Rights and Obligations of the Northern Food Corporation in Production and Business

Article 20 of the Charter on the Organization and Operation of the Northern Food Corporation issued together with Decree 01/2018/ND-CP specifies the rights and obligations of the Northern Food Corporation in production and business as follows:

1. Rights in production and business

- Proactively organize production and business according to the plan; organize the management apparatus according to business requirements and ensure effective business operations;- Engage in business sectors, trades, and fields stipulated in Clause 3, Article 4 of Decree 01/2018/ND-CP and other sectors, trades according to the decision of the owner, expand the scale of business according to market capacity and demand domestically and internationally in accordance with the provisions of the law;- Seek markets, customers domestically and internationally, and sign contracts; decide on the coordination of resources, business cooperation of the Corporation and other enterprises according to market requirements, in compliance with the provisions of the law;- Decide on buying and selling prices of products and services, except for public utility products and services and those priced by the State;- Decide on the use of the Corporation's capital and assets for joint ventures, associations, capital contribution to other enterprises; lease, buy a part of, or the entire company domestically and internationally in accordance with the provisions of the law;- Organize bidder selection according to the legal provisions on bidding;- Decide on investing in the establishment, reorganization, dissolution, ownership conversion of subsidiaries that are one-member limited liability companies after receiving the Prime Minister’s approval on the policy. Establish, reorganize, dissolve subordinate units of the Corporation domestically and internationally according to the provisions of the law;- Together with other investors, establish new subsidiaries or associate companies domestically or internationally in the form of limited liability companies, joint stock companies, or foreign-invested companies after obtaining approval from the Ministry of Agriculture and Rural Development as stipulated by law;- Decide on capital raising, investment, construction, buying, and selling fixed assets, investment projects outside the Corporation according to the provisions of Articles 23, 24, 28, and 29 of the Law on Management and Use of State Capital Invested in Production and Business in Enterprises;- Decide on plans for raising capital, investment projects, construction, purchase, and sale of fixed assets within authority;- Recruit, sign labor contracts; arrange, use, train, reward, discipline, terminate labor contracts; choose the forms of wages, bonuses for employees based on the business efficiency and the provisions of the law;- Develop, issue, and apply standards, processes, economic-technical norms, labor norms, wage unit price, and other costs based on ensuring business efficiency and compliance with the provisions of the law;- Have other production and business rights according to market demands and in accordance with the provisions of the law.

2. Obligations in production and business

- Register business and conduct business in the registered industries and trades; ensure product and service quality performed by the Corporation according to registered standards;- Develop development strategies, long-term plans, annual plans, investment plans, and business plans suitable to market demands and State-assigned objectives and tasks;- Organize and implement measures to ensure effective production and business operations; participate in stabilizing food prices in the domestic market, contributing to ensuring national food security under the regulations of the Government of Vietnam;- Innovate, modernize technology, and management methods to enhance efficiency and competitiveness;- Comply with State regulations related to the production and business activities of the Corporation concerning national defense, national security, social order and safety, environmental protection, and cultural heritage conservation;- Be subject to supervision by the owner in the implementation of salary scale regulations, salary unit price, salary policies for managers and employees;- Execute investment projects, purchase, sale, lease, and rental of assets, capital raising contracts of the Corporation according to the approved policies and legal regulations;- Implement statistical reporting policies as stipulated; periodically report on the operation and financial information of the Corporation to competent State agencies as prescribed by law, and be responsible for the accuracy of the report;- Be subject to inspections, audits, and controls by the owner; comply with inspection regulations of competent authorities as prescribed by law;- Be responsible to the owner for the use of capital to invest in the establishment of subsidiaries and associate companies;- Ensure the rights and interests of employees, the right to participate in managing the Corporation by employees as prescribed by law;- Perform other obligations as prescribed by law and assigned by the State.

See more related content at: Decree 01/2018/ND-CP effective January 3, 2018.

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