RESOLUTION No. 01/2005/NQ-CP OF JANUARY 14, 2005 ON A NUMBER OF MAJOR SOLUTIONS TO DIRECTING THE IMPLEMENTATION OF THE 2005 SOCIO-ECONOMIC PLAN AND STATE BUDGET

The year 2005 is the final year of decisive role in the implementation of the Resolution of the IXth Party Congress and Resolution No. 55/2001/QH10 of the National Assembly on the 2001-2005 socio-economic development plan. In order to deploy the realization of the Resolutions of the XIth National Assembly’s 6th session on the 2005 socio-economic development tasks and state budget estimate, the Government hereby maps out a number of major solutions to concentrated direction and administration in 2005 as follows:

I. TO CONTINUE IMPROVING THE BUSINESS ENVIRONMENT AND STEP UP ECONOMIC GROWTH IN TERMS OF BOTH ITS RATE AND QUALITY

A. TO CONTINUE IMPROVING THE BUSINESS ENVIRONMENT, CREATE CONDITIONS TO PROMOTE ECONOMIC UNITS TO RAISE THEIR EFFICIENCY AND COMPETITIVENESS

1. The Natural Resources and Environment Ministry and the Finance Ministry shall finalize in the first quarter of 2005 documents guiding the implementation of the Government’s Decrees detailing the implementation of the Land Law.

2. The People’s Committees of the provinces or centrally run cities (hereinafter called the provincial-level People’s Committees for short) shall speed up the grant of land use right certificates, focusing on urban residential land and production forest land; strive to accomplish the grant of land use right certificates by the end of 2005.

3. The Natural Resources and Environment Ministry shall direct and coordinate with the localities in completing the land inventories nationwide, finalizing the land use plannings and plans till 2010; stepping up ground clearance, resolutely recovering land areas left unused or used inefficiently in accordance with law provisions in order to satisfy the demands for grounds of investment projects. Biannually, the Natural Resources and Environment Ministry shall send sum-up reports to the Government on the results of materialization of this undertaking.

4. The Planning and Investment Ministry shall submit in the third quarter of 2005 to the Government the drafts of the Law on Enterprises and the Law on Investment for common application to domestic enterprises of all economic sectors and foreign-invested enterprises.

5. The Planning and Investment Ministry shall submit in the first quarter of 2005 to the Government the scheme on further attraction of foreign direct investment along the direction of stipulating the investment licensing registration in accordance with the roadmap on fulfillment of Vietnam’s international economic integration commitments, expanding the decentralization and authorization of investment licensing and management to the provincial-level People’s Committees.

6. The Finance Ministry shall assume the prime responsibility for, and coordinate with the Planning and Investment Ministry, the Trade Ministry and the General Department of Statistics in, stepping up the analysis and forecast of market price developments; take initiative in handling according to competence or submit to the Prime Minister specific solutions to price administration, management and stabilization; to strictly handle acts of violating the legislation on prices.

7. The State corporations must take initiative in ensuring production reserves, circulation reserves in order to raise the capacity to participate in supply-demand regulation, contributing to coping in time unexpected price fluctuations, if any.

8. The ministries, ministerial-level agencies and Government-attached agencies (hereinafter called the ministries for short) shall, in the first quarter of 2005, review, supplement, amend and promulgate regulations on development and opening of services for domestic economic sectors and foreign-invested enterprises, ensuring the strict implementation of international commitments already signed with ASEAN, the United States, EU, Japan,... cases beyond their competence shall be submitted in the second quarter of 2005 at the latest to the Government for decision.

9. The Finance Ministry shall coordinate with the concerned ministries in submitting to the Government in the first quarter of 2005 the scheme on vigorously shifting activities in the domains of education, healthcare, culture, physical training and sports to the mechanism of service activities in conformity with the socialist-oriented market economy.

10. The ministries, the People’s Committees of all levels shall create conditions regarding land for production, market approach information, trade promotion... for the vigorous development of enterprises, particularly people-founded enterprises, contributing to boosting economic growth and job creation according to the objectives set by the National Assembly.

