RESOLUTION

THE GOVERNMENT’S REGULAR MEETING – JUNE 2015

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Government’s Decree No. 08/2012/ND-CP dated February 16, 2012 promulgating the working regulation of the Government;

Based on the discussion of the Cabinet’s members and the conclusion of the Prime Minister at the Government’s regular meeting held on June 29 - 30, 2015,

RESOLVES:

1. Regarding the socio-economic performance in June and the first half of 2015; the direction and management of the

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In the first half of 2015, Viet Nam maintained stable socio-economic development and achieved positive results in many areas. Macro-economy and currency market became more stable and robust, consumer price index recorded low increase, outstanding loans were higher than that of the same period last year, the overall balance of payment registered a surplus. GDP growth in the second quarter was higher than the previous quarter and the first 6 months of this year hit a five-year record high for the same period of 6.28%, in which: the industry sector grew at 9.53%, nearly doubling that of the same period last year; the agriculture sector continued to grow despite difficulties due to drought and sluggish consumer markets; the service sector posted relatively decent growth and total retail sales of goods and services continued to rise. Exports maintained growth momentum; imports of raw materials, machinery and equipment for production, business investment and export grew. The total social investment capital was higher than that of the same period last year. FDI disbursement reached a decent amount. The number of new enterprises and freshly registered capital increased while the number of enterprises that faced difficulty, temporarily suspend ed operation or was lower against the same period last year. Budget revenues rose well. Social security and social welfare continued to be guaranteed; people's life improved; education, health, culture and sport achieved many positive results. Due attention was paid to administrative reform, complaint and denunciation settlement and anti- corruption. National security and defense were maintained; social order and safety were guaranteed; traffic accidents fell in all three criteria. Foreign affairs and international integration yielded many important results.

In performing duties, the Government, the Prime Minister always adhered to the leadership of the Party and the supervision of the National Assembly; complied with the Constitution and law, implemented tasks and powers as prescribed; ensured the principle of democratic centralism, and promoted the collective role associated with personal responsibility; collaborated closely with the agencies of the Party, National Assembly, the judicial bodies, the Viet Nam Fatherland Front and unions.The Government, the Prime Minister led the administrative apparatus to fulfill synchronously and drastically set objectives and achieved many positive results, helping to solve immediate problems while actively implement the medium and long term objectives.

These results, which received favorable recognition from the international community, built confidence and enthusiasm in the whole society and created favorable conditions to achieve and outperformthe plan of 2015.

However, there remained socio-economic difficulties and challenges. Complicated weather conditions, especially prolonged drought in the central region, the Central Highlands and saltwater intrusion affected production and people's life. Shrinking export markets had direct impacts on the growth rate of agricultural sector, especially food production and aquaculture. Exports of the domestic business sector decreased compared to the same period last year while trade deficit increased. International arrivals to Viet Nam declined. Registered foreign investment capital plummeted. Smuggling, manufacturing and selling counterfeit and shoddy goods were rampant, affecting the production and business environment business and interests of consumers. The life of a part of the people in the mountainous, deep-lying, remote and ethnic minority areas and areas that were affected by natural disasters faced many difficulties. Poverty reduction results in some localities were not really sustainable. Restructuring progress remained slow, especially the restructuring of state enterprises.The direction and management revealed many weaknesses, affecting the effectiveness and efficiency of the direction and management from the central to grassroots levels. For instance, the organization of implementation of a number of mechanisms and policies remained slow; the institutionalization, especially the promulgation of documents detailing the implementation of laws and ordinances, did not meet practical requirements; the implementation of working program of the Government, the missions assigned by the Government, the Prime Minister had many drawbacks; disciplines and administrative principles were at times not applied seriously.

