The Government’s regular meeting- June 2013

 RESOLUTION

The Government’s regular meeting- June 2013

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The Government on June 27 and 28, 2013 convened its regular meeting with the participation Party Secretaries, Chairmen of People’s Councils and Chairmen of People’s Committees of provinces and centrally-governed cities to discuss and decide the following issues:

1. Reports on: socio-economic performance in June and the first six months of 2013; the implementation of Resolution No. 01/NQ-CP and Resolution No. 02/NQ-CP; administrative reform in the 2^nd quarter of 2013; and inspection, settlement of complaints and denunciations, anti-corruption work in the first half of 2013. The reports were presented by the Minister of Planning and Investment, the Minister of Home Affairs, and the Government Chief Inspector.

The Government agreed that in the first six months, all levels and sectors actively carried out measures enshrined in the Resolutions of the Party and the National Assembly, Resolutions No. 01/NQ-CP, No. 02/NQ-CP and other resolutions adopted at the Government’s regular meetings. Socio-economic performance positively changed in the right direction and obtained important results in all aspects. Macro-economy was more stable, paving a favorable way for the fulfillment of development goals on production, business, economic restructuring, and growth model transformation. Inflation was put under control; prices and the domestic market were kept stable. Interest rates were on the decline; outstanding loan improved; foreign reserves increased sharply. Tax exemption, reduction and breaks contributed to easing difficulties against production and business activities. Exports surpassed preset targets; trade deficit was controlled at low rate; imported machines, devices and raw materials for production tended to be positive. Economic sectors and aspects improved; GDP in the 2^nd quarter was estimated at 5%, higher than that in the first quarter, as a result, the growth in the first six months was 4.9%. Industrial production, particularly processing and manufacturing industry, gradually recovered and saw changes, inventory was on the decline while agricultural production was relatively stable. New rural construction program achieved positively results, attracting the interest of the political system and people. The growth of service sector, registered and disbursed foreign direct investment (FDI) and disbursement of official development assistance (ODA) were higher than the same period last year. Social security and social welfare was basically guaranteed; the other areas like culture, education, health, employment were given attention and obtained satisfactory results.

Administrative reform and settlement of complaints and denunciations, anti-corruption were among priority areas. Politics and society were stable; national defense was strengthened; security, social safety and order were maintained. Foreign affairs were promoted, achieved many satisfactory results and heightened the country’s position.

However, there remain difficulties and challenges to the socio-economic performance: interest rate declined sharply but enterprises still found it difficult to gain access to and absorb capital source, credit growth surged slowly in comparison with the year targets, rate of bad debts was still high. Budget collection and development investment capital were low in comparison with the preset plan. Production and business activities rebounded gradually; the total demand of the economy was low. Agricultural production grew gradually; poultry breeding and aquatic cultivation coped with difficulties; rice exports encountered fierce price and market competitions. A proportion of people still coped with life, job and income difficulties. Traffic accidents and crime still developed complicatedly. Natural disasters and epidemics were implicit and unpredictable. The realization of master plan on economic restructuring only gained the initial results. The Government’s resolutions, particularly the concretization of measures in accordance with Resolution No. 02/NQ-CP were slowly put into reality, failing to meet the preset requirements. While, the global and regional economies were forecast to continue evolving complicatedly, which may potentially affect our economy and society.

The Government asked ministries, agencies and localities to uphold positive results, resolutely overcome difficulties, consistently strive to realize targets, tasks and measures in line with Resolutions of the Party Central Committee, the National Assembly and the Government, focusing on the following key issues:

- Continue to concretize the Government-initiated mechanisms, policies and solutions stipulated in the Resolution 01/NQ-CP and Resolution 02/NQ-CP, Resolutions adopted at the Government regular meetings, and guidance documents; follow up the reality, manage flexibly, focus resolving difficulties in production and business, ensure targets of economic restructuring and growth model reform. Promptly issue and carry out drastically and efficiently programs on sectoral restructuring in line with the approved master plan on economic restructuring.

