Decision No. 12/NQ-CP of the Government's regular monthly meeting in March 2009

RESOLUTION

The regular monthly meeting of the Government for March 2009

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From March 30 to April 1, 2009, the Government held its regular monthly meeting for March 2009. In addition to the regular attendees, the Government invited the Chairpersons of the People's Committees of the provinces and centrally governed cities to participate in discussions on economic and social management issues via a video conference system connecting all 63 provinces and cities nationwide. At this meeting, the Government discussed and adopted the following matters:

1. The Government discussed the reports: Supplemental report on the situation of the economy and society in 2008 and implementation of the plan for socio-economic development in 2009; Report on the implementation of urgent measures to prevent economic decline, maintain growth, and ensure social welfare as per Resolution No. 30/2008/NQ-CP; Report on the budget balance plan for the state budget in 2009 and some financial-budgetary measures to prevent economic decline and ensure social welfare presented by the Minister of Planning and Investment and the Minister of Finance.

a) Regarding the supplementary assessment of the situation of the economy and society and the implementation of the state budget in 2008.

The situation of the economy and society in 2008 was marked by many difficulties. Inflation rose sharply, the financial and credit crisis, and the global economic recession directly impacted the domestic economy. However, with the efforts of the entire Party, people, business community, consensus, and high determination of the political system from central to local levels, Vietnam's economy still achieved a growth rate of 6.2%, although lower than previous years, it was still a relatively good level; inflation was contained, macroeconomic fundamentals were basically stable; social welfare received special attention and was implemented effectively. Education and training, healthcare, culture, information, science and technology, and environmental protection were given more focus. Administrative reform was accelerated. Anti-corruption work, thrift, and waste prevention showed positive changes. National defense and security were maintained, and political and social stability was ensured.

Compared to the plan approved by the National Assembly at the fourth session of the twelfth National Assembly, 16 out of 25 indicators met or exceeded the targets set, while 9 out of 25 indicators did not meet the targets; among which, several indicators performed quite well such as: total social investment, consumer price index increase, number of localities achieving the standard of the universal secondary education program, new admissions to vocational colleges and technical schools, state budget revenue.

b) The situation of the economy and society in the first quarter of 2009 and guidance measures for the near future.

Entering 2009, the world economy continued to decline and was unlikely to recover soon, continuing to have a significant negative impact on Vietnam's economy. In the first quarter of 2009, the growth rate of gross domestic product only reached 3.1%, the lowest level in many years; exports increased by only 2.4%; industry grew by 2.1%; foreign tourist arrivals decreased by 16.1% compared to the same period in 2008; foreign direct investment slowed down,... However, with the vigorous and synchronized implementation of urgent measures to counter economic decline as outlined in Resolution No. 30/2008/NQ-CP, there were positive signs of improvement in the economic situation: maintaining a growth rate of 3.1% under very difficult conditions; macroeconomic fundamentals remained stable, interest rates and exchange rates were flexibly managed in line with market signals, inflation was further contained; balances were maintained, import surplus was controlled; agricultural production developed favorably across all fronts; industrial and construction production gradually increased in February and March; service sector growth was higher than that of agriculture and industry. Social welfare was strengthened. National defense and security were maintained. Anti-corruption work and administrative reform continued to show positive progress...

These positive results will serve as a foundation for higher growth rates in the remaining quarters of 2009. The Government has agreed to determine the tasks for the near future as follows: focusing efforts to prevent economic decline, striving to maintain and restore growth momentum, stabilizing macroeconomic fundamentals, proactively preventing inflation, ensuring social welfare, maintaining political security and social order.

Regarding the main socio-economic targets for 2009, the Government has agreed to submit to the National Assembly for consideration the adjustment of the target growth rate to around 5%; the fiscal deficit below 8% of GDP.

To achieve these tasks and targets, the Government requests ministries, sectors, and localities to continue implementing Decision No. 01/NQ-CP dated January 9, 2009 on key measures to guide and implement the socio-economic development plan and state budget estimate for 2009; Resolution No. 30/2008/NQ-CP dated December 11, 2008 on urgent measures to prevent economic decline, maintain economic growth, and ensure social welfare; Resolution No. 30a/2008/NQ-CP dated December 27, 2008 on the program to support rapid and sustainable poverty reduction in 61 poor districts, and other resolutions and decisions guiding and managing issued by the Government and the Prime Minister. Among them, they should focus on implementing the five key groups of measures already proposed, while also implementing additional measures as follows:

- For the group of solutions to promote production and business, export: Currently, agricultural production is developing favorably. Ministries, sectors, and localities need to focus on strictly guiding measures to boost production; prevent widespread outbreaks of diseases; pay special attention to solving the product consumption issue for farmers well, avoiding situations where a good harvest leads to a price drop. The Ministry of Agriculture and Rural Development is tasked with leading and coordinating with the Ministry of Finance, the Ministry of Industry and Trade, and the State Bank of Vietnam to develop and submit to the Prime Minister by the end of April 2009 policies and mechanisms for purchasing products such as rice, coffee, tea, rubber, cashew nuts, farmed fish, and farmed shrimp, ensuring full consumption of goods and reasonable profits for producers; developing policies and mechanisms to support farmers in purchasing machinery, equipment, and materials for agricultural production and consumption.

