SOCIALIST REPUBLIC OF VIỆT NAM
Independence – Freedom – Happiness
Hà Nội, June 04, 2010
The Government’s regular meeting – May 2010
During its regular meeting for May 2010 convened on June 01, the Government discussed and decided the following issues:
1. The Government debated the reports on socio-economic situations in May and the first five months of 2010 as well as economic predictions for the world and Việt Nam; on impacts of the international economic integration on the national economy after three years Việt Nam joined the World Trade Organization (WTO); on outcomes of the policy to train labor force on social demand in the period of 2007-2009 and the plan 2010; on the implementation of the Government’s April regular meeting resolution and its working agenda for May; on inspection, settlement of complaints, anti-corruption in May; and on administrative reforms in May. The reports were respectively presented by the Minister of Planning and Investment, the Minister of Education and Training, the Minister-Chairman of the Office of Government, the Chief Inspector, and the Minister of Home Affairs.
a) The Government agreed that, thanks to the consistent and drastic realization of measures of the Government, ministries, sectors and localities, especially after the Government’s Resolution 18/NQ-CP was adopted on April 06, 2010, socio-economic situations in May and the first five months continued to see positive changes. Fundamental macro-economic balances were stabilized. The budget collection was quite high compared to the same period last year; the disbursement of investment capital churned out good results; export increased; inflation was kept well. In the first five months, industrial production rose up 13.6%, tripling the same period last year; agricultural production was sustained; domestic market continue to expand, the total retail sales and service revenue increased rapidly; thanks to boisterous tourism activities, the number of domestic tourists and international arrivals sharply rocketed. Social security continued to be guaranteed. Political security and social order and safety were safeguarded. Healthcare, culture and social issues received due attention and reaped good results.
However, the economy still faced some difficulties which should be dealt soon: though slightly going up in May (0.27% against April 2010), the CPI still stood relatively high in the first five months (4.55% higher than December 2009); prices of many input materials and import both sharply increased, the excess of imports over exports, though starting to go down, remained quite high; the shortage of electric power caused negative impacts on production and people’s life; banks’ mobilization and lending interest rates were still high; unusual signals were seen in the real estate market; natural calamities, epidemics, and forest fires caused negative impacts on agricultural production and people’s livelihood.
The Government requires ministries, sectors and local authorities to further realize the key socio-economic development targets and norms approved by the National Assembly, drastically take measures mentioned in the Government’s Resolution 03/NQ-CP dated on January 15, 2010 and Resolution 18/NQ-CP on April 06, 2010, focusing on the following points:
– To continue keeping a keen eye on ups and downs of the world economy and the domestic markets of goods and services, first primary ones, then adopt proper policies and solutions for market and price stabilization.
– Ministries, sectors and local authorities should intensify their direction, promptly propose and issue new mechanisms and policies in order to a convenient and integrated legal environment for production, business and investment activities; drastically direct the realization of programs and projects which can make full use of potentials and strengths of each and every sector and locality; further maintain and improve outcomes of their monthly meetings on production, export-import, investment while timely removing difficulties and obstacles in order to mobilize investment sources, speed up the capital disbursement and improve efficiency of investment, especially sources from the State budget, governmental bond, and development credits; continue the adopted policies and solutions for the development of science, education, health, culture, social affairs, and environment; and seriously direct the implementation of the rapid and sustainable poverty reduction program in 62 poor districts.
– To further tighten control over markets and prices, supervise the enforcement of regulations on commodity circulation, price registration, listing prices and selling goods at the listed prices; strictly check and monitor the increase in land and housing prices, particularly in Hà Nội and some big cities, taking measures to control irrational increase in land and housing prices; to timely prevent and strictly punish speculation, violations against regulations on price management, market manipulation, and rumor release in order to hike land and housing prices; monitor, prevent and strictly fine all cases of producing and circulating counterfeits and low-quality goods, breaking regulations on food safety and hygiene.
– The State Bank of Việt Nam should continue to regulate monetary policies in an active, flexible and cautious manner in conformity with market rules and international practices in order to secure proper growth rates of credit balance and liquidity, which are appropriate to growth targets and the requirements for reining in inflation and guaranteeing the economy’s liquidity; direct the lending, at negotiated interest rates, to effective production and business projects as stipulated by the NA’s resolution; apply flexibly economic measures, first monetary policy instruments like discount rate, re-financing rate, open market, and inter-banking market to slash down the common interest rate; stabilize exchange rate; and increase foreign currency reserves.
– The Ministry of Industry and Trade will be the main implementer, in collaboration with relevant agencies, in proposing and realizing measures to encourage export, expand markets, make full use of the available markets in order to raise export turnover; develop auxiliary industries and the production of goods which can replace imports; direct the Electricity of Việt Nam, PetroVietnam, and the Việt Nam National Coal-Mineral Industries Group to put all power plants into full operation in order to meet the demand for electricity in production, business and daily life. Measures to save electric power in production and consumption must be strictly applied, especially in State administrative agencies, political and socio-political organizations.
– The Ministry of Finance will function as the main implementer, in collaboration with relevant agencies, in putting forth solutions for collecting higher budgets to serve necessary expenditure while reducing budget overspending; tighten management over and spend the budgets in an economical way; review and simplify customs procedures in order to shorten the duration of customs clearance and reduce costs imposed on exports and imports; flexibly use taxes, fees, charges and non-tax tools to push up export and control import for smaller trade gap. The Ministry, joining hands with the Ministry of Planning and Investment, the Ministry of Industry and Trade, the State Bank of Việt Nam and relevant agencies, will design a national strategy on loans and debt settlement for the period of 2010-2020, with a vision to 2030-2050 through calculating the overall demand for resources, which will be used to realize the country’s strategic socio-economic development goals, in line with the domestic and international economic situations in the new stage. The Strategy must be submitted to the Government at the regular meeting for September 2010.
