Directive No. 11/2008/CT-BCT on serving work for the Lunar New Year (Tet) Year of the Metal Ox 2009

DIRECTIVE

Regarding the service work for the Lunar New Year of the Year of the Metal Ox 2009

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In 2008, Vietnam's economy had to face numerous challenges, notably the financial and real estate crisis in the United States spreading widely, prices of many types of raw materials and goods on the world market reaching record highs, causing inflationary pressure to increase in many countries (currently, 50 out of 190 countries are experiencing double-digit inflation), along with complex developments in natural disasters and diseases affecting crops and livestock; domestic market commodity prices increased sharply. The national consumer price index for the first nine months of 2008 rose to 21.87%, and there was a trend towards gradual decline.

Under the resolute guidance of the Government, all ministries, sectors, localities, associations, enterprises, and citizens have been in agreement to cooperate, striving to overcome difficulties, strictly implementing measures to control inflation, thus maintaining a relatively dynamic domestic market, ensuring balance in supply and demand for key commodities, meeting all production and consumption needs of the people. According to the General Statistics Office,the estimated total retail sales of goods and services for the first nine months reached 694.445 billion VND, increasing by 30.1% compared to the same period in 2007. The estimated total retail sales of goods and services for the whole year 2008 reached 967 billion VND, increasing by 31% compared to 2007.

Currently, the situation in the domestic goods and monetary markets has shown many signs of stabilization (prices easing, capital sources increasing with lower interest rates, abundant goods...). However, due to the global economy slowing down (according to the World Bank, the world economy grew by only 2.7% in 2008 compared to 3.7% in 2007); instability in the prices of various raw materials on the world market; complex developments in natural disasters (storms and floods) and diseases affecting crops and livestock; and especially difficulties in business operations for enterprises (high interest rates, high-priced inventory materials...) and a modest increase in social purchasing power (according to the General Statistics Office, if excluding price factors, the total retail sales of goods and service revenue for the first nine months of 2008 only increased by 6% compared to the same period in 2007) could negatively impact the domestic goods market. However, according to economic laws, purchasing power on the market will gradually increase at the end of 2008 and early 2009 due to preparations for raw materials for production, stockpiling goods, and shopping to meet consumption needs, particularly during the Lunar New Year of the Year of the Metal Ox 2009; coupled with the acceleration of investment projects and business operations to complete annual plans; and adjustments such as wage increases, additional allowances for certain groups, year-end bonuses, and a large influx of remittances... will make the goods market lively and bustling in the last months of 2008 and during the Lunar New Year. Although people's living conditions remain difficult and expenditures have adjusted towards thrift due to high commodity prices, according to Vietnamese customs and traditions, it is forecasted that purchasing power for goods during the Lunar New Year of the Year of the Metal Ox 2009 will still increase by about 10-20% compared to the Lunar New Year of the Year of the Rat 2008.

The Government has and will continue to direct ministries, sectors, and localities to strictly implement measures set forth in Resolution No. 10/2008/NQ-CP dated April 17, 2008, and Resolution No. 20/2008/NQ-CP dated August 29, 2008, aimed at controlling inflation, ensuring social welfare, stabilizing macroeconomic conditions, and promoting sustainable economic development. To organize good supply of goods forthe people to celebrate the Lunar New Year of the Year of the Metal Ox 2009 happily, safely, thriftily, and reasonably priced,the Minister of Industry and Trade requests economic groups, corporations, companies, and directors of provincial industry and trade departments to coordinate and strictly implement the following tasks:

1. The Department of Industry and Trade shall take the lead and coordinate with relevant departments and agencies to report to the People's Committee of the locality to instruct the implementation of:

- Proactively coordinating with the Department of Finance to develop a plan for using temporarily idle local government budget funds to provide preferential loans to businesses operating within the locality for essential goods reserves for the Lunar New Year, especially food items; on the principle that businesses participating in Lunar New Year goods reserves must ensure adequate supplies, safe quality to serve the people in the locality at reasonable prices, contributing to market stability during the Lunar New Year.

