Directive 26/CT-TTg promoting international economic integration in effective manner

THE PRIME MINISTER

Directive No. 26/CT-TTg dated September 04, 2018 of the Prime Minister on promoting international economic integration in a more effective manner

Following the Communist Party’s guidelines “take full use of internal and external sources and proactively promote international economic integration for fast, effective and sustainable development”, the 10th National Congress of the Communist Party set out the guidelines “proactively promote international economic integration while expanding international cooperation in other fields”; the 12th National Congress of the Communist Party set out the guidelines “expand and strengthen external relations; take advantage of opportunities, overcome challenges and effectively promote international integration in the new context; continue to increase the nation’s profile and prestige in the international arena”.

In the spirit of the Resolution No. 22-NQ/TW dated April 10, 2013 of the Politburo (the Resolution 22) on international integration, the Government introduces an action program and establishes a National Steering Committee for international integration, including Inter-agency Steering Committees for international integration that involves politics, security, national defense, culture, society, science, technology, education and training;

Effectively implementing the Resolution No. 06-NQ/TW dated November 05, 2016 of the fourth plenary of the 12th-tenure of the Central Committee and Government’s Resolution No. 38/NQ-CP dated April 25, 2017 introducing the action program for effective international economic integration and maintenance of socio-political stability in the context when Vietnam accedes to new-generation free trade agreements;

The next years will see significant changes to the country’s development. Globalization and scientific and technical advances of the fourth technology revolution have exerted a profound effect on global economic restructuring. There has been a growing tendency towards multi-level cooperation in economy, trade and investment and infrastructure connection. In addition, there have been new cooperation methods, financial - monetary institutions, new-generation bilateral and multilateral trade agreements. This requires more efforts to proactively speed up international integration in a comprehensive manner, especially international economic integration in a more effective manner in order to grasp opportunities, overcome challenges and serve sustainable development and protection of national sovereignty and security.

In order to follow the guidelines: Promote international economic integration in a more effective manner, from now to 2021, the Prime Minister hereby gives the following instructions:

I. GENERAL ORIENTATIONS

1. Keep promoting international cooperation in a profound and comprehensive manner with a focus on economic integration and facilitate economic integration in case the integration involves other fields.

2. Promote international economic integration to improve the legal framework and stimulate economic growth and development. Accelerate economic restructuring and innovate growth model in association with sustainable development and improvement of national competitiveness. Emphasize the role of “tectonic Government for development”, gradually improve the legal framework and create a transparent, fair and healthy competitive environment for domestic and foreign enterprises.

3. Realize and implement guidelines, polices and action programs for international economic integration with a focus on improving the capacity for fulfilling commitments on international economic integration. Accordingly, associate the fulfillment of commitments on international economic integration with the process of reviewing, amending and improving domestic legal framework, and harmonizing Vietnam’s laws with international commitments; promote economic restructuring, convert growth models and increase competitiveness; formulate appropriate policies and mechanisms in order to create a favorable business environment for enterprises operating within the territory of Vietnam. Strengthen the supervision and assessment of fulfillment of commitments on international economic integration.

4. Accompany and assist enterprises in the process of integration and fulfillment of commitments on international economic integration, promptly receive enterprises opinions about policies and difficulties that arise in the process of international economic integration, and negotiation on and implementation of free trade agreements (FTA); proactively propose orientations and solutions for resolving difficulties faced by enterprises; take advantage of opportunities from international integration in an effective manner and in conformity with international regulations, practices and standards and multilateral institutions with a view to protecting enterprises’ legitimate interests. Identify enterprises, especially sole proprietorships as key forces in order to facilitate enterprises development.

5. Focus on exploiting internal sources, attempt to overcome challenges and difficulties, and seize opportunities from international integration and fourth technology revolution in order to effectively take advantage of external sources to successfully carry out industrialization and modernization. Call for and encourage the support and cooperation by partners and international community in Vietnam s economic development.

6. Promote the dissemination, provision and update of information about integration and provide detailed guidelines in order for the people and enterprises to acquire a clear understanding thereof, overcome challenges and make full use of opportunities from international economic integration; achieve consistency and strong consensus in the process of integration.

