Chương 2 Luật Doanh nghiệp Nhà nước 1995: Quyền và nghĩa vụ của doanh nghiệp nhà nước

Chapter II

RIGHTS AND OBLIGATIONS OF STATE ENTERPRISES

Section I. RIGHTS OF STATE ENTERPRISES

Article 6.-

1. The State enterprises have the right to management and use of fund, land, natural resources and other resources entrusted by the State as provided for by law, with the aim of achieving business or public service objectives assigned by the State.

2. The State enterprises engaged in business have the right to transfer, lease, rent and mortgage properties under their management, except important equipments and factories which are prescribed by the State, and which require authorization by the competent authorities, on the principle of preservation and development of such funds; for the land and natural resources under the management of the enterprises, law provisions shall apply.

3. The public service State enterprises have the right to transfer, lease,rent and mortgage, the properties under their management, if and when authorized by the competent State management agency.

Article 7.-

1. A business State enterprise has the right to organize its management and business as follows :

a/ To organize its managerial apparatus and its business operations in keeping with the State-assigned objectives and tasks;

b/ To renovate technology and equipment;

c/ To establish branches and representative offices at home and abroad under Government regulations;

d/ To voluntarily join in State corporations, except those of special importance whose membership is to be obtained through State prescriptions;

e/ To do business in such trades as conform with the State-assigned objectives and tasks; to expand the scope of its business in accordance with its own capacity and market needs; to engage in complementary trades with due authorization from the competent State agency.

f/ To select at its own discretion the market; have the right to import and export as prescribed by State regulations;

g/ To decide at its own discretion the buying and selling prices of the products and services, except those products and services of which the State is to decide the prices;

h/ To invest, enter in joint venture, cooperation and contribute equity shares in accordance with law;

i/ To establish and adopt labor quota, material, salary unit price per product unit in the framework of the quotas and unit price established by the State;

j/ To select, hire, appoint, use and train its personnel, and select the forms of payment of wages and bonuses, and have other rights of the employer in accordance with the Labor Code and other laws; have the right to decide the level of salary and bonus of the employees on the basis of the salary unit price per unit product or service cost, and the results of the enterprise's operation.

2. A public service State enterprise has the right to organize its management and business operation as follows:

a/ To exercise the rights prescribed at Points a, b, c, d, g, i and k under Item 1 of this Article;

b/ To use the resources assigned to organize additional businesses consistent with Government regulations, without affecting its main objective and task of providing public services already assigned by the State;

c/ To invest, enter in joint venture, cooperation, contribute equity shares in keeping with law, if and when authorized by the competent State management agency;

d/ To exercise the right of import and export as prescribed by State regulations.

Article 8.-

1. A business State enterprise has the following right to financial management:

a/ It may use the capital and the various funds of the enterprise to meet in time the needs of business operation, on the principle of preservation and restitution of capital;

b/ To mobilize capital on its own initiative to serve business operations, without modifying the form of ownership; to issue bonds as prescribed by law; to mortgage the right to land use together with properties under its management to Vietnamese banks in order to take loans for business purposes as prescribed by law;

c/ To use the depreciation fund of the enterprise; the Government shall provide for the rate of deduction from the depreciation fund, and its use and management.

d/ After fulfilling its obligations towards the State, the enterprise may raise a fund for investment development and other funds as prescribed, and distribute the remaining profit to the personnel in accordance with their individual contribution to the business achievement in the current year, and proportionally to the equity shares. The Government shall make detailed provisions on the system of distribution of after-tax profits mentioned in this Point;

e/ To benefit from the regimes of allowances, price subsidies and other State preferential regimes when the enterprise performs production duties or provides services for defense and security work, for control of natural disasters, or provides public services or products or services required by the State policies, of which it cannot fully cover the production or service costs.

f/ To benefit from the regime of preferential investment or reinvestment as prescribed by State regulations.

2. A public service State enterprise shall exercise the financial management rights stipulated in Points c, d, e and f under Item 1 of this Article and has the following rights :

a/ The right to receive State budgetary allocations yearly, or by specific orders placed by the State which are approved by the competent State agency, relevant to the tasks assigned by the State and pursuant to its plan.

b/ To exercise the right to raise funds and to call for joint venture capital, to mortgage the value of land use right together with the properties under the enterprise's management to Vietnamese banks, in order to take loans for public service operations as prescribed by law, if and when authorized by the competent State agency;

c/ The enterprise shall supply various products or services for which it is entitled to collect fees, and may use such fees as prescribed by the State to support the enterprise's operations.

Article 9.- A State enterprise has the right to reject and denounce all requests for supply of resources not prescribed by law from any individual, agency or organization, except voluntary contribution for humanitarian or public utility purposes.

Section II. OBLIGATIONS OF STATE ENTERPRISES

Article 10.-

1. A State enterprise has the duty to make use effectively, preserve and develop the capital invested into another(other) enterprise (if any); to receive and use effectively the assets, land and other resources assigned to it by the State.

2. A business State enterprise has the obligation to use various resources assigned by the State to achieve its business objectives and special tasks assigned by the State.

3. A public service State enterprise has the obligation to use capital, budgetary allocations and other resources assigned by the State to supply products or provide public services to different target groups, according to a scale of prices or fees prescribed by the State.

Article 11.- The State enterprise has the obligation to manage the following business and public service operations :

1. To register its business and to carry out the business as registered; to be responsible to the State for its activities, and to customers and law for the products it manufactures and the services it provides;

2. To work out its development strategy and production and business plans along the tasks assigned by the State and market needs. The development strategy of business and public service enterprises, and the yearly plan of public service enterprises must be subject to approval by competent State agencies;

3. To renovate and modernize technologies and the mode of management; to use incomes from the transfer and asignment of assets to reinvest, renovate equipment and technologies of the enterprise;

4. To discharge its obligations towards the laborers as prescribed by the Labor Code and ensure participation by the laborers in the management of the enterprise;

5. To comply with State regulations on preservation of resources, environmental protection and on defense and national security;

6. To apply the regime of statistical reporting and periodical reporting as prescribed by the State, and irregular reporting at the request of the representative of the owner; and take responsibility for the accuracy of the reports;

7. To submit to the control by the representative of the owner; to comply with the regulations on inspection by the financial agencies and the other competent State agencies as prescribed by law.

Article 12.-

1. The State enterprise has the obligation to comply with the regime and regulations on management of capital, assets, various funds, and on accountancy, cost-accounting, and also the audit and other regimes established by the State; take responsibility for the accuracy and lawfulness of the financial operations of the enterprise.

2. The State enterprise has the obligation to make public its yearly financial report and other information, with a view to allowing a correct objective assessment of the enterprise's operation. The Government shall issue concrete regulations on the regime of public reporting on the finance and other information of various types of State enterprises.

3. A business State enterprise shall discharge its fiscal obligations and other obligations to the State budget as prescribed by law.

4. A public service State enterprise has the following obligations:

a/ To remit to the budget all revenues coming from fees and others (if any);

b/ If a public service State enterprise also engages in business operations, it must organize a separate accounting, and discharge its fiscal obligations for its business operation as prescribed by law.