- The State Bank of Viet Nam manages the interest rates in accordance with the macroeconomic and monetary developments, particularly the happening of inflation in order to control and regulate the lending interest rates to reasonable levels, contributing to the stability of the monetary market and speed up credit growth; instructs credit organizations to continually prioritize credits for priority areas, assist promising enterprises in borrowing capital in favor of production and business; restructures debts and continues to lend poultry breeding and aquatic cultivation households if customers ensure consumption and are capable to pay debts; supports to solve difficulties for enterprises trading in coffee; actively implements the policy on housing assistance loans; accelerates the operation of the Viet Nam Asset Management Company (VAMC) in July 2013 to resolve non-performing loans; closely monitor exchange rate and monetary market; takes measures to stabilize gold market and complete the return of all gold deposits to investors in accordance with legal regulations.

- The Ministry of Finance takes prime responsibility to collaborate with other ministries, agencies and localities to speed up the realization of Prime Minister’s Directive No. 09/CT-TTg dated May 24, 2013 on strengthening the direction and management in implementing State budget – financial tasks; conduct the policies on tax exemption, reduction, breaks, and tax refunds to avoid tax losses and debts; spend budget in a tight, and economical manner; strive to complete the tasks of State budget collection and spending in 2013; review and summarize the State budget in the first six months, capacity of State budget in 2013 and budget balance in 2014, then report to the Prime Minister before July 10, 2013.

- The Ministry of Planning and Investment takes prime responsibility to cooperate with ministries, agencies and localities to take measures to encourage social investment, actively speed up investments to stimulate total demand; facilitate the economic sectors’ investment, particularly FDI and ODA; accelerate progress and disbursement of capital sourced from the State budget and Government bonds; cooperates with the Ministry of Finance to submit options to the Government regarding the allocation of capital as planned in 2014 for national key and urgent projects, especially site clearance for key projects, and corresponding capital of ODA projects. Localities focus on drastically directing site clearance to ensure progress of projects within their administrative boundaries.

- The Ministry of Industry and Trade actively deploys programs of trade promotion, domestic market expansion and enhancement of purchasing power; addresses difficulties against, speed up industrial production, especially processing and manufacturing industry; bolsters trade promotion efficiency, consolidates and expands export markets, encourages exports; works with the Ministry of Finance to streamline export procedures at local level and border gates; works with the Ministry of Agriculture and Rural Development to quickly make a plan to re-organize and manage rice export agents;

- The Ministry of Agriculture and Rural Development is responsible for implementing the Project on restructuring agricultural sector and instructing localities to concretize the project into programs and plans to restructure each sector and product; supervises and speeds up the purchase of Summer-Autumn rice for temporary storage, contributing to ensure farmers’ income; promptly completes and submits to the Prime Minister the Regulation on temporary rice stockpile; assesses the damage caused by the use of new rice breed to take supportive measures; considers and supplies concrete guidance for localities in conversion of low-productivity rice area into model of other higher efficient cultivation without causing loss of land capacity for rice cultivation; disseminate information about and expands efficient models of agricultural production and breeding; guides to combine programs and mobilizes the socialization for the realization of new agricultural and rural programs. The Ministry of  Agriculture and Rural Development collaborates with functional authorities and localities to actively take measures to supervise flooding and storm and timely respond to complex development of natural disasters and epidemics.

-  The Ministry of Natural Resources and Environment strengthens inspection, speeds up and solves in a timely manner difficulties during the issuance of land use right certificates in line with the National Assembly’s Resolution.

- The Ministry of Construction and ministries, agencies and localities, particularly large cities, actively resolve difficulties in real estate market in combination with the implementation of housing strategy; works with related ministries and agencies to supply concrete guidance designed for social housing and low-income people; works with the State Bank of Viet Nam to determine criteria for enterprises acquire preferential loans when conducting social housing projects or transforming commercial housing projects into social housing ones.

- The Ministry of Transport actively speeds up the progress of projects of investment, improvement and expansion of the National Road No. 1, No. 14 and other key transport projects; closely works with localities where projects are located to conduct the site clearance, ensure transport order and safety during the project implementation. The Chairmen of People’s Committees of provinces and cities guide the settlement of difficulties and facilitate the material supply for the construction of transport projects; concurrently, strengthen checks, inspect and deal with overload vehicles which damage the transport infrastructure.

