The Government’s regular meeting - March 2011

RESOLUTION

The Government’s regular meeting – March 2011

The Government on March 30, 2011, convened its regular meeting to discuss and decide the following issues:

1. Reports on: Socio-economic performance in March and Q1/2011 and the outcomes of the implementation of the Government’s Resolution No. 11/NQ-CP; policies on financial assistance to low-income groups and poor households; delay of corporate tax payment, particularly by small- and medium-sized enterprises; commercial banks’ earnings and profits, necessary and proper proposals for reasonably ensuring the balance of earnings between the commercial banks and other production and business fields; the outcomes of the implementation of the Government’s February Resolution No. 02/NQ-CP, the Government’s working program for March; inspection work, settlement of complaints and denunciations, and anti-corruption in March; administrative reform in March; the outcomes of the implementation of the international commitments in Q1/2011. The reports were presented by the Minister of Planning and Investment, the Minister of Finance, the Governor of State Bank of Việt Nam, Minister-Chairman of the Office of Government, the Government Inspector, the Minister of Home Affairs, and the Minister of Foreign Affairs.

The Government praised and highly appreciated the efforts and determination made by all levels and sectors, business community, and the whole people who upheld the consensus in synchronously and fruitfully realizing the Government’s Resolution No. 02/NQ-CP, dated on January 9, 2011, on key measures for implementation of socio-economic development plan and budget estimate in 2011; the Resolution No. 11/NQ-CP, dated on February 24, 2011, on key measures for controlling inflation, stabilizing macro-economy and ensuring social welfare. The above efforts proved effective as the socio-economic performance in March and Q1/2011 was positive. Macro-economy continues maintaining momentum: The management of currency, credit, interest rates, foreign currency and gold market has been gradually stabilized; measures for tightening budget expenditure and reducing public investment have been strictly observed by all levels, sectors, and businesses, with clearly defined results; budget collection increased; export value triples the preset target; trade deficit has shown signs of decrease. In spite of the measures taken to control inflation, the GDP in Q1/2011 still expanded at 5.43% against the same period last year (0.4% lower); industrial production in Q1/2011 rose by 14.1%, much higher than the preset target; agricultural-forestry-aquaculture production value climbed by 3.5%; total retail sale of goods and services went up by 22.6%. Social welfare has been paid more attention and sped up. People’s life, particularly poor, old and single, disabled persons, has been cared for, especially during the last Lunar New Year holidays. Culture, sports, healthcare, education, and job creation continued receiving more investment. The diplomatic and economic relations between Việt Nam and other countries saw a big increase. Administrative reform has been boosted. The settlement of complaints and denunciations, and anti-corruption have been paid due attention. National defense and security have been enhanced; the political and social stability continued to be ensured; social order and safety is maintained.

In the coming months, the national economy will face with huge difficulties and challenges: Slow and fragile global economic recovery; rising prices of crude oil, basic materials, food and foodstuff as well as high inflation risks in other countries, all put pressure on domestic consumer price index. Political crisis in Northern Africa and the Middle East, especially the war in Libya, serious losses caused by earthquake and tsunami in Japan have affected the political-socio-economic stability and development in the region and the world. Domestically, the high consumer price index in the context of necessary price adjustments of petrol, electricity has contributed to making it hard for the realization of the inflation curbing target; interest rates are high; power supply is limited; complicated natural disasters and epidemics considerably affect production and business, leading to possible macro-economic instability and adversity against people’s life, particularly poor ones. Some social issues have not been well addressed like traffic congestion and accidents, environmental pollution, sanitation and food safety, increasing social evils and crimes.

Thus, to fulfill the preset target for 2011, the Government resquested ministries, sectors and localities to grasp thoroughly, effectively and synchronously the Politburo’s Conclusion on socio-economic situation in 2011; the Government’s Resolution No. 02/NQ – CP dated on January 9 and especially the Resolution No. 11/NQ - CP dated on February 24 on key measures for controlling inflation, stabilizing macro-economy, and ensuring social welfare, including the following central tasks:

- The State Bank of Việt Nam will continue to actively, flexibly, and properly regulate monetary tools, including interest rates and the volume of money supply, in order to keep the credit growth under 20% and total means of payment at around 15-16%; to take necessary measures to ensure the healthy operation and safety of the banking system; to direct commercial banks to reduce business costs  and spending items for lower interest levels; to quickly finalize and submit to the PM for approval of regulations on punishments of such cases as illegal trading of gold and foreign currency; to put forth roadmap for reducing dollarization of the economy and for gradually shifting mobilization-lending relation of foreign currency by credit organizations to buying-selling relation, then submit to the PM for approval in April, 2011; to quickly finalize and submit to the Government the draft decree on gold trading management towards strict control over gold bar import and trading, step by step reducing and removing the use of gold as a mean of payment; to calculate the overall balance of payment means to the end of this year, ensuring adequate source of foreign currency for import of energy, at the same time taking measures to increase the national foreign currency reserve.

