Resolution No. 01/2006/NQ-CP dated January 16, 2006 of the Government on major measures to guide and direct the implementation of the socio-economic development and state budget plan in 2006

RESOLUTION

ON MAJOR MEASURES TO GUIDE AND DIRECT THE IMPLEMENTATION OF THE SOCIO-ECONOMIC DEVELOPMENT AND STATE BUDGET PLAN IN 2006

2006 is the first year of the 5-year socio-economic development plan (2006-2010). In 2006, positive factors of the year 2005 and the 5-year plan (2001-2005) will have to be brought into full play; at the same time, shortcomings in direction and management will have to be efficiently restricted and overcome in order to maintain high economic growth rate, to create new changes in the quality of growth and competitiveness of the economy, to enhance the capacity to maintain big balances of the economy. These will help create necessary factors and conditions for realizing the objectives and tasks of the 5-year plan (2006 2010).

In addition to guiding and managing the comprehensive implementation of 2006 tasks, the Government will focus on some focal tasks as follows:

I. TO CONTINUE TO IMPROVE THE INVESTMENT AND BUSINESS; TO MAINTAIN HIGH ECONOMIC GROWTH RATE ADN IMPROVE THE QUALITY AND EFFICIENCY OF ECONOMIC GROWTH RATE

A. To speed up the development of institutions and perfection of legal environment for socio-economic activities

1. To speed up the progress and improve the quality of developing normative legal documents; to maintain the completion progress of the Program to develop laws, ordinances 2006 of the National Assembly, the Working agenda of the Government, Action plans of the Government to implement the Law on the fight against corruption, the Law on thrift practising and anti-profligacy and things mentioned at the appendix attached to this resolution.

To vigorously improve the modality to develop and issue legal documents; to ensure that all necessary documents guiding the detailed implementation of laws, ordinances approved by the National Assembly, the Standing Committee of the National Assembly in 2005 will be issued in the first six months of 2006.

In law and ordinance projects in the 2006 Program, it should be clearly stipulated which articles need guiding documents of the Government and that these guiding documents need to be submitted together with law, ordinance projects to the Government for consideration and issuance. The Office of the Government can return law and ordinance projects that lack draft guiding documents and can request agencies that are in charge of drafting law, ordinance projects as well as guiding documents of the Government to strictly implement these stipulations.  

2. Right in the beginning of 2006, Ministries, local authorities at all levels have to review all documents issued by them to immediately abolish documents and stipulations that are contrary to guidelines, policies of the Party and State or that are not issued in accordance with their mandate; to revise stipulations that are no longer applicable and cause difficulties and hinder business operation and production of the people and enterprises.

3. Heads of agencies have to be mainly accountable for the development and organization of the implementation of normative legal documents and socio-economic development policies of the State at their units.

4. The examination and control of the implementation of normative legal documents, guidelines, and policies will be intensified; shortcomings and obstacles will be opportunely identified to have remedial solutions.

B. To build up and develop all kinds of markets synchronously

1. To study the revision and issuance of new and synchronous mechanisms, policies to create more favorable conditions for the development of capital, labor and real estate markets.

2. To speed up restructuring state commercial banks, joint-stock commercial banks and other credit organizations; to successfully arrange the operation of credit and monetary markets.

3. To improve the effectiveness and efficiency of the operation of state management agencies in charge of intellectual property in order to ensure the implementation effectiveness of the Law on intellectual property; to build up and develop technological transaction centers in big economic zones, Ha Noi, Ho Chi Minh and Da Nang first and then move forward to establish the National Technological Transaction Center; to speed up the implementation of the project to develop the technological market together with the implementation of autonomy and accountability mechanisms of public scientific and technological organizations.

C. To continue to improve investment, business environment; to improve the quality of development and competitiveness of the economy

1. To implement policies and measures in order to improve capacity and competitiveness of enterprises, assistance to small and medium enterprises; to publish administrative processes, procedures to opportunely treating obstacles of enterprises; to realize the roadmap to apply one-price mechanism; to continue to expand investment fields and diversify foreign investment forms in line with the Investment Law and the process of international economic integration.

