RESOLUTION

THE GOVERNMENT’S REGULAR MEETING – APRIL, 2011

The Government convened its regular meeting on April 28-29 during which it discussed and decided the following issues:

1. Reports: On socio-economic performance in April and the first four months of 2011, the progress of the implementation of Resolution No. 11/NQ-CP , Resolution No. 77/NQ-CP adopted at the Government’s March meeting, and the Government’s working agenda for April, 2011; the administrative reform in April; the inspection work, the settlement of complaints and denunciations, and the fight against corruption in April. These reports were presented by the Minister of Planning and Investment, the Minister-Chairman of the Government Office, the Minister of Home Affairs, and the Government Chief Inspector.

The Government members unanimously agreed that socio-economic performance in April and the first four months of 2011 continued to move in a positive manner. The macro-economy was primarily stabilized, with policies on currency, exchange rate management, interest rates, foreign currency market, and gold trading showing gradual improvements and proving workable; credit growth and total means of payment were put under control; budget collection soared while budget overspending was lower than the same period last year; screening, reducing and reallocating State’s investment capital and budgeting regular expenditures are being implemented competently in line with the spirit of Resolution No.11/NQ-CP; export turnover was higher than the same period last year and tripled the set target. Industrial production maintained a high growth rate; agricultural production grew stably; total retail sale of goods and services continued to soar. Social welfare was given due attention, reflecting especially in the provision of irregular subsidies to low-income earners meeting with difficulties and financial assistance to poor households to partly assist them in dealing with rises in power price. Culture, sports, healthcare, education, and job creation witnessed new changes. Administrative reform continued to be stepped up. The settlement of complaints and denunciations, and the fight against corruption have been paid due attention. Political and social stability continued to be ensured; and social order and safety was maintained.

The economy, however, still faced a mountain of difficulties and challenges. The world’s economy and socio-political upheavals still coped with complicated and unexpected developments; domestic prices soared due to the impacts of rising prices of commodities in the world and the market-based adjustments to prices of several essential commodities in the country; high lending interest rates caused an array of hurdles to enterprises’ production and business and people’s lives; trade deficit showed signs of rising; traffic accidents and congestion remained a pressing issue; natural disasters and epidemics were occurring in a complicated manner…

The Government requested ministries, sectors and localities to continue keeping a close watch on developments in the national economy and economies around the globe and improving analysis and forecast capacity so as to promptly take appropriate managerial and regulatory measures, and implement drastically, synchronously, and effectively solutions outlined in the Government’s Resolutions, especially Resolution No. 11/NQ-CP , dated February 24, 2011 in order to rein in inflation, stabilize the macro-economy, and ensure social welfare. It required the ministries, agencies and localities to focus on the following key tasks:

- To implement consistently a policy of regulating prices with regard to market levels. The policy needs to be implemented in an open and transparent manner with specific roadmaps. Ministries, sectors and localities need to concentrate on intensifying the management over prices and markets to ensure the balance between supply and demand as well as stable prices of essential commodities so as to avoid speculation and price hikes.

- The State Bank of Viet Nam (SBV) continues deploying solutions to regulate interest rates and manage the growth pace of credit and total means of payment to fit market developments; prioritizes credits for the agricultural sector, rural areas, small and medium-sized enterprises (SMEs), supporting industries, and export-oriented production; presses ahead with adopted measures on the managment of the monetary, credit, exchange rate, foreign currency market, and gold trading fields, which have showed to be efficient over the past time; promptly finalizes and promulgates legal documents specifying foreign currency and gold management policies; supervises the operation of commercial banks to ensure they strictly observe monetary, credit and system security regulations.

- The Ministry of Planning and Investment (MPI) instructs and supervises other ministries, sectors and localities in continuing reviewing the reduction, cut and re-allocation of development investment capital as requested in Resolution No. 11/NQ-CP dated February 24, 2011, and makes public in an overt and transparent manner the reduction and cut of development investment capital sourced from the State budget, investment credits, Government bonds, and investment capital of SOEs as compared with the planned, and the amount of capital reallocated for key projects to be completed in 2011; resolutely axes investment capital designed for projects which are non-urgent and yet to fulfill investment procedures or break the ground.

- Ministries, sectors and localities continue to spot and remove obstacles that hinder production and business; expand efforts to lure and disburse FDI and ODA capital; carry out measures to save power in both production and consumption synchronously and efficiently. The Ministry of Industry and Trade (MoIT) instructs the Electricity of Việt Nam to calculate and regulate power consumption to ensure adequate supply of power for production.

- The Ministry of Finance (MoF) takes the prime responsibility and collaborates with the MoIT in reviewing and proposing adjustments to tax policies toward encouraging domestic production of auxiliary spare parts instead of imports; protecting locally-made products that need protection; and adopting specific, effective solutions that fit with Việt Nam’s WTO commitments to restrain imports, like automobiles, farm product and luxury consumption commodities in a bid to narrow trade deficit.

