Resolution No. 10/2011/QH13 dated November 8, 2011 of the National Assembly on the 2011 - 2015 socio-economic development plan

RESOLUTION

ON THE 2011-2015 SOCIO- ECONOMIC DEVELOPMENT PLAN

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THE NATIONAL ASSEMBLY OF THE SOCIALIST REPUBLIC OF VIETNAM

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No.51/2001/QH10;

Considering the reports of the Government, the Supreme People’s Court, the Supreme People’s Procuracy, National Assembly agencies and concerned agencies, and opinions of National Assembly deputies;

RESOLVES:

I. RESULTS OF IMPLEMENTATION OF THE 2006-2010 SOCIO- ECONOMIC DEVELOPMENT PLAN

In the context of impacts of the global financial crisis and economic recession as well as domestic difficulties and weaknesses, with judicious and timely decisions, our entire Party, entire people and entire army have endeavored to overcome many difficulties and challenges, effectively responded to the complicated happenings of the world and domestic economies, achieved may important achievements, maintained a relatively high growth rate, an annual average of 7% of gross domestic products (GDP) in five years and the GDP of 2010 doubling that of 2000. Our country has got out of the underdevelopment state and joined the middle- income group, the people’s life has been continuously improved, the poverty rate has quickly been reduced, the promotion of democracy has recorded progresses and the national great unity bloc has been further consolidated. Most of the millennium goals committed to the international community have been realized. The political and social stability and national defense and security have been firmly preserved, external relations have been broadened, and the profile and prestige of our country in the international arena continue to be elevated.

Nevertheless, due to the complicated happenings in the world and the country, out of 24 targets of the 5-year plan, 10 have not been achieved.

The economic development remains unstable, the quality, effectiveness and competitiveness of the economy remain low, the economic restructuring toward industrialization and modernization is slow, the distribution regime is not truly reasonable, and the rich-poor gap has increased. The market economy institutions, the quality of human resources and infrastructure are still weak points that hinder development. The building of a socialist law- governed state is slow. Potential threats to political and social stability still exist.

The above situation is attributed to the global financial crisis and economic recession as an objective cause, but it should be seen that it is mainly due to the subjective causes, especially limitations and weaknesses in the leadership, direction, management and administration of all levels and sectors.

II. PLAN FOR SOCIO-ECONOMIC DEVELOPMENT IN 2011-2015

In the formulation and implementation of the 2011-2015 socio-economic development plan, our country enjoys fundamental favorable conditions including great achievements of 25 years’ renewal, 10 years’ implementation of the socio-economic development strategy and five years’ implementation of the 2006-2010 plan. In the context of general difficulties and unpredictable complicated developments of the world today, with stable political and social conditions, our country can still bring into play the potential and advantages of a country going behind and currently in the process of industrialization with an agriculture rich in farm produce and export potential; and has favorable conditions for attracting foreign investment and a fast-developing domestic market. It is forecast that in 2012 and following years, the public debt crisis and soaring inflation in many countries will not only slow down the recovery process of the world economy but also threaten to drive the world economy in a new state of recession. Therefore, the process of implementation of the 5-year plan should closely follow the objectives, targets, tasks and solutions set by the XI^thNational Party Congress; and leadership and direction work should be more focused and resolute and appropriate steps should be taken to gradually create potential for achieving the overall objective, targets, three points of breakthrough and 12 orientations of the 2011-2020 socio- economic development strategy.

1. Goals

To achieve fast and sustainable economic development in association with renovating the growth model and restructuring the economy toward raising quality, effectiveness and competitiveness. To ensure social welfare and security and improve the people’s material and spiritual lives. To increase external-relation activities and raise the effectiveness of international integration. To firmly protect national independence, sovereignty and unity and territorial integrity and preserve political security and social order and safety, creating foundations for our country to become basically a modernity-oriented industrial country. During the first two or three years of the plan, to concentrate on realizing the objectives of stabilizing the macro-economy, assuring social security, growing at a reasonable rate and strongly deploying the economic restructuring in connection with renovating the growth model, during the subsequent two or three years to basically complete the economic restructuring for fast and sustainable development and harmony between growth, stability of the macro-economy and social security objectives.

2. Major targets

a/ Economic targets

Gross domestic products (GDP) will increase around 6.5-7% on average in 5 years.

Total investment during 5 years 2011-2015 will account for around 33.5-35% of GDP.

Trade deficit will be incrementally reduced from 2012 and to below 10% of the export value by 2015.

The state budget deficit will be below 4.5% by 2015 (inclusive of also government bonds).

The energy consumption based on GDP will be cut 2.5-3% annually.

Hi-tech products will account for around 30% of the total industrial production; the annual technology renewal rate will reach 13%.

