Directive No. 33/2004/CT-TTg on building the five-year socio-economic development plan for 2006-2010

DIRECTIVE

On building the five-year socio-economic development plan for 2006-2010

The five-year socio-economic development plan from 2006 to 2010 plays a particularly important role in successfully implementing the ten-year socio-economic development strategy from 2001 to 2010 proposed at the Ninth National Congress of the Communist Party of Vietnam and meeting the demands of the new situation.

To build a good five-year socio-economic development plan from 2006 to 2010, the Prime Minister instructs relevant ministries, sectors, and levels from central to local and grassroots levels to thoroughly understand the following issues:

I. REQUIREMENTS FOR THE 2006-2010 PLAN

The five-year socio-economic development plan from 2006 to 2010 must meet the requirements of comprehensive and profound reform in all aspects of economic and social activities, closely linked with international economic integration.

Quality of development must be prioritized: rapid economic growth with high efficiency and competitiveness; ensuring macroeconomic balance; vigorously promoting human factors, investing more in human resource development, intensifying poverty reduction efforts, improving material and spiritual living standards of the people, combating social evils; protecting and improving the ecological environment.

Relevant ministries, sectors, and levels from central to local must:

1. Review and adjust industry and product development plans, especially promptly adjusting planning for the steel, cement, and automobile industries; regional and territorial socio-economic development planning that aligns with market economy requirements, encompassing all economic components and looking ahead to 2020.

2. Plan objectives must take into account that Vietnam has fully integrated into the ASEAN Free Trade Area (AFTA) and initially joined the World Trade Organization (WTO), facing intense competition in bilateral and multilateral cooperation.

3. Focus more on quality growth targets: in the 2006-2010 five-year plan, narrow quantitative indicators and expand qualitative growth and development indicators. In addition to economic indicators, it is necessary to calculate and determine indicators reflecting the quality of life, human development, social progress, and environmental protection.

4. The five-year plan must fully specify all goals determined in sectoral and field development strategies, comprehensive growth and poverty reduction strategies, Vietnam's Millennium Development Goals, and Vietnam's international commitments.

5. In addition to existing contents in previous plans, study and supplement new contents linking economy and society: macroeconomic stability; poverty reduction; sustainable development; improving the quality of life; ethnic and religious values; women and gender equality; youth; public investment programs; methods of monitoring and evaluating plan implementation, especially community oversight...

6. Vigorously unleash productive forces, especially those belonging to non-state economic sectors. Maximize domestic resources, viewing this as a decisive factor, while also fully utilizing external resources, using all funds effectively for development.

Utilize state-managed resources better to meet non-profit social infrastructure needs. Further improve economic and social infrastructure.

Publicly and transparently allocate and manage the budget, creating conditions for citizens to participate in selecting targets, projects, and supervising project implementation at the local level.

7. In calculating the plan, study and apply international calculation methods and international standards (such as bad debt criteria, poverty standards, budget balance...).

8. Continue decentralizing and granting more authority to local governments at all levels in building, organizing, and managing their own socio-economic development plans to promote initiative, creativity, and accountability before the people and the community. Provincial level is primarily responsible for cultural and social development and the livelihood of the people in its jurisdiction. The five-year socio-economic development plan from 2006 to 2010 not only serves leadership and management by Party and State agencies but also guides development and attracts the attention of all economic sectors, especially investors both domestic and foreign.

9. Reform the plan-building process towards transparency, expanding participation and contribution from various stakeholders. During the process of building the five-year plan, ministries, sectors, and centrally governed cities need to organize consultations with research institutions, universities, non-governmental organizations, social strata, communities, especially investors and businesses.

II. ON THE CONTENTS OF THE 2006-2010 PLAN, THE FOLLOWING ISSUES MUST BE GIVEN SPECIAL ATTENTION:

1. Evaluating the implementation of the 2001-2005 five-year plan

Based on the implementation of the three-year plan from 2001 to 2003, estimated implementation of 2004, and projected plan for 2005, evaluate the implementation of the 2001-2005 five-year plan objectives across all aspects of socio-economic development, poverty reduction, especially comparing with the goals mentioned in the Ninth Plenary Session Resolution of the Ninth Central Committee of the Communist Party of Vietnam.

