Resolution No. 27/NQ-CP dated February 21, 2017 of the Government on the Government’s Action Program for implementing the Resolution No. 05-NQ/TW on major policies for rennovation of growth models and improvement of growth quality, economic productivity and competitiveness and the Resolution No. 24/2016/QH14 on economic restructuring plan during 2016 – 2020

THE GOVERNMENT

Resolution No. 27/NQ-CP dated  February 21, 2017 of the Government on the Government’s Action Program for implementing the Resolution No. 05-NQ/TW on major policies for rennovation of growth models and improvement of growth quality, economic productivity and competitiveness and the Resolution No. 24/2016/QH14 on economic restructuring plan during 2016 – 2020

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

Pursuant to the Resolution No. 05-NQ/TW dated November 01, 2016 of the Fourth Plenum of the Twelfth Communist Party’s Central Committee on major policies for renovation of growth models and improvement of growth quality, economic productivity and competitiveness;

Pursuant to the Resolution No. 24/2016/QH14 dated November 08, 2016 of the National Assembly on economic restructuring plan during 2016 – 2020;

At the request of Minister of Planning and Investment,

DECIDES:

Article 1.The Government’s Action Program for implementation of the Resolution No. 05-NQ/TW dated November 01, 2016 of the Fourth Plenum of the Twelfth Communist Party’s Central Committee on major policies for renovation of growth models and improvement of growth quality, economic productivity and competitiveness and the Resolution No. 24/2016/QH14 dated November 08, 2016 of the National Assembly on economic restructuring plan during 2016 – 2020 is promulgated together with this Resolution.

Article 2.This Resolutiontakes effect on the signing date.

Article 3.Ministers, heads of ministerial-level agencies, heads of the Government’s affiliates, Chairpersons of people’s committees of central-affiliated cities or provinces, and relevant organizations and individuals shall be responsible for implementing this Decree.

For the Government

The Prime Minister

Nguyen Xuan Phuc

THE GOVERNMENT’S ACTION PROGRAM

IMPLEMENTATION OF THE RESOLUTION NO. 05-NQ/TW DATED NOVEMBER 01, 2016 OF THE FOURTH PLENUM OF THE TWELFTH COMMUNIST PARTY’S CENTRAL COMMITTEE ON MAJOR POLICIES FOR RENNOVATION OF GROWTH MODELS AND IMPROVEMENT OF GROWTH QUALITY, ECONOMIC PRODUCTIVITY AND COMPETITIVENESS AND THE RESOLUTION NO. 24/2016/QH14 DATED NOVEMBER 08, 2016 OF THE NATIONAL ASSEMBLY ON ECONOMIC RESTRUCTURING PLAN DURING 2016 – 2020
(Attached with the Government’s Resolution No. 27/NQ-CP dated February 21, 2017)

I. OBJECTIVES

Objectives of this action program include the economic restructuring, innovation of growth models and improvement of growth quality, economic productivity and competitiveness during 2016 – 2020. To be specific:

- Maintain and strengthen stable macroeconomic foundations; maintain the inflation rate below 5% per year; reduce the state budget deficit to less than 3.5% of gross domestic product (GDP) by 2020.

- Keep the annual public debt at not more than 65% of GDP in 2016-2020, and the government debt and national foreign debts at not more than 54% of GDP and 50% of GDP, respectively. By 2030, the public debt, the government debt and national foreign debts are expected not to exceed 60% of GDP, 50% of GDP and 45% of GDP, respectively.

- The ratio of on-balance sheet non-performing loans of credit institutions, non-performing loans sold to Vietnam Asset Management Company (VAMC) and non-performing loans which have been classified is expected to be reduced to below 3% by 2020 (excluding non-performing loans of ineffective commercial banks which have been handled according to specific plans approved by the Government). Reduce average interest rates on domestic loans to increase the competitiveness in comparison to that of ASEAN-4 countries. Enhance the scale and efficiency of stock markets, government bond markets, corporate bond markets and insurance markets. By 2020, the stock market capitalization is expected to account for approximately 70% of GDP, outstanding debt of bond market is expected to account for 30% of GDP and revenue in insurance sector is expected to account for not less than 4% of GDP.

- Withdraw the state capital from enterprises in sectors where 50% state owned charter capital is not required, keep the state capital at minimum level for sectors whose investment is rearranged and restructured by the State. By 2020, it is expected to have at least 1 million enterprises and 15,000 effective cooperatives and agricultural cooperative federations.

- The public investment management institution is expected to be strengthened to nearly meet that of 04 most developed countries in ASEAN (hereinafter referred to as ASEAN -4 countries”). The portion of the State investment is expected to account for approximately 31-34% of the total investment.

- The number of enterprises annually participating in innovation is expected to account for 30 -35% of the number of total enterprises during 2016 - 2020. The annual average growth rate of productivity is expected to exceed 5.5%; the intra-industry growth rate is expected to account for above 60% of the growth of productivity in 2020.

- By 2020, it is expected to have approximately 25% of number of workers completing training courses of 03 months or longer; the percentage of agricultural workers is expected to reduce to less than 40%.

- Total-factor productivity (TFP) is expected to contribute to 30-35% of the average growth rate in 2016 – 2020; narrow the competiveness gap with ASEAN-4 countries.