11. The Finance Ministry shall join the Ministries of Trade, Transport, Industry, Post and Telematics, Science and Technology, and Foreign Affairs in expeditiously reviewing every type of charge and fee in order to abolish charges and fees set in contravention of law provisions by agencies, enterprises; taking measures to immediately reduce high input service charges, reduce assorted charges and fees for transportation, warehousing in seaports, airports and expenses for activities related to the implementation of APEC’s Program of Action till 2006.

12. The Planning and Investment Ministry, the Public Security Ministry and the Finance Ministry shall revise and amend regulations on business registration, seal carving, grant of tax identification numbers and sale of invoices, rationalize implementation steps so that by the end of 2005, these jobs shall take no more than 15 days.

B. TO STEP UP THE SYNCHRONOUS DEVELOPMENT OF ASSORTED MARKETS, TO VIGOROUSLY SHIFT PRODUCTION AND BUSINESS ACTIVITIES TO THE MARKET MECHANISM

1. The Construction Ministry and the Natural Resources and Environment Ministry shall expeditiously elaborate the Real Estate Business Bill, report it to the Government for submission to the National Assembly in the second quarter of 2005.

2. The Labor, War Invalids and Social Affairs Ministry shall submit to the Government in the first quarter of 2005 the amendments and supplements to regulations on labor employment along the direction of expanding the rights for enterprises in labor recruitment, particularly foreign laborers.

3. The Post and Telematics Ministry shall study and submit to the Government for promulgation or promulgate according to its competence in the second quarter of 2005 the regulations on dealing in axial telecommunications networks along the direction of separately accounting the charges and managing the connections to avoid the discrimination against enterprises outside Vietnam Post and Telecommunications Corporation when using services on national axial communication networks.

4. The Science and Technology Ministry shall finalize the scheme on development of science and technology market and submit it to the Government in the first quarter of 2005.

5. The Finance Ministry shall, in the third quarter of 2005, review and evaluate five years’ operation of the central securities market and submit to the Government the scheme on securities market development in the 2006-2010 period in compatibility with the overall scheme on perfection and development of the capital market and monetary market in Vietnam.

6. The Agriculture and Rural Development Ministry shall, in the second quarter of 2005, submit to the Prime Minister measures to promote the association among four parties (the peasants, the enterprises, the scientists, the State) through signing contracts on production, farm produce consumption under the Prime Minister’s Decision No. 80/2002/QD-TTg of June 24, 2002; and at the same time propose binding terms and measures to effectively handle disputes over association contracts.

C. TO STEP UP THE MOBILIZATION OF INVESTMENT CAPITAL OF ALL ECONOMIC SECTORS FOR ECONOMIC GROWTH

1. The Planning and Investment Ministry shall submit to the Government in the second quarter of 2005 the decree amending the Government’s Decree No. 77/CP of June 18, 1997 on Regulation on domestic investment in BOT form.

2. The Transport Ministry shall, in the second quarter of 2005, promulgate the list of BOT projects in the field of transport to attract capital sources outside the State budget.

3. The Construction Ministry shall, in the second quarter of 2005, promulgate the list of investment projects on economic and social infrastructures calling for investment capital from domestic economic sectors, from overseas, particularly projects on water supply or drainage, waste treatment, environmental sanitation, construction of new urban centers, urban traffic, public facilities.

4. The Planning and Investment Ministry shall, in the second quarter of 2005, promulgate the list of national projects calling for foreign investment; propose the Prime Minister to adjust, supplement branch and domain development plannings along the direction of expanding the participation in investment by various economic sectors, including foreign investors.

5. The Planning and Investment Ministry shall, in the first quarter of 2005, promulgate the list of specific branches and trades where foreign investors may contribute no more than 30% of the investment capital under the provisions of the Domestic Investment Promotion Law. For other branches and domains outside this list, the percentage of foreign investors’ capital contribution shall not be limited.

6. The ministries and the provincial-level People’s Committees shall continue improving and publicizing the investment processes and procedures along the direction of simplicity, convenience and shortened time of investment appraisal and licensing.