- For the group of solutions to stimulate investment and consumption: Continue reviewing and removing obstacles related to administrative procedures, especially bidding procedures, taxes, land clearance... to promote investment, accelerate industrial production and construction development. Focus on quickly disbursing funds for projects funded from state budget sources, ODA, FDI, and private capital, particularly emphasizing disbursement for projects funded from state budget sources.

Based on the annual total investment amount assigned, the Minister, Chairman of the People's Committee of provinces and centrally governed cities may proactively allocate and transfer government bond funds between projects within the scope of investment using government bonds; the Ministry of Planning and Investment is tasked with leading and coordinating with the Ministry of Finance to consider transferring government bond funds between projects within the scope of various ministries and localities (between ministries, between ministries and localities, and between localities) to achieve the goal of completing projects and works promptly and putting them into operation and utilizing their effectiveness immediately in 2009 and 2010; review and simplify procedures; the Ministry of Industry and Trade will handle appropriately the issue of peak hour electricity prices, strictly combat smuggling and commercial fraud to protect domestically produced goods.

Ministries, sectors, and localities need to organize effectively trade promotion activities, expand markets, particularly focusing on the domestic market in the agricultural and rural areas. The Ministry of Finance is tasked with leading the review and reporting to the Prime Minister by April 2009 on plans to adjust tax policies to stimulate domestic consumption.

- For the group of financial and monetary policy solutions: The State Bank of Vietnam continues to closely monitor domestic and international developments to timely and flexibly adjust interest rates and exchange rates according to market signals; implement promptly and effectively the expansion of the scope of loans eligible for a 4% preferential interest rate for medium and long-term loans to invest in new production and business development over a two-year period; borrowers under Decree No. 151/2006/NĐ-CP shall enjoy interest rate subsidies according to Decision No. 131/QĐ-TTg dated January 23, 2009 of the Prime Minister. The Ministry of Finance leads and coordinates with the State Bank of Vietnam and relevant agencies to adjust policies regarding guarantees for loans to import advanced machinery, equipment, and production lines to modernize and improve product quality; propose plans to reduce preferential loan interest rates for medium and long-term loans for investment projects; temporarily advance funds to localities for the state budget support for infrastructure construction in industrial zones.

The Government agrees to submit to the National Assembly for consideration the issuance of an additional VND 20 trillion worth of government bonds in 2009 to concentrate investments in transportation, water conservancy, healthcare, education, and student housing projects. The Ministry of Finance is tasked with borrowing VND 20 trillion from idle funds at the State Bank of Vietnam to create a temporary source of funding for important and urgent projects in the 2010 plan; unfinished projects lacking funds; ensure matching funds for ODA projects; clear bottlenecks for FDI projects; important projects serving the celebration of the 1000th anniversary of Thang Long - Hanoi...

The State Bank of Vietnam directs the Social Policy Bank to report to the Prime Minister by April 2009 on plans to adjust and reduce interest rates for loans to poor households and other policy beneficiaries.

- For social security fields: The Government requests the Ministry of Health to strengthen inspections and controls to prevent disease outbreaks; enhance the quality of medical examinations and treatments, health insurance for the poor; accelerate the construction and upgrading of hospitals. The Ministry of Education and Training continues to implement the program of solidifying school buildings and teacher residences using government bond funds; ensure funding for the program allowing poor students to borrow money for education. The Ministry of Labor, Invalids, and Social Affairs continues to implement the employment loan program, strengthen supervision and inspection of the implementation of the Government's Resolution on rapid and sustainable poverty reduction in 61 poor districts. The Government agrees to implement adjustments to the minimum wage, pensions, and social allowances to take effect from May 1, 2009.

- Regarding guidance and management work: The Government requires ministries, sectors, and localities to focus intensively and urgently on implementing assigned tasks. Documents within the authority of the Government and the Prime Minister must be issued before April 10, 2009, to facilitate early organization and implementation. The Government will establish inspection teams led by members of the Government to urge, inspect, and resolve difficulties in implementing stimulus measures and combating economic downturns.

The Ministry of Planning and Investment, the Vietnam Academy of Social Sciences shall take the lead and coordinate with relevant agencies to actively analyze and forecast the global economic situation, the domestic economic situation, and necessary solutions to be proposed after the crisis to sustainably develop the economy for the foreseeable future, and promptly report to the Prime Minister.

