Resolution No. 17/NQ-CP dated April 02, 2010 of the Government on the Government’s regular meeting - March 2010

RESOLUTION

THE GOVERNMENT’S REGULAR MEETING - MARCH 2010

The Government convened its March regular meeting on March 30-31 and April 1, 2010 to discuss and decide the following issues:

The Government discussed and approved a supplementary report on socio-economic performance in 2009 and the implementation of socio-economic development in 2010; the report on socio-economic situations in March and the first quarter; the draft resolution on solutions to ensure macro-economic stability, prevent high inflation and achieve a GDP growth rate of 6.5% in 2010; the report on the disbursement of the State budget and measures for macro-economic stability and State budget management in 2010; the report on the implementation of international commitments and agreements reached by leaders of the Party, State, and Government during their overseas visits in Q4/2009 and Q1/2010; the reports on administrative reforms, inspection work, settlement of complaints and accusations, and anti-corruption in March; the report on the compilation of laws and ordinances in the first quarter; the report on the implementation of the Resolution of the Government’s February 2010 regular meeting and the March agenda. These reports were presented by the Minister of Planning and Investment, the Minister-Chairman of the Office of Government (OOG), the Minister of Finance, the Minister of Foreign Affairs, the Minister of Home Affairs, the Government Chief Inspector, and the Minister of Justice.

Once again, accessing the socio-economic performance in 2009, the Government was unanimous that although numerous difficulties emerged due to the global financial crisis and economic recession, thanks to the sound leadership of the Party, efficient management of the State, drastic supervision of the Government and local authorities, strong efforts of the whole political system, business community and people, Việt Nam succeeded in fulfilling the set targets of preventing recession, maintaining economic growth, stabilizing the macro-economy and ensuring social security. The areas of education, healthcare, culture, sports, science-technology and environment saw advancements with positive outcomes. Better diplomatic ties together with closer economic linkages between Việt Nam and other countries helped to raise the national status. The national defense and social order were ensured. Some major norms exceeded the expectations of the National Assembly (NA).

The socio-economic performance in the first three months was on the recovery with positive signs. In the first quarter, the economy recorded a growth rate of 5.83%, higher than the same period last year (3.14%). Industrial value surged 13.6% (exceeding the year target of 12%); construction sector jumped 17.4%; agricultural-forestry-seafood production increased by 5.8%; and service sector grew 6.64%. The macro-economy remained stable. The domestic market developed well. The total retail of goods and the revenue of services sharply increased. Tourist activities were boisterous. The collection and spending of the State budget were balanced. Development investment was promoted. Social security was enhanced.

However, the economy still is facing numerous difficulties. Though higher than the same period of 2009, the GDP growth rate in the first quarter was the record low. FDI attraction plummeted. Natural disasters and epidemics hindered production. The macro-economy saw signs of instability; CPI went up relatively high at 4.12% in the first quarter; the financial and monetary markets operated unsustainably; the management of interest rates did not reflect the market-oriented model of supply and demand; the total means of payment and outstanding loans were low and inappropriate; export remained difficult; and the high trade deficit impacted the balance of payments. Hence, the Government decided to issue the Resolution on solutions to ensure macro-economic stability; prevent high inflation and achieve a GDP growth rate of 6.5% in 2010.

The OOG was assigned to collect comments of the Cabinet’s members, complete a new draft resolution, and submit it to the PM for issuance. The Government will hold meetings with leaders of relevant agencies, the Việt Nam Fatherland Front, localities, and State-owned enterprises (SOEs) to put the resolution into reality.

The Government requires all ministries, sectors and localities to fruitfully carry out Resolution 03/NQ-CP, dated on January 15, 2010, stipulating major solutions to direct and manage the implementation of the socio-economic development plan and state budget estimates in 2010. At the same time, it is necessary to focus on the following tasks:

- Speeding up administrative reforms, especially by trimming at least 30% of administrative procedures on schedule in the second stage of the Project 30 on administrative procedures simplification in state management, particularly in the areas of tax, land, customs, capital construction, and investment licensing;

- Strengthening anti-corruption, settlement of complaints and accusations while enhancing inspection to prevent red-tapes and prodigality in state agencies;

- Mobilizing local reserve budgets for anti-drought projects and daily water supply;

- Early concluding and submitting documents which regulate and guide the implementation of valid laws and ordinances; reviewing preparatory work of projects and implementing working plans on schedule in the second quarter and the coming months;

- Preparing the Government’s projects and reports for submission to the seventh session of the 12th NA.