7. The Planning and Investment Ministry shall, in the first quarter of 2005, submit to the Government the decree supplementing and amending Decree No. 22/1999/ND-CP of April 14, 1999 providing for the overseas investment by Vietnamese enterprises in order to unify the management and create favorable conditions for overseas investment activities of Vietnamese enterprises.

8. The Finance Ministry and the provincial-level People’s Committees shall accelerate the roadmap on abolition of regulations on different prices between domestic investors and foreign investors.

9. Localities shall take initiative in reviewing the land management and use so as to work out measures to tap the land funds and sources of revenue from land in direct service of their development investment.

D. TO STEP UP THE REORGANIZATION, EQUITIZATION, AND THE RAISING OF EFFICIENCY OF OPERATION, OF STATE ENTERPRISES

1. The Finance Ministry, the Labor, War Invalids and Social Affairs Ministry, the Natural Resources and Environment Ministry, the Planning and Investment Ministry and the State Bank of Vietnam shall, in the first quarter of 2005, promulgate adequate documents guiding the implementation of the Government’s Decree No. 187/2004/ND-CP of November 16, 2004 on transformation of state companies into joint-stock companies. The ministers and presidents of the provincial-level People’s Committees shall have to direct and organize the reorganization of state enterprises under the Prime Minister’s Decision No. 155/2004/QD-TTg of August 24, 2004, promulgating the criteria and classification list of state enterprises and independent cost-accounting member companies of state corporations, and the approved plannings, plans.

2. Big state enterprises, when conducting equitization, must make the listing on securities market. The Finance Ministry shall have to guide, monitor and supervise the implementation of this provision.

3. The Finance Ministry shall guide corporations, big enterprises (Vietnam Electricity Corporation, Vietnam Cement Corporation, Vietnam Post and Telecommunication Corporation,...) in issuing corporate bonds to mobilize capital and expand investment, production and business.

4. The ministries, localities shall, according to their functions and assigned responsibilities, step up the handling of outstanding debts of state enterprises, making healthy the financial situation of state enterprises in order to support the process of equitization, reorganization, renewal, raising the operation efficiency of state enterprises.

5. To continue stepping up and expanding the scope of equitization of state enterprises to cover a number of corporations and big enterprises in the sectors of electricity, metallurgy, mechanical engineering, chemicals, fertilizers, cement, construction, land, river way, air and maritime transportation, telecommunications, banking, insurance and state corporations operating in sectors where the State needs not to hold 100% capital. Pending the equitization of entire corporations, to equitize member enterprises. To sell equities of equitized state enterprises, first of all corporations and big companies, on the securities market.

6. The ministries and the provincial-level People’s Committees shall raise their responsibility for state management over the operations of state enterprises under the Law on State Enterprises. Enterprises which are subject to equitization but decline or delay the equitization shall certainly have their leading posts replaced.

II. TO RAISE THE INVESTMENT EFFICIENCY, TO COMBAT LOSSES AND WASTAGE IN INVESTMENT

A. TO CONTINUE REVISING, UPDATING THE PLANNINGS AND RAISING THEIR QUALITY

1. The Government shall promulgate a decree on planning and planning management in the first quarter of 2005. The relevant ministries shall promulgate documents guiding the implementation thereof in the second quarter of 2005 at the latest.

2. The ministries and provincial-level People’s Committees shall have to perform the state management over the approved plannings and work out measures to prevent and handle in time or propose the competent authorities to handle units and individuals deciding on investment not in accordance with plannings; and at the same time to continue materializing the Resolutions of the Political Bureau and actions programs of the Government on the implementation of the Political Bureau’s Resolutions on socio-economic development and maintenance of security and defense in the Central Highlands, the Mekong river delta, the northern midland and mountainous regions, northern Central Vietnam and Central Vietnam’s coastal region to 2010.

