THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 43/2004/TT-BTC
Hanoi, May 20, 2004
 
CIRCULAR
GUIDING THE HANDLING OF STATE ENTERPRISES' LOSSES ARISING IN THE PERIOD FROM THE TIME OF ENTERPRISE VALUATION TO THE TIME OF THEIR OFFICIAL TRANSFORMATION INTO JOINT-STOCK COMPANIES
In implementation of the Prime Minister's direction in the Government Office's Official Dispatch No. 280/VPCP-DMDN of January 15, 2004, the Ministry of Finance hereby guides the handling of equitized State enterprises' business losses arising in the period from the time of enterprise valuation to the time of their transformation into joint-stock companies as follows:
I. FOR ENTERPRISES CURRENTLY UNDERGOING EQUITIZATION
1. The directors of State enterprises and the Enterprise Renewal and Development Boards (called the Enterprise Renewal Boards for short) must expeditiously complete the transformation plans within 6 months as from the date the equitization plans are approved. In the course of implementing the equitization plans (before the enterprises make business registration to operate as joint-stock companies), if in the period from the time of enterprise valuation to the time of making of quarterly or annual financial statements, the enterprises suffer from business losses, then the enterprise directors and the Enterprise Renewal Boards must clearly identify the causes, responsibilities of the collectives as well as individuals, handle the compensation for material damage (if due to subjective causes), and at the same time coordinate with the finance agencies and commercial banks in considering the conditions and carrying out procedures to write off debts being tax arrears, State budget remittances and unpaid bank loan interests in order to handle the remaining losses (if any) as prescribed in the Finance Ministry's Circular No. 85/2002/TT-BTC of September 26, 2002 and Vietnam State Bank's Circular No. 05/2003/TT-NHNN of February 24, 2003.