II. KEYS TASKS AND SOLUTIONS

1. Improve efficiency of macroeconomic operations:

a) Ministry of Planning and Investment, Ministry of Finance, Ministry of Industry and Trade, Ministry of Foreign Affairs, the State Bank of Vietnam and relevant ministries/agencies shall perform an efficient and close cooperation in management and synchronous and flexible implementation of macroeconomic policies with the aims of ensuring the macroeconomic stability, controlling the inflation rate, maintaining major economic balances and guaranteeing the national financial security.

b) The State Bank of Vietnam shall take charge of:

- Actively and flexibly implementing monetary policies. Managing interest rates and exchange rates in conformity with the market principles and macroeconomic development. Managing foreign currency and gold markets in effective manner; make increase of the foreign exchange reserves in conformity with the reality. Managing credit activities in effective way with paying special importance to the enhancement of credit service quality.

- Formulating the Scheme for prevention of dollarization and goldenization in the economy and submitting it to the Prime Minister for approval within Quarter 1, 2017.

c) Ministry of Finance shall take charge of:

- Instructing the strict compliance with laws and disciplines on budget collection and spending in authorities at all levels; managing spending according to state budget estimate; restructuring the budget spending in each sector, local government and authority oriented towards saving, elimination of wasteful expenditure and increase of efficiency of each spending item; gradually reducing the proportion of recurrent expenditures and rationally allocating funding for development investment expenditures which must be ensured to account for approximately 25-26% of total budget expenditure.

- Instructing central ministries and authorities, and local authorities in effectively implementing regulations on innovation of state budget management in accordance with the Law on state budget in 2015.

- Organizing the implementation of plans for loans and repayment during 2016 - 2020; intensifying the management of loans for the purpose of improving efficient use of public loans. Maintaining the restructuring of public debts and gradually increasing the on-lending proportion in the ODA structure and foreign concessional loans of the Government; minimizing the provision of government guarantee to new loans, mastering the maximum guarantee limit granted to two banks for social policies equal to the annual principal repayment amount and strictly controlling foreign loans of state-owned enterprises. Controlling debts at permitted limit under the Resolution of the National Assembly and strictly monitoring loans of local governments and investment funds originated from banks for social policies. Implementing measures to guarantee the national financial security.

2. Develop socialist-oriented market economic institutions:

a) Ministry of Finance shall take charge of:

- Formulating the scheme for balanced and comprehensive development of financial market, including monetary market, capital market, stock market and bond market (including government bonds and corporate bonds); the scheme for balanced development between credit services and non-credit services; the scheme for development of venture capital market, and submitting them to the Prime Minister for approval in 2017.

- Coordinating with relevant Ministries and regulatory bodies in reviewing and proposing amendments to laws on state budget, public debts, and management of public assets and resources with the aim of maintaining strict management and efficient promotion of such laws to serve the social – economic development.

- Coordinating with Ministry of National Defense and Ministry of Public Security in requesting the Government to promulgate Decrees on management and use of state budget for national defense and security activities.

b) Ministry of Planning and Investment shall take charge of:

- Formulating the Resolution on attraction, management and efficient use of foreign investments during 2016 - 2020 and with the vision to 2025 towards boosting the green and sustainable development; rejecting applications for approval for projects with large energy consumption and mining extraction projects that do not associate with intensive processing, waste resources, using obsolete technologies or pose high risks of environmental pollution; facilitating and intensifying the association with domestic enterprises in making investment in supporting industries, industries serving agriculture and services which have advantages and high-intellectual content; innovating investment promotion methods towards achieving key targets in each sector, region and partner; submitting the Resolution to the Government for promulgation in Quarter 3, 2017.

- Taking charge and coordinating with Ministry of Home Affairs and Provincial-level People’s Committees and relevant ministries/agencies in formulating projects on laws on special economic – administrative units; submitting them to the Government for submission to the National Assembly; formulating and submitting for promulgation of the Government s Decrees on development of key economic regions in order to efficiently and sufficiently discharge leading role and impulse the social - economic development of the whole country.

- Formulating the Overall Plan on national competition policies and submitting it to the Prime Minister for approval within Quarter 4, 2017.

c) Ministry of Natural Resources and Environment shall take charge of:

- Organizing the preliminary summing-up of the implementation of the Law on land; assessment of effects of policies on land on social – economic development and environment. Proposing amendments to laws on land to competent authorities for achieving the conformity with other relevant laws; promoting the development of land-use right market; facilitating the accumulation of land and promoting the role of land resources in social – economic development, especially large-scale agricultural production and high-tech farming; facilitating enterprises (including domestic and foreign enterprises) in acquiring land for performing investment and business activities; speeding up the equitization of state-owned enterprises provided that state-owned land must be strictly managed and effectively used; reducing land-related complaints and claims, especially those arising in course of land valuation for compensation, support and relocation while land is appropriated by the Government. Promptly proposing amendments to regulations that cause difficulties in investment and trading activities.

- Reviewing and evaluating the implementation of laws on environmental protection and biodiversity preservation, and rectifying them; formulating schemes on mobilization of resources and attraction of investment and private sector involvement in environmental protection duties; implementing necessary solutions for improving capacity and efficiency of laws on environmental protection and biodiversity preservation; zoning, dealing with and remediating polluted areas with attaching special importance to areas contaminated with chemical or pesticide residuals and key regions; managing cross-border pollution; effectively responding to climate change.

d) Ministry of Industry and Trade shall take charge and cooperate with relevant agencies in doing research and making amendments to the Law on competition, and submitting it to the National Assembly for approval within December, 2017.

dd) Ministry of Labour, War Invalids and Social Affairs shall formulate the law on amendments to the Labour Law in 2012 and submit it to the National Assembly for approval within 2017.

e) Ministry of Construction shall take charge of:

- Establishing the tool system for managing the development of real estate market towards stability and sustainability with complete and synchronous structure in connection with other markets of the economy to ensure the efficient and economic extraction and use of resources for improving the investment and development of real estate market, especially land; actively formulating scenarios and solutions for market regulation, control and stabilization.