2. To perfect corporate finance policies towards equality, stability, transparency for all kinds of enterprises; to overcome the situation in which state monopoly is transformed into enterprise monopoly; to continue to solve obstacles concerning mechanisms, policies on finance, credit, land...for private enterprises, small and medium enterprises to vigorously develop and to enhance business competitiveness and efficiency.

3. To speed up the arrangement, renovation, equitization of state enterprises in accordance with the overall scheme approved by the Prime Minister. There will be appropriate post-equitization management mechanism for enterprises. Rights and responsibilities of proprietors will be correctly realized. The pilot of economic group will be limited in some important and eligible fields. Economic groups will be piloted with state General corporations acting as key forces and with large participation of all domestic economic sectors and foreign investment in order to be reviewed and evaluated for conclusion.

D. To promote the development of agriculture and rural economy

1. To focus on efficiently implementing the program of crop plants and domestic animals (2006-2010) in order to research, create new varieties by cross-breeding, select and multiply new breeds with high yield and quality. Firstly, efforts will be focused on products that have markets and competitive advantage and the ability to change crops in different economic zones, especially areas frequently stricken by natural calamities and difficulties.

2. To enhance the system of agricultural, forestal and fishery extension from central to grassroots level. Technical, scientific and technological advances will be rapidly transferred to producers.

3. To synchronously implement urgent measures on the prevention and fight against the chicken-flue epidemic in order to avoid a relapse of this epidemic. Livestock and domestic fowl breeding, slaughter and processing institutions will be replanned and reorganized and concentrated with close control on veterinary and foodstuff safety and sanitation.

4. Different kinds of forests will be replanned towards a decrease in the area of protective and special forests, an increase in the area of production forest in order to cater for demand of wood for processing, exports and consumption.

5. To review the planning of developing the aquaculture combined with development and revision of the planning of mainstay and competitive advantage products. To continue to synchronously develop the infrastructure for aquaculture areas in order to maintain sustainable development, minimize environmental pollution and avoid exhausting water sources. The Ministry of Aquaculture will coordinate with localities to provide the people with guidance on new technologies, especially the technologies of clean aqua-farming and using substances replacing forbidden antibiotics. Trade barriers set up by other countries against our aqua-exports will be proactively dealt with.

6. To enhance examination, control and implementation of measures to manage the quality of products, foodstuff safety and sanitation; to improve the quality of market and price forecast; to enhance trade promotion for agricultural, forestal and aqua- products. Efforts will be take to continue to implement the policy encouraging the contract-based consumption of agricultural products in order to create a link between farmers with enterprises, scientists and credit organizations in producing and consuming products.

7. To further reinforce forecast systems of natural calamities and epidemic; support policies for farmers at areas frequently stricken by natural calamities will be successfully realized.

Đ. To develop industries; to build up and manage urban areas

1. Ministries, central agencies, provincial peoples committees will continue to review development strategies and planning of existing industry and sub-industry, particularly auxiliary industries, for supplementation and revision in line with the requirements of the market.

2. To publish the list of industries capable of increasing the competitiveness of domestic products and key industries in order to have appropriate policies encouraging, supporting and attracting investment. Measures to improve techniques, technology and management will be applied in order to reduce cost price and to raise productivity and the quality of products.

3. Localities will continue to arrange the implementation of urban development orientations till 2020; At the same time, efforts will be taken to enhance the effectiveness of state management over the construction, decentralization and rearrangement of the urban system nationwide in order to contribute to the cause of industrialization and modernization. Civilized, modern urban development and infrastructure construction will be accelerated.

E. To vigorously develop service industries

1. To identify control mechanisms on product items that have big imports turn-over and support domestic production in line with current legal stipulations and international practices.

2. To speed up tourism advocacy, advertising and promotion; to train and develop tourism human resources. Immigration procedures for foreign tourists will be simplified. Socialisation of tourism, service will be stepped up. All resources will be attracted to invest in developing tourism. The protection, embellishment of relics, environment and scenery in tourism spots will be integrated into tourism development programs.

3. Measures will be realized to develop the infrastructure of post, telecommunications and to diversify services and to prepare for the vigorous and efficient opening of the post and telecommunications market.

4. Some scientific and technological service delivery activities will be transferred to service delivery mechanisms in line with the market economy; individuals, organizations of all economic sectors will be encouraged and facilitated to provide scientific and technological services.

