Decision No. 11/2003/NQ-CP of the Government's regular meeting in August 2003

RESOLUTION

Resolution of the Regular Meeting of the Government in August 2003

During two days, August 28 and 29, 2003, the Government convened its regular meeting for August to discuss and adopt the following issues:

1. The Government heard the Minister of Planning and Investment's report on the plan for economic and social development in 2004 and the situation of economic and social affairs in August and the first eight months of 2003; the Minister of Finance's report evaluating the implementation of state budget tasks in 2003 and the draft state budget for 2004.

The Government assesses that during the first eight months of 2003, despite many difficulties, the economy maintained a relatively high growth rate. With continued efforts in the remaining months, we have the potential to achieve and exceed most of the targets set for 2003. State budget revenue increased, and there were positive changes in the structure of budget expenditure. The economic structure has shown clear signs of transformation, with exports continuing to grow at a high rate. Resources mobilized for investment in development reached a satisfactory level, with investment directed towards promoting structural transformation in the economy; infrastructure for economic and social development gradually improved. All social sectors made progress, with significant achievements in education and training, poverty reduction, and healthcare. Notably, the SARS epidemic was successfully contained and controlled; traffic congestion and accidents decreased; preparations for the 22nd Southeast Asian Games were on schedule. National defense and security were consolidated, public order and safety were maintained, creating a favorable environment for investment, production, and business operations.

Despite these important achievements, the economic growth rate (GDP) in 2003 may meet the planned target but still falls short of the growth goal set for the 2001-2005 five-year plan. The quality of development remains low and unsustainable, the competitiveness of goods is still weak, some areas of investment are inefficient, arrears in construction capital are widespread, wastage, loss, and corruption remain prevalent. Administrative reform progresses slowly, the implementation of new financial management mechanisms for units with income and administrative cost allocation in many ministries, sectors, and localities does not meet requirements. Some social issues remain very pressing, particularly the quality of education, employment, and social vices.

To complete the goals set out in the Ninth National Party Congress Resolution and the remaining tasks of the 2001-2005 five-year plan, ministries, sectors, and localities need to promote proactive and creative spirit, focusing on implementing measures for rapid and sustainable economic development, especially reducing production costs, improving investment efficiency, and enhancing the competitiveness of the economy; innovating financial mobilization policies, increasing revenue sources, creating competitive advantages for enterprises, ensuring sufficient budget resources to fulfill the country's important tasks, increasing savings, maintaining macroeconomic stability under all circumstances; accelerating the process of international economic integration; continuing to reduce poverty and improve people's living standards; making breakthroughs in administrative reform, with a focus on institutional and procedural reforms. Strengthening measures to prevent natural disasters; successfully implementing the new school year and concentrating efforts to organize the 22nd Southeast Asian Games at the end of the year.

The Ministry of Planning and Investment and the Ministry of Finance are tasked with leading, coordinating with the Government Office and relevant agencies, incorporating the opinions of government members and attendees, refining the reports, and on this basis, proposing specific plans for allocating construction investment capital and the state budget for 2004 to ministries, sectors, and localities, preparing to submit to the Government at the regular meeting in September 2003 and reporting to the National Assembly at a later time.

2. The Government heard the Minister of Home Affairs' presentation on the Project for Delegation of Management Authority between Central and Local Governments and the draft Resolution of the Government on further promoting delegation of management authority between Central and Local Governments.

Delegating management authority between the central and local governments is a major policy of the Government aimed at enhancing the effectiveness of state management. In recent times, the Government has delegated authority to local authorities regarding decision-making powers over planning, economic and social development programs, investment projects, budget allocation and management at the local level... This delegation has yielded initial results: it has promoted the initiative, creativity, autonomy, and responsibility of local authorities, better utilized resources, and spurred economic and social development. The requirement for an effective administrative apparatus necessitates addressing the issue of delegating management authority between the Government and provincial-level administrations fundamentally and systematically, based on unified state power but with reasonable division and delegation, ensuring centralized guidance and management by the Government and Prime Minister while also promoting local autonomy and responsibility; closely combining sectoral and territorial management; strengthening delegation while enhancing management and operational capacity, linking authority with responsibility.