3. The Planning and Investment Ministry and branch-managing agencies shall revise, adjust and supplement branch plannings, key economic zone plannings, key product plannings in the second quarter of 2005 along the direction that plannings serve as orientations for localities to elaboborate detailed plannings, for enterprises of all economic sectors (including foreign-invested enterprises) to work out their production and business plannings and plans; to publicize plannings and enhance inspection and supervision by communities over the planning work.

4. The provincial-level People’s Committees shall revise and supplement socio-economic development plannings of their localities to be in line with the central branch, regional, product plannings; renew methods of elaborating the plannings, helping the planning products promote advantages of localities, serve as orientations for mobilization of all social resources for development, serve the economic restructuring, tap all potentials to speed up the industrial and service development rates.

B. TO RAISE INVESTMENT EFFICIENCY, TO COMBAT WASTE, LOSS OF INVESTMENT CAPITAL OF THE STATE

1. The Planning and Investment Ministry shall submit, in the first quarter of 2005, to the Government the Regulation on management of investment with the state capital (including budgetary capital, state credit capital, investment capital of state enterprises) along the direction of gradually abolishing the state of self-containment in construction investment, separating the function of state management over investment and construction from business management in all processes.

To effect the mechanism of bidding for projects of investment with the state capital; the investment deciders must not concurrently act as project investors; the design consultancy organizations, building contractors and supervision consultants of a project, a work must not be in the same managing agencies (ministries, provinces, cities); to clearly define the conditions and criteria for acting as investors, project management units; to raise the capabilities and professionalism of project management units.

Together with decentralization in investment and construction management, to continue supplementing remedies on comprehensive liabilities of investors for the efficiency, quality, construction tempo of projects; liabilities of investment deciders, project management units, of organizations and individuals providing technical design consultancy, construction supervision consultancy, contractors participating in construction.

Completed investment projects must be audited before the final settlement of the works.

2. The Construction Ministry shall, in the second quarter of 2005, promulgate capability criteria and operation conditions of technical design consultancy organizations and construction supervision consultancy organizations along the direction of encouraging organizations and individuals of all economic sectors within and without the country to participate in these activities; to shift these organizations of the State to operate independently without managing agencies.

3. The ministries and the provincial-level People’s Committees shall revise and evaluate the current legal documents on construction investment, promptly proposing the Government to amend, supplement, promulgate specific regulations on measures for inspection, examination and supervision of investment with the state capital sources; the principles and criteria for distribution of investment capital according to objectives; to publicize the distribution of state investment capital; to publicize the inspection and examination results; to handle in a timely and severe manner units and individuals acting in contravention of law provisions.

4. To continue implementing the Prime Minister’s Directive No. 29/2003/CT-TTg of December 23, 2003 on reorganization and management of investment and construction with the state capital sources; to review investment undertakings and efficiency regarding a number of big projects on which still exist divergent opinions in order to determine the handling ways.

5. In 2005, authorities competent to decide on investment shall have to examine and take responsibility for projects being constructed and expected to commence their construction so as to ensure investment efficiency, overcome the situation of even-spread investment; and must resolutely not decide on investment in projects for which capital sources are not yet surely ensured.

For projects being prepared for investment, to reevaluate the investment schemes, review the planning, technical, technological, market... requirements; if the investment does not yield practical results, the decisions thereon must not be made.

For projects with investment being made, review and calculation should be made to amend, supplement technical solutions, adjust their scales and renew technologies in order to ensure the efficiency of the projects; if the continued investment is deemed inefficient, it must resolutely be stopped.

Where investment projects are deemed inefficient but still continued, thus leading to failure in capital recovery and repayment of loan debts, the persons who have decided to continue with the investment must be administratively handled or disciplined, depending on the seriousness of their violations, or criminally handled if causing serious consequences.

In the second quarter of 2005, the ministries and localities shall send reports on review of the above contents to the Planning and Investment Ministry for making a sum-up report to the Government.

6. On inspection of capital construction investment:

a) The inspectorates of the Government, the ministries and localities shall concentrate on inspection of capital construction investment to combat scatteredness, waste, loss, negative phenomena in capital construction investment, right from the designing step.

b) The Planning and Investment Ministry shall work out and organize the implementation of programs on plan and investment examination, supervision and inspection of a number of big projects in the sectors of transport, irrigation, electricity, construction.

