SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom - Happiness
Hanoi, July 9, 2012
The Government’s regular meeting- June 2012
The Government on July 2-3 convened its regular meeting for June with the participation of Chairmen of Provincial and Municipal People’s Committees to discuss and decide the following issues:
1. Reports on socio-economic performance in June and the first half of 2012; the realization of Resolution No. 01/NQ-CP and Resolution No. 13/NQ-CP; Government’s operations in the first six months and the Working Program for the second half of 2012; the fulfillment of Vietnam’s international commitments in the first six months; the implementation of the administrative reform in the first half of 2012; the settlement of complaints, denunciations and anti-corruption in the reviewed period, which were presented by the Minister of Planning and Investment, the Minister of Foreign Affairs, the Minister of Home Affairs, the Chief Inspector of the Government Inspectorate and the Minister-Chairman of the Office of Government.
The Cabinet members agreed that the Government’s operations were deployed comprehensively in all areas, focusing on inflation curbing, macro-economic stabilization, social welfare guarantee, step by step restructuring the economy toward improving its quality, effectiveness and competitiveness to successfully fulfill the socio-economic goals for 2012 and for the following years.
The Government strictly observed its Working Regulations to ensure the principles of centralism and democracy; uphold collective leadership and individual accountability of the Prime Minister and other Cabinet members; abided by the Constitution and law and enforced disciplines; implemented Resolutions and conclusions adopted by the Party Central Committee, the Politburo and National Assembly; closely coordinated with organs of the Party, the National Assembly, the Vietnam Fatherland Front and mass organizations. The Cabinet members actively conducted their assigned tasks, strengthened supervision to timely resolve difficulties against localities and enterprises.
Thanks to the drastic management and regulation of the Government and the Prime Minister, coordination and consensus of the whole political system and enormous endeavor of people and the business community, the socio-economic performance progressed in a positive manner in the first half and got on track with initial outcomes: Inflation was put under control and the macro-economy was stabilized. The consumer price index (CPI) dropped gradually, in the first six months, it surged 2.52% against the end of 2011. Interest rates decreased; the total outstanding credit was gradually bouncing back; the liquidity of the banking system was getting improved; exchange rate was stable; foreign reserve increased; the balance of international payment got better.
Export turnover saw a year-on-year increase of 22% against the same period last year; trade gap accounted for 1.3% of the total export value. Industrial production positively advanced, especially processing industry while the inventory level dropped steadily; agricultural production increased stably. Total retail sales of goods and services increased by 19.5% against the same period. The number of tourists grew sharply. Social welfare was among priorities with promising signs. Education, science, technology, healthcare, culture, sports, information, environmental protection and job generation were also making progress. The administrative reform, settlement of complaints, denunciations and anti-corruption, thrift practice and anti-wastefulness continued to be sped up. National defense was enhanced, political security and social order and safety were maintained. Traffic safety progressed and traffic accidents considerably fell. Diplomatic activities gained numerous outcomes.
Besides the achievements, difficulties and obstacles still remain with lower-than-expected inflation rate, high interest rates; slow progress in allocation and disbursement of investment projects financed by State budget and Government bonds; high inventory levels; sluggish production; lower growth rate compared with the same period of 2011; high rate of business dissolution and low budget collection. Food hygiene and safety, environment continued to cause public distress; the poor, ethnic minorities, unemployed people suffered from poor living conditions. Social evils and social safety became urgent in some places.
The Government defined top tasks for the rest of the year: Resolving difficulties and accelerating production and business while reining in inflation, stabilizing the macro-economy in favor of sustainable growth; gradually restructuring the economy towards higher efficiency, quality and competitiveness; maintaining political security and social order and safety and ensuring social welfare. The Government asked ministries, agencies and localities to enforce the measures enshrined in Resolution 01/NQ-CP and Resolution 13/NQ-CP, other resolutions of the Government’s regular meetings, management documents of the Government, the Prime Minister; focusing on the following tasks:
- The State Bank of Vietnam continues to regulate the monetary policy in an active, flexible and effective manner in line with macro-economic balance; reduce lending interest rate, create favorable conditions for peasants and enterprises to access to credit loans; muster up capital for priority fields especially agriculture and aquaculture. The Ministry is responsible for keeping track of the developments of the monetary and credit fields for appropriate adjustments in a bid to increase outstanding loans and total payment means at appropriate levels to back production and business and curb inflation in both short and long term; promptly assessing bad debts and analyzing debt situation, taking drastic measures to deal with bad debts and weak banks; regulating exchange rate and foreign currency policy in a flexible manner in line with the macro-economic balances in order to encourage export, reduce trade gap, improve balance of payments and increase foreign reserves.