- The Ministry of Labor, Invalids and Social Affairs continues to synchronously and effectively implement policies on social security and welfare, and national target programs on poverty reduction and job generation; deploys efficiently measures on vocational training, assesses results of three-year vocational training program for rural laborers; works with the Ministry of Education and Training to quickly merge Vocational Training Centers and district-level Continuing Education Centers into continuing vocational training and education centers; collaborates with the Ministry of National Defense to instruct the solution of outstanding issues for invalid soldiers whose documents are insufficient as stipulated, submits to the Prime Minister in July 2013.

- The Ministry of Health continues to take comprehensive measures to meet demands on medical examination and treatment of people; enhances personnel training to improve the quality of healthcare services at hospitals at all levels; actively carries out the project to reduce hospital overload; accelerates construction progress of hospitals;

- The Ministry of Home Affairs takes prime responsibility to collaborate with other ministries, agencies and localities to speed up the implementation of the Master program on State Administration Reform, promptly design and implement assigned projects in line with the Government’s Resolution No. 30C/NQ-CP, contents of program on speeding up the reform of public affairs and public cadres according to the Prime Minister’s Decision No. 1557/QD-TTg; determines and publicizes administrative reform indexes of 2012 in the 3^rd of 2013.

- The Government Inspectorate strengthens post-inspection supervision, evaluation and handling; focuses on solving outstanding and lengthening complaints and denunciations and newly-arisen issues; completes project on strengthening the implementation and control of asset and income declaration; provides consultation for the implementation of anti-corruption measures; submits to the Government to issue Decree on asset and income transparency, Decree on accountability of cadres, civil servants and leaders regarding the implementation of their tasks and public affairs.

- The Ministry of Information and Communications directs to boost the dissemination of mechanisms, policies, typical advanced models, achievements to build motive force and trust of the society. The ministries, agencies proactively provide information on regarding their management scope in a precise and timely manner to increase transparency; listen to the feedback on policy by the people for proper and effective adjustments; strictly settle the cases making use of freedom and democracy to disseminate wrong information, distort the nation situation, damage the reputation of agencies, organizations, individuals and interests of the people.

- Ministries, agencies pursuant to functions, responsibilities and authority, actively resolve or recommend solutions on the proposals made by People's Committees of provinces and cities mentioned in this meeting. The Office of Government speeds up and summaries the settlement of above proposals and submits to the Prime Minister.

2. Report on the review of direction and management of the Government in the first six months, presented by the Minister-Chairman of the Office of Government.

The Government agreed that: In direction and management, the Government, the Prime Minister always ensured the leadership of the Party, supervision of National Assembly; complied with the Constitution and law, implemented the right tasks, power as regulated; maintained the principle of democratic centralism, promoted team  role and heightened the individual responsibility; closely coordinated with the agencies of the Party, National Assembly, Viet Nam Fatherland Front, mass organizations, justice agencies during the performance of tasks. The Government led, directed and managed the administrative system, stuck to the set targets and gained many positive results in all aspects, both resolving the immediate matters and proactively deploying the medium and long-term objectives.

However, the direction and management work still has shortcomings which need to be addressed in the coming time, such as: the task of building institution, especially the promulgation of documents on detailed implementation of laws and ordinances, the implementation of work program of the Government have not met the set requirements; structural organization, administration reform, and discipline have not reached high efficiency; the organization of implementation, especially the guidance on the implementation of the guidelines, policies in some ministries, agencies is very slow.

The Office of Government receives the opinions by the Cabinet members and leaders of localities, completes the Government’s Report on revising the direction and management in the first six months of this year and sends to the ministries, agencies and localities.

The ministries, agencies, People's Committees of provinces and cities review the direction and management of ministries, agencies, localities and in combination with the assessment of the results of implementation of functions and tasks in the first half of the year; urgently repair the shortcomings and weaknesses; implement preset tasks.

