Resolution No. 13/NQ-CP dated May 10, 2012 of the Government on solutions to remove difficulties for production, business and market support

RESOLUTION

ON SOLUTIONS TO REMOVE DIFFICULTIES FOR PRODUCTION, BUSINESS AND MARKET SUPPORT

In the early months of 2012, despite difficulties due to the impact from outside and from right in the country, but thanks to correctly identifying the objectives and deploying, organizing and implementing proactively, positively and effectively the conformable mechanism, policies and measures together with the struggle and efforts of the branches, levels, business community and the whole society, our economy has achieved positive results initially. Inflation has been controlled at a low level, the macro economy is basically stable; social security is guaranteed. However, production and business have met a lot of difficulties; the purchasing power of the market has reduced; the economy has been growing but its growth was lower compared with the same period of 2011. Therefore, concentrating on removing difficulties and creating favorable conditions for business and production associated with support for market development but remaining consistent in the implementation of inflation controlling targets, macroeconomic stability, ensuring social security, gradually implementing the economic restructuring towards the higher quality, efficiency and competitiveness that are the key duties in the direction and operation of the Government to ensure that the implementation shall be achieved at a highest level of the targets of social and economic development set in the year 2012.

The Government requests the Ministers, Heads of ministerial-level agencies, Government-affiliated agencies, Chairman of People s Committees of Central –affiliated provinces and cities under their functions and duties assigned to closely follow the actual situation and focus on direction of the synchronous, decisive and effective implementation of objectives and solutions under the Resolution of the Party, National Assembly, Resolution No. 01/NQ-CP dated January 03, 2012 on the major solution, direction, operation and implementation of the plan of social economic development and the state budget estimate of the year 2012 and the practical measures in conformity with the actual situation; at the same time focus on directing, operating and deploying the implementation of some measures of difficulty removing for production, business and market support as follows:

1. Granting a 06 month extension of the deadline for submission of value added tax in April, May and June 2012 for the following enterprises who are implementing value-added tax payment by deduction method:

a) Small and medium enterprises, not including small and medium enterprises in the sectors of lottery, securities, finance, banking, insurance, production of goods and services subject to special consumption tax and enterprises ranked the 1st and special classes of economic groups and corporations.

b) Enterprises employing a lot of workers in the field of production, processing agricultural, forestry and aquatic products, textiles, footwear, electronic devices, construction of social and economic infrastructure.

2. Reducing 50% of payable land rental in 2012 as prescribed by Decision No. 2093/QD-TTg dated November 23, 2011 of the Prime Minister on the reduction of land rental in 2011 and 2012 for some economic organizations to the enterprises operating in the field of trade and services being leased land by the State that must determine the land rental rate in 2012 as stipulated in Decree No. 121/2010/ND-CP dated December 30, 2010 by the Government on amending and supplementing Decree No. 142/2005/ND-CP dated November 14, 2005 by the Government on collection of land rental and water surface rental.

3. Granting 09 month extension of the deadline for corporate income tax from 2011 and backwards that has not paid into the state budget (excluding corporate income tax extended under the Decision No. 04/2012/QD –TTg dated January 19, 2012 on extending the tax payment for additional 03 months of the corporate income tax payable in the first quarter, second quarter of the year 2011 for small and medium enterprises and the ones using a lot of workers) of the enterprises as regulated at point a, point b, Clause 1 of this Resolution and of the enterprises manufacturing mechanic products being the capital goods, water transport (including inland waterway transport and maritime transport), manufacturing steel and cement.

4. Granting an excise exemption of the year 2012 for fishing households and salt production households.

5. Granting a maximum of 12 month extension of the deadline for land use levy payment to the project investors having financial difficulties. Provincial-level People s Committee will make report to Standing People’s Council at the same level to consider and decide on the specific time of extension for each project and group of projects.

6. The Minister of Finance by procuration of the Prime Minister will report to the National Assembly for consideration and decision on:

a) Reducing 30% of corporate income tax payable in 2012 for small and medium enterprises, not including small and medium enterprise in the sectors of lottery, securities, finance, banking, insurance, production of goods and services subject to special consumption tax and enterprises ranked the 1st and special classes of economic groups and corporations and enterprises as prescribed at point b, clause 1 of this Resolution.

b) Granting a tax exemption of value added tax, personal income tax, corporate income tax in the year 2012 for individuals, boarding-house business households, rooms for rent to workers, laborers, students, pupils; households, individuals working as babysitter and child career, households, individuals and organizations providing shift helping meals for workers provided that the rate for room rental, boarding house, price of child care and babysitting and price of shift helping supply are kept fixed as the late of the year 2011.

