SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom - Happiness
Hanoi, May 9, 2012
The Government’s regular meeting- April 2012
The Government on May 3-4 convened its regular meeting for April, discussed and decided the following issues:
1.The Report on the socio-economic performance in April and the first four months of 2012, the realization of Resolution 01/NQ-CP on key solutions for directing the implementation of the socio-economic development plan and State budget estimate for 2012 which was presented by the Minister of Planning and Investment.
The Government agreed that the socio-economic performance in April and the first four months of 2012 progressed positively with initial outcomes. The macro-economy was improved. The consumer price index (CPI) in April surged by 0.05% against the previous month and went up 2.6% against December 2011, marking a record low over the past years. Interest rates kept dropping sharply, the liquidity of the banking system and foreign reserves were better; exchange rate was basically stable; the securities market saw signs of recovery. Production and business gradually got out of difficulties. Industrial and processing areas expanded fairly. Export turnover rose 22.1% against the same period last year, much higher than the preset target; trade deficit was lowest against the same period of the past years.
Total retail sales of goods and services continued to increase. The number of foreign visitors to Vietnam increased by 22.9% in the first fourth months. Social security and welfare were guaranteed; the number of poor people dropped by 20.2% against the same period last year; pressing social issues were given due attention; transport’s order and safety were given more attention and traffic accidents decreased. The other areas like education, healthcare, culture and sports were improved. The administrative reform, settlement of complaints and denunciations, anti-corruption and thrift practice were strengthened.
Nevertheless, challenges and difficulties are lying ahead, including high interest rates, sharp drop in credit growth; limited capacity of businesses in accessing and absorting capital. Production and business in some areas appeared to stand still; inventory remains high; numerous enterprises face with bankrupcy and production suspension especially in the areas of construction and real estate leading to massive job loss. The economic growth rate slowed down against last year. Budget collection was lower. Though sharp import declines helped improve trade balance and stabilize exchange rates but negatively affected investment, bussiness and production. Some groups of people are still facing with low living conditions. Traffic accidents, social evils, crime, complaints and denunciations, forest destruction and fires happened complicatedly and caused social anxiety.
The Government reaffirmed the neccessity to presist in the goals and tasks enshrined in the Resolutions of the Party Central Commitee and the National Assembly for 2012; keep close watch on the global and domestic economic situation, enhance analysis and forecast capacity for having appropriate measures; take drastic steps to realize the solutions especially those stipulated in the Resolution 01/NQ-CP, dated January 3, 2012, in effective and synchronous manner, focusing on the following key tasks:
- The State Bank of Vietnam works with relevant ministries and agencies to continue regulating the monetary policy in positive, flexible and effective manner; drastically direct and create favorable conditions for enterprises to access to credit sources; accelerate the reduction of lending rates in accordance with CPI reduction pace; give credit priority to enterpises operating in agriculture, rural areas, export-oriented production, auxiliary industries, small and medium-sized ones, labor-intensive use; rushly conduct measures to classify and restructure debts in line with the restructuring of weak commercial banks.
- The Ministry of Fiance (MoF) collaborates with relevant ministries, agencies and localities to conduct the fiscal policies in appropriate manner; closely and effectively combine the fiscal policies with the monetary policies; ensure budget balance and keep the budget overspending rate under the NA’s preset target; practice thrift and prioritize capital for development investment; speed up disbursement of investment capital from the budget, Government bond and national target programs.
- The Ministry of Planning and Investment cooperates with relevant ministries, agencies and localities to review and resolve production and business difficulties, particularly in advantageous areas like agriculture, tourism and export; strengthen development investment and encourage social investment; study and propose synchronous solutions to lure more FDI inflow, especially for projects on high-tech and clean energy from potential partners; and seek corresponding capital for ODA projects; works with the Ministry of Finance and the Ministry of Industry and Trade to provide more expenditures for trade promotion programs on the principals of tightened management and fruitful use.
- The Ministry of Industry and Trade is responsible for working with other ministries, agencies and localities to accelerate exports, especially the advantageous and key commodities; enhance trade promotion activities; make full use of the recovery trends of the international markets to boost export turnover; support bussiness in selling their products, reduce high inventory rate by launching pro-consumption programs, bringing Vietnamese goods to rural areas; collaborating with the Ministry of Foreign Affairs to speed up the signing of the Partnership and Cooperation Agreement (PCA) with the EU.
- The Ministry of Agriculture and Rural Development is responsible for collaborating with relevant ministries, agencies and localities to revitalize agricutlural and fishery production, maintain the growth pace; positively respond to complicated developments of natural disasters; hasten progress of flood prevention projects; strictly control the use of prohibited substances in breeding; ensure food safety and develop the breeding sector.
