Resolution No. 47/NQ-CP dated July 08, 2014 of the Government on the Government’s Regular Meeting – June 2014

THE GOVERNMENT

Resolution No.47/NQ-CP dated July 08, 2014 of the Government on the Government’s Regular Meeting – June 2014

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Government’s Decree 08/2012/ND-CP dated February 16, 2012 on promulgating the Working regulation of the Government;

Based on the discussion of the Cabinet’s members and the conclusion of the Prime Minister at the Government’s regular meeting held in June 2014,

RESOLVES:

1. Regarding socio-economic performance and review on the direction of the Government and the Prime Minister in June and first six months of 2014:

Coming in 2014, our country’s economy has gained a great deal of advantages but also faced quite a few of difficulties and challenges. There are many turbulent situations that take place around the world and in the region. From the beginning of May, China has ruthlessly and illegitimately moved their oil rig Hai Duong

981 to our 200-nautical-mile exclusive economic zones and continental shelves of Vietnam. This is undeniably perceived as a serious encroachment on Vietnam’s maritime sovereignty; a serious infringement of international law, especially United Nations Convention on Law of the Sea (UNCLOS) in 1982; a breach of the Declaration on Conduct of the Parties in the South China Sea (DOC) that China has entered into; a contrast to the mutual consent between the high-ranking leaders of Vietnam and China; a terrible threat against the regional peace, stability, security, maritime, airway safety and freedom, cooperation and development as well as an adverse impact on our socio-economic growth.

In the first six months, thanks to great efforts from regulatory bodies, business community and people nationwide in coordination with regular and timely directions from Political Bureau of the Central Committee Communist Party of Vietnam, our socio-economic performance continues to make considerable changes and gain remarkable achievements in most of sectors. Macroeconomic targets are kept stable and balanced; GDP estimate in the first 6 months grows by approximately 5,18% higher than in the same period of two previous years; the inflation is curbed and consumer price slightly surges; general interest rates continue to drop; foreign currency reserve soars; balance of payments surplus is still high; exchange rates, forex and gold markets remain relatively stable; export turnover and surplus increase steadily; State budget revenues are fairly high. A rise in industrial and agricultural production as well as services remains higher than in the same period of the previous year. Policies for those who have been devoted to meritorious services as well as other initiatives on employment generation, poverty reduction, social security, welfare, healthcare, education, training, science, technology, culture, sport, information, natural resource and environmental protection, climate change response have been developed as proposed and achieved positive results.

Finding proper peaceful solutions in conformity with the international law to emphasize our firm statements on our island sovereignty, peace sustainability, stability as well as our strong determination to succeeding in on-the-spot struggles along with political, diplomatic and communicative efforts in order to request China to move its oil rig and guard ships away from Vietnam’s waters have earned our people s great consent and international community s support. Concurrently, those who breach the laws, attack law enforcers as well as destroy properties of the State, individuals and enterprises, especially foreign-invested enterprises, have been detected and imposed with strict punishments in order to improve social security and order; Different practical approaches have been taken to support employees and enterprises who suffer from losses to resume their normal production as soon as possible. The Government also requests its regulatory bodies and local authorities to implement the unanimous preventive solutions to avoid the recurrence of this unexpected situation in order to provide security and safety for foreign individuals and organizations in Vietnam as well as sustain the favorable environment for the business and investment sectors.

The unanimous directions of the Government and its regulatory bodies have been observed and implemented unhesitatingly while administrative disciplines have been also intensified as well. There has been an appropriate concentration on the better improvement to institutional affairs and the implementation of the Constitution of 2013; compose and amend important laws such as Public Investment Law, Corporate Law, Bankruptcy Law; amend and introduce many guiding documents on the implementation of laws, ordinance and quality assurance instruments. Examining and expediting as well as immediately solving any difficulty in production and business sectors have been carried out. The responsibility of leadership members has been promoted.

