Resolution No. 150/NQ-CP dated December 13, 2018 of the Government on the Government’s Regular Meeting – November 2018

THE GOVERNMENT

Resolution No. 150/NQ-CP dated December 13, 2018 of the Government on the Government’s Regular Meeting – November 2018

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Government’s Decree No. 138/2016/ND-CP dated October 01, 2016 promulgating the working regulation of the Government;

Based on the discussion of the delegates and the conclusion of the Prime Minister at the Government’s regular meeting in October 2018, held on November 03, 2018.

DECIDES

1. Regarding the socio-economic situation in November and the first 11 months of 2018; the implementation of the Government s Resolution No. 01/NQ-CP of January 1, 2018

The Government unanimously assessed that the socio-economic situation in November and the first 11 months of 2018 continued to observe positive changes and achieved relatively comprehensive results in all sectors. Macroeconomic conditions were relatively stable; inflation was kept under control; major balances were guaranteed; gold and foreign exchange markets were stable; state revenues reached 92.7% of the estimate. Exports increased by 14.4%; of which, exports of domestic sector and foreign sector increased by 17.2% and 13.4%, respectively. Export surplus was estimated at US$ 6.8 billion. Agriculture production growth was relatively good, productivity and yield of rice increased; results on new rural area development surpassed the target of 2018. Industrial production increased sharply, index of industrial production (IIP) improved by 10.1%, in which index of processing and manufacturing continued to take lead, up by 12.2%. Total retail sales of goods and services increased by 11.5%. International tourists to Viet Nam increased by 21.3%. Business confidence improved; nearly 32 thousand enterprises returned to operation. Purchasing Managers Index (PMI) reached 56.5, the highest level over the past 7 years. Scientific and technological start-ups and innovation activities were promoted. Education, health, labor, employment, social security, sports, culture, information and communication received due attention. The "Great National Unity" Festival took place in a joyful atmosphere. Foreign affairs achieved many important results.

In addition to the above-mentioned achievements, the country still has to face with many difficulties and challenges, especially challenges to maintain macroeconomic stability and control inflation in the context of numerous changes in the financial and foreign exchange markets. Disbursement of public investment has not met requirements. The number of enterprises ceasing their business for a period of time, ceasing to operate, awaiting dissolution and/or having dissoluted remain high. A number of social issues such as violence against students, children, drug abuse ... create public concern. Complicating developments has arisen related to traffic accidents, fire and explosion, insecurity and disorder, and crime situation in some areas, affecting safety of the people.

In order to successfully and comprehensively achieve objectives and targets on socio-economic development in 2018, to create a solid momentum for 2019, the Government requested all levels and sectors, ministers, heads of ministerial-level agencies, chairpersons of provincial-level People s Committees promote individual responsibility as the heads, avoid being subject, closely monitor domestic and international situation, closely direct and synchronously administer the assigned tasks and solutions, strengthen administrative discipline and order, concentrate on handling and addressing shortcomings and inadequacies of their respective sectors, fields, localities; promote renovation in thinking, abolish backward mindset, dependency and waiting attitude; encourage innovation and creativity to create pervasive spill-over effects on the aspirations of the nation to the business community and each citizen. Attention should be paid on the implementation of the following contents:

- Ministries, sectors and localities shall urgently review and evaluate the implementation progress of their assigned tasks, what has been done and what has not yet been completed, the causes of shortcomings, limitations and experiences of each ministry, sector and locality to improve their performance in 2019. To take initiative in developing action programs to implement the Government s Resolution on the major tasks and solutions to direct and administer the socio-economic development plan and the state budget plan in 2019 in accordance with practical conditions of each sector, each field and each locality right from the beginning of 2019.

