Classifying enterprises as a basis for establishing a Reward and Welfare Fund

The Government has issued Decree No. 365/2025/ND-CP on supervision, inspection, evaluation, classification, reporting and disclosure of information in the management and investment of state capital in enterprises.

According to regulations, the results of the enterprise assessment are the basis for classifying enterprises.

Results of classifying enterprises as a basis for setting up a Reward and Welfare Fund for enterprises; evaluating the representative of the direct owner, the controller; considering investing state capital to supplement charter capital for enterprises.

The Decree specifically regulates the assessment and classification of enterprises in which the State holds 100% of the charter capital.

Based on the field of operation, expertise, and production and business characteristics of each enterprise, the owner's representative agency assigns basic targets to evaluate the enterprise, including:

Target 1: Total revenue;

Target 2: Profit after tax;

Target 3: After-tax profit margin on equity (ROE);

chi tieu 4: Value of implementation volume or disbursement value for investment projects with enterprises as the governing bodies according to the Law on Public Investment; investment amount, investment project considered and approved by the owner's representative agency according to regulations;

Target 5: Perform assigned tasks.

The implementation of the task of providing public products and services assigned by the State, ordering; performing political, defense and security tasks assigned by competent authorities.

5 bases for evaluating and classifying enterprises include:

1. The level of task implementation and targets are assigned annually.

2. The audited annual financial statements of the parent company.

3. Results of supervision and inspection of state capital management and investment activities in enterprises.

4. The overall operational efficiency of the enterprise is considered to eliminate impacts according to regulations.

5. The arising issues affect the results of the implementation of the production and business plan and development investment of enterprises.

The Decree stipulates that the owner's representative agency assigns assessment and classification targets to the parent company in accordance with the field of operation, majorities, production and business characteristics of each enterprise, strategic tasks or tasks assigned in the implementation year.

For enterprises operating not for profit, the owner's representative agency shall consider and decide not to assign targets 2 and 3 to suit the specific activities of the enterprise; based on the assigned targets to conduct the assessment and classification of enterprises.

The assessment of enterprises is based on comparing tasks and targets assigned by the owner's representative agency with implementation results.

For targets 1, 2 and 3: Enterprises with implementation results equal to or higher than the assigned targets are assessed as Dat.

With targets 4: Enterprises that complete 90% or more of the value of the implementation volume or the value of investment disbursement according to the assigned targets are assessed as Dat.

With target 5: Enterprises that complete assigned targets on output, product or service quality to ensure the prescribed standards are evaluated as Dat. The implementation of political, defense and security tasks is assessed by the owner's representative agency as Dat or not Dat.

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