Despite this excellent performance, the production and trading are faced with many difficulties. Aggregate demand slowly rises; credit growth is still low; the bad debt settlement is slow; the consumption of products, especially rice and other agricultural products, is faced with many difficulties. An increase in the number of enterprises who are dissolved and terminated is still high. The real estate market has been recovered slowly. The equitization of state-owned enterprises and their withdrawal of investment capital are unsatisfactory. The competitive capability of our economy and enterprises is still low. Employment, income and living standards of some population, especially poor households and minority communities, are faced with many difficulties; many graduates are unemployed; rate of young people who are unemployed is high. Epidemic control is not satisfactory; food safety and hygiene are improved very little. The outstanding documents that provide details and instructions for the legislative enforcement have not been thoroughly solved. Administrative rules and disciplines are somewhere or somehow strictly observed. The deficiency in maintaining social safety, order, criminal prevention and fighting, network safety and security has been revealed.

In the last 6 months, world economy continues to recover its growth rate but remains lower than the forecast figure earlier this year as well as contains many hidden risks. The East Sea dispute continues to become more and more unpredictable, which can affect a great deal of our socio-economic facets and require regulatory bodies to keep up with the actual situation to take proper measures in time in all sectors. The Government requests Ministries, their regulatory bodies and local authorities to uphold the achieved results and conquer any difficulty and challenge; make our utmost efforts in protecting the sovereignty, securing our political affairs and maintaining social safety and order; drastically carry out our unanimous missions and approaches to the resolutions of the Communist Party, National Assembly, Government, especially Resolution No.01/NQ-CP and other Resolutions in the Government s regular meetings as well as extremely strive to achieve proposed socio-economic targets, including the following key missions and approaches:

a) Make our best efforts in defending our national sovereignty and maintaining political and social security and order:

- The Ministry of Foreign Affairs must direct and coordinate with competent bodies and task forces to continue to be engaged in the long-term battle through political and diplomatic efforts; proactively provide timely information about the East Sea dispute and make better use of international community’s advocacy of our righteous standpoints and goodwill in handling this dispute.

- The Ministry of National Defense, Agriculture and Rural development shall direct our maritime law enforcers to continue to adhere to the coping strategies on the scene in order to affirm our claims of full national sovereignty and jurisdiction over Vietnam’s exclusive economic zones and continental shelves under United Nations Convention on Law of the Sea in 1982 and international law.

- The Ministry of Public Security must always be kept updated about any situation and work with the People s Army to take the initiative in struggling with harmful acts against social security and order, in which recent sabotage acts shall be prevented from recurrence; timely prevent hostile powers and reactionary influences, especially in large cities, industrial zones, economic zones, processing and exporting zones, etc.

- The Ministry of Information and Communications shall direct their affiliates to provide correct and timely information about the East Sea dispute as well as the policies and standpoints of our Communist Party and Government in defending our island sovereignty to seek widespread consent among people throughout the country; bring forward the proposal for an exhibition titled "Vietnam s Spratly and Parcel Islands - historical evidences" to contribute to raising people s awareness and obligations in national island sovereignty defense.

b) In terms of socio-economic development tasks, the economic restructuring must be intensified:

- Ministries, regulatory bodies and local authorities must take initiative in keeping up with and coping well with any change in practical conditions, effectively carry out proposed missions and approaches, boost up aggregate demand and promote the production and commercial growth; review, amend, revise and complete laws and policies in combination with the reform in administrative procedures to create favorable atmosphere for production and commerce; strengthen the restructuring of state-owned corporate, public investments and credit institutes, and speed up the development of the general proposal for the economic restructuring and other sectorial restructuring projects.

- The Ministry of Industry and Trade must take their leading role in strengthening commercial promotion activities, expanding potential export markets and diversifying different markets to prevent the overdependence on a single market or partner; running target programs for the development of domestic markets and the promotion of Vietnamese product consumption; coordinate with the Ministry of Finance, relevant Ministries and their regulatory bodies to involve in all activities carried out by the National steering committee on countering smuggling, commercial frauds and counterfeit goods; being functioned as the central position in directing and liaising with Ministries and relevant agencies to speed up the negotiation to soon enter into the trade Agreement on Trans-Pacific Partnership (TPP) and other free trade agreements with European Union and the tariff alliance with Russia, Belarus, Kazakhstan, South Korea and other partners.

