RESOLUTION

ON MEDIUM-TERM PUBLIC INVESTMENT PLAN OF 2016 - 2020 PERIOD

THE NATIONAL ASSEMBLY OF THE SOCIALIST REPUBLIC OF VIETNAM

Pursuant to the Constitution of the Socialist Republic of Vietnam;

Pursuant to the Law on Public investment No. 49/2014/QH13;

Pursuant to the Law on State budget No. 01/2002/QH11 and the Law on State budget No. 83/2015/QH13;

Upon the consideration of the Statement No. 471/TTr-CP, the Report No. 472/BC-CP dated October 19, 2016 by the Government; the Inspection report No. 176/BC-UBTCNS14 dated October 19, 2016 by the Finance and Budget Committee; the Report No. 50/BC-UBTVQH14 dated November 9, 2016 by the Standing committee of the National Assembly of the Socialist Republic of Vietnam and the National Assembly’s enquiry reports on medium-term public investment plan of 2016 - 2020 period,

RESOLVES:

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1. Objectives:

Restructure and increase the effectiveness of the use of public investment, maximize the attraction and use effectively investments in development, perfect basically the essential system of socio-economic infrastructure, serving the implementation of objectives of socio-economic development of 2016 - 2020 period and restructure the economics of 2016 - 2020 period.

2. Orientation:

a) Focus on the provision of capitals to expedite the progress and complete National target programs, projects of national importance and key projects which are necessary to boost the socio-economic development of Vietnam, with the regional connection and spreading; use effectively the capitals from other economic sectors. Investments in the development of the State budget shall not be allocated to sectors or projects which other economic sectors may invest in;

b) Prioritize investments from the State budget in mountainous, border or island areas, areas with many ethnic minorities, remote and isolated areas, areas high frequency of natural disasters and areas with extremely disadvantaged socio-economic conditions; supports with housing to people meritorious to the revolution; tasks of fighting against climate change, prevention, fighting and elimination of drought in the Central Highlands and the south central coast, the salinization in the Mekong Delta and marine environment pollution in 4 provinces of the Center area;

c) The investment from the State budget in 2016 - 2020 period to sectors, domains and programs shall comply with regulations in the Resolution No, 1023/NQ-UBTVQH13 by the Standing committee of the National Assembly of the Socialist Republic of Vietnam;

d) The collection from the sale of the state capitals of several enterprise shall be invested to important projects with high socio-economic effect.

Article 2. Total medium-term investment form the state budget in 2016 - 2020 period

1. Total medium-term investment form the state budget in 2016 - 2020 period shall not exceed VND 2,000,000 billion, where:

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b) Investment in the balance of local government’s budget shall be VND 880,000 billion.

2. Provisions for medium-term investment plan from the state budget of the 2016 - 2020 period to handle issues arising during the implementation of medium-term investment plan as follows:

a) 10% of each investment shall be transferred to the common provisions;

b) Ministries and regulatory of central and local governments shall transfer 10% of the capitals provided according to medium-term to the provision fund.

Article 3. National target programs and projects of national importance

1. VND 72,817 billion of the development investment from the State budget of the 2016 - 2020 period shall be used for implement 02 National target programs, including:

a) VND 43,119 billion shall be invested in National target program for rural development;

b) VND 29,698 billion shall be invested in National target program for stabilized decrease of poverty.

2. VND 5,000 billion shall be invested in the site clearance of the Long Thanh International Airport Project.

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Article 4. The principle of allocation of the state budget capital of the 2016 - 2020 period

1. The provision of capitals shall serve the implementation of objectives and orientation specified in the 10-year socio-economic development strategy of 2011 - 2020 period; the Plan on 5-year socio-economic development of 2016 - 2020 period of Vietnam or of sectors, domains or local areas, socio-economic development planning and planning of each sector/domain/area which have been approved by competent authorities.

2. The provision of capitals shall be conformable to provisions of the Law on public investment, the Law on State budget, the Resolution No. 1023/NQ-UBTVQH13 of the Standing committee of the National Assembly of the Socialist Republic of Vietnam and relevant documents.

3. Investments shall be allocated concentratively to eliminate the dispersal, spreading and the incompletion to ensure the effectiveness of the investment from the state budget; reciprocal capitals for ODA projects shall be provided sufficiently. Concurrently, other lawful capitals shall be mobilized to expedite the progress and complete the two National target programs, projects of national importance and key projects which are necessary and urgent and target programs to boost the socio-economic development of Vietnam, with the regional connection and spreading.

4. Areas receiving the central government’s budget of the 2016 - 2020 period shall commit to making up for the lacked amount by using the local government’s budget and other lawful capitals to complete the project according to the schedule. For the increase of total investment in the project in comparison with the total investment allocated by competent authorities to serve the medium-term investment plan, local government shall balance it with the additional investment from other lawful capitals to complete the project according to the schedule and ensuring the quality.