Social productivity by 2015 will increase 29-32% over 2010.

The rate of taxes and charges remitted into the budget will not be higher than 22-23% of GDP a year.

Public debts will account for no more than 65%, the Government’s outstanding debts no more than 50% and national outstanding debts no more than 50% of GDP by 2015.

The consumer price index will increase around 5-7% by 2015.

b/ Social targets

Eight million jobs will be created in 5 years.

The unemployment rate among urban population of working age will be below 4% by 2015.

The rate of trained laborers among total laborers working in the economy will reach 55% by 2015.

The population’s actual income by 2015 will be 2-2.5 times over 2010.

The poverty rate will be reduced in a quick and sustainable manner at an average annual rate of 2%, and 4% in poor districts and extremely disadvantaged communes.

The average housing area will reach 22 m2 of floor per person by 2015, with the average house floor area per person reaching 26 m2 in urban centers.

The population growth rate will be around 1% by 2015.

To achieve 8 medical doctors and 23 patient beds (excluding commune health station beds) per 10,000 people.

c/ Environmental targets

The forest coverage will reach 42-43% by 2015.

The percentage of seriously polluting establishments applying adequate treatment technology will reach 85% by 2015.

3. Other targets

The Government will consider and decide on other economic, social and environmental targets and report achievements to the National Assembly every year.

III. ORIENTATED TASKS AND SOLUTIONS FOR SOCIO- ECONOMIC DEVELOPMENT IN THE 2011-2015 PERIOD

1. To focus on quickly and effectively settling limitations and weaknesses due to subjective causes in leadership, direction, management and administration work of all levels and sectors as pointed out in the reports of the Government, the People’s Supreme Court and the Supreme People’s Procuracy and verification reports of National Assembly agencies.

2. To restructure the economy in connection with renovating the growth model toward higher quality, effectiveness and competitiveness to be synchronously implemented in all sectors and fields nationwide and in each locality, grassroots unit and key product, with long-term visions and according to specific roadmaps. To focus on restructuring the economy in three important sectors, namely restructuring investment, first of all public investment; restructuring the financial market, focusing on the system of commercial banks and financial institutions; and restructuring enterprises, with state business groups and corporations as the center, to prepare conditions right in 2012 so as to make strong, fundamental and markedly effective improvements from 2013 to 2015.

To restructure public investments in the direction of revising regulations on management decentralization, first of all investments from the state budget and government bonds, ensure the principle of allowing investment only in projects for which all prescribed procedures have been completed and sources and levels of funding and capability of balancing funding sources have been clearly identified. To expeditiously determine criteria and priority order serving as the basis for approving or pruning investment projects. Approval of projects with financial supports from the central budget through national target programs, target programs and other targeted supports must be strictly controlled and subject to competent central authorities’ appraisal of funding sources and fund-balancing capability. To ensure requirements of progress, technological level, quality and safety of important national projects and works.

To restructure the financial market, focusing on restructuring the system of commercial banks and financial institutions, renovating and enhancing the effect and effectiveness of the state management of the securities market, the real estate market and the monetary market, particularly the gold and foreign exchange markets, and addressing the problem of polarization; to closely control public debts, non-performing debts of state enterprises; borrowing and repayment of overseas loans, sources of foreign investment capital, especially in the fields of real estate and securities market, and other hot capital sources.

To restructure state business groups and corporations, raise their business administration capacity, publicity and transparency, while adopting policies to create conditions for enterprises of all economic sectors to bring into play internal resources, restructure products and reduce production costs, and increase their production and business effectiveness and competitiveness. To concentrate on developing state enterprises in key sectors of the national economy, mainly in economic and technological areas related to socio-economic infrastructure, public services and macro economy stabilization. To study and perfect mechanisms and policies for Vietnamese enterprises making offshore investment. To clearly separate the mission of social security assurance from business activities of state business groups and corporations.

To restructure industries and sectors and review and rationally adjust economic zones and industrial parks in association with restructuring and connection of regional economies. To quickly develop support industries and added-value services. To increase investment in the development of agricultural production and rural economy; to create vigorous progresses in building a new countryside. To attach importance to consolidating sea dikes, river dikes, pump stations, salinization prevention and flood drainage works, natural disaster prevention and control works, storm-sheltering zones for ships and boats to mitigate natural disaster damage. To further improve mechanisms and policies for and renovate the operation of the collective economy, farm economy and craft villages toward sustainable development. To strongly develop the forest economy in order to both protect and develop forests in combination with renewing the management of forest farms and plantations. To assure 3.812 million hectares of rice cultivation, while adopting peculiar mechanisms and policies to support rice-growing localities and farmers in order to assure national food security, particularly under the impacts of climate change and sea level rise in delta regions, especially the Mekong River delta. To implement orientations, policies and measures to assure food security in association with protecting the ecological environment and assuring energy security, while effectively controlling energy consumption demands. To exploit and rationally use natural resources.

