The Government’s regular meeting - February 2019

RESOLUTION

THE GOVERNMENT’S REGULAR MEETING – FEBRUARY 2019

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Government’s Decree No. 138/2016/ND-CP dated October 01, 2016 promulgating the working regulation of the Government;

Based on the discussion of the Cabinet members and the conclusion of the Prime Minister at the Government’s regular meeting in February 2019, held on March 01, 2019,

DECIDES

1. On the socio-economic situation in February and the first two months of 2019 and the implementation of the Government’s Resolution No. 01/NQ-CP

During the Lunar New Year festival 2019, ministries, agencies and localities had seriously executed the directions of the Government and the Prime Minister, mobilizing the participation of both the political system and the whole society, many organizations and individuals to join hands to take care of people during Tet holiday in a warm, joyful, healthy and safe atmosphere. Festive spring atmosphere pervaded throughout the country and among overseas Vietnamese communities.

In particular, Viet Nam successfully and considerately organized the second Democratic People’s Republic of Korea-US Summit in Ha Noi, ensuring its absolute safety. Viet Nam also hosted the official visit of H.E. Mr. Kim Jong Un, Chairman of the Workers’ Party and Chairman of the State Affairs Commission of the Democratic People's Republic of Korea, and bilateral activities of US President Donald Trump in Viet Nam, creating a strong impression, demonstrating the role of a responsible and reliable host country in the international community, affirming Viet Nam's new position in organizing world-class events, and contributing to promoting the images of a beautiful and safe country as well as Vietnamese people’s friendliness, hospitality, and love for peace.

The socio-economic situation in February and the first two months of 2019 continued with positive trends. Macroeconomic conditions were relatively stable. Inflation was kept under control. The stock market recovered. Export was estimated at USD 36.68 billion, up 5.9% year-over-year. Registered foreign investment capital amplified by more than 2.5 times over the same period. Disbursement of foreign direct investment increased by 9.8%, the highest year-on-year growth in both value and speed in the last 3 years. Agricultural and industrial production was stable. State budget revenue was relatively good. Total retail sales of consumer goods and services increased by 12.2%. The number of international tourists to Viet Nam increased by 10.12%. Particularly, February’s inbound tourists registered an upsurge of 10.9%. Policies for people with meritorious services and social security policies received due attention. Cultural, artistic, information and communication activities were organized flamboyantly. Festival activities were properly organized in a safe and civilized manner. National defence and security were maintained; social order and safety were guaranteed.

However, the socio-economic situation still witnessed a number of shortcomings and limitations. Export of some key products decreased. Processing and manufacturing industries observed sluggish growth. Disbursement of public investment capital was not satisfactory enough. The number of newly established enterprises decreased. Animal and plant disease outbreaks observed complicating developments, especially the African swine cholera. The price of rice plummeted in the Mekong Delta. A number of social disturbing phenomena such as black credit, fighting, firecracker burning, serious criminal offenses ... still occurred. Although the number of traffic accidents had reduced, the rate of violations against traffic order and safety regulations remained high.

In the coming time, the Government required each of ministers, heads of ministerial-level agencies, Chairmen of People's Committees of provinces and centrally-run cities to actively take responsibility for directly instructing and administering the drastical and synchronous deployment of tasks and solutions set out in Resolution No. 01/NQ-CP, No. 02/NQ-CP dated January 1, 2019 of the Government as well as programs and action plans of ministries, branches and localities with the highest determination and efforts, striving to accomplish the planned targets right from the first quarter, creating a firm momentum to comprehensively achieve objectives and targets on socio-economic development in 2019. Each cadre, civil servant and officer must boost up personal responsibility, constantly innovate and improve the quality and efficiency of his/her work, in which attention shall be paid to implementing the following main contents:

- The Ministries of Planning and Investment, Finance, Industry and Trade, the State Bank of Viet Nam shall closely monitor economic developments in the country and in the world, continue to consolidate the macroeconomic foundation, control inflation, increase the resilience of the economy against unpredictable global fluctuations, and speed up inclusive and sustainable growth.

- Each ministry, agency and locality shall promptly remove difficulties, continue to strongly improve the investment and business environment, facilitate production and business development; proactively respond to adverse external impacts, turning risks, challenges into opportunities; mobilize and effectively use all resources; focus on employing solutions to promote growth of the respective industry, field, and locality. Growth scenarios in 2019 of the respective ministry and/or branch must be reviewed and updated on a quarterly basis and reported to the Ministry of Planning and Investment for summing up and reporting to the Prime Minister for discussion at the regular Government’s meeting in March 2019.

