RESOLUTION

ON URGENT MEASURES TO CURB ECONOMIC DECLINE, MAINTAIN ECONOMIC GROWTH AND ENSURE SOCIAL WELFARE

On December 1 and 2, 2008, the Government held its regular meeting to assess the socio-economic situation in November and the first 11 months of 2008 and new world economic developments affecting the domestic socio-economic situation.

Recently, with the fruitful implementation of 8 solution groups, inflation has been controlled, the macro-economy has been basically stabilized, social welfare has been ensured and the economic growth rate in 2008 is estimated at about 6.7%. These achievements are attributed to the correct guidelines of the Party, the strict administration by the Government and the endeavor of the entire political system and the whole population. Since October 2008, the world economic situation has developed in a fast, complicated and unforeseeable manner; the global financial crisis and economic recession have directly impacted the national, economy with decline in production, business and export and directly affected peoples employment and life.

In face of such situation, the Government has pointed to the necessity to focus the administration on the materialization of the 2009 plans overall objectives and solutions adopted by the Xlth National Assembly at its fourth session, of which the central and urgent tasks are to concentrate all efforts on actively curbing the economic decline, boosting production and business, stepping up export, stimulating investment and consumption, ensuring social welfare and striving for the economic growth rate of around 6.5% in 2009.

To these ends, ministries, branches and localities are required to immediately implement the following urgent measures:

I. TO BOOST PRODUCTION, BUSINESS ANDEXPORT

1. In 2009, efforts must be concentrated on the implementation and completion of programs and schemes defined in the Governments Resolution No. 24/2008/NQ-CP of October 28, 2008, promulgating its action program for the materialization of the Resolution of the Xth Parry Central Committees 7th plenum on agriculture, peasants and rural areas.

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3. The Ministry of Agriculture and Rural Development is assigned:

a/ To assume the prime responsibility for, and coordinate with the Finance Ministry and concerned agencies in, submitting to the Prime Minister the levels of monetary supports in rice, subsidiary food crop varieties and cattle, poultry and aquatic breeds for peasants to restore agricultural and fishery production in areas hit by natural disasters and/or epidemics for quick restoration of production and, at the same time, to well prepare strains, supplies, fertilizers, irrigation, capital for the 2008-2009 winter-spring crop. To actively apply synchronous measures to prevent and control diseases and epidemics for crops and domestic animals and prevent and combat coldness for cattle when winter comes.

b/ To assume the prime responsibility for, and coordinate with ministries, branches and localities in, formulating mechanisms, policies and specific solutions for raising capital from various sources, stepping up the capital disbursement for efficient use of state budget capital sources for improvement of dyke systems, upgrading of irrigation and drainage systems, aquaculture infrastructure, storm shelters for vessels, support of canal solidification, forestation and agricultural, forestry and fishery extension.

4. To step up the production of domestic consumer goods, particularly foodstuffs, brewages, textiles and garments, curative medicines; to prioritize supports for industries producing import substitutes, using domestic raw materials and/or employing intensive labor, such as enterprises manufacturing consumer goods, construction materials, mechanical engineering, shipbuilding, fertilizer industries.... To support the sale of a number of industrial products still in stock such as steel cast, construction steel, cement, fertilizer, paper, chemicals on the principle of rescheduling loan terms, interest rate exemption or reduction for high-interest loans.

The Ministry of Industry and Trade shall propose policies to support domestic organizations and individuals in manufacturing industrial products which can substitute imports, then submit them to tha Prime Minister in December 2008.

5. The Ministry of Industry and Trade and the Ministry of Transport concentrate resources and close direction on the scheduled completion of works and projects being left uncompleted, especially big or key projects, for which the completion time limits have passed, particularly projects on energy, expressways, airports, seaports, rural roads.

6. The Ministry of Construction shall direct project owners, concentrating resources for the scheduled completion of projects on cement, building materials; assume prime responsibility for, and coordinate with the Ministry of Finance and the Ministry of Planning and Investment in, proposing to the Prime Minister the plan on use of cement in order to realize the guidelines of stimulating investment and consumption.

