Supervision of state enterprises in the observance of law

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In order to assist state management agencies and owners in detecting weaknesses in business activities of state enterprises; to identify causes and responsibilities of related agencies, organizations and individuals and handle them according to competence or report to competent persons for consideration and handling and promptly detect loopholes and problems in policies, laws and management mechanisms applicable to state enterprises in order to propose solutions to competent state agencies..on May 20, 2014, the Government issued the Decree No. 49/2014/ND-CP providing the supervision, examination and inspection of state enterprises in the observance of law and owners’ decisions.

The supervision, examination and inspection of state enterprises shall be implemented in the fields as follows: management and use of state capital and assets; financial regime applicable to and financial supervision of enterprises under the Government’s Decree No. 61/2013/ND-CP of June 25, 2013, and guiding documents; reorganization, renewal, and consolidation of the organization and operation, of enterprises; formulation and implementation of development investment strategies, master plans and plans and production and business plans for enterprises; recruitment, management and employment of laborers; assessment, commendation and disciplining of, and salaries, bonuses and other regimes and policies toward, managers, representatives and laborers of enterprises..

Besides, the supervision, examination and inspection of owners’ decisions concerning implementation of approved production and business strategies and plans and development investment plans; public-utility tasks assigned to enterprises; distribution of profits, and setting up and use of funds; increase or decrease of charter capital; borrowing and provision of (domestic and foreign) loans; capital raising; asset liabilities; purchase and sale of valuable assets (accounting for 50% or more of charter capital or as prescribed in the charter); contribution, holding, increase or decrease of capital of enterprises at other enterprises under approved policies….

Within that, the supervision, examination and inspection must comply with law and ensuring objectivity, accuracy, promptness, publicity and transparency; enhance effective coordination between owners, agencies, organizations and individuals assigned with supervision, examination and inspection tasks and other related agencies, organizations and individuals in supervision, examination and inspection work; not impede normal operation of enterprises subjected to supervision, examination and inspection and other related entities and ensure no overlap in the scope, contents, subjects and time frames of examinations and inspections conducted by competent agencies, organizations and persons.

This Decree takes effect on July 10, 2014.