Decision No. 08/2004/NQ-CP On further promoting decentralization in state management between the Government and provincial and municipal authorities directly under the central government

RESOLUTION

On further promoting decentralization in state management between

the Government and provincial-level administrative authorities

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The process of national renewal, the development of a socialist-oriented market economy, and the trend towards openness and international integration create premises and requirements for reforming and strengthening decentralization in state management between the central level and localities to fully leverage the dynamism, creativity, autonomy, and responsibility of local administrative authorities at all levels in managing and implementing socio-economic development tasks within their jurisdictions.

To accelerate administrative reform and meet the current socio-economic development needs of the country, it is necessary to further promote decentralization in state management between the central and local levels, focusing on decentralizing tasks, authorities, and responsibilities between the Government and provincial-level administrative authorities (hereinafter referred to as provinces) in key areas such as planning and investment development management; state budget; land, natural resources; state-owned enterprises; public service activities; organizational structure, cadres, and civil servants. Based on this, to continue decentralizing state management among local administrative authorities at various levels (provinces - districts - communes).

I. CURRENT SITUATION OF DECENTRALIZATION BETWEEN THE GOVERNMENT AND PROVINCIAL AUTHORITIES

Adhering to the Party's and State's viewpoints and policies on decentralization, over the past years, the Government has taken many positive and specific measures to reform and strengthen decentralization in state management between the central and local levels. People's Councils and People's Committees at all levels have been granted additional authority and responsibility in deciding local socio-economic development plans and projects; allocating and managing local budgets; managing land, natural resources, and state-owned enterprises; managing public services and deciding certain issues related to organizational structures and cadres. From piloting increased decentralization to Hanoi and Ho Chi Minh City in several fields, valuable lessons have been drawn to further promote decentralization in state management between the Government and provincial authorities.

Achievements in decentralization over recent years have leveraged the proactiveness and creativity of local authorities; utilized resources to enhance the effectiveness of state management, promote socio-economic development at the local level, and better serve the needs of organizations and the interests of the people.

However, the process of reforming decentralization in state management between the Government and local administrative authorities at all levels has not yet met the urgent demands of reality, with many limitations and inconsistencies:

- Decentralization has not ensured unified management, showing signs of dispersion and parochialism; administrative discipline and rules are not strict enough; there is insufficient attention given to supervising and inspecting matters delegated to localities.

- Responsibilities, authorities, and duties of each level of government in performing state management functions, providing public services, and representing state ownership over state economic organizations and assets have not been clearly defined. Responsibilities of each level, collective bodies, and individuals for tasks delegated have not been clearly established.

- Tasks have been decentralized to lower levels without ensuring corresponding conditions for implementation; there is a lack of coordination and synchronization among relevant sectors and fields, failing to provide practical conditions for localities to balance their resources and specific needs.

- Some contents of decentralization prescribed by law have not been promptly implemented or thoroughly carried out. Additionally, current decentralization regulations do not align well with the realities of different regions and territories, failing to distinguish differences between urban and rural areas.

These limitations and inconsistencies arise from various reasons, but mainly due to unclear, inconsistent understanding and viewpoints regarding policies and measures for decentralization between the Government and provincial authorities, concerns about strong decentralization leading to parochialism and fragmentation. In organizational guidance, there is a lack of determination and boldness in building, issuing systems and policies, and organizing implementation; insufficient focus on summarizing, evaluating, and learning from experiences. The legal system lacks coherence, failing to meet the requirements of socio-economic development under new circumstances.

II. OBJECTIVES AND VIEWPOINTS ON DECENTRALIZATION

1. Objectives

Further promoting decentralization in state management between the Government and provincial authorities, and among local administrative authorities at various levels to fully leverage the dynamism, creativity, autonomy, and responsibility of local authorities based on clearly defining the tasks, powers, and responsibilities of each level within the state administrative machinery, ensuring centralized and unified management by the Government, enhancing administrative discipline to improve the effectiveness of state management and better serve the needs and interests of the people, and promoting socio-economic development in each locality under the transition to a socialist-oriented market economy.

2. Viewpoints and Principles

a) Adhering to the viewpoint that state power is unified, ensuring the Government's unified management over systems, policies, strategies, planning, supervision, and inspection, while promoting the autonomy and responsibility of provincial authorities in implementing state management tasks within their jurisdictions as prescribed by law.

b) Adhering to the principle of closely combining sectoral management with territorial management, clearly defining the state management tasks of ministries and sectors versus those of provincial authorities for economic and social activities within territorial boundaries.

c) Ensure the principle of efficiency, assigning tasks to the level that is closer to reality, capable of resolving issues promptly, and better serving the needs of organizations and the people; decentralization must clearly define tasks, locations, responsibilities, and be linked to the functions and duties of each level.

d) Must be appropriate to the level of economic and social development at each stage, the specific characteristics of industries and fields, the conditions and potential for development of each region and territorial area, urban and rural types, and trends towards regional and international integration.

