Decision No. 30/NQ-CP of the Government at the regular meeting of the Government in June 2009

RESOLUTION

The regular monthly meeting of the Government in June 2009

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On July 6-7, 2009, the Government convened its regular monthly meeting for June 2009 to discuss and adopt the following issues:

1. Reports on: the economic and social situation in June and the first six months of 2009; forecast of the global and domestic economic situation; review of guidance and management in the first half of the year and the program of work for the second half of 2009 by the Government; macroeconomic developments both domestically and internationally, implementation of measures to prevent economic decline and policy recommendations; inspection work, handling of complaints and denunciations, and anti-corruption efforts in June 2009; administrative reform work in June 2009; the implementation of international commitments by Vietnam; the progress in drafting and submitting laws and ordinances in the second quarter of 2009 presented by the Minister of Planning and Investment, the Chairman of the Government Office, the Minister of Finance, the Chief Inspector of the Government, the Minister of Home Affairs, the Minister of Foreign Affairs, and the Minister of Justice.

From late 2008 to the first six months of 2009, the financial crisis and global economic recession had a negative impact on many aspects of our country's economic and social life. Under the leadership of the Party, the Government, and relevant ministries, sectors, and localities, proactive forecasting of the situation was conducted, correct goals were set, a high sense of responsibility, unity, consensus, and flexibility were maintained in guidance and management. Measures were proposed and implemented resolutely to prevent economic decline, maintain macroeconomic stability, sustain economic growth, and ensure social welfare. The Government focused on balancing the prevention of economic decline with inflation control; linking short-term, situational measures with long-term, fundamental measures; simultaneously stimulating economic growth while prioritizing social welfare; continuing existing economic and social policies under normal conditions while swiftly implementing new mechanisms and policies to meet new requirements; combining specific economic and social management issues with institutional development work.

In the first six months of the year, with the concerted efforts of the entire political system, business community, and the people, we have prevented economic decline and gradually achieved growth momentum: since February 2009, the economy has shown a gradual upward trend, with each subsequent month surpassing the previous one. The gross domestic product growth rate in the first quarter was 3.1%, in the second quarter it was 4.51%, and for the first six months, it reached 3.9%, which is a relatively good growth rate given the global economic downturn where most countries experienced negative growth rates; industrial and construction production are showing recovery trends; agricultural, forestry, and fishery production are stable; the service sector is experiencing high growth; macroeconomic stability continues to be maintained and major economic balances are secured; flexible fiscal and monetary policies have been effective, encouraging investment, production, and consumption; export value continues to increase monthly; total social investment capital has increased, and the disbursement progress of basic construction investment funds has improved; social welfare assurance work has been strengthened, focusing on poverty reduction, care for the poor, job creation, social housing, healthcare, education, basic wage increases, etc.; workers' income has continued to improve; domestic market purchasing power has gradually increased; consumer price index fluctuations remain at low levels; administrative reform, complaint resolution, and anti-corruption efforts have been emphasized and made significant progress; foreign affairs and international economic cooperation have been effective, contributing significantly to economic growth, consolidating peace, and enhancing Vietnam's position and reputation on the international stage; politics and society are stable, creating consensus within the entire political system, business community, and the public; national defense and security continue to be maintained; social order and safety have improved. These achievements provide a foundation and confidence for us to continue striving to fulfill the tasks of economic and social development throughout the year.

Although there have been positive changes in the economic and social situation in the first six months of 2009, many difficulties and challenges still exist to achieve the set economic and social development targets: the economic growth rate and production sector growth rates are still lower than planned; macroeconomic stability remains uncertain; exports continue to face difficulties; rapid increases in total payment means and credit debt create pressure on the consumer price index; state budget revenue is lower compared to the same period last year; implementation of some social welfare policies is slow; natural disasters and diseases continue to cause difficulties for production and people's lives; some pressing social issues are not being resolved quickly enough; administrative reform does not fully meet requirements...

Adhering to the general objectives and socio-economic development targets outlined in the Resolution of the National Assembly, Session XII, Fifth Meeting, the Government has identified the key tasks for guidance and management from now until the end of the year as striving to achieve a gross domestic product growth rate of about 5%; maintaining macroeconomic stability, controlling the consumer price index increase to around 7%, and keeping the budget deficit below 7%; continuing to effectively implement social welfare assurance tasks, national defense, and security, maintaining political stability and social order and safety.

