RESOLUTION

THE GOVERNMENT’S REGULAR MEETING - APRIL 2006

On April 26, 27 and 28, 2006, the Government held its regular meeting to discuss and decide on the following issues:

1. The Government listened to the Minister of Planning and Investment presenting the plan of socio-economic development during the period 2006-2010.

The overall target of the five year plan 2006–2010 is to boost the rate of economic growth, improve the quality, efficiency and stability of the development; increase the accumulation, which lay the foundation for the country’s industrialization and modernization; improve the standards of materialistic and spiritual life of the people; eradicate the country’s image as an underdeveloped country and make the country an industrial and modernization-oriented country in 2020; ensure the stability of the political state, social order and safety, preserve the independence, the sovereignty, the territorial integrity and the national security; improve the country’s status regionally and internationally.

The five-year plan during 2006-2010 was established with the following targets: continue to make use of the inherent advantages and the lessons drawn from the achievements gained during the 20 years of restoration and development, remarkably the lessons of liberate and promote the productive forces, take advantage of all national potentials, attract foreign investment, complete the structure of market economy, keep the stability of political state, take advantage of the chances, the tendency towards peace and cooperation in the region and the world; take interest in solving social issues, improving education and training, science and technology, especially training the people in order to increase the productivity, the quality of labor force and maintain the stable and high growth rate.

The Ministry of Planning and Investment was entrusted to receive the suggestions in the meeting to complete the draft plan of socio-economic development of the five year period 2006-2010; the Minister of Planning and Investment, on a proxy of the Prime Minister and on the behalf of the Government to submit the Assembly the draft plan.

The MPI directed and coordinated with other ministries and relevant agencies to draft the Resolution of the Government issuing the Government’s Action Program to implement the Resolution of the 10th Party’s General Assembly and the Five-year Plan 2006-2010, and submitted the plan to the Government in the session of June 2006 after the plan had been passed by the National Assembly.

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2. The Government listened to the Minister of Resources and Environment presenting the Five-year Plan of Land Use during 2006-2010.

During the period 2001-2005, our country basically achieved the targets of the Plan of Land Use passed by the National Assembly. During the period of 2006-2010, with the demand for enhancing the country’s industrialization and modernization, the effective use and exploitation of land play a more important role. However, the project and plan of using land has not been completed, the result of the project is poor. The project makers have not examined thoroughly the influences on the economy, the society and the environment; the project was carried out carelessly in some localities.

In order to take full advantage of land resource for the sake of the country’s stable development, the project and plan of using land during the five years 2006-2010 need concrete guidance on both local and national scales. The Plan of Land Use during the five years 2006-2010 must seriously consider the thriftiness and effectiveness of the implementation; the policy should restrict the exploitation of land for wet rice cultivation while developing a good irrigation system for industrial and urban areas; reserve land for essential infrastructures such as schools, hospitals and buildings of culture and sport; encourage and support the exploitation of wild lands, treeless hills, flooding lands and fallows for socio-economic development on local and national scale; improve the communication and dissemination of the planning of using land and increase the people's knowledge of the law on land using; develop the policy of compensation; clear the ground and speed up resettlement to ensure the process of reclaiming land for the purpose of national security and socio-economic development; adopt the policy to protect the legitimate rights, stabilize the life and employment of the people resettling.

The Ministry of Resources and Environment was assigned to receive the suggestions in the meeting to complete the Draft Plan of using land during the five years 2006-2010; the Minister of Resources and Environment, as a proxy for the Prime Minister, submit the Draft Plan to the National Assembly.

3. The Government listened to the Governor of the State Bank of Vietnam presenting the project of credit policy applying to Zones 2 and 3, mountainous areas, islands, Khmer minorities, businessmen of highlands and hamlets belonging to Program 135, which are generally called needy areas.

The policy supporting the needy areas is the Party and State's consistent approach. During the period 2006-2010, the supportive policy emphasizes on improving social areas, developing production and infrastructure for the purpose of comprehensive development of the areas.

In order to detach policy credit from commercial credit for the sake of State-owned commercial banks doing their business in the market economy, the Government unanimously transferred the mission of offering preferential loans to economic organizations and households in needy areas from the national commercial banks to the Development Assistance Support and Bank of Social Policy without transferring the former loans.

The Ministry of Commerce (MoC) was entrusted to consider and add the programs, projects and occupations of economic organization in needy areas in the list of projects proclaimed in the Government's Resolution on investment credit for development; and submitted to the Prime Minister the mechanism for loaning business households (not including poor ones) in the needy areas so that the Bank of Social Policy could work effectively.

The Ministry of Planning and Investment (MPI) and the MoC arranged the capital so that the Development Assistance Fund and the Bank of Social Policy could adopt the policy of preferential credit for needy areas.