II. SOME SPECIFIC TASKS

1.Inter-agency Steering Committee for international economic integration

- Closely cooperate with relevant ministries and domestic and foreign authorities in considering strategic issues concerning international economic integration to form a basis for advising the Government on the process of formulating policies on international economic integration. Give an initial focus on considering new issues concerning international economic integration such as impacts of participation in new-generation free trade agreements, trend towards the shift of focus on cooperation within the regional and international frameworks such as ASEAN, APEC, ASEM and WTO, impacts of the global economy and politics on Vietnam’s international economic integration, etc.

- Strengthen the connection, coordination and supervision of the fulfillment of commitments on international economic integration by ministries and local governments; associate the formulation of international economic integration strategies with the negotiation on and fulfillment of commitments; cooperate with the Ministry of Industry and Trade, ministries and local governments in promoting the implementation and utilization of effective FTAs. Accordingly, review and complete a mechanism for coordinating the fulfillment of FTA commitments on certain fields in a more effective manner; protect national interests and ensure strict implementation of FTAs; promptly assess issues that arise and propose solutions therefor.

- Closely cooperate with Inter-agency Steering Committees for international integration that involves politics, security, national defense, culture, society, science, technology, education and training in order for the integration to be initiated in a smooth manner according to a master plan which defines the key role of economic integration under the direction of the Prime Minister, thereby contributing to enhancing national synergy and promoting economic development.

2.Ministries, ministerial agencies and Governmental agencies

- Keep realizing and performing the tasks mentioned in the Government’s Resolution No. 49/NQ-CP dated July 10, 2014, Government’s Resolution No. 31/NQ-CP dated May 13, 2014 and Government’s Resolution No. 38/NQ-CP dated April 25, 2017.

- Proactively cooperate in the process of international economic integration, especially in sharing information, formulating programs and plans related to integration to avoid overlapping issues and waste of sources.

- Strengthen review, amendment and completion of legislative documents concerning international economic integration in the fields under the management of ministries; internalize according to an appropriate roadmap that conforms to the international commitments to which Vietnam is a signatory, starting with laws on commerce, investment, intellectual property, technology transfer and labor - trade union to take advantage of opportunities, overcome difficulties and challenges that arise during the participation in and implementation of FTAs, especially new-generation FTAs.

- Keep emphasizing their role and make a positive contribution upon joining international and regional multilateral organizations and forums such as ASEAN, WTO, APEC and ASEM, Mekong Sub-region cooperation mechanisms, etc. in order to increase Vietnam’s profile in the international arena; well prepare for Vietnam s assumption of the role as Chair of ASEAN in 2020; encourage and make full use of technical assistance provided by partners to improve the capacity for macroeconomic management; create a stable and transparent business environment to attract foreign investment and offer business opportunities to domestic and foreign enterprises.

- Promote and innovate methods for disseminating information about international economic integration, shift from dissemination to provision of guidelines for fulfillment of commitments, disseminate information to business associations in a clear and appropriate manner and clearly determine contents and entities taking priority in order for the people and enterprises to sufficiently and promptly obtain information, thereby making full use of opportunities of international economic integration.

In addition to the abovementioned tasks, each ministry shall perform the following tasks:

a) The Ministry of Industry and Trade shall:

- Take charge and cooperate with relevant ministries in formulating an appropriate plan to complete the negotiation on and signature of the remaining FTAs, address existing issues to sign and ratify Vietnam - EU FTA soon; cooperate and promote the completion of procedures for ratifying the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and other signed agreements to bring them into effect soon, thereby offering benefits to the people and enterprises; proactively consider and assess the capacity for participating in FTAs with new partners to seek opportunities for expanding market for Vietnam’s goods and services.

- Cooperate with ministries in assessing impacts of elimination of customs duties according to the ASEAN roadmap on sensitive commodities such as motor vehicles, sugar, oil, gas, etc., forecast impacts of the fulfillment of commitments specified in CPTPP and Vietnam - EU FTA; well prepare for the Vietnam’s trade policy review conducted by WTO, starting with the second review in 2019.

