Decision No. 05/2003/NQ-CP of the Government at the regular meeting of the Government in March 2003

 RESOLUTION
Regarding the regular Government meeting in March 2003

On March 31 and April 1, 2003, the Government convened its regular meeting for March 2003 to discuss and adopt the following issues:

1. The Government heard and discussed the Tax System Reform Strategy from now until 2010 presented by the Ministry of Finance.

Through two stages of implementing tax policy reform from 1990 to 2000, the national economy has established a unified tax policy system covering most sources of revenue, applicable to all economic sectors, and gradually adapting to the requirements of transitioning the economy towards a socialist-oriented market economy mechanism. The current tax policy system ensures the mobilization of a portion of the national income, meets the expenditure needs of the state budget, and serves as an important macro-regulatory tool of the State, contributing to promoting production and business development, encouraging investment and exports, restructuring the economic structure, protecting domestic production, and creating a fair competitive environment under the market mechanism. However, the current tax system still has limitations due to incomplete coverage of taxable objects and taxpayers; tax administration work lacks responsiveness, fails to promptly grasp situations to formulate appropriate policies; order and discipline in the tax sector are not strict enough, with widespread cases of tax loss, tax evasion, tax fraud, and corruption in tax management.

Taxation is a complex issue affecting all aspects of economic and social life, therefore it requires thorough research to develop solutions for reform, addressing existing shortcomings, and building a tax system that is both comprehensive and complete in terms of policy and tax administration.

The Ministry of Finance is tasked with leading, coordinating with the Government Office and relevant ministries and agencies to incorporate the opinions of Government members, finalize the draft Tax System Reform Strategy, and submit it to the Prime Minister for consideration and decision to be submitted to the Politburo.

2. The Government heard the Minister of Planning and Investment present the draft Decree amending and supplementing certain Articles of the Tender Regulation issued together with Decree No. 88/1999/NĐ-CP dated September 1, 1999, and amended by Decree No. 14/2000/NĐ-CP dated May 5, 2000 of the Government.

Since 1994, the State has issued eleven legal normative documents on tendering to strengthen the management of state capital and assets in investment and construction. The Tender Regulation issued together with Decree No. 88/1999/NĐ-CP dated September 1, 1999, and amended and supplemented by Decree No. 14/2000/NĐ-CP dated May 5, 2000 of the Government has been and continues to play a positive role, serving as a tool to control state spending and usage of funds effectively, ensuring competition, fairness, and transparency in tendering. However, through practical application, the Tender Regulation has generated some unsuitable points such as a complex and lengthy tender organization process, unclear responsibilities and tasks in organizing tenders and managing state affairs in tendering... making some project tenders formalistic, less effective, and prone to corruption. These issues need to be urgently addressed to improve the quality of tendering and the effectiveness of state management in tendering.

The Ministry of Planning and Investment is tasked with leading, coordinating with the Government Office and related ministries to incorporate the opinions at the meeting, finalize the draft Decree, and submit it to the Government members for comments before presenting it to the Prime Minister for signature and issuance.

3. The Government heard the Minister of Planning and Investment present the draft Enterprise Law (amended), the Minister of Natural Resources and Environment present the draft Land Law (amended), the Minister of Home Affairs present the draft Organization Law of People's Councils and People's Committees (amended), the draft Election Law of People's Council Deputies (amended), and the draft Reward and Commendation Law; and listened to the report by the Chairman of the Government Office summarizing the opinions of Government members on the above draft Laws.

The Government discussed and reviewed the issues with differing opinions within the content of the above draft Laws.

The Ministry of Planning and Investment is tasked with leading, coordinating with the Ministry of Justice, the Government Office, and related agencies to incorporate the opinions of Government members, finalize the draft Enterprise Law (amended); the Minister of Planning and Investment will submit the draft Law to the Standing Committee of the National Assembly on behalf of the Prime Minister.

The Ministry of Natural Resources and Environment is tasked with leading, coordinating with the Ministry of Justice, the Government Office, and related agencies to incorporate the opinions of Government members, finalize the draft Land Law (amended), and submit it to the Prime Minister for consideration and decision on submitting it to the Standing Committee of the National Assembly.

