Decision No. 12/2003/NQ-CP of the Government at the regular meeting in September 2003

RESOLUTION

Regular Meeting of the Government in September 2003

On September 29 and 30, 2003, the Government convened its regular meeting for September to discuss and adopt the following issues:

1. The Government heard the Minister of Finance's report on the implementation of the state budget tasks in 2003 and the allocation of the 2004 state budget draft; listened to the Minister of Planning and Investment's report on the assessment of the implementation of development investment in 2003 and the forecast plan for 2004.

The Government noted that despite the slow recovery of the world economy and many difficulties, Vietnam's economy maintained a relatively high growth rate in the first nine months of 2003, with the potential to achieve and exceed most of the targets set for the year 2003. However, the scale of the economy remains small, the quality of growth and the level of accumulation are low, production costs are high, although revenue has increased significantly, sustainability is still not high. Smuggling and tax evasion in some areas remain serious, severely limiting the state budget revenue. The organization and implementation of the state budget are weak: A typical example is the scattered allocation of investment budgets; large construction debts; wasteful use of the budget causing losses and low efficiency...

Reports on the allocation of the state budget and the development investment plan for 2004 closely follow the provisions of the State Budget Law, reflecting a positive spirit, focusing on investment for development, improving the quality of growth, increasing production capacity and competitiveness of the economy; reasonably allocating expenditures for various fields and localities; prioritizing important tasks for economic and social development, adequately investing in social sectors and salary reform; emphasizing important transportation and water conservancy projects, rural infrastructure, mountainous areas, coastal plains, and islands. To implement the state budget tasks and the development investment plan for 2004, the Government requires all Ministries, sectors, and localities to find every possible solution to boost production, improve investment efficiency, increase revenue, implement budget spending according to policy and regulations, and combat corruption and waste.

The Ministry of Finance and the Ministry of Planning and Investment are tasked to lead, coordinate with the Government Office and related agencies, incorporate the opinions of Government members and attendees, perfect the aforementioned reports, and submit them to the Politburo for review before presenting to the National Assembly, Session XI, Fourth Meeting.

2. The Government heard the Minister of Planning and Investment's draft Decree on planning work; listened to the Minister and Director of the Government Office's report on the differing opinions regarding the content of this draft Decree.

Building and managing economic and social development plans, industry-specific and territorial development plans are among the top state management functions of the Government, Ministries, sectors, and localities in fulfilling economic and social development tasks and ensuring national defense and security. This is also an area with many urgent issues requiring timely attention and resolution. The success and shortcomings of planning work directly affect the economic outcomes, thus, planning and forecasting must be clear, long-term, and synchronized; it is essential to prevent spontaneous or uncontrolled investments that are inefficient and non-compliant with planning. In addition to defining the main scope of this Decree as comprehensive planning for economic and social development without detailing specific industries or fields, the draft Decree must pay particular attention to approval authority, clarify responsibilities in planning management, and strictly handle violations.

The Ministry of Planning and Investment is tasked to lead, coordinate with the Government Office and related agencies, incorporate the opinions of Government members and attendees, perfect the draft Decree on economic and social development planning; continue soliciting opinions from Government members, and submit to the Prime Minister for consideration and decision.

3. The Government heard the Minister of Justice's report on the initial results of reviewing and comparing World Trade Organization (WTO) Agreements with current Vietnamese laws.

The development of the country and integration into the international economy require the legal system and policies of our country to align with obligations stipulated in WTO Agreements and other international commitments. Therefore, the review and comparison of WTO Agreements with current Vietnamese laws must ensure the comprehensiveness, synchronization, and consistency of the legal normative documents; have high feasibility, be consistent with legislative conditions in our country, closely follow the National Assembly's Program for Lawmaking in Session XI, and be aligned with judicial reforms and institutional reforms.

The Ministry of Justice is tasked to lead, coordinate with the Government Office and related agencies, incorporate the opinions of Government members, continue to thoroughly review legal normative documents, especially those related to administrative procedures; urgently develop a roadmap for amending, supplementing, and issuing new legal normative documents to align with WTO member obligations, prioritize issues that are mandatory for WTO accession and those that are clear and beneficial to the country. Ministries and sectors must strengthen their legal institutions, enhance the function of legal document review, ensure that newly issued documents comply with WTO provisions and other international commitments but do not conflict with legitimate rights of Vietnam; while enhancing training and capacity building for staff with deep knowledge of economic and international trade law to directly engage in international economic integration work.