- Doing research to formulate the Scheme for assessing the reality of real estate market, forecasting trends and proposing policies and measures to promote the stable and strong development of real estate market, and submitting it to the Prime Minister for approval within Quarter 2, 2017.

g) Ministry of Foreign Affairs shall take charge and cooperate with relevant authorities in lobbying other countries for recognition of market economy for Vietnam.

h) Relevant ministries/regulatory bodies shall, within the ambit of their assigned functions and duties, do research and propose amendments to laws on labour, family registration, farming land-use right and rights to access to public services with the aim of facilitating domestic settlement and labor movement.

3. Promote the synchronous and modern development of social – economic infrastructure:

a) Ministries and regulatory bodies shall review and propose amendments to the planning for construction of social – economic infrastructure to ensure general efficiency and systematic operation, especially transportation, electricity, water, irrigation, education, health care, information technology and telecommunications infrastructure systems, solid waste collection and treatment systems, and planning for environmental protection; review and propose amendments to urban technical infrastructure planning; send reports thereof to the Government in Quarter 2, 2017.

b) Ministry of Planning and Investment shall take charge of compiling the Law on Public-Private Partnerships towards diversification of forms of public-private partnerships in appropriate sectors and fields, openness, transparency, stability and impartiality with policies for management and effective use of investment funding for each specific project; Paying attention to the investment in infrastructure in remote regions, ethnic minorities areas, and former revolutionary bases.

c) Ministry of Construction shall take charge of doing research and requesting the Government to promulgate policies on urban management and development towards synchronization, sustainability, environmental friendliness and adaptation to climate change with the aims of improving the quality of growth and competitiveness of urban areas. Complete legal framework and management tools for monitoring the investment in and development of urban areas in conformity with planning and plans; prioritize the development of new urban areas in order to reduce burden on central areas of cities. Formulate laws on urban development, architecture and water supply and submit them to the National Assembly for promulgation before 2019. Organize the implementation of national programs/schemes on urban development in an effective manner in order to gradually improve the quality and modernize urban infrastructure, and promote the growth in regions facing difficulties such as highlands, coastal areas and islands.

d) Ministry of Planning and Investment and Ministry of Finance shall, within the ambit of their assigned functions and duties, cooperate with relevant authorities and focus resources on the investment and construction of environment-friendly infrastructure in synchronization with modern works, especially large-scale and important works which may influence on the social – economic development of regions nationwide; gradually modernize technical infrastructure systems that are functioned to make connection between regions such as expressways, highways, railways and airports, etc.

dd) Ministry of Transport shall take charge of developing the construction, improvement and renovation of roadways and expressways, especially North – South expressway, inland waterways, coastal roads and Long Thanh International Airport Project.

e) Ministry of Industry and Trade shall take charge of doing research on the Scheme for construction of cross-border economic cooperation zones and submitting reports thereof to the Prime Minister in 2017.

4. Develop human resources to meet development requirements:

a) Ministry of Education and Training and Ministry of Labour, War Invalids and Social Affairs shall, within the ambit of their assigned functions and duties, maintain the effective implementation of the Resolution of the Party Central Committee on radical changes in education and training in order to create fundamental and strong developments in educational and training quality and efficiency to meet social demands and international integration with attaching a special importance to:

- Reviewing, arranging and re-planning the network of higher education institutions and vocational training institutions in association with the social - economic development as well as demands of labour market nationwide, that of each region and province. Improving training quality of teacher training institutions. Effectively performing the enrolment of universities and colleges. Formulating policies on classification of educational activities in association with vocational training and development of vocational skills for students of upper secondary schools.

- Continuing innovation of training contents and methodologies in order to improve the quality and efficiency of higher education and vocational education; improving training quality of some universities and training majors in access to levels of developed countries of ASEAN and in the world.

- Performing division of state management levels in education and training sector; speeding up the grant of autonomy and improving accountability of educational and training institutions and implementation of autonomy at public universities and colleges. Improving the management of output quality of higher education institutions; publishing information about the institution’s conditions to ensure training quality; improving the inspection of educational quality in order to classify and rank higher education institutions.

- Improving the quality of teaching and learning foreign languages at training levels. Speeding up the application of information technology to management, teaching activities and research to make contribution to the administrative reform and enhance training quality.

- Intensifying the private sector involvement in education and training sector, especially pre-school education, vocational training and higher education. Improving the efficiency of investments in education and allocating sufficient budget to the improvement of classrooms, libraries and restrooms; improving accommodation and travel facilities for boarders who live in remote regions; guaranteeing the equality in education and training. Mobilizing the contribution of community to raise investments in material facilities and support operation of education and training institutions; particularly, encouraging enterprises to participate in vocational training. Encouraging the development of private education and training institutions.

- Intensifying the application of international standards to the formulation and innovation of training programs, and organization of training activities and scientific research; encouraging higher education institutions and vocational training institutions to receive transfer of advanced programs from foreign countries; performing training activities according to the Vietnamese Qualifications Framework.

