Is Vietnam Insurance Corporation a state-owned enterprise?

Is Vietnam Insurance Corporation a state-owned enterprise? (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Is Vietnam Insurance Corporation a state-owned enterprise?

Vietnam Insurance Corporation is a state-owned enterprise under the Ministry of Finance, with the function of doing business in insurance, reinsurance, financial investment, and other financial services.

Corporations are established under the decision of the Minister of Finance and the authorization of the Prime Minister.

(Article 1 of the Charter of Organization and Operation of Vietnam Insurance Corporation issued together with Decision 197/2003/QD-BTC)

2. Rights of Vietnam Insurance Corporation

Rights of Vietnam Insurance Corporation include:

(1) For capital and assets

- To manage and use capital and assets assigned by the State to do business and realize lawful benefits from such capital and assets.

- To hand over to the Corporation's units the responsibility to manage and use the capital and assets that the Corporation has received from the State; mobilize the assigned capital and assets when necessary, in line with the general development plan of the Corporation.

- To invest, joint venture, associate, contribute share capital, or buy part or all of the assets of other enterprises in accordance with current law.

- To transfer, replace, lease, mortgage, or pledge assets on the principle of capital preservation and development in accordance with the provisions of law and this charter.

(2) For business activities

- To do business in the lines specified in the License for establishment and operation. To search for markets and customers and sign contracts.

- To organize management and business in accordance with the characteristics of the industry, ensure business efficiency, and in accordance with the provisions of law.

- To expand the business scale according to the development and needs of the market.

- To develop and apply rules, terms, and fee schedules for different types of insurance in accordance with the State's regulations on insurance management.

- To transfer reinsurance and receive reinsurance at home and abroad.

- To act as an agent for domestic and foreign insurance organizations on insurance-related issues.

- To decide the specific fee and insurance fee schedule for each customer according to the agreement mechanism for types of voluntary insurance services, decide the fee schedule and financial service fee for each customer.

- To decide on investment projects according to the provisions of the law.

- To decide on the purchase price of products and services to serve business activities.

- To deposit or issue a guarantee letter in necessary cases.

- To participate in or on behalf of domestic and foreign customers (by proxy or subrogation) to resolve disputes in domestic and foreign courts.

- To establish regional offices and customer service centers of the Corporation's units in the domestic area; submit to the Ministry of Finance for permission to establish overseas companies, branches, and representative offices.

- To develop and apply labor norms, wage unit prices, and other cost norms on the basis of ensuring business efficiency and in accordance with the provisions of law.

- To decentralize powers to the Corporation's units in terms of organization, personnel, operations, accounting for business, and investment efficiency within the scope of their assigned competence.

- To hire domestic and foreign experts and consultants to work for or provide services for the Corporation in accordance with the law.

- To invite and receive foreign partners to work. To decide to send employees of the Corporation abroad to work, study, visit, survey, travel, or deal with personal matters in accordance with regulations of competent state agencies; the Chairman of the Board of Directors and the General Director of the Corporation must obtain the permission of the Minister of Finance; other members of the Board of Directors may go abroad as decided by the Chairman of the Board of Directors; the Deputy General Director of the Corporation and other leading positions throughout the Corporation shall be decided by the General Director of the Corporation.

- Other business rights as prescribed by law.

(3) For corporate finance

- To raise capital for business in the following forms: issuing bonds, borrowing capital from organizations and individuals outside the Corporation, borrowing capital from affiliated units with independent accounting, and other forms of capital mobilization as prescribed by law.

The mobilization of capital for business is carried out on the principle of self-responsibility for repayment, ensuring the effective use of mobilized capital without changing the form of ownership.

- To actively use capital for the business activities of the Corporation; may use and manage the Corporation's funds in accordance with law.

- To decide to depreciate fixed assets on the principle that the minimum depreciation rate must cover tangible and intangible depreciation of assets and is not lower than the minimum depreciation rate set by the State.

- To enjoy subsidies, price subsidies, or other preferential regimes of the State when performing insurance services, serving national defense and security, natural disaster prevention, public activities, or providing products and services according to the state's price policy, it is not enough to cover costs.

- To be rewarded for innovation initiatives, improve management and technology, reward labor productivity, save costs, and account for business expenses on the basis of ensuring the business efficiency of the Corporation.

- To enjoy investment or reinvestment incentives according to the State's regulations.

- To refuse and denounce any request to provide resources not prescribed by law by any person or organization, except for voluntary contributions for humanitarian and public purposes.

- To use the remaining profit after fulfilling all obligations towards the State to set aside the development investment fund, reward fund, welfare fund, and other funds as prescribed by law.

(Articles 7, 8, 9 of the Charter of Organization and Operation of Vietnam Insurance Corporation issued together with Decision 197/2003/QD-BTC)

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