Directive 32/CT-TTg removal of the barriers, mechanisms, policies on improving the investment efficiency

DIRECTIVE

ON THE REMOVAL OF THE BARRIERS AND THE COMPLETION OF MECHANISMS AND POLICIES ON IMPROVING THE INVESTMENT EFFICIENCY

During the past years, the investment and the raise of investment efficiency has achieved important results, boosted the production and export, raised the science and technology, developed infrastructure, created employments and generate incomes for employees, created new production capacity for the economy, contributed to the achievement of socio-economic development target that was set out. However, the efficiency of investment during the past period is not high, and has not created enough motives to boost the economic growth and macroeconomic stability, one of the main reason is some barriers derived from the economic structure, the system organization and economic management, the input elements of production, and the organization of the State management mechanism have affect the growth of investment efficiency.

Reviewing and discarding the formalities and regulations that obstruct the fulfillment of the requirements for intensifying the attraction and efficient use of investment capital for the economy are the tasks given to Vietnam recently. The Prime Minister request the Ministries, ministerial-level agencies, the agencies affiliated to the Government, or the central agencies, People’s Committees of central-affiliated cities and provinces, the economic corporations, state-owned general companies, shall in one hand organize the implementation of mechanism, policies, and solutions related to investment and the raise of investment efficiency, on the other hand reviewing and discarding the unsuitable regulations that obstruct the attraction and efficient use of investment resources of Vietnam; and implement the following solutions:

1. The Ministry of Planning and Investment shall lead and cooperate with other Ministries, agencies and local authorities in:

a) Summarizing and assessing the implementation of the 10^thCentral Resolution 6, on the completing the market economy during the integration into the world s economy, and send report to the Government in Q4 2013.

b) For the projects of investment funded by the State budget, Government bonds, and national target programs:

- Strictly and thoroughly implement the Prime Minister’s Directive No.1792/CT-TTgdated October 15, 2011 of the Prime Minister on enhancing the management of capital from the State budget and Government bonds, the relevant mechanisms, policies, and regulations during the allocation and use of the State budget and Government bonds, The National target programs of Ministries, agencies, and local authorities in mid-term investment plans and annual plans.

- Review the list of National infrastructure projects; compile a list and priority of the key national infrastructure projects that must be finished soon, including the routes that connect key economic regions, arterial routes, airports, ports, and railways that are important for international economic integration; and submit them to the Government in Q2 2013.

- Prioritize allocating central budget for investing in national strategic projects, and the economic regions with low profit or without profit.

- Formulate a system of criteria for assessing the investment efficiency of the State as the basis for the annual assessment of the efficiency of the State investment in each locality and territory, and submit it to the Government in Q2 2013.

- Strictly implement the sanctions during the supervision, assessment, and finalizing constructions in order to promptly detect and stop the construction built inconsistently with the design, not ensuring the material quality, not ensuring the construction and installation load prescribed in the design.

- Establish a national communication system with a electronic database, and a national information network about the State’s projects of investment.

c) Cooperating with other Ministries, agencies, and local authorities in strictly implementing the Prime Minister’s Directive No.1617/CT-TTgdated September 19^th2011, on enhancing and reorganizing the management of foreign investment in the future, and concentrate on the following tasks:

- Cooperate with other Ministries, agencies, and local authorities in reviewing and removing the barriers to foreign investment in some services industries that Vietnam is demanding; formulate technical standards in accordance with international practice in order to limit the projects in which the investment is not encouraged.

- Study and provide a regime for investment incentives that is attractive and competitive in order to attract widespread projects that greatly contribute to the economy and society, participate in the global value chain of multinational companies at a higher level, facilitate the establishment and development industrial clusters.

d) Studying and completing the relevant law documents in order to rectify the irrationality in the investment management decentralization by improving the autonomy of local authorities, attaching the responsibility and authority of local authorities; enhancing the inspection and supervision of central agencies, avoiding scattered superficial decentralization, ensure the uniform and effective State management.

dd) Completing the standards and criteria for some products (such as minerals); for machinery, equipment, and the environment in some sectors and industries (minerals, food processing, cement, iron and steel…); for investment rate on lad area, applicable to projects that use plenty of land (such as urban area, recreation areas, golf course…) as the basis for issuing the Investment certificate. e) Quickly compiling and submitting the Decree on the List of industries and localities eligible for investment incentives, applicable to the subjects eligible for investment incentives.

g) Boosting the experiment in Public-Private Partnership (PPP) in accordance with the Prime Minister’s Decision No.71/2010/QĐ-TTgdated November 09^th2010, promulgating the Regulation on the experiment in the Public-Private Partnership; experimenting the mechanism for the financialization of land resources; formulating a roadmap for increasing the fee for infrastructure towards sufficiently recovering the investment in order to encourage the investment in infrastructure.

h) Reviewing and assessing the implementation of the Government s Decree No.113/2009/NĐ-CPdated December 15^th2009 on supervising and assessing investment, suggesting measures and policies of enhancing the inspection, supervision of projects of investment, especially slow projects or behind-schedule projects.