7. The Planning and Investment Ministry shall submit to the Prime Minister in the second quarter of 2005 for promulgation the regulation on responsibilities of the persons who appraise and decide on investment projects along the direction:

a) The persons having decided on investment in projects must bear responsibility for the efficiency and capability to ensure capital sources; the investment projects must strictly comply with plannings already approved by competent authorities and do not contravene the current regulations on investment and construction management.

b) Clearly defining the personal responsibilities of investment appraisers and deciders, the construction supervisors for the work quality.

8. The state budget capital reserved for development investment must be discussed and decided by people-elected bodies. The Planning and Investment Ministry shall submit to the Government in the third quarter of 2005 the proposals to the National Assembly on amendment of criteria of projects which must be submitted to the National Assembly and propose criteria of investment projects which must be submitted to the People’s Councils of different levels for consideration and approval of investment undertakings according to a strict process.

9. The ministries and localities must reserve satisfactory investment capital from the 2005 budget estimates for repayment of outstanding debts in capital construction investment, not to let new debts arise against law provisions; those localities which have started the construction of works while capital have not yet been arranged in the plans, basing on mobilized capital of contractors, loans of credit institutions, thus causing outstanding debts and appropriating capital of enterprises must put aside parts of their annual budgets for debt repayment and must, from now on, stop such casual decision on investment.

10. The Planning and Investment Ministry shall coordinate with the Finance Ministry and relevant ministries in revising, in the first quarter of 2005, the list of works invested with government bond sources, ensuring their efficiency; only issue bonds when works, projects licensed for investment from Government bond sources have completed all procedures and satisfy all conditions for immediate execution.

11. The Planning and Investment Ministry shall assume the prime responsibility for, and coordinate with the Finance Ministry, other relevant ministries and localities in, reviewing the lists of projects on border patrol roads, mountain irrigation, border communes without (motor) roads to the hearts of communes so as to arrange the Government bond sources according to the National Assembly’s resolutions.

12. The Planning and Investment Ministry shall assume the prime responsibility for formulation of plannings on attraction and use of official development assistance (ODA) capital sources for the 2006-2010 period; take initiative in supplementing and amending according to its competence or propose the Government to amend documents related to ODA capital management, first of all the Government’s Decree No. 17/2001/ND-CP of May 4, 2001 promulgating the Regulation on management and use of ODA capital sources.

13. All branches, levels and units must thoroughly grasp and correctly materialize the Prime Minister’s Directive No. 17/2004/CT-TTg of May 24, 2004 on accelerated disbursement of ODA capital sources; create vigorous improvement in capital disbursement and raising the efficiency of the use of ODA capital sources.

14. The Finance Ministry shall submit to the Government in the first quarter of 2005 the scheme on amending and supplementing the Ordinance on Bidding for Procurement of Public Properties; promulgate the regulation on examination and supervision of the use of capital when implementing the projects of investment with the state capital.

15. The Planning and Investment Ministry shall coordinate with the National Assembly’s agencies in elaborating regulations to ensure that people-elected bodies and population communities can supervise the execution of works invested with the state capital.

16. The State Bank of Vietnam shall assume the prime responsibility for, and coordinate with the General Department of Statistics and relevant agencies in, building a system to supply information on enterprises, serving as basis for helping banks to consider and decide on loans.

17. The Planning and Investment Ministry shall assume the prime responsibility for, and coordinate with the Finance Ministry in, submitting to the Government in the second quarter of 2005 the conditions for establishment of independent foreign-invested enterprises operating in the domain of evaluating the credibility of enterprises in order to support credit institutions in considering and deciding on capital lending and give more grounds for enterprises to determine financial transparency when issuing corporate bonds and participating in the capital market.