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The MoC was entrusted to receive the suggestions in the meeting, consult the MPI, MoC, State Bank of Vietnam and the State Panel of Negotiators for Vietnam's entry into the World Trade Organization (WTO) and the other relevant offices to decide on the list of projects, commodities needing the capital from investment credit for development, State export credit; ensure the concreteness, openness, explicitness, practicality and the conformity of the projects with the WTO's regulations and Vietnam's commitments in the international treaties; draft the Resolution of investment credit for development and export credit and then submitting it to the Prime Minister.

The Government decided to establish the Vietnamese Development Bank on the basis that the Development Assistance Fund was rearranged to support the projects of investment credit for development and export credit. The Vietnamese Development Bank's missions of raising capital, repaying, managing and dealing with risky loans and credits as well as the organization and the staff should follow the regulations in conformity with the demand and scale of activities of the Bank.

5. The Government listened to the Minister of Planning and Investment presenting the Report of managing and using the capital of the State Budget.

During the period 2001-2005, thanks to the policy reform and the improvement in the investment environment, many resources of capital inside and outside the country were invested in the country's development, which made a crucial contribution to the achievement of socio-economic targets set in the plan. The capital generated from the State Budget played an essential role in developing socio-economic infrastructure, which created good conditions for attracting the capital from the other sectors of economy for investment and development, and gradually bringing about changes in the economy structure so that it operated towards industrialization and modernization orientation to achieve the targets of social engagement, poverty reduction and improvement in the people's life.

However, there have been problems in the management and use of the capital from the State Budget. The planning, plan approval, investment assessment, supervision, management of budget capital, ODA capital, mechanism of bid have not been integrated, the concrete responsibilities of individuals have not been defined, the relevant offices have not properly cooperated and worked irresponsibly, which resulted in ineffective investment, prodigality and loss.

In order to overcome the problems of managing and using capital from the State Budget, the planning and management of projects for socio-economic development and branch development should be improved, powerful sanctions should be issued to increase the responsibilities of the involved; reform of administration in construction investment and bid should be boosted, the "closed situation" of construction investment should be prevented; examination, supervision and strict punishment of infringement in the law of managing and using capital should be enhanced.

The Ministry of Planning and Investment was entrusted to receive the suggestions of the meeting to complete the report of managing and using the investment capital of the State Budget; direct and coordinate with the ministries, branches, and localities and submit it to the Government to issue the Resolution of planning socio-economic development; instruct the ministries, branches and localities to perform their functions with necessary methods to overcome the difficulties and effectively manage the use of capital from the State Budget according to the Program of Actions for thrift practice and corruption prevention.

6. The Government listened to the Minister of Industry presenting the Report of emigration and resettlement related to the project of Tuyên Quang hydroelectricity.

The project of Tuyên Quang hydroelectricity will bring about significant benefits. Together with the hydroelectric plants Hòa Bình, Sơn La, Thác Bà, the Tuyên Quang hydroelectric plant will regulate the source of water in Tuyên Quang, the Red River Delta in flood and drought seasons and increase the power supply for the economy. The Tuyên Quang hydroelectric plant is a central national project which requires the movement of a large population. Therefore, the Standing Committee of the National Assembly should be reported to pass the policy before the Government ratifies the overall project of emigration and resettlement.

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7. The Government listened to the Minister, Chair of Government Office presenting the Project of organizing, defining missions, authority and mechanism of operation of the Central Steering Committee in relation with preventing and fighting against corruption.

The Government Office was entrusted to direct and coordinate with the relevant offices to receive the suggestions of the meeting to complete the Project; consult Government members, submit to the Prime Minister for examination before submitting to the Politburo for consideration and the Standing Committee of the National Assembly for issuance.

8. The Government listened to the Minister of National Defense presenting the Draft Ordinance of changes and addition related to some terms in the Ordinance of the reserve force.

Together with the Law of Military Services, the Ordinance of reserve forces and legal documents instructing the implementation have established the legal corridor to carry out the missions of reserve forces. During the ten years of implementation, the establishment and mobilization of reserve forces made contributions to the strength of national defense. However, the Ordinance of reserve forces needs to be adjusted to fulfill the mission of defending the country in the new context.

The modification and addition of the Ordinance have to closely follow the Resolution of the 10th Party Congress of forming the People's Armed Forces to carry out the strategy of defending the country; ensure its integration with the Law of Military Services, and the related laws and ordinances; provide the legal basis for solving the problems, enhance the capacity of the reserve forces which can work with the regular army to meet the requirement of reinforcing the national defense, and protecting the accomplishments of the country in the new phase.

The Ministry of National Defense was entrusted to direct and coordinate with the Ministry of Justice, the Government Office and the relevant offices to receive the suggestions of the meeting to complete the Modification Ordinance adding some terms related to the reserve forces, and submit it to the Prime Minister for decision on the issue before submitting to the Standing Committee of the National Assembly.

