SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom - Happiness
Hanoi, August 3, 2012
The Government’s regular meeting- July 2012
The Government on July 30-31 convened its regular meeting for July to discuss and decide the following issues:
1. Reports on socio-economic performance in July and the first seven months of 2012; the realization of Resolution No. 01/NQ-CP on key solutions guiding the implementation of the socio-economic development plan and State budget forecasts in 2012 and the Resolution No. 13/NQ-CP on solutions for easing difficulties against production and business and supporting the market, presented by the Minister of Planning and Investment.
The Cabinet members agreed that the socio-economic situation in July and the first seven months of this year have shown positive signals. Solutions to curb inflation, stabilize macro-economy and unbind difficulties against businesses have proved to be effective. The Consumer Price Index in July reduced 0.29% compared to the previous month while the first-seven-month index increased 2.22% against December 2011.
The falling lending rates have helped restore market confidence and push up credit growth. The exchange rate was sustainable, balance of payment has been improved, export turnover sharply increased, trade deficit lessened and was much lower than the same period in the recent years. Industrial production was back on track, agriculture-forestry-aquaculture continued developing stably. Service sector gained a fairly high growth, the total of retail sales of goods and services and foreign arrivals to Vietnam continued to rise. Healthcare, education and training, cultural and sports activities were enhanced; social security and welfare were basically guaranteed. The nation held a number of meaningful activities to return favor and pay tribute to war invalids, sick-soldiers, relatives of revolutionary martyrs, and persons with meritorious service to the country on the occasion of the 65th anniversary of the War Invalids and Martyrs’ Day. The work of administrative reform, settlement of complaints and denunciations, anti-corruption and anti-wastefulness were paid due care. National defense and security were strengthened, social order and safety were guaranteed, traffic accidents continued to dip, foreign relations have been broadened and gained a number of successes.
However, the socio-economic status still faced a lot of difficulties and challenges: economic growth was much lower than the same periods of previous years, the CPI fell in two successive months and was inclined to be lower than the set target, credit growth rate was much lower than the goal while lending rate was still high. The import of equipment and materials considerably decreased, causing negative impacts on investment, production, business and export in the time to come. Enterprises have been encountering difficulties and some were dissolved or suspended production. Industrial production index in July was equal to 54.5% of the same period in 2011. Inventory index remained high, the domestic consumption slowly increased. State budget collection was low and disbursement for development investment was slow. Life of certain groups was still difficult. Social evils and crimes were still complicated. Meanwhile, regional and international economic and politic status was still unstable, which affected our country’s socio-economic performance.
The Government tasks ministries, agencies and localities to overcome the current difficulties and challenges to boost up production, continue curbing inflation and stabilizing macro-economy in rest of 2012 and following years, and drastically realize the targets, missions and solutions set in the Resolutions adopted by the Party, National Assembly and Government, especially the Resolution No. 01/NQ-CP issued on January 3, 2012 and the Resolution No. 13/NQ-CP issued on May 10, 2012, focusing on following tasks:
- The State Bank of Vietnam continues to regulate the monetary policy in an active, effective and flexible manner in accordance with macro balances; reduce lending rates to stimulate credit growth rate, support economic growth, and create favorable conditions for businesses to get access to bank credit; supervise the application of lending rates and the implementation of low-interest rates for preferential sectors; restructure commercial banking system in accordance with the Roadmap set by the approved Project on restructuring credit institutions and take drastic measures to deal with bad debts and ineffective banks. The Central Bank is also responsible for coordinating with the Ministry of Finance to finalize the working procedures of the credit guarantee Fund for small and medium sized businesses to help them overcome difficulties and push up production.
- The Ministry of Industry and Trade cooperates with relevant ministries, agencies and localities to actively develop domestic market; launch promotion programs, stimulate consumption to deal with high inventory, spur production; strengthen trade promotion and market information and accelerate export. The Ministry is assigned to work with the State Bank of Vietnam to support credit for key export products, quickly take measures to tighten control over temporarily imported goods for re-export, especially frozen food, oil, second-hand consumer goods, etc; effectively control imports in accordance with international commitments to protect domestic products and limit the import of unnecessary commodities, prevent smuggling, trade fraud and tax evasion, particularly in border areas.
- The Ministry of Planning and Investment cooperates with relevant ministries and agencies to speed up disbursement of State budget, Government bonds, official development assistance (ODA) capital, foreign direct investment (FDI); quickly estimates demands for corresponding capital (on account) of 2013 for projects which are likely to be completed in 2012 or in early 2013, then report it to the Prime Minister for approval; and work with provincial People’s Committees to prepare corresponding capital for ODA projects suggested by localities and cities.
- The Ministry of Finance coordinates with relevant ministries and agencies to effectively regulate fiscal policy in close combination with the monetary and credit policies in order to improve the total demand for goods and services; focus on accelerating the disbursement of State budget, Government bonds, and corresponding capital set for 2013 for projects likely to be completed in 2012 or in first half of 2013; considers to extend the deadline for value-added tax payment for three months within the jurisdiction of the Government; cooperates with the State Bank of Vietnam to make proposals to strengthen the effectiveness of credit guarantee fund for businesses; instructs localities to provide preferential credit assistance from the local budget; strengthens State budget collection management.