- The Ministry of Finance works with ministries, agencies and localities to realize the fiscal policy in a cautious and effective manner and combine it with the monetary policy to keep the inflation rate as set; accelerates the implementation and disbursement of projects financed by the State budget and Government bonds; strengthens management and heightens responsibility for the use of the State budget and keeps the overspending rate at 4.8%; provides tax assistance to accurate beneficiaries and examines export tax reductions for some agricultural products; realizes the market-driven pricing roadmap to regulate prices of State-controlled commodities; strengthens inspection and control over prices and market; strictly fines activities relating to irrational price increases especially important raw materials and essential commodities.
- The Ministry of Planning and Investment, in collaboration with the Ministry of Finance, relevant ministries, agencies and localities continues to review and amend related policies on investment environment in a bid to extricate difficulties and create favorable conditions for production in advantegious areas and high-quality service and tourism activities; quickly submits plans for allocating investment capital in advance for projects which would be completed in 2012 and 2013; proposes measures to lure and disburse FDI and ODA and seeks responding capital to speed up ODA projects, especially urgent ones in 2012; elimitates unreasonable investment obstacles; streamlines administrative procedures and creates favorable conditions for investment and business.
- The Ministry of Industry and Trade collaborates with relevant ministries, agencies and localities to boost trade promotion activities; maintain high growth rates in key industries, advantageous and competitive areas; verify quality of exports; expand exports to potential or recovering markets and improve quality of traditional goods; strengthen information dissemination and market forecasts; strictly control imports, especially non-essential commodities, agro-products, foodstuff and goods imported without origins; deploy promotion programs to stimulate consumption; renovate distribution system to bring goods to rural areas.
- The Ministry of Agriculture and Rural Development (MARD) works with relevant ministries and agencies to propose investment policies for agricultural sector, peasants and rural areas to uphold the advantages in agricultural production in socio-economic stabilization; fruitfully realize the national target program on building new rural areas and amend the set of criteria and policies to support the program. The Ministry steps up rice production; adopts proper policies to bring rice production and aquaculture cultivation into full play in key regions; builds projects and policies to encourage scientific applications in household-based breeding and farmhouses; prevents epidemics and ensures food hygiene and safety; coordinates with the Ministry of Industry and Trade to compose a project to beef up trade promotion for farm products, firstly catfish; promptly drafts a decree on fishery control force; implements plans on forest protection and development, flood prevention and disaster mitigation.
- The Ministry of Labor, Invalids and Social Affairs collaborates with ministries, agencies and localities to focus resources on realizing policies on social welfare and national target programs which support poor areas, disadvantaged regions; centers on job generation for unemployed people from dissolved enterprises and those from land reclamation; closely supervises the payment of unemployment insurance to ensure the use of the State Unemployment Insurance Fund in equal and safe manner; accelerates fast and sustainable poverty reduction measures in poorest districts, communes and hamlets as well as in disaster-hit areas; effectively implements the preferential policies for people meritorious services to the country and organizes the 65th anniversary of War Invalids and Martyrs’ Day (July 27) in accordance with Government’s Direction 12/CT-TTg.
- The Ministry of Health cooperates with relevant ministries, agencies and localities to finalize the project on easing hospital overload; review the regional hospital planning schemes; improve healthcare services; actively prevent dangerous epidemics and control drug prices. The Ministry is responsible for raising the healthcare insurance coverage rate in combination with renovating management and implementation of healthcare insurance and working with the Ministry of Planning and Investment to update universal health insurance criteria to the criteria system and national plans since 2013; paying due care to the development of grass-roots medical establishments and preventive medicine.
- Ministries and agencies promptly finalize and implement the overall project on economic restructuring in combination with growth model renovation with a view to improving the economy’s quality, effectiveness and competitiveness; build component plans for the economic restructuring, in line with national real conditions and resources; closely coordinate with localities to review and finalize the planning schemes on socio-economic, sectoral and regional development; enhance inspection, supervision and management over the implementation of the planning schemes.
During approval process of hydro-electric projects, it is necessary to ensure resettlement, environment protection, forest preservation and safety. If projects fail to meet the aforesaid conditions, they will not be approved and implemented. The Ministry of Construction works with the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development and relevant agencies to assess safety levels of hydro-electric and irrigation lakes, then report it to the Prime Minister.
- The Ministry of Information and Communications works with relevant ministries, agencies and localities to actively provide adequate, timely, open and transparent information about the socio-economic performance and policy orientations through various ways like online talks and comment collection (on policies) in order to create high consensus and uphold social strength towards the fulfillment of the socio-economic goals for 2012.
