The business evaluation and classification are mandatory annual activities of state-owned enterprises (“SOEs”), based on various criteria, including “revenue” and “profit”[1]. Since SOEs have been decreased their revenue and profit due to their participation in the prevention and control of the Covid-19 epidemic according to the Government programme, the business assessment and classification of SEs in 2021 is facing many problems. Therefore, in order to solve such problems, as well as to encourage SEs for their volunteer participation, on July 18, 2022, the Government issued Resolution No. 87/NQ-CP on solving difficulties related to the classification for SEs participating in the prevention and control of the Covid-19 epidemic (“Resolution 87”).
Accordingly, the amount that SOEs have contributed to the Covid-19 Vaccine Fund and the prevention and control of the Covid-19 epidemic are excluded from calculation of the criteria for the business operation evaluation and classification, specifically:
Subjects of application: Enterprises in which 100% charter capital is held by the State:
- Single-member limited liability companies – parent companies of economic corporations, incorporations and companies operating in the parent – subsidiary company form which are established under the decision of the Prime Minister, Ministries, Ministry-level agencies and Government agencies, People’s Committees of centrally-affiliated cities and provinces;
- Single-member limited liability companies established under the decision of the managing Ministry or provincial People’s Committee;
- State Capital Investment Corporation.
Scope of application: this exclusion of revenues and expenses is applied to the business assessment of operational efficiency and classification in 2021 and 2022.
Types of revenue and expenses that are considered and excluded when calculating the evaluation criteria:
- Expenditures and contributions for epidemic prevention and control having adequate documents as prescribed in Decree No. 44/2021/ND-CP;
- Revenue reductions due to the exemption/reduction of service prices and fees to support individuals and businesses during the epidemic period according to the general policy of the Government or the direction of the Prime Minister.
Principle of exclusion: Contributions and donations that affect the performance of which year are excluded during the enterprise evaluation and classification of that year.
Resolution 87 took effect from its promulgation date.
[1] Article 28.1 of Decree 87/2015/ND-CP.
Comment: