Resolution No. 01/2004/NQ-CP On Main Measures to Focus on Directing and Managing the Implementation of the State Budget Plan for 2004

RESOLUTION

On several key measures to be focused on directing and managing the implementation of the state budget plan for 2004
Implementation of the state budget plan and national budget for 2004

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The year 2004 is the fourth year implementing the Resolution of the Ninth National Party Congress and Resolution No. 55/2001/QH10 of the National Assembly on the five-year plan from 2001 to 2005, which is of great significance in completing the goals of the five-year plan. To implement the Resolutions of the Eleventh National Assembly, Fourth Session on tasks for economic and social development and the state budget estimate for 2004, the Government has identified several key measures to be focused on directing and managing the implementation in 2004 as follows:

 I. STRONGLY IMPROVE THE INVESTMENT AND BUSINESS ENVIRONMENT

1. Continue to focus on strongly improving the business environment, creating new advantages to help enterprises reduce production costs, lower prices, and improve product quality.

Adjust land prices according to the provisions of the amended Land Law, expand land auctions and bidding for projects using land, reform compensation and clearance work, and create conditions for all organizations and individuals from various economic sectors with investment projects to obtain production sites in accordance with requirements.

2. The Ministry of Natural Resources and Environment shall take the lead and coordinate with central ministries, agencies, and localities to implement the amended Land Law:

a) Review and correct planning and land use plans, especially land near urban areas, along transportation routes, industrial zones, address the issue of suspended planning; coordinate with relevant central ministries, agencies, provincial People's Committees, and municipal People's Committees to build, implement, and propose mechanisms and policies to utilize land and real estate funds for economic and social development.

b) Coordinate with the State Inspectorate and central ministries, agencies, and localities to continue inspecting and auditing construction management and land use in some localities.

c) Firmly reclaim land areas allocated or leased to organizations and individuals beyond the legal time limit without use, land allocated or leased beyond authority or to inappropriate recipients, particularly land for residential buildings, production projects, service projects, agricultural and forestry farms, and land used for administrative and public services.

d) Establish strict management regulations to prevent situations where enterprises are granted land that the State has decided to reclaim (residential land, agricultural land, forestry land) for urban planning and industrial development but not invested in as stipulated, instead subdividing and selling land plots for high profits, causing public discontent.

e) Accelerate the progress of issuing land use right certificates, focusing on residential land in urban areas.

f) Review the planning of industrial zones and industrial clusters in conjunction with local land use plans.

g) Propose specific mechanisms and policies regarding land for socialized projects in fields such as education, healthcare, culture, sports, etc.

3. The Ministry of Planning and Investment shall take the lead and coordinate with relevant ministries, agencies, and localities:

a) Study, supplement, amend, and promulgate new regulations in line with development requirements and the process of international economic integration, aiming to enhance transparency and public information disclosure.

b) Develop documents to implement the amended Law on State-Owned Enterprises and measures to accelerate the restructuring, modernization, and development of the state-owned enterprise sector approved by the Prime Minister.

4. Central ministries, agencies, and localities:

a) The State Inspectorate shall organize the implementation of the Plan No. 05 of the Politburo and the Prime Minister's directives on construction project inspections; simultaneously report and recommend measures to the Prime Minister for handling inspection conclusions in 2003 on construction investments. Relevant ministries, agencies, and localities shall implement within their respective management responsibilities.

b) Conduct reviews and evaluations of the implementation of Decree No. 90/2001/NĐ-CP dated October 23, 2001 of the Government on assisting small and medium-sized enterprises, Directive No. 08/2003/CT-TTg dated April 4, 2003 of the Prime Minister on enhancing the efficiency and competitiveness of enterprises, and develop specific measures to implement more effectively in 2004.

c) Actively implement programs and specific plans to assist the development of enterprises, especially small and medium-sized enterprises. Coordinate with the Vietnam Chamber of Commerce and Industry and associations to implement entrepreneurship programs; provide assistance, promotion, and development of enterprises suitable to the characteristics of each type and the specific circumstances of each locality; establish a nationwide business information network to ensure timely provision of information for state management and market research for businesses. The Ministry of Finance shall take the lead, study, and submit to the Government for approval the Small and Medium-Sized Enterprise Development Support Fund in the second quarter of 2004.

5. Ministers, Chairmen of Provincial People's Committees under the Central Government, and Chairmen of Management Councils of the 91 State-Owned Corporations:

a) Strictly implement the 2004 plan for restructuring state-owned enterprises approved by the Prime Minister.

b) Implement measures to reduce subsidies in the form of debt write-offs, conversion of loans into budgetary allocations, and preferential loans for state-owned enterprises; those state-owned enterprises that are unprofitable and unable to develop must be sold, leased, or liquidated according to regulations. The Ministry of Finance shall provide detailed guidance, compile reports, and submit the results of implementation to the Government by December 2004.

6. To strongly improve the environment for attracting foreign direct investment, the Ministry of Planning and Investment shall coordinate with central ministries, agencies, and localities:

a) Summarize the implementation of Resolution No. 09/2001/NQ-CP of the Government dated August 28, 2001 on enhancing foreign direct investment attraction and improving its effectiveness for the period 2001-2005; develop a strategy for attracting foreign investment for the period 2006-2010.

b) Review industrial planning, identify a list of foreign direct investment projects suitable for integration requirements.

c) Implement Decree No. 27/2003/NĐ-CP dated March 19, 2003 of the Government amending and supplementing certain articles of Decree No. 24/2000/NĐ-CP dated July 31, 2000 detailing the implementation of the Law on Foreign Investment in Vietnam, and Decree No. 38/2003/NĐ-CP dated April 15, 2003 on converting some foreign-invested enterprises to joint-stock companies.

d) Pilot new forms of foreign investment such as joint ventures, capital management companies, mergers and acquisitions, with appropriate conditions and steps. In the first quarter of 2004, the Ministry of Planning and Investment will coordinate with the Ministry of Finance to issue specific regulations guiding the conversion of foreign-invested enterprises to joint-stock companies.

7. The Ministry of Science and Technology shall take the lead:

a) Draft and submit to the Government a proposal to amend and supplement Decree No. 45/1998/NĐ-CP dated July 1, 1998 of the Government on technology transfer, aiming to abolish the approval of technology transfer contracts and remove limits on technology transfer fees for private companies.

b) Draft and submit to the Government a proposal to amend and supplement Decree No. 12/1999/NĐ-CP dated March 6, 1999 on administrative penalties in the field of intellectual property rights, specifying reasonable penalties for violations of intellectual property rights.

c) By the second quarter of 2004, study and draft a proposal to form and develop a science and technology market, to be submitted to the Government.

8. The Ministry of Planning and Investment shall take the lead, coordinating with the Ministries of Trade, Finance, Posts and Telecommunications, and the State Bank of Vietnam to guide the establishment of foreign-invested enterprises in trade, credit, insurance, telecommunications, advertising sectors, ensuring compliance with bilateral and multilateral international commitments; submit to the Government proposals to amend and supplement relevant laws if necessary.

9. The Ministry of Trade shall take the lead in drafting and submitting to the competent authority a proposal to amend the Law on Trade, expanding the functions and activities of trading company branches; broadening the range of import and export goods according to the integration roadmap of Vietnam in regional and international areas.

10. The Ministry of Labor, Invalids and Social Affairs shall coordinate with the Ministry of Planning and Investment to study and submit to the Government proposals to amend the provisions of Clause 1, Article 3 of Decree No. 105/2003/NĐ-CP dated September 17, 2003 of the Government detailing and guiding the implementation of certain articles of the Labor Code regarding the recruitment and management of foreign workers in Vietnam, aiming to increase the proportion of foreign labor in enterprises of various economic components in the country.

11. The Ministry of Labor, Invalids and Social Affairs shall guide the implementation of Decree No. 105/2003/NĐ-CP dated September 17, 2003, delegating the Chairman of the People's Committee of provinces and centrally-administered cities to consider and decide on allowing enterprises to employ more foreign workers than the general limit when there is a need.

12. The General Statistics Office shall take the lead, coordinating with the Ministry of Planning and Investment and related agencies to draft and submit to the Prime Minister a proposal to improve statistical information services, ensuring essential information is provided promptly to investors.

13. The Ministry of Agriculture and Rural Development shall take the lead, coordinating with related ministries, agencies, and localities:

a) Draft and publish a plan for agricultural development oriented towards production linked with processing and consumption. Continue to guide and instruct localities to review and adjust plans for agriculture, forestry, salt industry, and water resources management to implement structural adjustments in rural agriculture and economy towards high-quality commodity production, increasing income per hectare of agricultural land, and meeting integration requirements.

b) Focus on developing products such as rice, rubber, tea, cashew nuts, coffee, vegetables, fruits for export.

c) Continue implementing the seed program linked with storage and processing, research and application of advanced technologies in processing and preserving agricultural products.

d) Consolidate and develop cooperatives, create favorable conditions to promote the development of farm households; study and summarize experiences in developing farm households to replicate successful models.

đ) Implement restructuring, reform, and development of state-owned farms and forests according to Resolution No. 28/NQ-TW dated June 16, 2003 of the Politburo; reform and develop collective economies; develop private economies, especially farm households.

e) Reform forest management by clearly defining special-use forests and protective forests. Strengthen the role of state agencies in managing and protecting forests, properly guiding the allocation of land and forest management contracts (including natural forests) to households and communities.

g) Implement Directive No. 12/2003/CT-TTg dated May 16, 2003 on strengthening urgent measures to protect and develop forests; strictly handle all acts of deforestation and aiding those who destroy forests.

h) Summarize and evaluate the implementation of Decision No. 80/2002/QĐ-TTg dated June 24, 2002 of the Prime Minister on policies encouraging the consumption of agricultural products and goods through contracts; submit to the Prime Minister solutions to address existing issues and difficulties, creating a legal basis to enhance the effectiveness of contract implementation.

14. The Ministry of Fisheries:

a) Take the lead, coordinating with related ministries, agencies, provincial people's committees, to review and adjust aquaculture planning; issue regulations on safe aquaculture zones; diversify breeding methods, selection of seeds, and production technologies to produce high-value aquatic seed products for export.

b) Continue to effectively direct the recovery of debts and enhance the efficiency of the distant fishing program in accordance with Decision No. 89/2003/QĐ-TTg dated May 8, 2003 of the Prime Minister.

15. The Ministry of Industry:

a) Continue to review and adjust the planning for key industries up to 2010, focusing on developing the mechanical manufacturing industry and some leading industries that create breakthroughs; at the same time, invest strongly in high-tech zones to increase competitiveness. Focus on implementing the program to develop key mechanical products. Implement the program to develop local industries, paying attention to small-scale handicrafts and traditional craft villages.

b) Participate with the State Steering Committee for Key Projects to resolve fundamental bottlenecks and obstacles in the implementation of key projects in the industry, primarily the implementation of the strategy for the development of the mechanical industry until 2010, the power sector from 2001 to 2010, the steel industry until 2010 and the orientation until 2020, the Ca Mau Gas-Electric-Ammonia Project, and the Dung Quat Refinery Project.

c) Concentrate on directing the implementation of the Fifth Master Plan for Electricity to ensure the supply of electricity for the country's development.

d) Together with the Ministry of Agriculture and Rural Development and the People's Committees of provinces and centrally governed cities, urgently organize and implement the project to develop the processing industry for agriculture, forestry, and fisheries according to Directive No. 24/2003/CT-TTg dated October 8, 2003 of the Prime Minister on developing the processing industry for agriculture, forestry, and fisheries.

16. Ministries, central agencies, localities, and Total Corporation 91:

a) Review each field and product currently having high production costs, propose measures to specifically reduce production costs and prices to improve the competitiveness of each product.

b) Study and promulgate mechanisms, policies, and solutions to enhance the competitiveness of industrial products (primarily textiles, garments, leather, footwear, processing industries, handicrafts, etc.) to meet the requirements of export markets in the process of globalization.

c) Organize the implementation of policies to develop industries using domestic raw materials to increase the value added of industrial products and leverage internal strength for economic development. Pay attention to investing in the development of local industries in difficult areas and mountainous regions.

17. The State Audit Organization shall implement the audit plan for 2004 approved by the Prime Minister, conduct regular audits of state-owned enterprises still operating under monopoly conditions.

18. The Ministry of Finance shall take the lead and coordinate with relevant ministries managing production to strictly control pricing for certain products and services currently produced under monopoly conditions such as electricity, transportation, telecommunications, aviation, so that by the end of 2005, the prices of goods and services under monopoly will be reduced to the average level of similar products in the region; at the same time, create conditions for establishing businesses to participate in these sectors to increase competition and gradually eliminate monopolies.

19. Ministries and related agencies shall take specific measures to reduce production costs such as transportation costs (road tolls, administrative costs in traffic management), electricity prices for production, postal and telecommunications service fees, port fees, customs fees, etc., raise the responsibility of managers in state-owned enterprises linked to the effectiveness of business operations.

20. To develop the domestic market, the Ministry of Trade:

a) Coordinate with localities to effectively implement Decision No. 311/QĐ-TTg dated March 20, 2003 of the Prime Minister approving the project to continue organizing the domestic market, focusing on developing rural trade until 2010.

Coordinate with the Ministry of Agriculture and Rural Development and localities to expand models of production and business: production - collection - processing - consumption which have been successfully applied by some export-oriented businesses.

b) Develop a model for organizing the market towards establishing economic linkages in circulation and between circulation and production based on economic spaces and market capacities in each area (such as markets, wholesale centers, retail centers, shopping centers, supermarkets, etc.) to create a turning point in the development of the domestic market, primarily the rural market.

c) Maintain and improve the quality and effectiveness of macro-management of supply and demand, markets, and prices of key commodities to ensure stability for the sustainable development of the domestic market. Implement new management mechanisms for oil trading and survey, study, and propose reforms in the management and operation of other essential goods such as fertilizers, steel, medicines, etc. Improve the institutional framework for the circulation of domestic goods, organize a two-way information system, enhance the quality and effectiveness of market and price forecasting and management of key commodities, and promote domestic trade.

21. The Tourism General Administration shall cooperate with central ministries, agencies, and related localities to utilize major events such as ASEM-5, the 50th anniversary of the Dien Bien Phu victory, Hue Festival, visa exemption for Japanese citizens, opening air routes with the United States, etc., to boost tourism activities.

II. Expand the scale and improve the efficiency of investment.

1. Ministries, central agencies, and localities shall mobilize all resources for development investment. Fully plan all development investment funds to ensure growth targets and structural economic transformation.

2. Accelerate the issuance of bonds to increase investment capital:

a) The Ministry of Finance shall continue to issue Government Bonds according to Decision No. 182/2003/QĐ-TTg dated May 9, 2003 of the Prime Minister to increase the State's investment capacity in key projects and large-scale projects in the transport, water conservancy, and resettlement works serving the construction of Son La Hydropower Plant and Tuyen Quang Hydropower Plant.

The Ministry of Transport, the Ministry of Agriculture and Rural Development, and other relevant ministries and localities shall urgently organize and implement construction projects using Government bonds in accordance with the plan and regulations on the management of investment capital for basic construction.

b) The Ministry of Finance shall urgently carry out the issuance of "Education Bonds" in 2004 to implement the program of reinforcing school buildings and classrooms in primary and secondary schools, striving to eliminate three-shift classes and temporary structures made of bamboo, wood, and palm leaves by 2005 in accordance with Resolution No. 17/2003/QH11 of the National Assembly; at the same time, actively mobilize enterprises and the whole society to contribute to this program.

The Ministry of Education and Training shall take the lead and coordinate with the Ministry of Planning and Investment and the Ministry of Finance to accurately define the criteria for classrooms and rooms that need support from education bonds to provide a basis for supporting localities truly facing difficulties; simultaneously, allocate and supervise the effective use of these funds, and report to the Government on the implementation results in December 2004.

Localities shall accelerate investment and construction activities, ensuring timely disbursement, but must not allow any loss in the use of funds for reinforcing school buildings.

c) The Ministry of Finance shall take the lead and coordinate with relevant ministries and sectors to guide some large state-owned corporations and enterprises to issue corporate bonds to attract additional investment capital; at the same time, create conditions to promote the rapid increase in the volume of goods traded on the securities market.

d) Localities with borrowing capacity and ability to repay debts may issue investment bonds to raise funds for building economic and social infrastructure, creating conditions to attract investment from all economic sectors. To implement this, localities must coordinate with the Ministry of Finance and the State Bank of Vietnam to ensure interest rates and financial sources in line with the overall direction.

3. The Ministry of Finance shall take the lead and coordinate with the Securities Commission, the State Bank of Vietnam, and the Ministry of Planning and Investment to implement measures to consolidate and vigorously develop the securities market; draft and submit to the Prime Minister for approval regulations regarding the participation of large state-owned corporations and enterprises with good reputations in production, business, finance, banking, and foreign-invested enterprises in listing on the securities market.

