Decree No. 64/2002/ND-CP dated June 19, 2002 of the Government on the transformation of state enterprises into joint-stock companies

THE GOVERNMENT -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ------------
No: 64/2002/ND-CP	Hanoi, June 19, 2002

DECREE

ON THE TRANSFORMATION OF STATE ENTERPRISES INTO JOINT-STOCK COMPANIES

THE GOVERNMENT

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

Pursuant to the June 12, 1999 Enterprise Law;

Pursuant to the April 20, 1995 State Enterprise Law;

At the proposal of the Finance Minister,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Objectives of the transformation of State enterprises into joint-stock companies (hereinafter referred to as equitization for short)

1. To make an important contribution to raising the efficiency and competitiveness of enterprises; to create a type of enterprises with multiple owners, including the majority of laborers; to generate a vigorous motive force and a dynamic managerial mechanism for enterprises to use efficiently the State capital and assets as well as their own capital.

2. To mobilize the capital of the entire society, including individuals, economic and social organizations at home and abroad, for investment in renewing technologies and developing enterprises.

3. To promote the genuine mastery of laborers and shareholders, to enhance the supervision by investors over enterprises; to ensure the harmony between the interests of the State, enterprises, investors and laborers.

Article 2.- Objects of application

1. This Decree shall apply to enterprises and their dependent units as prescribed in Article 1 of the State Enterprise Law (excluding those enterprises where the State needs to hold 100% of their charter capital), regardless of the enterprises production and business results. The list of classified State enterprises shall be decided by the Prime Minister in each period.

2. The equitization of dependent units of the enterprises specified in Clause 1 of this Article shall be carried out only when:

a/ These dependent units meet all the conditions for independent cost-accounting;

b/ No difficulty or adverse impact shall be caused to the production and/or business efficiency of the enterprises or their remaining components.

3. For enterprises with independent cost-accounting, which fall into the subjects specified in Clause 1 of this Article and have, as reflected on their accounting books, a State capital amount of under VND 5 billion, if they cannot be equitized, they shall be transferred, sold, commercially contracted, or leased according to law provisions.

Article 3.- Forms of equitization of State enterprises

1. Maintaining the existing State capital portion in the enterprise and issuing share certificates to attract more capital.

2. Selling part of the existing State capital amount in the enterprise.

3. Selling the whole of the existing State capital amount in the enterprise.

4. Effecting the second or third form above in combination with issuing share certificates to attract more capital.