The Government’s regular meeting- May 2012

RESOLUTION

The Government’s regular meeting- May 2012

The Government on May 27, 2012 convened its regular meeting for May, discussed and decided the following issues:

1. Reports on the socio-economic performance in May and the first five months of 2012, the realization of Resolution No. 01/NQ-CP on solutions for directing the implementation of the socio-economic development plan and State budget estimate for 2012 and realization of the Resolution No. 13/NQ-CP on some measures to solve the difficulties in favor of business production, market support, which was presented by the Minister of Planning and Investment.

The Government agreed that the socio-economic performance in May and the first five months showed positive signals. Inflation was curbed, the consumer price index in May surged month-on-month by 0.18%, and only 2.78% against December last year, the lowest figure over the last 3 years. The liquidity of the banking system and foreign reserves were better, exchange rate was basically stable. Production and business witnessed better changes; industry was on the rise after the first two months of difficulties; agriculture still achieved stable development; export turnover soared while trade deficit slumped; service was on the rise, retail sales of goods and services continued to increase. Healthcare, education, culture, sports were further stepped up. Social welfare was among priorities, due attention was given to pressing social issues. Socio-political situation was stable, national defense and security had been enhanced, social order and safety had been maintained; external relations made important achievements. Administrative reform, settlement of complaints, denunciations and anti-corruption, thrift practice, anti-wastefulness continued to be sped up.

Nevertheless, difficulties and challenges are still lying ahead: Inflation was slumped at the rate lower then planned; interest rate decreased but still stayed at high rate, while businesses still find it difficult to access to the loan; total outstanding balance decreased, bad debts in the banking system was in high risk. Economic growth rate slowed down, industry products’ index was at the lowest rate over the last three years, businesses face a lot of difficulties in selling their product, making their inventory remained high. Imports of material and equipment sharply declined, negatively affected the production and exports in the coming time. Numerous enterprises face with bankruptcy and production suspension leading to massive job loss and low income; some State-owned Economic groups and Corporations are facing difficulties. Disbursement of development investment capital was far behind the schedule compared with the previous years. Budget collection was lower than that of preset. Human epidemics and food safety are facing complicated development. Some groups of people are still facing with low living standards. Traffic accidents, social evils, crime, complaints, denunciation happened complicatedly. Meanwhile, economic and politic situation in the world is still in the volatility, affected our economy.

The Government affirmed that due attention must be given to solve the urgent issues at the same time with the handling of the primary, long term and sustainable ones; to persist the goals preset at beginning of the year, strive to curb inflation, stabilize macro-economy, ensure the growth rate reasonably and guarantee the social welfare. The ministries, sectors and localities need to keep close watch on the situation, promptly take drastic and effective steps to solve the difficulties and realization of the goals, tasks and solutions specified in the Resolutions made by the Party Central Committee, National Assembly and Government, especially Resolution No. 01/NQ-CP dated January 3, 2012, Government's Resolution No.13/NQ-CP dated May 10,  2012, focusing on the following key tasks:

- The State Bank of Vietnam continues to regulate the monetary policy in a cautious, flexible manner, increase credit at reasonable level with the aim to both support economic growth and control inflation as targeted; continues to reduce interest rate, support enterprises to access to the capital and focus on providing loans for the sectors of priority; accelerate the progress and effectively restructure the commercial banks; urgently set up and submit  to the Government the plan, mechanism for bad debts’ dealing to open capital sources for the economy, solve the difficulties beared by enterprises and market.

- Ministry of Finance (MoF) collaborates with relevant ministries, agencies and localities to flexibly realize the fiscal policy in line with the monetary policy in order to increase demands in the economy as planned; accelerate the disbursement of public investment capital, disbursement of the surplus amount collected by late 2011, the spending amounts suspended under the Resolution 11/NQ-CP - 2011; step up disbursement of ODA, FDI; promptly provide loans for reinforcing rural canals, developing countryside roads, electric pump stations for agricultural production, aquaculture infrastructure and rural trade villages as specified in the Resolution13/NQ-CP by the Government; continues to study the procedures and plan of reducing business income tax, value added tax, then submit these to the Government for discussion in the regular meeting to be held in June 2012.

- The Ministry of Planning and Investment (MoPI) works with the Ministry of Finance to make proposal for disbursing in advance the investment capital planned for 2013 for the works, projects which may be completed in 2012 or 2013; coordinates with the ministries, agencies, localities to take appropriate and reasonable measures to solve difficulties on business and production of each field, sector and area.