9. The Government considered the proposal of the Ministry of National Defense and unanimously allowed Army Corps 16 belonging to the Ministry of National Defense to borow 100% of the preferential credit capital from the Development Assistance Fund to implement the Project of Economic-Defense Zone EaSup in Dak Lak. The Fund was assigned to help the Corps surmount the difficulties; the Ministry of Defense examined and instructed Corps 16 to use and manage the capital legally.

10. The Government considered the solutions to the problems arising in issuing the certificate of house ownership and right of land use when selling State-owned houses according to Resolution 61/ND-CP of the Government on July 5, 1994 submitted by the Minister, Chair of the Government Office.

In implementing Government Resolution 61/ND-CP dated July 5, 1994, many localities have basically finished selling Sate-owned houses to the tenants. The issuance of certificate of house ownership and right of land use to the buyers is widely supported by the public. However, in some localities where there are much State-owned land, the situation of management is complicated, the process of selling houses is slow, the procedure of issuing certificates is problematic. The Government unanimously directs the localities to make progress in their work and quickly finish the task of selling State-owned houses to the renters in 2006.

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11. With regard to the Draft Resolution of the policy supporting the development of non-State service supply agencies, the Government unanimously decided not to make any changes in the Draft Resolution to differentiate the service supply agencies with and without commercial purposes. The Ministry of Interior and the Ministry of Finance were entrusted to continue to study different criteria and concrete preferential matters for non-profit service supply agencies.

The Government Office was entrusted to receive the suggestions in the meeting to complete the Draft Resolution of the policy of supporting the development of non-State service supply agencies, then submitting to the Prime Minister for issuance.

12. In connection with implementing the policy for the redundant laborers due to the rearrangement of the State-owned companies in 2006, the Government unanimously decided to continue applying the policy supporting the redundant laborers due to the rearrangement of the State-owned companies, stated in Resolution 41/2002/ND-CP on April 11, 2002 and modified in Resolution 155/2004/ND-CP on August 10, 2004, from January 1, 2006.

13. With regard to the Draft Resolution with detailed regulations and instructions of implementing some terms in the Law of Education submitted by the Minister of Education and Training; the Draft Resolution instructing the Vietnamese companies to invest overseas submitted by the Minister of Planning and Investment: the Ministries were entrusted to complete the Draft Resolutions, consult the Government members and submit it to the Prime Minister for consideration and issuance.

14. The Government considered the Report of socio-economic situation, the Report of production, business, services and investment in April and the first four months in 2006 submitted by the Minister of Planning and Investment; the Report of commercial situation in April 2006 submitted by the MoC; the Report of inspection and solution of complaints and denouncements of the first quarter in 2006 submitted by the Government's Chief Inspector.

In April and the first four months in 2006, the economy continued to keep growing well: there was a considerable increase in the value of industrial production, the agricultural production stably developed, the epidemic of bird flu was effectively controlled; the total income from goods retailing and the turnover of services increased compared to the same period the previous year; the number of foreign visitors to Vietnam increased, the export turn-over, especially the foreign investment continued to increase, which ensured the regular expenditure on development investment, certain missions and due loans; the market prices remained stable. Cultural and social activities were satisfactorily managed and the public order and safety, maintained.

Besides the positive results achieved in April and the first four months in 2006, the economy had to face many challenges: the competitiveness of some industrial products was low, the prices of many goods were influenced by the changes of the international market, the unusual phenomena of the weather negatively influenced the production and the people's life; though there was progress in traffic management, there still existed many serious traffic accidents; smuggling, commercial fraud, corruption, prodigality, and social devils were not effectively prevented and limited.

In order to finish the plan of socio-economic development in 2006 and practically celebrate the success of the 10th Party's Congress, the Government required the Ministries, Branches and localities to closely watch the socio-economic situation, seriously and strictly direct the implementation of Resolution 01/2006/NQ-CP on January 16, 2006 of the primary measurements of carrying out the plan of socio-economic development and the State Budget in 2006; boost the production, adopt the measures of thrift practices, reduce production cost, enhance the competitiveness of goods and services; increase export, control the market prices, restrict the rise in prices, regulate the investment management and budget use; reinforce the inspection, examination and supervision of implementing investment projects to meet the schedule and quality of implementation; organize the talks to the people and solve the complaints and denouncements satisfactorily, avoid the complicated, prolonged and multi-level complaints.

The Ministries, Branches and localities took initiative in establishing the concrete program of actions to implement the Resolution of the 10th Party's Congress aiming at the Ministries, Branches and localities.

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ON BEHALF OF THE GOVERNMENT
PRIME MINISTER




Phan Van Khai