DIRECTIVE NO. 18/2008/CT-BCT ON THE ORGANIZATION AND IMPLEMENTATION OF RESOLUTION NO. 30/2008/NQ-CP OF THE GOVERNMENT ON URGENT MEASURES TO PREVENT ECONOMIC DECLINE, MAINTAIN ECONOMIC GROWTH, AND ENSURE SOCIAL SECURITY

DIRECTIVE

OF THE MINISTRY OF INDUSTRY AND TRADENUMBER 18/2008/CT-BCT ON DECEMBER 24, 2008

REGARDING THE ORGANIZATION AND IMPLEMENTATION OF RESOLUTION NO. 30/2008/NQ-CP OF THE GOVERNMENT ON DECEMBER 11, 2008 ON URGENT MEASURES TO PREVENT ECONOMIC DECLINE, MAINTAIN ECONOMIC GROWTH, AND ENSURE SOCIAL SECURITY

TO ENSURE SOCIAL SECURITY

The Prime Minister has issued Resolution No. 30/2008/NQ-CP on December 11, 2008 regarding urgent measures to prevent economic decline, maintain economic growth, and ensure social security, determining that efforts must be concentrated on implementing general objectives and solutions of the plan for 2009 approved by the fourth session of the XIIth National Assembly, with the urgent task being to focus all efforts on proactively preventing economic decline, promoting production and business activities, boosting exports, stimulating investment and consumption, and ensuring social security.

Based on the tasks and solutions assigned in Resolution No. 30/2008/NQ-CP dated December 11, 2008 of the Government, the Minister of Industry and Trade hereby issues the following directive:

I. ASSIGNMENT OF GUIDANCE AND ORGANIZATION OF IMPLEMENTATION OF SOLUTIONS IN THE INDUSTRY SECTOR

a. Deputy Minister Bui Xuan Khu shall take the lead in coordinating with other Deputy Ministers to direct

- The Light Industry Department, Heavy Industry Department, Import-Export Department, Domestic Market Department, and Financial Affairs Department shall direct the promotion of production of goods serving domestic consumption, particularly food, beverages, textiles, garments, pharmaceuticals. Priority should be given to supporting the production of goods with competitive advantages over imports, using domestic raw materials, and employing a large number of workers such as construction materials, machinery, manufacturing, shipbuilding, fertilizers, etc. Support the sale of some industrial products currently in surplus stock such as steel billets, construction steel, cement, fertilizers, paper, chemicals according to the principle of restructuring loan terms, implementing interest rate reductions on loans with high interest rates in accordance with government policy.

- The Heavy Industry Department shall take the lead and coordinate with relevant departments to study and propose policies to support and encourage domestic organizations and individuals to produce and manufacture products in industries capable of replacing imports, to be submitted to the Prime Minister in December 2008.

b. Deputy Minister Do Huu Hao shall take the lead and coordinate with Deputy Minister Bui Xuan Khu and Deputy Minister Le Duong Quang to direct

- The Energy Department, Heavy Industry Department, and Light Industry Department shall coordinate with relevant agencies to concentrate resources, strictly direct, and complete projects and investment programs on schedule, especially major and key projects whose construction progress has been delayed, particularly those in the energy sector.

- Review each specific field and product category, report and propose to the Prime Minister in December 2008 concrete measures needed to address difficulties and support production and business operations for industries and products with significant production capacity.

c. Deputy Minister Nguyen Thanh Bien shall take the lead and coordinate with Deputy Minister Do Huu Hao to direct

- The Import-Export Department shall take the lead and coordinate with relevant departments:

Urgently complete and submit to the Prime Minister for approval the Plan to Boost Exports and Control Import Surplus for the period 2009-2010 in December 2009, focusing on measures to enhance export competitiveness (in terms of business environment, enterprise competitiveness, and competitiveness of commodity groups); Continue to implement import substitution policies by promoting auxiliary industries, manufacturing industries, and petrochemical industries to utilize domestic resources, technology, materials, and equipment sufficient for standards, reducing import surplus.

- The Trade Promotion Agency, Import-Export Department, Departments responsible for foreign markets, and Vietnamese trade offices abroad:

Identify promoting exports as a key task of the industry in 2009 to contribute to the Government's policy; continue to innovate methods and strengthen trade promotion activities, expanding export markets to regions less affected by financial crises and economic downturns through targeted sectoral and large contract promotions; Increase high-level contacts to expand markets, trading relations, and advocate through formal and informal channels to respond proactively to trade protectionist policies, removing tariff and non-tariff barriers to increase exports; Coordinate with ministries, localities, and industry associations to actively implement appropriate measures to promote trade. Work with the Ministry of Finance to develop specific plans to supplement and support funding for export promotion activities.

- The Import-Export Department shall take the lead and coordinate with relevant departments:

Calculate, review, and develop plans to balance imported raw material sources and implement policies to encourage processing to increase export turnover in labor-intensive and domestically material-intensive industries; Support enterprises exporting under the warehouse outside customs territory delivery method.

d. Deputy Minister Nguyen Cam Tu shall take the lead and coordinate with Deputy Minister Nguyen Thanh Bien to direct

- The Domestic Market Department shall coordinate with relevant ministries, sectors, and units:

Develop and submit to the Prime Minister the Plan to Develop Distribution Systems for Essential Commodities, focusing on commodities such as rice, oil, fertilizer, iron and steel, cement, and medicines, to ensure that the production and business activities of these commodities are subject to state management, prevent commercial fraud, speculation, price increases, market instability, and protect consumer rights.

- The Mountainous Region Trade Department shall coordinate with the Domestic Market Department and the Import-Export Department to effectively advise on flexible border trade management aimed at encouraging exports and strictly controlling imports.

- The Market Management Department shall strengthen guidance on combating smuggling across borders, market management measures, price control, product quality, and food safety hygiene; strictly handle violations according to current laws, especially illegal business operations, tax evasion, monopolistic collusion aimed at manipulating the market and prices.

- The Multilateral Affairs Division shall coordinate with relevant units:

Leverage the advantages of Free Trade Agreements (FTA) to boost exports and reduce trade deficits in markets with high import surpluses. Promote the early signing of the Vietnam-Japan Economic Partnership Agreement, ASEAN FTAs with Australia, New Zealand, and India. Simultaneously, advance preparations for multilateral FTA negotiations with other key economic partners.

d. Deputy Minister Le Duong Cuong shall lead coordination with Deputy Minister Do Huu Hao to direct

- The Energy Department and the Heavy Industry Department shall coordinate with the Import-Export Department and the Domestic Market Department:

Direct and guide the Vietnam Oil and Gas Group and the Vietnam National Coal and Mineral Industries Group to flexibly adjust their business activities; closely monitor transaction and bidding activities to ensure the most effective export prices for crude oil, coal, and other minerals.

II. IMPLEMENTATION

- All Departments, Bureaus, Groups, Corporations, and Companies shall strictly implement the Government's Resolution and the Ministry of Industry and Trade's directives, develop specific plans for implementation.

- Heads and Leaders of units shall proactively implement their assigned tasks. Units responsible for projects and solutions required to report by December 2008 must submit to the Government on time; those without specified reporting deadlines must submit to the Government no later than February 2009.

- The General Planning and Coordination Department shall track the progress of assigned tasks monthly and report to the Ministry's Leadership.