The Ministry of Home Affairs is tasked with leading, coordinating with the Ministry of Justice, the Government Office, and related agencies to incorporate the opinions of Government members, finalize the draft Reward and Commendation Law; the Minister of Home Affairs will submit the draft Law to the Standing Committee of the National Assembly on behalf of the Prime Minister.

The Ministry of Home Affairs is tasked with leading, coordinating with the Ministry of Justice, the Government Office, and related agencies to incorporate the opinions of Government members, finalize the draft Organization Law of People's Councils and People's Committees (amended) and the draft Election Law of People's Council Deputies (amended), and submit them to the Prime Minister for consideration and decision on submitting them to the Standing Committee of the National Assembly.

4. The Government heard the Chairman of the People's Committee of Hanoi City report on several urgent issues related to the construction and development of the capital city.

The Government acknowledges the proposals and recommendations of the People's Committee of Hanoi City. Ministries and agencies under the Government are instructed to promptly study and propose appropriate solutions within their functions, duties, and authorities to create the best conditions for the construction and development of Hanoi; they are required to enhance cooperation with Hanoi's agencies in related areas of work, especially land clearance, land management, urban management... in accordance with the provisions of the law.

5. The Government heard Deputy Prime Minister Vu Khoan's report on some issues regarding the military situation in Iraq and their impacts and effects on the country's economy; heard the Minister of Planning and Investment's report on the socio-economic situation in March and the first quarter of 2003; the Minister of Health's report on the situation of acute respiratory infections caused by viruses; and the Minister of Trade's report on export conditions and measures to stabilize and promote exports.

In the first quarter of 2003, the country had to face many difficulties due to widespread drought, particularly in some provinces in the Central Highlands and Central Vietnam, with a high risk of forest fires; fluctuations in world market prices, with some raw materials increasing in price; and the war in Iraq having negative impacts on the country's economy, especially on exports and tourism.

Anticipating the situation, from the beginning of the year, the Government focused on directing sectors and levels to implement tasks and plans for 2003 and response measures. Therefore, overall, economic activities have maintained the growth momentum of 2002. Industrial and agricultural production continued to achieve high growth rates, especially in the non-state sector. Service activities were diverse, and the domestic market was active. Export turnover reached 26% of the annual plan and increased by 43.1% compared to the same period last year. Total social investment capital was satisfactory, especially private investment, with the progress of key projects being ensured. State budget revenue showed positive changes. Monetary operations made some progress. Many social activities were implemented effectively, promptly, and efficiently, particularly in preventing and controlling acute respiratory infections, ensuring public order and safety, and reducing traffic congestion and accidents. Preparations for the 22nd Southeast Asian Games continued to be strengthened. National defense, security, and public order were guaranteed.

However, the economic growth rate is still lower than the planned target. Weather difficulties continue to negatively impact agricultural production in the Central Highlands and Central Vietnam. High prices of some input materials affect production and residents' livelihoods. Particularly, if the war in Iraq continues, it will have adverse effects on the country's exports, trade, investment, and tourism.

The Government requests Ministries, ministerial-level agencies, governmental agencies, People's Committees of provinces and centrally-administered cities:

1) To closely monitor domestic and international situations, propose and implement effective measures to minimize the impact on production, business, and other economic activities, ensuring macroeconomic stability.

2) To strictly direct the implementation of measures to boost exports. Assign the Ministry of Trade to lead, together with relevant ministries and agencies, to study and develop plans to ensure export markets, especially for goods such as rice, tea, milk, cooking oil...

3) To focus on directing investment construction work, emphasizing the acceleration of construction progress of important projects and those that can be completed within the year; speeding up the disbursement of ODA funds, diversifying sources of funding, and ensuring sufficient capital for development investment.

4) To find effective solutions to prevent natural disasters, mitigate the consequences of drought, and address difficulties in agricultural production.

5) To strengthen administrative and economic measures to manage the market and society effectively. Particularly, to focus on preventing and handling acute respiratory infections effectively; continue to intensify efforts to ensure traffic safety; curb and eliminate social evils.