4. The Ministry of Finance shall review and amend tax incentives for securities activities in a way that further facilitates investors in the securities sector.

5. The Ministry of Planning and Investment and the Ministry of Education and Training shall cooperate to promulgate standards and conditions for foreign investment projects in higher education to have a basis for reviewing, assessing, and granting permits; take the lead in reviewing the national project list for attracting foreign investment to adjust and supplement major projects requiring investment attraction.

6. Investment promotion organizations shall conduct promotional activities in key areas (Japan, the United States, the EU, South Korea, Taiwan...) through various forms such as organizing investment promotion delegations, meeting and working with large corporations already having projects or representative offices in Vietnam, enhancing information about foreign investment via the internet and mass media, quickly strengthening Vietnam's representation abroad for investment promotion combined with diplomatic agencies to enhance investment attraction. Effectively implement the Vietnam-Japan Joint Initiative to improve the competitiveness of Vietnam's investment environment.

7. Ministries, agencies, and localities must thoroughly implement the National Assembly's Resolution and the Government's directives on managing and allocating investment capital to ensure that from 2004, the situation of scattered and unplanned investment, exceeding the budgeted construction investment, and misappropriating investment funds contrary to regulations will be ended. Ministries, agencies, and localities must strengthen investment and construction management measures to ensure the most effective use of state budget funds. Strictly implement the Prime Minister's Directive on rectifying state-funded construction investment management. The Ministry of Planning and Investment shall take the lead and work with relevant ministries and sectors to study and propose solutions and timelines to resolve outstanding debts in construction.

8. Ministries, agencies, units, and localities must strictly direct to ensure that all projects recorded in the 2004 investment plan comply with current regulations on investment and construction management under Decrees No. 52/1999/NĐ-CP, No. 12/2000/NĐ-CP, and No. 07/2003/NĐ-CP of the Government on Investment Management Regulations and Construction; Decrees No. 88/1999/NĐ-CP, No. 14/2000/NĐ-CP, and No. 66/2003/NĐ-CP of the Government on Bidding Regulations, and related legal documents.

Ministries, agencies, and localities must review ongoing projects to cut or remove works that do not conform to approved planning, are not included in the plan, do not meet the actual development needs of the unit or locality, market requirements, or have unclear benefits. New projects shall not be initiated if the locality or unit still has ongoing projects that have not been adequately funded to complete according to the prescribed schedule.

Localities must ensure a reasonable investment structure between economic and social infrastructure; specifically, for education and training, science and technology, they must guarantee the minimum capital allocation stipulated in Decision No. 242/2003/QĐ-TTg dated November 17, 2003. Central government-targeted support funds must be allocated strictly according to the support targets specified in the plan, without reallocating funds from one target to another.

9. Strengthen management measures to prevent loss, waste, and corruption in investment and construction, especially in planning, construction supervision, ensuring compliance with procedures, and improving the quality of construction projects:

a) Strictly implement investment monitoring and evaluation within their respective sectors or fields in accordance with Decree No. 07/2003/NĐ-CP dated January 30, 2003 of the Government and the guidelines of the Ministry of Planning and Investment, and report to the Prime Minister in accordance with the prescribed regulations.

b) The person authorized to make investment decisions shall bear personal responsibility for such investment decisions.

c) Strictly implement the requirements for transparency and openness in managing and using state budget investment capital. Investors must publicly announce the content of investment decisions and investment programs and plans at the localities where the investment projects are implemented. Investment projects under the jurisdiction of local authorities must be discussed, decided upon, and publicly announced by the People's Councils at the same level.

d) The Ministry of Planning and Investment shall organize regular inspections and reports to the Prime Minister on the implementation of investment plans by ministries, state agencies, localities, and nationwide, ensuring that investments are concentrated according to the set goals and plans.

10. From 2004 onwards, the central government budget will not allocate funds to settle debts from construction investment outside the planning and plan. Ministries and localities must have specific plans to resolve basic construction debts definitively, allocating part of the investment capital from the 2004 state budget plan to settle part of the basic construction debts from the state budget sources before 2003. Ministries and localities must direct and supervise to ensure that the volume of construction investment does not exceed the allocated capital of the 2004 plan.

11. Narrow the scope of direct borrowing from the Development Support Fund, strengthen post-investment interest rate support. The Ministry of Finance shall complete the revision of Decree No. 43/1999/NĐ-CP dated June 29, 1999 on state development investment credit, submit it to the Government for approval in a direction that does not offer indiscriminate preferential treatment, but only for essential projects and goods for the national economy and urgent socialized projects in education-training and healthcare sectors, specifying the duration of programs eligible for preferential treatment and narrowing the range of preferential interest rates.

12. Ministries and localities must allocate sufficient counterpart funds for ODA projects to ensure the progress of project implementation. The counterpart fund for group A projects must not be lower than the level assigned by the Prime Minister in Decision No. 242/2003/QĐ-TTg dated November 17, 2003. The Ministry of Planning and Investment shall closely monitor and supervise the implementation.