- Cooperate with the Ministry of Foreign Affairs and relevant ministries in preparing for and completing the task of acting as a Chair of ASEAN in 2020.

- Keep upgrading, improving and operating the system for providing early warning of anti-dumping lawsuits against Vietnam s exports; on the one hand, strengthen provision of guidelines and assistance for enterprises in raising awareness about trade remedies, proactively responding to trade barriers on the export market, on the other hand, encourage enterprises and associations to proactively use trade remedies to protect domestically produced commodities and their commodities and prevent trade disputes; assist domestic enterprises in trade remedy lawsuits related to Vietnam’s exports.

- Keep considering, formulating and completing regulations of law on competitiveness in conformity with the trends in development of regional and international policies and laws on competitiveness; gradually enhance the profile and role of and effectiveness in law enforcement by competition management authorities in order to maintain and promote a transparent, fair and healthy competitive environment for domestic enterprises and foreign investors; speed up international cooperation in identifying, investigating, taking actions against and preventing cross-border anti-competitive practices, thereby contributing to enhancing effectiveness in international economic integration.

- Take charge and cooperate with ministries in considering and tackling issues concerning digital economy so as to promote national growth and development and offer enterprises opportunities for innovation, creativity and developing methods for market approach.

- Take charge and cooperate with ministries and local governments in disseminating information using various methods to raise awareness of officials, enterprises and the people about FTA commitments, especially new-generation FTAs to ensure that information is provided in a timely and accessible manner.

b) The Ministry of Foreign Affairs shall:

- Promote research and provide counseling on policies on international integration and international economic integration, especially global economy and politics and areas that affect Vietnam, development trends, initiatives, policies and experience of the countries that fulfill integration commitments in an effective manner.

- Consider and propose solutions for increasing effectiveness in multilateral diplomacy in economy - development with a focus on promoting development of ASEAN Economic Community 2025 and the 2030 Agenda for Sustainable Development, and demonstration of new-generation FTA and WTO commitments. Proactively make contribution to, formulate and shape economic cooperation mechanisms to enhance the profile and protect interests of the nation.

- Promote cooperation with relevant ministries in providing counseling and assistance for local governments and enterprises in renovation, and improvement of effectiveness in promotion of trade with foreign markets. Take charge of conducting political and diplomatic lobbying in order for partners to recognize Vietnam’s market economy soon.

c) The Ministry of Finance shall:

- Demonstrate and fulfill financial integration commitments regarding tax, customs, insurance services, securities, accounting - auditing and other services under its management. Take charge and cooperate with ministries in implementing WTO’s Trade Facilitation Agreement, national single-window system and ASEAN single-window system and trade facilitation.

- Keep promoting administrative reforms targeted at tax and customs in order to contribute to improving business environment and national competitiveness.

d) The Ministry of Science and Technology shall:

- Strengthen the provision of warning and dissemination of technical measures of countries for enterprises and relevant authorities so as to proactively respond to technical barriers; take charge and cooperate with relevant authorities in considering formulating Vietnam’s technical measures in conformity with Vietnam’s commitments on technical barriers to trade specified in new-generation FTAs.

- Formulate and implement mechanisms on encouraging and assisting enterprises and individuals in researching into, transferring, innovating and improving technologies to increase competitiveness of enterprises and products; promote international cooperation in innovation to aid in the process of national technology innovation.

- Increase effectiveness of Vietnam’s network if technical barriers to trade (TBT) and TBT Inter-agency Committee to adopt solutions in conformity with international commitments to assist in raising enterprises awareness about opportunities and challenges of technical barriers so that they are able to approach export markets; discharge its obligation to openly publish TBT and TBT commitments specified in WTO s TBT Agreement and TBT specified in new-generation FTAs.

- Consider, propose and recommend amendments to law on intellectual property in conformity with Vietnam s commitments specified in new-generation FTAs and formulate appropriate mechanisms and policies to minimize negative effects of the fulfillment of international commitments on intellectual property on the achievement of national socio-economic development targets.

dd) The Ministry of Information and Communications shall:

- Take charge and cooperate with relevant ministries in researching into technology platforms and advanced technical infrastructure to serve digital transformation, which is targeted at digital economy.