- Ministries, agencies and localities continue to improve management and regulation capacity to timely deploy passed mechanisms and policies; seriously enforce the Working Regulations; respect for administrative disciplines and improve working style; positively prepare for and submit projects and tasks within working programs; compose bills and ordinances; issue guiding documents for the implementation of effective laws and ordinances on schedule and in good quality; quickly build specific action plans and programs to implement the Resolutions and Conclusion adopted at the 4th and 5th plenary sessions of the 11th Party Central Committee, at the 3rd session of the 13th National Assembly and Government’s commitments at the NA. The Cabinet members review and assess their performances in the first year of the 2011-2016 term and report to the Prime Minister before July 20, 2012.
The Ministry of Planning and Investment is responsible for collecting comments of the Cabinet members and representatives to this meeting to finalize the Report on socio-economic performance in June and the first six months of 2012, the realization of Resolution 01/NQ-CP and Resolution 13/NQ-CP. The Office of Government collects comments of the Cabinet members to complete the Report on Government’s management and regulation in the first half and the Working Program for the second half of 2012 and submits them to the Prime Minister for consideration before sending to ministries, agencies and localities.
2. The Government discussed and commented on the Roadmap and plans for reducing corporate income tax and value added tax, submitted by the Minister of Finance.
The Government unanimously agreed that the roadmap for reducing corporate income tax and value added tax should be added to the Tax Reform Strategy through 2020. In the current condition, the reduction of value-added tax and corporate tax is not under consideration; it is necessary to focus on the exemption, cut or extension of tax and land use expenditure for enterprises, household businesses and individuals in accordance with Resolution 13/NQ-CP, dated May 10, 2012 and the Resolution adopted at the 3rd session of the 13th NA on tax reduction and exemption. The Ministry of Finance keeps a close watch on the reality for appropriate responses; proposes plans for tax assistance to encourage consumption of some of agro-products and support businesses operating in agriculture and rural areas.
3. The Government discussed and commented on non-core investment and disinvestment situation in State economic groups and corporations, presented by the Minister of Finance.
The withdrawal of State capital from non-core business lines by groups and corporations is an important element of the SOEs restructuring process. By 2015, the groups and corporations have to complete the withdrawal in a transparent manner to preserve State capital and property. The groups and corporations need to quickly develop their own restructuring plans, including those on disinvestment in non-core business lines (even investments in joint-ventures that are irrelevant to core business lines), then, submit them to competent agencies for approval and implement them. Regarding fields with possible capital loss, the groups and corporations must develop appropriate disinvestment plans and submit them to competent agencies for considering each specific case. For fields with effective investment or encountering temporary difficulties, disinvestment will be done at proper times in order to preserve State capital. Relevant ministries, agencies and provincial People’s Committees examine, ratify or submit the disinvestment plans after receiving approval from the Ministry of Finance. The capital withdrawal needs specific roadmaps and plans in line with the restructuring process in each group or corporation, especially in sensitive and high-risk areas like real estate, banking, finance and insurance.
The Ministry of Finance appoints comptrollers in economic groups and corporations to supervise the management and spending of State budget in SOEs during the restructuring process; at the same time, instruct, verify and oversee SOEs’ disinvestment.
4. The Government debated and gave comments on the granting of guarantee credit for the Vietnam Aircraft Leasing Company to purchase of airplanes, presented by the Minister of Finance.
The purchase of planes is necessary to support the Vietnam Airlines to develop the air-crew in accordance with the international practices, reduce reliance on foreign providers and aircraft leasing companies.
The Government agreed in principle the granting of guarantee for foreign credit loans for the Vietnam Aircraft Leasing Company’s aircraft purchase. The Ministry of Finance is in charge of concluding procedures on granting the guarantee and submit them to the PM for approval.
5. The Government debated and commented on the National Strategy for Environmental Protection by 2020 with a vision towards 2030, presented by the Minister of Natural Resources and Environment.
The Ministry of Natural Resources and Environment works with the Office of Government to collect comments at the meeting, perfect the draft strategy and submit it to the Prime Minister for consideration and issuance.
6. The Government debated on and gave comments on the Law on Anti-terrorism, presented by the Minister of Public Security.
The Ministry of Public Security works with the Ministry of Justice, the Office of Government and relevant agencies to collect comments of the Cabinet members and perfect the bill. On behalf of the Prime Minister and the Government, the Minister of Public Security will report the bill to the National Assembly Standing Committee before submitting it to the NA.
7. The Government discussed and commented on the Law on Natural Disaster Prevention and Mitigation, presented by the Minister of Agriculture and Rural Development.
The Ministry of Agriculture and Rural Development, in collaboration with the Ministry of Justice, the Office of Government and relevant ministries collect comments of the Cabinet and perfect the bill. On behalf of the Prime Minister and the Government, the Minister of Agriculture and Rural Development will report it to the National Assembly Standing Committee before submitting to the NA./.
ON BEHALF OF THE GOVERNMENT
Nguyen Tan Dung