The Government’s regular meeting – September 2012

RESOLUTION

The Government’s regular meeting – September 2012

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The Government on September 27 convened its regular meeting for September 2012 to discuss and decide the following issues:

1.  The Reports on socio-economic performance in September and the first nine months of 2012; on the realization of the Government’s Resolution No. 01/NQ-CP; on administrative reform; on the settlement of complaints and denunciations and anti-corruption work; and on the implementation of the Government’s August Resolution and the Government’s Working Program for Q3/2012. These reports were presented by the Minister of Planning and Investment, the Minister of Finance, the Minister of Home Affairs, the Chief Inspector and the Minister-Chairman of the Office of Government.

The Cabinet unanimously agreed that the socio-economic performance in September and the first nine months of 2012 continued to see positive changes. The measures of inflation curb and macro-economic stabilization proved effectively; the September consumer price index (CPI) increased by 5.13% against December 2011 and 6­­.48% against last September; deposit and lending interest rates declined; credit structure was transformed positively in favor of prioritized fields; exchange rate was stable and foreign reserve was on the rise. Export turnover in the first nine months outstripped the preset target; the balance of trade was sustained. Economic growth rate rose quarter by quarter, reaching 5.35% in the first nine months. Industrial production showed signs of recovery, inventory levels reduced. The production of agro-forestry and fishery sector continued to be stable, making important contributions to stabilizing market prices and improving living standard and income of peasants. Service sector gained fairly good outcomes. The disbursement of investment capital from State budget and Government bonds was sped up. Social security and welfare, culture, education, healthcare, and job generation received due attention and saw positive outcomes. Political and social stability was secured; national defense enhanced; security and social order maintained. Traffic accidents reduced. The administrative reform, settlement of complaints and denunciations, and anti-corruption work got due attention; diplomatic activities gained good outcomes.

However, numerous difficulties and challenges still remain, including macro-economic instability, the recurrence of CPI increase – up 2.2% in September against the previous month, and low economic growth rate. Outstanding loans grew at a much lower rate compared to the preset target and was greatly uneven to the deposit growth; non-performing loans in the banking system have been slowly addressed. The import of equipment and input materials dipped; production and business slowly recovered; local market purchasing power was weak; the number of dissolved and suspended enterprises was high. The total social development capital and budget collection failed to meet the preset target. Some segments of the population faced with difficulties; natural disasters and epidemics remained unpredictable; social evils and crimes still happened complicatedly.           

The Government tasks ministries, agencies and localities to take drastic and synchronous measures which were adopted at the beginning of the year; strive for successful realization of the 2012 socio-economic development targets. The top priority is to strictly control prices, curb inflation, secure macro-economic stability, ensure social welfare, boost production and business, and maintain a reasonable growth rate, focusing on the following tasks:

- The State Bank of Viet Nam (SBV) continues to regulate the monetary policy in a flexible manner in line with macro balances and in combination with the fiscal policy to assist enterprises in accessing to bank loans without letting the recurrence of high inflation, muster up capital for agriculture and aquaculture, and ensure that the total means of payment meet the preset target. The SBV must have timely and appropriate measures to reinforce discipline within the banking system; in 2013, promptly address all weak banks to stabilize the banking system and restore investors and people’s confidence; take synchronous solutions to deal with non-performing loans; increase foreign reserve; strictly control the exchange rate in accordance with the market realities; and provide adequate capital loans for students and pupils. 

- The Ministry of Finance works with the Ministry of Planning and Investment, other ministries, agencies and localities to implement a reasonable fiscal policy in close and effective combination with the monetary and credit policies; strive for higher budget collection, tighten spending management, ensure the balance of budget collection and spending; keep the overspending rate as approved by the National Assembly; grant the enterprises which are defined in the Government’s Resolution 13/NQ-CP dated on May 10, 2012 with another three-month extension for the payment of their June 2012 VAT. 

- The Ministry of Planning and Investment collaborates with other ministries, agencies and localities to accelerate the implementation and disbursement of projects  and national target programs which are using the State funds and governmental bonds; properly carry out compensation for site clearance; push forward investment promotion; drastically lure and disburse ODA and FDI capital; quickly renovate statistical methods in line with international practices to raise the accuracy of socio-economic data which will be referred by the Government in its performance.  

- Ministries, agencies and localities closely coordinate each other in managing the market and prices, opening more outlets selling goods to serve the purpose of price stabilization; reasonably managing and regulating prices of essential goods like petrol, electricity, coal and public services; promptly realizing the Prime Minister’s Directive 25/CT-TTg, dated on September 26, 2012, on enhancing price stabilization and management in the last months of 2012. The Ministry of Finance, in collaboration with the Ministry of Planning and Investment and other ministries, strictly controls prices and fees which could affect or lead to the increase of input costs for production and business activities. The Ministry of Health orders localities to suspend the application of newly-changed of medical services while clarifying new policies on medical services in order to create public consensus and contribute to inflation curb.       

- The Ministry of Industry and Trade cooperates with relevant agencies to conduct trade promotion activities, boost export, strengthen communication and forecasts of foreign markets; early discover and apply suitable measures in response to technical barriers imposed by other countries. The Ministry is responsible for tightening the control of imports and investigating trade frauds, counterfeits and poor-quality products; ensuring adequate supply of goods, especially during the upcoming Lunar New Year holiday. The Ministry works with the Ministry of Finance and localities to prevent goods speculation and price distortion. 