- Formulating regulations on bridge programs from vocational education to higher education with the aims of guaranteeing training quality and enhancing efficiency in training activities as well as providing chances of studying and improving capacity to learners.

b) Ministry of Planning and Investment shall take charge of doing research and formulating the Plan for development of Vietnam s human resources during 2016 – 2020 with a vision by 2025 on the basis of reviewing and evaluating the implementation of the Plan for development of Vietnam s human resources during 2011 – 2020 approved by the Prime Minister at Decision No. 1216/QD-TTg dated July 22, 2011 towards association of training activities with enterprises demand for workers in order to make rapid and considerable change in human resources development, especially high-quality human resources for potential sectors/fields with advantages; improving qualifications and competence in state management and corporate management .

c) Ministry of Justice shall take charge of formulating the Scheme on establishment of the contingent of international law attorneys and experts who have professional competence and experience in resolving international commercial disputes.

5. Develop and promote science & technology transfer:

Ministry of Science and Technology shall take charge and cooperate with relevant ministries, regulatory bodies and local governments in:

- Focusing on the improvement of enterprises’ capacity for technological adoption towards movement of key and subject matters of research activities towards enterprises.

- Formulating policies on technology import by 2025. Focusing on investments in research on applications with the aim of speeding up the improvement of domestic technological capability and capacity for designing, manufacturing and applying techniques and technology to prioritized sectors and fields.

- Formulating and implementing programs for promotion and transfer of technology from countries that have source technologies and/or advanced technologies in fields which are focused in course of industrialization and modernization of Vietnam.

- Coordinating with Ministry of Planning and Investment in proposing efficient solutions for encouraging foreign invested enterprises to transfer technologies to Vietnamese enterprises, establish Research and Development (R&D) Institutions in Vietnam and employ/use Vietnamese engineers and scientists.

- Intensifying Public-Private Partnership mechanism with the aim of encouraging enterprises in developing projects on technological innovation, initiatives, research and development. Increasing financial scale of enterprise assistance funds, especially small and medium-sized enterprises that make investment in technological innovation; expanding forms of assistance, lending and loan guarantee by state-owned funds for projects on technological innovation of enterprises; establishing institutions guaranteeing loans provided to projects on research and innovation of technologies so that enterprises may apply for loans from commercial banks.

- Attaching special importance to the improvement of qualifications of technicians, technological managers and enterprise managers. Coordinating with Ministry of Education and Training in formulating incentive policies for movement of highly-skilled workers from research institutions or higher education institutions to enterprises.

- Investing in the establishment and operation of national databases of information concerning technologies, technological experts and technology intermediaries in order to assist enterprises in selecting technologies that need to be innovated or transferred. Improving exercising effect of intellectual property rights, valuation of intellectual property and contribution of intellectual property to enterprises.

- Developing innovative startup ecosystems with the aims of promoting the establishment of innovative startup enterprises that have potential for growth and products and services oriented towards exportation to international markets.

- Establishing and operating database systems on benchmarking and best practices of productivity to serve enterprises.

6. Step up re-structuring of state-owned enterprises:

a) Ministry of Finance shall take charge of completing the Scheme for re-structuring of state-owned enterprises with the focus on state-owned groups and corporations during 2016 – 2020, and submitting it to the Government in Quarter 1, 2017.

b) Ministry of Planning and Investment shall:

- Formulate the list of state-invested sectors in accordance with regulations in the Law on management and utilization of state capital invested in business sectors, and submit it to the Prime Minister for promulgation in Quarter 1, 2017.

- Complete the Scheme for establishment of owner’s representative entities in state-owned enterprises and submit it to the Government in Quarter 1, 2017.

c) Ministries, regulatory bodies, people’s committees of provinces or central-affiliated cities, state-owned groups and corporations shall review and submit consolidated reports to competent authorities on projects that are unprofitable for several years without remedial capacity by June, 2017; implement measures against such unprofitable projects within their competence, including declaration of bankruptcy method, and complete the implementation of such measures by June, 2018.

d) Ministries and people’s committees of provinces or central-affiliated cities shall, within their competence and by June 2017, consolidate and publish the list of enterprises which do not require the state to hold more than 50% of charter capital, including the plan and schedule for annual withdrawal of state capital to ensure that the withdrawal of state capital must be completed by 2019.

dd) State-owned groups and corporations shall formulate and implement plans for comprehensive re-structuring during 2016 – 2020 with a vision by 2025, including re-structuring of ownership, business sectors and products, financial and portfolio restructuring, technological innovation and application of modern management theories under international practices.

e) The State Capital and Investment Corporation (SCIC) and relevant ministries, regulatory bodies, people’s committees of provinces or central-affiliated cities shall complete the transfer of enterprises which must be transferred as regulated to SCIC by December, 2017.

g) Ministries, regulatory bodies, local governments, stated-owned groups/corporations and relevant organizations and individuals must comply with the plan for equitization and withdrawal of state capital in an obvious and transparent manner according to the market mechanism; intensify the inspection and auditing to avoid the loss of state capital or assets; formulate legitimate policies for management of funding for transfer or merging of enterprises; equitized enterprises must carry out the registration of transactions and listing on securities market for a period of one year as from the date of initial public offering; attract qualified strategic investors to reduce the portion of capital owned by the state to the rate suitable for effective change in corporate management.

7. Restructure financial market with focus on credit institutions:

a) The State Bank of Vietnam shall:

- Continue cleaning up finance and improving managerial capability of credit institutions in accordance with regulations of law and in conformity with international practices; gradually handle and eliminate cross investment or cross ownership in relevant credit institutions; accelerate the withdrawal of capital invested in related business sectors by commercial banks; by 2020, it is expected that commercial banks have their own capital satisfactory to the Base II including at least 12 – 15 commercial banks having successfully applied Basel II. 

