Resolution No. 26/2016/QH14 dated November 10, 2016 of the National Assembly on medium-term public investment plan of 2016 - 2020 period

THENATIONAL ASSEMBLY 

Resolution No.26/2016/QH14datedNovember10, 2016of the National Assemblyon medium-termpublic investment planof 2016 - 2020 period

Pursuant to the Constitution of the Socialist Republic of Vietnam;

Pursuant to the Law on Public investment No.49/2014/QH13;

Pursuant to the Law on State budget No.01/2002/QH11and the Law on State budget No.83/2015/QH13;

Upon the consideration of theStatement No.471/TTr-CP,the Report No.472/BC-CP dated October19, 2016by the Government; the Inspection report No. 176/BC-UBTCNS14 dated October 19, 2016 by the Finance and Budget Committee; the Report No.50/BC-UBTVQH14 dated November9, 2016 by the Standing committee of the National Assembly of the Socialist Republic of Vietnam and the National Assembly’s enquiry reportson medium-term public investment plan of 2016 - 2020 period,

RESOLVES:

Article 1. Objectives, orientation of medium-term public investment of 2016 - 2020 period

1. Objectives:

Restructure and increase the effectiveness of the use ofpublic investment, maximize the attraction and use effectively investments in development, perfect basically the essential system ofsocio-economicinfrastructure, serving the implementation of objectives ofsocio-economic developmentof 2016 - 2020 period and restructure the economics of 2016 - 2020 period.

2.Orientation:

a) Focus on the provision of capitals toexpeditethe progress and completeNational target programs,projects of national importanceand key projects which are necessary to boost thesocio-economic developmentof Vietnam, with the regional connection and spreading; use effectively the capitals from other economic sectors. Investments in the development of the State budget shall not be allocated to sectors or projects which other economic sectors may invest in;

b) Prioritize investments from the State budget in mountainous, border or island areas, areas with manyethnic minorities,remote and isolated areas, areas high frequency of natural disasters and areas withextremely disadvantaged socio-economicconditions; supports with housing topeople meritorious to the revolution; tasks of fighting againstclimate change, prevention, fighting and elimination of drought inthe Central Highlandsandthe south central coast, the sanitization in the Mekong Delta and marineenvironment pollutionin 4 provinces of the Center area;

c) The investment from the State budget in 2016 - 2020 period to sectors,domains and programs shall comply with regulations in the Resolution No,1023/NQ-UBTVQH13bythe Standing committee of the National Assembly of the Socialist Republic of Vietnam;

d) The collection from the sale of thestate capitals of several enterprise shall be invested to important projects with highsocio-economiceffect.

Article 2. Total medium-term investment form the state budget in 2016 - 2020 period

1. Total medium-term investment form the state budget in 2016 - 2020 periodshall not exceed VND 2,000,000 billion, where:

a) Central government’s budget investment shall be VND 1,120,000 billion, including VND 300,000 billion of foreign capitals and VND 820,000 billion of domestic capitals, VND 260,000 billion of which areGovernment bonds(including VND 60,000 billion ofGovernment bondstransferred from the 2014 - 2016 period) and the collection from the sale ofstate capitals from several enterprises shall be VND 250,000 billion;

b) Investment in the balance of local government’s budget shall be VND 880,000 billion.

2.Provisions for medium-term investment plan from the state budget of the 2016 - 2020 period to handle issues arising during the implementation of medium-term investment plan as follows:

a) 10% of each investment shall be transferred to the common provisions;

b) Ministries and regulatory of central and local governments shall transfer 10% of the capitals provided according to medium-term to the provision fund.

Article 3.National target programs andprojects of national importance

1.VND 72,817 billion of the development investment from the State budget of the 2016 - 2020 period shall be used for implement 02National target programs, including:

a) VND 43,119 billion shall be invested inNational target programfor rural development;

b) VND 29,698 billion shall be invested in National target program forstabilized decrease of poverty.

2.VND 5,000 billion shall be invested in the site clearance of the Long Thanh International Airport Project.

3.VND 80,000 billion shall be invested inprojects of national importance. TheNational Assemblyshall consider deciding the specific investmentpoliciesand level of capitals ofPublic investment planof the 2016 - 2020 period for eachproject of national importancewhen the Government has completed and sent documents toNational Assemblyfor decision according to provisions of the Law onPublic investment.

Article 4. The principle of allocation of the state budget capital of the 2016 - 2020 period

1.The provision of capitals shall serve the implementation of objectives and orientation specified in the 10-yearsocio-economic developmentstrategy of 2011 - 2020 period; the Plan on 5-yearsocio-economic developmentof 2016 - 2020 period of Vietnam or of sectors, domains or local areas,socio-economic developmentplanning and planning of each sector/domain/area which have been approved bycompetent authorities.

2.The provision of capitals shall be conformable to provisions of the Law on public investment, the Law on State budget, the Resolution No.1023/NQ-UBTVQH13ofthe Standing committee of the National Assembly of the Socialist Republic of Vietnamand relevant documents.

3.Investments shall be allocated concentrative to eliminate the dispersal, spreading and the incompletion to ensure the effectiveness of the investment from the state budget; reciprocal capitals for ODA projects shall be provided sufficiently. Concurrently, other lawful capitals shall be mobilized toexpedite the progress and completethe twoNational target programs, projects of national importance and key projects which are necessaryand urgent andtarget programsto boost the socio-economic development of Vietnam, with the regional connection and spreading.

4.Areas receiving the central government’s budget of the 2016 - 2020 period shall commit to making up for the lacked amount by using the local government’s budget and other lawful capitals to complete the project according to the schedule. For the increase of total investment in the project in comparison with the total investment allocated bycompetent authoritiesto serve the medium-term investment plan, local government shall balance it with the additional investment from other lawful capitals to complete the project according to the schedule and ensuring thequality.