III. ADMINISTRATION OF FINANCIAL AND MONETARY POLICIES

A. REGARDING FINANCE AND STATE BUDGET

1. The ministries and localities shall enhance their direction to combat under-collection, striving to surpass the budget revenue estimate at least by 5% as compared with the estimate assigned in the Prime Minister’s Decision No. 194/2004/QD-TTg of November 17, 2004 so as to supplement sources for performance of the socio-economic tasks and wage reform.

2. The ministries and localities shall allocate and assign the 2005 estimates to budget-using units within the prescribed time limits. After March 31, 2005, the planning and finance agencies at all levels shall synthesize and report to competent agencies the reduction of expenditures or transfer of unallocated capital to other units.

3. For national target programs, apart from the source of capital support from the central budget, the localities shall base on the objectives and tasks of every programs to take initiative in arranging budget and additionally mobilizing other lawful sources so as to ensure that by the end of 2005 the 2001-2005 objectives and tasks of the programs in their localities shall be accomplished.

4. The Finance Ministry shall, in the second quarter of 2005, submit to the Government the amendments and supplements to the financial mechanism for non-business units along to the direction of increasing their autonomy in finance, organization of task performance, organization and payroll management,... for application to all non-business units with revenues, creating a motive force for vigorous development of public-service activities.

5. The Finance Ministry shall submit to the Government in the second quarter of 2005 a draft decree on amendment and supplementation of policies to encourage the development of non-public non-business establishments along the line of stepping up the socialization of medical, educational, cultural, physical training and sport activities.

6. The Finance Ministry, the Planning and Investment Ministry and the State Bank of Vietnam shall finalize the mechanism for financial and monetary supervision, particularly foreign debts, with a view to ensuring the national finance security, controlling capital flows, loans, loan repayment, expanding forms of financial publicity.

7. The ministries and localities shall publicize the 2005 budget estimates according to the provisions of the Prime Minister’s Decision No. 192/2004/QD-TTg of November 16, 2004, promulgating the Regulation on Financial Publicity.

B. REGARDING MONEY AND CREDIT

1. To control inflation, it is requested that:

a) The State Bank of Vietnam works out solutions to raise the analytical and forecasting capability to actively regulate the monetary market with a view to stabilizing the internal and external purchasing power of the Vietnamese currency, striving to keep the 2005 consumer price indexes within the limit decided by the National Assembly.

b) The Financial and Monetary Policy Advisory Council shall submit to the Prime Minister in the first quarter of 2005 the assessment of, and propose measures to control, price rises in 2005, particularly in the first months of the year.

2. The State Bank of Vietnam shall intensify the inspection and supervision of activities of credit institutions, work out measures to raise the credit quality and control the increase of risk assets with a view to curb the trend of increasing bad debts of credit institutions; detect and handle in time violations in credit and monetary activities.

3. To further speed up the implementation of the scheme on restructuring the system of commercial banks in order to raise their financial capabilities and competitiveness; to sum up and evaluate the implementation of the scheme on handling of outstanding debts of commercial banks.

4. The State Bank of Vietnam shall expeditiously realize the directing opinions of the Prime Minister in Official Dispatch No. 988/VPCP-KTTH of December 13, 2004; submit to the Prime Minister in the second quarter of 2005 the scheme on handling bad debts of credit institutions after applying international standards and practices on accounting, credit classification and risk reserve deductions.

5. The State Bank of Vietnam shall concentrate on speeding up the development of the monetary market within the framework of the scheme on perfection and development of the capital market, monetary market in Vietnam; speed up the implementation of the project on modernization of banks and payment systems; expand non-cash payment; prepare conditions for implementation of the Government’s decree on non-cash payment.

6. The State Bank of Vietnam shall submit to the Government in the second quarter of 2005 the scheme on the roadmap of raising the convertibility of Vietnamese currency, step by step overcoming the phenomenon of dollarization in the economy; draft the Ordinance on Foreign Exchange for submission to the Government in the first quarter of 2006.

7. The Public Security Ministry and the State Bank of Vietnam shall take initiative in applying measures to prevent and handle in time acts of producing, circulating and consuming counterfeit money as well as other crimes in the banking domain.