- Promptly implement the approved Scheme for restructuring of credit institutions in association with implementation of measures against non-performing loans during 2016 – 2020.

- Generally complete the restructuring of credit institutions and step up the settlement of non-performing loans by adopting measures in conformity with the market mechanism on the basis of conservatism principle to ensure rights and benefits of depositors and stability and security of credit institutions system.

- Take charge of formulating and submitting for promulgation of the Law on restructuring of credit institutions and settlement of non-performing loans in 2017.

- Intensify the inspection of risk management by credit institutions.

b) Ministry of Justice shall:

- Take charge and cooperate with relevant authorities and organizations in doing research and perfecting written guidance on procedures for sale of assets at auction in conformity with regulations of relevant laws.

- Continue instructing civil judgment enforcement authorities in cooperating with and assisting Vietnam Asset Management Company (VAMC) and credit institutions in enforcing the Court s judgments or decisions on collateral handling; instruct Directorate of Civil Judgment Enforcement in cooperating with credit institutions in reviewing and consolidating Court’s effective judgments and decisions which are not yet enforced or are being enforced and stepping up the enforcement of outstanding cases.

8. Continue restructuring investment with focus on public investment:

a) Ministry of Planning and Investment shall take charge of:

- Formulating the Scheme for restructuring of public investment during 2016 – 2020 and submitting it to the Prime Minister in Quarter 1, 2017.

- Formulating the Scheme for completion of regulations on order of priority in giving approval for public investment projects and evaluation of investment results with the aim of enhancing efficiency of utilization of sources of funding for public investment for period up to 2020 with a vision towards 2025, and submitting it to the Prime Minister by August, 2018.

- Perfecting public investment management system according to the international practice to ensure that the public investment quality shall be equal to that of ASEAN-4 countries by 2019; giving priority to innovation in the ways of formulation, verification, assessment and selection of public investment projects.

- Intensifying talks on policies with enterprises in order to resolve difficulties encountered by investors (promote in-country investments).

- Perfecting policies and mechanism for management and utilization of ODA and concessional loans from foreign donors towards movement from allocated grants to on-lend grants in association with efficient management and utilization of loans.

- Reviewing and publishing contents or duties that need social investment in order to formulate specific incentive policies for investment attraction.

- Completing and developing in the whole country the system of information about investments with state funding (including database on public investment projects funded by state budget, ODA or Government Bonds, etc.); formulating regulations to ensure the effective development of information technology applications; instructing central ministries/regulatory bodies and local governments in applying information technology to the management and formulation of reports on public investment plans.

b) Ministry of Finance shall take charge and cooperate with ministries, regulatory bodies and local governments in quickly implementing measures to prevent and combat corruption, loss or wastefulness of state capital and/or assets; preventing and handling the transfer pricing and tax evasion by foreign invested enterprises.

c) Ministry of Construction shall take charge of:

- Formulating the Scheme for completion of the system of technical - economic norms, regulations, standards, investment rates and prices in construction sector, and submitting it to the Prime Minister in Quarter 2, 2017.

- Establishing the database on construction prices and announcing construction price indexes in the whole country in compliance with regulations.

d) Ministries and authorities in charge of managing construction works shall review, amend or promulgate within their competence technical – economic norms, regulations and standards specialized in construction in synchronous way to serve management requirements.

dd) Relevant ministries, regulatory bodies and authorities shall review and perfect the system of technical – economic norms, regulations, standards, construction costs and investment rates in economic sectors for strictly and efficiently managing public investment activities.

9. Innovate and restructure public service providers:

a) Ministries, regulatory bodies and people’s committees of provinces or central-affiliated cities shall:

- By June, 2017, review, consolidate and classify public service providers in sectors and local areas under their management; determine services whose fees are fully covered by state budget, those partially paid by service users and those fully paid by service users; submit reports thereof to the Prime Minister in Quarter 3, 2017.

- Accurately, rationally and sufficiently calculate costs of services which are fully or partially covered by state budget, and those regulated by the government; change costs of public services according to the market mechanism in association with support for beneficiaries of benefits from government’s policies and the poor; grant the full autonomy in terms of finance, organizational structure, payroll personnel and operation to providers of the said public services.

- With regard to other public services and providers, fully implement market liberalization policies; corresponding public service providers are free to conduct business activities and provide public services, and gain the autonomy in carrying out agreements and deciding service costs in conformity with the law of market; simultaneously, increase the fulfillment of social responsibility by non-business service providers.

- Arrange and restructure public service providers, and carry out the equitization of qualified public service providers, excluding hospitals and schools; dissolve ineffective public service providers; avoid promoting equitization to privatization and socialization to commercialization of necessary public services.

b) Ministry of Home Affairs shall take charge of formulating the Scheme for innovation of management and financial mechanism and restructuring of public service providers, and submitting it to the Central Executive Committee of the Communist Party in 2017.

c) Ministry of Justice shall take charge of improving quality of public services in the field of judicial support such as notarization, auction sale of assets, judicial expertise, legal aid, bailiff services, assets management and liquidation, and effectively organize the implementation of strategies, plans and/or schemes in this sector with the aims of maintaining the sustainable development, satisfying requirements for judicial reform and international integration, and making contribution to the thorough operation of the market mechanism under the state management.