- The State Bank of Viet Nam shall regulate monetary policy in a flexible and prudent manner, in alignment with fiscal policies and other policies to safeguard macroeconomic stability, maintain inflation control and reasonable liquidity; continue to reinforce state foreign exchange reserves. Credit should be expanded in association with strict control of credit quality. Attention shall be paid to developing credit products to meet daily consumption needs and demand on microfinance, timely meet the legitimate needs of the people, contributing to promoting production and business activities and restricting black credit.

- The Ministry of Finance shall continue tight fiscal policy; drastically executing budget collection and solutions to prevent budget revenue loss, striving to fulfil the budget goals for 2019. Attention shall be paid to implementing solutions to develop and improve operation efficiency of the stock market as well as financial and support services to businesses in directly mobilizing capital at low costs.

- The Ministry of Planning and Investment and the General Statistics Office shall review and re-evaluate the scale of gross domestic product (GDP), ensuring objectivity and transparency of the calculation methodology and making sure to consider the scale of the non-official economic sector. On that basis, relevant ministries and agencies shall calculate, review and propose appropriate policies, especially currency, credit, finance, investment and trade policies.

- The Ministry of Planning and Investment and the Ministry of Finance shall strengthen their coordination in inspecting and urging ministries, branches and localities to accelerate the disbursement of public investment capital. Ministers, heads of ministerial-level agencies and Chairmen of provincial-level People's Committees were assigned to directly monitor and take responsibility before the Prime Minister for the allocation, assignment of public investment capital plans, and progress and disbursement of public investment capital of the respective ministries, agencies and localities under their management.

- The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Government Office, the Ministry of Justice and the concerned ministries and agencies in urgently reviewing legal provisions related to planning and reporting to competent authorities to resolve management problems and shortcomings in transition of planning; urgently finalize and submit to the Government for promulgating a Decree guiding the Law on Planning and related documents, ensuring their consistency and feasibility. The Ministry shall develop programs and plans to promote investment and attraction of foreign direct investment, especially investment from multinational high-tech corporations.

- The concerned ministries, agencies, and localities shall concentrate on carrying out necessary works and tasks according to the plans of the Socio-Economic Subcommittee (which was set up to prepare documents on socio-economic areas and submit to the 13^th National Party Congress); properly perform the task of reviewing and evaluating the implementation of the socio-economic development strategy for the 2011-2020 period and the 5-year socio-economic development plan for 2016-2020, researching and preparing the socio-economic development strategy in the 2021-2030 period and the 5-year plan for 2021-2025.

- The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the concerned ministries and branches in reviewing, summing up and reporting to the Prime Minister before the Minister of Planning and Investment, as authorized by the Prime Minister, acting on behalf of the Government, makes report to the National Assembly Standing Committee for review and decision-making on the following contents:

Revise the medium-term public investment plan for the 2016-2020 period by making internal adjustments and providing 10% reserves of central budget capital for ministries, agencies and localities (including Government bond capital) for projects that had not yet been included in the medium-term public investment portfolio and projects that had been included in the medium-term public investment portfolio, and investment decisions must be adjusted.

Adjust (by reducing or adding) the medium-term public investment plan using foreign investment capital for the 2016-2020 period for ministries, agencies and localities to implement projects approved by the Prime Minister for the 2019-2020 period.

- For the project to upgrade the road connecting Phu Yen and Gia Lai provinces, using the Government bond capital of Phu Yen province: The Minister of Planning and Investment was authorized by the Prime Minister to act on behalf of the Government to report to the National Assembly Standing Committee on the allocation of medium-term public investment plan using the Government bond capital for the 2016-2020 period to the Project to upgrade the road connecting Phu Yen and Gia Lai provinces (the section passing Phu Yen province).

- The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the concerned ministries and agencies in reviewing and synthesizing adjustments to the medium-term public investment plan using the 10% reserves of central budget capital in ministries, branches and localities for projects included in the medium-term public investment plan for the 2016-2020 period, and report to the Prime Minister for decision-making before March 10, 2019.