The Ministry of Home Affairs is tasked with leading, coordinating with the Government's Administrative Reform Steering Committee, the Government Office, and relevant agencies to incorporate the opinions of government members, refine the project and the draft Resolution of the Government on further promoting delegation of management authority between the Government and provincial-level administrations, and submit it to the Government for consideration at another session.

3. The Government heard the Governor of the State Bank of Vietnam's presentation on the Draft Law Amending and Supplementing Certain Provisions of the Law on Credit Organizations; the Chairman of the Government Office reported on the synthesis of government member opinions on the draft law.

After five years of implementation, the Law on Credit Institutions has created an important legal basis for consolidating and developing the system of credit institutions, contributing to economic stability and growth; creating a healthy and equal business environment for credit institutions, enhancing their autonomy and responsibility. However, up to now, the Law has revealed many unreasonable points: many provisions have not been clear enough between state management functions and business operations, between state incentives in credit activities and the business autonomy and responsibility of credit institutions; some provisions of the Law are not in line with current administrative reform requirements, causing inconvenience and delaying business opportunities for enterprises and citizens; some contents of the Law are not consistent with international practices and the process of international economic integration.

The Law on Credit Institutions needs to be amended to meet the requirements of mobilizing capital for the economy, accelerating the restructuring of the economic structure; removing obstacles hindering the operation of credit institutions; providing a legal basis for changing the method of state management over monetary activities and building a modern banking system according to international practices and standards, meeting the requirements of international economic integration; ensuring consistency and synchronization with related Laws.

The State Bank of Vietnam is assigned to take the lead, coordinate with the Ministry of Justice, the Government Office, and relevant agencies, incorporate opinions from government members, complete the draft Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions; the Governor of the State Bank of Vietnam, authorized by the Prime Minister, will represent the Government to submit this draft Law to the Standing Committee of the National Assembly.

4. The Government listens to the Minister of Agriculture and Rural Development's presentation on the draft Ordinance on Animal Health (amended); the Minister, Head of the Government Office reports the consolidated opinions of government members on the draft Ordinance.

The 1993 Ordinance on Animal Health was promulgated based on summarizing and selecting from the practical implementation of previous animal health regulatory documents, contributing to strengthening the effectiveness of state management, restoring order in the production and business of veterinary drugs, animal slaughter, ensuring food safety, improving disease prevention and control effectiveness, and expanding international trade in animals and animal products.

However, up to now, some provisions of the Ordinance are no longer in line with those of related Laws and Ordinances; the livestock industry is increasingly developing, requiring further enhancement of state management measures on animal health and coordination of state management responsibilities among sectors and levels to avoid overlapping and missing tasks; the animal health system also needs to be reformed and improved.

The amendment of the Ordinance on Animal Health must adhere to the viewpoint of protecting and developing animals, protecting human health and the environment, enhancing the effectiveness of preventive and containment measures against disease spread; strengthening the effectiveness of state management on animal health, clearly defining the responsibilities of competent authorities to be consistent with the country's socio-economic conditions while meeting the requirements of economic integration.

The Ministry of Agriculture and Rural Development is assigned to take the lead, coordinate with the Ministry of Justice, the Government Office, and relevant agencies, incorporate opinions from government members, complete the draft Ordinance on Animal Health (amended); the Minister of Agriculture and Rural Development, authorized by the Prime Minister, will submit this draft Ordinance to the Standing Committee of the National Assembly.

5. The Government has reviewed the Program on Legislative Construction of the Government in 2004 presented by the Ministry of Justice. The Ministry of Justice is assigned to take the lead, coordinate with the Government Office, seek opinions from government members, consolidate and complete the Program, report to the Prime Minister for consideration and decision to submit to the Standing Committee of the National Assembly.