Directive 11/CT-TTg on national socio- economic development tasks to 2015

THE PRIME MINISTER

Directive No.11/CT-TTg dated May 21, 2014 of the Prime Minister on solving difficulties and recommendations of enterprises and promoting their production and business development, thus contributing to successfully implementing national socio- economic development tasks to 2015

The 2014 conference between the Prime Minister and enterprises affirmed the business community’s role and efforts in production and business development, thus contributing to the cause of national construction and development; and at the same time recognized that enterprises are facing many difficulties and challenges.

To solve difficulties and recommendations of enterprises and promote their production and business development and improve their operation effectiveness, thus contributing to successfully implementing national socio-economic development tasks to 2015, the Prime Minister instructs:

1. Ministries, ministerial-level agencies, government-attached agencies and provincial-level People’s Committees shall:

a/ Closely direct and implement with practical results the tasks and solutions set out in the Government’s Resolution No. 19/NQ-CP of March 18, 2014, on major tasks and solutions to improve the business environment and national competitiveness and the program of action to develop small- and medium-sized enterprises during five years (2011-2015) promulgated together with the Prime Minister’s Decision No. 1231/QD-TTg of September 7, 2012;

b/ Create and implement mechanisms for close, practical and effective coordination among state management agencies; further step up administrative procedure reform, especially those in the fields of market entry, import and export, access to capital and credit, tax, land, investment, construction, natural resources, environment and labor, so as to create the most favorable conditions for operations of enterprises;

c/ Publicize, and direct the effective implementation of, local socio- economic development master plans and strategies, land use master plans, sectoral development master plans, industrial park and industrial complex master plans, craft village master plans and material zone master plans in association with investment projects, ensuring synchronous combination of business lines and trades in production and services, economic development in association with environmental protection;

d/ Direct the synchronous and focused performance of enterprise development support activities; create linkages among sectors and regions, between small-and large-sized enterprises, ensuring sustainable development; avoid the dispersion of resources and ensure the effectiveness of support activities. Study the transfer of public services which meet prescribed conditions to the Vietnam Chamber of Commerce and Industry for provision in accordance with law and international practices;

dd/ Promptly remove difficulties for enterprises and solve and respond to their recommendations; and report cases beyond its competence to the Prime Minister for consideration and decision.

2. The Ministry of Planning and Investment shall:

a/ Based on work programs, report on the draft Enterprise Law (revised) and draft Investment Law (revised) to the Government for submission to the National Assemble to remove limitations related to the sectors and geographical areas of investment promotion; publicize and synchronize regulations on investment and business conditions and procedures so as to create an equal legal environment for domestic and foreign investors, which is conformable with international practices and ensures the consistent and effective realization of international commitments;

b/ Complete legal formalities so as to early put into operation the Small- and Medium-Sized Enterprise Development Fund established under the Prime Minister’s Decision No. 601/QD-TTg of April 17, 2013, thus increasing the accessibility to credit for small- and medium-sized enterprises;

c/ Supplement and perfect the Scheme on development of industrial complexes and parks in association with development of supporting industries, formation of production association networks and the value chain, and submit it to the Prime Minister in 2014;

d/ Assume the prime responsibility for, and coordinate with the Vietnam Chamber of Commerce and Industry in, further training human resources for enterprises. To attach importance to vocational training for hi-tech sectors and fields in order to change the structure of labor from unskilled to skilled and qualified, meeting the requirements of development in a new period.

Encourage enterprises to establish or associate with vocational training institutions in training and employment.

dd/ Assume the prime responsibility for, and coordinate with ministries, sectors, localities and related agencies in, coordinating and connecting enterprise development support activities nationwide in a synchronous, uniform and effective manner.

3. The Ministry of Finance shall:

a/ In the second quarter of 2014, complete guidelines on corporate income tax incentives, exemption and reduction under the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Corporate Income Tax Law;

b/ In 2014, submit tax support solutions or a clearing payment mechanism applicable to production and business enterprises facing capital difficulties due to inventory and late payment, and reduce fines for their late tax payment;

c/ Promptly guide and organize the implementation of the Prime Minister’s Decision No. 58/2013/QD-TTg of October 15, 2013, promulgating the Regulation on establishment, organization and operation of the credit guarantee fund for small- and medium-sized enterprises, and Decision No. 03/2011/QD-TTg of January 10, 2011, promulgating the Regulation on guarantee for small- and medium-sized enterprises to take out loans at commercial banks;

d/ Further simplify and modernize administrative procedures related to tax (for tax refund, collection of tax arrears, etc.) and customs (electronic customs clearance, assignment of commodity prices and codes, etc.);

dd/ Continue directing the development of the securities market to raise capital for enterprises’ development investment.