7. The Ministry of Science and Technology shall assume theprime responsibility for, and coordinate with concerned ministries and branches in, building national programs on renewal of technologies, application and development of high technologies in manufacturing and business domains with a view to raising the quality and competitiveness of commodities.

8. The Ministry of Industry and Trade and the Ministry of Foreign Affairs shall regard export promotion as one of their central tasks in 2009 in order to contribute to realizing the Governments guidelines; step up trade promotion activities and expand export markets to regions which are less affected by the financial crisis and economic decline in the direction of promoting trade according to each commodity group, each big export contract. To increase high-level contacts in order to expand markets and trade ties, lobbying through official and non-official channels so as to be active in coping with trade protection policies, removing tax and non-tax barriers to step up export. Ministries and localities shall actively apply appropriate measures to boost trade promotion and encourage the consumption of home-made goods; supplement funding sources and provide supports for export promotion and exploitation of domestic markets.

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10. The Ministry of Industry and Trade shall direct Vietnam Petroleum Group and Vietnam Coal and Mineral Industries Group to flexibly adjust their business activities; strictly control transaction and bidding activities in order to ensure the most efficient export of crude oil, coal and other minerals of export value; coordinate with other ministries and localities in flexibly administering cross-border trade activities towards encouraging export while controlling import; balance imported raw materials sources and adopt policies to encourage processing for increase of export turnover for industries employing intensive labor and using domestic supplies; support exporting enterprises by mode of handing goods at bonded warehouses.

The Ministry of Industry and Trade and presidents of provincial/municipal Peoples Committees shall enhance their direction against cross-border smuggling.

11. The Ministry of Agriculture and Rural Development shall assume the prime responsibility for studying and proposing policies to support investment in post-harvest technologies for agricultural, forestry and fishery products, particularly drying systems for annual summer-autumn crops, rice silos systems for Mekong river delta, and processing technologies in order to help peasants reduce losses, fruitfully sell their commodity farm produce; support the construction of marketing centers for peasants in provinces with large-scale and concentrated commodity production, including agricultural service-providing establishments and export aquatic product quality-examining centers in regions with concentrated production.

12. The Ministry of Industry and Trade shall submit in January 2009 the 2009-2010 scheme on stepping up export, curbing trade deficits to the Prime Minister for approval, attaching importance to solutions to higher export competitiveness (regarding the business environment, the competitiveness of enterprises and the competitiveness of commodity groups); further realize the policies on import substitutes by boosting support industries, manufacturing industries and petro-chemical industry in order to make full use of resources, technologies, supplies, equipment and machinery, which are domestically produced up to the prescribed standards, to reduce trade deficits.

13. The Minister of Industry and Trade and the Minister of Agriculture and Rural Development shall specifically scrutinize every domain and every commodity group and report thereon and propose specific measures to the Prime Minister in December 2008 for removing difficulties, supporting the development of production and business for every commodity group, every goods item of mass production.

14. The Ministry of Culture, Sports and Tourism shall assume the prime responsibility for, and coordinate with concerned agencies and localities in, reviewing and removing difficulties so as to speed up the implementation of key national tourist projects; submit to the Prime Minister in December 2008 the Regulation on support for national tourism promotion programs and the funding sources in support of tourism promotion in the 2009 plan; raise the efficiency of, and step up tourism promotion and advertisement on international television channels in close coordination with trade and investment promotion to broaden the areas and contents of tourism advertisement.

15. The Ministry of Transport shall work out plans to upgrade airports in localities where exist national tourist sites while applying measures to increase flights in order to attract passengers from markets with high tourist spending potentials; the Ministry of Foreign Affairs shall assume prime responsibility for, and coordinate with the Ministry of Public Security in, proposing the Government to consider the entry visa exemption for tourists from potential markets.

The tourist industry must attach more importance to raising the quality of tourist services up to international standards and, at the same time, draw up programs and products bearing deep Vietnamese identities in order to increate the rate of tourists returning to visit Vietnam.

