Decision No. 08/2008/NQ-CP of the Government's regular monthly meeting in March 2008

RESOLUTION

Regular Meeting of the Government in March 2008

During three days, from March 25 to March 27, 2008, the Government convened its regular monthly meeting, discussed and adopted the following issues:

1. The Government heard the Report on major issues arising in the first quarter of 2008 and measures to curb inflation, stabilize politics and society, and maintain economic growth potential, presented by the Minister of Planning and Investment; the Report on industrial production and trade situation in March and the first quarter of 2008, presented by the Minister of Industry and Trade; the Report on early-year agricultural production situation in 2008, presented by the Minister of Agriculture and Rural Development; the Report on market price situation and measures to stabilize prices, presented by the Minister of Finance; the Report on the implementation of monetary, credit policies, and banking activities aimed at curbing inflation in 2008, presented by the Governor of the State Bank of Vietnam.

The Government unanimously recognized that: Entering into the task of economic and social development, we have faced many difficulties right from the beginning of the year. The world economy has shown a trend of slowing growth, the US dollar exchange rate has declined, global prices have risen sharply, indicating signs of global inflation. In the country, the severe consequences of natural disasters from the previous year have not yet been fully resolved, and this year's prolonged cold weather has caused further significant damage to agricultural production and greatly affected people's daily lives due to livestock and crop diseases. To overcome these difficulties, promote production, and stabilize people's living conditions, the Government has directed the strong and synchronized implementation of key solutions outlined in Resolution No. 02/2008/NQ-CP for the execution of the national plan and budget in 2008, focusing on macroeconomic management, curbing price increases, directing production and business development, and investment; while also implementing various support measures for the poor and those facing difficulties. As a result, in the first three months of the year, the country's economy maintained a relatively high growth rate (7.4%), with exports and funds raised for development investment, especially foreign direct investment, continuing to increase. However, the pace of development showed signs of decline, particularly in March 2008. Industrial production and exports decreased compared to the same period last year, inflation rates increased significantly, there was a large trade deficit, stock market indices fell sharply, posing risks to macroeconomic balances. Public opinion generally shows consensus and trust in the Government's leadership and management, but concerns and worries about achieving growth targets, curbing inflation, and ensuring people's livelihoods have emerged.

From the objective and subjective reasons and current realities, and based on forecasts regarding the potential for global and domestic economic growth, the Government assesses that the potential and advantages for economic growth in our country are very large, especially in agriculture, services, and attracting investment. However, our economy is increasingly integrating into the global economy, making it difficult to avoid the repercussions of regional and global economic trends. The Government identifies the key objectives and tasks in guiding and managing current economic and social development as: prioritizing the implementation of measures to curb inflation, stabilize macroeconomics, ensure social welfare; maintaining the country's economic development potentials to prepare for higher growth in future years.

To achieve the set goals and tasks, the Government adopts eight groups of solutions as mentioned in the Report of the Ministry of Planning and Investment. Among them, the focus is on the following issues:

a) Continue to implement a tight monetary policy that is proactive and flexible according to market principles, curb inflation, and contribute to maintaining economic growth.

b) Strive to increase revenue, tighten expenditure, enhance the efficiency of state budget capital utilization, strengthen electricity and fuel conservation; cut non-urgent investment projects; concentrate funds on effective projects.

c) Promote exports, strictly control imports, limit unnecessary consumer goods imports.

d) Relevant ministries and sectors develop and organize the implementation of plans to ensure a stable supply-demand balance for essential goods for production and daily life.

đ) Central agencies, local authorities, industry associations, and enterprises closely coordinate in implementing market management measures, combating speculation, smuggling, and commercial fraud across all areas.

e) Urgently review and remove obstacles to promote industrial, agricultural, and service production development; strengthen disease control, accelerate project progress, and promptly put into operation projects producing important and essential products for production and daily life.

g) Strengthen measures to support the stabilization of people's lives, continue assisting low-income households and the poor to ensure social welfare and the livelihood and production of farmers.

h) Direct information dissemination work to ensure objectivity and truthfulness, creating high consensus among all levels, sectors, localities, and enterprises to implement the set goals, tasks, and solutions to help the economy overcome difficulties and develop steadily.

The Ministry of Planning and Investment is assigned to lead and coordinate with the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, and the State Bank of Vietnam to incorporate the opinions of government members, complete the report for the Government to submit to the Politburo and report to the National Assembly.

2. The Government heard the Report on the settlement of the state budget for 2006, presented by the Minister of Finance; listened to the State Auditor General's report on the results of auditing the state budget for 2006.

The Government has agreed to approve the final budget report for the state budget in 2006. The Ministry of Finance is tasked with incorporating the opinions of the Government members; discussing with the State Audit Office on unresolved issues, and reporting to the Prime Minister to submit to the Standing Committee of the National Assembly.