3. Building and promulgating Decrees on detailed implementation of the Law on Handling of Administrative Violation submitted by the Minister of Justice.

The Prime Minister issued the Plan on implementation and list of Decrees detailing the implementation of Law on Handling of Administrative Violations. Ministries and agencies positively prepared and followed procedures as stipulated. However, the delayed issuance of such Decrees affects the implementation of the Law on Handling of Administrative Violations.

The Government requests ministries and agencies to work closely with the Ministry of Justice, Office of Government and inter-agency task force to speed up the drafting progress, receive opinions proposed by the Appraisal Advisory Council to edit and complete the draft Decrees, ensuring that the draft Decrees comply with the Constitution and laws and are feasible.

Regarding Decrees detailing the implementation of the Law on Handling of Administrative Violations which are not issued while such Law took effective since July 1, 2013, the Government agreed with the request made by the Minister of Justice on the continuous application of regulations of the available Decrees, attached forms and minutes in case they do not contravene the Law on Handling of Administrative Violations.

4. Report on restructuring the Viet Nam Shipbuilding Industry Group presented by the Minister of Transport

The Steering Committee for Restructuring of the Viet Nam Shipbuilding Industry Group, the Ministry of Transport were assigned to chair the receipt of opinions of the Cabinet members; work with related agencies and localities to complete the Project of continuous restructuring according to Conclusion of the Politburo, in line with the reality, combining restructuring, dissolution and bankruptcy; curtail production scope and focus on main lines of business; maintain key capacity of shipbuilding and repairing in line with the market, financial and management capacity; overcome difficulties and losses for gradually sustainable development.

The Ministry of Transport takes prime responsibility to collaborate with the Office of Government and the Steering Committee for Enterprise Renewal and Development to complete the draft Resolution on continuous restructuring of the Viet Nam Shipbuilding Industry Group, the submit it to the Prime Minister.

The Ministry of Transport prepares full and official information on situation, guidelines, targets, tasks and measures of restructuring the Group, selects suitable time for official declaration without affecting the handling of debts; and report to competent authorities.

5. Non-application of regulations on mortgaged assets regarding investment project on purchasing new planes of the Viet Nam Airlines Corporation submitted by the Minister of Finance

The Government agreed with the non-application of regulations on mortgaged assets regarding export credit and combined loans between commercial loan and export credit guaranteed by the Government to implement the project to acquire A321 planes by the Viet Nam Airlines Corporation in the 2011-2015 period. The Ministry of Finance performs the procedures for issuing guarantee for foreign loans as stipulated.

6. Regarding measure on export credit break for coffee submitted by the Ministry of Finance.

The Government agreed to extend the export credit for coffee and some agricultural products from 12 to 36 months. The Ministry of Agriculture and Rural Development is responsible for working with related agencies to assess current difficulties and obstacles of each farm exports; then defines specific subjects which require the support; proposes suitable supportive measures. Accordingly, the Ministry of Finance chairs and submits to the Government the amendments to the Decree No. 54/2013/ND-CP according to streamlined procedures to add the defined coffee and agricultural products in the list of exports for credit support and extension.

The State Bank of Viet Nam is assigned to instruct credit organizations to apply measures of solving difficulties encountered by coffee farm produce exporters.

7. Regarding draft Law on entry, exit and residence of foreigners in Viet Nam, presented by the Ministry of Public Security

The Ministry of Public Security takes prime responsibility to coordinate with the Ministry of Foreign Affairs, Ministry of Justice, Office of Government and related agencies to collect opinions of the Cabinet members to complete draft Law on entry, exit and residence of foreigners in Viet Nam, reports to the Prime Minister before submitting to the National Assembly.

8. Regarding draft Law on Customs (amended) presented by the Ministry of Finance

The Ministry of Finance takes prime responsibility to coordinate with the Ministry of Foreign Affairs, Ministry of Justice, Office of Government and relevant agencies to collect opinions of the Cabinet members, finalizes the draft Law on Customs (amended), then reports to the Prime Minister before submitting to the National Assembly.