Decision No. 02/1998/NQ-CP of the Government's regular meeting in January 1998

RESOLUTION

The regular monthly meeting of the Government in January 1998

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On February 23 and 24, 1998, the Government convened its regular monthly meeting in January 1998 to discuss and adopt the following issues:

I. POLICY AND MEASURES TO ENCOURAGE EXPORTS

The Government reviewed the report of Minister of Trade Truong Dinh Tuyen on "Policy and Measures to Encourage Exports" and decided on specific measures to encourage and create all conditions for rapid export growth.

1. The Ministry of Trade is tasked with incorporating the opinions expressed at this meeting, finalizing the draft projects to be submitted to the Prime Minister for signature and issuance in February 1998, including a list of certain goods that require export business licenses when exported; the number of items on this list must be very limited, and other goods not on the list will be freely exported with simplified procedures according to the business registration of enterprises.

2. The Ministry of Finance is instructed to submit to the Government amendments to relevant documents to implement the following:

Refund value-added tax for enterprises producing raw materials and semi-finished products sold to other units for export production;

Not levy additional income tax on production facilities if they export more than 50% of their produced products or have export revenue accounting for over 50% of total revenue.

AApply the lowest rate within the tax rate range for certain goods that need to be encouraged for export such as rice, aquatic products, rubber, coal...

Extending the payment period (up to one year) for import duties when importing materials and raw materials for export production should be reflected in the Draft Law amending and supplementing some Articles of the Law on Export Tax and Import Tax.

3. The Ministry of Finance, the Ministry of Trade, the State Bank, and the General Department of Customs are tasked with implementing measures to simplify and make public the procedures and processes for handling matters related to facilitate the most favorable conditions for import and export activities.

The tasks mentioned in points 2 and 3 above must be completed in the first quarter of 1998.

4. The Ministry of Planning and Investment is tasked with coordinating with the Ministry of Trade, the Ministry of Finance, the Ministry of Justice, and related agencies to study and propose to the Government adjustments and amendments to regulations on the following issues:

a) Encouraging domestic and foreign investors to invest in industries processing agricultural, aquatic, and forest products from planted forests for export. Encouraging and providing greater incentives for production facilities that use many domestic raw materials, create many jobs, and invest in modernizing technology to produce high-quality export products.

b) AApplying the highest investment incentive policy for export production; expanding forms of guarantees and beneficiaries of export credit guarantees from the National Investment Support Fund.

c) Establishing necessary mechanisms and creating favorable conditions for Vietnamese enterprises to establish production and business bases or sales networks abroad.

5. The State Bank is tasked with coordinating with the Ministry of Trade and related agencies to study the project to establish an Export Credit Fund to provide preferential loans and export credit guarantees for Vietnamese enterprises; in the short term, part of the budget from the Price Stabilization Fund can be used to support the establishment of this fund; preparing the necessary conditions for establishing an Import-Export Bank.

6. The Ministry of Trade is tasked with coordinating with the Ministry of Finance and related agencies to reorganize industry associations, establish industry development funds, and immediately implement these for rice and coffee. Studying the establishment of an Export Award Fund to reward enterprises achieving large export turnover, finding new markets and export products... Specifying the operation of brokerage and brokerage commissions in trade, in accordance with Vietnamese law and international practices as per Resolution No. 59/CP dated June 5, 1997 of the Government to encourage organizations and individuals, including those from abroad, to find export markets for Vietnamese goods.

The tasks mentioned in points 4, 5, and 6 above must be completed in the second quarter of 1998.

II. LEGISLATIVE WORK

1. Adoption of the Draft Law Amending and Supplementing Certain Provisions of the State Budget Law, the Draft Law Amending and Supplementing Certain Provisions of the Law on Export Tax and Import Tax, and the Draft Special Consumption Tax Law (Amended) presented by Minister of Finance Nguyen Sinh Hung with supplementary opinions at this meeting. The Ministry of Finance is tasked with coordinating with the Ministry of Justice, the Government Office, and related agencies to finalize the Draft Laws and report to the Prime Minister for submission to the Standing Committee of the National Assembly. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).for approval.

2. Adoption of the Draft Law Amending and Supplementing Certain Provisions of the Law on Encouraging Domestic Investment presented by Minister of Planning and Investment Tran Xuan Gia with supplementary opinions at this meeting. The Ministry of Planning and Investment is tasked with coordinating with the Ministry of Justice, the Government Office, and related agencies to finalize the Draft Law and report to the Prime Minister for submission to the Standing Committee of the National Assembly.

During the process of finalizing the Draft Laws mentioned in points 1 and 2 above, the Ministries should seek additional opinions from enterprises to ensure high feasibility.

3. For the Draft Law on Complaints and Petitions, the Government instructs the State Inspectorate to coordinate with the Ministry of Justice, the Government Office, and related agencies, based on the results of the Questionnaire soliciting opinions from members of the Government, to finalize the Draft Law and report to the Prime Minister for submission to the Standing Committee of the National Assembly. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).for approval.

III. OTHER ISSUES

The Government heard Minister of Planning and Investment Tran Xuan Gia's report on the financial and monetary crisis in Southeast Asian countries and decided on several additional policies and measures to limit the impact on Vietnam's economy, continue production development, strengthen investment management, promote exports, strictly control imports, thoroughly save in production, construction, and daily life, allocate resources for development investment, and maintain financial and monetary stability./.