II. TO APPLY MEASURES FOR INVESTMENT AND CONSUMPTION STIMULATION

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In couple with further removing difficulties, creating conditions for and encouraging various economic sectors to directly invest in production and business development, efforts should be concentrated on applying the following urgent measures:

a/ The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Construction and concerned agencies in, reviewing all current legal documents on investment and construction for immediate address of loopholes which affect the schedule of implementation of investment projects; quickly draft a law amending and supplementing the investment and construction laws for passage by the XIIth National Assembly at its upcoming 5th session.

b/ For projects and works financed by state budget capital: The remaining capital amounts of 2008 will continue to be disbursed till the end of June 2009. For important and urgent projects and works with capital not yet allocated, including projects on resettlement in economic zones, ministries, branches and localities shall direct investors to expeditiously complete the investment procedures and actively work with the Ministry of Planning and Investment and the Ministry of Finance in handling capital sources, including advances from state budget for implementation.

c/ To temporarily postpone the withdrawal of state budget capital advanced before the 2009 plan, excluding the 2009 advances for completion in 2008. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance and concerned agencies in, submitting to the Prime Minister in December 2008 a list of projects and capital amounts entitled to withdrawal postponement.

d/ For government bond financed projects and works on the list of those assigned by the National Assembly Standing Committee and the Prime Minister, the total investment can be adjusted; thereby regulating capital among projects and works and getting payment according to construction progress. At the same time, the remaining government bond capital of 2008 will continue to be disbursed in 2009.

The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance and concerned agencies in, finalizing the scheme on allocation of 2009 government bond capital before December 31, 2008, giving priority to projects on the list issued together with the Prime Ministers Decision No. 171/QD-TTg of July 24, 2006; adding other urgent projects in the domains of traffic, irrigation, healthcare and education for implementation.

About VND1.5 trillion from government bond capital will be advanced for investment in construction, renovation and upgrading of irrigation systems, improvement of dyke systems; raising the irrigation and drainage capacity and preventing and combating storms and floods in the Red river delta. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development and the Ministry of Finance in, submitting to the Prime Minister in December 2008 a list of projects and capital amounts advanced for every project.

dd/ The Ministry of Planning and Investment shall assume the prime responsibility for promulgating specific measures to further attract and speed up the disbursement of FDI and ODA capital sources, particularly investment projects on construction of infrastructure, investment projects on manufacture of hi-tech products, of great export value, labor-intensive projects, striving for the target that the capital disbursement in 2009 will not be lower than the 2008 level.

e/ To assign the Ministry of Planning and Investment to propose the National Assembly Standing Committee in December 2008 to permit investment-deciding authorities to appoint contractors for projects capitalized at not more than VND 5 billion each in mountainous, deep-lying, remote areas and take responsibility for their decisions according to law.

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Economic groups and state enterprises shall actively participate in important infrastructure projects or works such as seaports, electricity, expressways, irrigation, schools, medical establishments in order to speed up the implementation tempo and plans on construction of national socio-economic infrastructure.

h/ In December 2008, the Ministry of Construction shall submit to the Government a scheme on setting up of a social housing fund in the 2009-2015 period; the Ministry of Planning and Investment shall submit to the Government for promulgation appropriate mechanisms to encourage investment in the construction of workers dormitories in industrial parks.

2. Consumption stimulation

a/ To continue administering prices according to the market mechanism with regard to electricity, coal, clean water, bus fares,... In January 2009, the Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade and concerned agencies in, submitting to the Prime Minister a specific implementation roadmap.

b/ The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with concerned ministries and branches in, submitting to the Prime Minister a scheme on development of networks for distribution of essential commodities, focusing on such goods items as food, oil and gasoline, fertilizer, iron and steel, cement and curative medicines, so that the production of, and dealing in, these goods items can be managed by the State against trade frauds, speculation and price increase, which destabilize the market, and for protection of consumer interests.

c/ The Ministries of Industry and Trade;. Finance; Health; and Science and Technology shall enhance measures to manage the market, prices, goods quality and food safety and hygiene; strictly handle violations according to current laws, particularly illegal trading, tax evasion and alignment for speculation in order to comer the market and prices.

d/ Enterprises are encouraged to launch discount campaigns in order to stimulate consumption, immediately in the 2009 Lunar New Year festival.

