Agreement on the Business Performance Evaluation of State-Owned Investment Enterprises
关于国有投资企业经营业绩评估的协议
ຂໍ້ຕົກລົງວ່າດ້ວຍ ການປະເມີນຜົນການດຳເນີນທຸລະກິດ ຂອງວິສາຫະກິດລັດລົງທຶນ
Summary
This regulation governs performance evaluation of state-invested enterprises, with the core being to classify enterprises into four categories based on financial and non-financial indicator scores, and to determine rewards, penalties, and management adjustments accordingly.
Articles
Article ມາດຕາ 1
Article 2 Evaluation of Business Performance of State-Invested Enterprises
Evaluation of business performance is the analysis, research, monitoring, and assessment of the effectiveness of business operations of state-invested enterprises to align with the situation each year, serving as a basis for determining directions to address outstanding issues and difficulties in the business operations of state-invested enterprises. Furthermore, the evaluation will also help state-invested enterprises to disclose information transparently and enhance the accountability of state-invested enterprises in complying with laws and regulations.
Article ມາດຕາ 2
Article 2 Evaluation Methods
The evaluation of business performance of state-invested enterprises includes financial evaluation and non-financial evaluation, using various indicators to score and classify state-invested enterprises, divided into 04 categories according to the scores received as follows:
1) Category 1: Excellent
2) Category 2: Good
3) Category 3: Average
4) Category 4: Weak
1. Financial Evaluation
Financial evaluation is the analysis and research, assessment of financial condition, assessment of business operation efficiency aimed at promoting strengths, finding causes and problems arising in finance to warn and prevent financial risks that may occur to state-invested enterprises. Financial evaluation is divided into 5 groups as follows:
+ Group 1: Capital Mobilization and Capital Maintenance, including the following indicators:
- Debt ratio payable;
- State capital ratio (actual amount of state capital contribution);
- Capital maintenance index.
+ Group 2: Capital Management and Utilization, including the following indicators:
- Investment ratio in current assets;
- Investment ratio in non-current assets;
- Efficiency of investment in each project;
- Efficiency of capital utilization;
- Return on assets ratio;
- Return on state capital ratio;
- Expense ratio;
- Return on operations ratio;
- Return from sale of goods and provision of services ratio;
- Contribution to state budget using capital;
- Retained profit ratio (undistributed profit);
- Net profit to revenue;
- Expense to revenue.
+ Group 3: Debt Settlement and Financial Risk, including the following indicators:
- Debt repayment capacity;
- Current assets to current liabilities ratio;
- Non-current assets to current liabilities ratio;
- Debt to assets ratio;
- Debt to capital ratio.
+ Group 4: Business Growth, including the following indicators:
- Revenue growth rate;
- Expense growth rate;
- Profit growth rate;
- Capital growth rate.
+ Group 5: Reserve Deduction and Obligation Performance, including the following indicators:
- Reserve deduction according to regulations;
- Other reserve deductions;
- Income tax remitted to the state;
- Taxes and duties overdue remitted to the state;
- Exempted taxes and duties;
- Fees and royalties remitted to the state;
- Dividends remitted to the state;
- Outstanding payable debt balance;
- Outstanding loan balance guaranteed by the government;
- Repayment of loans to the state.
2. Non-Financial Evaluation
Non-financial evaluation is the monitoring of compliance with laws and regulations, implementation of political strategic objectives, and implementation of socio-economic strategic objectives assigned by the state, which includes the following:
- Customer base expansion (increase/decrease);
- Compliance with laws and regulations, without being sued or receiving warning letters from the state sector;
- Overdue remittance of tax obligations;
- Overdue remittance of dividends to the state;
- Assignment to produce goods and services (specifically in the public utility sector);
- Social access to the supply of goods and services (specifically in the public utility sector).
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