- The Ministry of Finance will publicize detailed volume of savings since the introduction of 10% cut in regular spending; take measures to reduce the budget overspending in 2011 to less than 5%; continue working with the Ministry of Industry and Trade, related agencies and People’s Committees of provinces and central-governed cities to well manage prices, particularly the prices of essential commodities, to set up inter-sectoral task forces to enhance control over prices and market, so as to avoid speculation and price hike; work with the Ministry of Industry and Trade to regulate petrol and oil prices in line with the Government’s Decree No. 84/2009/NĐ-CP dated on September 15, 2009, while control and stabilize prices in conformity with legal regulations; finalize and submit to the PM for approval of a Decision on extension of deadline for corporate tax payment to ease businesses’ difficulties, contributing to speeding up economic development in 2011.

- The Ministry of Construction will be responsible for coordinating with agencies and localities to expand control over the real estate market; to quickly study and put forth mechanisms and policies for healthier management of the real estate market.

- The Ministry of Planning and Investment will take prime responsibility to coordinate with relevant agencies to enlist State-funded projects on transport, irrigation, hospital, school improvement, and hostel which are undergone and needs capital for completion in 2011, then submit the list to the PM for consideration. Ministries, agencies, localities, and State-owned enterprises were asked to quickly send official reports on directions for cutting, delaying and switching their 2011 planned capital so that the Ministry of Planning and Investment can sum up and put forth addressing measures and submit the measures to the Government’s meeting for April, 2011.

- The Ministry of Industry and Trade will be responsible for coordinating with related agencies to apply measures to encouraging and speeding up export, controlling and reducing import, particularly luxurious or non-essential commodities, so as to make sure that trade deficit will not exceed 16% of the total export turnover; to coordinate with the Ministry of Agriculture and Rural Development, the Ministry of Finance to fruitfully exploit food export markets so as to guarantee farm producers’ interests and to stabilize domestic food prices; to ensure adequate supply of petrol and oil for domestic demand; to strictly cotrol 2011 power supply plan, provide instructions to the power saving programs, striving for 10% power saving; to coordinate with the Việt Nam Fatherland Front, with active participation of the Hồ Chí Minh Communist Youth Union, Việt Nam Women’s Union as well as the electricity sector, to provide instructions of, and create emulative movements on power savings to State agencies, households, with specific quota to different subjects.

- The Ministry of Labor, Invalids and Social Affairs will take prime responsibility to coordinate with the Ministry of Finance to effectively carry out policy on power price assistance and immediately deploy the policy on assisting low-income groups under the PM’s Decision No. 471/QĐ-TTg dated on March 30, 2011, making sure that the assistance goes to right beneficiaries; to coordinate with ministries, sectors and localities to stabilize workers’ life in economic zones, industrial parks and other labor-intensive areas; to early put forth mechanisms and policies on supporting laborers in the context of price hike, then submit them to the PM for consideration.

- The Ministry of Transport, the Ministry of Public Security will coordinate with localities to drastically implement measures to rein in inflation and reduce traffic accidents; to review 4-year implementation of the Government’s Resolution No. 32/2007/NQ-CP dated on June 29, 2007, on controlling traffic accidents and congestion, propose urgent measures to prevent the alcohol-used drivers.

- The Ministry of Information and Communication will be responsible for coordinating with relevant ministries, agencies and localities to direct the mass media to raise their responsibility for disseminating the guideline on inflation curbing, macro-economic stabilization, and social welfare guarantee, considering it as the regular and central subject of information popularization. Ministries, agencies and localities must be responsible for providing official and updated information regarding the Party and State’s guidelines, policies, and measures so that people could understand and share the country’s common difficulties, thus helping to avoid puzzled and anxious mentality or using the price hike to mess up the market.

- Ministries, agencies and localities will continue focusing on well implementing the promulgated social welfare policies; heads of ministries, agencies and localities must be responsible for drastic savings in procurement, conference and seminar arrangement, overseas working visits; strongly upholding the role of organizations, social associations, residential blocks in saving all resources for production and daily life; attracting people’s saving items into the banking system and into business activities.

- Ministries, ministerial-agencies are requested to improve the quality of documents on detailed implementation of effective laws and ordinances as schedule. Ministries, agencies and localities will focus on well preparing for the upcoming elections of the 13th National Assembly and People’s Councils for 2011 – 2016 term; accelerating administrative procedure reform, anti-corruption, inspection work, and settlement of complaints and denunciations.

2. Regarding the Government’s draft resolution on continued acceleration and improvement of the efficiency of international economic integration for 2011 – 2015 period and with vision to 2020, presented by the Minister of Planning and Investment.

The Government required the Cabinet members to contribute ideas to the draft resolution; assigns the Ministry of Planning and Investment to collect opinions from the Cabinet members, experts and scientists, then finalize the document and submit it to the Government’s regular meeting in April, 2011. 

3. The Government commented on the draft Program on law and ordinance building in 2012 and adjustments to the 13th National Assembly’s Program on law and ordinance building for 2011, presented by the Ministry of Justice.

The Minister of Justice was assigned to collect the Cabinet members’ comments, then correct, edit and finalize the Government’s draft proposals for the Program on law and ordinance building for 2012 and adjustments to the Program on law and ordinance building for 2011; then report the paper to the PM before submitting to the National Assembly./.