5. Incentive policies to widely provide and disseminate financial and banking services will be implemented; insurance services will be encouraged in all socio-economic fields.

 II. TO MOBILIZE AND IMPROVE THE EFFICIENCY OF CAPITAL USAGE AND TO CORRECT THE MANGEMENT OF INVESTMENT FOR DEVELOPMENT

A. To mobilize and efficiently use the sources of investment for development

1. Measures will be realized to create a favorable environment for private economic development and foreign investment attraction in order to gradually increase the percentage of these two sectors in the total investment of the society. 

2. Invested infrastructure works will be successfully developed and operated; measures to introduce simplicity, publicity and transparency in administrative procedures in such fields as land, customs, taxation, transport police, market management...will be realized immediately. Obstacles in design, estimate, tender and compensation for site clearance will be successfully dealt with... in order to accelerate the implementation and delivery progress for works, especially those using Official Development Aid (ODA).

3. Capital mobilization for development investment will be further enhanced through releasing education, government and investment bonds; at the same time, these capital sources will be efficiently managed and used; efforts will be taken to study the development of a uniform mechanism in order to set up local funds for investment and development and other investment funds.

4. Ministries, agencies and localities will have to concentrate investment capital of the 2006 plan for important works and projects, especially irrigation works, multi-purpose works (flood control, generating electricity, irrigation for areas with difficulties); leading and regional hospitals, medial clinics, provincial, district hospitals and projects, works relevant to education, training, vocational training, science and technology. Focus will be given to investing in leading research institutes, high-tech zones, software technology zones, important scientific and technological programs at state level, programs to germinate technologies, technical-economic programs, focal laboratories, national centers for analysis and testing.

B. To improve the efficiency and correct and renovate the management of investment for development

1. The situation in which investment is asynchronous, investment efficiency is not carefully calculated and big waste is brought about will be stopped; the compartmentalization in investment for construction will be overcome. There will be concrete stipulations to create conditions for the Peoples Councils and community to participate in monitoring the implementation of infrastructure works at their localities. 

2. Efforts will be taken to enhance the review, revision of overall planning of economic zones, focal economic zones, economic corridors, special economic zones, overall socio-economic planning of provinces, cities. There will be measures to solve difficulties of projects group A and important projects that are being slowly implemented.

3. The Land law will be efficiently implemented; efforts will be taken to closely manage and guide the successful implementation of land use planning and plans that have been approved by competent levels; the transformation of 2-crop rice-producing land that already has complete irrigation works and infrastructure into non-agricultural land will be limited to the minimum; efforts will be focused on site clearance and development of infrastructure in industrial zones and urban areas; procedures relevant to land assignment, rent and other transactions as to land use rights and assets tied to land will be rapidly and advantageously treated.

4. The regulations on the management of state-funded investment will be strictly implemented. Responsibility of the person making the decisions and evaluating investment projects will be enhanced. The quality of management of construction investment, monitoring and investment evaluation of line Ministries and localities in stages ranging from project formulation, project approval, investment preparation to investment implementation will be improved. From 2006, all completed investment projects will have to be audited before drawing the balance sheet.

III. MANAGEMENT OF FINANCE-MONETARY POLICIES

1. Ministries, agencies and localities will be in a hurry to assign specific tasks of 2006 plan to grassroots units in order to start the implementation process right in the beginning of the year. Budget estimate of 2006 will be made public in accordance with legal stipulations.

2. Guidance will be enhanced on revenue collection for state budget, anti-smuggling, tax evasion and budget debt collection ; tax violations will be resolutely, strictly and clearly treated; efforts will be taken to increase budget revenues by 3% compared to the estimate assigned by the Prime Minister at Decision No. 1194/QĐ-TTg dated November 9th 2005.

3. Ministries, agencies and localities will proactively allocate budgets to implement 2006 salary reform in accordance with resolutions of the National Assembly; investment capital will be focused on efficient projects in transition. Existing debts will be settled and counter-funding capital will be sufficiently allocated for Official development aid projects.

4. Peoples committees of centrally-affiliated province, cities will focus on guiding the management of land, the issuance of land use right certificates ; tax will be exempted for sea product catching, salt production without being processed and tax will be reduced for business and production units that employ ethnic minority labourers.

