The Government's regular meeting - April 2017

RESOLUTION

THE GOVERNMENT’S REGULAR MEETING – APRIL 2017

THE GOVERNMENT

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

Pursuant to the Government’s Decree No. 138/2016/ND-CP dated October 01, 2016 promulgating the working regulation of the Government;

Based on the discussion of the Cabinet members and the conclusion of the Prime Minister at the Government’s regular meeting in April 2017, held on May 4th, 2017,

RESOLVES:

1. Regarding the draft Decree promulgating the conditions for trading camouflage equipment and software for sound recording, video recording and positioning

The Ministry of Public Security shall lead and coordinate with the Ministry of Justice, the Government Office and other relevant Ministries and agencies in collecting opinions of the Government, revising and supplementing provisions on conditions for import and export of camouflage equipment and software for sound recording, video recording and positioning, ensuring rigorousness, publicity and transparency in state management of these activities. Accordingly, the Ministry shall finalize the Decree and submit it to the Prime Minister for signing and promulgation as of July 1, 2017.

2. Regarding the draft Decree detailing some articles of the Law on Property Auction

The Ministry of Justice shall lead and coordinate with the Government Office and other relevant Ministries and agencies in collecting comments of the Government and revising the name of the draft Decree to fully cover contents of the draft Decree detailing of the implementation of the Law on Property Auction, stipulating the appraisal of conditions on forms of online auction on the principle of encouraging simplicity and convenience, assigning provincial/municipal Departments of Justice to lead the appraisal and take responsibility of the appraisal results. The Ministry of Justice shall perform post-appraisal inspection, publicly announcing the auction on printed newspapers and specialized websites on property auction to ensure the publicity and transparency and avoid manipulation of group interests. On that basis, the Ministry shall finalize the draft Decree and submit it to the Prime Minister for signing before May 15, 2017.

3. Regarding the draft Decree promulgating functions, tasks, powers and organizational structure of the Seaport Management and Operation Unit

The Ministry of Justice shall lead and coordinate with the Ministry of Transport in expeditiously studying and reporting to the Prime Minister before May 20, 2017 on the most appropriate models and functions of seaport management and operation body for Viet Nam’s conditions. In case of necessity, the Ministry shall to report to the National Assembly Standing Committee on the implementation of the Maritime Code of Viet Nam.

4. Regarding the draft Decree promulgating specific policies on breeds, capital and technologies in aquaculture development and exploitation

The Ministry of Agriculture and Rural Development shall lead and coordinate with the Government Office and other relevant Ministries and agencies in collecting comments from the Government, revising and finalizing the Decree and submitting it to the Prime Minister for signing for promulgation before May 15, 2017.

5. Regarding the draft Decree detailing the appraisal of the starting price of bad debts and collateral assets of bad debts and the establishment of the Council for bad debt auction and bad debt collateral for bad debts and bad debt collateral with high value

The State Bank of Viet Nam shall lead and coordinate with the Ministry of Justice and the Government Office in collecting opinions of the Government, revising and finalizing the Decree and submit it to the Prime Minister for signing before May 15, 2017.

6. Regarding enterprise income tax on interest earned on bank deposits of public tertiary education institutions piloting the reform of operation mechanism

The Government unanimously agreed with the proposal of the Ministry of Finance that interest earned on bank deposits of public tertiary education institutions piloting the reform of operating mechanism under Resolution No. 77/NQ-CP dated October 24, 2014 of the Government must be declared and enterprise income tax must be paid according to the current regulations. The state budget shall provide financial support corresponding to the enterprise income tax amounts already paid by such tertiary education institutions from 2016 to the end of the pilot period under Resolution No. 77/NQ-CP. The Ministry of Finance was assigned to instruct the implementation.

7. Regarding the implementation of policies for poor households for the period 2016-2020 following multidimensional approach

The Government unanimously agreed to:

- Implement poverty reduction policies for poor households according to previous income criteria.