10. Step up the agricultural restructuring in association with the establishment of advanced rural areas:

a) Ministry of Agriculture and Rural Development shall take charge and cooperate with relevant ministries, regulatory bodies and local governments in:

- Doing research on amendments to the Scheme for agricultural restructuring in association with the establishment of advanced rural areas, promotion of transfer and application of science, technologies and advanced production techniques to the agricultural production towards a clean, high-tech and eco-friendly agriculture; change from quantity-oriented production to quality, efficiency and high value added-oriented production in conformity with the climate change and sea level rise in order to develop products that can promote comparative advantages of each local area/ region and those of the whole country.

- Reviewing and making amendments to agricultural production plans with the aims of promoting advantages of each area/ region and establishing sustainable material areas for agricultural products processing industry to meet market demands. Reviewing and modifying land area devoted for paddy at an appropriate rates towards change into cultivation of plants and domestic animals with high value.

- Doing research, reviewing and continuing the innovation and development of appropriate production forms; developing advanced, efficient and verified production models in a large scale; developing forms of cooperation or association in production, processing and sale of agricultural products according to the value chain with the connection between domestic and overseas consumption systems; changing from the household-based production into cooperative or association production models with a large scale; formulating programs for development of agricultural cooperatives and agricultural cooperative unions.

- Intensifying measures to implement the National target program for establishment of advanced rural areas during 2016 – 2020. Focusing on the development of sustainable production of goods, improvement of production efficiency and increase of income earned by residents in rural areas. By 2020, 50% of total communes is expected to satisfy standards of an advanced rural area.

- Studying and formulating regulations and/or policies for investment attraction in agricultural and rural areas, and submitting them to competent authorities for promulgation.

- Continuing promotion of programs for establishment of Vietnam s trademarks of agricultural and aquatic products. At the same time, continuing the development, investment and modernization of agricultural and rural infrastructure systems; strengthening forces for prevention and mitigation of natural disasters, coping with climate change, efficient and sustainable use of transnational water resources and protection of ecological environment.

- Studying on modification and improvement of quality standards of agricultural products according to international standards. Formulating enterprise and farmer support programs in conformity with modified quality standards. Promoting the comprehensive application of VietGAP and similar standards to the agricultural production, and developing markets for products produced by applying VietGAP.

- Studying on amendments to incentive policies and/or measures for development of intensive and refined processing of agricultural, forest and aquatic products; development of industries and services in rural areas with the aims of creating jobs, changing labour structure and improving physical and spiritual life of people.

b) Ministry of Planning and Investment and Ministry of Finance shall cooperate with ministries, regulatory bodies and local governments in focusing on the development, investment and modernization of agricultural and rural infrastructure systems; strengthening forces for prevention and mitigation of natural disasters, coping with climate change, and efficient and sustainable use of transnational water resources; protecting the ecological environment.

c) Ministry of Natural Resources and Environment shall instruct and inspect the formulation, approval and implementation of plans for land use as regulated to ensure that land resources shall be allocated to agricultural and non-agricultural production in a suitable, economic, efficient and sustainable way in conformity with natural, social - economic conditions of each region/local area; amend unsuitable plans to prevent conflicts of land use between sectors or product lines of the same field which may cause adverse impacts on rights and interests of investors.

11. Radically restructure industries:

Ministry of Industry and Trade shall take charge of:

- Innovating incentive policies and mechanism for developing private enterprises in priority industries in the director of providing support with specific focus and priority. Formulating Decision on incentive policies for encouraging large-scale private enterprises to make long-term investments and promote trademarks and products of high domestic and international competitiveness, and submitting it the Prime Minister for promulgation by 2018.

- Reviewing and amending policies for development of key industries. Formulating policies for development of consulting services for industrial investments; developing and upgrading database systems on Vietnam s industry (including database on supporting industries).

- Studying on formulation of the Resolution on policies and solutions for promoting the fast and sustainable growth of Vietnam’s industry in the context of integration, and submitting it to the Central Executive Committee of the Communist Party for promulgation in 2017.

- Reviewing, amending and effectively implementing regulations on encouragement of development of rural industries towards sustainable development of industries and handicrafts industry in rural areas in association with environmental protection.

12. Restructure and rapidly develop services, and maintain the growth rate of services that is higher than GDP growth rate:

a) Relevant ministries and regulatory bodies shall focus on study on proposals for policies for development of some potential services of high intellectual content and technologies such as financial, banking, Maritime, logistics, petroleum engineering, aviation and commercial services; education and training services; medical and health care services; auditing, consulting and legal services, etc.

b) Ministry of Planning and Investment shall take charge and cooperate with ministries and local governments in studying on the formulation of the Scheme for development of logistics services and infrastructure with the aims of improving the national competitiveness and promoting the change in economic structure, and reporting it to the Prime Minister.

c) Ministry of Industry and Trade shall take charge of:

- Studying on amendments or abrogation of applicable regulations on import & export licensing and market management in the direction of facilitating and reducing costs for enterprises and in conformity with international treaties to which Vietnam is a signatory.

- Formulating the Strategy for domestic trade development by 2025 with a vision by 2035, in which, the development of retail systems, restructuring of domestic market and cross-border trade market, production promotion and encouragement of consumption of Vietnamese products, etc. are attached with special importance, and submitting it to the Prime Minister in 2017.