3. To persistently restrain inflation, stabilize the macro-economy and stabilize the purchasing power of the currency. To implement the monetary policy for the primary objective of stabilizing the value of the currency, control to ensure compatibility between the increase of total payment instruments and outstanding credit debts with the economic growth rate, and control the consumer price index rise. To gradually reduce the rate of mobilization of investment capital from bank credit and step up the mobilization of capital through the securities market and other financial institutions.

For the fiscal policy, to effectively restructure budget revenues and expenditures, renew and raise the quality of state budget estimation. To review and adjust the decentralization of the management of investments from state budget funds and government bonds. To study options to incrementally reduce corporate income tax rates; to renovate the policy on revenues from land and real estate business and increase royalty rates.

For the import-export and trade deficit control policy: In 2012-2013, to continue encouraging export and take measures in accordance with World Trade Organization (WTO) regulations to control import and strongly reduce the trade deficit. To continue investment in agricultural products, products of national advantages, and import substitutes and quickly develop support, mechanical engineering and electronics industries. To implement the market price mechanism for electricity, coal and public- service prices in 2013 at the latest. To provide that public procurement and investment must use locally made goods, equipment and machines, and effectively implement the “Vietnamese prioritize use of Vietnamese goods” campaign.

4. To concentrate on implementing the three breakthroughs and 12 strategic socio-economic development orientations during 2011-2020. To basically complete the legal system combined with the reform and perfection of institutions of a socialist-oriented market economy and a socialist law- governed state, focusing on revising and supplementing the 1992 Constitution, revising, supplementing or promulgating laws according to the law- and ordinance-making program of the XIIIth National Assembly.

To further strengthen the Government apparatus and administrations at all levels, and early experiment the municipal administration model. To revise regulations on decentralization of power from the central to local levels; to simplify administrative procedures, primarily in business licensing and registration and tax payment. To vigorously restructure labor to most effectively utilize the golden population structure period, and step up training and retraining of human resources to increase productivity in the entire national economy. To launch and perpetuate a thrift-practicing movement in both production and consumption and raise social awareness and exemplariness among all state officials and civil servants. To tighten order and discipline, promote the fight against corruption, wastefulness and losses, especially in basic construction investments with state funds. To continue renewing the social insurance policy and salary regime for cadres, civil servants, public employees, laborers, pensioners and people with meritorious services.

To review and evaluate transport infrastructure development projects, particularly those in key economic regions, allocating them with adequate investment capital for early completion and operation to bring into play their effectiveness. To quickly develop the urban transport system, especially public transport. To step by step synchronously develop and modernize the infrastructure system in major urban centers in association with re-arranging and re-structuring production and population distribution; to raise the capacity of general services of three major seaports in three regions.

5. To synchronously implement policies and measures for economic development combined with realizing social progress and equality; to attach importance to assuring social security, people’s health care, job generation, income raising, hunger eradication and poverty alleviation and narrowing the gap between the rich and poor; to concentrate on addressing public concerns, especially in ground clearance and compensation for land recovery and negative practices in health, education and training. To mobilize social resources for poverty alleviation work; to take measures for improving the people’s material and spiritual lives, particularly in deep-

lying, remote, mountainous, island, extremely disadvantaged and ethnic minority areas. To properly implement planning work to stabilize population in ethnic minority, mountainous, border and islands areas, and balance residential and production land areas for inhabitants in localities frequently hit by natural disasters.

To conduct an overall review of social security policies, focusing on strengthening ad perfecting the social security network with three contents: employment security, social insurance and health insurance policies and social relief policy. To develop a diversified social insurance system, and expand social insurance and health insurance coverage.

To improve working conditions, reduce labor accidents, occupational diseases and labor disputes and build harmonious, stable and progressive labor relations. To increase health expenditures and concentrate on support for buying health insurance and increasing health insurance card support levels for poor households, households living just below the poverty line and agricultural, forestry, fishery and salt-making groups. To attach importance to preventive health work to reduce the risk of contracting infectious diseases, malnutrition as well as chronic diseases in the community. To consolidate and develop the grassroots healthcare and preventive health network. To rectify and improve the quality of health services. To renovate the hospital charge policy in synchrony with renewing mechanisms for public health services.

6. To fundamentally and comprehensively renovate education and training to raise the quality of human resources, and pay attention to leading, managerial and business administration personnel, scientists, technologists, cultural activists and artists; to improve the quality of education, particularly at tertiary level; to concentrate on shifting from extensive to intensive training, attaching importance to vocational training, and train one million rural laborers annually; to adjust policies on preschool education and education in mountainous areas; to properly carry out socialization of education to meet the learning needs of all people, especially preschool education.