Along with evaluating the goals set by the National Assembly, it is necessary to assess the implementation of major policies and measures to ensure sustainable development, economic restructuring, including restructuring of economic sectors, economic components, labor structure, and economic regions.

Evaluate the management mechanism and the organization and implementation of the plan; administrative reform focusing on the implementation of specific details of Party Resolutions and State regulations, discipline and rules compliance, streamlining administrative procedures, and the quality of cadres.

In addition, it is necessary to evaluate the results of implementing the Central Committee's Resolution No. 3 of the Ninth Congress on continuing to reorganize, renew, develop, and improve the efficiency of state-owned enterprises; Resolution No. 5 of the Ninth Central Committee on developing cooperative economy, cooperatives, private sector economy; accelerating industrialization and modernization of agriculture and rural areas during the period of 2001-2010; the conclusion of the Sixth Plenary Session of the Ninth Central Committee of the Party on education and training, science and technology; Resolution No. 07/NQ-TW of the Politburo on international economic integration...

When summarizing and evaluating the situation, it must ensure objectivity and honesty, accurately reflecting reality. Focus on analyzing and deeply evaluating the quality of growth in each industry and locality; the competitiveness of major products; the exploitation and utilization of resources, especially land resources and the current status of land use; the quality of labor force and its utilization; the exploitation and utilization of material and technical facilities, application of scientific achievements and technological innovation; the mobilization and utilization of various sources of capital, including: state budget, state investment credit and commercial bank credit, capital from the community, foreign direct investment (FDI) capital, corporate finance.

When analyzing the above issues, it is necessary to clearly identify the achievements made during the 2001-2005 plan, delve into the existing weaknesses and shortcomings, difficulties; determine both subjective and objective causes for both accomplishments and shortcomings; specify the responsibility of each sector and level to draw lessons for determining specific goals and measures for the 2006-2010 plan.

2. Forecasting domestic and international context during the period of 2006-2010

Our country will formulate and implement the 2006-2010 five-year plan under conditions where domestic and international situations have many changes, with intertwined difficulties and advantages, requiring ministries, sectors, localities, and organizations to seize opportunities, grasp favorable factors, while forecasting difficulties and unfavorable aspects to promptly adopt appropriate solutions to mitigate adverse impacts on economic development.

a. Regarding the domestic context: after 20 years of renovation, the system of institutions for a market economy has been established at a certain stage, many new mechanisms and policies have had positive impacts on socio-economic development; the political and social stability of the country is a solid foundation creating a favorable environment for development; the scale and potential of the national economy have been expanded and strengthened.

However, alongside these advantages, our country's economy continues to face many severe difficulties: the quality of development, effectiveness, and competitiveness of the economy are still far below those of countries in the region and internationally, while economic integration has entered a new phase that is more decisive and intense; many elements of the market economy have not been established synchronously, hindering production, business, and investment activities; corruption, bureaucracy, and waste remain serious problems; many aspects of social fields are still very pressing...

b. Regarding the international context: the general trend is that the world economy may continue to recover and develop, with global economic growth and that of major partners of our country over the next five years likely to be better than before. The international market may become more active, with ODA and FDI flows gradually recovering. However, the political situation globally and regionally in the 2006-2010 period still harbors complex and unpredictable developments, significant difficulties may persist. A global energy crisis leading to a global economic crisis could occur. Intense competition and polarization, the influence of major powers will strongly affect our country's economy.

The most prominent feature of the upcoming period is that the process of international economic integration will profoundly impact the adjustment of structures, economic reforms, and administrative reforms, as well as the speed and quality of economic growth and social development in our country. Based on evaluations, analyses, and forecasts of the international and domestic contexts, all levels, sectors, and localities need to analyze and assess the favorable and difficult impacts on their respective industries, fields, and localities, identify advantages to leverage and fully anticipate difficulties to proactively overcome them effectively.