đ) Must ensure a corresponding relationship between tasks, authority, responsibility, and financial resources, organizational structures, personnel, and other necessary conditions; must be synchronized and coordinated among related industries and fields.

e) Ensure the rights and fully implement the responsibilities of the People's Councils, People's Committees, and Chairpersons of the People's Committees at the provincial level in making decisions and implementing tasks assigned through decentralization; strictly enforce administrative discipline and rules; while promoting broad democracy to allow the people to participate in state management.

g) Decentralization must reflect consistency and unity within the institutional system, regulatory documents, tied with institutional reform and ensuring autonomy and self-responsibility of grassroots units.

h) For issues already decentralized, the provincial-level government is responsible for organizing and implementing them; central ministries and sectors have the responsibility to monitor, guide, and inspect, and if violations of laws or contraventions of industry and field development plans and programs are found, they shall handle according to their authority or report to the Prime Minister for consideration.

III. MAJOR DIRECTIONS

1. Decentralization in planning, program, and investment development management

a) Regarding decentralization in planning and development program management

The Government uniformly manages planning work nationwide. The Government and the Prime Minister directly decide on national-level planning, including: overall socio-economic development planning for the country, provinces, and centrally-administered cities; strategic important infrastructure project planning; overall industry and economic zone development planning; general urban construction planning (from Class II upwards); industrial park and high-tech zone development planning. Industry-managing ministries coordinate with the Ministry of Planning and Investment to develop industry development planning, submitting it to the Prime Minister for approval. The Minister of the industry-managing ministry decides on detailed internal industry and field development planning according to the Government's assignment.

Based on the overall national, industry, and economic zone planning, the Chairman of the Provincial People's Committee develops local-level planning, including: socio-economic development planning for the province, sub-regional territories within the province, and subordinate administrative units; detailed industry development planning within the locality; urban construction planning (from Class III downwards) and rural development planning of the province, submitting it to the same-level People's Council for approval before deciding.

Five-year and annual socio-economic development plans at each level are decided by that level. The Government formulates and submits the national socio-economic development plan to the National Assembly for decision; the Provincial People's Committee formulates and submits the socio-economic development plan for the locality to the same-level People's Council for decision.

b) Regarding decentralization in investment management

Depending on the nature, scope of activities, investment sector, scale, and source of investment funds, specific decentralization is implemented without being bound by Group A, B, or C, nor applying the delegation mechanism from higher levels to lower levels. The provincial-level government has the right to decide on investment projects funded by local budgets and issue permits for foreign-invested projects suitable to the level of economic and social development and management capacity of the locality.

2. Decentralization in state budget management

Clearly define the rights and responsibilities of managing and using the state budget at each level. The Government operates the central budget approved by the National Assembly. The Provincial People's Committee prepares the local budget draft, adjusts, allocates, and settles accounts, submitting it to the same-level People's Council for approval. Based on the People's Council Resolution, the Provincial People's Committee decides certain expenditure standards and regulations, fees, and contributions from the people in accordance with the specific characteristics and conditions of the locality, provided they do not contravene the law.

Adjust the sources of revenue and increase the proportion left for localities in such a way that provinces and centrally-administered cities achieve the average level of national development and can self-balance their regular expenditures according to the government's standards.

3. Decentralization of land management, natural resources, and state assets

Clearly define the rights and responsibilities of state management and representation of state ownership at each level regarding land and natural resources as follows:

The Government shall uniformly manage the state's affairs concerning land nationwide, decide on land planning and usage plans at the provincial level. Local authorities at all levels shall directly organize and implement specific tasks related to state management of land and natural resources within their jurisdiction (except where the Government has special provisions); they shall be responsible for monitoring changes in land and inspecting and supervising land usage within their jurisdiction.

Provincial People's Committees shall establish land planning, decide on land usage plans; determine land allocation quotas, land leasing, land recovery, and changes in land usage purposes based on approved land planning and usage plans by the Government; set specific land prices within the framework of land price categories prescribed by the Government.

Clearly define the management and usage rights of assets at each level (linked with responsibility), thereby distinguishing between national-level assets, provincial-level assets, district-level assets, and commune-level assets. Assets at each level shall be decided upon and managed, used, and disposed of by that level according to the law.

4. Decentralization of state-owned enterprise management

Clearly define the rights and responsibilities of state management and representation of state ownership at each level of government towards state-owned enterprises depending on the scale, characteristics, nature, and importance of each type of state-owned enterprise.

The Government shall uniformly manage the system, policies, create a favorable environment, and decide on support measures when necessary for state-owned enterprises and other economic organizations. Provincial governments shall decide on the restructuring of state-owned enterprises under their direct management according to overall plans approved by the Prime Minister; exercise the right of state ownership representation over state-owned enterprises under their jurisdiction.