- Cooperate with the Ministry of Industry and Trade and relevant Ministries in promoting dissemination of information about international economic integration.

e) The Ministry of Justice shall:

- Cooperate with relevant ministries in reviewing and assessing the conformity of commitments on international economic integration with the domestic legal system and their effects thereon, and propose amendments to laws to effectively fulfill international commitments and apply them in a manner that is most beneficial to Vietnam;

- Cooperate with the Ministry of Industry and Trade and relevant ministries in supervising the fulfillment of international economic commitments by Vietnam’s big partners in order to adopt appropriate response solutions in the case of trade disputes.

g) The Ministry of Planning and Investment shall take charge of carrying out a 30-year foreign investment review and assess impacts of foreign investment on the economy in recent times; assess issues that arise during the cooperation between domestic and foreign invested enterprises and propose solutions to such issues.

h) The State Bank of Vietnam shall keep proactively operating monetary policies and banking system in an effective manner that is closely associated with fiscal policies and other policies with a view to curbing inflation and contributing to the stabilization of macro-economy, banking system and financial market, and that are conformable with international commitments, conditions for economic development, money market, legal frameworks and monetary policies of Vietnam in the process of international economic integration.

3.People’s Committees of provinces and central-affiliated cities

- Keep realizing and performing the tasks set forth in the Government’s Resolution No. 49/NQ-CP dated July 10, 2014, Government’s Resolution No. 31/NQ-CP dated May 13, 2014 and Government’s Resolution No. 38/NQ-CP dated April 25, 2017; focus on integrating the execution of action programs into specific plans in conformity with current local conditions;

- Consider introducing solutions for implementing regulations of law and fulfilling commitments on international economic integration within their area in a manner that is in accordance with laws, within their power, procedures and regulatory requirements; provide guidelines and legal assistance for enterprises, especially small and medium-sized enterprises during their business operation in accordance with regulations of law and commitments specified in FTAs.

- Strictly adopt solutions for improving competitiveness within their area, apply information technology to reform of administrative procedures and promote the provision of online public services.

- Cooperate with relevant ministries and authorities in promoting the dissemination of information about international economic integration and providing guidelines for fulfillment of integration commitments for the people and enterprises within their area; encourage more active and broader participation by public sector, business associations, socio-political organizations and the people in learning about and fulfilling international commitments on international economic integration.

4.Vietnam Chamber of Commerce and Industry

- Take charge of providing information, counseling and guidelines for enterprises on trade and investment commitments, especially commitments within the framework of WTO, FTAs and investment protection agreements; assist and encourage enterprise to access market information and take advantage of preferences under FTAs to formulate business plans, overcome challenges and make full use of opportunities from international economic integration.

- Cooperate with representatives of enterprises in joining Governmental agencies and competent regulatory agencies in reviewing laws, internalizing international commitments to which Vietnam is a signatory and fulfilling international investment and trade commitments in a manner that complies with commitments and is most beneficial to Vietnam’s enterprises; express viewpoints on negotiation on FTAs and state advantages and disadvantages during the fulfillment of commitments on international economic integration in order for the Government and ministries to promptly make adjustments to policies and adopt solutions for assisting enterprises to resolve difficulties.

- Encourage enterprises to cooperate in trade promotion, trademark development and response to trade remedies of countries, and cooperate with business associations to assist in protecting legitimate rights of Vietnam s enterprises upon settlement of international trade disputes.

III. IMPLEMENTATION ORGANIZATION

On the basis of orientations for international economic integration and tasks set forth in this Directive, ministries, local governments and enterprises shall, on their own initiative, include them in the annual plan and organize the implementation thereof.

The Office of Inter-agency Steering Committee for international economic integration shall expedite and submit a consolidated report on international economic integration to the Prime Minister and the Deputy Prime Minister - Head of the Inter-agency Steering Committee for international economic integration on an annual basis or upon request./.

The Prime Minitser

Nguyen Xuan Phuc