3. Objectives and main tasks of the 2006-2010 five-year plan

a. Objectives:

- Strive to maintain high and sustainable economic growth rates, while making significant improvements in the quality, efficiency, and competitiveness of the economy, moving the country step-by-step out of underdevelopment and low-income status;

- Vigorously develop science and technology, significantly improving the technological level in the national economy;

- Create all conditions for deeper and higher-level integration with regional and global economies. Exploit the opportunities of international integration for national development; effectively utilize external economic relations;

- Accelerate the construction of a synchronous socialist-oriented market economy system;

- Develop culture and society in tandem with economic growth. Significantly enhance the quality of education, training, and human resource development;

- Continuously improve people's living standards, intensify poverty reduction, create more jobs, and significantly reduce social evils. Develop and gradually perfect the economic and social infrastructure;

- Protect and improve the environment;

- Maintain political stability and social security, firmly safeguarding national independence, territorial integrity, and national security.

b. Development orientation and main tasks:

- Strive to achieve an annual average economic growth rate higher than the previous five years and prepare for the next five-year plan. Increase the per capita GDP in 2010 to double that of 2000. Accelerate the restructuring of the economic structure and labor force towards industrialization and modernization, rapidly increase the technological content in products, and reduce material consumption generally and energy consumption specifically.

- Focus on exploiting the strengths of service sectors with much potential. Vigorously develop high-value services such as postal telecommunications, aviation, finance, banking, insurance, consulting, and tourism. Continue to develop transportation and trade sectors; expand and enhance domestic market purchasing power.

- Develop industry based on technological innovation; make significant progress in the quality, efficiency, and competitiveness of certain industries and products. Each sector should select key products to encourage development into highly competitive products.

- Basically complete the reorganization, reform, development, and enhancement of the effectiveness of state-owned enterprises. Vigorously promote the shareholding reform of state-owned enterprises, including corporations and large enterprises. Strictly control monopolies and special privileges, eliminate unreasonable protectionism inconsistent with the process of international economic integration.

- Create all favorable conditions to strongly develop the private economic sector. Implement policies to support the development of small and medium-sized enterprises to address labor and employment issues.

- Fully and effectively implement commitments and integration timelines already signed, primarily those within the ASEAN Free Trade Area (AFTA) and World Trade Organization (WTO). Strengthen bilateral and multilateral cooperation with important and long-term partners. Timely amend and develop legal documents consistent with integration requirements. Expand and significantly enhance the effectiveness of foreign economic activities; create all favorable conditions for rapid export growth.

Establish a fair, transparent, stable, and open business investment environment...

- Emphasize capital mobilization for development investment. Maximize and effectively utilize domestic and foreign resources (capital, technology, and management experience) to develop productive forces and socio-economic infrastructure. Restructure investment towards increasing scientific and technological content, enhancing competitiveness, adding value, and improving economic efficiency. Basically complete the infrastructure system. Implement incentive mechanisms to appropriately invest in key economic regions; provide more support for investment in areas with many difficulties, remote areas, ethnic minority regions.

- Enhance national financial capacity and strength; continue to innovate and improve the financial and monetary system; maintain macroeconomic balance stability; develop capital markets and real estate markets to meet socio-economic development needs.

- Strengthen research and application of scientific and technological achievements in the economy. Significantly improve the technological level in the economy, fully leverage internal capabilities in science and technology to directly serve the process of industrialization and modernization of the country. Strengthen resource management and environmental protection.

- Reform the education and training sector, strengthen human resource training and improve quality for the cause of industrialization, modernization, and international integration, focusing on high-level personnel, capable managers, skilled technical workers, and rural human resources to implement economic and labor force restructuring; improve educational quality at all levels.

- Develop the health care, physical culture, sports, and information and cultural sectors; significantly improve health indicators for the population. Continue to vigorously develop a progressive culture deeply imbued with national characteristics; rapidly increase the material and spiritual living standards of the people, implement gender equality and women's advancement.

Reduce urban unemployment and rural underemployment; ensure the eradication of poverty-stricken households and a rapid reduction in the number of poor households according to international standards, especially in particularly difficult areas. Develop social security networks to assist the poor; build a sustainable social structure.

- Effectively resolve major social issues. Combat social evils, especially crime, drug abuse, HIV/AIDS; basically resolve traffic accident issues.

- Protect and improve the environment, creating conditions for sustainable and effective socio-economic development.