- Ministries, agencies and localities shall focus on directing to accelerate production and business activities with a view to meet the market demand at the end of the year and the Lunar New Year, and prepare for the New Year celebration of the Vietnamese citizens. The Ministry of Industry and Trade, the Ministry of Finance, the Ministry of Agriculture and Rural Development and provinces shall direct the sufficient supply of essential commodities for people s consumption needs, intensify market and price management, and prevention of smuggling and trade frauds. The Ministry of Labor, Invalids and Social Affairs and provinces shall organize visits to people with meritorious services to the people, and policy beneficiaries, especially in areas with particularly difficult socio-economic conditions, remote areas, predominantly ethnic minority areas, and areas affected by natural disasters. The Ministry of Transport shall direct the preparation of transport plans to meet travel demand of the people. The Ministry of Public Security shall direct and organize forces to ensure social order and safety. The Government Office was assigned to assume the prime responsibility for, and coordinate with concerned ministries and agencies in, formulating and submitting to the Prime Minister for consideration and signing to issue the Directive on the preparation of conditions to serve the people celebrating the Lunar New Year.

- Deputy Prime Minister Vuong Dinh Hue shall direct the Ministry of Finance and specialized price management ministries and agencies to prepare and propose a plan to adjust prices of some essential commodities and services managed by the State within an appropriate level and timeline; and at the same time prepare price adjustment scenarios for 2019; direct the State Bank of Viet Nam and the Ministry of Finance to closely coordinate in the employment of fiscal and monetary policies, ensuring to meet targets on inflation control and economic growth.

- The State Bank of Viet Nam shall continue to monitor fluctuations in exchange rates and interest rates, actively and flexibly control monetary policy, ensure liquidity of credit institutions and stability of the foreign currency market to meet the credit demand of the economy; and intensify inspection and surveillance activities to ensure the safe and efficient operation of the system of credit institutions.

- The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Government Office and concerned ministries and agencies in, finalizing the Government s draft Resolution to improve the business environment and raise business competitiveness in 2019; request for comments of relevant ministries and agencies to finalize and submit the Resolution at the Government s meeting with provinces in December 2018. The Ministry of Planning and Investment shall assume the prime responsibility for studying and making specific recommendations to the implementation of a number of supportive policies in the Law on Support for Small- and Medium-sized Enterprises, and report to the Prime Minister in January 2019; coordinate with the Ministry of Finance to focus on urging ministries and provinces to accelerate the disbursement of public investment capital in 2018, striving to disburse 100% of the plan, especially for big and important national projects and national target programs; intensify the inspection, examination and assurance of the use of public investment capital for the right purposes in an efficient and thrifty manner, combating against corruption, waste and group interests; and make public ministries, sectors and provinces which make slow progress in capital disbursement.

- The Ministry of Finance shall direct the tax industry to step up the prevention of revenue loss, transfer pricing and tax arrears, thoroughly review collectibles and ensure to fulfil the State budget revenue plan in 2018. To intensify the inspection and examination on prices, taxes, fees and charges, especially for essential goods and services. To expeditiously coordinate with the Government Office in finalizing and submitting to the Prime Minister to promulgate a Directive to intensify the work of directing the restructuring, reorganization, renewal, equitization and divestment of State enterprises. To tighten management of debt collection service business. To study and propose measures to implement preferential taxation policies for small- and medium-sized enterprises, a number of policies to support micro enterprises and enterprises transforming from business households specified in the Law on Support for Small- and Medium-sized Enterprises, and report to the Prime Minister in January 2019.

- The Ministry of Agriculture and Rural Development shall take initiative in implementing measures to step up the restructuring of the agriculture sector; to attach importance to the development of key commodities that Viet Nam has

great potentials and advantages of; to step up the application of high technologies in the production, processing and preservation of agricultural products; to coordinate with the Ministry of Industry and Trade to regularly monitor and keep posted of the situation and actively take measures to respond to changes in trade policies of other countries.

- The Ministry of Industry and Trade shall be responsible for ensuring an adequate supply of electricity for socio- economic development and the people s life. To effectively implement solutions to restructure the industry. To study and analyse import and export rules and conditions at the end of the year to work out appropriate solutions to ensure export growth and limit import within an appropriate level. To direct to boost production and business, intensifying communication, promotion and encouraging the consumption of domestic products with the motto "Vietnamese goods conquer Vietnamese people". To organize the adoption of the CPTPP; expeditiously propose relevant draft Laws which need to be amended and supplemented for incorporation into the Law- and Ordinance-making Program for 2019. To coordinate with the Ministry of Foreign Affairs and the concerned ministries and sectors to accelerate the negotiation process, striving to obtain approval on the Vietnam-EU Free Trade Agreement (EVFTA) before May 2019.