4. The Government has heard the Minister of Interior present the draft Decree on the organization, operation, and policy towards voluntary youth; heard the Minister, Head of the Government Office report on the consolidated opinions of Government members regarding the draft Decree.

Voluntary youth is an important force that, together with the military and civilian fireline workers, achieved many feats during the two great national resistance wars. Today, in the cause of industrialization and modernization of the country, voluntary youth are playing a pioneering and exemplary role in production, construction, and national defense, always present in difficult and harsh places, successfully completing all tasks assigned by the Party and State.

The Government and Ministries have always paid attention and issued many documents on policies for voluntary youth. However, the implementation process of these documents still reveals some difficulties and obstacles, especially in organizational mechanisms, management, and specific policy application. Therefore, it is necessary to study and summarize the organization, operation, and policy towards voluntary youth, aiming to continue to promote the role and effectiveness of this force in the period of national renewal.

Entrust the Ministry of Interior to take the lead, coordinate with the National Committee for Youth of Vietnam and relevant Ministries, agencies, and mass organizations, absorb the opinions of Government members, continue to research the organizational model, management mechanism, and activities of voluntary youth suitable for the conditions of a peaceful country and a socialist-oriented market economy, submit to the Prime Minister for consideration and decision.

5. The Government has heard the Minister of Finance present the draft Ordinance on National Reserve Fund; heard the Minister, Head of the Government Office report on the consolidated opinions of Government members regarding the draft Ordinance.

The National Reserve Fund is a strategic reserve force of the State, meeting the requirements for prevention and mitigation of natural disasters, enemy threats, ensuring national defense and security, contributing to economic and social development and stabilizing people's lives. In recent years, our State has attached great importance to managing the National Reserve Fund, issuing many legal normative documents regulating the activities of the National Reserve Fund, creating a new management mechanism for this activity in line with a socialist-oriented market economy, saving state budget, enhancing the responsibility of organizations and individuals in managing and protecting National Reserve Fund assets, bringing the activities of the National Reserve Fund gradually into discipline and routine.

However, the management and operation of the National Reserve Fund in recent times have not met the requirements of the new situation, especially in terms of mechanisms and policies. Regulations on price management, purchase, sale, export, and import of National Reserve Fund goods are incomplete; the total level of reserves remains low. The management machinery of the National Reserve Fund is cumbersome, and its operations are less effective...

The above situation requires the establishment and issuance of the Ordinance on National Reserve Fund to ensure centralized, unified, and timely management of the National Reserve Fund in all situations; considering the National Reserve Fund as a macroeconomic tool of the State, contributing to economic and social stability and development.

Entrust the Ministry of Finance to take the lead, coordinate with the Ministry of Justice, the Government Office, and related agencies, absorb the opinions of Government members, complete the draft Ordinance on National Reserve Fund; entrust the Minister of Finance, acting on behalf of the Prime Minister, to submit the draft Ordinance to the Standing Committee of the National Assembly.

6. The Government has reviewed the Report on the Implementation of the Plan for Economic and Social Development in September and the first nine months of 2003 presented by the Ministry of Planning and Investment.

The economic and social situation in September and the first nine months continued to develop positively. Industrial production grew strongly, the service sector maintained a relatively high growth rate; agriculture continued to develop, despite some localities being affected by localized natural disasters; exports maintained a high pace, import surplus showed a declining trend; mobilization and utilization of investment capital increased significantly; state budget revenue increased, market prices were generally stable. All social sectors showed positive changes.

Current prominent difficulties include: significant damage to agricultural production caused by floods and droughts in some localities; disbursement of ODA funds was low; investment from state credit sources decreased compared to the same period; outstanding construction debts from state budget sources remain very large; expanding export markets and attracting foreign direct investment still face many difficulties...

The Government requests Ministries, sectors, localities, and enterprises to implement well the development measures for the economy and society issued at the beginning of the year, striving to complete the 2003 plan tasks well; focus on organizing the issuance of government bonds for investment in important transportation and water conservancy projects of the country; find every means to boost exports; review the tax revenue capacity, identify excess revenues to address current urgent needs; urgently review construction debts to resolve this issue decisively./.