4. The State Bank of Vietnam shall:

a/ Further direct credit institutions to proactively approach enterprises to advise how to get loans for effective business and production projects and plans; encourage commercial banks to conduct credit rating of enterprises for increasing unsecured loans and restructuring existing high-interest rate loans;

b/ Provide loans with reasonable interest rates on a pilot basis for the model of linking production with hi-tech application, and linking production with processing of export agricultural products. Facilitate the provision of bank loans in the chain of production-purchase-consumption of products so as to improve credit quality and reduce bad debts of banks;

c/ Expeditiously direct credit institutions to review and improve the allocation of credit for priority sectors, increasing loans for agriculture and support of farmers in processing, sale and export of rice, coffee, rubber, shrimp, fish, fruit, etc.;

d/ Direct commercial banks to promote finance lease so as to support enterprises to increase their production capacity in difficult capital conditions, limit the possible stagnation of capital invested in fixed assets, and quickly renovate their technology;

dd/ Increase staff training, especially for credit officers to improve their credit underwriting qualifications; proactively formulate credit programs for non-state enterprises; and strongly reform lending procedures to facilitate enterprises’ access to loans.

5. The Ministry of Industry and Trade shall:

a/ Intensify market management activities so as to create a fair competitive market for domestic enterprises. To thoroughly deal with fake and poor-quality goods which cause adverse market effects;

b/ Manage, and adopt mechanisms to support the management of, the domestic market so as to help enterprises expand production and business and gradually participate in the global supply chain. Build up technical barriers in conformity with international commitments;

c/ Support the provision of market information for enterprises; guide and support export enterprises to cope with domestic production protection policies of key export markets;

d/ Actively negotiate international trade agreements (AFTA, TPP, etc.) to expand overseas markets, and provide information for enterprises to participate in or consult on the process of negotiation and conclusion.

6. The Ministry of Natural Resources and Environment shall:

a/ In the second quarter of 2014, finalize and submit to the Government the draft decree guiding the implementation of the Land Law (revised), including separate provisions on non-state enterprises’ access to land;

b/ Study and improve regulations on land administration and formulation and publicization of land use master plans and plans to ensure simple and transparent procedures so as to help enterprises access clear land for production and business, address the shortage of production grounds and enhance environmental protection;

c/ Facilitate the development of industrial parks and complexes of appropriate sizes and with land rent rates affordable to enterprises; and support the relocation of polluting enterprises located in residential and urban areas to industrial parks and complexes.

7. The Ministry of Science and Technology shall:

a/ Direct and accelerate the implementation of technology transfer and renewal programs, programs on enhancement of the productivity and quality of products and competitiveness of enterprises;

b/ Speed up the implementation of programs on support, popularization and application of advanced technologies and techniques in enterprises, and promote cooperation and technology sharing between small- and medium- sized enterprises and large or foreign-invested enterprises. Step up the establishment and development of private investment funds and venture investment funds so as to encourage the private sector to invest in science and technology development;

c/ Encourage small- and medium-sized enterprises to participate in programs on sectoral or regional association or development of supporting industries.

8. Enterprises and business associations shall:

a/ Conduct production, business and investment activities and perform their obligations in accordance with law. Proactively contact state management agencies to solve difficulties and recommendations for production and business development. Accelerate the restructuring and reorganization of production and business, intensify the application of science and advanced technologies, and improve their governance capacity, productivity, quality and competitiveness;

b/ Attach importance to building and developing business culture. Properly perform enterprises’ social responsibility, especially in relations with their workers toward mutual benefits. Actively contribute to the society, participate in hunger elimination and poverty reduction and charity programs, thus contributing to ensuring political security and social order and security in localities.

9. The Vietnam Chamber of Commerce and Industry shall:

a/ Develop programs with specific and feasible measures to further raise its operation quality in properly playing the role of a socio-politico- professional organization of the business community, business associations, entrepreneurs and employers in Vietnam under the spirit of the Political Bureau’s Resolution No. 09/NQ-TW of December 9, 2011, on building and bringing into play the role of the contingent of Vietnamese entrepreneurs in the period of accelerated industrialization, modernization and international integration;

b/ Develop and implement supporting programs and projects to enhance competitiveness for enterprises and programs on capacity building for business associations;

c/ Coordinate with the Ministry of Planning and Investment and related ministries, sectors and localities in developing and implementing enterprise support policies;

d/ Coordinate with ministries, sectors, localities, enterprises and business associations in implementing the above tasks;

dd/ Summarize enterprises’ difficulties and recommendations and forward them to state management agencies for settlement; monthly report to the Prime Minister and quarterly report to the Government on the implementation of this Directive.-

The Prime Minister

Nguyen Tan Dung