- The Ministry of Industry and Trade put forth directions for developing  domestic market, stimulate consumption, reduce inventory, step up production; strengthen trade promotion activities, expand exporting markets, make full use of the recovery trends of the international markets to boost export turnover; control the quality of imported goods and reducing the imports of consumer products.

- The Ministry of Transport works with Ministry of Construction and the relevant ministries and agencies to propose mechanisms for the implementation of the plan to build concrete roads replacing Asphalted roads, including rural roads funded by both State and local people.

- The Ministry of Agriculture and Rural Development continues its direction to accelerate the agricultural production, closely control the use of prohibited substances in breeding; hasten the implementation of flood prevention projects; actively respond to the complicated development of natural disaster.

- The Ministry of Labor, war Invalids and Social Affairs works with the ministries, agencies and localities to take synchronous and effective measures for ensuring social welfare and social policies in line with the preset programs and plans; focusing on jobs for the workers, ensuring jobs for those who were unemployed due to dissolution, cease of operation of businesses; effectively realize the policies for unemployment insurance; provide financial support timely for making sure that no people to be in  shortage of foods or hungry.

- The ministries, sectors and localities promptly set up the action programs for realizing the Resolutions, Conclusions made by the 5th plenum of the 11th Central party committee; actively prepare reports on statements and answers to the query rendered during the 3rd plenum of the 13th National Assembly, focusing on the pressing and urgent issues of interest to the National Assembly and electors. The Ministers, Leaders of agencies, Chairmen of People's Committee of all levels review their working programs for making sure that their plans are on scheduled and in good quality; checking the guidelines and management over the first 6 months of the year and propose the direction and managment of the Government, Prime Minister for the last six months in line with the Government’s working regulations.

- The Ministry of Information and Communications works with the ministries, agencies and localities to strengthen the dissemination of policies, obtaining the social consensus towards the guidelines, policies designed by the Party and State. The ministries, agencies, localities actively provide information, simultaneously hold dialogue to disseminating, explaining about the guidelines, policies, measures relating to their assigned State management.

2. The Government discussed and commented on the Resolution’s draft in strengthening and enhancing the efficiency of international economic integration for the 2012 - 2015 period and orientation to 2020 presented by  Minister of Planning and Investment.

The Cabinet members unanimously stressed that the Resolution should make clear the view and goal that international economic integration is for rapid and sustainable development, accelerating the country industrialization and modernization, upholding autonomous independence, socialist orientation, strengthening position and role of Vietnam in international arena. Accordingly, some other more comprehensive measures should be added, stressing the expansion of export ing market, drawing resources from outside for restructuring the economy, contributing its part to deal with the infrastructural, institutional and human resources shortcomings, strengthening the law enforcement in combination with corruption prevention and fighting. Regarding its organization, the National Committee for International Economic Cooperation should be maintained while its capacity and efficiency would be strengthend and enhanced.

The Ministry of Planning and Investment is in charge of working with the Ministry of Industry and Trade, Ministry of Justice, Government Office and relevant ministries, agencies to collect opinions from the Cabinet members, complete the Resolution’s draft and submit it to the Prime Minister for consideration in June 2012.

 3. The Government discussed and commented on a draft of Resolution launching the action program by the Government in compliance with the Resolution 12-NQ/TW made by the 4th plenum of the 11th Central Party Committee on ‘‘Some urgent issues in building Party presently” presented by the Minister of Home Affairs.

The Ministry of Home Affairs is in charge of working with the Office of Government to collect opinions from the Cabinet members, complete the Resolution’s draft and submit it to the Prime Minister for signature and issuance.

4. The Government discussed and commented on the content of the reports submitted to the National Assembly regarding the extension of rural land used period for households and individuals presented by the Minister of Natural Resources and Environment.

The Ministry of Natural Resources and Environment was assigned to work with the Ministry of Justice, the Office of Government to complete the Government’s report in compliance with the conclusion made by the 5th plenum of the 11th Central Party Committee, report it to the Prime Minister before submitting to the National Assembly for issuance.

5. The Government discussed and commented on the amendment and supplementation of some articles of the Law on Personal Income Tax presented by the Minister of Finance.

The Ministry of Finance was assigned to work with the Offices of Government, the Ministry of Justice and relevant agencies to collect opinions during the meeting, continues to complete the Law, report it to the Prime Minister for consideration before submitting to the National Assembly./.