What are rights and responsibilities of the Prime Minister regarding State Capital Investment Corporation (SCIC) of Vietnam?

What are rights and responsibilities of the Prime Minister regarding State Capital Investment Corporation (SCIC) of Vietnam?

Pursuant to Article 12 of the organizational and operational charter of state capital investment corporation issued together with the Decree 148/2017/NĐ-CP stipulating rights and responsibilities of the Prime Minister regarding SCIC of Vietnam as follows:

1. The Prime Minister shall be mandated to make his decision on:

a) Reorganization, ownership transition and restructuring of SCIC;

b) SCIC’s charter capital upon incorporation and modification of its charter capital during the business period;

c) Investment policies for investment projects funded by SCIC as stated in clause 1, 2 and 4 of Article 31 in the Investment Law;

d) Policies for overseas investment in projects funded by SCIC as stipulated in clause 2 of Article 54 in the Law on Investment; approval of projects for SCIC’s contribution of capital to joint ventures with foreign investors operating within Vietnam.

dd) Appoint the Chairperson of the Board of Directors and Director General after receiving the request from the Ministry of Finance, verification results from the Ministry of Home Affairs and unanimous collective opinions from the Government’s Party Staff Division.

e) Planning, re-appointment, discharge, dispatch, rotation, dismissal, offer of rewards to, imposition of punishment on, resignation and retirement of the Chairperson of SCIC's Board of Directors after receiving the request from the Ministry of Finance and verification results from the Ministry of Home Affairs.

2. The Prime Minister shall be mandated to approve:

a) Business strategy, proposal, investment and developmental plan to be carried out during the period of 5 years; the general program for reorganization, reform and restructuring of SCIC;

b) Policies for establishment, transition of ownership and restructuring of subsidiaries wholly owned by SCIC; establishment, reorganization and closure of branches, representative offices and dependent accounting units of SCIC.

3. Implement other rights and duties as stipulated by law or under his authority delegated by the Government.

What are rights and responsibilities of the Ministry of Finance regarding State Capital Investment Corporation (SCIC) of Vietnam?

Pursuant to Article 13 of the organizational and operational charter of state capital investment corporation issued together with the Decree 148/2017/NĐ-CP stipulating rights and responsibilities of the Ministry of Finance regarding SCIC of Vietnam as follows:

The Ministry of Finance shall directly supervise SCIC's Board of Directors, shall have rights and responsibilities as follows:

1. Propose the followings to seek the Government’s decision to adopt:

a) SCIC's Charter, amendments and supplements to SCIC’s Charter upon the request of SCIC’s Board of Directors;

b) Change or modification of SCIC’s functions, duties and business mechanism as requested by SCIC’s Board of Directors.

2. Petition the Prime Minister to make his decision on:

a) Reorganization, ownership transition and restructuring of SCIC;

b) Amount of SCIC’s charter capital and adjustment to SCIC’s charter capital;

c) Planning, appointment, re-appointment, discharge, dispatch, rotation, dismissal, offer of rewards to, imposition of punishment on, resignation and retirement of the Chairperson of SCIC's Board of Directors after receiving verification results from the Ministry of Home Affairs;

d) Appointment of SCIC’s Director General after receiving verification results from the Ministry of Home Affairs.

3. Petition the Prime Minister to approve:

a) Business strategy, proposal, investment and developmental plan to be carried out during the period of 05 years; the general program for reorganization, reform and restructuring of SCIC;

b) Policies for establishment, transition of ownership and restructuring of subsidiaries wholly owned by SCIC; establishment, reorganization and closure of branches, representative offices and dependent accounting units of SCIC.

4. Make decisions on the followings:

a) Planning, appointment, re-appointment, dismissal, offer of rewards to or imposition of punishment on any member of the Board of Directors (except the Board’s Chairperson), Comptrollers, and payment of wages, salaries, remunerations and bonuses as well as other benefits to persons who hold office as Comptrollers;

b) Wages, salaries, remunerations, bonuses and other benefits paid to the Board’s Chairperson, members of the Board of Directors and Comptrollers; funds for payment of wages, salaries and remunerations to SCIC's management and Comptrollers;

c) Promulgation of Regulations on financial management over SCIC.

