What is the exclusion method of calculating the evaluation criteria for classification of State-owned enterprises of Vietnam contributing to the Covid-19 vaccine fund?
What is a State-owned enterprise of Vietnam?
Pursuant to the provisions of Article 88 of the Law on Enterprise 2020, regulations on State-owned enterprises are as follows:
- State-owned enterprises shall be limited liability companies or joint stock companies, including:
+ Wholly state-owned enterprises (100% of charter capital of which is held by the State)
+ Partially state-owned enterprises (over 50% of charter capital or voting shares is held by the State, except the enterprises specified in Point a Clause 1 of this Article).
Article 89 of the Law on Enterprise 2020 provides for the application of regulations to State-owned enterprises according to which:
- Wholly state-owned enterprises specified in Point a Clause 1 Article 88 of this Article shall be organized as single-member limited liability companies in accordance with this Chapter and relevant regulations of this Law. In case of discrepancies between regulations of this Law, the regulations of this Chapter shall prevail.
- Partially state-owned enterprises specified in Point b Clause 1 Article 88 of this Article shall be organized as multiple-member limited liability companies in accordance with Section 1 of Chapter III or as joint stock companies in accordance with Chapter V of this Law.
Thus, State-owned enterprises include the following types:
- One member limited liability company with 100% charter capital held by the State;
- Limited liability companies with 2 or more members in which more than 50% of charter capital is held by the State;
- Joint stock companies with more than 50% of charter capital held by the State.
What is the exclusion method of calculating the evaluation criteria for classification of State-owned enterprises of Vietnam contributing to the Covid-19 vaccine fund? (Image from the internet)
What are the criteria for evaluating performance of enterprises in Vietnam?
Pursuant to the provisions of Article 28 of Decree 87/2015/ND-CP stipulating the criteria for evaluating the performance of enterprises as follows:
“Article 28. Criteria for enterprise performance assessment
1. Criteria for enterprise performance assessment shall include:
- Criterion 1. Revenue.
- Criterion 2. Net income and net income-to-equity ratio
- Criterion 3. Overdue debts and capacity to repay debts due.
- Criterion 4. Compliance with laws on investment, management and utilization of state capital invested in enterprises, legislation on taxes and other collections paid to the state budget, and legal regulations on financial reporting regime for the purpose of carrying out the financial supervision.
- Criterion 5. Current state of public products and services.
2. Criteria stipulated in Clause 1 of this Article shall be defined and measured with reference to data provided in audited annual financial statements and periodic statistical reports in accordance with applicable regulations of single-member limited liability companies and parent companies.
Criteria 1, 2, 4 and 5 stipulated in Clause 1 of this Article shall take into consideration and eliminate the impact factors:
- Unexpected events, such as natural disasters, fire, epidemic diseases, wars and other force majeure;
- Investment in manufacturing development according to the planning or proposal approved by competent authorities, which may influence income generated in two first years prior to the year in which projects were brought into operation;
- The state’s price adjustment (applicable to products priced by the state) causing impacts on enterprise's revenue, or obligations to fulfillment of socio-economic objectives under the directions of the Government and the Prime Minister.
3. As for enterprises established and actually operated in a regular and stable manner and mainly providing public products and services, the rating of such enterprises shall be based on criteria 1, 3, 4 and 5 stipulated in Clause 1 of this Article.
4. The assessment of operating results of enterprise’s managers shall be governed under the Government’s regulations and according to the following criteria:
- The level of conformity with objectives assigned by the representative agency in terms of net income and net income-to-equity ratio;
- Enterprise rating results;
- The level of complete implementation of the plan to supply public products or services (applicable to enterprises providing public products and services).”
Accordingly, the criteria for evaluating the performance of enterprises include:
- Criterion 1. Revenue.
- Criterion 2. Net income and net income-to-equity ratio
- Criterion 3. Overdue debts and capacity to repay debts due.
- Criterion 4. Compliance with laws on investment, management and utilization of state capital invested in enterprises, legislation on taxes and other collections paid to the state budget, and legal regulations on financial reporting regime for the purpose of carrying out the financial supervision.
- Criterion 5. Current state of public products and services.
What is the exclusion method of calculating the evaluation criteria for classification of State-owned enterprises of Vietnam contributing to the Covid-19 vaccine fund?
Pursuant to the provisions of Article 1 of Resolution 87/NQ-CP in 2022, guiding the assessment of operational efficiency and classification of State-owned enterprises contributing to the Covid-19 vaccine fund as follows:
“Article 1. The Government has agreed that State-owned enterprises that contribute to the Covid-19 Vaccine Fund and support the prevention and control of the Covid-19 epidemic are excluded from contributions and support for the work. epidemic prevention and control when calculating criteria to evaluate the performance and classify enterprises according to the provisions of Decree No. 87/2015/ND-CP dated October 6, 2015 on supervision of state capital investment in enterprises, financial supervision, performance evaluation and disclosure of financial information of State-owned enterprises and State-owned enterprises, specifically as follows:
1. Subjects of application: State-owned enterprises subject to the provisions of Clause 3, Article 2 of Decree No. 87/2015/ND-CP dated October 6, 2015 of the Government on supervision of capital investment State-owned enterprises, financial supervision, performance evaluation and disclosure of financial information of State-owned enterprises and State-owned enterprises.
2. The scope to be considered for exclusion includes:
a) Expenses and contributions for epidemic prevention and control are fully documented as prescribed in Decree No. 44/2021/ND-CP dated March 31, 2021 of the Government on deductible expenses. determining corporate income taxable income for support and sponsorship expenditures of enterprises and organizations for Covid-19 epidemic prevention and control activities;
b) Revenue reductions due to exemption and reduction of service fees and charges to support people and businesses during the epidemic period according to the general policy of the Government or the direction of the Prime Minister.
3. Implementation principle: The exclusion when calculating the performance evaluation criteria and classification of enterprises shall be done on the principle that contributions and donations that affect the performance of any year will be eligible. excluded when evaluating and classifying enterprises that year.”
Accordingly, the exclusion when calculating the criteria to evaluate the performance, classify enterprises according to the principle that contributions and favors that affect the performance of any year are excluded when assessing the performance of the enterprises that year.
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