- The Ministry of Construction shall enhance efficiency of state management over urban development. To take initiative in controlling and promoting the sustainable development of the real estate market. To direct to ensure the construction progress and quality of the Project on building Lao PDR s National Assembly, taking this as an important political task of the sector.

- The Committee for Management of State Capital at Enterprises (CMSC) and concerned ministries, sectors and provinces shall urge, inspect and supervise economic groups and state-owned corporations’ execution of production and business plans assigned by the state. CMSC shall report to the Prime Minister on the performance of economic groups and state-owned corporations under its management authority in the first quarter of 2019; coordinate with concerned ministries and agencies in proposing investment mechanisms according to regulations for implementing national important projects and/or large projects with elements of national defense and security; coordinate with the Ministry of Transport to reach agreement on the implementation of the Long Thanh International Airport Project and the Tan Son Nhat International Airport Expansion Project and report them to competent authorities for consideration and decision.

- The Ministry of Transport shall concentrate on improving investment procedures, speeding up the execution, construction and completion of key projects and works of the industry while ensuring their quality. The Ministry shall improve the quality of training, examination and issuance of driving licenses; enhance the assurance of security and safety of aviation, maritime, land and inland waterways; and adopt drastic measures to remove black spots on traffic safety.

- The Ministry of Culture, Sports and Tourism shall concentrate on overcoming inadequacies in state management in the tourism industry; strengthen the application of information technology in tourism development; stimulate promotion and communication of special interest tourism products of Vietnam which are more competitive compared to other destinations in the region; and actively build and implement a plan to celebrate the 129th birth anniversary and the 50th death anniversary of late President Ho Chi Minh.

- The Ministry of Labor, Invalids and Social Affairs shall effectively implement social welfare policies and the National Target Program on Sustainable Poverty Reduction. To closely coordinate with the Ministry of Education and Training, other relevant ministries, sectors and unions in the comprehensive adoption of measures to prevent and combat violence against children and pupils. To promptly detect, stop and strictly handle acts of violence against children and pupils.

- The Ministry of Health shall direct to improve the quality of medical examination and treatment in service of the people; the application of medical records management of individuals, the effective operation of implementation of medical facilities. To focus on directing and speeding up the completion of the pilot Project at Bach Mai Hospital and Viet Duc Hospital serving medical examination and treatment for the people. To take initiative in effectively applying solutions to connect medical examination and treatment using health insurance card from 2021 in accordance with the Law on Health Insurance, especially in Ha Noi and Ho Chi Minh City. To ensure the effective linkage among drug suppliers. To strengthen public coordination in inspection and surveillance activities to ensure food safety, especially on the occasion of the Lunar New Year.

- The Ministry of Education and Training shall review and refine the management of pre-school education and general education. To coordinate with the Ministry of Labor, Invalids and Social Affairs and provinces in urging and directing the adoption of drastic measures to prevent and combat violence against children and pupils.

- The Ministry of Science and Technology shall closely coordinate with other ministries, sectors, provinces, associations and mass organizations to promote the development of a national innovative start-up ecosystem; co- ordinate with related ministries and sectors to develop specific tasks and solutions to acquire and master core technologies of the Fourth Industrial Revolution; and focus on developing and exploiting intellectual property.

- The Ministry of Home Affairs shall assume the prime responsibility for, and coordinate with the Ministry of Education and Training and the Ministry of Planning and Investment in drawing up policies to attract talents to work in state administrative agencies.

- Given the fact that new policies amending and supplementing Decree No. 24/2014/ND-CP and Decree No. 37/2014/ND-CP on specialized agencies under provincial-and district-level People s Committees have not yet been issued, organization and operation of specialized agencies under provincial- and district-level People s Committees shall follow current legislation. The Ministry of Home Affair shall monitor and sum up the demand for consolidation and reorganization of agencies and units of provinces and report to the Prime Minister for comments.