- The State budget shall support 100% of health insurance premiums for multi-dimensional poor households in the health insurance domain; 70% of health insurance premiums for multi-dimensional poor households lacking in basic social services (no shortage of health insurance). Based on actual context, local authorities may decide to allocate additional local budgets to provider higher level of support.

Policies on health insurance premiums support for multi-dimensional poor households lacking in basic social services shall come into effect from the date the Government promulgates the Resolution of the Government's regular meeting in April 2017. Central budget shall be allocated to support difficult localities that have purchased health insurance cards for multi-dimensional poor households according to the above mentioned criteria from January 1, 2016 to the date the Government promulgates this Resolution (No support shall be granted to localities that did not purchase health insurance cards for these people).

The Ministry of Finance shall be assigned to lead and coordinate with the Ministry of Labor, War Invalids and Social Affairs in reviewing the budget balancing capability, estimate demand and additional funding sources, and report to the Government to seek approval from the National Assembly to allocate 2017 budget to implement the above mentioned poverty reduction policies and plan for the central budget plan in 2018.

The Ministry of Labor, War Invalids and Social Affairs shall be assigned to lead and coordinate with the Ministry of Finance and other relevant Ministries and agencies in continuing studying and reviewing policies and proposing the Government different mode of assistance in order to ensure the people’s access to basic social services that are currently in shortage and in alignment with the state budget’s capacity. Beyond its competence, the Ministry shall report to the Government for reporting to the National Assembly.

8. Regarding the report on the performance of tasks assigned by the Government and the Prime Minister, and inspection results of the Working Group at Ministries and agencies in April 2017.

Based on the performance results of tasks assigned by the Government and the Prime Minister and the inspection results of the Working Group, the Government highly appreciated efforts of Ministries, agencies and localities in implementing tasks, especially the tasks on institutional development. However, in April 2017, the number of over-due missions increased compared that of the previous month, in which the issuance of a number of documents detailing the implementation of laws and ordinances was delayed.

Ministers and heads of Ministerial-level agencies were requested to strictly implement the Government's policy to avoid suspension in issuance of documents detailing the implementation of laws and ordinances. Ministries and agencies that did not promulgate documents detailing the implementation of laws and ordinances effective before January 1, 2017 and laws and ordinances effective as of June 1, 2017 and July 1, 2017 must promptly promulgate legal documents according to their competence or submit them to competent authorities for promulgation.

The Government unanimously agreed with the recommendations of the Working Group. The Working Group shall be assigned to finalize and issue a report on the performance of tasks assigned by the Government, the Prime Minister and the inspection results in April 2017. The Working Group shall continue to monitor the performance of tasks in a number of Ministries, agencies, localities and conduct the specialized examination on institutional development and improvement tasks and some important undertakings and policies of the Government.

Ministries, agencies and localities shall earnestly implement their assigned tasks and report the implementation results to the Working Group before May 25, 2017.

9. Regarding investment mechanisms and policies for the North-South Highway Project

To achieve objectives of Resolution No. 13-NQ/TW dated January 16, 2012 of the Party Central Committee at its 4th plenum on the construction of a synchronous infrastructure system to basically transform Viet Nam into a modern industrialized country by 2020, based on Resolution No. 26/2016/QH-14 dated November 10, 2016 of the National Assembly on the medium-term public investment plan for the 2016-2020 period, the Government unanimously agreed to submit to the National Assembly the investment policies for the North-South Highway Project at the third session of the 14th National Assembly.

The Ministry of Transport shall be assigned to expeditiously coordinate with the Ministry of Planning and Investment in finalizing procedures to submit policies to the State Appraisal Council in the spirit of ensuring investment efficiency, quality and progress of the project while avoiding loss and waste. The Government Office shall report to the Government for approval of investment policies and promptly report to the Political Bureau and submit the report to the XIVth National Assembly at its third session as prescribed by law.

The Government shall direct the appraisal and implementation of the appraisal process from formulation and appraisal of policies to approval of the feasibility study report after the National Assembly has approved investment policies of the project.