13. Strengthen attraction of ODA capital:

a) The Ministry of Planning and Investment shall continue to improve the quality of work related to planning for attracting and utilizing ODA capital; simultaneously, compile a list of important programs and projects funded by ODA capital by sector and field (including social fields) up to 2010, and report to the Prime Minister in the fourth quarter of 2004.

b) Ministries, agencies, localities, and units must take practical measures to accelerate the disbursement of ODA funds, harmonize procedures with sponsors in groups or bilaterally, pay attention to harmonizing the structure and form of project documents (Feasibility Study Reports), bidding processes and procedures, and report on the implementation of ODA projects.

c) The Ministry of Planning and Investment shall lead and coordinate with the Ministry of Finance and relevant agencies to strengthen supervision over ODA investment capital across three categories of projects: technical assistance, non-reimbursable aid, and loans; thereby, draw lessons and select appropriate models to apply uniformly throughout the country.

d) Ministries, provinces, and cities shall improve organizational management and utilization of ODA capital; strictly implement periodic reporting and final project reporting systems, conduct audits of ODA projects focusing on centralized management, enhance the capacity of the focal agency to effectively perform its ODA management functions as stipulated by current regulations.

đ) The Ministry of Finance, together with the Ministry of Planning and Investment, shall continue to perfect, supplement, and amend the management and utilization mechanisms for ODA capital, especially tax policies, loan rescheduling, and expenditure standards; strengthen evaluation and review of the effectiveness of ODA programs and projects.

III. ADMINISTRATIVE POLICIES ON FINANCE AND CURRENCY. A. REGARDING FINANCE AND STATE BUDGET

A. REGARDING FINANCE AND STATE BUDGET

1. Ministries and localities shall organize the implementation of state budget management from the beginning of the year in accordance with the provisions of the State Budget Law (amended) and guiding documents, ensuring efficiency and thrift in all stages of the budget management process; guaranteeing the rights and responsibilities of National Assembly deputies and local People's Council members in deciding on budget allocation, supervising revenue and expenditure at each level, and implementing the system of public disclosure and transparency in budget revenue and expenditure.

2. Localities strive to increase revenue by at least 5% compared to the forecast approved by the Prime Minister in Decision No. 242/2003/QĐ-TTg dated November 17, 2003 to provide additional funds for salary reform, increased investment spending, and other urgent tasks. The Ministry of Finance shall lead and coordinate with central ministries, agencies, and localities to strengthen inspection and auditing to prevent tax evasion, tighten fiscal discipline in all economic sectors, and combine efforts with relevant forces (police, market management, taxation, customs...) to intensify anti-smuggling, anti-counterfeiting, anti-commercial fraud, and tax evasion activities; firmly handle violations and take specific measures to recover funds for the state budget that have been misappropriated.

3. Ministries, localities, and units must proactively implement methods to generate resources for salary reform and salary payments in accordance with the National Assembly's Resolution.

4. The Ministry of Finance shall continue to implement measures to promote tax system reforms, improve tax collection methods and organization in line with international commitments.

5. The ministries, central agencies, and local authorities shall effectively implement the state budget expenditure plan for the year 2004, ensuring that expenditures strictly adhere to the annual budget approved by competent authorities. They shall strengthen inspection, auditing, and oversight of state budget expenditures, paying particular attention to areas prone to waste such as basic construction investment spending and large-scale asset procurement and repair costs; spending on national target programs and projects utilizing foreign capital. Resolute measures shall be taken against heads of agencies and units where wastage, loss, and corruption occur in state budget management.

6. The ministries, central agencies, and local authorities shall intensify financial inspection, auditing, and supervision of enterprises under their jurisdiction (especially state-owned enterprises and those with monopoly products), focusing first on enterprises with financial issues, those with major investment projects, and those benefiting from preferential State policies. The results of financial inspections, audits, and supervision of state-owned enterprises shall be linked to restructuring and shareholding reforms of these enterprises. The Ministry of Finance shall be responsible for guiding and monitoring the financial inspection, auditing, and supervision activities of enterprises conducted by ministries, central agencies, and local authorities, and shall directly organize inspections, audits, and supervision of major State-owned holding companies.

7. From 2004 onwards, the mechanism of reallocating or reinvesting part or all of revenues generated locally or from enterprises' mandatory payments to the state budget for ministries, central agencies, centrally-administered cities and provinces, State-owned holding companies, and units shall be abolished. For important projects previously reallocated or reinvested and currently underway, which require continued investment for operation, the ministries, central agencies, State-owned holding companies, and localities shall use allocated budgets to continue implementation. Specifically, revenues from land use fees (under the local budget balance mechanism) shall only be used for infrastructure investment and land clearance for development purposes; they shall not be used for regular expenditure tasks.

8. The method of balancing the state budget and the form of delegated funding for subsidy and price support for policy goods, mobilization preparation, and the East Sea - island program shall be changed to targeted supplementary funding from the central budget to the local budget.

For subsidy and price support funds and non-revenue-generating policy goods, based on the level of support from the central budget and the budget balance within the local budget estimate, the provincial People's Committees shall submit specific implementation plans and contents suitable to local conditions for approval by the Provincial People's Councils.

All revenue and expenditure items belonging to the communal budget shall be fully managed and recorded in the state budget, from the budget planning stage to final settlement.

9. Based on the outcomes of implementing the financial mechanism for public service units with income according to Decree No. 10/2002/NĐ-CP dated January 12, 2002, the Ministry of Finance shall perfect the mechanism towards granting full financial autonomy, organizing task implementation, and managing staffing for all public service units with income. In the administrative sector, pilot schemes of staff and administrative cost contracting shall be further expanded according to Decision No. 192/2001/QĐ-TTg dated December 17, 2001 of the Prime Minister.

10. Provinces and cities whose administrative boundaries have been divided and adjusted according to the National Assembly’s Resolution shall quickly stabilize organizational structures and cadres to effectively fulfill economic and social development tasks from the beginning of the year.

11. Provinces and cities with favorable conditions shall develop specific plans to support newly established provinces. During the implementation of 2004 tasks, central ministries and agencies shall prioritize resources to carry out projects and tasks in newly separated provinces, particularly transportation, irrigation, water supply projects, etc., to help these provinces stabilize and develop economically and socially.