5.For foreign capitals, the demand for lend and thesolvencyof the implementing projects shall be balanced with those of new projects.

Article5. Order of priorityin the allocationof the state budget capital of the 2016 - 2020 period

1.For domestic capitals, excludingGovernment bonds, the capitals shall be allocated according to the followingorder of priority:

a) Sufficient allocation of capitals for the repayment ofunsettled debts derived from infrastructural development; the recovery of advances; the State budget capitals shall not be allocated for the payment ofunsettled debts derived from infrastructural developmentarising after December 31, 2014;

b) Allocation of reciprocal capitals for plans using ODA capitals andconcessional loansfrom foreign sponsors; investments of the State in the implementation of plans in the form ofPublic-Private Partnerships(PPP);

c) Allocation of capitals for transferred plans which are completed in the 2016 - 2020 period;

d) When capitals have been allocated sufficiently according to the abovementionedorder of priority, the remaining amount shall be considered being allocated to newly-started projects.

2. For Government bonds, the capitals shall beallocatedaccording to the following order of priority:

a) Supplementation to the insufficientGovernment bondsof the investments in important projects and constructions in the field of transport and irrigation specified in Annex No. 3 of the Resolution No.726/NQ-UBTVQH13bythe Standing committee of the National Assembly of the Socialist Republic of Vietnamand the relocation project  serving Son La hydroelectric construction;

b) Allocation of capitals for urgent projects of healthcare, transport and irrigation sectors and for the solidification of school constructions of pre-school or primary-school level for areas with manyethnic minoritiesandremote and isolated areas.

3.For foreign capitals, capitals for implementable projects shall be allocated and disbursed according to the central government’s budget specified in the Agreement signed for specific project of the 2016 - 2020 period. The capitals of medium-term plan allocated for each project must not exceed the foreign capitals in the central government’s budget approved bycompetent authorities.

Article 6. Measures for implementing medium-termpublic investment planof the 2016 - 2020 period

1.Boost the restructuring of the spending of the state budget in the direction of using efficiently and reducingrecurrent expensesto increase the amount of spending on the development. Ministries, regulatory bodies and local government shall perform the economy in each plan according to the Government’s regulations.

2.Minimize the granting of advances of medium-termpublic investment plancapitals.In case of necessity, the granting of advances shall be under tight supervision, ensure the compliance with regulations in the Law on public investment and the Law on State budget. The amount of advances of specific project must not exceed the allocation specified in the medium-termpublic investment planand provided that the payment of the advances is ensured.

3.Tightly manage the use of provisional capitals in the medium-termpublic investment plan. The remaining amount of the provisional capitals shall be used only in cases where the revenue of the state budget is ensured according to the plan and is used for necessary and urgent objectives according to the Law on State budget, the Law on public investment and after reporting tothe Standing committee of the National Assembly of the Socialist Republic of Vietnamfor decision.

4.Allocate the state budget capital and increase the mobilization ofinfrastructural investment capitals in form ofPublic-Private Partnerships(PPP). Boost theprivate sector involvementin public services regarding healthcare, education, culture, sport and constructions andinfrastructural projects serving the production and activities of people in rural areas.

5.Heads of the Government, Ministries and regulatory bodies of central and local levels having legal responsibility in the decision on investment andquality assuranceshall formulate a report on proposal, assessment and approval for investment projects and/or decisions on investment in the project tothoroughlyeliminate the situations where the project is prepared carelessly and not conformably to law, the decision on investment is unfocused and ineffective or the approval for total investment is inaccurate. Only really necessary projects shall be invested after assessing and clarifying their effect, capital sources, the capacity to balance and allocate capitals for each project, ensuring that the approved project has sufficient financialresourcesto be implemented.

6.Intensify the inspection, audit and supervision of the compliance with disciplines in the management ofpublic investment; tight control the objectives and the effectiveness of the utilization of investments; ensure the transparency in the mobilization and management of loans; impose penalties on individuals and organizations committing violations against laws onpublic investmentunder the decision of theNational Assembly, the Government andcompetent authorities.

Article 7. Government s responsibilities

1. Expeditiously complete documents, prepare draft ofResolutionon investments forprojects of national importanceand send it to theNational Assemblyfor decision according to the Law on public investment.

2.Review and expeditiously complete the List of projects and the amount of capital allocated therefore and send it tothe Standing committee of the National Assembly of the Socialist Republic of Vietnamfor opinions before January 31, 2017, before assigning the medium-term public investment plan of the 2016 - 2020 period. Projects in the List of medium-term investment plans shall fully satisfy the requirements specified in the Law on public investment. The allocation for each project must be in accordance with the balancing capacity and must be conformable to the objectives, orientation, principles andorder of priorityin allocation of medium-term public investment of the 2016 - 2020 period.

3. Conduct,implementand direct Ministries, regulatory bodies and local governments to implement consistently and drastically measures for implementing the medium-termpublic investment planof the 2016 - 2020 period; conduct inspection and impose strict penalty for violations.

Article 8.Implementationorganization

1. The Government, Ministriesand regulatory bodies of central and local levelshall, within their functions and tasks, implement this Resolution.

2. The Standing committee of the National Assembly, the Finance and Budget Committee, the Council of Ethnic Affairs,othercommittees of the National Assembly, the State Audit, delegations of the National Assembly and deputies of the National Assembly shall supervise the implementation of this Resolution.

3. The Central Committee of Vietnamese Fatherland Front and its members and social organizations established according to law shall supervise and encourage people from all social strata to implement this Resolution.

This Resolution has been ratified in the 2nd Meeting Session of the 14th National Assembly dated November10, 2016.

The Chairman of the National Assembly

Nguyen Thi Kim Ngan