The Government requests ministries, agencies and localities to promote the positive achieved results, determine to overcome difficulties, strictly follow practical conditions, flexibly, proactively and creatively administer, strive to reach and outperform the plan proposed at the beginning of this year; focus on drastically directing the effective implementation of the tasks and solutions in Resolution No. 01/NQ-CP, the resolutions adopted at the Government’s regular meetings and guidance and administrative documents of the Government, the Prime Minister, and focusing on the following priorities:

- The State Bank shall continue to regulate the interest rate and exchange rate policies in a manner that ensures stability; foster credit growth associated with ensuring proper credit structure, focusing credit on production and business, especially in the priority areas of the Government’s direction; closely monitor lending in areas with high potential risk (such as real estate, projects that require long capital recovery time, etc.). The State Bank shall expeditiously complete the construction and proposal of the credit package for infrastructure investment under Resolution No. 05/NQ-CP dated March 4, 2015 of the Government; coordinate closely with the Ministry of Finance in managing the fiscal and monetary policies in order to ensure the completion of the capital mobilization to offset budget deficit and ensure investment for development in 2015.

- The Ministry of Planning and Investment shall coordinate with ministries, agencies and localities to actively attract social investment, creating favorable conditions for all economic sectors to invest; accelerate the implementation and disbursement of all projects from all sources; focus on processing procedures to implement registered public -private partnership investment projects; promptly issue and urge other ministries and agencies to promulgate documents guiding the implementation of Decree No. 15/2015/ND-CP dated February 14, 2015 of the Government on public- private partnership investment.

- The Ministry of Finance shall closely monitor price developments, administer the commodities managed by the State under the market mechanism in a bid to guarantee macro-economic stability and inflation control; lead and coordinate with other ministries, agencies and localities to implement the tasks of State budget financing under Directive No. 06/CT-TTg dated April 21, 2015; focus on management of revenues and strive to increase revenues; enhance inspection, detection and strict and timely handling of tax evasion and transfer pricing which cause tax losses; closely manage the State budget spending, radically implement thrifty and efficient practices, control State budget deficit and public debt; perform the role of a permanent body, in collaboration with other ministries, agencies and localities to drastically implement Resolution No. 41/NQ-CP dated June 9, 2015 of the Government on stepping up the fight against smuggling, trade fraud and counterfeits in new period of time.

- The Ministry of Industry and Trade shall direct and maintain growth momentum of the industrial sector; focus on improving domestic crude oil production; quickly propose policies to encourage development and attract investment in auxiliary industries to improve the efficiency of business investment and domestically added value; active ly implement promotion programs, expand markets, increase the purchasing power of domestic market; innovate and improve the efficiency of trade promotion activities, strengthen and expand the export markets, particularly for agricultural products; boost construction, branding and export product protection activities in key export markets; strictly control the import of goods, especially unrecommended items and poor quality goods that have negative impact on the environment, people's health and ensure conformity with international commitments and practices; disseminate, direct and support domestic enterprises to prepare the necessary conditions to proactively seize opportunities and cope with the challenges of integration in the future.

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The Central Steering Committee for Natural Disaster Prevention and Control of the Ministry of Agriculture and Rural Development shall implement measures to overcome and mitigate the consequences caused by drought and lack of water, reasonably direct Summer-Autumn crop production in 2015; lead and coordinate with relevant agencies and localities to monitor the situation and actively direct the flood prevention, timely response to the complex movements of natural disasters. Ministries, agencies and localities shall strengthen the management of the exploitation of sand and gravel in the river, closely monitor the operation of the reservoirs, with appropriate solutions ensuring water security, avoiding water level reduction in major rivers in the dry season, especially in the Red River and Thai Binh river systems.

- The Ministry of Construction shall preside and coordinate with other ministries, agencies and localities, especially in big cities to actively address problems for the real estate market linked to the implementation of strategies for housing, especially for social housing; actively and effectively implement the Construction Law and Law on Housing; accelerate the State management of urban development investment as stipulated in Decree No. 11/2013/ND-CP of the Government.

- The Ministry of Transport actively supervise and speed up the progress of key projects for transportation; contin ue to attract social capital in order to promote effective forms of investment for transport infrastructure; closely cooperate with the relevant localities having projects for drastic site clearance, ensure traffic safety and order, environmental hygiene during project execution; well perform the load control of means of transportation and strictly handle violations, especially in passenger transport.