– The Ministry of Agriculture and Rural Development must direct localities to keep a close watch on climatic conditions and epidemics among crops and domestic animals, so as to timely respond and apply effective preventive measures in order to minimize damages for agricultural production and aquaculture; take effective measure to stop illegal deforestation.
– The Ministry of Health must popularize ways of preventing summer epidemics and securing food safety and hygiene.
– The Ministry of Information and Communications must direct mass media to provide accurate and updated information about guidelines and policies, especially regarding finance, monetary and price issues, to the public; strictly punish any acts of spreading inaccurate information which can cause negative impacts on macro-economic stability and damage legitimate interests of the State and people. State agencies must take the initiative in feeding accurate and updated information to mass media.
– Ministries, sectors and local authorities continue to direct the drastic simplification of administrative procedures under Project 30; review the Overall Program on State Administrative Reforms in the period of 2001-2010 and design the State Administrative Reforms Strategy for 2011-2020; further evaluate responsibilities of ministries, sectors and localities in dealing with citizens’ complaints and denunciations as well as timely settling burning issues voiced by people and enterprises; speed up anti-corruption, anti-prodigality, and thrift practice, particularly in using energies, water, natural resources, minerals, capital and properties of the State, enterprises and people.
– Ministries and agencies must check up, draft and finalize documents stipulating in details the enforcement of laws and ordinances which have come into effect, then submit these documents to the Government and the PM for issuance. Members of the Government should well prepare answers for issues of interest of NA deputies and voters before joining interpellation sessions at the upcoming 7th sitting session of the 12th NA.
b) The Government unanimously asserted that, the period of three years after joining the World Trade Organization (WTO) is too short to comprehensively assess impacts of the international economic integration on Việt Nam. However, the WTO accession proved the soundness of the Resolution of the 4th Plenum of the 10th Party Central Committee on “Some guidelines and policies for rapid and sustainable economic development when Việt Nam becomes a WTO member” (Resolution 08-NQ/TW) and the Government’s Resolution 16/2007/NQ-CP promulgating the Government’s Action Program on realizing Resolution 08-NQ/TW. In general, international economic integration and the WTO accession have brought about positive results and opened good chances for rapid and sustainable economic development. Besides many challenges still lying ahead on the path of development, there have been a number of lessons for Việt Nam’s deeper and broader international economic integration.
The Ministry of Planning and Investment was assigned to function as the main implementer, in collaboration with the Office of Government, the Ministry of Industry and Trade and relevant agencies, collect opinions from Cabinet members, finalize the Report and Statement submitted to the Politburo on actualities after three years joining the WTO, with necessary proposals to speed up and improve international economic integration in 2011-2020. The Report should review the realization of the Resolution of the 4th Plenum of the 10th Party Central Committee on “Some guidelines and policies for rapid and sustainable economic development when Việt Nam becomes a WTO member” and the Government’s Action Program on realizing this Resolution. The Ministry of Planning and Investment will be the main implementer, in collaboration with relevant agencies, in drafting and submitting to the Government a resolution on further promoting and improving international economic integration in 2011-2015, with visions to 2020. The National Commission for international economic cooperation will function as the main implementer, in collaboration with relevant agencies, to study and submit to the Prime Minister a solution for perfecting the Commission so as to bring itself into full play and better its performance in assisting the Government and the Prime Minister to direct the international economic integration.
c) Human resource training on social demand, conducted for the past three years, has helped to significantly change public awareness, from schools to enterprises and the whole society, of the necessity of shifting from capacity-based labor training to on-demand training, mobilizing more resources for training, initially forming a cooperation mechanism between schools, enterprises and State management agencies, gradually building the market of trained labor. However, this work remains in its initial stage; enterprises and labor users have shown moderate participation in training activities; and newly-launched reform of tertiary education management has not resulted in breakthroughs in labor quality.
The Ministry of Education and Training was assigned to collect opinions from Cabinet members, finalize the Report on results of on-demand training for 2007-2009, and realize the plan 2010; organize a summing-up conference on this work. Ministries, sectors and localities should promptly plan their own human resources in 2011-2015. On this basis, the Ministry of Education and Training will set up a national plan on human resource development and on-demand training for the next five years; draft the Prime Minister’s Instructive on promoting on-demand training, developing human resources as a national advantage in international economic integration during 2011 – 2015, then submit it to the Prime Minister in the 4th quarter of 2010.
2. The Government delivered comments and opinions on the Bill on Independent Auditing and the Bill on Measurement presented by the Minister of Finance and the Minister of Science and Technology respectively.
– The Ministry of Finance was assigned to be the main implementer, in coordination with the Ministry Justice, the Office of Government and relevant agencies, to collect opinions form Government members, finalize the Bill on Independent Auditing. The Minister of Finance, authorized by the PM, will submit the Bill to the NA Standing Committee.
– The Government entrusted the Ministry of Science and Technology to function as the main implementer, in coordination with the Ministry Justice, the Office of Government and relevant agencies, to collect opinions form Government members, finalize the Bill on Measurement. The Minister of Science and Technology, authorized by the PM, will submit the Bill to the NA Standing Committee./.
ON BEHALF OF THE GOVERNMENT
Nguyễn Tấn Dũng
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