Decision No. 06/2005/NQ-CP of the Government's regular meeting in April 2005

RESOLUTION

Regular Government Meeting in April 2005

During two days, April 27 and 28, 2005, the Government held its regular monthly meeting in April to discuss and adopt the following issues::

1. The Government heard the Minister of Planning and Investment present the draft Socio-Economic Development Plan for 2006-2010.

Despite facing many difficulties and challenges, we still have many opportunities to complete the socio-economic development tasks for 2005 and the five-year plan from 2001 to 2005. According to projections, many targets will be met or exceeded, with economic growth maintained at a high level, averaging about 7.5%, with each subsequent year's growth rate higher than the previous year's. The economic structure has shifted positively; major economic balances have been maintained; international economic integration and foreign trade have made new progress. Social sectors have been developed in tandem with economic growth; living standards of various social strata have improved; poverty reduction efforts have achieved good results, highly evaluated by the world, with the poverty rate in 2005 reduced by approximately 50% compared to 2000. Political stability and social security have continued to be maintained; national defense has been consolidated.

The goal of socio-economic development for the period 2006-2010 is to achieve a higher average annual economic growth rate than the period 2001-2005, creating strong momentum for structural transformation and improving the quality of growth; ensuring synchronous cultural and social development with economic growth; significantly improving the quality of education and training; focusing on infrastructure development and increasing investment in social sectors; intensifying and effectively implementing poverty reduction programs; continuing to maintain political stability and public order and safety; firmly protecting national independence, sovereignty, territorial integrity, and national security.

The work of drafting the socio-economic development plan for the period 2006-2010 must be innovated both in terms of thinking and methods, based on a comprehensive and accurate assessment of the difficulties and advantages during the implementation of the five-year plan from 2001 to 2005; it must clearly identify specific weaknesses and shortcomings that hinder economic development, find the causes of slow structural transformation, and propose breakthrough solutions to successfully implement the Socio-Economic Development Strategy for 2001-2010.

The Government requests ministries, sectors, and localities to organize discussions and provide specific comments to the Government regarding the content and proposed solutions in the draft Socio-Economic Development Plan for 2006-2010. The Ministry of Planning and Investment is tasked with incorporating the opinions from this meeting and those of ministries, sectors, and localities, refining the draft Socio-Economic Development Plan for 2006-2010, reporting to the Prime Minister for consideration, and submitting it to the Central Committee of the Communist Party for review at the 12th Plenary Session and preparing to submit it to the National Assembly for comments at the final session of 2005.

2. The Government heard the Minister of Labor, Invalids, and Social Affairs present the Report on the Poverty Line for the Period 2006-2010.

Since 1993, our country has adjusted the poverty line several times to align with economic growth and the standard of living of citizens, serving as a basis for the State to determine assistance recipients and assess the implementation of the Poverty Reduction Program. However, with the continuous improvement in the standard of living of citizens and the urgent need for economic integration, the poverty line needs to be adjusted to fit the economic growth and standard of living for the period 2006-2010. Determining the poverty line must be closely calculated in relation to factors such as household income, actual expenditures, growth rates, inflation, and gradually aligning with the poverty lines of developing countries in the region and globally; ensuring comparability over time and space. The Government agrees with the method and content of determining the new poverty line according to Option I presented by the Ministry of Labor, Invalids, and Social Affairs.

The Ministry of Labor, Invalids, and Social Affairs is assigned to lead, coordinate with the Government Office, the Ministry of Planning and Investment, the Ministry of Finance, the General Statistics Office, and related agencies to incorporate the opinions from this meeting, draft the Decision detailing the new poverty line for the period 2006-2010, submit it to the Prime Minister for issuance; and simultaneously develop the National Poverty Reduction Program for 2006-2010 for approval by the Prime Minister. The poverty reduction program must be comprehensive, clearly defining steps for each phase and having appropriate mechanisms to help the poor proactively develop production and reduce poverty, with particular attention to ethnic minority areas, mountainous regions, remote areas, and particularly difficult areas.

3. The Government heard the Minister of Transport present the draft Law on Civil Aviation of Vietnam (amended); and heard the Head of the Government Office report on the summary of opinions from Government members regarding this draft Law.

The Ministry of Transport is assigned to lead, coordinate with the Government Office, the Ministry of Justice, and related agencies to incorporate the opinions from this meeting, refine the draft Law on Civil Aviation of Vietnam (amended), and submit it to the Prime Minister for consideration and decision on presenting it to the Standing Committee of the National Assembly.