- The Ministry of Agriculture and Rural Development must direct and expedite the effective implementation of agricultural restructuring in line with the development of new rural areas and the developmental orientation of regional agricultural production areas as well as the technological application into production; expand the consumption markets, facilitate enterprises to export agricultural products; strictly control the smuggling of imported livestock and poultry through frontiers; closely monitor and proactively take approaches to epidemic prevention, fighting, flood and storm control, dyke reinforcement; work with coastal localities to encourage fisherman to hold on to traditional fishing grounds, remove their worry to concentrate on their fishing works as well as take part in the defence of our island sovereignty.

- The Ministry of Finance must prevent the revenue loss of the state budget, price transfer and closely control the VAT refund; timely detect and handle any fraudulent acts and tax misappropriation; revoke the outstanding tax debts; closely manage the state budget, seriously carry out thrift practice and avoid the wasteful expenditures.Coordinate with Ministries and relevant agencies to continue to carry out the market price policy on basic commodities and services (electricity, coal, petrol, education and healthcare) in the proper itinerary, concurrently generate policies to support the poor as well as meritorious people.Closely work with the Ministry of Industry and Trade to strengthen the inspection and control over markets and fight against smuggling and commercial frauds as well as take strict punitive actions against the trading of counterfeit and low-quality goods, especially fertilizer and plant protection insecticide.Coordinate with the Ministry of Planning and Investment, relevant agencies and local authorities to provide aids for fisherman to build ship for offshore fishing, build ships and supportive devices for the coastguard and fisheries resources surveillance. Coordinate with the Ministry of Justice to review and reform administrative procedures in relation to taxation, customs as well as enhance information technological application and provide conveniences to people and enterprises.

- The Ministry of Planning and Investment must take their leading role in mobilizing necessary sources, promote the social investments, attract and allocate FDI and ODA capital; remove any difficulty to speed up the implementation of capital allocation from the state budget and Government bonds; take their leading role in coordinating with the Ministry of Finance to soon provide an amount of counterpart fund for ODA projects; propose an advance amount of the investment and development capital from the state budget and Government bonds in the plan of 2015 in order to execute major and urgent projects and report to the Prime Minister.

- The State bank of Vietnam must continue to execute the plan for proper credit development to promote the production and trading, market assistance and concentrate on prioritized sectors; direct the good practice of loan policy to support fisherman to build new ships, repair old ones and integrate economic growth into the defence of island sovereignty and traditional fishing grounds; unanimously take approaches to speed up the bad debt settlement and continue to restructure credit institutions as well as improve the credit quality and secure the banking system.

- The Ministry of Transport must concentrate on the quality inspection and speed up the execution of key traffic construction projects; enhance the management and improvement of transportation service quality; continue to properly perform missions and approaches to maintain the traffic order and safety. The People’s Committee of central-affiliated cities and provinces directly and closely control the vehicular weight; direct and expedite the ground clearance, remove any difficulty and provide the favorable conditions in terms of building materials used for the construction of National Route 1A and 14 under their scope of management.

- The Ministry of Construction in association with the Office of the Government must prepare the amended Resolution No.02/NQ-CP dated January 07, 2013 for submission to the Prime Minister for approval and enforcement in order to take several approaches to eliminating any difficulty for production, commerce, market assistance and bad debt settlement as well as allow more beneficiaries to have access to the loans from the preferential credit package of home supports for public servants, officials and civil servants, army’s officers and urban employees who have already possessed their lands matching with the proposed planning but faced many difficulties building their houses without the Government s aids under various forms; define the specific loan amount that must be lower than the permitted loan for each household and individual to purchase, rent and hire-purchase social houses developed by the social housing development projects.