B. REGARDING CURRENCY AND CREDIT

1. In 2004, the Ministry of Finance, the State Bank of Vietnam, and the Securities Commission shall continue to implement measures to improve and develop the capital market and money market; enhance the mobilization of medium- and long-term capital. They shall continue to reform the credit mechanism towards eliminating credit subsidies and creating a more equal environment for economic entities.

2. The Ministry of Finance shall lead and coordinate with the Ministry of Planning and Investment, the Development Support Fund, and localities to evaluate and report on the results of implementing the investment program using loans for canal reinforcement, rural transportation infrastructure, aquaculture infrastructure, and rural craft village infrastructure to the Prime Minister by the third quarter of 2004; at the same time, propose solutions to mobilize funds to complete this program in 2005.

3. Continue to enhance the effectiveness of preferential credit funds from the State through the Development Support Fund and the Social Policy Bank. The Ministry of Finance, the State Bank of Vietnam, and relevant central ministries and agencies, associations, and organizations shall implement and supervise the execution of this policy.

4. The Ministry of Planning and Investment shall lead and coordinate with the Ministry of Finance and related ministries and agencies to submit to the Government a mechanism to control and limit localities from setting unreasonable preferential conditions causing unfair competition among industrial zones and localities. Promptly submit to the Government for promulgation a Decree amending and supplementing certain provisions of Decree No. 36/CP dated April 24, 1997 on Industrial Zones, Export Processing Zones, and High-Tech Zones.

5. The State Bank of Vietnam shall implement flexible monetary policies to stabilize the purchasing power of the Vietnamese currency both domestically and internationally, ensuring that the consumer price index increases by 4-5% in 2004.

6. Promote the process of improving monetary policy towards enhancing analytical and forecasting capabilities, creating necessary conditions and means to proactively regulate the money market through indirect tools, in accordance with international practices and meeting the requirements of international economic integration. Improve mechanisms, policies, and measures to increase the mobilization and utilization of capital, especially medium and long-term capital at reasonable interest rates.

7. Continue restructuring debts and handling bad debts along with risk mitigation measures to improve the quality of credit operations of credit organizations, primarily joint-stock commercial banks and state-owned commercial banks.

Continue implementing projects to restructure the state-owned commercial banking system and projects to consolidate and rectify joint-stock commercial banks, thereby enhancing the capabilities of commercial banks. The State Bank of Vietnam shall coordinate with the Ministry of Finance to submit to the Government a mechanism for ensuring the registered capital of state-owned commercial banks; implement measures to increase the sources of own funds for state-owned commercial banks. Ensure the conditions for credit organizations to truly shift to operating under market mechanisms, actively choosing, deciding, and being responsible for lending secured by assets or unsecured lending according to the Government's regulations on loan guarantees.

8. The State Bank of Vietnam shall take the lead, together with relevant agencies, to continue implementing phase two of the project to modernize the banking system and payment systems; promptly study and build a proposal to expand and develop cashless payments in the economy. In the first quarter of 2004, submit to the Prime Minister regulations on cash transactions that are appropriate to current requirements. Take the lead, together with relevant agencies, to study and supplement regulations on foreign exchange management; build a proposal on the roadmap to gradually reduce and eventually eliminate dollarization in the economy.

9. Develop the securities market in tandem with continuing to implement mechanisms and policies to create a legal environment, minimize risks in market activities and securities trading.

IV. PROMOTE EXPORTS AND ECONOMIC INTEGRATION AT THE INTERNATIONAL LEVEL

1. Continue implementing policies and measures to promote exports and enhance the effectiveness of import-export activities.

Ministries, central agencies, and localities shall guide enterprises to continue implementing solutions to expand markets and intensify production of export goods to rapidly increase the volume of goods and services exported, and increase the proportion of processed export goods to enhance the value of exported goods.

Ministries and localities shall proactively build and implement necessary support plans for goods that need to be promoted for export.

2. The Ministry of Trade shall proactively guide and provide market information to fully utilize the quota for textile and garment exports in 2004; simultaneously, guide enterprises to apply the CEPT/AFTA Program to proactively export to the ASEAN market and expand export markets.

3. The Ministry of Trade:

a) Coordinate with relevant ministries, agencies, and localities to urgently implement key national trade promotion programs.

b) Proactively monitor and forecast market trends to adopt suitable and effective management measures; proactively identify and respond to non-tariff barriers; take measures to limit and actively combat trade disputes and technical barriers in international trade.

c) Guide the construction and effective management of Vietnamese enterprise brands to support enterprises in building brands and trademarks, promoting trade, enhancing competitiveness, and developing export markets.

4. The Ministry of Trade, in coordination with the Ministry of Industry, shall continue researching mechanisms for allocating quotas for textile and garment exports, ensuring equality in export business. Organize the implementation of the textile and garment agreement with the United States and the European Union effectively. Focus on developing markets and products without quotas to ensure stable production and exports.

5. Expand access to new markets and traditional markets (China, the Middle East, Africa, Russia, and Eastern Europe); diversify rice export forms (trade, government contracts, barter, deferred payment).

6. Along with promoting exports, pay attention to managing imports for each group of goods to limit trade deficits. Review and carefully assess investment plans and research to have practical solutions to adjust tariff rates in a timely manner, particularly tax policies for components and parts to encourage enterprises and contractors to use and purchase domestic equipment; encourage the development of supporting industries and enterprises using domestic raw materials, and apply measures to conserve imported raw materials.