4. The Government discussed the Report on the Implementation of State-Owned Enterprise Restructuring and Reform in the first four months of 2005 and the Tasks and Solutions to Accelerate this Work in 2005-2006, presented by the Steering Committee for Enterprise Reform and Development.

Despite encountering numerous difficulties, overall, the restructuring and reform of state-owned enterprises have been implemented according to the Party's resolutions and the State's regulations with appropriate, solid steps, featuring significant innovations in methods and objects of shareholding. A considerable portion of state-owned enterprises has been restructured reasonably. The state capital at these enterprises after restructuring and shareholding has been preserved and increased. There has been positive progress in enterprise management mechanisms; most state-owned enterprises after being shareholding operate effectively, enhancing their competitive capacity, and improving workers' living standards.

However, up to now, the progress in implementing the restructuring and reform of state-owned enterprises remains slow. Propaganda on shareholding is still limited; some guiding documents for shareholding issued late, leading to incorrect perceptions about shareholding. Some ministries, sectors, and localities have not paid sufficient attention to directing closely; some enterprises have not truly reformed, ensuring transparency in the shareholding process.

To basically complete the restructuring and reform of state-owned enterprises in accordance with the spirit of the Central Committee's resolutions, during 2005-2006, it is necessary to intensify the restructuring, reform, and improve the efficiency of state-owned enterprises towards forming state-owned enterprises with multiple owners, mainly joint-stock companies; narrowing and eventually abolishing the representative ownership function of ministries and provincial people's committees; expanding the scope of shareholding, the State will only retain 100% capital in enterprises operating in fields ensuring national security and defense and providing essential public services; only retaining controlling shares in joint-stock companies operating in macro-regulation and major economic balances.

The Government requests ministries, sectors, and localities to implement more resolutely the approved restructuring and reform plans for state-owned enterprises; intensify propaganda efforts so that all levels, sectors, and the people have correct understanding of the policy and actual developments in the shareholding process of state-owned enterprises; continue strictly implementing the Party's and Government's regulations on the restructuring and reform of state-owned enterprises.

Assign the Ministry of Agriculture and Rural Development to urgently submit to the Prime Minister the plan for restructuring state-owned forestry and agricultural farms.

Assign the Steering Committee for Enterprise Reform and Development to incorporate opinions from the meeting session, supplement additional content to compile the report summarizing four years of implementation of the restructuring and reform of state-owned enterprises, and submit it to the Prime Minister for consideration and report to the Political Bureau.

5. The Government heard the Minister of Planning and Investment's report on the socio-economic situation and production and business turnover, import and export, and investment in April and the first four months of 2005; the Ministry of Trade's report on the domestic market situation and exports in April and the first four months of 2005; the Minister of Transport's report on traffic order and safety in the first four months of 2005; the Government Inspectorate's report on the results of inspections to resolve complaints and denunciations in the first quarter of 2005.

In the first four months of 2005, despite drought and avian influenza outbreaks in many places, the prices of some imported goods and domestic food continued to rise, the economy maintained a relatively high growth rate. Industrial production value, export turnover, total retail sales of goods and services increased significantly; agricultural production, cargo and passenger transport, postal and telecommunications services continued to develop steadily; tourism activities were vibrant. Budget revenue increased, basically ensuring investment development and economic-social development, security, and defense expenditures. Foreign direct investment increased. Education, training, science, technology, culture, information, sports, employment, poverty reduction had notable progress; health care for the people, disease control were emphasized, preventing large-scale epidemics. Traffic accidents decreased significantly in terms of number of incidents, deaths, and injuries.

However, consumer prices in the first four months remained high, traffic accidents continued to be complex; forest fires occurred in many places, illegal logging and resistance against forest rangers performing their duties were not effectively curbed, and there were still many complaints and lawsuits.

To complete the socio-economic development plan for 2005, the Government requires ministries, sectors, and localities to continue focusing intensely on finding solutions to promote production development; pay attention to measures to accelerate economic structure transformation, increase the proportion of service value, and boost exports; proactively repair dykes and flood defenses, prevent typhoons and floods; strengthen market management, prevent sudden price increases, maintain stable consumer goods and service price indices; resolve pending complaints and lawsuits decisively; enhance inspection and supervision, focusing on investment construction, land use, issuance of land use rights certificates, and prominent areas; maintain traffic order and safety and reduce traffic accidents.

Ministries, sectors, and localities must urgently review and report on the implementation of Resolution No. 01/2005/NQ-CP dated January 14, 2005, of the Government on key measures to guide the implementation of the socio-economic plan and state budget for 2005 and the Prime Minister's directives in related documents, send them to the Ministry of Planning and Investment and the Government Office for consolidation and reporting to the Government at the regular meeting in May 2005./.