Decision No. 21/2008/NQ-CP of the Government at the regular meeting of the Government in August 2008

RESOLUTION

Regular Meeting of the Government in August 2008

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From September 3 to September 5, 2008, the Government convened its regular meeting for August, discussed and adopted the following issues:

1. The Government heard the Minister of Planning and Investment report on the socio-economic situation in August and the first eight months of 2008, and proposed plans for socio-economic development in 2009; the Minister of Finance reported on the implementation of the state budget in 2008 and the draft state budget for 2009; the Minister of Labor, Invalids, and Social Affairs reported on the situation of labor export abroad; the situation of strikes and strike resolution from the beginning of the year until August 25, 2008; the Minister of Agriculture and Rural Development reported on the guidance to cope with Typhoon No. 4 and the tropical depression; the Minister of Interior reported on the implementation of administrative reform in August 2008; the General Inspectorate of the Government reported on inspection work, handling complaints and denunciations, and anti-corruption efforts in August 2008; the Minister and Head of the Government Office reported on the implementation of the August 2008 Work Program and the Resolution of the regular Government meeting in July 2008.

Since late 2007 and the first quarter of 2008, unfavorable developments have emerged within the country affecting the economy such as high inflation; difficulties in production and business operations; high trade deficit; consecutive natural disasters and epidemics adversely impacting production and people's livelihoods. In response to these circumstances, the Government adjusted its goals and prioritized controlling inflation, stabilizing macroeconomic conditions, ensuring social welfare, and achieving reasonable and sustainable growth. Under the leadership of the Party, the resolute direction of the Government, and the joint efforts of the entire military, people, sectors, levels, and enterprises in implementing the set targets and solutions, the socio-economic situation in the first eight months of 2008 showed signs of recovery and achieved positive results; the economy maintained a relatively high growth rate despite high inflation; agriculture had a good harvest; industrial production value increased by 16.3%; macroeconomic balance was basically maintained; the consumer price index growth trend was gradually decreasing; export turnover increased by 39.1% compared to the same period last year; import turnover and trade deficit decreased; state budget revenue increased significantly, while the budget deficit was lower than the initial forecast; the securities market operated positively; total investment capital mobilization for the whole society reached 39% of GDP; foreign direct investment including both implemented and newly registered capital increased; retail sales of goods and service revenue increased compared to the same period last year. Social fields such as education and training; health care; employment; culture, information, sports; environmental protection achieved many results; information dissemination and propaganda work were given attention, creating public trust and support for the policies of the Party and State. Social welfare policies contributed to stabilizing people's lives and production, especially low-income workers and poor people affected by inflation and natural disasters. Political security was maintained, and social order and safety were ensured. Traffic safety improved significantly. Handling complaints and denunciations, combating criminal activities and social evils continued to be emphasized.

Administrative reform work has been continuously monitored and directed by the Government. Ministries, sectors, and localities continued to reorganize their structures, define functions, tasks, authorities, and organizational structures of subordinate units; accelerated administrative procedure reform in various areas of state management, focusing primarily on procedures causing obstacles and inconvenience to citizens and businesses according to the Government's directives.

Anti-corruption, thrift, and waste prevention efforts were actively carried out by sectors, levels, and enterprises. The detection and handling of corruption received more attention.

Foreign affairs and international economic cooperation continued to develop. Our country fulfilled its role as a non-permanent member of the United Nations Security Council well. Foreign direct investment increased significantly, while indirect investment was maintained, reflecting foreign investors' confidence in Vietnam's stability and development.

Alongside the achievements, there remain significant shortcomings and limitations that need to be addressed: the economic growth rate slowed down, lower than previous years and not reaching the planned target; construction investment faced many difficulties, with low implementation volume and disbursement of development investment funds from the state budget and government bonds; although the growth rate of the consumer price index has decreased, it remains higher than previous years; imports and the trade deficit, although controlled, still remain at a high level; the living conditions of the people, especially in remote, mountainous, and ethnic minority regions, remain challenging; the poverty reduction rate is low; mass complaints continue; labor disputes and strikes have increased; workplace accidents and occupational diseases have risen. Administrative reform and anti-corruption, thrift, and waste prevention efforts did not achieve the desired results. Although there has been progress in the management and operation of state agencies, they have not fully met the requirements.

