Responsibilities for organizing the sale, assignment and conversion of wholly State-owned enterprises in Vietnam

Specifically, according to Article 36 of the Decree No. 128/2014/NĐ-CP of Vietnam’s Government, responsibilities for organizing the sale, assignment and conversion of wholly State-owned enterprises are as follows:

1. The Board of Innovation and Business Development is the agency assisting the Minister, the Chairman of the Provincial People's Committee, the Board of Members of the parent company. Depending on the nature of the business, the form of assignment, sale or conversion of the business and the financial status of the business, the Board of Innovation and Business Development invites more representative members of banks, enterprises, employees in enterprises and related agencies to participate.

2. The Minister, the President of provincial People's Committee, the Members' Council of the parent company shall decide to establish the Innovation Committee at the enterprise and the Steering Committee to receive the transfer of the enterprise to perform the tasks specified in the Decree.

The composition of the Innovation Committee at the enterprise includes: The General Director (Director) or Deputy General Director (Deputy Director) shall act as the Head of the Committee; Chief Accountant is the Standing Member; heads of departments and divisions: Planning, production and business, organizing staff shall act as members and invite the Secretary of the Party Committee (or branch), the President of the grassroots Trade Union or the representative of the Executive Committee of the Trade Union at the immediate superior level of the grassroots where the grassroots trade union has not yet been established are members.

The composition of the Steering Committee for business transfer includes: The General Director or Deputy General Director of the parent company as the Head of the Committee; Chief accountant is a standing member; heads of departments and divisions: Planning, production and business, organization of staff as members.

3. In case the enterprise fails to implement the plan on selling, handing over or transferring the enterprise already approved by the competent authority under the provisions of this Decree, the Company President, Director must be disciplined and the head of the agency competent to decide on the sale or assignment of the enterprise or the Minister, the Chairman of the provincial People's Committee, the Chairman of the Members' Council of the parent company of the transferor and the Chairman of the Members' Council of the parent company of the transferee is jointly responsible in accordance with current regulations.

View more details at the Decree No. 128/2014/NĐ-CP of Vietnam’s Government, effective from March 01, 2015.

Ty Na

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