Decision No. 17/2008/NQ-CP of the Government's regular meeting in July 2008

RESOLUTION

The regular monthly meeting of the Government for July 2008

_______________

On August 4 and 5, 2008, the Government convened its regular monthly meeting for July to discuss and adopt the following issues:

1. The Government heard the Minister of Planning and Investment's report on the results of production, business, service, and investment activities in July and the socio-economic situation in the first seven months of 2008, as well as the domestic market and import-export activities in July and the first seven months of 2008; the Minister of Finance reported on the implementation of macroeconomic stability policies and inflation control in the first seven months of 2008; the objectives, tasks, and solutions for the last five months of 2008.

In the context of many difficulties due to domestic and global situations, with the efforts of the entire Party and people and the resolute guidance and management of the Government, the socio-economic situation in July and the first seven months of 2008 showed positive changes. The consumer price index increased at the lowest level since the beginning of the year; exports maintained a high growth rate, import surplus tended to decrease; macroeconomics was basically under control; the stock market showed signs of recovery; state budget revenue increased compared to the same period last year; foreign direct investment attracted strongly; industrial production grew significantly; agricultural production, cargo and passenger transport, postal and telecommunications services continued to develop; the total retail sales of goods and service revenue increased compared to the same period last year, tourism activities were quite lively. Cultural, health, education, training, sports, poverty reduction, vocational training, and job creation sectors achieved many good results; the rural area, farmers, and agriculture remained stable thanks to good harvests, prices, and timely support policies from the State. National defense and security were maintained, social order and safety were ensured. Traffic safety improved significantly, the number of traffic accidents, deaths, and injuries decreased compared to the same period in 2007.... From now until the end of the year, the economy will continue to face many difficulties and challenges such as the impact of rising oil and some raw materials and essential consumer goods prices; unpredictable natural disasters and epidemics. To complete the 2008 plan, the Government requests that ministries, sectors, and localities strictly guide the implementation of eight groups of measures outlined in Resolution No. 10/2008/NQ-CP dated April 17, 2008, of the Government on measures to curb inflation, stabilize macroeconomics, ensure social welfare, and achieve sustainable growth, along with other guiding and managing documents of the Government and the Prime Minister. Ministries and sectors should proactively coordinate to implement specific issues as follows:

a) Focus on resolving difficulties, promoting production and export activities, and strictly controlling imports to reduce the trade deficit. Pay attention to reducing production and business costs; ensure sufficient capital for production, especially working capital for production, capital for exports, and capital for construction of essential projects and works; ensure electricity supply for production; continue to review and improve, abolish administrative procedures that hinder business operations.

b) Continue to implement the policy of thrift in production and consumption. Accelerate disbursement of state budget investment funds and ODA, FDI; continue to review and adjust the 2008 investment plans of ministries, sectors, localities, and state-owned corporations and conglomerates to cut ineffective projects, concentrate capital to speed up progress on key projects and those nearing completion.

c) Manage prices according to market principles with appropriate schedules and timing. Strengthen strict price control, prevent speculative price increases, ensure balanced supply, avoid shortages, promptly detect and handle violations strictly according to the law. Continue to maintain stable electricity prices, coal prices for four major users, clean water prices, and public bus fares until the end of 2008.

d) Continue to implement a tight monetary policy while ensuring economic liquidity; cautiously and flexibly manage exchange rates; improve the balance of payments; strictly control and create conditions for the stock market to develop steadily and healthily; the State Bank of Vietnam shall issue new criteria for establishing joint-stock commercial banks to manage strictly in accordance with international practices and the conditions of the market economy in our country; at the same time, take measures to control and deal with ineffective banks.

e) Vigorously carry out the restructuring, shareholding, and improvement of state-owned enterprises' operational efficiency in accordance with the spirit of the Third Plenary Session of the Central Committee of the Communist Party (Term IX), prepare well for the mid-term review of the economic group model in the fourth quarter of 2008.