To ensure the achievement of sustainable growth targets alongside stabilizing people's lives in the remaining months of 2008, the Government requests ministries, sectors, and localities to strictly and resolutely implement the eight groups of solutions proposed, with a focus on the following solutions:

- Continue to implement monetary tightening policies but flexibly manage them to ensure liquidity requirements of the economy, guaranteeing capital for production, business operations, and exports;

- Concentrate on resolving difficulties and obstacles to promote production and business development;

- Continue to implement effectively measures to promote exports, strictly manage imports to reduce trade deficit;

- Continue to review and adjust investment, focusing capital on effective projects and works nearing completion; accelerate disbursement progress for projects and works funded from state budget, especially large-scale ones, to create momentum for growth in subsequent years; firmly implement the policy of reducing regular expenditure by 10%;

- Strengthen market management, prices, implement comprehensive measures to stabilize prices, prevent speculation and smuggling; ensure balance between supply and demand for essential goods for production and people's livelihoods, avoiding localized shortages; regulate fuel prices towards approaching market mechanisms;

- Continue to implement well social welfare policies already issued, while preparing new policies to contribute to stabilizing production and people's livelihoods; focus on resolving current pressing social issues;

- Implement well information dissemination and propaganda to build public trust, avoid disseminating unfavorable information that creates negative public opinion and causes public anxiety;

Regarding the general tasks for 2009, the Government has determined to continue prioritizing curbing inflation with a gradual reduction trend and stabilizing macro-economy; strive to achieve a higher growth rate than in 2008; better ensure social welfare; maintain political and social stability to create conditions for successfully implementing the main targets of the five-year plan from 2006 to 2010;

The Government basically agrees with the main targets proposed in the draft socio-economic development plan for 2009 presented by the Ministry of Planning and Investment. Among these, it is noted to establish some indicators such as: Gross Domestic Product (GDP); total export value; trade deficit; government budget deficit; consumer price index... to ensure feasibility;

To achieve the above targets, in 2009, efforts should be concentrated on implementing nine groups of solutions:

- Focus on directing the implementation of monetary and fiscal policies to curb inflation and stabilize the macro-economy;

- Concentrate on removing difficulties, mobilizing all resources for investment and development of production and business;

- Create conditions to further promote exports to support growth; limit trade deficit;

- Ensure balance between supply and demand for essential goods, prevent speculation, and effectively manage prices according to market mechanisms while providing support to target groups;

- Increase investment to address employment, poverty reduction, and improve people's living standards. Continue to implement well existing social welfare policies, while promptly researching and issuing new policies; issue and implement the Government's program of action on agriculture, farmers, and rural areas, and the program to support poverty reduction in poor districts;

- Increase investment while promoting socialization in education, healthcare, culture, sports, and environmental protection;

- Promote administrative reform; strengthen anti-corruption efforts; practice thrift and combat waste;

- Enhance external activities, raise Vietnam's position on the international stage;

- Ensure national sovereignty firmly; maintain political security and social order and safety;

The Ministry of Planning and Investment and the Ministry of Finance are instructed to incorporate opinions from Government members, finalize the Report on Socio-Economic Situation in 2008 and the Draft Plan for Socio-Economic Development in 2009, the Report on Implementation of State Budget in 2008 and the Draft State Budget for 2009, to submit to the Prime Minister for consideration and decision before reporting to the 8th Plenary Session of the 10th Central Committee of the Party;

2. The Government heard the Minister of Home Affairs present the Comprehensive Report on Amending Unreasonable Aspects in the Relationship Between Salaries, Allowances and Proposals for Resolving Salaries and Subsidies in the Last Months of 2008 and 2009;

The Government basically agrees with the contents of the Report. The Ministry of Home Affairs is instructed to take the lead, coordinate with the Office of the Government, relevant ministries and agencies to incorporate opinions from Government members, complete the project amending unreasonable aspects regarding salaries and allowances for cadres, civil servants, and employees in Party, State, Front, and mass organizations institutions, to submit to the Prime Minister for consideration and decision before reporting to the Political Bureau; complete related draft decrees and decisions, to submit to the Prime Minister for consideration and issuance;

3. The Government heard the Minister of Health present the Proposal for Reforming Operation Mechanisms and Financial Mechanisms, Salary Policies, and Hospital Fees for Public Health Service Units;

In recent times, the Party and State have issued many mechanisms and policies guiding the operation and development of the health sector, creating conditions for public health facilities to fully utilize financial resources, infrastructure, and human resources to fulfill assigned tasks and meet diverse needs of different strata of the population. However, during the process of implementation, many obstacles and inconveniences still exist. Reforming operation mechanisms and financial mechanisms (including salary and hospital fees) to create favorable conditions for public health service units to operate and develop in line with a socialist-oriented market economy, contributing to improving the efficiency of resource utilization for disease prevention, medical treatment, and enhancing the quality of healthcare services; increasing transparency and medical ethics, better serving the growing and diverse healthcare needs of the people;

The Government basically agrees with the contents of the Proposal. The Ministry of Health is instructed to take the lead, coordinate with the Ministry of Finance, the Office of the Government, and relevant ministries and agencies to incorporate opinions from Government members, complete the Proposal, to submit to the Prime Minister for consideration before reporting to the Political Bureau;

4. The Government heard the Minister of Agriculture and Rural Development present the Program of Action of the Government to implement Resolution of the 7th Plenary Session of the 10th Central Committee of the Party on Agriculture, Farmers, and Rural Areas.

