assembly’s Resolution No. 42/2009/QH12 on enhancement of the effect and effectiveness of implementation of policies and laws on management and use of state capital and assets at state-run groups or corporations

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the National Assembly’s Resolution No. 42/2009/QH12 of November 27, 2009, on enhancement of the effect and effectiveness of implementation of policies and laws on management and use of state capital and assets at state-run groups or corporations;

At the proposal of the Minister- Director of the Government Office,

RESOLVES:

Article 1. To promulgate together with this Resolution the Government’s program of action for realization of the National Assembly’s Resolution No. 42/2009/QH12 of November 27, 2009, on enhancement of the effect and effectiveness of implementation of policies and laws on management and use of state capital and assets at state-run groups or corporations.

Article 2. This Resolution takes effect after its signing.

Article 3. Ministers, heads of ministerial-level agencies, heads of government- attached agencies, chairmen of provincial/municipal People’s Committees and chairmen of the Boards of Directors of state-run groups or corporations shall implement this Resolution.

GOVERNMENT’S PROGRAM OF ACTION

For realization of the National Assembly’s Resolution No. 42/2009/QH12 on enhancement of the effect and effectiveness of implementation of policies and laws on management and use of state capital and assets at state- run groups or corporations

(Promulgated together with the Government’s Resolution No. 10/NQ-CP of February 23, 2010)

The XIIth National Assembly adopted at its 6th session Resolution No. 42/2009/QH12 of November 27, 2009, on enhancement of the effect and effectiveness of implementation of policies and laws on management and use of state capital and assets at state-run groups or corporations. In order to realize the National Assembly’s Resolution, the Government has formulated its program of action with the following principal contents:

I. MAJOR TASKS

1. To further review, amend, supplement and finalize legal documents on the management of enterprises; the management and use of state capital and assets as well as land at state-run groups or corporations; and on the renewal, reorganization and equitization of enterprises with 100% state capital.

To draft a law on the use of state capital and assets invested in business and amend and supplement relevant laws for submission to the National Assembly for promulgation. Pending such law, the Government has promulgated the Decree on state capital management, investment and dealing.

To study for early separation of the function of exercising the state-owner’s rights from the function of state administration of state administrative agencies; to clearly distinguish the owner rights from the enterprises’ rights to business autonomy; to respect enterprises’ rights to business autonomy and accountability. To finalize the mechanism on decentralization of the exercise of state-owner’s rights and obligations on the principle of one focal point taking the prime responsibility for monitoring and summing up the management and use of state capital and assets and analyzing and assessing the state enterprises’ production and business efficiency.

2. To review, analyze and evaluate in a comprehensive manner the efficiency of the model of state-run economic group or corporation, and necessarily the position and role of each group or corporation in the national economy, technical and economic branch; the organizational, managerial and operational model; the business efficiency; the state management and supervision of state-run groups and corporations.

To promulgate the Charter on organization and operation of newly established economic groups; to amend and supplement charters of various groups to comply with the Government’s Decree No. 101/2009/ND-CP of November 5, 2009, experimenting the establishment, organization, operation and management of state-run economic groups.

To resolutely reorganize state corporations operating inefficiently with accumulative losses over years and incapability to restore their business operation; at the same time, to clarify the responsibilities of collectives and individuals for letting the corporations suffer losses and handle them according to law.

To finally review the debt handling in the state enterprise sector and find out effective measures to handle the state of bad debts.

3. To identify sectors and domains in which state-run economic groups or corporations are needed within 5 or 10 years to come; and those in which the State needs to hold 100% capital or the controlling stake in parent companies.

To reorganize state corporations and state companies for formation of state-run corporations which are powerful enough to lead the economy and occupy greater and greater positions and roles, being capable of competing with enterprises in the region and the world.

4. To speed up the reorganization, renewal and equitization of state enterprises. To elaborate appropriate regulations and modes for efficient equitization of state-run economic groups and corporations.

5. To revise business lines, portfolios and organizational structures of groups and corporations for adjustment to ensure that groups and corporations conduct multi-sector business but concentrate on their main production and business lines while carefully selecting other business lines on the basis of bringing into play their respective potential and advantages with a given proportion of investment capital.

6. To specify the regimes of reporting, publicity and transparency of operation results, including the distribution of profits of state-run groups or corporations, based on the clearly defined criteria, which serve as bases for examination, control, inspection and supervision.

To clearly define criteria for selection of personnel for management of groups or corporations; the rights, responsibilities and interests; measures to handle violations; specific mechanisms of commendation and disciplining.

7. To study and formulate mechanism of renewal of wage and bonus management in state-run groups or corporations, giving autonomy to enterprises and harmonizing the interests of the State, enterprises and laborers; to elaborate regulations on wages and bonuses applicable to managers of the state capital portions at enterprises with state capital.

8. To preliminarily review and evaluate the organization and operation model of the State Capital Investment Corporation; to finalize the mechanism on representatives of the state capital portions on the basis of clarifying their legal status and relations with capital management agencies and state management agencies, and identifying the key personnel body managing the contingent of these officials. To amend and supplement legal provisions for appropriate adjustment of the particular operations of the State Capital Investment Corporation.

II. ORGANIZATION OF IMPLEMENTATION

1. Based on the above principal tasks and work contents and the enclosed appendix, and depending on their respective assigned functions and tasks, ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairmen of provincial/municipal People’s Committees and chairmen of the Boards of Directors of state-run groups or corporations shall immediately organize the implementation of this program of action to ensure the timely and efficient realization of the contents of the National Assembly’s Resolution No. 42/2009/QH12 of November 27, 2009.

2. The Ministry of Finance shall assume prime responsibility for, and coordinate with concerned agencies in, making the Government’s report on implementation of policies and laws on management and use of state capital and assets at state-run groups or corporations, to be presented before the XIIth National Assembly at its 8th session.

3. The Steering Committee for Enterprise Renewal and Development shall monitor and urge ministries, sectors, localities, state-run groups and corporations in the implementation of this program of action; report to the Government, the Prime Minister and concerned agencies on proposed necessary measures to ensure that the program is synchronously and effectively implemented according to schedule.