- Regarding information dissemination and propaganda: Ministries, sectors, and localities need to proactively and timely provide information on policies, solutions, and mechanisms to the press for propaganda purposes, creating social consensus in implementing the country's socio-economic development tasks.

The Government also discussed and approved reports on the implementation of administrative reform work in the first quarter of 2009; inspection, complaint resolution, and anti-corruption work in March and the first quarter of 2009; the implementation of the Resolution of the Government meeting in February and the Government's work program in March 2009; the implementation of international commitments of Vietnam presented by the Minister of Home Affairs, the General Inspector of the Government, the Minister and Head of the Government Office, and the Minister of Foreign Affairs.

The Government requests ministries, sectors, and localities to continue implementing work to ensure national security and defense, accelerate administrative reform, prevent and combat corruption, and ensure traffic order and safety; proactively prevent and combat natural disasters; focus on conducting the population and housing census; implement pilot projects without organizing People's Councils at district, town, and ward levels...

2. The Government heard the Minister of Finance's report on the settlement of the State budget for 2007; listened to the National Audit Office's report on the results of auditing the State budget revenue and expenditure settlement for 2007.

The State budget revenue and expenditure tasks for 2007 were implemented in accordance with the National Assembly's Resolution. The Government agrees to approve the 2007 State Budget Settlement Report; assigns the Ministry of Finance to cooperate with the National Audit Office to accurately determine the total revenue, total expenditure, and deficit of the State Budget for 2007, incorporate the opinions of Government members, complete the 2007 State Budget Settlement Report; the Minister of Finance, authorized by the Prime Minister, will submit it to the Standing Committee of the National Assembly and the National Assembly.

3. The Government heard the Minister of Construction's presentation of the draft Resolution of the Government on measures to build housing for workers in industrial zones, students, and low-income people in urban areas.

Caring for and solving housing issues for the people has always been a matter of concern and guidance by the Party and the State. In recent years, many mechanisms and policies supporting housing for policy beneficiaries, poor households in rural, mountainous areas, and regions frequently affected by natural disasters have been issued. However, due to various reasons, there are still many households and individuals with low income, poor people in urban areas, especially workers in industrial zones, students in educational institutions, and civil servants with low income who are facing difficulties in housing and require state support. The Government unanimously agrees to issue a Resolution on some mechanisms and policies to promote the construction of housing for students in educational institutions and social housing for workers in concentrated industrial zones and low-income people in urban areas.

Assign the Ministry of Construction to take the lead and coordinate with the Ministry of Justice, the Government Office, and related agencies to incorporate the opinions of Government members at the meeting, perfect the draft Resolution for submission to the Government for consideration and issuance; based on this Resolution, urgently submit to the Prime Minister for issuance of specific documents on mechanisms and policies regarding the construction of housing for workers in industrial zones, for students in educational institutions, and for low-income people in urban areas to implement soon.

4. The Government heard the Minister of Justice's report on signing the Hague Convention on the Protection of Children and Cooperation in Inter-country Adoption.

The Hague Convention is a very important international legal tool aimed at protecting children and promoting cooperation among countries in adoption matters, highly valued by the United Nations and the international community. To date, 75 countries are members of the Convention. Since Decree No. 68/2002/ND-CP took effect, the handling of foreign nationals adopting Vietnamese children has mainly been based on bilateral agreements on adoption between Vietnam and other countries and territories. On one hand, this has ensured stricter procedures and processes for adoption, while on the other hand, it has created a mechanism gradually aligning with the requirements of the Hague Convention, thereby better preparing conditions and capabilities for implementing the Convention when Vietnam becomes a member. In the current situation, the number of children in special circumstances requiring care and nurturing is still high, but they cannot all be adopted domestically, so allowing foreign nationals to adopt is a last resort measure, in the best interest of the children. The Government agrees that Vietnam's participation in the Hague Convention at this time is appropriate and necessary.

Assign the Ministry of Justice to take the lead and coordinate with the Ministry of Foreign Affairs and the Government Office to incorporate the opinions of Government members, perfect the proposal on signing the Hague Convention of May 29, 1993 on the Protection of Children and Cooperation in Inter-country Adoption; the Minister of Justice, authorized by the Prime Minister, will submit it to the Standing Committee of the National Assembly for consideration and comments on signing the Hague Convention.

5. The Government heard the Minister of Information and Communications' report and agreed to adjust the timing for submitting the Draft Law on Press (Amended).