- The Ministry of Natural Resources and Environment shall actively implement and accelerate the implementation progress of programs and projects to respond to climate change; assume the prime responsibility for, and coordinate with concerned ministries, agencies and localities in, clarifying responsibilities and improving domestic waste treatment in rural areas.

- The Ministry of National Defense shall direct forces to intensify patrol and surveillance to ensure the safety of fishermen and marine economic activities; take initiative in handling specific situations, ensuring sea and island sovereignty. To enhance direction and coordination in the prevention and combat against cross-border smuggling and trade frauds.

- The Ministry of Public Security shall continue closely monitoring the situation, take initiative in responding to, promptly dealing with, and effectively preventing conspiracies and activities against the Party and the State of hostile forces, and prevent and combat against crimes to ensure social security, order and safety; To strictly handle cases taking advantage of debt collection service business to infringe upon the lives and property of the people; To coordinate with the Viet Nam Fatherland Front and the State Bank of Viet Nam in taking measures to prevent usury, black credit and crime in credit and banking domains. To assume the prime responsibility for and coordinate with the Ministry of Defense and the Ministry of Information and Communications to actively prevent, detect and prevent activities using cyberspace to infringe upon national security and legitimate rights and interests of organizations and individuals.

- The Ministry of Foreign Affairs shall effectively deploy results of the 33th ASEAN Summit and APEC 2018; coordinate with other ministries and sectors to further promote economic diplomacy, take advantage of high-level external activities to promote economic cooperation with partners; and co-ordinate with the Ministry of Industry and Trade to foster advocacy to accelerate the official signing and ratification of the EU-Viet Nam Free Trade Agreement (EVFTA).

- Deputy Prime Minister Truong Hoa Binh shall continue directing the finalization of inspection conclusions on emerging issues which raise public concern, and the reporting to the Government. It is required all levels and sectors take initiative in handling urgent matters concerned by the people, not to give rise to complicated complaints.

- A special working group shall be set up and chaired by Deputy Prime Minister Truong Hoa Binh, with members who are leaders of the Government Office, the Government Inspectorate, a number of relevant ministries, agencies and provinces to directly settle and provide conclusions on a number of complicated and prolonged complaints and denunciations.

- The Ministry of Information and Communications shall direct news agencies to provide information in an honest and objective manner, inspiring the development, renovation, creation and exemplification of national aspirations. To resolutely handle communication of false information. To intensify discipline of speech, strictly handle cases of abusing the right to freedom of speech to violate interests of the state, legitimate rights and interests of organizations and citizens. To implement planning for the introduction of 5G; simultaneously adopt SIM card management solutions, correct and strictly handle violations in the use of illegal SIM cards.

- Ministries and agencies shall urgently organize the effective implementation and application of the Politburo s conclusions, the Resolution of the 8th plenum of the 12th Central Committee of the Communist Party of Viet Nam, and Resolutions and Laws of the 6th session of the 14th National Assembly.

2. Regarding assignment of the capital plan for 2018 to prepare for investment in sub-projects under the Project of a number of expressways on the North-South route in the 2017-2020 period, and estimated investment after 31 October 2017

The Government unanimously agreed to allocate Government bond funds in 2018 for the preparation of investment in a number of sub-projects under the Project to build a number of expressways on the North-South route in the 2017- 2020 period as proposed by the Ministry of Planning and Investment in Report No. 8582/BC-BKHDT dated November 30, 2018. The Ministry of Planning and Investment was assigned to expeditiously execute the implementation as regulated by law.

3. Regarding the draft Resolution of the Government on the major tasks and solutions for directing and administering socio-economic development and the state budget plan in 2019

The Ministry of Planning and Investment was assigned to assume the prime responsibility for, and coordinate with concerned ministries and agencies in, collecting comments of cabinet members, finalizing the draft Resolution on the major tasks and solutions for directing and administering socio-economic development and the state budget plan in 2019; request for comments from ministries, agencies and localities before submitting them to the Government’s meeting with provinces in December 2018.