- Cooperating with relevant ministries and regulatory bodies to effectively implement Vietnam’s commitments in the World Trade Organization (WTO), ASEAN economic community and Free Trade Agreements (FTA) to which Vietnam is a signatory with the aims of diversifying and expanding import & export market.

d) Ministry of Foreign Affairs shall take charge of:

- Building up and strengthening the relationship with foreign countries and partners, especially strategic, comprehensive and potential partners, and neighboring countries with the aims of expanding market, attracting investment and technological transfer to serve the economic restructuring.

- Cooperating with relevant ministries and regulatory bodies to instruct Vietnamese overseas missions to develop and improve efficiency of external economic promotion.

dd) Ministry of Culture, Sports and Tourism shall take charge of and cooperate with relevant ministries, regulatory bodies and local governments to thoroughly and effectively implement the Scheme for development of tourism industry into a key economic sector by 2020.

13. Develop Vietnam’s private economic sectors:

a) Ministry of Planning and Investment shall perfect and submit to the National Assembly for considering approval for the Law on support for small and medium-sized enterprises to intensify the regulation of enterprise development and support programs; thoroughly review and propose amendments to laws and legislative documents on investment and business management to ensure the consistency, openness and transparency, avoid the overlapping and conflicts in laws, and facilitate investment activities of enterprises.

b) The Office of the Government cooperate with ministries, regulatory bodies and local governments to step up the administrative reform, relieve burden of expenditures on enterprises, especially small and medium-sized enterprises.

c) Ministry of Home Affairs cooperate with ministries, regulatory bodies and local governments to reform working style, methods and attitude of officials and public employees in the direction of supporting and serving enterprises, under open and transparent manner, strictly applying disciplines and rules to officials and public employees, state authorities, and handling negativism and harassments.

d) Each people’s committee of province or central-affiliated city shall:

- Organize at least two public talks per year with enterprises and press agencies in order to timely resolve difficulties encountered by enterprises in the province; set up and publish the hotline number on its website to receive questions and give response to enterprises; instruct and assume responsibility to effectively develop the single-window system and the connected single-window system in processing administrative procedures at state administrative authorities at all levels.

- Focus on thorough and efficient implementation of resolutions by the Government on innovation of business environment and improvement of national competitiveness; the Resolution No. 35/NQ-CP dated May 16, 2016 by the Government on enterprise development and support policies by 2020.

- Instruct relevant departments and regulatory bodies, and the people’s committees of district not to establish economic or civil relations.

- Review and amend policies, procedures and formalities for approval for supports given to enterprises, especially small and medium-sized enterprises and local technological development funds in the direction of simplifying procedures for receiving supports and giving supports with specific targets.

- Review, make amendments or abrogation of plans for business sectors in conformity with the market reality and business rights of enterprises.

- Conduct inspections in accordance with regulations of law (not exceeding one inspection per year); conduct inter-sectorial inspection to inspect many contents in the one inspection, except for the cases where the inspection is made upon the discovery of signs of violations against the law.

- Expedite its subordinates to strictly comply with regulations on land, construction, environment, business registration, investment and administrative procedures to facilitate enterprises.

14. Change methods of association or cooperation between local governments in regional economic development; effectively perform the urbanization process:

a) Ministry of Planning and Investment shall take charge of formulating the Law on planning and its instructional documents, and submitting them to the National Assembly for promulgation as soon as possible. Study on the ability to integrate provincial-level development plans and regional-level development plans. Complete and improve quality and efficiency of regional economic development plans; propose solutions for improving the competence of the Northwest Steering Committee, the Central Highlands Steering Committee and the Southwest Steering Committee to organize the implementation of regional development plans as well as instruct and supervise the association and cooperation between local governments in each region.

Promulgate a specific mechanism to request local governments to cooperate in formulating cooperation schemes and/or agreements, focusing resources on pilot implementation of cooperation scheme for social – economic development; cooperate with relevant authorities to promulgate and implement policies for investment attraction and promotion, especially investment in potential sectors/fields of high competitive advantages.

b) Ministry of Home Affairs shall study, review and amend functions and duties of local governments and formulate regulations on management of regional economic development.

c) Relevant ministries, regulatory bodies and local governments shall effectively perform the urbanization process in the context of industrialization and modernization; strictly monitor the urbanization process and perfect urban economic development models, organizational structure, functions, duties and administration methods of urban governments.

d) Ministry of Construction shall review and perfect the overall plan for national urban system with a vision by 2050, the Strategy for national urban development during 2020 – 2030, and submit them to the Prime Minister in 2018; study and perfect the models for urban management and development, organizational structure, functions, duties and management methods of urban governments, and speed up the training for urban management officers at all levels.

15. Innovate the growth models associated with national defense and security guarantee:

a) Ministry of National Defense shall take charge of formulating and implementing the strategy for development of advanced and modern security and defense industries. Projects for social – economic development in defense areas, border routes and strategic locations must satisfy all of security and national defense requirements. Perfect specific policies for enterprises providing security and defense services.

b) Ministry of Planning and Investment shall study on policies for healthy development of marine economic sectors in association with protection of the national sovereignty and improvement of living conditions for residents in sea areas and islands. Encourage economic enterprises of all types of ownership to invest in and develop petroleum exploitation and processing; sea ports, shipbuilding and marine transport; seafood catching and processing, fishing logistics services; sea and island tourism services. Implement policies for supporting fishers to develop fishing industry (especially, offshore fishing) and aquatic product environment in association with protection of sovereignty over sea and islands. Establish fishing logistics facilities and shelters; facilitate and encourage people to settle in islands.

c) Ministry of Public Security and Ministry of National Defense shall, within the ambit of their assigned functions and duties, determine regions where security and defense tasks must be guaranteed in provinces to use as the basis for local governments to implement social – economic development projects and guarantee security and national defense.