5. The monetary and credit policy will be adjusted carefully and flexibly. The management efficiency of the monetary policy of the State Bank of Viet Nam will be renovated and improved. Efforts will be taken to keep the consumer price index of 2006 lower than the economic growth.

6. Flexible exchange rate policy will continue to be implemented. The exchange rate amplitude will be expanded in accordance with the extent to which the financial market is opened in order to facilitate economic development, to encourage exports, control imports and increase foreign currency reserves of the State.

7. The project to develop payment without cash (2006 2010) and vision to 2020 will be rapidly developed and implemented. The progress of modernizing banking activities will be accelerated.

8. Banking inspection and supervision will be renovated comprehensively. The efficiency and quality of banking inspection, supervision will be improved in order to maintain the safety of the whole system. Audit and internal control in credit organizations will be corrected and consolidated. Measures will be applied to improve the quality of credit and control the growth of risk assets in order to prevent the increase in bad debts of credit organizations and to opportunely identify and treat wrongdoings in credit and monetary affairs.

9. The Project to renovate exports credit, development investment credit of the State will be developed and implemented in order to facilitate the economic shift and economic development and to encourage exports; support forms and level have to comply with international commitments. The financial capacity of the bank of social policies will be enhanced in order to satisfy the demand for loans of the poor households identified in accordance with new criteria.

IV. TO BE PROACTIVE AND ACTIVE IN INTERNATIONAL ECONOMIC INTEGRATION

1. Negotiation will be continued for the admission into the World Trade Organization (WTO) to satisfy intermediate and long-term interests of the country. International economic integration, especially the compliance with AFTA and WTO commitment will be briefed thoroughly to state agencies, enterprise community and the entire people; best measures will be proactively and actively implemented to make use of opportunities, rise to challenges and minimize negative impacts of international economic integration and globalization.

2. Schemes of investing in high technology for products, services that have competitive advantage and competitiveness will be selected and applied; economic branches that have high substance of intellect and technology will be developed.

3. Private economic sector will be developed, including both big and small, medium enterprises, with new, dynamic and creative approaches and high socio-economic efficiency in order to improve the efficiency and competitiveness of the economy.

4. Measures to expand the market will be vigorously implemented; exports will be raised towards an increase in the proportion of industrial and processed products in order to improve the values of exports products; concrete measures will be applied to encourage exports, especially of products with high growth rate and value-added. Measures to reorganize production in accordance with the roadmap of reduction in protection and subsidy will be realized.

5. Trade promotion will be stepped up with special attention to big markets such as those of the European Union, the United States, Japan and China and other potential markets; the quality of assistance and guidance for enterprises to implement measures to expand the markets and forecast market prices will be improved.

6. Preparation will be made to realize legitimate protective measures for domestic goods in line with stipulations of the World Trade Organization and international commitments signed by Viet Nam. Macro-level regulatory measures will be proactively worked out to cope with fluctuations in the international market (as to prices, supply-demand).

V. TO SPEED UP SOCIALIZATION OF SOCIAL AND CULTURAL ACTIVITIES

Ministries, agencies and localities will urgently work out measures, plans, programs to radically implement Resolution No. 05/2005/NQ-CP dated April 18^th 2005 of the Government on speeding up socialization of education, public health care, culture, gymnastics and sports. Attention should be paid to some following issues:

1. The mechanism will be reformed from state support to service delivery units to direct state support to beneficiaries in appropriate fields and tasks.  

2. Charges and rates of services will be published at public and private service delivery units; no agencies or individuals can stipulate any rates other than those published.

3. Training structure will be rearranged according to training ranks, specialization and locality. Special attention will be given to Central Highlands, North-west areas, Mekong Delta; training scale will be expanded together with the consolidation of training quality; priorities will be given to industries serving the socio-economic development. The proportion of female pupils at high level of training will be raised; training will be linked with socio-economic development needs.

Resolution No. 14/2005/NQ-CP dated November 2^nd 2005 of the Government on fundamentally and comprehensively renovating graduate training of Viet Nam 2006 - 2020.

4. Measures, roadmaps on studying fee regimes will be researched and worked out in line with the guidelines of education socialization. There will be concrete mechanisms and measures on accommodation for students of universities, colleges, especially pedagogic schools, focal schools and schools in areas with socio-economic difficulties.