The Government requests that ministries, sectors, and localities continue to implement effectively the measures and policies set forth in Resolution No. 9 of the Central Committee (10th tenure), the conclusions of the Politburo, the Resolutions of the National Assembly, the Government, and the decisions of the Prime Minister aimed at preventing economic decline, preventing inflation, maintaining macroeconomic stability, sustaining economic growth, and ensuring social security, with a focus on strictly directing the following measures:

- Continuing to review and remove difficulties and obstacles, while intensifying inspections and urging strict implementation to effectively carry out measures to stimulate investment and consumption, promote production, business, and exports.

- The Ministry of Agriculture and Rural Development directs localities to ensure sufficient irrigation water, fertilizers, pesticides, and support high-quality crop and livestock seeds for farmers; proactively prevent and control diseases from spreading widely; coordinate with relevant ministries, sectors, and localities to properly forecast and prevent, mitigate the consequences of natural disasters and floods, minimizing loss of life and property of the people; coordinate with the Ministry of Industry and Trade and the State Bank to propose solutions for rice and agricultural product sales for farmers.

- The Ministry of Industry and Trade focuses on directing reviews and removing difficulties and obstacles related to investment and production procedures; coordinate with the Ministry of Foreign Affairs to promote trade promotion activities, directly support major traditional export contracts, explore new export markets with potential; develop trade promotion programs and intensify domestic market exploitation, particularly rural markets; strengthen anti-smuggling and commercial fraud measures to protect domestic production.

- The Ministry of Planning and Investment takes the lead and coordinates with relevant ministries and sectors to establish inter-ministerial inspection teams to monitor the implementation of economic stimulus packages, ensuring correct target usage, purpose, effectiveness, contributing to preventing economic decline; urgently complete the Decree guiding the implementation of the Law amending and supplementing certain articles of laws related to basic construction investment, to be submitted to the Government for issuance in July 2009.

- Continue to focus on accelerating disbursement progress of projects using state budget funds, government bonds, ODA funds, especially large-scale projects in infrastructure, agriculture, and rural development fields. The Ministry of Planning and Investment will consider reallocating state budget investment funds of central ministries and sectors, additional funding targets at the local level, and government bond funds that have not been implemented or cannot be fully disbursed by August 2009.

- The Ministry of Finance, the State Bank, the Ministry of Industry and Trade, and the Ministry of Planning and Investment closely monitor domestic and international economic developments, continue to direct and manage financial and monetary policies flexibly to maintain major balances, ensure macroeconomic stability, promote economic growth, and actively and effectively prevent re-inflation; guide the implementation of tax deferral, reduction, exemption policies, interest rate support, loan guarantees, creating favorable conditions for businesses to develop production and business, enhance competitiveness, boost exports and goods consumption, and curb the trade deficit.

- The Ministry of Health continues to focus on directing the prevention and control of dengue fever and influenza A (H1N1) epidemics, with appropriate handling plans to avoid impacts on economic and social development, particularly tourism, avoiding overloading at certain locations; the Ministry of Science and Technology and the Ministry of Natural Resources and Environment study and propose advanced and effective waste treatment technologies to guide localities in investing in building waste treatment facilities in residential areas and medical waste treatment facilities in hospitals; the Ministry of Planning and Investment and the Ministry of Finance should allocate sufficient capital for this investment task, striving to complete it thoroughly within two years, 2009-2010.

- The Ministry of Natural Resources and Environment leads and coordinates with the Ministry of Construction to establish strict mandatory mechanisms for projects to implement effective environmental management plans; concentrate on resolving serious pollution points, especially new and expanded projects.

- The Ministry of Planning and Investment is responsible before the Government for economic forecasting work, while relevant ministries and sectors enhance and improve their capacity for researching, analyzing, and forecasting domestic and global economic trends to timely propose appropriate solutions and policies based on reality; strengthen coordination in handling tasks and institutional development work.

- The Ministry of Home Affairs leads the organization of mid-term reviews and evaluations of the implementation of Decree No. 13/2008/ND-CP on the organization of specialized agencies under provincial People's Committees and Decree No. 14/2008/ND-CP on the organization of specialized agencies under district, town, and city People's Committees under provinces, to thereby research and propose organizational structures suitable to reality and effectively enhance state management efficiency; starting from the functions and responsibilities of state management agencies at the ministry, sector, and local levels, especially those with many large economic zones but only three Deputy Chairmen, to study and propose increasing the number of Vice Ministers or equivalents, Deputy Chairmen of provincial People's Committees directly under the Central Government.

- Ministries, sectors, and localities pay attention to identifying, training, and deploying young and female cadres with ability and integrity to join the leadership team of state agencies and organizations. Continue to vigorously implement administrative reform, anti-corruption efforts linked to the movement of learning and practicing the moral example of President Ho Chi Minh to effectively fulfill assigned tasks.