- The Ministry of Culture, Sports and Tourism in association with Ministries and relevant agencies must strengthen the tourism promotion activities to attract more international tourists to Vietnam and boost up the domestic tourism; effectively maintain the social order, security, environment sanitation at tourist resorts and ensure the safety for tourists; study and propose particular policies and breakthroughs in terms of potential markets; set up complete mechanisms for the preservation, exploration and effective use of heritages.

- The Ministry of Labor, War Invalids and Social Affairs in coordination with Ministries, sectors and local authorities must direct the good implementation of social security and social welfare policies; speed up the examination over meritorious people’s policies; carry out the effective programs on employment generation, labor export, sustainable poverty reduction, poor aids and new urban development; liaise with the Committee for Ethnic Affairs to examine the policies on ethnic minorities.

- The Ministry of Health must direct the enforcement of several amended and modified provisions of the Law on Health insurance, draw a roadmap to the medical insurance for the entire population; focus on dealing with the hospital overload, elevate the healthcare service quality for all populations; strengthen the preventive medicine, effectively control dangerous epidemics and those that have just arisen to stop them from spreading.

- The Ministry of Education and Training must direct the intense implementation of the Action Program of the Government as well as the Resolution of the 8^thCentral Committee (Tenure XI) about radical changes in the education and training.

- The Ministry of Natural Resources and Environment along with local authorities must take adaptive measures to cope with climate changes and enhance the management of natural resources and environment protection.

- The Ministry of Information and Communications must direct the timely and immediate communicative practices in the policies of Communist Party and the State as well as Government’s solutions and directions; call for the people s solidarity and mutual assistance to promote production and trading, and defend the sovereignty of our national sacred islands in accordance with Vietnam legislations and international laws. Ministries and regulatory agencies must proactively provide information to communications agencies to publicize new laws as well as disseminate other social matters and generate the widespread consent among the entire population.

c) In terms of the direction and administration:

- Ministries, regulatory agencies and local authorities must unceasingly upraise their efficiency and effectiveness in the direction and administration through specific solutions, actions and breakthroughs to create the actual outcomes; concentrate on the implementation processes with the aim of making these policies become more practical in real life and upholding their outcomes; link the direction and administration with the encouragement and inspection, timely remove difficulties and problems, especially pressing issues. Elevate the leading role and strictly observe the working rules, regulations, respect administrative laws and statutes and continue to improve the working styles, approaches and practical issue handling.

- Ministries and heads of regulatory agencies must take their leading role in preparing and submitting projects and tasks that will be performed in the working Program of the Government, each Ministry and regulatory agency; prepare legislative and decree projects following that Program and issue the legal documents on detailing the implementation of such laws and decrees in the right progress and quality assurance. Imperatively set up an action plan and program to implement Resolutions and Conclusions of the Plenary Session of the 9^thCentral Committee (Tenure XI), Resolutions of the 7^thplenary session of the 13^thNational Congress and other commitments before the National Congress. Focus on directing the development and execution of the plan for socio-economic growth and state budget estimates in 2015, all of which must be suitable and feasible.

- Government’s members must raise their awareness of their responsibilities and closely work on the Resolutions of the Communist Party, National Congress, Government and the Prime Minister’s directions in administrating their in-charge sectors and fields in the strong spirit of determination, contribute to ensuring the efficiency and effectiveness in the general administration of the Government in all national defense, security, political, diplomatic affairs and socio-economic sectors.

- Ministries and regulatory agencies, depending on their functions and duties, are entitled to proactively deal with or request competent agencies to consider the requests of the People’s Committee of central-affiliated cities and provinces as stated in the plenary session and other written proposals. The Office of the Government must expedite and sum up the solutions to these requests and submit their report to the Prime Minister.