7. In 2004, ministries, localities, and enterprises must be more proactive in international economic integration:

a) The Ministry of Finance shall take the lead, coordinating with the Ministry of Trade and relevant ministries and agencies to effectively implement commitments in the AFTA accession roadmap, guiding and instructing enterprises to develop production and business plans to proactively implement the committed reduction in tariffs and non-tariff barriers.

b) Sectoral ministries shall build plans to open up markets in conjunction with establishing technical standards and regulations for imported goods to protect the legitimate interests of consumers and domestic producers, in compliance with World Trade Organization (WTO) rules. Proactively build and develop bilateral economic relations; at the same time, accelerate the negotiation process for WTO accession.

c) The Ministry of Trade shall direct the negotiation team to coordinate with the Ministry of Finance and relevant ministries and sectors to develop a negotiation roadmap for multilateral and bilateral negotiations (both in terms of time and content) in 2004; determine the final commitments upon joining the World Trade Organization, report to the Prime Minister (in the first quarter of 2004) for submission to seek the opinion of the Politburo; coordinate with the Ministry of Culture, Sports and Tourism and mass media organizations to widely publicize information about the WTO and the policy of joining the WTO.

8. Ministries, central agencies, and localities shall implement support measures for essential projects, goods, and services of the economy during the integration process, intensify the elimination of state monopoly, reduce protectionism, limit and control business monopolies, while guiding industry associations and enterprises to analyze the competitiveness of products and propose specific measures to reduce production costs, improve quality, and enhance the competitiveness of each product.

9. The Ministry of Finance shall continue to review the tax, fee, and charge system to take measures to immediately cut high input service costs; abolish fees and charges set by agencies and enterprises; reduce transport, warehouse fees at seaports and airports; customs fees for imported and exported goods.

10. Ministries and sectors shall continue to review specialized legal documents, urgently study, amend, and supplement necessary documents to meet the requirements of integration.

V. SOCIAL SECTOR

1. Implement well the goals and tasks of education, training, and vocational training development to meet the requirements of economic restructuring and labor structure adjustment in accordance with the spirit of Resolution No. 6 of the Ninth Plenum of the Party Central Committee, and the resolutions of the National Assembly.

The Ministry of Education and Training shall complete the project on building the teaching staff and management cadre, build and submit proposals for reforming the higher education system, and projects on the structure, connectivity, and division of responsibilities within the national education system (including the vocational training system) based on determining the direction of development and the structure of educational levels, fields, types of schools suitable for economic and social development needs and human resource utilization.

The Ministry of Labor, Invalids and Social Affairs shall build and implement a project to improve the quality of vocational training to serve the requirements of industrialization and modernization of the country.

2. The Ministry of Education and Training and the Ministry of Labor, Invalids and Social Affairs shall cooperate with the Ministry of Home Affairs to study and promulgate standards and norms for teaching staff, teachers, physical facilities, equipment, and finance. Publicly announce the degree to which schools have achieved these standards and norms, primarily for training institutions, as a basis for enrollment and training.

Complete the project on socializing education to be submitted to the Government, focusing on solutions for exploiting, managing, and using non-state budget investment sources to develop education and training. Promote mobilizing socio-economic organizations and individuals both domestically and internationally to participate in the school consolidation program. Strengthen supervision to ensure that localities implement the program's capital sources effectively and on schedule.

The Ministry of Education and Training shall take the lead and cooperate with related ministries, agencies, and localities to summarize and evaluate the quality of education and training, seriously analyze the opinions of the people and scientists. Based on conclusions about the quality of education and training, promote the reform of curricula, textbooks, teaching methods, and learning methods to significantly improve the quality of education and training in the near future.

4. The Ministry of Health shall cooperate with related ministries, agencies, and localities to build projects and propose investment mechanisms for constructing, renovating, and upgrading primary healthcare facilities (including promoting socialization); hospital fee projects, and projects on drug management for patients.

Upgrade provincial general hospitals and regional hospitals to have the capacity to provide quality medical examinations and treatments locally, thereby gradually addressing the fundamental issue of overcrowding in central hospitals and large cities. The Ministry of Health shall cooperate with the Ministry of Planning and Investment and the Ministry of Finance to develop plans to mobilize resources and funds to achieve this goal.

5. The Ministry of Finance shall cooperate with the Ministry of Health and related agencies to study and perfect the Decree on the management of drug prices for disease prevention and treatment to be issued by the Government in the first quarter of 2004; the Ministry of Health shall take the lead and cooperate with related ministries and agencies to submit to the Prime Minister (in the first quarter of 2004) for seeking the opinion of the Politburo; coordinate with the Ministry of Culture, Sports and Tourism and mass media organizations to widely publicize information about the WTO and the policy of joining the WTO.

6. The Ministry of Education and Training, the Ministry of Labor, Invalids and Social Affairs, the Ministry of Health, the Ministry of Culture, Sports and Tourism, the Sports Management Committee, and related ministries shall promptly submit to the Prime Minister in the first quarter of 2004 proposals for amending and supplementing the revenue collection, management, and usage systems of units under the education, health, culture, and sports sectors.

7. The Ministry of Culture, Sports and Tourism shall quickly complete the planning of the museum, library, theater, and other cultural facility systems; propose mechanisms and directions for concentrating investments in essential facilities serving community needs, especially at the grassroots level. Complete the planning for investment in the preservation of cultural and historical relics; establish mechanisms and policies for investment and decentralized management to promote the socialization of activities in this field.

Complete the Cultural Development Strategy until 2010 to be submitted to the Government for issuance in the first quarter of 2004.

Coordinate with related ministries and agencies to complete legal regulations as a basis for promoting the socialization of cultural activities. Encourage various economic components to invest in cultural undertakings. Organize important cultural and information activities in 2004, particularly commemorating the 50th anniversary of the Dien Bien Phu victory.

Complete the Information Strategy to be submitted to the Government for issuance in the first quarter of 2004.

