Resolution No. 102/NQ-CP dated December 04, 2011 of the Government on the Government’s Regular Meeting - November, 2011

RESOLUTION

THE GOVERNMENT’S REGULAR MEETING – NOVEMBER, 2011

The Government on November 30 and December 1 convened its regular meeting to discuss and decide the following issues:

1. Reports on: the implementation of the socio-economic development plan and state budget for 2011; draft Government’s Resolution on major solutions for the realization of the socio-economic development plan and state budget for 2012; realization of the Government’s October Resolution and Government’s November working program; inspection work, settlement of complaints and denunciations, anti-corruption; and administrative reforms in 2011. The reports were presented by the Minister of Planning and Investment, the Minister- Chairman of the Office of Government, the Government Chief Inspector and the Minster of Home Affairs.

a) Socio-economic performance in the first 11 months

The Government assessed that with drastic, effective and timely instructions and management of the Government and the Prime Minister, the coordination and consensus of the whole political system, people and business circle, the socio- economic performance in the first 11 months has made progress with positive outcomes. Consumer price index (CPI) was on the decline, standing at 0.39% in November and it is estimated at around 18% for the whole year. Budget collection surged highly beyond the preset target; budget overspending was lower than the schedule; public investment was put under tight control and cut down or shifted towards higher efficiency; export turnover went up 34.7% against the same period last year and is forecast to see a three-fold increase against the preset target; trade gap dropped sharply, standing at 10.2% in the reviewed period and was lower than preset target. The balance of payment was improved, the foreign currency market was relatively stable; foreign reserve rate was higher than that of last year. GDP growth rate was forecast at 6% which is relatively high in the context of anti-inflationary period. Industrial sector gained fairly high growth rates; agriculture developed sustainably, making a new output record in spite of negative impacts of natural disasters and flooding. Service sector progressed positively. The cultural and social areas advanced. Social security was secured; living standards of people, especially those in mountainous and island areas, disaster-hit areas were paid due attention. Administrative reform, thrift practice, anti-corruption and settlement of complaints and denunciations were accelerated; national defense was strengthened; political security and social order and safety were guaranteed and diplomatic activities achieved significant outcomes.

Nevertheless, the national economy still contains limitations and weaknesses which need to be addressed. The macro-economy is not firmly stabilized. Inflation and interest rates remain relatively high; the liquidity of the banking system and the whole economy encounter difficulties, bad debt show signs of increasing; demand for foreign currency and pressure on exchange rates climb up at the end of the year. The real estate and securities markets keep quiet. Enterprises face with a mountain of challenges in accessing to capital; inventory goes up. If the problems are not settled, production will slow down. It will adversely affect growth pace and macro-economic stability. Incomplete investment projects would cause wastefulness. Industrial production tends to slow down. Agricultural production was severely affected by natural disaster and flooding. Jobs and living standards of the poor, low-income, unemployed people become a pressing issue; prices of goods and services are inclined to increase at the year-end and on the threshold of the Lunar New Year, causing difficulties for people, production and business.

To fulfill the preset targets and tasks for 2011 and make good preparations for the realization of the socio-economic development plan for 2012, the Government requests ministries, agencies and localities to raise the sense of responsibility, grasp through the Resolutions issued by the Party and National Assembly, strictly observe Government’s instructions and management, especially the Government’s Resolution 11, dated on February 24, 2011; keep a close watch on the situation, focusing on the following tasks:

- The State Bank of Viet Nam is responsible for working with other ministries, agencies and localities to regulate the monetary policy in a tightened and cautious manner; coordinating with the Ministry of Finance and relevant agencies to hamonize the monetary and fiscal policies to rein in inflation, stabilize macro- economy and spur growth.

- The Ministry of Planning and Investment, in collaboration with the Ministry of Finance, other ministries, agencies and localities to strickly and effectively realize Prime Minister’s Instruction 1792/CT-TTg, dated October 15, 2011 on enhancing investment management sourced from the State budget and Government bonds; take measures to extricate difficulties; boost production and business; review and re-arrange the list of State-invested projects in priority order; allocate capital at the beginning of 2012 for key, urgent, effective projects that are possibly accomplished within the year.

- The Ministry of Finance is in charge of working with relevant agencies to strengthen the management of budget collection, prevent losses, strive to fulfill the budget plan for 2011 which had been reported to the National Assembly; increase budget collection, reduce overspending, propose to advance money for urgent sectors like agriculture, rural areas, transport and report it to the Prime Minister for approval; strengthen measures on price control; collaborating with the Ministry of Agriculture and Rural Development to report to the Prime Minister to consider financial assistance for localities to surmount consequences of disasters and flooding and stabilize people’s lives.

- The Ministry of Agriculture and Rural Development works with relevant agencies to put forth measures to resolve difficulties for agricultural and fishery production, especially in natural disaster-hit areas; assist the Spring-Winter crop production, ensure agricultural growth; collaborates with localities to boost production and circulation of goods, especially food, foodstuff and vegatables to ensure supply;

- The Ministry of Industry and Trade is responsible for coordinating with ministries and agencies to spur export, tighten import control, reduce trade gap; working with the Ministry of Agriculture and Rural Development, the Ministry of Health and the Ministry of Construction to ensure balance of goods; regulate the distribution system to stabilize prices and the market;

- The Ministry of Home Affairs collaborates with ministries and agencies to review their functions, missions, and structural organization to balance the number of staff and report to the Prime Minister for consideration and approval; amend and supplement Decrees on organization of professional offices under provincial and district-level People’s Committees and submit them to the Government in 01, 2012.