The Prime Minister shall approve proposals for establishing state companies and state-owned enterprises; decide on the establishment of state holding companies and particularly important enterprises; the Chairman of the Provincial People's Committee shall decide on the establishment of the remaining types of state-owned enterprises.

Reform the organizational structure and operations of state-owned enterprise governance to align with capital contribution structures and state ownership representation, ensuring full autonomy and responsibility of the Board of Directors, General Manager, or Director for enterprises without a Board of Directors, and must have an effective supervisory structure.

5. Decentralization of management of public services and activities

The Government shall uniformly manage the strategy, planning, systems, policies, and inspection of public service and activity operations; direct ministries and sectors to organize the provision of essential and important public services nationwide and those that local authorities lack the capacity and conditions to implement.

Delegate to provincial authorities the decision-making power:

- On the network organization planning, establishment, and management of public service units on the local territory such as education, healthcare, science and technology, culture, sports, public utility sanitation, environmental services, clean water... and production-related services (agricultural promotion, forestry promotion, fishery promotion, industry promotion...);

- Specific policies and measures to encourage the development and promote socialization of public services and activities in fields like education, healthcare, science and technology, culture, sports... to better meet the needs of local residents. Implement the mechanism of autonomy and responsibility of public service organizations and units regarding planning, finance, personnel, organization, and cadres.

Transfer to provincial authorities direct management of public service units currently managed by ministries and sectors, except for some specialized public service units that are complex, important, and beyond the capacity and conditions of local authorities to manage.

Urban authorities shall be responsible for managing public services in urban areas; directly carry out investment, construction, exploitation, use, maintenance, and inspection activities according to approved plans and programs; ensure traffic safety and environmental hygiene...; decide on policies to encourage the development of technical infrastructure and various forms of public passenger transport services within their jurisdiction.

6. Decentralization of management of organizational structures and civil servants.

Based on the framework regulations of the Government, provincial authorities shall decide on the establishment, merger, dissolution of specialized agencies of the provincial People's Committee (excluding certain specialized agencies regulated uniformly by the Government) and specialized agencies of the district People's Committee, in accordance with the specific circumstances and characteristics of each locality; decide on adjustments to specific tasks among provincial departments, sectors, and districts (not basic or main tasks according to the functions of each specialized agency).

Based on staffing standards and criteria prescribed by the Government, provincial authorities shall determine the total administrative staffing of the locality to be submitted to the Government for approval; decide on the total public service staffing of the province; decide on the allocation of staffing quotas for administrative officials and civil servants to each agency and unit under the province and district People's Committee; decide on specific incentives and attraction mechanisms for high-level talent and human resources to work in the locality; decide on the number of dedicated cadres and civil servants under the commune People's Committee according to the Government's framework; decide on the number and level of allowances for non-dedicated cadres at the commune level suitable to the characteristics, nature, and budget capacity of each locality.

On the basis of job requirements, position standards, and cadre procedures, the Chairman of the People's Committee at the provincial level decides on the appointment, dismissal, removal, and demotion of heads of specialized agencies under the People's Committee and public institutions at the provincial level without needing to consult relevant ministries and sectors.

IV. IMPLEMENTATION

1. The Chairmen of the People's Committees of provinces and centrally governed cities are responsible before the Government and the Prime Minister for matters delegated to their management.

2. Ministries, ministerial-level agencies, and government agencies shall review current legal documents, compare them with this Resolution, specifically identify matters that need to continue to be decentralized to local authorities; matters that have been decentralized according to the law but not implemented or poorly implemented, and matters requiring amendments to existing laws and ordinances, and submit these to the Ministry of Home Affairs for consolidation and submission to the Government and the Prime Minister for consideration and decision.

Implementation period: third quarter of 2004.

3. The Ministry of Home Affairs shall cooperate with the Ministry of Justice and the Office of the Government to propose contents requiring amendments to laws and ordinances, report to the Government to request the National Assembly and the Standing Committee of the National Assembly to amend and supplement related laws and ordinances.

Implementation period: third quarter of 2004.

4. Based on the guidance of the Ministry of Home Affairs, ministries, ministerial-level agencies, and government agencies shall concretize the Resolution, draft decrees on decentralization within their sectors and fields for submission to the Government for promulgation, and issue legal documents within their authority to implement the tasks decentralized by law.

Implementation period: from now until the end of the fourth quarter of 2004.

5. Ministries, ministerial-level agencies, and government agencies shall take the lead and coordinate with the Ministry of Home Affairs to guide provincial People's Committees in organizing and implementing decrees on decentralization of state management between levels of local government.

Implementation period: first quarter of 2005.

6. The Government Administrative Reform Steering Committee, the Office of the Government, and the Ministry of Home Affairs shall assist the Government in directing and inspecting the implementation of this Resolution. They shall promptly propose solutions to address difficulties encountered during the decentralization process. By the end of 2005, they shall conduct a summary of the implementation of the Resolution.