- The Ministry of Labor - Invalids and Social Affairs and other ministries, agencies and localities shall continue to synchronously and effectively implement security and social welfarepolicies, capture the situation of the people's life affected by the disaster to provide timely support; actively implement the National Target Program on Poverty Reduction and Employment; strictly manage labor export activities, coordinate and strictly handle legal violations of brokerage organizations sending laborers to work overseas; organize practical activities to celebrate the invalids and martyrs day; urgently process the applications requesting for the implementation of policies for people with meritorious services to the nation; create favorable conditions for cases with missing documents to complete their files to enjoy the preferential policies; detect and handle fraud cases; actively implement socialization of social welfare facilities, enabling their operation for the right and lawful purposes.

- The Ministry of Health shall direct to strengthen dangerous disease control, closely monitor the risk of infiltration and spread of diseases and proactively prevent outbreaks; continue to implement synchronously solutions to improve the quality of medical check and treatment to meet the healthcare demand of the people, enhance the capacity of health staff at all levels; actively implement the project to reduce overload at hospitals, extend projects and networks of satellite hospitals, coordinate with localities to accelerate the construction of satellite clinics associated with training and transfer of medical technological advances to lower level hospitals. The Ministry of Health and Viet Nam Social Security shall strictly implement the social health insurance roadmap following the proposed objectives and computerization of hospital systems, health care facilities; issue the list of supplies, medicines, health services to be encoded as a basis for the computerization of health insurance payments. The provincial-level People’s Committees shall drastically implement measures to increase the proportion of the population having health insurance, especially to support near poor households, people who work in agriculture, forestry, fishing and salt production, at average living standard to participate in medical insurance; direct Peoples’ Committee of communes, wards and towns to organize the registration and create favorable conditions for people to participate in health insurance by household.

- The Ministry of Education and Training, the People's Committee of provinces and cities shall closely coordinate to organize National High School exams in compliance with proposed objectives and requirements, create the most favorable conditions for students; ensure quality of tertiary admission in 2015; coordinate with relevant ministries to direct localities to prudently review the tuition adjustment plan for educational institutions under the national education system before the new school year to limit impacts on the consumer price index.

- The Ministry of Culture, Sports and Tourism shall supervise and speed up the implementation of tasks under Resolution No. 92/NQ-CP dated December 8, 2014 of the Government on a number of measures to boost tourism development in Viet Nam during the new period; promptly submit to the Prime Minister to issue a Directive enhancing the effectiveness of State management in order to overcome the limitations, weaknesses and enhance the competitiveness of Viet Nam’s tourism; preside and coordinate with the Ministry of Finance to quickly develop the project to establish a fund supporting tourism development,and submit to the Government; propose amendments to investment incentives, travel business, land use tax and land rent for tourist accommodation establishments, and report to the Government.

- The Government Inspectorate shall continue to implement the planned inspections associated with unscheduled inspections; strength the monitoring and evaluation of inspection results, ensure the quality, effectiveness and punctuality of inspections; publicize inspection conclusions; strengthen inspection and accelerate the conclusions, recommendations and settlement after inspection; strictly implementthe Law on Reception of Citizens, Law on Complaints, Law on Denunciations, Directive No. 35-CT/TW of the Political Bureau, Resolution No. 39/2012/QH13 of the National Assembly, Decree No. 64/2014/ND-CP of the Government, Directive 14/CT-TTg of the Prime Minister on the reception of citizens, settlement of complaints and denunciations; continue to conclusively settle backlogged and prolonged complaints and denunciations and newly arising cases, summarize the 10-year implementation of the Law on prevention and control of corruption; promote the coordinated inspection and supervision of the inspection, investigation, prosecution and judgment of corruption cases.

- The Ministry of National Defense and the Ministry of Public Security shall direct to reinforcethe control of situation; synchronously implement national defense and security tasks, protect national sovereignty; strengthen the political security, social order and safety, especially during the Party congresses at all levels towards the 12th National Party Congress and other important national political events; proactively detect, combat and prevent in time plots of hostile forces and reactionary cliques; drastically combat and crack down on crime, particularly organized crime and drug crime; strengthen patrol, control, handling of violations, ensuring traffic order and safety; closely cooperate in the implementation of flood prevention plan, search and rescue, and timely handle emerging situations.

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- The provincial-level People’s Committees shall actively implement missions under Resolutions and Directives and administrative documents of the Government; direct and supervise to remove difficulties in production and busine ss, promote local economic and social development, create radical change in the areas of local advantages; propose issues to the Government, ministries and agencies under the authority to resolve difficulties and obstacles and create favorable conditions for the effective deployment and application of mechanisms and policies.