- The Ministry of Labor, Invalids and Soceity is in charge of collaborating with relevant ministries, agencies and localities to deploy solutions to support rapid and sustainable poverty reduction in extremly poor districts and villages; take care of people having merits and prevent hunger; conduct measures to generate more jobs and raise income for laborers; especially support the unemployees from dissolved and bankrupted enterprises.
- The Ministry of Health is responsible for reviewing regional hospital plans; proposing rearrangement options in appropriate manner; avoiding inappropriate and overlapping investment; promply submitting a project on reducing hospital overload to the Prime Minister; working with relevant ministries, agencies and localities to prevent epidemics and ensure food safety; control pharmaceutical prices, report tuberculosis situation and submit solutions to the Prime Minister to slash down the number of tuberculosis-infected people in the comming time.
- The Government Inspectorate is assigned to collaborate with relevant ministries, agencies and localities to focus on resolving complaints and denunciations, especially those on land, involving a large number of people and lasting for long time; strengthen live dialogues; absolutely settle cases at local level; intensify anti-corruption work; quickly implement the conclusion of the Prime Minister at the national conference on citizens’ reception, complaints and denunciations settlement.
- The Ministry of Information and Communications works with other ministries, agencies and localities to strengthen dissemination of policies, management solutions and regulations in appropriate manner. Press agencies need to uphold responsibility for the country and people to provide subjective and accurate information with a view to creating social concensus and contributing to successfully realizing the preset socio-economic targets.
The Ministry of Planning and Investment (MoPI) works with the Office of Government to collect comments from the Cabinet members to finalize the Government’s Report on the socio-economic performance in the first fourth months, tasks and solutions in the coming time and submit the report to the National Assembly at its third session; prepare the report of the Government’s Party Committee and submit it to the fifth meeting of the Communist Party of Vietnam Central Commitee.
2. The Government discussed and commented on the Report on reviewing and removing barriers against investment efficiency which was presented by the Minister of Planning and Investment.
The Ministry of Planning and Investment is in charge of working with relevant ministries and agencies to collect comments at the Government’s regular meeting to finanlize the report, clearly define specific responsibility of each ministry and agency in fulfilling the tasks, develop documents on the implementation of the report and submit them to the Prime Minister.
3. The Government discussed and reviewed the Report on business operation situation and financial solutions to resolve those difficulties against enterprises, presented by the Minister of Finance; the Report presented by the Minister of Planning and Investment on business performance in the first four months of 2012 and some measures to unbind difficulties; the Report on enterprises reform in accordance with Directive No. 03/CT-TTg on stepping up the restructuring of state-owned enterprises in the first four months of 2012, presented by the Steering Committee on Business Renovation and Development; the Report on business performance and suggestions presented by the Chairman of the Vietnam Chamber of Commerce and Industry.
The Government fundamentally agreed with the solutions proposed by ministries and agencies to ease difficulties for enterprises and advocated the synchronous measures on monetary policy, credit, finance and administrative reform to resolve difficulties for businesses in production, and business, boost growth rate and generate jobs for laborers.
The Ministry of Fiance works with the Ministry of Planning and Investment, the State Bank of Vietnam, the Ministry of Justice and the Office of Government to draft a resolution on measures to resolve difficulties against production, business, market support and submit it to the Prime Minister for consideration in early May, 2012. Regarding issues beyond the Government’s competence, the Ministry of Finance is responsible for identifying them, then report to the Government to submitting to the National Assembly for consideration and decision.
4. The Government discussed and commented on the Project on restructuring SOEs, particularly of economic groups and corporations, in the 2011-2015 period, submitted by the Minister of Finance.
The Cabinet members unanimously stressed the necessity to pursue the SOEs’ restructure to improve their status, function and role, and improve their performance to fulfill assigned tasks. It is essential to have subjective and comprehensive view while assessing the public business sector to define effect in every economic, political and social aspects, clarify state management responsibility in SOEs; focus on institution building in this field and issue a specific decree for large-scale economic groups and state corporations.
The Ministry of Finance is in charge of working with the Office of Government and relevant ministries and agencies to collect comments, finalize the project and submit it to the Prime Minister for consideration and decision.
5. The Government discussed and commented on the Government’s action program presented by the Minister of Planning and Investment to realize Resolution 13-NQ/TW of the Central Committee of the Communist Party of Vietnam (CPV) dated on January 16, 2012 on building synchronous infrastructure and converting Vietnam into a modern industrial country by 2020.
The Ministry of Planning and Investment works with the Office of Government to collect comments of the Cabinet members to finalize the draft action plan and submit it to the Prime Minister for consideration and issuance./.
ON BEHALF OF THE GOVERNMENT
Nguyen Tan Dung