10. Regarding the socio-economic situation in April and the first 4 months of 2017, the implementation progress of the Resolution No. 01/NQ-CP of the Government on the major tasks and solutions guiding the implementation of the socio-economic development plan and the state budget plan in 2017, scenarios, plans and solutions to achieve economic growth targets of the second, the third, and the fourth quarters and the whole year 2017

The Government unanimously agreed that: The socio-economic situation improved in April and the first 4 months of 2017. Macroeconomic stability was maintained. Inflation was kept under control. Strong credit growth was recorded. The credit program contributed to encouraging the development of high-tech agriculture and clean agriculture, the timely disbursement of some preferential credit packages of some commercial banks to support pig-raising households. Gold and foreign exchange markets remained stable. Economic growth improved, especially industrial production. Service sector maintained the strong growth momentum. The number of international tourists to Viet Nam increased sharply. Total registered capital of foreign direct investment (FDI) increased. Decent State budget revenues was recorded. Strong export growth was achieved. Business environment, business competitiveness and development continued to improve. Areas of social security, education and training, health care, science and technology, labor and employment made considerable progress. People’s lives were improved. Activities celebrating the National Reunification (April 30) and International Labor Day (May 1) took place excitingly and proudly. Political security, social order and safety were guaranteed. Foreign affairs and international integration achieved positive results.

However, the growth rate of the industrial sector remained low, especially the mining sector. Prices of some agricultural products, especially prices of live pork dropped sharply, causing a lot of damage to the farmers. Although exports increased sharply, exports of many goods of the country’s strength observed slower growth or decrease in volume while the trade deficit of some domestically produced goods increased. Disbursement of development investment remained low. Equitization and divestment of state-owned enterprises were slow. There were a number of safety and social order incidents. Traffic accidents, fire and explosion happened in a complicated manner. Administrative disciplines and order were not strictly complied in some places.

There are many heavy tasks needed to be achieved in the remaining months of 2017, requiring the efforts and coordination of all sectors, levels, the business community and the people throughout the country. The Government committed to consistently and persistently striving to achieve economic growth target of 6.7% in 2017. Specific growth targets include:

- The agricultural sector is expected to grow by 3.05%. In particular, the total export turnover of agricultural products is estimated to reach over US$33 billion;

- The industrial and construction sectors are project to expand 7.91%. Of which, the industrial sector is expected to increase by 8%, the manufacturing sectors by 13%, the electricity production and distribution sector by 11.5%, and the construction sector by 10.5%.

- The service sector is expected to expand 7.19%. Of which, the number of tourists is estimated to increase by 30%.

Determined to achieve the above targets, the Government requested Ministries and Ministerial-level agencies to work out specific plans and solutions to ensure the achievement of growth objectives of their respective sectors and domains, organize quarterly review of the implementation progress and report on the results and send them to the Ministry of Planning and Investment before the 25th of the last month of each quarter for synthesis and reporting to the Government. Ministers and Heads of agencies shall be accountable to the Government or the Prime Minister for failing to achieve targets of their respective sectors or domains.

At the same time, Ministries, agencies and localities shall promote their responsibility, closely follow up with the situation, be initiative, creative, and take drastic action, continue implementing the tasks and solutions set out in the Resolutions of the Party, the National Assembly, the Government, especially Resolution No. 01/NQ-CP, No. 19-2017/NQ-CP and No. 35/NQ-CP, create significant changes in the remaining months of 2017, while focusing on the following tasks and solutions:

- The Ministry of Planning and Investment, as the head of the macroeconomic management team, together with the Ministry of Finance, the Ministry of Industry and Trade, the State Bank of Viet Nam, and other relevant Ministries, agencies shall actively and flexibly harmonize fiscal, monetary, trade and investment instruments so as to have appropriate macroeconomic management policies to control inflation while supporting economic growth.