6. The Government discussed the following draft laws: Law Amending and Supplementing Certain Provisions of the Cultural Heritage Law; Law Amending and Supplementing Certain Provisions of the Medical Examination and Treatment Law; Telecommunications Law; Law Amending and Supplementing Certain Provisions of Laws Related to Basic Construction Investment presented by the Ministers of Culture, Sports and Tourism, Health, Information and Communications, Planning and Investment, and the Minister and Head of the Government Office.

a) Regarding the Law Amending and Supplementing Certain Provisions of the Cultural Heritage Law.

The Cultural Heritage Law is the highest legal document in the current legal system concerning cultural heritage, providing a legal framework that encourages and creates conditions to attract the participation of the whole society in activities for protecting and promoting the value of cultural heritage, while also effectively securing international community support. However, violations in the use and promotion of the value of historical sites are complex, state management work still has many shortcomings, low efficiency, and is not in line with reality. Amending and supplementing certain provisions of the Cultural Heritage Law is necessary to meet the requirements of developing activities for protecting and promoting the value of cultural heritage both domestically and internationally, contributing significantly to enhancing creativity, attracting investment from organizations and individuals both within and outside the country for the protection and promotion of cultural heritage, serving the effective process of economic and social development.

The Ministry of Culture, Sports and Tourism is assigned to take the lead, coordinate with the Ministry of Justice, the Government Office, and related agencies, incorporate opinions of government members, complete the draft Law Amending and Supplementing Certain Provisions of the Cultural Heritage Law; the Minister of Culture, Sports and Tourism shall submit this draft law to the Standing Committee of the National Assembly on behalf of the Prime Minister.

b) Regarding the Draft Law on Medical Examination and Treatment.

In recent years, efforts to protect, care for, and improve people's health, including the field of medical examination and treatment, have achieved significant results, but still fail to meet the increasing demands for medical services from the public. Current legal regulations on medical examination and treatment, issued under the old mechanism, have low legal effectiveness and cannot keep up with the changing situation of protecting, caring for, and improving people's health in the context of Vietnam developing a socialist-oriented market economy and integrating into the international community. Therefore, issuing the Medical Examination and Treatment Law, together with other laws and ordinances on health already and to be issued, to create a unified and coherent legal system on health is necessary, contributing to national economic and social development, meeting the requirements of international integration, and successfully advancing the cause of protecting, caring for, and improving people's health.

The Ministry of Health is assigned to take the lead, coordinate with the Ministry of Justice, the Government Office, and related agencies, incorporate opinions of government members, complete the draft Law on Medical Examination and Treatment; the Minister of Health shall submit this draft law to the Standing Committee of the National Assembly on behalf of the Prime Minister.

c) Regarding the Draft Law on Telecommunications.

Telecommunications in Vietnam is one of the sectors that has developed very quickly and is becoming a key economic sector of the country. With positive mechanisms and policies in the telecommunications field, especially after the issuance of the Post and Telecommunications Ordinance in 2002, a legal framework was created to promote competition, encourage, and support new businesses entering the market. The telecommunications infrastructure network and service quality have been increasingly improved and enhanced. However, after implementing telecommunications regulations, particularly since Vietnam became a full member of the World Trade Organization, the Post and Telecommunications Ordinance of 2002 has revealed some points that are no longer appropriate. Therefore, drafting the Telecommunications Law is necessary to create conditions for the telecommunications industry to develop in new circumstances, contributing to achieving the goal of making Vietnam a strong information technology nation.

The Ministry of Information and Communications is assigned to take the lead, coordinate with the Ministry of Justice, the Government Office, and related agencies, incorporate opinions of government members, complete the draft Telecommunications Law; the Minister of Information and Communications shall submit this draft law to the Standing Committee of the National Assembly on behalf of the Prime Minister.

d) Regarding the Draft Law Amending and Supplementing Certain Provisions of Laws Related to Investment in Construction.

Currently, investment in construction in Vietnam is regulated by many normative legal documents in different fields, failing to form a unified and coherent legal system on investment in construction. Some laws and guiding documents have not been issued in time; many guiding contents are not in line with reality or are inconsistent but have not been promptly amended and supplemented. These issues are obstacles to the implementation of investment in construction in recent times and are concerns and grievances of many ministries, localities, and investors. At the request of the Standing Committee of the National Assembly, the Government has directed a comprehensive review of normative legal documents on investment in construction, focusing on timely amending and supplementing certain provisions of laws to address the most pressing issues in current investment in construction, particularly those related to investment procedures and processes.

The Ministry of Planning and Investment is assigned to take the lead, coordinate with the Ministry of Justice, the Government Office, and related agencies, incorporate opinions of government members, complete the draft Law Amending and Supplementing Certain Provisions of Laws Related to Investment in Construction; the Minister of Planning and Investment shall submit this draft law to the Standing Committee of the National Assembly on behalf of the Prime Minister./.