DECISION

BY ON THE ESTABLISHMENT OF THE VIETNAM ELECTRIC CORPORATION

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government on the 30th of September, 1992;
In implementation of Decision No. 91-TTg issued on the 7th of March, 1994, by the Prime Minister on the trial establishment of business groups;
At the proposal of the Minister of Energy,

DECIDES:

Article 1.- To establish the Vietnam Electric Corporation on the basis of the rearrangement of the production, distribution and administration units in the electric power industry under the Ministry of Energy.

The Vietnam Electric Corporation is a State-owned business. It has the status of a juridical entity, a seal and a regulation for its organization and operation. It is allowed to open accounts at domestic and foreign banks in accordance with the State regulation, to have autonomy in business, to operate on cost accounting basis. Its member units may conduct their cost accounting, either independent or dependent on allocations from the Corporation.

The Vietnam Electric Corporation is called ELECTRICITY OF VIETNAM in its international transactions. It has its Head Office in Hanoi.

The Vietnam Electric Corporation is under State management of the Ministry of Energy the and the other State agencies provided for by law; it may set up contacts with the Ministries, State Committees and State agencies at central and local levels in the accomplishment of its tasks.

Article 2.- The Vietnam Electric Corporation has the following main tasks:

1. To carry out business in electricity in accordance with the State plan and scheme for development of electricity; to take initiative in business ranging from development planning to preparations for investment, investments in capital construction, survey and designing, installation of facilities, production, transmission and consumption of electric power, import and export and supply of materials and equipment; and to cooperate or enter into joint ventures with economic organizations at home and abroad in accordance with law and State policies.

2. To organize and manage scientific and technological research and technological research and development activities and the training of personnel.

3. To receive capital investment from the State and to preserve and use this capital to carry out the assigned duties of the Corporation in business and development.

Article 3.- The organization of the Vietnam Electric Corporation includes:

1. The Managing Council,

2. The General Director and Deputy General Directors,

3. The specialized departments and boards to assist the General Director,

4. The member companies of the Corporation.

Article 4.- The Managing Council is the body which is empowered by the State to carry out a number of functions of representative of the State ownership over the Corporation.

The President and the other members of the Managing Council shall be appointed by the Prime Minister on the basis of the proposal to be made by the Minister of Energy after consultation with the Minister-Chairman of the Government Commission on Organization and Personnel.

Article 5.-

1. The General Director directs the business activities of the General Corporation in the capacity of the chief executive, is the representative of the juridical capacity of the Corporation in all business contacts and is accountable before law and the Managing Council for the activities of the General Corporation.

2. The General Director shall be appointed by the Prime Minister on the basis of the proposal to be made by the Minister of Energy after consultation with the Minister-Chairman of the Government Commission on Organization and Personnel.

3. The Vice Directors shall be appointed by the Minister of Energy on the basis of the proposal by the General Director after consultation with the Minister-Chairman of the Government Commission on Organization and Personnel.

Article 6.- To assign the Minister of Energy to direct all related preparations to ensure that the Vietnam Electric Corporation can soon stabilize its new organization and start its operation from the 1st of January, 1995, which include the followings:

- To approve the plan for rearrangement of the business and administration units which are operating in the electric industry in order to draw up a list of the member units of the General Corporation;

- To draft the Regulation on Organization and Operation of the General Electric Corporation to be submitted to the Prime Minister for approval during November 1994;

- To complete the assigning and posting of personnel at the General Corporation level during October 1994;

- To complete the allocation of capital to the Corporation before December 1994.

Article 7.- This Decision shall take effect from the date of its signing.

The Minister of Energy, the Ministers, the Heads of the ministerial-level agencies and the agencies attached to the Government, the Presidents of the People's Committees of the provinces and cities directly under the Central Government, and the Managing Council and General Director of the Vietnam Electric Corporation are responsible for the implementation of this Decision.