The Government’s regular meeting – August 2011

RESOLUTION

The Government’s regular meeting – August, 2011

The Government on August 30, 31 and September 1, 2011 convened its first regular meeting of the 2011 – 2016 term to discuss and decide the following issues:

1. The Reports: socio-economic performance in August and the first eight months of 2011, socio-economic performance in 2011 and socio-economic development plan for 2012; realization of the Resolution 11/NQ-CP on cutting and shifting public investment capital; socio-economic development plan for a 5-year period (2011 – 2015); evaluation of state budget collection in 2011, State budget estimation in 2012, evaluation of the financial - State budget performance over the past 5 years (2006 – 2010) and financial - State budget performance for the coming 5 years (2011 – 2015); result of realization of the national target programs for the 2006 – 2010 period, implementation of the national target programs in 2011 and proposal of the list of the national target programs for the 2012 – 2015 period; performance of the Resolution made by the Government's regular meeting in July 2011, Government working program in August 2011; outcomes of administrative reform in August 2011; inspection work, settlement of complaints and denunciations, anti-corruption in August 2011   presented by the Minister of Planning and Investment, Minister of Finance, Minister, Head of Government Office; Minister of Home Affairs and the Government's General Inspector.

a) Socio-economic performance in August and the year 2011:

The Government unanimously agreed that socio-economic panorama in the reviewed periods continued to witness positive signals, many socio-economic criteria are forecast to reach and surpass the preset ones. Inflation has been curbed and gradually decreased month by month, consumer price index is 0.93% in August, lowest figure so far in the year; export turnover soared beyond the preset target, trade deficit reduced; State budget collection increased fairly, State budget overspending dipped; foreign currency markets stabilized, foreign currency reserve rose. GDP growth in 2011 is expected to reach about 6%; Industrial production was on rise; agricultural production, though affected by natural disasters and epidemics, still expanded stably and firmly with good crops and high price; service witnessed high speed of development, total retail sales of goods and services boomed. Due attention has  been paid to social welfare, social policies continued to be adopted and implemented, contributing to easing difficulties and gradually improve people's living standard; education and training, healthcare, culture, communication, sports have been upgraded; due attention has been given to job creation, hunger eradication and poverty reduction. Administrative reform and anti-corruption continued to be sped up. External relations made importance achievements. Political security, social order and safety have been maintained; national defense has been enhanced, national sovereignty is in top priority. The above - mentioned achievements affirmed that the measures taken for curbing inflation, stabilizing macro-economy, and ensuring social welfare enshrined in the Politburo’s Conclusion No.  02-KL/TW, the National Assembly’s Resolution No. 59/2011/QH12, the Government’s Resolution 02/NQ and 11/NQ-CP are sound, suitable to the real life and are coming into full play.

However, there have been some shortcomings in socio-economic situation: Inflation decrease but still in high level; high interest rate affected production, business; decrease in investment attraction; securities and real estate market slumped; number of the poor households decreased more slowly than preset target; people's life, especially the poor, workers in the industrial parks, mountainous, minority groups are still facing many difficulties; social evils, traffic accidents and congestion are among pressing issues, especially serious traffic accidents.

In a bid to fully achieve the preset socio-economic targets for the whole year, in the coming months the Government requests ministries, sectors and localities to continue synchronous and comprehensive implementation of measures enshrined in the Politburo’s Conclusion No.  02-KL/TW, the National Assembly’s Resolution No. 59/2011/QH12 and the Government’s Resolution 02/NQ - CP, especially the Resolution 11/NQ-CP focusing on the following solutions:  

- The State Bank of Việt Nam continues regulate the monetary policy in a tightened and effective manner based on the market signal; gradually decrease credit interest rate in line with the decrease of consumer price index's growth, controle the growth of credit borrowing under 20% with the priority for production field, especially agriculture and rural area; ensuring to reach the targets of curbing inflation, decreasing interest rate, the whole year’s GDP growth reaches about 6%; coordinating with the Ministry of Public Security and other related agencies to put the gold, foreign currency sale activities under control as regulated.

- The Ministry of Finance continues regulate the tightened fiscal policy in smooth coordination with the implementation of the tightened monetary policy, with the aim to curbing inflation, stabilizing macro-economy; taking measures to increase budget collection, strive to lower budget overspending to under the figure set by the National Assembly; using the 10% savings from regular spending during the remaining 9 months of 2011 for social welfare;  combinating with the Ministry of Trade and Industry to strengthen the measures on controlling price and market, preventing speculation and market cornering, especially regulate the oil - petrol price balance and management in compliance with the current regulations; urgently implement the tax exemption and reduction according to the National Assembly's Resolution 08/2011/QH13.