Adjust the operation of investment and create conditions to improve the operational efficiency of economic groups, conglomerates, and state-owned enterprises.; f) Continue to effectively implement current social welfare policies, while urgently studying and issuing new policies, particularly support policies for low-income workers and the poor.

g) The Ministry of Information and Communications shall lead and coordinate with the Government Office to draft a plan for information dissemination and propaganda to serve current political tasks, creating consensus throughout society, and strictly handling cases of false reporting that incite unrest and cause societal anxiety.

The Government Office is tasked with drafting the Government Resolution to implement the conclusions of the Political Bureau and the Seventh Plenary Session of the Central Committee of the Communist Party (Term X) on evaluating the socio-economic situation in the first seven months of 2008 and key solutions for the remaining months of 2008, to be submitted to the Prime Minister for consideration and issuance in August 2008.

Direct the Office of the Government to take the lead in drafting the Government's Resolution to implement the Conclusions of the Politburo and the Resolution of the Seventh Plenary Session of the Central Committee of the Party (Term X) on assessing the socio-economic situation in the first seven months of the year and key solutions for the remaining months of 2008, to be submitted to the Prime Minister for consideration and issuance by signature in August 2008.

2. The Government listens to the Minister of Finance presenting the draft Decree amending and supplementing Decree No. 151/2006/NĐ-CP dated December 20, 2006 on state investment credit and export credit; listens to the Minister, Head of the Government Office presenting the Government Office's opinion on the draft Decree.

Over the past year, the state investment credit policy stipulated in Decree No. 151/2006/NĐ-CP has been effectively implemented, contributing to promoting national economic growth. However, this policy has revealed some issues that are no longer suitable with current circumstances, requiring supplementation and amendment, such as: the project list for borrowing investment credit is still scattered; the interest rate for investment loans is lower than the interest rate for medium and long-term commercial loans; the level of post-investment support is high. The state investment credit policy in the future needs to be amended to better align with the strategic orientation of economic and social development, reduce difficulties for the state budget, and comply with commitments upon joining the WTO; at the same time, accelerate disbursement progress and improve investment efficiency and loan usage.

Entrust the Ministry of Finance to take the lead, coordinate with the Government Office to incorporate opinions from government members, perfect the draft Decree, and submit it to the Prime Minister for consideration and issuance.

3. The Government listens to the Minister of Industry and Trade presenting the draft Decree stipulating administrative penalties for speculative activities, hoarding goods, excessive price increases, disseminating false information, smuggling, and trade fraud; listens to the Minister, Head of the Government Office presenting the Government Office's opinion on the draft Decree.

The situation of speculation, hoarding goods, price hikes, disseminating false information, smuggling, and trade fraud under various forms has not been strictly controlled, causing market instability, adversely affecting the implementation of the Government's measures to curb inflation, stabilize macroeconomic conditions, ensure social welfare, and sustainable growth. The issuance of this Decree is extremely necessary to promptly address these issues, contribute to stabilizing the market, and protect consumers.

Entrust the Ministry of Industry and Trade to take the lead, coordinate with the Ministry of Justice and the Government Office to incorporate opinions from government members, perfect the draft Decree, and submit it to the Prime Minister for consideration and issuance.

4. The Government listens to the Minister of Planning and Investment presenting the draft to amend and supplement the Regulation on operating electronic games with rewards for foreigners issued together with Decision No. 32/2003/QĐ-TTg dated February 27, 2003; listens to the Minister, Head of the Government Office presenting the Government Office's opinion on the draft amended Regulation..

Amending and supplementing the Regulation on operating electronic games with rewards for foreigners aims to diversify services of accommodation facilities, contributing to increasing tourists' stay duration; at the same time, strengthen state management, promote decentralization to local authorities, and enhance the responsibility of relevant agencies in managing this type of business.

Entrust the Ministry of Planning and Investment to take the lead, coordinate with the Government Office to incorporate opinions from government members, perfect the draft Regulation, and submit it to the Prime Minister for consideration and issuance.

5. The Government listens to the Minister of Planning and Investment presenting the draft Decree on determining types of projects using state budget capital under conditions of sudden changes in prices and costs.

