Directive No. 01/2000/CT-TTg On Strengthening the Management of Investment Development Plan for 2000

DIRECTIVE

On Strengthening the Management of Investment Development Plans for 2000

In recent times, investment and construction activities have been given attention and directed to be implemented according to the targets set out in the plan, with many sources of capital being mobilized for development investment. However, the restructuring of the economic structure has not met the requirements due to limited development resources and inconsistent policies in guiding priority areas for development; planning and forecasting development in each industry and region still have many deficiencies, heavily influenced by subjective and arbitrary intentions, aiming for rapid development by focusing on many key areas but failing to adjust promptly when changes occur in these areas. Additionally, localities tend to concentrate investments in industries that generate significant revenue to balance local budgets such as beer production, tobacco, cement, sugar... but have not truly focused on balancing market needs and economic efficiency.

To address the aforementioned issues, from the 2000 plan and the five-year plan ahead, capital investment must be concentrated on projects and works with high effectiveness, industries and fields with advantages, leveraging Vietnamese human resources... while also carefully considering competitiveness in international integration and the changing supply-demand relationship not only globally and regionally but even within the domestic market.

Pursuant to Decision No. 240/1999/QĐ-TTg dated December 29, 1999 of the Prime Minister regarding the allocation of targets and state budget estimates for 2000, the Prime Minister instructs ministries, sectors, provincial people's committees under the central government, and state-owned corporations to implement the following urgent tasks:

1. Continue adjusting the investment structure, concentrating capital on projects with socio-economic benefits, affecting multiple economic sectors, and having a high export ratio.

- In addition to allocating a sufficient amount of funds to mitigate the aftermath of floods in central provinces and some regions, it is necessary to review and adjust planning, and construct infrastructure in disaster-prone areas to minimize losses.

- Review state budget-funded programs and projects, allocate investments centrally and with focus according to the plan's objectives.

New projects belonging to groups B and C must comply with approved sectoral and regional plans and have all required procedures. Projects without complete procedures or lacking effectiveness will not be allocated funds. Projects included in the plan must ensure certain funding sources, centralized allocation, and timely progress.

- Allocation of funds for group B projects must be concentrated, with project implementation time not exceeding four years. Funds for group C projects must be allocated sufficiently to ensure completion within two years, limiting the commencement of unnecessary group C projects.

- Budget funds left for ministries, sectors, and provinces under the central government to invest must be strictly planned and incorporated into the investment plan at the beginning of the year.

- Allocate funds to prepare and continue investing in important projects for the 2001-2005 five-year plan and subsequent years in national economic sectors.

2. Ensure adequate counterpart funds for ODA projects to guarantee progress according to signed agreements, particularly those scheduled for completion in 2000 and 2001.

3. Promptly amend and supplement provisions in Decree No. 52/1999/NĐ-CP dated July 8, 1999, on basic construction investment management, and Decree No. 88/1999/NĐ-CP dated September 1, 1999, on tender regulations, to resolve difficulties and speed up the implementation of investment plans.

4. In cases where it is necessary to build office premises, heads of ministries and sectors, and chairpersons of people's committees at all levels shall be responsible for balancing within their allocated investment funds to build office premises. If the allocated investment funds cannot meet the needs, they shall self-balance additional legitimate sources to invest and bear responsibility for those funds. Office building projects shall comply with current investment and construction management regulations.

5. Regarding state credit funds:

- Concentrate on ongoing projects to enhance production capacity and efficiency, increasing competitiveness in 2000.

For ongoing projects, including groups A, B, and C currently borrowing from lending institutions, allow project sponsors to continue signing loan contracts with these institutions until project completion. The State Bank of Vietnam directs commercial banks to raise sufficient funds to lend according to the progress requirements of ongoing projects. The state continues to implement interest rate subsidy mechanisms for lending organizations based on actual outstanding balances.

- For new projects, divide them into two groups: group A projects assigned by the Prime Minister; group B and C projects will be based on general guidelines on target and form of credit announced, project sponsors will work specifically with the Development Support Fund to sign credit contracts, regardless of economic components. Allocate appropriate funds for small and medium-sized enterprises.

- To facilitate access to state investment credit funds for project sponsors and investors from the start of the year, the Development Support Fund shall stabilize its organizational structure to operate; develop plans for raising and lending funds, financial assessment procedures, and loan repayment plans for newly started projects, announce assessment results, guide sponsors to sign loan contracts according to regulations. Summarize implementation status monthly and report to the Prime Minister.

6. The Ministers, Heads of agencies at the ministerial level, Heads of government agencies, Chairpersons of provincial people's committees under the central government, Chairpersons of management boards, and General Directors of centralized state-owned corporations shall direct, organize the implementation of this Directive, and report periodically monthly, quarterly, semi-annually, and annually in accordance with the provisions of Government Decree No. 52/1999/NĐ-CP dated July 8, 1999.

For projects in Group B and Group C funded from the state budget, after the ministries, sectors, and localities have arranged plans, they must submit them to the Ministry of Planning and Investment and the Ministry of Finance no later than February 28, 2000 for monitoring, urging, and inspecting the implementation. The Ministry of Planning and Investment shall take the lead in coordinating with the Ministry of Finance, the Ministry of Construction, the State Bank of Vietnam, and the Office of the Government to regularly inspect the implementation of investment plans in various sectors and localities, ensuring focused investment according to plan targets and a reasonable investment structure.