III. FINANCIAL AND MONETARY POLICIES

1. Financial policies:

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b/ To reschedule the enterprise income tax payment time limit to 9 months with regard to 2009s enterprise income tax amounts payable by the above said medium- and small-sized enterprises (70% of the remaining tax amounts after reduction) and enterprises producing, processing on order, garments and textiles, leather shoes, electronic components or processing agricultural, forestry and fishery products.

c/ To temporarily reimburse 90% of the input value-added tax amount for actually exported goods if enterprises have not yet acquired via-bank payment documents and further reimburse the remaining 10% when the payment documents are available. The Finance Ministry shall guide the procedures for tax reimbursement, ensuring its strictness and eligible subjects.

d/ To adjust export tax rates for some kinds of natural resources and minerals and propose the Government to amend royalties tax rates towards restriction of export, ensuring raw materials sources for domestic production.

dd/ To reduce import duty rates for some commodity groups being production raw materials, which cannot be produced at home or have been produced but fail to fully satisfy demand, in order to create conditions for enterprises to reduce production costs and raise their competitiveness. To increase tax rate within WTO commitments, creating conditions to develop domestic production and curb trade deficit.

e/ To reschedule the tax payment grace periods for a number of commodity groups suitable to production cycles and product sale (shipbuilding, mechanical engineering,...). To well implement the policy on import duty payment grace period (275 days) for supplies and materials imported for export production.

g/ To reform export and import procedures, shorten the customs clearance duration, simplify procedures for tax refund and finalization for raw materials imported for export production or processing.

h/ To clearly and properly define the rates of discarded materials and faulty products in the course of importing raw materials for export production, which are not liable to import duty.

i/ In December 2008, the Finance Minister shall, under the Prime Ministers authorization, submit to the National Assembly Standing Committee the implementation of the Law on Personal Income Tax towards supporting a number of taxpayers meeting with difficulties.

The Finance Ministry is assigned to guide the implementation of the above contents.

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a/ To apply specific measures to facilitate access to credit capital sources by enterprises, particularly medium- and small-sized enterprises; export goods-producing or -dealing enterprises and enterprises meeting with difficulties in product sale, such as further reduction of compulsory reserves of credit institutions; proper reduction of base interest rates to support -reduction and business enterprises.

b/ To study and guide credit institutions to provide loans at mutually agreed interest rates stipulated in the National Assembly’s Resolution No. 23/2008/QH12 of November 6, 2008, on the 2009 socio-economic development plan, in the first quarter of 2009.

c/ Commercial banks shall restructure debt payment time limits and apply measures to handle bank loan debts in accordance with law for peasant households suffering damage caused by natural disaters and enterprises meeting with sale difficulties.

d/ To administer monetary policies in a flexible and efficient manner; to flexibly adjust foreign exchange rates according to market signals, encouraging export, controlling import, stabilizing macro-economy and trying to administer the international payment balance toward non-deficit.

dd/ The State Bank of Vietnam shall direct commercial banks to consider reduction of lending interest rates under credit contracts to suit the current interest rates, and do not apply overdue fines against medium- and small-sized enterprises meeting with difficulties.

The State Bank of Vietnam is assigned to guide the implementation of the above contents.

e/ The Vietnam Development Bank is assigned to perform the tasks of providing credit guarantee for medium- and small-sized enterprises in order to better support them in access to loan sources for production and business development, creating more jobs. The Finance Ministry shall join the State Bank of Vietnam in guiding the implementation right in December 2008.

IV. TO ENSURE SOCIAL WELFARE

1. The Finance Ministry shall assume the prime responsibility for, and coordinate with concerned agencies and flood-stricken localities in, immediately taking measures to provide support in food, house-repairing costs, epidemic prevention and control, plant varieties and animal breeds, ensuring that people are not left hungry and production is quickly restored after floods.