Fluctuations in raw material, fuel, and construction material prices have caused the total investment amount of projects to increase significantly.. Therefore, the criteria for classifying projects based on investment scale stipulated in legal normative documents are no longer appropriate, thereby affecting the implementation of investment projects generally and those using state budget capital specifically.. The Government needs to issue guidelines for classifying projects based on investment scale under inflationary conditions to resolve management difficulties for state budget-funded construction projects, ensuring timely and effective investment.

Entrust the Ministry of Planning and Investment to take the lead, coordinate with the Ministry of Justice and the Government Office to incorporate opinions from government members, perfect the draft Decree, and submit it to the Prime Minister for consideration and issuance.

6. The Government listens to the Minister of Justice presenting the draft Law on State Compensation; listens to the Minister, Head of the Government Office reporting the consolidated opinions of government members on the draft Law.

In recent times, legal provisions regarding compensation for damages caused by public officials have initially protected the interests of individuals and organizations suffering losses while also safeguarding state interests. However, legal provisions in this field still have many limitations, are incomplete and inconsistent, and lack specificity. The State Compensation Law aims to unify legal provisions on compensation for damages caused by public officials in administrative and judicial activities to enable victims to better exercise their right to compensation.; On the other hand, it contributes to enhancing the responsibility of state agencies and civil servants during the performance of official duties, ensuring stable and efficient operation of public authorities.

Entrust the Ministry of Justice to take the lead, coordinate with the Government Office to incorporate opinions from government members, perfect the draft Law. The Minister of Justice, authorized by the Prime Minister, will submit the draft Law to the Standing Committee of the National Assembly.

7. The Government listens to the Minister of Natural Resources and Environment presenting the draft Law amending and supplementing certain articles of the Land Law; listens to the Minister, Head of the Government Office reporting the consolidated opinions of government members on the draft Law.

The Land Law of 2003 basically met the requirements for reform in state management of land in accordance with a socialist-oriented market economy and the process of industrialization and modernization of the country; it created an important legal framework for land management, maximizing benefits from land. However, during the implementation of the Land Law of 2003, some difficulties and inadequacies arose. To promptly address the existing issues in the current land law system, to meet the requirements for accelerating economic development, stabilizing society, and protecting the environment, amending and supplementing the Land Law of 2003 is urgent and necessary.

The Ministry of Natural Resources and Environment is assigned to take the lead, in coordination with relevant agencies, to study and prepare the important contents that need to be amended and supplemented in the Land Law of 2003, and report to the Prime Minister for comments before submitting to the Government at the August 2008 session.

8. The Government agrees to approve the Report on the Implementation of the Organizational Structure of the Government in the Twelfth Term, the Report on the Implementation of Administrative Reform Work in July 2008 presented by the Minister of Home Affairs; the Report on the Implementation of Anti-Corruption and Complaint Resolution Work in July 2008 presented by the General Inspector of the Government; the Report on the Implementation of the Program of Work in July and the Resolutions of the Government at the June 2008 Session, the Report on the Implementation of the Campaign "Learning and Practicing the Moral Example of President Ho Chi Minh" presented by the Minister and Head of the Government Office.

The Government requests all Ministries and agencies to continue to intensify inspection and urging the implementation of administrative reform, promptly finalize draft decrees stipulating the functions, tasks, powers, and organizational structure of Ministries and agencies yet to be issued, and submit them to the Government in August 2008; strengthen the implementation of anti-corruption measures, strictly handle corruption cases that have been discovered; organize well the reception of citizens, promptly resolve mass complaints and lawsuits to prevent hotspots from emerging; review, adjust, and complete on schedule the projects assigned in the Government's Program of Work according to the Government's Working Regulations; develop action programs and plans of their own Ministries and sectors in implementing the Campaign "Learning and Practicing the Moral Example of President Ho Chi Minh" in conjunction with the process of implementing economic and social development tasks, administrative reform work, thrift, anti-corruption, and waste reduction, and bureaucracy./.