Resolution No. 87/NQ-CP dated July 26, 2011 of the Government the Government’s regular meeting – July, 2011

RESOLUTION

THE GOVERNMENT’S REGULAR MEETING – JULY, 2011

The Government on July 24 convened its regular meeting to discuss and decide the following issues:

1. The Government discussed Report on socio-economic performance in July and the first seven months of 2011, presented by the Minister of Planning and Investment.

The Government was unanimously agreed that socio-economic panorama in the reviewed periods contained positive signals thanks to synchronous and comprehensive implementation of measures for curbing inflation, stabilizing macro-economy, and ensuring social welfare enshrined in the Politburo’s Conclusion No. 02-KL/TW, the National Assembly’s Resolution No. 59/2011/QH12 and the Government’s Resolution 11/NQ-CP dated on February 24, 2011.

The consumer price index continued to be put under control, State budget collection increased fairly, State budget overspending dipped, foreign currency and gold markets stabilized, foreign currency reserve rose; export turnover soared beyond the preset target; trade deficit slumped. Industrial production was on rise; agricultural production, though affected by natural disasters and epidemics, still expanded stably and firmly; tourism grew with rising number of both foreign and domestic tourists; total retail sales of goods and services boomed against the same period last year.

In the context of public investment cut, the investment for poverty reduction and social welfare was among priorities. Many social policies continued to be adopted and implemented, contributing to easing difficulties against and gradually improve people’s living standard; job creation and stabilization of laborers’ life were paid due attention; a series of activities to repay wounded soldiers and revolutionary martyrs for their favor took place on the occasion of their day (July 27); the entry examinations into colleges and universities were well-organized. Administrative reform, inspection work, settlement of complaints and denunciations, anti-corruption, thrift practice, and anti-wastefulness continued to be sped up. External relations and international cooperation made importance achievements. National defense has been enhanced. Political security, social order and safety have been maintained.

However, external complicated changes and domestic difficulties have adversely impacted on the realization of the 2011 socio-economic development plan and the targets of reining in inflation, expanding production and export. Production and business sector still faces difficulties because of the tightened fiscal, monetary, and inflation policies, particularly small-and medium-sized enterprises. Traffic accidents, crimes, food hygiene and safety, environment are among pressing issues. Low-income groups, including workers in centralized industrial parks, still suffer many difficulties.

In a bid to fully achieve the preset targets, the Government requests ministries, sectors and localities to continue synchronous and comprehensive implementation of measures for curbing inflation, stabilizing macro-economy, and ensuring social welfare enshrined in the Politburo’s Conclusion No. 02-KL/TW, the National Assembly’s Resolution No. 59/2011/QH12 and the Government’s Resolution 11/NQ-CP dated on February 24, 2011 in order to realize the central task of inflation curbing, macro-economic stabilization, and social welfare guaranteeing, focusing on the following solutions:

- For monetary policy: The State Bank of Việt Nam continues regulate the policy in a tightened and cautious manner in line with the Government’s Resolution No. 11/NQ-CP with special attention to be given to secure the liquidity and safety of the financial-banking system. To continue to flexibly and effectively use tools of monetary policies to push pack inflation, gradually reduce interest rates in parallel with the fall of inflation.

- Regarding fiscal policy: Tightened fiscal policy continues to be implemented in smooth coordination with the implementation of the tightened and cautious monetary policy. Minstries, sectors and localities take measures to increase budget collection, implement public investment cut in inefficient and prolonged projects or those are not really in need; seriously save 10% of their regular spendings, strive to lower budget overspending to under the figure set by the National Assembly.

- The Ministry of Agriculture and Rural Development, in coordination with agencies and localities to focus on allocating resources for expanding agricultural production, raising farm produce, including rice, and at the same time securing domestic food security; speed up livestock and poultry breeding in order to secure foodstuff supply, particularly during the traditional Lunar New Year holiday, avoiding commodities shortage and prices hikes; actively prevent, control and effectively response to natural disasters and epidemics, overcome the consequences of natural disasters, quickly restore production and stabilize people’s life.

