The Government's regular meeting - November 2009

RESOLUTION

The Government's regular meeting - November 2009

On December 1, 2009, the Government convened its regular meeting of November to discuss and decide the following issues:

The Government discussed and agreed with the reports on socio-economic situation in the first 11 months of 2009, domestic and global economic predictions in the coming time; solutions for economic development and macro-economic stability; inspection and settlement of accusations, complaints and anti-corruption in November; administrative reforms in November; drafting and issuance of legal documents guiding the implementation of laws and ordinances; realization of the Government’s October resolution and the Government’s November working program. These reports were presented by the Ministers of Planning and Investment, Industry and Trade, Home Affairs, the Governor of the State Bank of Việt Nam, the Chief Inspector, and the Minister-Chairman of the Office of the Government.

The Government agreed that the domestic economy in November and the first 11 months of 2009 was on a recovery trend with positive signs: Industrial value in November surged; production of agro-forestry and fisheries sector was on the rise; the service sector and the domestic markets rehabilitated dramatically; the total amount of retail sales and revenue of goods and services reached a record high since the beginning of the year; the macro-economic  balance was secured; collection and spending of the State budget were higher than expected; investment was and capital disbursement were sped up; activities of export, import and tourism rebounded; fluctuations in the monetary and credit markets were put under control; consumer price index (CPI) increase was reasonably reined in; positive results were gained in the areas of labor, employment, poverty reduction, healthcare, food hygiene, culture and sports; administrative reforms, especially administrative procedures simplification, settlements of complaints and accusations, anti-corruption, saw progresses; socio-political stability, social order and national security-defense were maintained; responding activities to natural disasters were implemented timely and effectively. These achievements have created the foundation for the Government to strive for an economic growth rate of 6.8% in Q4 in order to meet the year economic targets set by the National Assembly (NA).   

However, the national economy still faces numerous challenges, including slow recovery in investment attraction, export, and tourism; unstable factors seen in macro-economic balance; bigger pressure on CPIs due to rising interest rates, exchange rates, and credit growth; and the unstable stock market.

The Government requires all ministries, sectors and agencies, in December and the coming time, to realize Resolution 30/2008/NQ-CP dated December 11, 2008 in order to meet the set targets for socio-economic development in 2009; spur rapid and solid economic recovery in 2010; stabilize macro-economy; prevent the reoccurrence of inflation. In addition, the Government also proposes the following solutions:  

- Taking drastic measures to accelerate the disbursement of investment capital allocated from the State budget and governmental bonds; and mobilize FDI and non-State capital sources for investment development;

  - The Ministry of Agriculture and Rural Development (MARD) will keep track of the realities of climate and epidemics that can affect agricultural production in order to have timely responses, protect crops and domestic animals from cold weather, and ensure a fruitful winter-spring crop; 

- The Ministry of Industry and Trade (MIT), in collaboration with relevant ministries, sectors, and localities, will boost up trade promotion activities in order to make full use of the domestic market and expand export. MIT will work with Ministry of Finance (MOF) and MARD to issue necessary regulations and take tax measures in line with the national laws and Việt Nam’s international commitments to strengthen management, reduce luxury and inessential imports, and narrow trade gap. Those ministries have to ensure the supply of goods for domestic consumption during the traditional Tet festival; tighten their control over market and price to avoid speculation and unreasonable price escalation; and continue the “Buy Việt Nam” campaign. MIT worked with MARD to keep a close watch on prices in the international rice market and propose timely solutions for the management of food market to guarantee national food security and stabilize food prices. 

- The State Bank of Việt Nam (SBV) and MIT, within their competence and in collaboration with other relevant agencies, will report to the Prime Minister for consideration and decision on the ways to provide, since January 1, 2010 on, interest rate subsidies to medium and long-term loans, as stipulated in Decision 443/QĐ-TTg dated on April 4, 2009, and to other loans for the purchase of machines and equipment, input materials for agricultural production, and building materials for rural housing as stated in Decision 497/QĐ-TTg dated April 17, 2009. The interest rate subsidies for floating capital loan will be offered under Decision 131/QĐ-TTg dated January 23, 2009. 