- Achieve comprehensive and profound changes in administrative reform, curb bureaucratic, corrupt, wasteful, and harassing practices. Continue to build a socialist rule-of-law state, promote democracy, strengthen discipline, consolidate the great unity of the people.

- Consolidate national defense and security, stabilize politics and society, and expand external relations, maintaining a peaceful and stable environment, facilitating the construction and defense of the nation.

III. PROGRESS IN THE DEVELOPMENT OF THE 2006-2010 FIVE-YEAR PLAN AND ASSIGNMENT OF IMPLEMENTATION

1. Regarding the progress in developing plans:

- From September 2004: The Ministry of Planning and Investment organizes research, coordinates with ministries, sectors, and localities to build the main socio-economic indicators framework to be submitted to the Prime Minister. Based on the Prime Minister's directives, complete and disseminate to ministries, sectors, and localities to have a basis for organizing research at the ministry, sector, and locality levels.

- From October 2004 to December 2004: Ministries, sectors, and localities develop the 2006-2010 five-year plans for their respective ministries, sectors, and localities.

- From December 2004 to March 2005: The Ministry of Planning and Investment compiles the five-year plans of ministries, sectors, and localities, builds the national five-year socio-economic development plan from 2006 to 2010; organize discussions and seminars with scientists, ministries, sectors, and localities in various regions, domestic and international experts, submit the draft five-year plan to the Government and the Politburo.

- From April 2005 to May 2005: Complete the five-year plan according to government directives, continue to organize discussions and seminars.

- Report to the Central Committee's Executive Board in the second quarter of 2005.

- Submit for the National Assembly's initial review in November 2005.

- After the Tenth National Party Congress, submit to the National Assembly for approval of the plan.

2. Regarding division of responsibilities:

a. The Ministry of Planning and Investment:

Shall take the lead and coordinate with the Ministry of Finance to develop plans for mobilizing domestic and foreign resources to ensure economic and social development goals (including ODA, FDI, and various economic sectors); balance savings and consumption; investment capital balance for development.

Coordinate with relevant ministries to study, develop, and consolidate financial balances: national financial balance, including state budget balance; international payments, import-export balance; labor and employment balance. Organize guidance on developing and consolidating the five-year socio-economic development plan from 2006 to 2010.

Urge and inspect the development of the five-year socio-economic development plan from 2006 to 2010 by ministries, sectors, and centrally-administered provinces and cities.

Consolidate the national five-year socio-economic development plan from 2006 to 2010 and submit it to the Government and leading Party and State agencies.

b. The Ministry of Finance shall take the lead and coordinate with the Ministry of Planning and Investment and relevant ministries to study and develop national financial balance, state budget balance, central and local government budget balance, plans for mobilizing resources into the state budget; government debt plan, national debt plan.

c. The General Statistics Office: coordinate with the Ministry of Planning and Investment and related agencies to determine the system of planning indicators and calculation indicators, particularly those reflecting quality, to guide ministries, sectors, and localities in developing the five-year plan.

d. Ministries, sectors, State-owned Corporations:

Coordinate with the Ministry of Planning and Investment to develop the five-year socio-economic development plan and major sectoral balances.

Ministries managing National Target Programs, Program 135, Poverty Eradication and Employment Program, the Five Million Hectares of Forests Project, and other large programs and projects shall take the lead and coordinate with the Ministry of Planning and Investment and the Ministry of Finance to work with related ministries, sectors, and localities to assess the implementation and effectiveness of National Target Programs, Program 135, Poverty Eradication and Employment Program, the Five Million Hectares of Forests Project, and other large programs and projects under their jurisdiction; at the same time, research and propose to the Government the content and mechanisms for implementing National Target Programs for the next five-year plan.

e. People's Committees of centrally-administered provinces and cities: Guide, organize, and direct the Provincial Departments of Planning and Investment and Finance to closely coordinate with other departments and sectors to develop the five-year socio-economic development plan.

Ministers, heads of ministerial-level agencies, heads of governmental agencies, Chairpersons of People's Committees of centrally-administered provinces and cities, and General Directors of State-owned Corporations are responsible for effectively implementing this Directive.