2. In terms of the restructuring of state-owned enterprises and the orientation of the use of revenues from this restructuring and equitization:

a) In terms of the restructuring of state-owned enterprises:

The Government must request Ministries, regulatory bodies, People’s Committee of central-affiliated cities and provinces, economic incorporations and state-owned general companies to concentrate on the restructuring of state-owned enterprises, intensify the inspection, supervision and acceleration to direct the restructuring, equitization and state-owned capital withdrawal in the right itinerary.As for any enterprise who has established their Steering committee of equitization, they must quickly reevaluate their corporate value; as for those who have already defined their value, they must quickly submit the equitization plan to competent authorities for approval; as for those who are eligible for the initial public offering, this must adhere to legal regulations; as for those who are ineligible for the initial public offering, they will be transformed into joint-stock company with shares held by trade unions, employees and strategic shareholders (if any) or other voluntary shareholders. Proactively deal with any difficulty in the course of the implementation in a timely manner. In case the matter is beyond their authority, they must then send a report to the Prime Minister.

The Ministry of Finance must quickly submit the Proposal for the pilot contribution of capital shares for the new establishment in respect of public service units and affiliates of state-owned incorporate and general companies in the process of the equitization; complete the instructions on implementing the Decree No.189/2013/ND-CP on amending and modifying the Decree No. 59/2011/ND-CP on the transformation of wholly state-owned enterprises into joint-stock companies.

The Ministry of Planning and Investment must compile a preliminary report on the implementation of the Decree No.99/2012/ND-CP dated November 15, 2012 of the Government; complete the draft Decree for submission to the Government, amend and modify the regulations on selling and transferring state-owned enterprises; provide instructions on dealing with any difficulty in carrying out the withdrawal of the capital share through trademarks.

The Ministry of Home Affairs must complete the draft Decree on regulating the appointment or reappointment, removal from office, dismissal, contract signing, termination, commendation, reward, handling of violations and appraisal criteria for managers, leaders and representatives of enterprises, which will then submit to the Government in July 2014.

The State bank of Vietnam must direct and coordinate with relevant agencies to take measures to settle the capital shares held by state-owned enterprises at commercial banks in compliance with the Resolution No.15/NQ-CP of the Government on capital withdrawal and boost up the equitization of state-owned enterprises, which will be then reported to the Prime Minister.

Ministries, regulatory agencies and People’s Committees of central-affiliated cities and provinces, economic incorporates, state-owned general companies must imperatively implement the Action Program of the Government, Resolution No.30-NQ/TW dated March December, 2014 of Politburo on continuing to renew, develop and improve the operating results of agro-forestry companies.

b) In terms of the use of revenues collected from the restructuring and equitization of state-owned enterprises in the period of 2014 - 2015:

The Government shall agree on the principle that the revenues collected from the equitization and partial sale of state capital shares will be contributed to Enterprise Arrangement and Development Fund as proposed by the Ministry of Finance. Then assign the Ministry of Finance to compile a report for submission to Politburo for any opinion on this policy.

3. In terms of inspection, handling of complaints, denunciations and anti-corruption efforts in the second quarter of 2014; administrative reform; performance of the program on legislative and decree constitution; constitution and enforcement of documents on regulating the specific implementations of laws and decrees in the first six months of 2014;

Government Inspectorate, Ministry of Home Affairs and Ministry of Justice must direct and coordinate with Ministries and relevant agencies to collect opinions from the Cabinet’s members and opinions that have been raised in this plenary meeting to compile their related reports; depending on their assigned functions and tasks, concentrate on directing the aforementioned to ensure any definite change in the last six months of 2014.

4. In terms of the requirements of foreign employees working in Vietnam:

The Government shall agree on adjusting the requirements that foreign employees listed below must satisfy to work in Vietnam:

a) Foreign experts and technical employees who have proved their proper qualification of profession and training or achieved minimum 5 years’ experience in the job position that they intend to apply for to work in Vietnam;

b) Those who have graduated from a university, equivalent or higher education levels as well as majored in an academic discipline that suits the teaching requirements at training institutions, foreign language centers and preschool education establishments.

c) Those who have graduated from a university, equivalent or higher education levels and majored in an academic discipline that suits the teaching requirements at post-secondary education establishments.