- The Ministry of Public Security works with ministries, agencies and localities to drastically combat crimes, ensure social order and safety; focus on fighting against robbery and organized crimes and cooprates with the Ministry of Information and Communications, other relevant ministries and agencies to take appropriate measures to safeguard the safety and security of the IT system in Party and State organs, especially key ones.

- The Ministry of Transport is in charge of working with the Ministry of Public Security and localities to deploy drastic measures to ease and reduce traffic accidents and congestion. In the short term, the Ministry focuses on fixing road black spots; controling driving-training schools, raise quality of driving-training and correct license granting; impose tough punishments on infringements; quickly propose and issue legal documents to increase punishment levels and competence of fining administrative violations.

- Based on their competence, ministries, agencies and localities center on boosting production and business, ensure the demand-supply balance of goods and services, stabilize prices and markets before and after the Lunar New Year Festival; conduct synchronious policies on social security with focus on people in disaster-hit and poor areas, people of merit, ethnic minority groups, and unemployed laborers; accelerate the administrative reform, anti-corruption; safeguard national sovereignty, political security and social order and safety.

- Ministries, agencies and localities promply review the implementation of the 1992 Constitution in accordance with quality, efficiency and progress ratified by the Prime Minister. The Ministry of Justice works with the Office of the Government to supervise, speed up and instruct the implementation process; the Government’s Steering Committee for Reviewing the Implementation of the 1992

Constitution supervises and assists agencies and localities to fulfill the task, prepares a general report and submits it to the Government.

b) Government’s draft Resolution on major solutions to steer and regulate the socio-economic development plan and state budget forecast for 2012

The Government evaluates that in 2012, the world economy is projected to evolve complicatedly on a par with implicit risks; the domestic economy would encounter both opportunities and challenges. On the basis of the Resolution issued at the 3rd plenary meeting of the 11th Communist Party of Viet Nam Central Committee, the Resolution of the second session of the 13th National Assembly on the socio-economic development plan and state budget for 2012; the full assessment of the implementation of the socio-economic development plan for 2011 and global economic forecast, the draft Resolution should clarify overall goals, socio-economic norms, and key measures; responsibilities of relevant ministries, localities and agencies.

The Government requests the Cabinet members to continue giving comments on the draft Resolution and send the comments to the Ministry of Planning and Investment. The Ministry is in charge of coordinating with the Office of Government to collect the comments, quickly finalize the draft Resolution and submit it to the upcoming national conference of the Government scheduled on December 2011. Ministries, agencies and localities issue and implement specific action plans to realize the Government’s Resolution.

2. The Government discusses and gives comments on the Report on Sustainable Development Orientations for the 2011-2020 period, submitted by the Minister of Planning and Investment.

Over the past time, the Strategic Orientation for Sustainable Development in Viet Nam enshrined in the Prime Minister’s Decision No. 153/2004/QĐ-TTg, dated on August 17, 2004 was put under implementation. Besides positive outcomes, there are still limitations and shortcomings regarding institution, coordination, and assement of sustainable growth. To surmount these limitations, it is necessary to issue the Viet Nam Sustainable Development Strategy for the 2011-2020 period.

On the basis of the Report on Sustainable Development Orientations for the

2011-2020 period and comments collected at the meeting, the Ministry of Planning and Investment is in charge of working with the Office of Government and relevant agencies to quickly finanlize the Viet Nam Sustainable Development Strategy for the 2011-2020 period, supplement goals, supervision and assessement criteria, and clarify priority orientations in favor of sustainable development in three pillars: economy, society and environment and submit it to the Prime Minister for consideration.

3. The Government discusses and gives comments on the projects on: investment restructuring; SOEs restructuring, overall scheme on SOEs restructuring for the 2011-2015 with vision to 2020; credit organization restructuring for the 2011-2015 period, presented by the Minister of Planning and Investment, the Minister of Finance, the Steering Committee for SOEs Renovation and Development and the Governor of the State Bank of Viet Nam.

The Government affirms the goal to restructure investment in order to reduce public investment ratio, mobilize other resources of different economic sectors for infrastructure development, raise investment efficiency, narrow development gaps among regions accross the country, contribute to improve and better people’s living standards; the objective of SOEs Restructuring Project, particularly State-owned corporations and groups is to better their performance. The restructuring of credit organizations targets to raise their performance towards healthy development, increase in the number of credit organizations with better quality, transparent management, gradual enhancement of financial potentials and competitiveness and in accordance with international practices.

- The Ministry of Planning and Investment, the Ministry of Finance and the Steering Committee for SOEs Renovation and Development, and the State Bank of Viet Nam are assigned to work with relevant agencies to collect the Cabinet members’ comments and then finalize the above-mentioned projects which would clearly define overall goals, requirements, orientations and key solutions. The SOEs Restructuring Project must cover specific options on SOEs restructuring for the 2011-2015 period towards 2020, and it must be submitted to the Prime Minister before December 15, 2011.

- Right after receiving comments from the Prime Minister, the Ministry of Finance and the State Bank of Viet Nam finalize the SOEs Restructuring Project and the Credit Organization Restructuring Project and submit these documents to the Political Bureau ahead of December 20, 2011.

- The Ministry of Planning and Investment, in collaboration with the Ministry of Finance and the State Bank of Viet Nam, synthesizes the projects to produce an overall Project on economic restructuring on a par with the renovation of growth model and submit it to the Government before reporting to the National Assembly./.