- The State Bank of Viet Nam shall closely monitor domestic and international macroeconomic developments, actively and flexibly monitor monetary policy in combination with fiscal policy and macro policies to control inflation within the target range, contributing to macroeconomic stability and supporting economic growth. The State Bank of Viet Nam shall implement measures to stabilize interest rates in line with developments in the macroeconomy, inflation and the monetary market. Based on the agency’s capacity to control inflation, the State Bank of Viet Nam shall stabilize the foreign exchange market and strive to reduce lending interest rates, focus credit capital on priority domains associated with assuring credit quality and system safety, step up lending of the credit program to encourage the development of hi-tech agricultural and clean agriculture, focus on accelerating the restructuring of credit institutions associated with bad debt handling, review and take measures to reschedule, restructure repayment period, exempt interest rate and renew loans to livestock producers.

- The Ministry of Planning and Investment, the Ministry of Finance and other relevant Ministries, agencies and localities shall take drastic measures to accelerate the disbursement of investment capital from the state budget, facilitate the development of the private sector, review the implementation of foreign investment projects and take measures to attract quality foreign investment projects. The Ministry of Planning and Investment shall lead and coordinate with Ministries and agencies in formulating the Government's resolutions on major tasks and solutions to speed up the implementation and disbursement of the 2017 public investment plan. The Ministry shall report to the Government at its regular government meeting in May 2017 and continue to push for start-up eco-systems.

- The Steering Committee for Enterprise Renovation and Development, Ministries, agencies and localities shall concentrate on directing the stepping up the restructuring, equitization and divestment of state capital according to market mechanism and current legislation, and the listing of state-owned enterprises on the stock market as prescribed by law.

- The Ministry of Finance shall lead and coordinate with the Ministry of Planning and Investment and other Ministries, agencies and localities in monitoring, accelerating and evaluating the progress and results of the implementation of Directive No. 14/CT -TTg dated April 19, 2017 of the Prime Minister on centralizing the direction and management of the implementation of fiscal and state budget tasks in 2017. The Ministry shall periodically review the implementation progress and report to the Prime Minister.

- The Ministry of Industry and Trade shall review the key products under its management so as to work out specific solutions to ensure to achieve growth targets of the industrial sector, urgently focus on handling, in principle, 12 projects incurring losses of the sector in 2017-2018, concentrate on directing and speeding up the execution of projects, especially electricity projects for early commissioning and use, ensure electricity supply for production and daily life during peak months in the summer, focus on developing sectors’ brands and branded products that are competitive enough to join the global value chain, step up the exploitation of potential export markets and new markets, closely monitor and forecast market trends, enhance dissemination of market information for associations and enterprises. At the same time, the Ministry of Industry and Trade shall coordinate with related Ministries and sectors to remove difficulties for exporters, streamline administrative procedures and shorten processing time, strictly control the importation of products that are not encouraged for importation or could be manufactured domestically, subject to technical control criteria and the application of safeguard measures in conformity with international commitments, especially with regard to agricultural products to protect domestic production and reduce trade deficit, coordinate with Ministries, agencies and localities in the development and good management of the domestic market, the development of distribution and retail channels, the strict control of foreign investors and economic organizations with foreign investment capital participating in the domestic distribution and retail market in accordance with the legislation and international commitments, and coordinate with the Ministry of Public Security to work out measures to rectify and strictly handle multi-level marketing violations.

The Government unanimously agreed with the proposal to have a suitable solution to deal with the remaining amount of minerals, and assigned the Ministry of Industry and Trade to report to the Prime Minister of the detailed plan in May 2017.

- The Ministry of Agriculture and Rural Development shall lead and coordinate with the relevant Ministries, agencies and localities in promoting the development of high-tech agriculture and organic agriculture in association with the development of the consumption market in an effective and long-lasting manner, focus on the effective development of the 5-stakeholder model (producer - public - private - researcher - bank), review, evaluate and upscale the pilot model of land accumulation in Thai Binh, Ha Nam, An Giang, Dong Thap provinces, to ensure rigorousness, legality, and harmony of long-term interests of enterprises and farmers. The Ministry shall coordinate with the State Bank of Viet Nam to provide support capital for agricultural development, actively implement solutions of crop structure conversion to adapt to climate change in line with market demand and to compensate for decreasing rice yields, properly organize production planning, ensure an appropriate structure of products. Especially, attention should be paid to improve the product quality in order to raise the competitiveness in the domestic market and meet conditions of export markets. The Ministry shall promptly negotiate the signing of agreements on veterinary, quarantine certificates with markets importing agricultural products of Viet Nam. Accordingly, the Ministry shall lead and coordinate with the Ministry of Industry and Trade in stepping up the negotiation to expand the export of agricultural products, especially pig products, adopt policies to encourage processing establishments to increase the purchase and processing of agricultural products, adjust the size and structure of animal husbandry in line with market conditions, and organize agricultural production into value chains, closely monitor weather conditions, water levels in rivers, streams, and reservoirs, and have plans to prevent natural disasters caused by droughts and floods.