The Government shall develop an Action Program to clearly define the contents, tasks, timeframes, and responsibilities of central ministries and agencies, as well as local authorities at all levels concerning agriculture, farmers, and rural areas. Simultaneously, this Action Program will serve as a basis for ministries, sectors, and localities to concretize into tasks, programs, and projects within their annual work plans.

The Ministry of Agriculture and Rural Development shall take the lead, coordinate with the Ministry of Justice, the Government Office, and relevant ministries and agencies to incorporate the opinions of government members, finalize the Action Program, and submit it to the Prime Minister for consideration and issuance.

5. The Government listens to the Minister of Finance's presentation on the Government's proposal to submit to the Standing Committee of the National Assembly for amending and supplementing the Export Tax Framework Table.

The current Export Tax Framework Table, issued pursuant to Resolution No. 295/2007/NQ-UBTVQH11 dated September 27, 2007 of the Standing Committee of the National Assembly, has contributed to limiting the export of mineral resources and materials. To enhance the effectiveness of export taxes further, it is necessary to amend the Export Tax Framework Table by increasing the upper limit of the existing framework and adding new tax frameworks for certain groups of goods.

The Ministry of Finance shall take the lead, coordinate with the Government Office to incorporate the opinions of government members, finalize the draft Resolution. The Minister of Finance shall submit the draft Resolution to the Standing Committee of the National Assembly on behalf of the Prime Minister.

6. The Government listens to the Minister of Justice's presentation on the Government's proposed legislative program of the National Assembly in 2009; the draft Law on Criminal Record; the draft Law amending and supplementing certain articles of the Penal Code 1999; and the Minister, Head of the Government Office's report summarizing the opinions of government members regarding the proposed legislative program and draft laws.

The Government requests that ministries and agencies responsible for drafting laws and ordinances, when registering them in the legislative program, must clearly define the contents and direction of drafting or amendment, have a strict plan for organizing the drafting process in accordance with procedures to ensure timely implementation.

The management of criminal records is of significant importance in criminal proceedings, state administration, and ensuring citizens' rights. However, the management of criminal records in our country has not yet been fully implemented comprehensively and appropriately, with the operational process still being manual and piecemeal, which is inconsistent with the direction of building a rule-of-law state and a professional, modern administrative system. Therefore, the development and promulgation of the Law on Criminal Records is very necessary.

The Penal Code 1999 has made a significant contribution to maintaining political security, social order, and safety, protecting the legitimate rights and interests of citizens, combating and preventing crime. However, after eight years of implementation, the current Penal Code has revealed some shortcomings and limitations that need to be amended and supplemented to meet the urgent requirements of reality, ensure the effectiveness of the fight against crime, and meet international integration requirements.

The Ministry of Justice shall take the lead, coordinate with the Government Office, incorporate the opinions of government members, finalize the proposed legislative program of the National Assembly in 2009 and the draft laws mentioned above. The Minister of Justice shall submit the draft laws to the Standing Committee of the National Assembly on behalf of the Prime Minister.

7. The Government listens to the Minister of Construction's presentation on the draft Law on Urban Planning; and the Minister, Head of the Government Office's report summarizing the opinions of government members on the draft law.

In recent times, the urban system in our country has developed rapidly in terms of quantity, quality, and scale. The appearance of cities has improved significantly towards civilization and modernity. However, the actual development of cities still has some shortcomings, requiring enhanced planning and management of urban development. The development and promulgation of the Law on Urban Planning aim to establish a complete legal basis, contributing to enhancing the effectiveness of state management in urban construction and development, ensuring sustainable, distinctive, civilized, and modern development of the urban system and each city.

The Ministry of Construction shall take the lead, coordinate with the Ministry of Justice, the Government Office to incorporate the opinions of government members, finalize the draft law. The Minister of Construction shall submit the draft law to the Standing Committee of the National Assembly on behalf of the Prime Minister.

8. The Government listens to the Minister of Finance's presentation on the draft Law on Public Debt Management; and the Minister, Head of the Government Office's report summarizing the opinions of government members on the draft law.

Public debt management has gradually become systematic, contributing to stabilizing and developing the national economy. However, there is currently no unified regulation on public debt; the organization of debt management is overlapping and not centralized; the mechanism of debt management is incomplete and non-integrated. The promulgation of the Law on Public Debt Management aims to establish a complete legal framework for effectively mobilizing and using capital, managing debt safely, ensuring transparency, and creating conditions for society-wide oversight of the government's borrowing and repayment activities as well as international integration.

The Ministry of Finance shall take the lead, coordinate with the Government Office to incorporate the opinions of government members, finalize the draft law. The Minister of Finance shall submit the draft law to the Standing Committee of the National Assembly on behalf of the Prime Minister./.