The Ministry of Finance shall take the lead, in coordination with the Ministry of Planning and Investment, to draft the Prime Minister's Directive on rectifying the implementation of audit results and strictly adhering to fiscal policies, to be submitted to the Prime Minister in April 2008.

3. The Government discussed and provided comments on the draft Law Amending and Supplementing Certain Provisions of the Law on the Vietnam Fatherland Front, prepared by the Central Committee of the Vietnam Fatherland Front and solicited for opinions.

The Government Office is tasked with leading, in coordination with the Ministry of Justice, to incorporate the opinions of the Government members to finalize the Government's report providing comments on the draft Law on the Vietnam Fatherland Front, to be submitted to the Prime Minister for submission to the Central Committee of the Vietnam Fatherland Front and reported to the Standing Committee of the National Assembly.

4. The Government discussed and provided comments on the draft Laws on High Technology; Amending and Supplementing Certain Provisions of the Law on Encouragement of Competition and Rewards; Amending and Supplementing Certain Provisions of the Law on Prevention and Control of Narcotics; Road Traffic Law (Amended); Civil Enforcement Law (Amended); and Vietnamese Citizenship Law (Amended).

The Ministers of Science and Technology, Home Affairs, Public Security, Transport, and Justice are tasked with leading, in coordination with relevant agencies, to incorporate the opinions of the Government members, to finalize the draft Laws, and to submit them to the Standing Committee of the National Assembly through the authority of the Prime Minister.

5. Regarding the draft Law on the State Bank of Vietnam (Amended) and the draft Law on Credit Organizations (Amended), the Government agrees that from now until 2010, the current model of the State Bank of Vietnam should be maintained to fulfill both regulatory functions and central bank functions. Therefore, in the short term, the amendment of the Law on the State Bank of Vietnam should focus on two aspects: amending provisions to align with Vietnam's commitments to the World Trade Organization (WTO) and provisions that, if not amended, would hinder the State Bank of Vietnam from effectively performing its duties.

The State Bank of Vietnam is tasked with incorporating the opinions of the Government members, to finalize the amendments to the draft Law on the State Bank of Vietnam and the Law on Credit Organizations according to the above plan, to be submitted to the Prime Minister for review and to solicit opinions from the Government members before reporting to the Standing Committee of the National Assembly. Simultaneously, the State Bank of Vietnam is tasked with leading the research and drafting of the Law on the Central Bank in accordance with the development direction of the banking industry until 2020, in line with the spirit of the Political Bureau's conclusions and Decision No. 112/2006/QĐ-TTg of the Prime Minister.

6. The Government discussed and provided comments on the draft Decree on Policies to Encourage Socialization, and listened to the report on the review of the draft Decree by the Minister and Head of the Government Office.

In recent years, policies encouraging the development of non-state service-providing institutions have had the effect of mobilizing social resources to develop non-state service-providing institutions, meeting part of the increasingly diverse and high demands of all strata of the population; contributing positively to economic and social development. Alongside the achievements, during the implementation process, some difficulties have emerged that need to be addressed and clarified. Future policies to encourage socialization must create incentives and promote stronger socialization, attracting domestic and foreign investments to meet society's needs with higher quality and quantity; at the same time, addressing the issues related to the scope of regulation, criteria for types, scale, and service quality standards...

The Ministry of Finance is tasked with leading, in coordination with the Government Office, the Ministry of Justice, and relevant agencies, to incorporate the opinions of the Government members, to finalize the draft Decree to be signed and issued by the Prime Minister.

Ministries are tasked with promptly developing a list of types and criteria regarding scale, quality, and standards for institutions eligible for preferential treatment under the national policy to encourage socialization, to be sent to the Ministry of Finance for consolidation and submission for issuance concurrently with this Decree.

7. The Government has agreed to implement fees for the exploitation of surveying and mapping materials.

The Ministry of Finance is tasked with leading, in coordination with the Ministry of Natural Resources and Environment, to provide detailed guidance on the fee collection rates and management and utilization of collected fees in accordance with current laws on fees and charges.

8. The Government has agreed to approve the Report on the Implementation of Administrative Reform in March 2008, presented by the Ministry of Home Affairs; and the Report on the Implementation of Programs and Resolutions of the Government from the February 2008 session, presented by the Government Office.

The Government requires ministries and agencies to thoroughly review their work programs, timely adjust and supplement the annual program for 2008, and concretize it into quarterly and monthly programs ensuring feasibility in accordance with the Government's Working Regulations; urgently complete draft Decrees stipulating the functions, powers, and organizational structures of ministries and agencies to be signed and issued by the Prime Minister in April 2008; particularly, promptly complete the drafting of Decrees guiding the implementation of enacted Laws effective from July 1, 2008./.