8. The Ministry of Labor, Invalids and Social Affairs shall cooperate with relevant agencies to study and promulgate vocational training policies; mechanisms for forming the Vocational Training Support Fund for workers who lose their jobs in localities when the State implements the conversion of agricultural land to industrial zones and export processing zones; the Export Labor Support Fund.

The Ministry of Labor, Invalids and Social Affairs shall develop a project to consolidate and develop the labor export market, improve the management of labor export enterprises; ensure vocational training and language skills for workers before they go abroad to work as well as provide labor for large industrial zones; pilot the establishment of two job promotion centers in the North and South to supply labor for national key economic regions. At the same time, create conditions to support employment for workers upon returning from overseas labor contracts.

Study sanctions against enterprises that fail to implement social insurance for workers; effective measures to reduce workplace accidents; limit the situation of excessive overtime beyond regulations in non-state-owned sectors.

9. The General Statistics Office, the Ministry of Labor, Invalids and Social Affairs, and People's Committees of provinces and cities shall re-evaluate the poverty rate at the end of 2004 to accurately reflect the actual poverty situation in each locality to have full and accurate information for evaluating the results of poverty reduction efforts over the past years and prepare plans to eliminate poverty and reduce poverty in 2005 and the next five years.

10. In the first quarter of 2004, the Ministry of Public Security shall take the lead and coordinate with the Ministry of Defense, the Ministry of Finance (General Department of Customs) to build a comprehensive plan to control drug trafficking into Vietnam through borders, to be submitted to the Government.

The Ministry of Public Security, the Ministry of Labor, Invalids and Social Affairs, the Ministry of Health, and related agencies shall continue to perfect mechanisms, policies, and solutions to intensify the prevention and control of drug addiction, prostitution, and HIV/AIDS.

11. The Ministry of Public Security and the Ministry of Transport shall continue to coordinate with localities, especially major cities, to vigorously implement Decree No. 13/2002/ND-CP dated November 19, 2002 of the Government on measures to curb the increase and gradually reduce traffic accidents and congestion, Decree No. 14/2003/ND-CP dated February 19, 2003 detailing the implementation of certain provisions of the Road Traffic Law, and Decree No. 15/2003/ND-CP dated February 19, 2003 of the Government on administrative penalties in the field of road traffic.

12. The Ministry of Public Security and the Ministry of Defense shall strengthen guidance and coordination with localities, particularly key areas, to ensure security, maintain political and social stability; promptly detect and prevent all hostile forces' plots and actions; continue to effectively implement the National Program on crime prevention and control, especially organized crimes and serious criminal gangs, drug-related offenses,...

13. The Ministry of Science and Technology shall complete the proposal on reforming the management mechanism for science and technology, to be submitted to the Government in the second quarter of 2004.

14. The Sports Committee shall develop and submit to the Government a proposal to enhance the effectiveness of the Southeast Asian Games and the program for developing sports in the coming years.

VI. FOCUS ON RESOLVING CRUCIAL ISSUES IN THE ADMINISTRATIVE REFORM PROGRAM

1. Ministries, agencies, and localities shall continue to review and eliminate inappropriate administrative procedures, implement well the "one-stop shop" regime at state administrative agencies when handling cases and matters related to citizens.

Develop specific plans and implement them urgently to issue guiding documents to put into effect laws and ordinances that have come into force quickly in life.

Ministers, heads of ministerial-level agencies, and chairpersons of provincial and municipal people's committees shall have plans to inspect and audit the enforcement of laws in their respective sectors, fields, and localities, considering this as an important and regular task and as part of the inspection by higher-level administrative officials of lower-level agencies.

2. Organize the implementation of the Law on the Organization of People's Councils and People's Committees in conjunction with promoting decentralization, improving the local government machinery, and building a coherent set of systems and policies for commune, ward, and town cadres in accordance with the spirit of Resolution No. 5 of the Ninth Plenum.

In 2004, during the election of three levels of People's Councils, localities need to carefully examine and evaluate to remove from the machinery those leaders with poor qualities and weak capabilities who fail to fulfill their tasks.

Implement well the Regulations on grassroots democracy, creating conditions for the people to exercise their right to participate in economic activities and build the administration. Participate in supervising expanded forms of direct democracy; improve the quality of representative democratic institutions; implement the transparency regulations and play the supervisory role of the people, mass organizations, and the media in building institutions and supervising the activities of cadres and civil servants, fighting corrupt and wasteful behaviors, and cleansing the public service machinery.

Focus on combating corruption, harassment of the people, deceit, contempt for discipline and rules, and negligence in work.

3. Reform and improve the quality of cadre training, recruitment, and examination; strictly implement the Cadre and Civil Servant Ordinance and the civil service system; emphasize the responsibility of cadres and civil servants in enforcing the law and serving the people.

Strengthen education, inspection, and strict punishment of corrupt and degenerate cadres and civil servants. Focus on cleansing law enforcement agencies to consolidate the backbone in the fight against corruption and crime.

Strictly implement the Rules on appointment, reappointment, and rotation of leadership cadres; replace cadres with weak abilities and sluggishness; implement measures to detect, prevent, and strictly deal with negative phenomena in cadre work.

VII. IMPLEMENTATION ORGANIZATION

1. Ministries, ministerial-level agencies, and agencies under the Government shall concretize and implement the Government's Work Program for 2004.

2. The ministries, ministerial-level agencies, government agencies at all levels shall monthly and quarterly assess the results of implementing the state budget plan in accordance with regulations; identify and seek solutions to promptly address difficulties and obstacles at the grassroots level; for issues exceeding their authority, they shall compile and propose measures to resolve them.

3. The Government shall maintain specialized coordination meetings to regularly review the situation and propose measures to accelerate the implementation of the state budget plan on a quarterly basis.