Ministries, agencies and provinces were assigned to continue reviewing and evaluating the implementation of Resolution No. 01/NQ-CP dated January 1, 2018, and at them same time focusing on studying and adhering to undertakings, directions, policies, objectives and targets on socio-economic development assigned by the Party and the National Assembly; identify tasks, breakthrough solutions to problems and bottlenecks of sectors and fields in 2019; report to the Ministry of Planning and Investment before December 15, 2018 for synthesis and incorporation into the Resolution on major tasks and solutions for directing and administering socio-economic development and the state budget plan in 2019.

4. Regarding the advancement of medium-term public investment plan for the 2016-2020 period to the Viet Nam Development Bank

The Government unanimously agreed on the principle of advancing the medium-term public investment plan for the 2016-2020 period to offset the differences related to interest and state budget management fees until 2014 to the Viet Nam Development Bank provided that all provisions of the Law on the State budget in 2015 are met. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in, reviewing legal foundations and reporting to the Standing Committee of the Government on the advancement of medium-term public investment plan for the 2016-2020 period to the Viet Nam Development Bank, ensuring to strictly comply with the Law on State Budget, the Law on Public Investment, and the relevant regulations.

5. Regarding the suspended application of measures to extend tax payment timeline and reimburse value added tax stipulated in Resolution No. 63/NQ-CP dated August 25, 2014 of the Government.

The Government unanimously agree to suspend the application of measures to extend tax payment timeline and reimbursement of value added tax stipulated in Resolution No. 63/NQ-CP dated August 25, 2014. The Ministry of Finance was assigned to promulgate documents guiding the implementation.

6. Regarding the issuance of detailed regulations; the issuance of documents cutting down business conditions and specialized inspection procedures; inspection results of the Prime Minister s Working Group in November 2018

a) On the issuance of detailed documents:

Ministries and agencies, which still have outstanding detailing documents, shall expeditiously finalize and submit for promulgation or promulgate the respective documents according to their competence; at the same time, to speed up the promulgation progress or, according to their respective competence, promulgate documents detailing the laws and ordinances which shall take effect from January 1, 2019.

b) Regarding the issuance of documents cutting down business conditions and specialized inspection procedures:

- Specialized ministries managing business conditions shall continue to review and propose measures to reduce and simplify specialized inspection procedures and the list of unnecessary specialized inspection procedures and business conditions causing troubles for businesses.

- Ministries and agencies, which have adopted measures to reduce and simplify specialized inspection procedures, the list of goods subject to specialized inspection and business conditions, but have not yet made assessment reports on economic efficiency of the respective measures, shall promptly send the reports to the Government Office and concurrently report to the Ministry of Planning and Investment before December 15, 2018.

c) Regarding the inspection results of the Working Group of the Prime Minister

The Working Group was assigned to continue monitoring, urging and inspecting the performance of tasks assigned by the Government and the Prime Minister to ministries, agencies and provinces, and make public report at the Government s regular meetings. Attention must be paid to solving problems related to coordination and management mechanisms among ministries and agencies in the fields of investment, finance and budgetary.

7. Regarding solutions to address overlaps in specialized inspection of imported forklifts

The Ministry of Transport shall assume the prime responsibility for carrying out specialized inspection before customs clearance for imported forklifts until the enforcement of legal documents amending the Government s Decree No. 44/2016/ND-CP and Decree No. 74/2018/ND-CP to implement the simplification plan mentioned above.

8. Regarding the proposal for developing the draft Law on Emulation and Reward (revised)

The Ministry of Home Affairs was assigned to assume the prime responsibility for, and coordinate with the concerned ministries and agencies in, collecting comments of the Government members, the Ministry of Justice s appraisal opinions, the Government Office s examination results, study, review, amend and supplement the Law on Emulation and Reward in a comprehensive manner. Special attention should be paid to address practical issues in emulation and commendation work, to overcome current shortcomings and weaknesses. At the same time, it is also essential to select appropriate time to submit to the National Assembly the draft Law amending and supplementing the Law on Emulation and Reward by 2020 while ensuring the quality of the draft Law.