7. The Ministries: Finance, Planning and Investment, Industry and Trade, Agriculture and Rural Development, the Ministries, agencies and localities according to their functions, duties assigned shall:

a) Focus on implementing practical and effective measures to accelerate the implementation of disbursement of investment capital for projects and programs within their management, especially for investment capital from the state budget, Government bond capital, the national target program capital ensuring the right subjects, effectiveness and compliance with regulations.

b) Take measures to mobilize 2,000 billion VND for adding loan capital source for investment in solidifying canals, developing rural roads, electric pump houses for agricultural production, infrastructure of aquaculture and rural craft villages. The Ministry of Finance will direct the Vietnam Development Bank to organize the implementation in accordance with regulations.

c) Allow the procurement in accordance with the Prime Minister’s regulations for the fund in 2011 having been arranged but not yet used due to compliance with regulations of Resolution No. 11/NQ-CP and converted to the year 2012.

d) Review to modify, supplement or submit to competent authority for amendment and supplement of regulations and policies, removing barriers of irrational investment and creating all favorable conditions for infrastructure, space, human resources, administrative procedures ... in order to remove problems for business and production, encouraging investment of domestic economic sectors and foreign investment.

đ) Take the appropriate measures to enhance the attraction and speed up the fund disbursement of the foreign direct investment (FDI), in which attraction of new wave of large scale and high technology investment must be focused on.

e) Ensure the necessary conditions to enhance attraction and fund disbursement of official development assistance (ODA), in which site clearance must be focused on, the reciprocal capital for social and economic infrastructure projects, especially in the areas of electricity and traffic must be ensured.

g) Take measures to remove difficulties and create all favorable conditions to encourage production for the advantageous fields and products especially in the areas of agriculture, tourism and services.

h) Strengthen promotion activities of trade, tourism and services in a direction of positive initiative and efficiency assurance. Accelerate progress of trade promotion domestically and abroad; early sign trade agreements with partners. Review the use of state budget fund for trade promotion activities in 2012, build a plan of additional support, in which focus on expanding the potential market and submit to the competent authorities for consideration and decision.

i) Strengthen the control of market, price, assurance of quality and prices of essential commodities, especially the price of milk and human curing medicine, medicine for protecting animals, plants, fertilizers;

k) Continue stepping up the reform of administrative procedures relating to production, business and investment, especially tax and customs procedure; shorten the clearance time, strengthen the work of electronic tax declaration via internet, push up the tax payment via banking system, the automation of the process of dossier receiving and settlement, administrative procedures of tax and customs. Strive to reduce 10-15% of the costs for the compliance of administrative procedures, tax and customs for individuals and organizations and enterprises.

8. The State Bank of Vietnam will preside over and coordinate with the Ministries, agencies and localities

a) To continue implementing monetary policy tightly and prudently; using tools of monetary policy actively and flexibly, ensuring the growth rate of credit, total of logic payment facility to control inflation according to targets set forth and reduce the interest rate ensuring consistence with changes of inflation.

b) To continue lowering the interest rates on loans, giving priority to agriculture, rural sector; small and medium enterprises; exported products producing enterprises and supporting industrial enterprises.

c) To implement measures of debt restructuring (debt payment period, interest rates, new loans for former debts payment ...) and other necessary measures, in conformity with each type, area of business and production, creating favorable conditions for enterprises to borrow capital for production and business, especially for the enterprises with prospective development and products meeting the requirements of the market but being in financial difficulty.

d) To speed up progress and ensure effectiveness in restructuring of commercial banks, firmly dealing with the weak banks with inefficient operation by appropriate measures, but ensuring the legality, stable system the legitimate interests of organizations and individuals depositing money and using banking services.

9. Implementation organization:

a) The Ministries: of Finance, Planning and Investment, Industry and Trade, Agriculture and Rural Development, State Bank of Vietnam and other concerned ministries and agencies according to functions and duties assigned to guide and organize implementation of the Resolution; submit to competent authorities for promulgation or amendment and supplement of concerned legal documents for the implementation of this Resolution as prescribed.

b) Pursuant to this Resolution, the Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, Chairmen of People’s Committee of central-affiliated provinces and cities according to their functions, duties will focus on directing, guiding and organizing the implementation and coordinating the implementation of the solutions in this Resolution in order to promptly remove difficulties for business, production and market support; closely coordinating with the Party and State agencies, the Vietnam Fatherland Front and organizations in implementing this Resolution; enhancing the inspection and supervision of the process of implementation of duties of each agency, organization or individual; implementing timely discipline and awarding mechanism and strictly in the performance of the duties assigned; closely following the actual situation, actively monitoring and assessing to have flexible and timely measures or recommending and proposing the competent authority the solutions of direction and operation to ensure the punctuality and effectiveness.

c) The Ministry of Planning and Investment shall preside over and coordinate with the ministries and relevant agencies to examine and supervise the situation of implementation of this Resolution; sum up and report to the Government on the situation and result of implementation deployment in the monthly periodic Government meeting session.

d) The Ministries, agencies and People s Committees of Central-affiliated provinces and cities centrally will review, sum up and assess the situation of Resolution implementation in their scope of functions and duties assigned and propose solutions of the Government’s direction and operation for the subsequent years, report to the Prime Minister and at the same time to the Ministry of Planning and Investment before December 10, 2012. The Ministry of Planning and Investment will sum up and assess the result of Resolution implementation of each Ministry, agency, locality and report to the Government in the periodic session in December 2012.