- Ministries and ministerial-level agencies shall urgently submit to the Government guiding documents for laws and ordinances that become effective before July 1, 2007; complete preparations for issuing and implementing guiding documents and effectively enforcing laws and ordinances that become effective on July 1, 2009 and August 1, 2009; focus on preparing draft laws for submission at regular sessions of the Government in the third quarter of 2009; organize the implementation of the law and ordinance program for 2010 immediately following the Prime Minister's decision on division of work. The drafting of draft laws should be flexible, based on the content of each project to establish framework provisions or detailed provisions. After this session, the Government plans to hold a separate session to provide opinions on some draft laws in the third quarter work program of 2009.

- The Ministry of Information and Communications shall continue to direct mass media organizations to disseminate and promote the Party’s policies, the State’s policies, the Government’s directives, the Prime Minister’s directives, achievements in economic and social development, aiming to create consensus in society, encourage the people and businesses to be confident and continue striving to achieve set goals and tasks; ministries, sectors, and localities shall strengthen their proactive provision of full and timely information to meet the public's right to information.

2. The Government approves the draft Decree amending and supplementing certain articles of Decree No. 204/2004/ND-CP dated December 14, 2004 on salary systems for civil servants, public officials, and members of the armed forces submitted by the Minister of Home Affairs.

The Ministry of Home Affairs shall take the lead, coordinate with the Ministry of Labor, Invalids and Social Affairs, the Ministry of Justice, the Government Office, and related agencies, incorporate the opinions of Government members, perfect the above draft Decree, and submit it to the Prime Minister for signature and issuance.

3. The Government approves the draft Decree amending and supplementing certain articles of Decree No. 127/2007/ND-CP dated August 1, 2007 detailing the implementation of certain articles of the Law on Technical Standards and Regulations, and Decree No. 132/2008/ND-CP dated December 31, 2008 detailing the implementation of certain articles of the Product Quality Law submitted by the Minister of Science and Technology.

The Ministry of Science and Technology shall take the lead, coordinate with the Ministry of Justice, the Government Office, and related agencies, incorporate the opinions of Government members, perfect the above two draft Decrees, and submit them to the Prime Minister for signature and issuance.

4. The Government has discussed draft Laws on the State Bank of Vietnam (amended) and on Credit Organizations (amended) submitted by the Governor of the State Bank of Vietnam and reported by the Minister, Head of the Government Office, summarizing the opinions of Government members.

a. Regarding the draft Law on the State Bank of Vietnam (amended): As the basic legal framework regulating the organization and operation of the State Bank of Vietnam, the Law on the State Bank of Vietnam has contributed to gradually improving the institutional framework, organizational structure, and operations of the State Bank according to market mechanisms, enhancing the management and operational efficiency of the State Bank and the banking system. However, some provisions of the Law have not met the requirements for performing the functions and responsibilities of the State Bank in the process of international integration; in monetary policy formulation and enforcement; supervision of banking activities and handling troubled credit organizations; and disclosure of information on monetary policy, banking... Therefore, the construction and promulgation of the amended Law on the State Bank of Vietnam is necessary to address the shortcomings of the current Law, enhance the responsibility and authority of the State Bank of Vietnam in formulating and enforcing monetary policy in a market economy, reform the inspection and supervision system of credit organizations, and fulfill international commitments...

b. Regarding the Law on Credit Organizations (amended): After more than ten years of implementation, the Law on Credit Organizations has created a healthy legal environment for the organization and operation of the credit organization system, contributing significantly to the development in scale, quality, and effectiveness of credit organizations and strengthening the efficiency of state management. Despite this, in light of the development of the economy and the requirements of international economic integration, the current Law on Credit Organizations has revealed several limitations and inconsistencies affecting the development of the credit system and the need to improve safety in the operation of the system, some provisions still conflict with other laws... Therefore, it is necessary to promulgate the amended Law on Credit Organizations to address these inconsistencies and ensure the consistency of the legal system, meeting the requirements of international economic integration and building a modern credit organization system.

The State Bank of Vietnam shall report to solicit the opinions of the Politburo on the necessity of amending and the direction of content amendments for the two aforementioned draft laws; based on the opinions of the Politburo, take the lead, coordinate with the Ministry of Justice, the Government Office, and related agencies, incorporate the opinions of Government members, perfect these two draft laws, and submit them to the Prime Minister for comments before submitting to the Standing Committee of the National Assembly./.