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3. To apply measures to promote the construction of houses for poor people, social policy beneficiaries, dormitories for laborers in industrial parks, and for pupils and students; to provide income supports for social policy beneficiaries, low-income laborers and people suffering damage caused by storms or floods. To direct localities to monitor and coordinate the parties in solving problems in labor relations in industrial parks, restricting labor disputes and strikes, particularly during the Lunar New Year festival.

4. To organize the implementation of unemployment insurance regimes under the Law on Social Insurance.

5. To increase national food reserves (more than 150,000 tons equivalent in rice) in order to take the initiative in providing relief to people in flood-stricken areas, not letting food shortage and hunger occur in disaster-hit areas.

6. To continue providing difficulty allowances for state budget-salaried people with difficult life and low incomes.

7. To enhance the direction to well implement poverty reduction programs, supplying adequate capital for the implementation of credit programs for poor households, poor pupils and students and other social policy beneficiaries through activities of the Social Policy Bank, policies on supports in production land, residential land, dwelling houses and daily-life water for poor ethnic minority households meeting with difficulties in life under Decision No. 134/2004/QD-TTg of July 20, 2004, of the Prime Minister.

8. Ministries, branches and localities shall mobilize social resources and increase budget funds for the vigorous development of vocational training in various forms for rural laborers, particularly those in poor households, contributing to production and business development, job creation, income increase and poverty reduction.

V. ORGANIZATION OF IMPLEMENTATION

The world economic recession develops unpredictably. The domestic economy is declining, 2009 will be more difficult than 2008. Administering measures should be implemented resolutely, flexibly and promptly in suitability to new developments. Concretely:

1. Tasks are very heavy, difficulties and challenges are extremely acute but opportunities, advantages and potential for national development are very great and fundamental. The Government requests ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal Peoples Committees, leaders of state enterprises, particularly groups and corporations, based on their functions and assigned tasks, to work out plans for immediate realization of guidelines, tasks and solutions stated in this Resolution.

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2. Ministries, central branches and local Peoples Committees should pay special attention to, and better organize economic forecasts and analysis. First of all, they shall attach proper importance to, closely organize and efficiently promote the existing research forces; at the same time, formulate appropriate mechanisms to ask for specialists opinions with a view to promptly understanding the development of situation and promptly supplementing or adjusting policies and solutions to suit the practical situation.

3. The Ky Suu Tet (the Lunar New Year of Buffalo) is approaching; ministries, branches and local Peoples Committees shall take the initiative in implementing programs, plans and measures to stabilize the market and prices during the Lunar New Year festival; take the initiative in working out plans for adequate supply of goods to satisfy demand; take effective measures against smuggling, trade frauds and tax evasion; resolutely fight acts of trading and using fire-crackers during Tet.

4. Ministries, branches and localities shall attach importance to the implementation of regulations on information, actively supplying information and closely coordinating with information and press agencies to ensure the publicity and transparency of information on the socio-economic situation and directing as well as administering solutions of central and local governments, meeting the information demands of people and enterprises, thereby consolidating their confidence, will and high sense of responsibility in response to the country’s difficulties in order to create consensus and integrated strength of the whole political system, bring into full play all potentials and advantages so as to materialize by all means the set objectives and solutions, aiming to take the economy out of difficulty for stable development.

The Ministry of Information and Communication shall continue directing information and propagation agencies to carry accurate news reports, to fully and promptly reflect the national socio-economic situation, support the guidelines and policies of the Party and the State, not publishing unfavorable or untruthful information of provocative nature, causing psychological concerns among people; strictly handle violations in the information and communication domain; take timely and effective measures against untruthful rumors and fabricated news which cause confusions in society.

5. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, heads of concerned units and organizations shall actively organize the realization of this Resolution immediately after it is promulgated by the Government and take responsibility before the Government and the Prime Minister for the implementation of the guidelines, tasks and solutions stated in this Resolution; at the same time, report to the Prime Minister on the implementation results and concurrently send them to the Ministry of Planning and Investment for synthesis and report at monthly meetings of the Government .

ON BEHALF OF THE GOVERNMENT
PRIME MINISTER




Nguyen Tan Dung