- The Ministry of Labor, Invalids and Social Affairs coordinates with relant agencies to study and propose adjustments needed to be made to the minimum salary for workers; reviews and supplements new beneficiaries of social and subsidy policies taking into account the new poverty line. The MoF takes the prime responsibility in coordinating with the Ministry of National Defense, the Ministry of Public Security, and the Ministry of Education and Training in considering and submitting a rise in expenses for food that servicemen of the armed forces have at staff canteens; and adjusting the amount and interest rate of learning-purposed loans designed for students.

- The ministries, sectors and localities continue focusing on deploying effectively the adopted social welfare policies; monitoring the provision of financial assistance for poor households to help them partly cover power bill and irregular subsidies for low-income earners, and making proposals to immediately assist those who have met with difficulties recently, such as workers in foreign-invested garment, textile, and footwear businesses and freelance laborers.

- The National Transport Safety Committee is in charge of working with relevant agencies to recommend efficient measures to control and minimize traffic accidents, especially the measures that prevent drinkers of wines, beers and spirits from partaking in traffic flow; and intensifying the inspection of the training of drivers and the granting of driving licenses to further improve the quality of these works.

- The Ministry of Information and Communications is responsible for coordinating with relevant ministries, agencies and localities to continue speeding up the dissemination of information relating to the fight against inflation; proactively supplying the public with contents of policies with their short-term difficulties and long-term effects as well as initial and positive outcomes of the implementation of Resolution 11/NQ-CP and other documents issued by the Government and the Prime Minister; developing a project on the organization of video-conference from the central to communal level and implementing it immediately in 2011.

2. Regarding the Action Program for realization of the ten-year Socio-economic Development Strategy for the 2011-2020 period and the five-year Orientations and Tasks for national development in the 2011-2015 period presented by the Minister of Planning and Investment.

The Government required ministries, agencies, and localities to continue making comments for the draft Action Program for realization of the ten-year Socio-economic Development Strategy for the 2011-2020 period and the five-year Orientations and Tasks for national development in the 2011-2015 period and sending them to the Ministry of Planning and Investment and the Office of Government. Based on the comments, the MoPI will take prime responsibility in collaborating with the Office of Government to examine, supplement and finalize the draft program and submit it to the Prime Minister before May 15, 2011 for reporting to the Politburo and the Party Central Committee.

3. The Government heard and debated the Report on mechanisms and policies for the restructuring of the Việt Nam Shipbuilding Industry Group (Vinashin) presented by the Minister of Finance.

The Government unanimously evaluated that the implementation the Politburo’s Conclusion and the Government’s Restructuring Plan for Vinashin has brought in initial outcomes. However, taking into account the group’s current financial capacity and conditions, it is necessary to make the best use of current legal regulations to formulate appropriate mechanisms and policies to resolve difficulties the group is facing in implementing equitization, handling assets of its enterprises and projects in line with the restructuring plan, securing its charter capital, dealing with the payment of old debts and the acquisition of new loans for undertaking production and business toward goals and business lines set in the restructuring plan to ensure it will maintain production, gradually cut losses, make profits, and pay debts.

The Government unanimously adopted the Report presented by the Finance Minister and assigned the Finance Minister to work with the Governor of the State Bank of Việt Nam, the Minister of Transport, the Minister of Industry and Trade, the Minister of Justice to finalize the draft Resolution on mechanisms and policies for Vinashin to enable it to carry out the restructuring process, and submit it to the Prime Minster for issuance and implementation.

4. The Government listened to the Report on the organization of the elections of the 13th National Assembly and the People’s Council at all levels for the 2011-2016 term, presented by the Minister of Home Affairs.

The Government asked all ministries, agencies, and localities to continue to instruct and review the preparations at all levels to ensure the elections will be carried out in line with law. It also asked all ministries, agencies and localities to work with the MIC to diversify the popularization of the elections. The Ministry of National Defense and Ministry of Public Security are asked to work with localities to ensure security and order during the preparatory and voting time. The Ministry of Home Affairs continues to instruct, organize training courses and manage the organization of these elections, and collaborate with the National Assembly’s Office and the Ministry of Finance to put forth expenditure plans for the elections to be held successfully in an economical way.

5. The Government commented on the State Budget Balance-Sheet Report for 2009, presented by the Minister of Finance.

The Minister of Finance was assigned to collect comments from the Cabinet members to finalize the Report and present it to the National Assembly Standing Committee and the National Assembly on behalf of the PM and the Government.

6. The Government heard and commented on a draft Decree that will replace Decree No. 109/2007/NĐ-CP, dated June 26, 2007 on transforming 100% SOEs into Joint Stock Companies. The draft Decree was presented by the Minister of Finance.

It assigned the Ministry of Finance to work with the Ministry of Justice, the Office of Government, and relevant agencies to collect the Cabinet members’ ideas for finalizing the draft Decree and submit it to the Prime Minister for consideration and issuance.

7. The Government debated the Bill on Tertiary Education, presented by the Minister of Education and Training, and heard a report on the Cabinet members’ comments on the Bill, presented by the Minister-Chairman of the Government Office.

The Ministry of Education and Training was tasked to work with the Ministry of Justice to craft a report asking the National Assembly Standing Committee to delay deadline for bill submission until the second session of the 13th National Assembly. The Ministry of Education and Training was assigned to garner comments from the Cabinet’s members to make the bill complete for submission to the National Assembly./.