Measures and roadmaps on hospital fee regimes will be researched and worked out in line with the guidelines of socialization and development of health insurance.

5. Scientific research programs and contents of Ministries, central agencies and localities will be reviewed; scientific research will be reformed with focus on:

a) Projects that link with application in practical lives; basic scientific research projects.

b) renovation of the methodology to develop national focal scientific tasks towards bringing into full play domestic scientific and technological potential and linking with international scientific and technological development trends in line with international economic integration process.

c) The strategy of training and developing the human resources for science and technology and employing the talented will be researched and developed. Efforts will be taken to develop projects to set up and develop strong scientific and technological collectives inclusive of the contingent of leading scientists, heads of project management units, chief engineers, skillful technicians who have regional and international qualifications and competence, who can complete national scientific and technological tasks; these projects will be combined with the strategies on international scientific and technological integration; the scientific and technological gap between our country and regional, international countries will be bridged soon.

VI. TO CORRECT THE ADMINISTRATIVE APPARATUS; TO PREVENT AND FIGHT AGAINST CORRUPTION; THRIFT-PRACTISING AND ANTI-PROFLIGACY

Measures will be enhanced to correct the administrative apparatus, to prevent and fight against corruption, to practice thrift and fight against profligacy. These activities bear important political significance and will raise the confidence of the people on the Party and State and create the impetus for successful implementation of 2006 tasks.

1. Ministries, agencies and localities will have to develop concrete action plans to implement the Law on the prevention and fight against corruption and the Law on thrift practicing and anti-profligacy.

2. Cadres, civil servants of all central agencies and levels will be adequately briefed on the Law on the prevention and fight against corruption and the Law on thrift practicing and anti-profligacy in order to create changes in the awareness and behaviors at all levels, agencies and society in preventing, fighting against corruption and practicing thrift and fight against profligacy.

3. A central Steering Committee on Corruption prevention and fight will be established; a standing section that work on a full-time basis and assist the Steering Committee in accordance with stipulations of the Law on corruption prevention and fight will also be set up.

4. Levels, agencies and localities have to radically and drastically fight against corruption, profligacy and wrongdoings, especially in land management, construction investment, management of state capital and assets, management of state-owned enterprises, waste in using public assets, guest reception, conferences, meetings, celebrations, ceremonies to receive certificates of merits, working visits, domestic and overseas study tour, procurement and employment of public cars, waste of time and labor...

5. Heads of agencies, units from central to local level have to uphold their individual responsibilities and act as an example in preventing and fighting against corruption, practicing thrift and anti-profligacy; they have to accountable for any incidents of corruption and profligacy in their agencies and units; they have to raise the quality of management, recruitment, employment, training and retraining of civil servants; they have to enhance checking the performance of civil servants in their management scope and to strictly, opportunely treat cadres, civil servants abusing their assigned positions and mandates to harass and trouble citizens and enterprises; they have to remove degraded and corrupted cadres, civil servant from the apparatus in a determined way.

6. Ministries, Ministry-equivalent agencies and Government-affiliated agencies and Peoples Committees of Centrally-affiliated provinces, cities have to consider as one of focal tasks in guidance, management, development and implementation of PAR plans of their agencies and localities.

VII. IMPLEMENTATION ARRANGEMENT

1. Pursuant to this resolution and concrete tasks specified at the Appendix attached, Ministries, agencies and localities urgently develop their Workplan 2006 clearly defining focuses for appropriate guidance and management measures and high efficiency.

2. Ministries, Peoples Committees at all levels need to kickstart the emulation campaign and to opportunely praised good examples to celebrate big festivals in 2006, firstly to celebrate the Party National Congress X and to contribute to the successful implementation of the 5-year socio-economic plan (2006 - 2010) right in the first year.

3. The Government will organize thematic conferences with localities to discuss basic and long-term issues as well as the solution to process widespread pressing issues; at the same time, the government will maintain regular monthly meetings to review the situation and work out measures to accelerate the implementation of state plans and budgets.

4. Every six months, Ministries, agencies and provincial peoples committees have to send reports to the Prime Minister on the implementation status of this resolution. The reports have also to be sent to Ministry of Planning and Investment for synthesis and correct evaluation of the completion extent of each Ministry, agency and locality to be reported to the Government at the Government meeting sessions in June and December 2006./.