16. Innovate methods, improve capacity, effect and efficiency of state management:

a) Ministries, regulatory bodies and local governments shall continue strictly implementing regulations on downsizing associated with salary reform; thoroughly change process and methods of recruitment, employment, salary payment, assessment and appointment of officials; appoint officials based on their working performance and achievements; enhance accountability of holders of leading positions for their subordinate officials and performance results of assigned duties.

b) Ministry of Home Affairs shall take charge of:

- Studying on restructuring of organizational structure, functions and duties of ministries, regulatory bodies and local governments in conformity with management methods, and establishing management and serving government.

- Intensify the application of information technology, electronicization of state management operations and private sector involvement in setting up state management data within the scope of management by the Ministry of Home Affairs.

- Establish a well-arranged, thorough, clean-fingered and effective apparatus of the government. Intensify disciplines and rules of state authorities and leading officials.

- Cooperate with Ministry of Justice and relevant ministries and regulatory bodies to continue the institutional reform; establish and improve quality of officials and public employees with attaching a special importance to the reform of salary policies with the aims of encouraging officials and public employees to effectively fulfill their duties, and improving the quality of administrative and public services.

c) Ministry of Industry and Trade shall improve the capacity of state authorities performing market surveillance and management functions.

d) Relevant ministries, regulatory bodies and local governments shall, within the ambit of their assigned functions and duties, improve their capacity of regulation, management and inspection according to the level of risks and the compliance with the law by managed subjects; strictly handle acts of violations against the law.

dd) Ministry of Public Security shall continue detecting, investigating and strictly handling acts of violations against the law and providing advice to the Government about state management shortcomings and weaknesses in all sectors in order to work out solutions for preventing crimes.

III. IMPLEMENTATION ORGANIZATION
1. Ministers, heads of ministerial-level agencies, heads of the Government’s affiliates, Chairpersons of people’s committees of provinces or central-affiliated cities, within the ambit of their assigned functions, powers and duties, shall:

a) Formulate and promulgate plans for implementation of this Government’s Resolution, the Resolution No. 24/2016/QH14 of the National Assembly and the Resolution No. 05-NQ/TW of the Fourth Plenum of the Twelfth Communist Party’s Central Committee in Quarter 1, 2017; consider and make appropriate amendments to action programs/plans of ministries, regulatory bodies and local governments for implementation of the social – economic development plan in 2017 and the social – economic development plan during 2016 - 2020.

b) Instruct the performance of solutions and duties within their functions and competence in conformity with the reality of each sector/field and each local area. Ministries, regulatory bodies and local governments shall promptly implement clearly assigned duties which have been instructed in writing by the Government or the Prime Minister and do not require the formulation of further schemes in order to ensure the timely and efficient implementation of the Government’s Action Program and specific action programs/ plans of ministries, regulatory bodies and local governments.

2. Ministry of Planning and Investment shall take charge and cooperate with relevant ministries/regulatory bodies to submit proposals for the establishment of the National Steering Committee for restructuring of economy and innovation of growth models.

3. Ministry of Justice shall take charge and cooperate with relevant authorities in formulating and sending reports to the Government for submission to the National Assembly at the 3^rdSession of the 14^thNational Assembly on the Program for formulation of laws and ordinances in 2018 and amendments to the Program for formulation of laws and ordinances in 2017 with paying attention to laws and ordinances need to be promulgated or amended in order to assist and promote the restructuring of economy and innovation of growth models.

4. Ministry of Planning and Investment shall take charge of instructing contents and methods of determining macroeconomic indicators of the whole country and of provinces/cities to use as the basis for comparison and report on the implementation of the Resolution, including economic productivity, total-factor productivity and intra-industry productivity growth rate contributed to the economic productivity growth, etc.

5. Ministers, heads of ministerial-level agencies, heads of the Government’s affiliates, Chairpersons of people’s committees of provinces or central-affiliated cities shall instruct, inspect and expedite the implementation of the Government’s Action Program and the action program of each ministry, authority and province; submit annual reports thereof to Ministry of Planning and Investment by December 10^thfor sending consolidated report to the Government.

6. Ministry of Planning and Investment shall take charge and cooperate with relevant ministries, authorities and local governments in managing and expediting the implementation of this Action Program, submitting periodical reports thereof and proposing necessary measures to ensure the synchronous and efficient implementation of this Action Program to the Government or the Prime Minister; closely following relevant contents in the working programs of the Central Executive Committee of the Communist Party, Politburo, Secretariat, National Assembly and Standing Committee of the National Assembly to prepare reports as regulated.

7. Ministry of Information and Communications shall take charge and cooperate with Ministry of Planning and Investment, the Central Committee for Propaganda, the Central Committee of the Vietnamese Fatherland Front and relevant ministries, authorities and local governments in efficiently performing communication and propagation activities with the aims of increasing awareness, achieving social consensus and promoting the spirit of responsibility of leading persons, efforts of regulatory bodies, governments at all levels, enterprises and people in order to successfully achieve objectives of innovation of growth models and restructuring of economy.

8. During the implementation of this Resolution, ministries, authorities and local governments are requested to actively propose necessary amendments to specific contents of this Action Program to Ministry of Planning and Investment that shall take charge of sending consolidated report thereof to the Government for consideration./.