- Ministries and agencies need to review and evaluate development plans, the production, processing, circulation and marketing of products under their authority and have solutions to address weaknesses and inadequacies in the state management, especially in the management of market, price, distribution channels, avoid excess supply, pressure on prices, and price faking, which can cause damage to producers.

- Ministries, agencies and localities shall organize the implementation of the Prime Minister's Directive No. 16/CT-TTg dated May 4, 2017 to strengthen the country’s ability to access the 4th industrial revolution, promote socialization, encourage financial and operational autonomy of public service delivery units.

- The Ministry of Culture, Sports and Tourism shall urgently carry out the tasks and solutions set out under the Political Bureau's Resolution on developing tourism into a spearhead economic sector, focusing on diversification, quality improvement, and ensuring benefits from tourism to the people, businesses and the economy.

- The Ministry of Education and Training shall prepare for the high school graduation and university and college entrance exams in 2017, overcome previous shortcomings and inadequacies, create favorable conditions for candidates, speed up the progress and quality, ensure feasibility of the implementation of the Renovation of General Education Project according to objectives set by the National Assembly.

- The Ministry of Labor, War Invalids and Social Affairs shall lead and coordinate with Ministries, agencies and localities in continuing to step up the care for, and reward for, people with meritorious services to the revolution and their relatives, well preparing conditions for the solemn organization of activities commemorating the 70th anniversary of the War Invalids and Martyrs Day, and reporting to the Prime Minister for issuing the Directive on strengthening the caring for people with meritorious services in celebration of the 70th anniversary of the War Invalids and Martyrs Day in May 2017.

- The Ministry of Health shall continue to implement measures to reduce hospital overcrowding and strengthen prevention and control of seasonal infectious diseases.

- The Ministry of Home Affairs and the Government Inspectorate shall implement measures to improve administrative discipline and order, step up public examination and inspection, strictly handle cases of violation, harassment and negativity.

- The Ministry of Public Security shall lead and coordinate with Ministries, agencies and localities in settling complex security and order issues, especially those related to land which that cause public concern, protect the legitimate rights of the people, intensify the inspection, detection and strict handling of acts of illegal sand mining and logging.

The Chairman of the Ha Noi Municipal People's Committee shall organize a comprehensive inspection of the incident in Dong Tam Commune, My Duc District, Ha Noi.

- Deputy Prime Ministers, Ministers and Heads of Ministerial-level agencies shall discuss and explain Schemes submitted to the 5th plenum of the XIIth Party Central Committee, urgently direct the finalization of reports, documents, projects and draft legal documents to be submitted to the XIVth National Assembly at its third session as assigned, review the contents committed to the National Assembly, and take initiative in preparing the explanation and answering questions before the National Assembly.

- The Ministry of Information and Communications shall lead and coordinate with Ministries, agencies and localities to proactively providing accurate and timely information on the socio-economic situation as well as performance of the Government, the Prime Minister, sectors and levels, direct the maintenance of the post and telecommunications network, ensuring its smooth operation and timeliness, direct news agencies, the press, the media to improve communication of good models, good practices, good people, and good deeds to create trust, determination and consensus in the society, promote production, and contribute to the successful implementation of goals and tasks in 2017./.

ON BEHALF OF THE GOVERNMENT

PRIME MINISTER

(Signed)

Nguyen Xuan Phuc