- The Ministry of Industry and Trade shall focus on directing and speeding up the completion of large-scale industrial projects; according to its competence, focus on handling or reporting to competent authorities to remove obstacles to speed up the progress of energy projects, especially the Binh Son, Long Son, Nghi Son oil refinery projects, the Thai Binh 2 and Van Phong power projects. The Ministry must identify solution to gradually reduce the rate of manual processing and assembling, increase the production rate of supporting industries; encourage and create conditions for enterprises to participate in technology renovation programs; and communicate, disseminate and guide the effective implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

- The Ministry of Agriculture and Rural Development shall assume the prime responsibility for, and coordinate with relevant ministries, agencies and provincial People's Committees, pay attention to drastically directing and synchronously executing solutions to prevent and control the African swine cholera, blue ear disease and foot-and-mouth disease; thoroughly resolve epidemic hotspots, prevent the generation of new outbreaks; strengthen inspection and control, strictly handle cases of trafficking, slaughtering, transporting pigs and pig products to spread disease; strictly handle cases of concealing and failing to promptly report infected animals. Chairmen of provincial People's Committees shall be responsible before the law, the Government and the Prime Minister for the results of prevention and control of African swine cholera in their localities. The Ministry shall strengthen rice trade promotion; accelerate strong restructuring of rice purchase; identify solutions to increase the value of staple-food crops and reduce rice production in low-lying and saline areas.

- The Ministry of Finance, the Ministry of Agriculture and Rural Development and concerned ministries, agencies and localities, especially state-owned groups and corporations shall immediately deploy the planned purchase and reserve of rice in accordance with regulations, properly intervene in accordance with market laws to ensure benefits to farmers from rice prices.

- The Committee for Management of State Capital at enterprises shall coordinate with the concerned ministries and agencies to quickly approve and direct the implementation of production and business plans of state-owned groups and corporations under the Committee’s management; handle thoroughly obstacles in transferring projects of state-owned economic groups and corporations.

- Ministries, branches and localities shall pay attention to developing robustly service sectors, focusing on potential high-tech services such as finance, banking, insurance…, ensuring higher contribution to GDP growth by service sector.

- The Ministry of Culture, Sports and Tourism shall coordinate with localities to strengthen the management of festivals, ensuring the preservation and promotion of national cultural identity; resolutely handle acts of falsifying the value and nature of festivals. The Ministry shall organize investment promotion conferences to effectively and economically promote regional tourism, innovate tourism service delivery methods and approaches in a professional and effective direction; strengthen communication and promotion to promote tourism development on the occasion of international events.

- The Ministry of Education and Training shall urgently speed up the progress of textbook composition according to the new general education program while ensuring their quality and efficiency. The Ministry shall properly prepare conditions for organizing the national high school graduation exam and university admission for 2019.

- The Ministry of Science and Technology shall work closely with ministries, agencies, localities, organizations and associations to promote the development of the national innovation ecosystem; organize activities to develop science and technology markets, with a focus on promoting technology transfer from advanced countries in the world to domestic enterprises.

- The Ministry of Health shall strengthen the prevention and control of diseases, especially seasonal diseases; properly organize and deliver health care services to the people; coordinate to effectively deploy a food safety assurance scheme; and develop a plan to effectively implement the Viet Nam Health Program.

- The Ministry of Labor, Invalids and Social Affairs shall continue to properly apply social security policies, and preferential policies to people with meritorious services; effectively adopt policies and solutions for sustainable poverty reduction, especially for people in remote areas and ethnic minority areas; promote and improve the effectiveness of vocational training, employment and labour market development; and strengthen inspection and assurance of occupational safety and health.

- The Committee for Ethnic Minorities shall pay attention to directing the effective application of national policies; strengthen coordination, inspection and examination in enforcing policies on ethnic minorities at local level; coordinate with localities to organize the Chol Chnam Thmay Festival of Khmer ethnic people in a proper manner, including organizing meetings with representatives of Khmer ethnic people in the Southwest region.

- The Ministry of Natural Resources and Environment shall strengthen resource management and environmental protection; proactively monitor weather changes, have plans for natural disaster prevention; actively implement programs and projects to respond to climate change; prepare to organize a conference to review the implementation of Resolution No. 120/NQ-CP dated November 17, 2017 of the Government on sustainable development of the Mekong Delta to adapt to climate change and a conference on solutions on rural waste and marine waste treatment.

- The Ministry of Transport and People's Committee of Tien Giang Province shall regularly report to the Prime Minister on the progress of the Trung Luong - My Thuan and My Thuan – Can Tho Expressway projects; coordinate with the Ministry of Finance and the Ministry of Planning and Investment to propose the state budget plan for these projects and report to the Prime Minister to ensure project progress according to the set plans. The Ministry of Transport shall assume the prime responsibility for, and coordinate with concerned ministries, agencies and localities in reporting to competent authorities for handling problems and speeding up the construction of expressway projects and preparation of North-South high-speed railway projects; expeditiously finalize draft Directive of the Prime Minister on ground clearance for the construction of a number of expressway sections on the eastern North-South expressway. The Ministry needs to expeditiously report to the Prime Minister on priority lines of the North-South high-speed railway project.