- Ministries and agencies based on their functions, tasks and authority shall proactively address or propose solutions to requests of the provincial-level People’s Committees at the meeting. The Government Office shall supervise, accelerate and synthesize the settlement of those requests and report to the Prime Minister.

- The Ministry of Information and Communications shall promptly submit to the Prime Minister specific plans to promote the provision of online public services levels 3 and 4 of State agencies; direct the information and communication on the mechanisms, policies and measures, and achievements to create trust, consensus and motivation; address the abuse of democratic freedom in information for false propaganda, distorting the situation and prejudicing the reputation of agencies, organizations, individuals and the interests of the people. Ministries and agencies shall actively provide information on sectors and fields to ensure accuracy and timeliness to create transparency and orientation for public opinion; listen to political feedbacks to make appropriate and effective adjustments accordingly.

The Government requests the Viet Nam Fatherland Front and central agencies to direct the propagation and mobilization of members together with people from all walks of life to unite, harmonize and promote the power of the great national unity block, achieve the objectives of socio-economic development; actively coordinate, create consensus, and strengthen the supervision of the implementation of tasks of the Government, ministries, agencies and localities according to the law.

2. Regarding the implementation of Resolution No. 19/NQ-CP dated March 12, 2015 of the Government on major tasks and solutions for improving the business environment and national competitiveness.

During the implementation of Resolution No. 19/NQ-CP dated March 18, 2014 of the Government, the business investment environment and national competitiveness experienced strong improvement, especially in important indicators such as: business startups, investor protection, tax payment, customs procedures, social insurance, access to power, land, construction, etc. and received positive acknowledgement and recognition from business community, citizens, and international opinions.

In the implementation of Resolution No. 19/NQ-CP dated March 12, 2015 of the Government, many ministries, agencies and localities earnestly comprehended and implemented the Resolution through specific action plans and programs, identified the tasks required under the Resolution with implementation roadmap in the period 2015 -2016. Initially, a number of solutions proposed in the Resolution went into practice and promoted remarkable results, especially in the comprehensive reform of regulations on business conditions and the specialized management of exported and imported goods.

However, many ministries, agencies and localities have not issued an action plan and specified procedures to implement the Resolution. A number of localities had action plans without implementation procedures and roadmap. Many important tasks outlined in the Resolution have not been realized, affecting the validity, effectiveness of proposed objectives.

The Government requests the ministers, heads of agencies, Chairman of the provincial-level People’s Committees to earnestly draw lessons on the shortcomings mentioned above, review personal responsibilities for not promulgating action plan to implement the Resolution of the Government; implement toughly and decisively tasks and solutions under Resolution No. 19/NQ-CP dated March 12, 2015; consider it as a focus in the last half of the year, clearly identify tasks and works to concentrate for finalization in 2015 to improve the business environment, enhance competitiveness based on functions and tasks assigned, and focus on the following tasks:

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- Implement expeditiously and equitably the new contents of the Law on Enterprises and the Law on Investment. Review and categorize business conditions for sectors and fields under the management authority, repeal or suspend the application of unlawful regulations on business conditions which create difficulties for businesses and citizens. Review personal responsibilities in the issuance of ultra vires regulations on business conditions.

- Ministers, heads of agencies, Chairman of the provincial-level People’s Committees shall directly instruct and follow the targets, indicators, tasks and solutions of the Resolutions, translate them into action plans of sectors and provinces, guaranteeing achievement of practical results; strictly implement Directive No. 13/CT-TTg dated June 16, 2015 to increase the responsibilities of heads of State administrative agencies at all levels in the reform of administrative procedures.

3. Regarding administrative reform

In the first six months, administrative reform achieved many positive results. Ministries, agencies and localities directed and accelerated the implementation of administrative reform, especially reform of administrative procedures in order to effectively implement Resolution No. 30c/NQ-CP dated November 8, 2011, Resolution No. 01/NQ-CP dated May 3, 2015, Resolution No. 19/NQ-CP dated March 12, 2015 of the Government, to promote the socio- economic development.