I) Taking appropriate measures to raise the construction quality, ensuring the implementation of plannings, firstable the overall planning for socio-economic development, planning for land use and urban planning; carrying out inspection and supervision of the consistency to the approved planning; avoid revising the approved planning, especially urban planning.

2. The Ministry of Finance shalllead and cooperate with other Ministries, agencies and local authorities in:

a) Summarizing, assessing and suggesting solutions for mobilizing and using the revenue from land, natural resources, public assets, especially land, and sending report to the Prime Minister in Q2 2013.

b) Enhancing the inspection and supervision of the financial conditions of enterprises, ensuring the financial discipline, and making the financial system of enterprises healthy.

3. The State bank of Vietnamshall lead and cooperate with Ministries, agencies and local authorities in:

a) Boost the implementation of the Prime Minister’s Decision No.105/2007/QĐ-TTgdated July 13^th2007, approving the national orientation of policy on finance and housing by 2020 towards actualizing the secondary mortgage system.

b) Studying and completing the mechanism and policy on credit applicable to direct foreign projects of investment, focusing on the criteria and mechanism for inspecting and supervising the total loan at home and overseas of foreign-invested enterprises corresponding to the investment capital of enterprises.

4. The State bank of Vietnam, the Ministry of Planning and Investment, the Ministry of Finance, relevant Ministries and agencies shall implement the Prime Minister’s Decision No.1601/QĐ-TTgdated October 29^th2010 of the Prime Minister, approving the Scheme for raising the efficiency of the management of foreign investment in Vietnam.

5. The Ministry of Construction shall lead and cooperate with other Ministries, agencies, and local authorities in reviewing, amending, and supplementing, or request competent authorities to amend and supplement the mechanism for construction management towards ensuring the convenience, punctuality, and satisfaction of actual demands, and suggest appropriate solutions, specifying the criteria and the list of projects to be executed, and suspended projects; then submit them to the Prime Minister in Q1 2013.

6. The Ministry of Industry and Trade shall lead and cooperate with other Ministries and agencies and local authorities in summarizing and assessing the implementation, reviewing the mechanisms and policies related to the development of enterprises engaged in competitive industries; as the basis for formulating the Scheme for prioritizing the development of enterprises engaged in competitive industries 2013 – 2020, and submit it to the Prime Minister in Q2 2013.

7. The National Committee of International Economic Cooperation shall lead and cooperate with the Ministries, agencies, and local authorities in summarizing and assessing the international economic integration, formulate an Action plan to keep enhancing the international economic integration 2013 – 2020, and submit them to the Prime Minister in 2013.

8. The Ministry of Natural Resources and Environmentshall lead and cooperate with other Ministries, agencies and local authorities in:

a) Reviewing and updating the planning for lad use towards the efficiency use of land to serve the socio-economic development towards the set targets, and submit them to the Prime Minister in Q3 2013.

b) Keeping reviewing and reforming the administrative procedures, especially the procedures for issuing the certificate of land use right, ownership of house and property attached to the house, for seizing land, allocating land, and leasing land for executing projects of investment, facilitating and contributing to the attraction and efficiency of investment.

c) Reviewing the implementation of projects of investment that have been provided with land, seize land from the projects of investment that are slowly executed or not executed as prescribed by law.

9. The Ministry of Internal Affairs shall lead and cooperate with other Ministries, agencies and local authorities in summarizing and assessing the implementation, and suggest the amendment and supplementation of the Government’s Resolution No.08/2004/NQ-CPdated June 30^th2004, on enhancing the decentralization of State management between the Government and local authorities towards clearly determining the tasks, authority and responsibility of each level and each agency. Ensure the uniformity of the Government, raise the activeness and responsibility of local authorities depending on the conditions of each locality, concurrently enhancing the inspection and supervision of central agencies, and submit to the Prime Minister in Q4 2013.

10. The Ministries, agencies, and local authorities shall boost the implementation of the Prime Minister’s Directive No.18/CT-TTgdated May 30^th2012 on the implementation of the Planning for the development of Vietnamese human resources 2011 – 2020, and enhancing the training in accordance with the social development requirements 2011 – 2015 in order to contribute to the attraction and efficiency of investment.

11. People’s Committees of central-affiliated cities and provinces shall review, remove, or request competent authorities to remove the barriers to the raise of investment efficiency in order to create a favorable environment for attracting investment from economic sectors, towards the target of local and national socio-economic development; enhance the cooperation among Ministries and functional agencies in reviewing and removing the barriers to the raise of investment efficiency in accordance with this Directive and other relevant documents.

12. Implementation organization

a) The Ministries, ministerial-level agencies, Governmental agencies, People’s Committees of central-affiliated cities and provinces shall direct and implement this Directive; quarterly send reports on the implementation and the difficulties to the Ministry of Planning and Investment before the 20^thof the last month of the quarter.

b) The Ministry of Planning and Investment shall summarize and monitor the implementation of this Directive of the Ministries, agencies, and local authorities, and send reports to the Prime Minister./