- Ministers, heads of ministerial-level agencies shall concentrate on directing and mobilizing resources for the formulation of legal documents, ensuring their quality and progress according to the set program. Deputy Prime Ministers were assigned to directly direct the formulation and improvement of legal documents in their assigned branches and fields.

- The Ministry of Justice and the Government Office shall coordinate with ministries and agencies to review and urgently finalize, submit and issue detailing legal documents, prevent backlogs of outstanding documents under the authority of the Government and the Prime Minister; take initiative in collaborating with ministries and branches to handle problems or promptly report to competent authorities to overcome problems in formulating and finalizing legal documents.

- The Ministry of National Defense shall proactively monitor the situation, effectively prevent conspiracies and destructive activities, timely response to arising situations to ensure national defense and security. The Ministry shall ensure to properly complete military and defense missions in 2019.

- The Ministry of Public Security shall continue to actively monitor the situation, promptly prevent destructive activities of hostile forces; synchronously and effectively adopt solutions to ensure security and order and prevent crimes; strengthen the deployment of measures to ensure traffic safety and order, strictly handle use of stimulants and drugs while driving.

- The Government Inspectorate shall urgently issue Government’s post-inspection conclusions, especially for those of public concern; effectively advise and assist the Prime Minister's Working Group in handling a number of urgent and controversial complaints and denunciations.

- The Ministry of Foreign Affairs shall continue to promote and deepen relations with partners; properly organize upcoming high-level foreign activities; coordinate with the Ministry of Industry and Trade and relevant ministries and agencies to accelerate the process of signing and approving free trade agreements between Viet Nam and partners. It will coordinate with the Ministry of Public Security to identify a mechanism to manage and limit violations by overseas Vietnamese.

- The Ministry of Information and Communications shall direct press and media agencies to promote information and communication to spread the aspirations of a strong and prosperous country, creating a joyful and exciting atmosphere in working and production; strengthen measures to ensure network security and safety; promptly and strictly handle violations of law, taking advantage of freedom of speech and freedom of press to infringe upon the interests of the State, the legitimate rights and interests of organizations and citizens.

Regarding the allocation of capital utilizing 10% reserves of the National Target Program on New Rural Construction in the 2016-2020 period

The Government agreed to not apply the provisions on time limit, which requires that project investment decisions must be made by October 31 in the year preceding the plan, for newly started projects with capital allocated from 10% reserves of the National Target Program on New Rural Construction in the 2016-2020 period.

Regarding addition of foreign aid to Ha Tinh province’s budget

The Government agreed to allow Ha Tinh province to use the VND 817 million in non-refundable official development aid of the Canadian Government. The Minister of Finance was authorized by the Prime Minister to act on behalf of the Government to report to the Standing Committee of the National Assembly for review and decision. The Ministry of Finance thereby shall inform Ha Tinh province about the decision.

Regarding the revision of the roadmap for installing cruise monitoring equipment prescribed in the draft Decree detailing a number of articles and measures to implement the Law of Fisheries

The Government agreed with the proposal to revise the roadmap for installing cruise monitoring equipment as specified in Point e, Clause 3, Article 44 of the draft Decree detailing a number of articles and measures to implement the Law on Fisheries of the Ministry of Agriculture and Rural Development to ensure its feasibility.

The Government Office was assigned to coordinate with the Ministry of Agriculture and Rural Development to finalize the draft Decree and submit it to the Prime Minister for signing.

Regarding the amendment of Decree No. 02/2017/ND-CP on mechanisms and policies to support agricultural production restoration in areas damaged by natural disasters and epidemics

- The Ministry of Agriculture and Rural Development was assigned to assume the prime responsibility for, and coordinate with the Ministry of Finance, the Ministry of Planning and Investment and concerned ministries and agencies in urgently studying, amending and supplementing Decree No. 02/2017/ND-CP of the Government on mechanisms and policies to support agricultural production restoration in areas damaged by natural disasters and epidemics following shortened procedures, and submitting the Decree to the Government.

Regarding some urgent solutions to control African swine cholera, blue ear disease and foot-and-mouth disease, the Government agreed to allow provincial People's Committees to use local budget reserves and other legal funding sources to support owners of infected pigs and pigs suspected of African swine cholera, blue ear disease and foot-and-mouth disease which must be destroyed to prevent disease spread, even for cases of disease presence but no public announcement of the outbreaks has been made yet as prescribed by law, specifically:

For baby pigs and pigs raised for meat consumption of all kinds, provide financial aid worth a minimum of 80% of market price at the time and location of disease outbreak.