However, administrative reform still has several drawbacks. A number of ministries and localities were slow in performing the reform of administrative procedures; slow in issuing a joint circular guiding the functions, tasks, powers and organizational structures of the professional agencies under the People's Committees of provi nces and districts. Administrative procedures in some areas remained cumbersome, requiring long processing time and complicated in procedures. Troubling and harassing acts in processing administrative procedures still existed.

The Government requests ministries, agencies and localities continue beefing up administrative reform, especially reform in administrative procedures; effectively implement the plan to promote the reform of civil servants and public duty regime; focus on institutional reform, in which focusing to complete the decentralization of the State management over sectors and fields and improve the mechanisms regarding autonomy of public non -business units in each area; implement the Law on Organization of the Government and the Law on Organization of Local Government; quickly issue a joint circular guiding the functions, tasks, powers and organizational structures of professional agencies under the provincial-level and district-level People's Committees; continue reviewing the functions, tasks and organization; strengthen the inspection and examination, strictly handle harassing acts in processing administrative procedures and providing public services; accelerate the application of information technology to promote the reform of administrative procedures

Ministries and ministerial-level agencies shall expeditiously take prime responsibility and collaborate with the Ministry of Home Affairs to issue professional standards of civil servant positions; streamline payroll as stipulated in Decree No. 108/2014/ND - CP; develop evaluation criteria for officials, civil servants, and public employees according to Decree No. 56/2015/ND-CP of the Government.

4. Regarding the conversion of detoxification and methadone treatment centers

- The provincial-level People's Committees shall direct the conversion of detoxification centers as stipulated in Resolution No. 98/NQ-CP dated December 26, 2014 of the Government; promote methadone treatment program for drug addicts, take methadone to detoxification centers and drug distribution sites in communes; support the exemption or reduction of funding for voluntary detoxification.

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- The Ministry of Health in collaboration with the Ministry of Labour - Invalids and Social Affairs shall integrate methadone allocation and treatment centers with detoxification centers, taking methadone to communes.

- The Ministry of Public Security shall deploy methadone treatment for prisoners as stipulated in Resolution No. 04/NQ-CP dated February 04, 2015 by the Government, direct local police to enhance coordination with relevant authorities to take drug addicts in the community to voluntary detoxification and methadone treatment in detoxification centers.

- The Ministry of Finance shall ensure sufficient funds to buy methadone as prescribed.

- The Ministry of Planning and Investment shall ensure the balance of capital in medium-term investment programs and projects on drug-addiction prevention and detoxification.

5. Regarding the specific mechanisms of urban development investment along the Nhat Tan-Noi Bai highway in Ha Noi Under its authority, the Government in principle agreed with a number of mechanisms and specific policies of investment on urban development along the Nhat Tan-Noi Bai highway, including: social housing layout; selection of investors for urban development projects and land valuation as basis for proposals and negotiations; payable land use fee; authority and responsibility to approve urban development projects, framework for infrastructure projects under group A.

The Ministry of Planning and Investment is assigned to take prime responsibility and coordinate with the People's Committee of Ha Noi, the Ministry of Construction and other relevant ministries and agencies to collect opinions from members of the Government and the ideas discussed at the meeting to finalize a Decision, then submit to the Prime Minister for issuance.

6. Regarding the determination of deductible costs when calculating corporate income tax for subsidies for poverty alleviation of the Viettel Group

The Ministry of Finance is assigned to guide the Viettel Group to calculate the expenses to support poor households in the regions with especially difficult economic conditions as deductible expenses when calculating taxable corporate income as prescribed by law.

The Ministry of National Defense is assigned to direct the Viettel Group to concentrate resources to accomplish the missions, programs and major projects delegated by the Party and the State.

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The Ministry of Finance is assigned to take prime responsibility and coordinate with the Ministry of Justice, Ministry of Planning and Investment, the Ministry of Culture, Sports and Tourism, the Government Office, other relevant ministries and agencies to collect opinions from members of the Government and opinions of the Standing Committee of the National Assembly and other relevant agencies, to continue revising and finalizing a draft Decree and report to the Prime Minister to further consult with members of the Government before issuance./.

ON BEHALF OF THE GOVERNMENT
PRIME MINISTER




Nguyen Tan Dung