C. ON THRIFT PRACTICE, WASTE COMBAT

1. The ministries and the provincial-level People’s Committees shall complete in the first quarter of 2005 the scrutiny and handling, according to their respective competence, of violations in managing and using working offices of state management agencies, non-business units under their respective management; recover establishments used not for the right purposes for provision to other units with legitimate demands.

2. The ministries and the provincial-level People’s Committees shall, in the first quarter of 2005, re-examine the number of automobiles they are using; resolutely handle violations in the management and use of vehicles, which had been detected from 2004 backward (including the transfer of excessive vehicles among attached agencies, units).

3. The Finance Ministry shall submit to the Prime Minister in the first quarter of 2005 the amendment and supplementation of the regime of car equipment and supply in the public sector.

4. The ministries, localities and establishments must practice thrift and combat wastage, particularly in organizing conferences, seminars, meetings, anniversaries, reception of emulation titles and domestic and overseas working missions, surveys, study tours,...; must not organize reception, gift presentation, not combine conferences, seminar with visits, recreation. The state budget shall not supplement funds outside estimates for these activities.

5. The Finance Ministry shall submit to the Prime Minister in the first quarter of 2005 for promulgation the decision on criteria and norms of working facilities supplied for the state administrative agencies and the regulation on presents and gifts.

IV. TO STEP UP EXPORT AND ACCELERATE THE PROCESS OF INTERNATIONAL ECONOMIC INTEGRATION

1. The ministries and localities shall guide enterprises in continuing to apply solutions to the expansion of markets, the accelerated production of exports along the direction of raising the ratios of industrial goods, processed goods in order to raise the value of export goods.

2. The ministries and localities shall take initiative in applying measures to reduce protectionism, to enhance the restriction and control of business monopoly; guide commodity line associations and enterprises in analyzing the competitiveness of products and services and proposing concrete measures to reduce production costs, intermediate expenses, to increase labor productivity and raise the quality of each product, service; work out concrete measures to encourage the production of new commodity items of high export growth potential.

3. The Trade Ministry shall coordinate with the relevant ministries in revising, and proposing the supplementation and amendment of, mechanisms on open economic zones, market places on borderlines with neighboring countries.

4. The state management agencies having responsibility in managing export and import activities (quota allocation, customs, tax, credit, payment...) must take strong measures to prevent corruption and harassment of enterprises for bribes, to reduce inconvenient procedures, ensuring publicity and transparency and increasing dialogues with enterprises.

5. The Trade Ministry shall coordinate with the relevant ministries, production and business line associations and localities in stepping up key trade promotion activities, attaching importance to markets with high export turnovers like EU, the United States, Japan, China,...; work out measures to raise the quality and efficiency of trade promotion activities.

6. In order to help enterprises integrate efficiently and limit risks:

a) The Trade Ministry, the Foreign Affairs Ministry and production-managing ministries shall take initiative in detecting, supplying information on, proposing measures to promptly cope with, non-tariff barriers, technical barriers in international trade; guide enterprises in strictly following the production processes, technical-economic standards of export products, raising the prestige of Vietnamese goods on international markets.

b) The Trade Ministry shall expeditiously finalize the scheme on active prevention and combat against foreign commercial lawsuits under the Prime Minister’s direction in Official Dispatch No. 6071/VPCP-QHQT of November 9, 2004.

c) The Trade Ministry and the Finance Ministry shall disseminate information to and guide enterprises in applying tax reduction programs (CEPT/AFTA); making full use of commitments to opening of ASEAN markets to expand the export markets. The Industry Ministry shall elaborate a scheme to raise the competitiveness of Vietnamese textiles and garments, take advantage of the market diversification and step up export into countries where quotas are lifted like EU, Canada.

7. The ministries shall expeditiously perform the assigned tasks in order to support the Government’s negotiation delegation in early completion of negotiations to achieve the target of joining WTO by the end of 2005; and at the same time, base on international commitments and time-table to open branches, domains so as to guide enterprises prepare for efficient integration.