- Ministries, agencies and localities enhance measures to unbind difficulties against production and business activities in accordance with the Government’s Resolution 13/NQ-CP; continue the policies which are in favor of these activities; encourage advantageous products and fields, particularly agriculture, processing industry, supporting industry, servicse and tourism with high added value; review and streamline administrative procedures to generate a favorable environment for production and business activities; propose appropriate mechanisms and policies to pull down enterprises’ current inventory levels.  

- The Ministry of Agriculture and Rural Development collaborates with other ministries, agencies and localities to implement policies which support husbandry and aquaculture in order to ensure sufficient provision of foodstuff, especially during the year-end. The Ministry is responsible for mapping out ways to support the purchase of agricultural and aquaculture products to secure producers’ benefits; develop the rice stock in the Mekong Delta. The Ministry is in charge of effectively responding to natural disasters, preventing epidemics in animals and poultry, and timely assisting people to recover production and livelihood after disasters and epidemics.     

- Ministries and agencies accelerate the economic restructuring within their competent fields, firstly speeding up the restructuring of State-run economic groups and corporations, so that these entities must focus on their core business lines and be re-arranged on the basis of their financial strength and market demands; pushing up equitization; enhancing administration and leadership capacity of these enterprises’ leaders; improving macro-forecast capacity to raise effectiveness of the Government’s performance.  

- Ministries, agencies and localities consistently realize social welfare and security policies, prioritizing disadvantageous areas, the poor, people with meritorious service to the nation, social policy beneficiaries and ethnic minority groups; continue to implement the orientations and resolutions of the Party and State on national defense, national security, national sovereignty, political security, social order and safety; focus on settling complaints by citizens, attach importance to anti-corruption work and thrift practice.   

- The Ministry of Information and Communications spurs the dissemination of macro-economic policies and the Government’s performance, contributing to the realization of the targets and tasks enshrined in the Government’s Resolutions 01/NQ-CP and 13/NQ-CP. The Cabinet members positively provide mass media with information of guideline, policies and solutions relating to their competent fields to build public confidence and consensus.   

- The Cabinet speeds up preparation and submision of projects in their Q4 and yearly working programs, resolving the backlog of documents guiding the enforcement of effective laws and ordinances.    

2. The Government debated and commented on the Public Investment and Procurement Law presented by the Minister of Planning and Investment. 

The Ministry of Planning and Investment works with the Ministry of Justice, the Office of Government and relevant agencies to collect comments from Cabinet members, then finalize the bill by defining its scope and avoiding overlaps with other laws, and report to the Prime Minister for considersation and decision.

3. The Government discussed and commented on the Ordinance, presented by the Minister of National Defense, on amending and supplementing some articles of the Ordiance on conferring the State honor title “Heroic Vietnamese Mother.” 

The honoring of Vietnamese mothers who had made significant sacrifices and contributions to the cause of national liberation and protection and the fulfillment of international missions is of great significance, highlighting the Party and State’s respect, gratitude and acknowledgement to them, and meeting people’s legitimate aspiration. During the process of compiling the Ordinance to amend and supplement the Ordiance on conferring the State honor title “Heroic Vietnamese Mother,” it is necessary to rely on the Resolution of the 11^th National Party Congress and the Ordinance which amends and supplements the Ordinance on preferential treatment for those who made great contribution to the nation; ensure the document’s consistent content and formality in comparison to the current legal documents; and generate social consensus.   

The Ministry of National Defense works with the Ministry of Justice, the Office of Government and related agencies to collect comments from Cabinet members to finalize the Ordinance. The Minister of National Defense, authorized by the Prime Minister, will present the Ordinance to the National Assembly Standing Committee.

4. The Government discussed the National Assembly’s draft Resolution, presented by the Minister of Justice, on exempting the enforcement of judgements on uncollectible receipts to the State budget.  

In reality, the enforcement of civil judgements requires a mechanism of exempting some uncollectible receipts to the State budget in order to save costs and manpower; create favorable conditions for civil judgment-excecuting agencies to fulfill their assignments, and ease public discontent over the work of civil judgement enforcement.    

The Ministry of Justice works with the Office of Government and related agencies to collect comments from Cabinet members to finalize the draft Resolution. The Minister of Justice, authorized by the Prime Minister, will present the Resolution to the National Assembly.

5.  The Government discussed and commented on the Project, presented by the Minister of Health, on universal health insurance for the 2012-2015 period and with visions to 2020. 

Universal health insurance is a major policy of the Party and State and a pillar of the social security policy system. In building the roadmap toward universal health insurance, it is necessary to enforce the Resolution of the 11^th National Party Congress, the Party Secretariat’s Directive 38-CT/TW on enhancing health insurance and the 2008 Law on Health Insurance; propose mechanisms and policies to raise heath insurance coverage, especially for those who live just above the poverty line, pupils and students, peasants, fishermen, and salt workers who have modest living standard; increase support for those who have got rid of poverty to acquire health insurance; raise health insurance coverage for workers in enterprises; and encourage people to voluntarily purchase healthcare insurance. Since 2013, ministries, agencies and localities will have to add the criterion of heath insurance to their yearly and five-year socio-economic development plans and strive to populize health insurance to over 80% of the population by 2020.         

The Ministry of Health was assigned to work with the Office of Government and related agencies to collect comments from the Cabinet members to finalize the project and present it to the Prime Minister for consideration and decision./.