- Ministries, sectors and localities continue to focus on removing difficulties against, boost production and beefing up export; take measures to expand and well organize domestic market in the direction of encouraging healthy competition, diminish distribution costs; kick-start mega and key projects. The Ministry of Industry and Trade directs the Electricity of Việt Nam to ensure adequate supply of power for production and people’s life.

- To continue to fruitfully realize social welfare policies, national target programs for most disadvantaged districts, communes, villages, the poor, people who devoted greatly for the country, ethnic minorities and other vulnerable groups. Ministries, sectors, and localities coordinate with the Việt Nam General Confederation Labor to actively develop measures to address emerging social issues among people who work in businesses; mobilize and assist them to overcome difficulties and set their mind at rest; further promote the role of social organizations, particularly labor unions in protecting legitimate rights of laborers.

- The Ministry of Transport, the Ministry of Public Security coordinate with agencies and localities to strongly, decisively and effectively implement measures to contain traffic accidents, especially at hot spots.

- To continue grasp thoroughly and deploy effectively the Party and State’s guidelines and resolutions in the field of national defense and security; act decisively, timely, and in accordance with international law and the Party and State’s guidelines so as to well address complicated changes, firmly protect the national sovereignty, hold fast to political security and social order and safety. Combining economic development with national defense in border areas and islands; consolidate the activeness of localities in developing economic strength and national defense power.

- The Cabinet members of tenure 12 continue their missions and well prepared for hand-overs after the proposed members of new Government are ratified and appointed in order to secure smooth and continuous operations.

2. The Government discussed Report on the outcomes of the implementation of the Working Rules during 2007 - 2011 term, presented by the Minister-Chairman of the Office of Government.

The Government agreed that despite difficulties resulted from external adversities and domestic shortcomings over the past term, the 12th term Government, under the leadership of the Prime Minister, stayed in solidarity and unanimity, strived to basically achieve missions assigned by the Party, State and people. With strict and serious observation of its Working Rules, the 12th term Government’s instructional and regulatory capacity has been upgraded; collective mental power of the Government has been fully upheld with personal responsibility heightened; each Cabinet member strived to fulfilled his assigned missions; the role of State agencies were clarified; administrative processes and procedures have become shorter; application of information technology has been sped up to better serve instructional and regulatory activities of the Government and the Prime Minister.

However, the instructional and regulatory activities of the Government and the Prime Minister still have shortcomings due to the division of functions and assignments of some ministries were overlapped, and some fields have yet been subjected to clear management agencies; some State management fields have proved limited; some others still contains inadequacies; the Working Rules has not been strictly observed in some cases while sanctions have not been promulgated; the supervision and inspection of the Working Rules have not been drastically and effectively carried out.

In order to promote strong points and push back shortcomings of the instructional and regulatory work of the Government, the Prime Minister and administrative apparatus of all levels, the Government requests ministries, agencies and localities to review, amend and supplement their functions and obligation to avoid overlapped missions and clarify the State management role in all aspects. Review, amend and supplement regulations of the Working Rules for better organization and improvement of the quality of institutional building that meets the requirements of amendments and supplementation of legal documents; well organize macro-economic analysis and forecast; enhance the capacity and improve the efficiency of State management in such fields as land, natural resources, State-owned enterprises, energy, and assure energy security, environment protection, and climate change adaptation, etc; improve the efficiency of administrative reform, anti-corruption and thrift practice, anti-wastefulness; consolidate coordination responsibility; improve responsibility and quality of interpellation to National Assembly and people; speed up timely, adequate information dissemination to the public to satisfy people and businesses’ right for information provision.

The Office of Government is assigned to coordinate with relevant agencies to collect the Cabinet members’ comments, review, amend and supplement to the Government’s Working Rules in a bid to repair shortcomings, reform working style and procedures to meet the requirements for improving the capacity and efficiency of the 13th term Government.