9. Regarding the draft Decree on forest protection staff and rangers

The Ministry of Agriculture and Rural Development was assigned to assume the prime responsibility for, and coordinate with the Government Office in, collecting comments of the Government members, in the direction that: preferential policies on war invalids and fallen combatants for specialized forest protection force shall follow current legislation on preferential treatment of people with meritorious services to the revolution; the central budget’s shall ensure to provide sufficient funding for the procurement of arms and military support equipment for the central forest ranger force while the local budgets shall finance the procurement of arms and military support equipment for local forest rangers; general provisions will be stipulated on central forest ranger offices, provincial ranger offices and district ranger offices; the draft Decree shall be completed and reported to the Prime Minister for consideration and signing.

10. Regarding the appraisal of capital sources and capacity to balance capital of projects using revenues from the rearrangement and handling of houses and land of the Ministry of National Defense

The Government unanimously agreed to apply the principle to utilize revenues from the rearrangement and handling of houses and land of the Ministry of National Defense for the performance of defense tasks in order to raise defense potentials. The Ministry of Planning and Investment was assigned to, based on medium-term investment in the 2016- 2020 period, assume the prime responsibility for, and coordinate with the Ministry of Finance and the Ministry of National Defense in, reviewing, balancing and allocating funds for projects using revenues from the rearrangement and handling of the above-mentioned houses and land to ensure early completion and highest efficiency of projects. Such capital must be used for proper purposes and in accordance with current legislation.

11. Regarding the transfer of the state budget investment capital of the Project to build the Viet Nam National University, Ha Noi in Hoa Lac Hi-tech Park

The Minister of Planning and Investment was authorized by the Prime Minister to act on behalf of the Government to report to the Standing Committee of the National Assembly on the transfer of medium-term public investment plan for the 2016-2020 period and the annual state budget plan in 2018 related to the Project to build the Viet Nam National University, Ha Noi in Hoa Lac Hi-tech Park from the Ministry of Construction to the Viet Nam National University, Ha Noi according to regulations.

12. Regarding the handling of exchange differences of power projects of the General Electric Corporation No. 3 (GENCO3) in the National Electricity Development Plan approved by the Prime Minister at the time of GENCO3’s official transformation to operation under Joint Stock Company model

The Government unanimously agreed to allow the parent company - GENCO3 to accumulatively report foreign exchange losses in the investment process of power projects in the National Electricity Development Plan approved by the Prime Minister. The foreign exchange losses shall be reported as an expense item and the allocation time shall not exceed 5 years from the time the works come into operation.

The Ministry of Finance was assigned to assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade and the Committee for Management of State Capital at Enterprises in guiding the implementation thereof.

13. Regarding the deposit of workers who go to work in Korea under the Korea Employment Permit System (the EPS Scheme)

The Ministry of Labor, Invalids and Social Affairs was assigned to assume the prime responsibility for, and coordinate with the concerned ministries and agencies in formulating and submitting to the Prime Minister for promulgation legal documents on the deposit of workers going to work in Korea under the EPS Scheme following the simplified procedure.

The Ministry of Labor, Invalids and Social Affairs and the Viet Nam Bank for Social Policies shall continue to implement the deposit and provision of loans for deposit of workers going to work in Korea under the EPS Scheme until new regulations comes into effect.

14. Regarding the draft Decree amending and supplementing a number of articles of the Government s Decree No. 36/2016/ND-CP dated May 15, 2016 on management of medical equipment

The Ministry of Health shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in collecting comments of the Government members in the direction that the management of medical equipment temporarily imported for re-export for display, introduction and participation in fairs and exhibitions must comply with provisions of the Law on Commerce; clearly define authority and responsibility, and assign the Minister of Health to take responsibility for the import of used medical equipment for training purposes. On that basis, the draft Decree shall be finalized and reported to the Prime Minister for consideration and decision./.

On Behalf of the Government

Prime Minister

Nguyen Xuan Phuc