Criteria for Evaluating the Performance of State-Owned Enterprises

1. Criterion 1: Total Revenue

- Enterprises classified as A when the total actual revenue is equal to or higher than the assigned plan.- Enterprises classified as B when the total actual revenue is lower but at least 90% of the assigned plan.- Enterprises classified as C when the total actual revenue is less than 90% of the assigned plan.

2. Criterion 2: Post-Tax Profit Margin on Equity

- Enterprises classified as A when the post-tax profit margin on equity is equal to or higher than the assigned plan.- Enterprises classified as B when the post-tax profit margin on equity is lower but at least 90% of the assigned plan.- Enterprises classified as C when the post-tax profit margin on equity is less than 90% of the assigned plan.- For enterprises with a planned loss: If the actual loss is lower than the planned loss: Classified as A; If the actual loss is equal to the planned loss: Classified as B; If the actual loss is higher than the planned loss: Classified as C. In cases of additional tasks being performed, these shall be excluded when determining the actual loss compared to the planned loss.

3. Criterion 3: Overdue Payables and Ability to Pay Due Debts

- Enterprises without overdue payables and having a debt payment ability ratio greater than 1: Classified as A;- Enterprises without overdue payables and having a debt payment ability ratio from 0.5 to 1: Classified as B;- Enterprises with overdue payables or having a debt payment ability ratio less than 0.5: Classified as C.- For enterprises operating in specialized fields, the representative agency of the owner's review decides the debt payment ability ratio suitable with the enterprise's operational characteristics to base the classification of this criterion.

4. Criterion 4: Compliance with Current Legal Regulations

- Enterprises without conclusions by competent authorities about violations of mechanisms, policies or have been reminded by competent authorities about the implementation of mechanisms, policies according to the regulations but not to the level of being administratively sanctioned: classified as A.- Enterprises violating one of the following cases shall be classified as B:- Being reminded once by the representative agency of the owner/financial agency in writing about the submission of monitoring reports, enterprise classification reports, financial reports, and other non-conformable reports, not timely complying.- Being administratively sanctioned by competent authorities with a warning or fine (amount of each fine less than 10,000,000 VND) arising in the financial year of enterprise classification evaluation.- Enterprises violating one of the following cases shall be classified as C:- Failing to submit monitoring reports, enterprise classification reports, financial reports, and other reports according to regulations, or submitting non-conformable reports, timely compliant after being reminded twice in writing by the representative agency of the owner/financial agency.- Being administratively sanctioned by competent authorities in forms other than warnings, or fined (amount fined once from 10,000,000 VND or more) in the financial year of enterprise classification evaluation.- Enterprise management conducts violations of the law in the process of executing business tasks leading to criminal prosecution.

5. Criterion 5: Performance of Public Utility Products and Services

- Completing or exceeding the plan in terms of output with product or service quality ensuring defined standards: Classified as A;- Completing at least 90% of the plan in terms of output with product or service quality ensuring defined standards: Classified as B;- Completing less than 90% of the plan in terms of output or product and service quality not ensuring defined standards: Classified as C.

More details can be found in Circular 200/2015/TT-BTC effective from February 01, 2016.

- Ngoc Duyen -

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