5. Approve policies for:

a) Change in the rates of SCIC’s ownership at enterprises belonging to the list of enterprises whose controlling shares are held by the State (except as prescribed in point b of clause 2 of Article 15 in the Government’s Decree No. 151/2013/ND-CP dated November 1, 2013 on SCIC’s functions, duties and business mechanism), and acceptance of enterprises voluntarily participating as its subsidiaries or affiliates;

b) Mobilization of capital and investment with respect to any SCIC-funded investment project (except those projects specified in point c and d of clause 1 of Article 12 herein) for which the investment fund accounts for more than 25% of its equity specified in the financial statement made in the most recent quarter or year preceding the date of grant of approval of a policy for capital mobilization and investment in such project, or is greater than the amount of capital required for any group-B investment project as provided in the Law on Public Investment;

c) Sale or purchase of fixed assets, investment projects outside of SCIC in which the investment fund accounts for more than 25% of its equity specified in SCIC's financial statement made in the most recent quarter or year preceding the date of grant of the decision on sale and purchase of fixed assets or investment, or is greater than the amount of capital required for any group-B investment project under the provisions of the Law on Public Investment; overseas investment projects under its jurisdiction and projects for investment in other enterprises that serve the purposes of providing public products and utilities.

6. Give its written opinions to SCIC’s Board of Directors to help them:

a) Approve business plans, financial statements, profit distribution and setting aside of profits for funds of SCIC on an annual basis;

b) Make decision on planning, re-appointment, resignation, discharge, secondment, rotation, offer of rewards to, imposition of disciplinary actions on, dismissal and retirement of SCIC’s Director General.

7. Carry out supervision, inspection and assessment of compliance with laws; management, use, preservation and appreciation of capital; implementation of strategies and plans; implementation of the regime for recruitment and hiring of employees; the regime on payment of wages and salaries; give its opinions on supervision, inspection and assessment of other entities accorded authority over investment, use and management of state capital at SCIC.

8. Assess fulfillment of specified objectives, assigned tasks or implementation of permitted business lines, business outcomes and efficiency; assess the extent to which office holders and comptrollers fulfill their management and governance tasks.

9. Implement other rights and duties as stipulated by law or under its authority delegated by the Government or the Prime Minister.

What are rights and responsibilities of the other sectoral ministries regarding State Capital Investment Corporation (SCIC) of Vietnam?

Pursuant to Article 14 of the organizational and operational charter of state capital investment corporation issued together with the Decree 148/2017/NĐ-CP stipulating rights and responsibilities of the other sectoral ministries regarding SCIC of Vietnam as follows:

1. The Ministry of Planning and Investment:

a) Give opinions on SCIC’s objectives, tasks and business lines; corporate reorganization, ownership transition, insolvency and bankruptcy petition of SCIC; proposal for establishment of any subsidiary whose charter capital is wholly owned by SCIC; SCIC’s investment and developmental strategy, plan and business proposal to be carried out for the period of 5 years; general program for restructuring and reform of SCIC; adjustment in SCIC’s charter capital during its business period;

b) Cooperate with the Ministry of Finance in supervising and inspecting implementation of SCIC’s strategies, plans, specified objectives and assigned tasks;

c) Implement other rights and obligations according to law, under its duties assigned and authority delegated by the state owner’s representatives, as well as in compliance with this Charter.

2. The Ministry of Home Affairs:

e) Verify the planning, appointment, re-appointment, dismissal, discharge, dispatch, rotation, offer of rewards to, imposition of punishment on, resignation and retirement of the Chairperson of SCIC's Board of Directors after receiving the request from the Ministry of Finance;

b) Verify the appointment of SCIC’s Director General after receiving the request from the Ministry of Finance;

c) Cooperate with the Ministry of Finance in carrying out inspection and assessment of compliance with regulations of the Party and State on SCIC’s staff affairs;

d) Implement other rights and obligations according to law, under its duties assigned and authority delegated by the state owner’s representatives, as well as in compliance with this Charter.

3. The Ministry of Labor, War Invalids and Social Affairs:

a) Cooperate with the Ministry of Finance in legally carrying out the annual control, inspection and assessment of conformance of SCIC to the regime for recruitment, salaries, bonuses and remunerations;

b) Consult with the Ministry of Finance to make decision to approve the annual payroll, compensation and bonus package applied to SCIC’s office holders;

c) Preside over and cooperate with ministries and sectoral administrations concerned in providing instructions about the regime for wages, salaries, compensation and bonuses applied to employees and office holders provided that such instructions are relevant to the particular nature of SCIC;

d) Implement other rights and obligations according to law, under its duties assigned and authority delegated by the state owner’s representatives, as well as in compliance with this Charter.

Best regards!