5. For foreign capitals, the demand for lend and the solvency of the implementing projects shall be balanced with those of new projects.

Article 5. Order of priority in the allocation of the state budget capital of the 2016 - 2020 period

1. For domestic capitals, excluding Government bonds, the capitals shall be allocated according to the following order of priority:

a) Sufficient allocation of capitals for the repayment of unsettled debts derived from infrastructural development; the recovery of advances; the State budget capitals shall not be allocated for the payment of unsettled debts derived from infrastructural development arising after December 31, 2014;

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c) Allocation of capitals for transferred plans which are completed in the 2016 - 2020 period;

d) When capitals have been allocated sufficiently according to the abovementioned order of priority, the remaining amount shall be considered being allocated to newly-started projects.

2. For Government bonds, the capitals shall be allocated according to the following order of priority:

a) Supplementation to the insufficient Government bonds of the investments in important projects and constructions in the field of transport and irrigation specified in Annex No. 3 of the Resolution No. 726/NQ-UBTVQH13 by the Standing committee of the National Assembly of the Socialist Republic of Vietnam and the relocation project  serving Son La hydroelectric construction;

b) Allocation of capitals for urgent projects of healthcare, transport and irrigation sectors and for the solidification of school constructions of pre-school or primary-school level for areas with many ethnic minorities and remote and isolated areas.

3. For foreign capitals, capitals for implementable projects shall be allocated and disbursed according to the central government’s budget specified in the Agreement signed for specific project of the 2016 - 2020 period. The capitals of medium-term plan allocated for each project must not exceed the foreign capitals in the central government’s budget approved by competent authorities.

Article 6. Measures for implementing medium-term public investment plan of the 2016 - 2020 period

1. Boost the restructuring of the spending of the state budget in the direction of using efficiently and reducing recurrent expenses to increase the amount of spending on the development. Ministries, regulatory bodies and local government shall perform the economy in each plan according to the Government’s regulations.

2. Minimize the granting of advances of medium-term public investment plan capitals. In case of necessity, the granting of advances shall be under tight supervision, ensure the compliance with regulations in the Law on public investment and the Law on State budget. The amount of advances of specific project must not exceed the allocation specified in the medium-term public investment plan and provided that the payment of the advances is ensured.

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4. Allocate the state budget capital and increase the mobilization of infrastructural investment capitals in form of Public-Private Partnerships (PPP). Boost the private sector involvement in public services regarding healthcare, education, culture, sport and constructions and infrastructural projects serving the production and activities of people in rural areas.

5. Heads of the Government, Ministries and regulatory bodies of central and local levels having legal responsibility in the decision on investment and quality assurance shall formulate a report on proposal, assessment and approval for investment projects and/or decisions on investment in the project to thoroughly eliminate the situations where the project is prepared carelessly and not conformably to law, the decision on investment is unfocused and ineffective or the approval for total investment is inaccurate. Only really necessary projects shall be invested after assessing and clarifying their effect, capital sources, the capacity to balance and allocate capitals for each project, ensuring that the approved project has sufficient financial resources to be implemented.

6. Intensify the inspection, audit and supervision of the compliance with disciplines in the management of public investment; tight control the objectives and the effectiveness of the utilization of investments; ensure the transparency in the mobilization and management of loans; impose penalties on individuals and organizations committing violations against laws on public investment under the decision of the National Assembly, the Government and competent authorities.

Article 7. Government's responsibilities

1. Expeditiously complete documents, prepare draft of Resolution on investments for projects of national importance and send it to the National Assembly for decision according to the Law on public investment.

2. Review and expeditiously complete the List of projects and the amount of capital allocated therefor and send it to the Standing committee of the National Assembly of the Socialist Republic of Vietnam for opinions before January 31, 2017, before assigning the medium-term public investment plan of the 2016 - 2020 period. Projects in the List of medium-term investment plans shall fully satisfy the requirements specified in the Law on public investment. The allocation for each project must be in accordance with the balancing capacity and must be conformable to the objectives, orientation, principles and order of priority in allocation of medium-term public investment of the 2016 - 2020 period.

3. Conduct, implement and direct Ministries, regulatory bodies and local governments to implement consistently and drastically measures for implementing the medium-term public investment plan of the 2016 - 2020 period; conduct inspection and impose strict penalty for violations.

Article 8. Organization of implementation

1. The Government, Ministries and regulatory bodies of central and local level shall, within their functions and tasks, implement this Resolution.

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3. The Central Committee of Vietnamese Fatherland Front and its members and social organizations established according to law shall supervise and encourage people from all social strata to implement this Resolution.

This Resolution has been ratified in the 2nd Meeting Session of the 14th National Assembly dated November 10, 2016.

CHAIRMAN OF NATIONAL ASSEMBLY




Nguyen Thi Kim Ngan