The Ministry of Labor, War Invalids and Social Affairs and The Ministry of Education and Training in coordination with the Ministry of Justice and Office of the Government must imperatively propose the amendment to the Decree No.102/2013/ND-CP dated September 05, 2013 of the Government on detailing the implementation of several provisions of the Labor Code applied to foreign employees working in Vietnam and the Decree No.73/2012/ND-CP dated September 26, 2012 of the Government on regulating the overseas cooperation and investment in the field of education, following the shortened order and procedures, which will be then reported to the Prime Minister for consideration and decision.

5. In terms of sanctions against the administrative violations regarding the vehicular weight:

The Government shall agree that penalties for administrative violations in accordance with the Decree No.171/2013/ND-CP dated November 13, 2013 will be suspended till December 31, 2014 for the following cases:

a) Violations against regulations on the axle weight without exceeding the gross weight that is defined in the certificate of examination on technical safety and environment protection;

b) Violations against regulations stated at Point b, Clause 1 and Point a, Clause 2 of Article 24 of the Decree No.171/2013/ND-CP that a vehicle commits by exceeding the designed weight defined in the Certificate of vehicle registration or the Certificate of examination on technical safety and environment protection achieving the rate of below 10%.

The Ministry of Transport shall direct and coordinate with the Ministry of Justice and Office of the Government to propose the amendment to the Decree No.171/2013/ND-CP of the Government following the concise order and procedures, which will be then reported to the Prime Minister for consideration and final decision.

6. In terms of the intense application of information technology at regulatory agencies:

Ministries, regulatory agencies and local authorities must concentrate on taking various approaches to elevate information technology which will be considered a new developmental method to boost the productivity, working efficiency and contribute to improving the competitiveness. Enthusiastically develop and improve the effective application of information technology in all fields to raise the efficiency in the management and administration of regulatory agencies, improvement of business environment, provide much convenience for people and enterprises, especially in the field of healthcare, education, training, construction, taxation and customs, etc.

Ministries and relevant agencies must imperatively build up a national database for common use purpose, firstly the national database of population, according to the directions of the Prime Minister.

Ministries and Heads of ministerial-level agencies, Governmental agencies and the President of the People’s Committee of central-affiliated cities and provinces must direct and enhance the computerization in documentation work, set up an electronic portal of Ministries, sectors and local authorities to connect with the Government s electronic information portal; provide the online public services for people and enterprises.

The Government has agreed on the policies on hiring the information technology services in regulatory agencies and public administrative units. The Ministry of Information and Communications shall direct and coordinate with the Ministry of Finance and the Ministry of Planning and Investment to submit to the Prime Minister to consider enforcing the decision on specific mechanism for the hire of information technology services, which will be then reported to the Prime Minister in July 2014.

7. In terms of food safety:

The Government requests Ministries such as Health, Agriculture and Rural Development, Industry and Commerce to speed up the progress and completion of the enforcement of guiding documents for the implementation of the Law on Food safety.

The Ministry of Health must direct and coordinate with the Ministry of Agriculture and Rural development, The Ministry of Industry and Trade to enter into the mutual agreement with the Ministry of Information and Communications on regulating the responsibility to perform the communications tasks regarding the food safety at several communications agencies that are financed by the State budget.

The Ministry of Finance must direct and coordinate with Ministries and relevant agencies to invent the solutions to allocating expenditures for the key activities of food safety. For the time being, there must be an approach to allocating the expenditures to handle and destroy exhibits of violations that have been captured by competent agencies.

The People’s Committees of central-affiliated cities and provinces must find the way to raise the capability of Food Administration Sub-department, Quality Control of aquatic and agro-forest products as well as other local food safety administrators; regularly inspect and examine the food safety; direct the test, inspection and handle any violation within their competence or send a request to functional agencies in case tap water at residential areas fail to meet the required standards of food safety; guide and supervise the use of fertilizers, plant protection chemicals, insecticide, veterinary medicine; prevent and handle the smuggling of plant protection chemicals across the borders; strengthen the management over food sold on the streets, tourism resorts and accelerate the completion of certification at trade villages of food processing, especially in Hanoi and Ho Chi Minh City./.

For the Government

The Prime Minister

Nguyen Tan Dung