2. The Government listened to the Minister of Finance’s Report on State Budget for 2008.

The Ministry of Finance (MoF) serves as the main implementer, in collaboration with the Government Inspectorate and the Ministry of Planning and Investment, to collect opinions of the Cabinet’s members to finalize the Report. The Minister of Finance, authorized by the PM and the Government, will present the Report at the seventh session of the 12th NA.

3. The Government listened to the Minister of Labor, War Invalids and Social Affairs presenting the draft Strategy on social security in the period of 2011-2020 and the Project on social security system for rural residents in the period of 2011–2020.

The Ministry of Labor, War Invalids and Social Affairs (MOLISA) serves as the main implementer, in collaboration with relevant agencies, to collect ideas of Cabinet members to finalize the draft Strategy and the Project before submitting them to the PM and the Political Bureau.

4. The Government listened to the Minister of Home Affairs presenting the initial report on the implementation of the NA’s Resolution 26/2008/QH12 on the trial dissolution of People’s Councils at district and ward levels.

The Ministry of Home Affairs (MoHA) serves as the main implementer, in collaboration with the OOG, to finalize the report. On behalf of the Government and the PM, the Minister of Home Affairs will present the report to the National Assembly Standing Committee (NASC) and the Political Bureau.

5. The Government listened to the Minister of Public Security presenting a statement on the draft decree to amend and supplement some articles of the Government’s Decree 107/2007/NĐ-CP, dated on June 25, 2007, stipulating in details and guiding the enforcement of the Residence Law.

The Ministry of Public Security serves as the main implementer, in collaboration with the Ministry of Justice (MoJ), the OOG and other relevant agencies, to collect opinions of Cabinet members to finalize the draft decree (amended) and submit it to the PM for issuance.

6. The Government listened to the Minister of Transport presenting regulations on trial punishment for administrative violations in road transport within the inner cities of Hà Nội and Hồ Chí Minh City.

The Ministry of Transport serves as the main implementer, in collaboration with the MoJ, the OOG and other relevant agencies, to collect opinions of the Cabinet’s members to finalize and submit the draft decree to the PM for issuance.

7. The Government discussed regulations, delivered by the Minister of Finance, on preferential areas for investment and tax incentives in newly-established administrative units following the realization of the Government’s regulations on administrative adjustment.

The MoF will collect comments of the Cabinet’s members to draft a Government decree on preferential areas for investment and tax incentives in newly-established administrative, then submit it to the PM for issuance.

8. The Government gave opinions on the NASC’s draft resolution, submitted by the MoF, on natural resources tariff.

The MoF will collect opinions of the Cabinet’s members to finalize the draft resolution in conformity with the Law on Natural Resources Tax. The Minister of Finance, authorized by the PM, will report the document to the NASC.

9. The Government commented on the Justice Minister’s statement on the law- and ordinance-making program 2011.

The MoJ serves as the main implementer, in collaboration of the OOG and other relevant agencies, to collect comments of the Cabinet’s members to finalize the draft program. On behalf of the PM and the Government, the Minister of Justice will ink the statement and report it to the NASC.

10. The Government gave opinions on the Bill on Civil Servants, the Bill on Consumer Protection, some revisions of the Law on the State Bank of Việt Nam (amended), and the Law on Credit Organizations (amended). These documents were separately presented by the Minister of Home Affairs, the Minister of Industry and Trade, and the Governor of the State Bank of Việt Nam (SBV).

- The MoHA serves as the main implementer, in collaboration with the MoJ, the OOG and other relevant agencies, to collect comments of the Cabinet’s members to finalize the Bill on Civil Servants. On behalf of the PM and the Government, the Minister of Home Affairs will submit the Bill to the NASC.

- The Ministry of Industry and Trade (MoIT) serves as the main implementer, in collaboration with the MoJ, the OOG and other relevant agencies, to collect ideas of the Cabinet’s members to complete the Bill on Consumer Protection. On behalf of the PM and the Government, the Minister of Industry and Trade will present the Bill to the NASC.

- The SBV serves as the main implementer, in collaboration with the MoJ, the OOG and other relevant NA agencies, to collect ideas of Cabinet members and NA deputies and finalize the Law on the State Bank of Việt Nam (amended) and the Law on Credit Organizations (amended), so that the amended laws must be appropriate to the market economic mechanism and international practices; ensure the State’s management and inspection over the banking system; solve obstacles, shortcomings and loopholes in the current legal system in order to secure the more effective enforcement of monetary policies and the smooth, sound and safe performance of banking system. The SBV will draft a Government’s report after acquiring opinions of NA deputies, On behalf of the Government, the SBV Governor will report these two laws to the NASC./.