- The Ministry of Agriculture and Rural Development guarantees seasonal crops, pushes up rice production in form of “large fields”; quickly submits to the Prime Minister the Tra fish and cattle purchasing assistance policy; proposes measures to purchase farm produce and seafood to ensure the benefits of producers; invests in equipment for fishery control force; pushes up the progress of projects on flood and storm prevention and copes with calamities.
- The Ministry of Construction cooperates with relevant agencies and localities to propose mechanisms and policies to recover the real estate market; completes the social housing development project for low-income people, laborers at industrial parks, soldiers and military officers, students, etc, in order to fruitfully realize the National Housing Development Strategy toward 2020 and vision to 2030.
- The Ministry of Labor, Invalids and Social Affairs cooperates with ministries, agencies and localities to deploy the Ordinance on the amendments to some of the articles of the Ordinance for people with meritorious service to the country, the Labor Law (revised); strengthens measures to raise the effectiveness of social welfare policies, particularly for people with meritorious service to the country and the poor; cooperates with the Ministry of Planning and Investment, Ministry of Finance to propose mechanisms and policies to support poor districts and present them to the Prime Minister for approval; focuses on creating jobs for laborers from dissolved or bankrupt businesses, for households whose land is evicted; coordinates with relevant ministries, agencies and localities to propose proper policies to guarantee the life of invalids and create jobs for their children.
- Ministries and ministerial-level agencies quickly complete Decrees on their functions, missions and structural organization, then sumit them to the Government for consideration and approval; actively launch the programs and plans of action to realize the Resolutions and Conclusions passed by the 4th and 5th plenum of the 11th Party Central Committee and guarantee the quality and progress of projects to be submitted to the Party Central Committee’s 6th plenum; closely coordinate with localities to boost up the progress of site clearance for approved projects. The Cabinet members focus on checking their works in a bid to realize commitments to the National Assembly and answer all the questions of the voters and NA deputies.
- The Ministry of Information and Telecommunications coordinates with relevant ministries, agencies and localities to accelerate information dissemination to create the consensus and stabilize the psychology of economic organizations and citizens for the Party’s guidance and State’s policies, etc; quickly find out solutions to manage and promote the effectiveness of information and communication area, especially e-newspapers and websites. The Ministry is also responsible for cooperating with the Party Central Committee’s Commission of Propaganda and Education to organize weekly press meetings.
2. The Government discussed and commented on the draft Decree on delegation of rights, responsibilities and duties of State ownership representatives in SOEs and State’s capital, which was presented by the Minister of Planning and Investment.
The Government was unanimously agreed that the delegation of rights, responsibilities and duties of State ownership representatives over SOEs and State capital is a key solution to the SOEs restructuring process in order to preserve and enhance the efficiency of State’s capital. The Decree needs to clearly stipulate the rights, responsibilities and duties of the State ownership representatives in SOEs, especially corporations and groups. The State ownership representatives include the Government, the Prime Minister, ministries, provincial People’s Committees, boards of members and representatives; clarify the role and responsibilities of ministries in supervising, checking the implementation of laws, strategies, plans, missions and evaluate the activities of SOEs in managing and using the State’s capital.
The Ministry of Planning and Investment is responsible for working with the Ministry of Justice, the Office of Government to collect comments from the Cabinet members, complete the draft Decree and submit it to the Prime Minister for issuance.
On the basis of the results of 10-year re-arrangement, renovation and efficiency improvement of State-owned enterprises, the Prime Minister’s Directive No. 03/CT-TTg dated on January 17, 2012 on accelerating SOEs restructuring and Prime Minister’s Decision No. 919/QĐ-TTg dated on July 17, 2012 on approving the Project on SOEs restructuring, focusing on State owned economic groups and corporations for the 2011-2015 period, the ministries and agencies will review and adopt orientations for re-arranging corporations and groups in accordance with real situation, market conditions, management and financial capacity, assigned requirements and duties in order to increase their effectiveness and role, then present them to the Prime Minister in August 2012.
3. The Government discussed and commented on the Project on basic and comprehensive education and training renovation, human resource quality improvement to meet the requirements of industrialization, modernization and international integration which was presented by the Minister of Education and Training.
The Cabinet members were asked to make written comments on the aforesaid project. The Ministry of Education and Training was assigned to cooperate with the Office of Government and relevant agencies to collect comments, then finalize the project and report it to the Prime Minister before submitting to the Politburo and the 6th plenary meeting of the 11th Party Central Committee.
4. The Government discussed and commented on the Project on science and technology development for industrialization, modernization and international integration which was presented by the Minister of Science and Technology.
The Government asked the Cabinet members to make written comments on the above project and assigned the Ministry of Science and Technology to cooperate with the Office of Government and relevant agencies to collect the comments, then finalize the project and report it to the Prime Minister before submitting to the Politburo and 6th plenary meeting of the 11th Party Central Committee./.
ON BEHALF OF THE GOVERNMENT
Nguyen Tan Dung