For breeding pigs, financial aid will be increased by 1.5 - 2.0 times compared to the support level for other pigs at the time of disease outbreak.

Owners shall be eligible for financial aids when their infected pigs are culled and do not need to meet the conditions of initial declaration and registration certified by the commune-level People's Committee when they start raising pigs. In the process of implementation, it must ensure publicity, transparency, provision of aids to the right subjects, under the supervision of the Fatherland Front at all levels and the people, prevent the occurrence of policy profiteering.

The Ministry of Agriculture and Rural Development shall preside over and coordinate with the Ministry of Finance and related agencies to urgently develop a plan to use state budget reserves for contingencies and other legal financial sources to provide emergent support to the prevention against African swine cholera, blue ear disease and foot-and-mouth disease, and report to the Prime Minister for review and decision-making.

Regarding the proposal to develop National Assembly's draft Resolution on fee exemption for mineral mining rights granting and water resource exploitation rights granting

The Government approved the proposal to develop a draft Resolution of the National Assembly on fee exemption for mineral mining rights granting and water resource exploitation rights granting. The Ministry of Natural Resources and Environment was assigned to assume the prime responsibility for, and coordinate with concerned ministries and agencies in developing a draft Resolution on fee exemption for mineral mining rights granting and water resource exploitation rights granting, and report to the National Assembly for comments and approval at the 8th Session of the 14th National Assembly as proposed by the Ministry of Natural Resources and Environment.

The Ministry of Justice shall assume the prime responsibility for, and coordinate with the Ministry of Natural Resources and Environment to collect comments of the Government members and complete the proposal to develop the draft Resolution. The Minister of Justice was authorized by the Prime Minister to act on behalf of the Government to report to the Standing Committee of the National Assembly on the addition of this Resolution to the National Assembly's law-and ordinance-making program for the year 2019.

Regarding the import of contraceptive implant at a preferential price

The Government agreed to permit the import of contraceptive implant at a preferential price to provide for priority subjects in the Health - Population Target Program. The Ministry of Health shall be responsible for supervising the implementation, ensuring publicity, transparency, and compliance with regulations.

Regarding the allocation of marine areas to the BOT Project on Van Phong Thermal Power Plant 1

The Ministry of Natural Resources and Environment was assigned to assume the prime responsibility for, and coordinate with the Khanh Hoa provincial People's Committee, concerned ministries and agencies, to promptly finalize the specific reporting dossiers submitted to the Government on allocating marine areas to the BOT Project on Van Phong Thermal Power Plant 1 before March 10, 2019. The report must specify the legal foundation, jurisdiction as well as proposed solutions to ensure the interests of the state, investors and compliance with current legislation.

Regarding the draft Law on Securities (revised)

The Ministry of Finance was assigned to assume the prime responsibility for, and coordinate with the Ministry of Justice, the Government Office and the concerned ministries and agencies in collecting comments of the Government members, the appraisal opinions of the Government Office, completing the draft Law (revised), and reporting to the Prime Minister before submitting it to the National Assembly.

Regarding the draft Law on Reserve Forces

The Ministry of National Defense was assigned to assume the prime responsibility for, and coordinate with the Ministry of Justice, the Government Office and the concerned ministries and agencies in collecting comments of the Government members, the appraisal opinions of the Government Office, completing the draft Law on Reserve Forces, and reporting to the Prime Minister before submitting it to the National Assembly.

Regarding state compensation in 2018 and the key tasks and solutions for 2019

The Government reviewed and approved the Report on state compensation in 2018 and the key tasks and solutions for 2019 of the Ministry of Justice. The Ministry of Justice was assigned to complete the Report and send it to ministries, ministerial-level agencies and other relevant agencies to ensure the effective implementation of tasks and solutions in 2019.

Regarding the signing of the Joint Communiqué on the establishment of diplomatic relations between the Socialist Republic of Viet Nam and the Republic of South Sudan

The Government agreed with the contents of the Joint Communiqué on the establishment of diplomatic relations between the Socialist Republic of Viet Nam and the Republic of South Sudan, which was included in Report No. 274/TTr-BNG-TDCP-m dated January 31, 2019 of the Ministry of Foreign Affairs and was approved by the Prime Minister in accordance with Clause 4, Article 3 of the Government's Working Regulation issued together with Decree No. 138/2016/ND-CP dated October 10, 2016./.

ON BEHALF OF THE GOVERNMENT

PRIME MINISTER

(Signed)

Nguyen Xuan Phuc