- SBV has to regulate policies on monetary, exchange rates and interest rates in an active, flexible and cautious manner with a view to encouraging export, curbing trade gap, managing the total means of payment and credit debt growth in line with the requirements for economic development, so as to recover the growth impetus, maintain macro-economic stability and prevent the recurrence of inflation. SBV will work with other ministries and agencies to control the domestic gold and foreign currency markets in order to secure their stability and healthiness; prevent and strictly punish illegal gold and foreign currency trading activities which can cause instability and do harm to the economy. Once receiving incomes in foreign currencies, State-owned enterprises (SOEs) have to sell them to commercial banks. SBV will be responsible for instructing commercial banks to meet SOEs’ demands for foreign currencies.

- MOF will instruct the State Securities Commission to strengthen investigation and supervision so as to early discover, prevent and punish illegal trading acts, including agent transactions and speculation, in order to make the stock market operate stably and soundly. They will continue the enforcement of Decision 14/2009/QĐ–TTg, dated on January 21, 2009, which provides credit guarantees to medium and small enterprises facing financial difficulties while carrying out feasible business and production projects.

- The Ministry of Public Security will ensure economic security; prevent and impose penalties on any behavior destabilizing and damaging the economy. 

- The Ministry of Planning and Investment (MOPI) will collect ideas from other relevant ministries and agencies in order finalize a draft governmental decree on some major socio-economic solutions in 2010, then submit it to the PM before bringing the document to the Meeting between the Government and local authorities on socio-economic development tasks and State estimates for 2010.

- Ministries, sectors and localities will carry out policies on social security, focusing on poverty reduction, education and training, public healthcare; and allocate investment capital from the State budget for 2010 in conformity with the PM’s decision as soon as possibly. In addition, they must take prompt actions to realize their assignments stipulated in the Resolution of the sixth session of the 12^th NA, and the Government’s Report 176/BC-CP, dated in October 19, 2009 and Report 186/BC-CP dated in November 18, 2009. They must make monthly and quarterly reports on the fulfillment of these tasks. 

 - Ministers and heads of ministerial-level agencies and Governmental bodies will carry out effectively Instruction 636/CT-TTg, dated on May 20, 2009, which guides the enforcement of the Law on Promulgation of Legal Documents, placing on qualifying the apparatus and staff, creating favorable conditions for drafting and issuing legal documents; sharing responsibilities and speeding up the compilation and promulgation of legal documents instructing the realization of valid laws and ordinances and those which will come into effect since January 1, 2010. This work must be prioritized and completed within Q1 of 2010. The Office of Government will supervise other agencies to finalize all unfinished documents; draft and issue new documents to guide the implementation of new laws and ordinances; and make reports on this work to the Government at  every regular meeting. 

- All ministries, sectors and localities will speed up administrative reforms, targeting to cut at least 30% of administrative procedures; boost up IT applications in operations of the State administrative apparatus. The concerned localities will continue to realize the NA’s Resolution and the PM’s instructions on piloting the abolishment of People’s Councils at district and ward levels. It is necessary to enhance inspectional work; solve accusations and complaints; promote anti-corruption; control and strictly punish any violation against transport safety regulations, especially during the traditional Tet festival. 

2. The Government listened to the Minister of Home Affairs presenting the Statement on the Bill on Archives and to the report delivered by the Minister-Chairman of the Office of Government summing up Cabinet members’ comments on the bill.   

The Ministry of Home Affairs, in collaborate with the Ministry of Justice, the Office of Government, and other concerned agencies, will complete the bill. Regarding the archives organizations at the central and provincial levels, the Minister of Home Affairs and a member of the Government’s Party Civil Affairs Committee will have to present a report on the bill to the Committee before submitting it to the Political Bureau and the NA for consideration./.