- The Ministry of Planning and Investment takes the lead in coordination with the Ministry of Finance, other ministries, agencies and localities to continue the review of public investment cut in compliance with the Government's Resolution No. 11/NQ - CP and Resolution 83/NQ - CP; collecting all State budget capital, Government bond planned in 2011 that were allocated for the works, projects which are improper, or with insufficient procedures, then transfer those money for other urgent works, projects as specified in the Government's Resolution No. 11/NQ - CP and Resolution 83/NQ - CP, especially projects in the field of electricity, for overcoming consequence of natural disaster, national security ensurance, social welfare; the works and projects within the national target program on new rural construction which have been approved and allocated (including capital for local budget balance) are allowed to be carried out to reach the preset targets.

- The Ministry of Planning and Investment takes the lead in coordination with the ministries, agencies and localities to continue to focus on extricating difficulties, giving priority to production, business; immediately review the activities being carried out by the enterprises, especially those facing difficulties, proposing the solutions for resolving difficulties, submitting reports to the Prime Minister.

-  The Ministry of Planning and Investment, State Bank of Việt Nam, the Ministry of Finance direct the related agencies to study, analyze and find out the reason for inflation growing in the country, then to propose basic solutions for effective response in line with the realities, and submit those to the Government for consideration in the September's regular meeting – 2011

- The Ministry of Agriculture and Rural Development, in coordination with agenciens and localities to preside to speed up large-size commodity development and production, apply scientific and technological advances to increase productivity and quality of useful plants and livestock; focus on controlling and securing domestic food security, increasing export of agricultural products, improving income and living standards of people; instruct to speed up breeding, prevent, control and effectively response to epidemic diseases, with the aim to increase foodstuff supply, particularly during the upcoming traditional Lunar New Year; actively response and overcome the consequences of natural disasters, quickly restore production and stabilize people’s life.   

- The Ministry of Natural Resources and Environment, the Ministry of Industry and Trade, the Ministry of Construction coordinate with agencies and localities to temporarily stop licensing for projects on exploration and exploitation of mineral products nationwide; focus on reviewing and assessing the current situation of licensing for exploration, exploitation, processing and export of mineral products; propose measures on effective management and use of mineral resources, save and secure sustainable development target. 

- Ministries, sectors and localities continue to fruitfully realize social welfare policies, particularly for most disadvantaged districts, communes, villages, the poor, people who devoted greatly for the country, ethnic minorities and other vulnerable groups; take care of directing, inspecting and speeding up solution of issues related to legitimate rights and benefits of laborers; pay attention to the establishment of harmonious, healthy and advanced labor relationship in enterprises.

- Ministries, sectors and localities continue grasp thoroughly and deploy effectively the Party and State’s guidelines and resolutions in the field of national defense and security; firmly protect the national sovereignty, hold fast to political security and social order and safety; increase to patrol, inspect and treat strictly the breaches of traffic order and safety; deploy measures on prevention of traffic jam in big cities; quickly strengthen organization and complete the State administrative mechanism; increase the implementation of assigned functions and tasks, particularly taking care of the State management on planning; reorganize classification of management to increase competence, validity and effect of operation; improve active role and creativeness of localities, also ensure the united management of State from Central to localities.    

- The Ministry of Information and Communications coordinates with ministries, sectors and localities to strongly direct press and communication agencies to focus on the popularization of the Party’s guidelines, the State’s law, the Government’s management and administration activities and operations of administrative agencies at all levels; ensure the social agreement for deployment of socio-economic tasks. 

b) Regarding Socio-economic Development Plan in 2012: 

On the basis of assessment on performance of Socio-economic Development Plan 2011, forecast of domestic and international situation, and in accordance with Resolution of the 11^th National Congress of the Communist Party of Việt Nam, the Government determines the general objectives of 2012 as follows: Continue to focus on controlling inflation, stabilize macroeconomics, gain reasonable growth speed attached with the reform of growth model and transfer of economic structure; increase quality, effectiveness and competitiveness of the economy; ensure social security and social welfares, improve people’s life; maintaining political stabilization and strengthen national defense; ensure social security, order and safety; increase the effectiveness of  the works for foreign affairs and international integration.

Accordingly, orientations for a number of key socio-economic targets in 2012 are as follows: Economic growth speed will approximately be 6.5%; trade deficit and State budget overspending will be lower than targets achieved in 2011; consumer price index will increase under 10%; rate of poverty reduction will be 2%, particularly in poor districts. On the basis of such key targets, ministries, sectors and localities coordinate with the Ministry of Planning and Investment to review objectives and tasks, determine other socio-economic targets, propose reasonable measures, and firmly follow up measures set in Resolution No. 11/NQ-CP, focussing on a number of following key issues: (i) continue to consistently perform close and effective monetary policy and fiscal policy in order to control inflation and stabilize macroeconomics; (ii) overcome difficulties, speed up development of production, business, export, particularly in the field of agriculture and rural area; (iii) reform growth model, increase competitive capacity of the economy, including restructure of sectors, fields, regions; restructure investment; restructure State owned enterprises; (iv) increase quality of human resource, speed up scientific and technological application; (v) increase validity and effectiveness of the State management; strengthen national defense, security, foreign affairs; maintain social order and safety, increase corruption prevention and control; (vi) focus on work of communication and popularization, create agreement and consent of will and activities in deployment of national development targets.

