Decision No. 06/2001/NQ-CP of the Government's regular meeting in May 2001

RESOLUTION

Regular Government Meeting in May 2001

On the afternoon of May 31 and June 1, 2001, the Government held its regular meeting for May 2001 to discuss and adopt the following issues::

1. The Government heard the Administrative Reform Strategy for the period 2001-2010 presented by the Minister, Head of the Government’s Organization and Cadre Department, and a Standing Member of the Government's Administrative Reform Steering Committee.

The Government agrees that over the past years, administrative reform efforts have made positive contributions to national development. However, many initiatives have been slow, lacking firmness, and yielding low effectiveness. The organizational structure remains cumbersome, with overlapping functions and responsibilities, multiple intermediate levels, lax discipline, burdensome administrative procedures, unclear collective and individual responsibilities, along with corruption and ideological, moral, and lifestyle degradation among a significant portion of officials and civil servants, which hinder economic and social development and reduce the country's growth momentum.

To successfully implement the Ninth National Party Congress Resolution and the Economic-Social Development Strategy until 2010, the Government reaffirms its determination to intensify the implementation of the Administrative Reform Program for the period 2001-2010 in accordance with appropriate steps towards political system renewal. In the immediate term, it is necessary to focus on preparing contents related to amending the 1992 Constitution, the Law on the Organization of the Government, the Law on the Organization of People's Councils and People's Committees, serving as a basis for clearly defining the functions, tasks, authorities, and organizational structures of the Government, Ministries, agencies at the level of ministries, government agencies, and local administrations; concentrating on reviewing and immediately abolishing administrative procedures that still cause inconvenience to citizens and businesses; rectifying the order and discipline within the administrative system.

The Government’s Organization and Cadre Department and the Government's Administrative Reform Steering Committee are tasked with incorporating the opinions from the meeting, refining the Administrative Reform Program, particularly the immediate actions to be taken in 2001-2002, and submitting it to the Prime Minister for consideration and issuance in June 2001.

2. The Government approved the draft Decree replacing Decree No. 21/CP dated March 5, 1997, on the temporary regulations for establishing, managing, and using the Internet, presented by the General Director of the Posts and Telecommunications Administration. The Posts and Telecommunications Administration is instructed to coordinate with the Government Office and the Ministry of Justice to incorporate the opinions of the meeting participants, revise the draft, and submit it to the Prime Minister for consideration and issuance in June 2001.

3. The Government heard the Ministry of Planning and Investment present the draft Decree on the Tendering Regulations for Oil Exploration and Exploitation Projects; the Minister, Chairman of the Government Office reported on the consolidated opinions of the Government members regarding the draft Decree.

The Government approved this draft Decree, instructing the Ministry of Planning and Investment and the Government Office to refine the draft and submit it to the Prime Minister for issuance in June 2001.

4. The Government heard the Ministry of Planning and Investment present the draft Resolution on Strengthening Foreign Direct Investment Attraction and Enhancing Its Effectiveness for the Period 2001-2005.

Since the promulgation of the Law on Foreign Investment, foreign direct investment (FDI) has positively contributed to achieving national economic and social goals, supplementing important capital for development, promoting structural economic transformation, enhancing technological levels, expanding export markets, opening up new industries and products, creating more jobs, contributing to expanding international relations, and facilitating active integration into the global economy.

In recent times, the Government has made considerable efforts to improve the investment environment. While there has been progress in attracting investment in 2000 and the early months of 2001, it has not been firmly established. Under increasingly fierce competition in attracting investment, especially in the region, FDI activities have revealed weaknesses and limitations that need urgent correction, such as: insufficient clarity on FDI policies at various levels and sectors; an unbalanced investment structure with low efficiency; limited legal framework and cumbersome administrative procedures...

The Government has determined that over the next five years, approximately 12 billion USD must be attracted to ensure that by 2005, the foreign-invested enterprise sector contributes 15% to GDP. Efforts should focus on encouraging FDI in export-oriented manufacturing, processing industries, high-tech industries, new materials, particularly information technology, biotechnology, electronics, and oil and gas. Maximum incentives should be provided for FDI projects in economically disadvantaged regions. A wider range of investment forms and sectors should be promoted.

The Ministry of Planning and Investment and the Government Office are instructed to incorporate the opinions of the Government members, revise the draft, and submit it to the Prime Minister for consideration and decision.

5. The Government heard the Minister of Construction present drafts of Decrees on Investment Incentives for Housing Construction for Sale and Rent; Classification and Administrative Management Levels of Urban Areas; the Minister, Chairman of the Government Office reported on the consolidated opinions of the Government members regarding these two draft Decrees.

The Ministry of Construction and the Government Office are instructed to incorporate the opinions of the Government members and meeting participants, urgently revise the two Decrees, and submit them to the Prime Minister for consideration and decision.

6. The Government heard the Minister of Planning and Investment present the report on the socio-economic situation in May and the first five months of 2001.

Despite numerous difficulties, the socio-economic situation in the first five months maintained a growth rate. Agricultural production continued to develop. By now, localities have basically completed the temporary purchase of 1 million tons of rice and 150 thousand tons of coffee. Industrial production increased significantly. Export and import activities maintained a stable growth rate. Service activities developed well. Foreign direct investment continued to improve, and domestic private capital was effectively mobilized.

The total state budget revenue for the first five months is estimated to reach VND 38.7 trillion, equivalent to 44.8% of the annual estimate. The total state budget expenditure for the first five months is estimated to be nearly VND 42 trillion.

Cultural and social activities such as education and training, science and technology, culture and information, employment resolution, poverty alleviation and social assistance, health care, and social evil prevention have made certain progress.

However, difficulties in product consumption in agriculture are very pressing. Industrial production has shown signs of slowing down, with market consumption difficulties emerging. The export market has been narrowed, and export prices are low. The implementation of development investment capital is low, many projects funded from the state budget and state credit are disbursed slowly, and development investment expenditure is low.

In light of this situation, the Government issued Resolution No. 05/2001/NQ-CP dated May 24, 2001, supplementing some management measures for the 2001 economic plan. The Government requests ministries, sectors, and localities to intensively direct and implement the proposed measures effectively, overcome challenges, and fulfill the country's socio-economic tasks for 2001.