- Urging and creating favorable conditions for businesses of all economic components within the locality to participate in producing and trading goods for the Lunar New Year (rice, food, candy, cookies, beer, wine, soft drinks, cultural products, means of transportation, ready-to-wear clothing...) to meet all consumption needs of the people during the Lunar New Year of the Year of the Metal Ox 2009 at reasonable prices, safe quality, attractive designs, diverse, and plentiful.

- Closely monitoring and supervising the provision of sufficient electricity for the production and trading of goods for the Lunar New Year and for the people throughout the holiday period. Paying special attention to fire prevention and safety at public places, residential areas, amusement parks, and preparing good contingency plans to maintain stable electricity supply under all circumstances.

- Preparing sufficient essential goods and Lunar New Year consumer goods to supply promptly and adequately to people in mountainous provinces, remote areas, and regions affected by natural disasters at reasonable prices, ensuring that everyone across the country can celebrate the Lunar New Year of the Year of the Metal Ox 2009 happily and warmly.

- Strengthening market management, combating prohibited goods, smuggled goods, counterfeit goods, substandard goods, and other fraudulent commercial practices to protect consumers' rights, create a fair competitive environment, and contribute to market stability. Coordinating with functional agencies to strengthen inspections of food safety and hygiene at production, processing, and trading establishments in commercial centers and markets. Strictly and promptly handling violations according to the law, especially regarding the production and trading of fireworks and foodstuffs not meeting food safety standards...

||| Cooperate with the Department of Culture, Sports and Tourism to organize Spring fairs and healthy entertainment activities safely for the public during the Tet holiday period.

||| 2. Groups, Corporations, and Companies engaged in production and business operations need to focus on:

||| - Ensuring adequate quality raw materials to meet the production schedule, storage, and sales plan for goods serving the Tet holiday (especially processed foods and technological products) to satisfy market demand reasonably without causing shortages or price hikes.

||| - Improving the quality and diversifying the designs of domestically produced goods for the Tet holiday to enhance competitiveness against imported goods, paying attention to consumer habits in different regions and diverse needs of various groups during the Tet holiday to organize production and sales effectively, as well as reasonable pricing to improve service quality and establish each enterprise's brand in the market.

||| - Enterprises responsible for supplying policy goods (firewood oil, iodized salt) must ensure sufficient stockpiles and supply to remote areas and ethnic minority regions before Tet according to plans to meet people's needs.

||| - Encourage enterprises to implement promotional sales policies, reduce prices, and provide post-sales services before and after Tet to better serve consumers.

3. Reporting System:

||| - The Vietnam Electricity Corporation shall submit a report on the power supply plan for Tet before November 5, 2008.

||| - Enterprises involved in producing and selling goods for the Tet holiday shall submit their Tet service plans to the Ministry of Industry and Trade before November 5, 2008.

||| - The Vietnam Oil and Gas Group shall submit a report on the firewood oil supply plan for mountainous provinces before November 5, 2008.

||| - Departments of Industry and Trade shall submit reports to the Ministry according to the above content at the following specific times:

||| + Goods preparation plan for the Tet holiday before November 5, 2008.

||| + Market situation and price trends for goods serving the Tet holiday (first phase before January 10, 2009; second phase before January 20, 2009).

||| - Enterprises and Departments of Industry and Trade shall submit a summary report on Tet service provision before February 5, 2009.

||| The Lunar New Year (Tet) of the Year of the Earth Rat 2009 will arrive early, and the public will have a long Tet holiday, with the first day of Tet falling on January 26, 2009. Any difficulties encountered during implementation should be reported immediately to the Ministry of Industry and Trade (Domestic Market Department - Telephone: 04.2205496 - Fax: 04.2205510 - Email: [email protected]) for timely resolution./.