The Ministry of Planning and Investment and the Ministry of Finance are assigned to receive opinions from Cabinet members, complete Report on socio-economic performance of eight months and 2011; forecast socio-economic development plan in 2012; Report on assessment of State budget performance in 2011 and estimates of State budget’s use in 2012 and submit it to the Politburo, Central Executive Committee of Communist Party of Việt Nam and the National Assembly for approval.     

c) Regarding Five-year Socio-economic Development Plan in the 2011- 2015 period, Five-year Financial- State budget Plan in the 2011- 2015 period:

The Government agrees with principle as follows: Five-year Socio-economic Development Plan in the 2011- 2015 period will follow up Resolution of the 11^th National Congress of the Communist Party of Việt Nam and Socio-economic Development Strategy in the 2011- 2020 period; on such basis, determine development opinion, general objectives, socio-economic development norms, and measures on deployment of large breakthrough phases; define tasks, development orientation of sectors and restructure the economy for suitably and feasibly.

The Ministry of Planning and Investment and the Ministry of Finance receive opinions from Cabinet members, complete report on Five-year Socio-economic Development Plan in the 2011 – 2015 period, report on performance of Five-year Financial- State Budget Plan in the 2006 – 2010 period and Five-year Financial- State Budget Plan in the 2011 – 2015 period to submit to the Politburo, Central Executive Committee of Communist Party of Vietnam and the National Assembly for approval.

d) The Government gave opinions to the Report on performance of national target programs in the 2006 – 2010 period, deployment of national target programs in 2011 and List of national target programs in the 2012- 2015 period.   

The Ministry of Planning and Investment cooperates with the Office of Government and relevant sectors to review the List of national target programs in the 2012- 2015 period in the Report; determine targets, scale and objects of programs that are suitable; combine programs and projects; classify management and organize effective performance; avoid coincidence and drain; complete Report on performance of national target programs for the 2006 – 2010 period, deployment of national target programs in 2011 and proposal of List of national target programs for the 2012-2015 period that will be submitted to the Prime Minister for consideration and approval on September 2011.

2. The Government discussed and gave opinions to the Report on land inventory results of the 2005 – 2010 period; land use plan until 2020 and the 2011-2016 land use plan submitted by the Minister of Natural Resources and Environment. 

The Minister of Natural Resources and Environment cooperates with related sectors to receive opinions from the Cabinet members, complete Report on land inventory results of the 2005- 2010 period, land use plan until 2020 and the 2011-2016 land use plan that will be submitted to the Prime Minister, before the Minister is authorized by the Prime Minister and on behalf of the Government to submit it to the National Assembly. 

3. The Government discussed the 2011-2016 Action Plan submitted by the Minister of Planning and Investment. 

The Government requires the Cabinet members to give opinions on the 2011-2016 Action Plan. The Ministry of Planning and Investment cooperates with the Office of Government to review and complete the Action Plan, then submit it to the Government for consideration and approval at the Government’s regular meeting on September 2011.

4. The Government gave opinions on amendments and supplements of the Government’s working regulations submitted by the Minister-Chairman of the Office of Government.

The Office of Government presides and receives opinions from the Cabinet members, draft the 2011- 2016 working regulations, then apply it for opinions from the Cabinet members; after such activities, the Office of Government then review and complete the draft of working regulations that will be submitted to the Prime Minister for consideration and approval.

5. The Government considered and gave opinions on the 13^th National Assembly’s law and ordinance establishment Program submitted by the Minister of Justice.

The Ministry of Justice coordinates with the Office of Government and related ministries and sectors to receive opinions from the Cabinet members, review a list of draft of laws and ordinances, secure necessity and feasibility, complete Statement of such program. The Minister of Justice authorized by the Prime Minister and on behalf of the Government submits it to the National Assembly Standing Committee and National Assembly. 

6. The Government gave opinions on draft Law of Justice Examination submitted by the Minister of Justice; The Ministry and the Minister-Chairman of the Office of Government report and summarize opinions from the Cabinet members on the draft law.

The Ministry of Justice cooperates with the Office of Government to receive opinions from the Cabinet members, complete the draft. The Minister of Justice is authorized by the Prime Minister and on behalf of the Government makes reports to the National Assembly Standing Committee and National Assembly./.