To consolidate and build a healthy, rich and diversified cultural environment, and increase the effectiveness of activities of the cultural institution system at all levels, at the same time to renovate, upgrade and build new modern cultural, art, physical training and sports works.

To continue renewing mechanisms and policies, mobilize resources and increase investment to strongly develop scientific and technological activities, basically renew the mechanism of science and technology management and develop a knowledge-based economy. To pay attention to strongly developing technology research, application and transfer, link science and technology with production in all industries and sectors, and strongly develop the science and technology market.

7. To perfect and raise the effect and effectiveness of policies and laws on natural resources and environmental protection with a view to assuring sustainable development. To strictly implement the process of elaboration, appraisal, approval, examination and supervision of the assessment of environmental impacts of socio-economic development strategies, master plans, policies, programs and projects. To resolutely handle polluting establishments, particularly in economic zones, industrial parks and craft villages. To step up the socialization of environmental protection work.

8. The Government, the People’s Supreme Court and the Supreme People’s Procuracy shall concentrate on elaborating and implementing judicial reform schemes, ensuring quality and progress, and properly provide professional training and retraining for officers, judges, assessors, investigators, procurators, executioners and criminal sentence enforcers. From now to 2013, to basically overcome the shortage of staff to hold judicial titles. Judicial officers must be just, upright and truly exemplary. All violations of judicial officers must be promptly detected and strictly handled. The State shall pay attention to and adopt peculiar regimes and policies toward judicial officers and titles.

To increase investment in physical foundations, equipment, vehicles and funds for activities of public security agencies, procuracies, courts and judgment enforcement agencies.

To further improve the law on the organization and operation of justice agencies, criminal and civil and procedure laws, and laws on legal assistance, corruption prevention and combat, handling of administrative violations, terrorism prevention and combat, and extradition of criminals.

To expand international cooperation relations and perfect laws in order to better meet requirements of mutual legal assistance in civil and criminal fields and crime prevention and fight.

To continue effectively implementing the national program on crime prevention and combat, and strictly handle acts of resisting officers on duty. To resolutely prevent, combat and strictly and effectively handle corruption, and expedite the settlement of major corruption cases. To combine publicity, mobilization and education about the sense of observance of law with the strict handling of violations, create positive changes and by 2015 to prevent and drive back crimes and social evils.

9. To consolidate national defense and security, firmly maintain national independence, sovereignty and unity and territorial integrity, especially on sea areas and islands of the country. To increase the defense and security strength in both potential and disposition, ensuring incremental building of modern physical and technical bases for armed forces. To build up strong defense provinces and cities. To build up the revolutionary people’s army and police which are regular, elite and incrementally modern, with reasonable numbers, integrated quality and high combativeness, build a strong mobilization reserve force and wide militia and self-defense forces.

To proactively detect and stop all plots and activities of sabotage and invoking violence of hostile forces, be ready to cope with non-conventional security threats to firmly preserve political and social stability and assure national security and social order and safety. To concentrate investment in developing infrastructure facilities in border areas in association with distributing population according to planning; to create conditions for socio-economic development combined with consolidating national defense and security in key and crucial regions. To promote publicity and education about national defense and security among the people.

To proactively and actively engage in international integration. To strongly enhance friendly, traditional and strategic cooperative relations with neighboring countries bordering on Vietnam. To step up the settlement of remaining issues related to border and territory, attach importance to the East Sea issue in a satisfactory and balanced manner on the principles of peace, respect for international law and the international and regional codes of conduct. To bring into play and mobilize resources of the overseas

Vietnamese community for national development.

IV. ORGANIZATION OF IMPLEMENTATION

The Government, the Supreme People’s Court and the Supreme People’s Procuracy shall, according to their respective functions and tasks, organize the effective implementation of the Resolution of the National Assembly and, annually, report results to the National Assembly.

The National Assembly Standing Committee, the Ethnic Minorities Council, the National Assembly Committees, National Assembly deputies’ delegations and individual National Assembly deputies shall supervise the implementation of this Resolution.

The Vietnam Fatherland Front Central Committee, Front member organizations and social organizations established under law shall supervise and mobilize the people of alls strata to join in the fruitful implementation of the Resolution of the National Assembly.

The National Assembly appeals the fellow citizens and combatants nationwide and our compatriots abroad to heighten the spirit of patriotic emulation, unity, spare no efforts and seize favorable opportunities and overcome difficulties and challenges to successfully implement the five- year 2011-2015 socio-economic plan.

This Resolution was passed on November 8, 2011, by the XIII^thNational Assembly of the Socialist Republic of Vietnam at its 2nd session.-