8. The Justice Ministry shall assume the prime responsibility for, and coordinate with the relevant ministries in, expeditiously promulgating or submitting to the competent authorities for promulgation the amendment and supplementation of necessary documents, meeting the requirements of admission to WTO. The Justice Ministry shall supervise and examine the implementation of elaborated legislative programs.

V. A NUMBER OF SOLUTIONS IN THE SOCIAL DOMAINS

1. The Ministry of Labor, War Invalids and Social Affairs shall submit to the Prime Minister in the first quarter of 2005 for promulgation the poverty standards for the 2006-2010 period; at the same time, coordinate with the General Department of Statistics in directing and guiding localities to conduct surveys and statistics on poor households in each commune, district, province (which must be completed in the third quarter of 2005) for use as basis for formulating and implementing hunger elimination and poverty reduction policies.

The localities shall expeditiously draw up comprehensive programs on hunger elimination and poverty reduction for the 2006-2010 period. The Labor, War Invalids and Social Affairs Ministry shall synthesize and submit them to the Government in the third quarter of 2005.

2. The ministries and localities shall continue handling efficiently and sustainably the work of hunger elimination and poverty reduction in the countryside, particularly deep-lying, remote, ethnic minority-people regions; step up the movement of entire population’s support for building dwelling houses for poor households, particularly poor households with meritorious services.

3. The People’s Committees of all levels shall well implement the Prime Minister’s Decision No. 134/2004/QD-TTg of July 20, 2004 on a number of policies on production land, residential land, dwelling house and daily-life clean water support for poor ethnic minority households, ensuring democracy, publicity and transparency.

4. The Labor, War Invalids and Social Affairs Ministry and localities shall work out mechanisms and concrete solutions to encourage various economic sectors to invest in the qualitative building and expansion of networks of job training for laborers, particularly rural youths, meeting the demand of labor for industrial parks and export,...; reorganize the labor export and expand labor-export markets.

5. The Education and Training Ministry shall have the tasks:

a) To submit to the Government in the first quarter of 2005 the Government’s action program for materialization of the National Assembly’s Resolution No. 37/2004/QH11 on education.

b) To submit to the Government in the second quarter of 2005 the scheme on renewal of tertiary education and the scheme on adjustment of ramification in senior high education to provide vocational guidance for pupils and to suit the practical conditions in Vietnam.

c) To submit to the Government in the second quarter of 2005 the scheme on comprehensive renewal of the state management over education along the direction of clearly dividing and decentralizing responsibilities and powers of the Education and Training Ministry, other ministries and provincial-level People’s Committees.

d) To submit to the Government in the second quarter of 2005 the scheme on renewal of school fee regime.

e) To apply synchronous measures to prevent dishonesty in examinations, thesis and dissertation writing, diploma and certificate granting; to overcome the overstatement of achievements; to immediately ban charged extracurricular teachings by teachers for pupils of their own classes, own schools.

f) To revise, adjust and supplement the planning on networks of universities, colleges, professional secondary schools, the criteria and conditions for setting up universities and colleges and submit it to the Prime Minister for approval.

g) To perfect the legal grounds for various forms of non-public education and training, to promulgate mechanism and policies for transformation of public education and training into non-public education and training.

6. The Education and Training Ministry, the Finance Ministry, the Planning and Investment Ministry and the People’s Committees of various levels shall speed up the construction and capital disbursement under the program on solidification of schools, striving to attain its objectives in 2005.

7. The Health Ministry shall submit to the Government the overall scheme on renewal of hospital fee regime in the first quarter of 2005; the scheme on amendment and supplementation of the health insurance charter; the scheme on expansion of the scope of compulsory health insurance, the legal framework for application of various forms of voluntary health insurance, community health insurance; elaborate and publicize plannings on hospital networks, pharmaceutical industry, preventive medicine system in the second quarter of 2005.

8. The Health Ministry shall continue perfecting and raising the effect of state management over pharmacy as well as medical examination and treatment; submit to the Government the scheme on development of curative medicine production, reserve and circulation.

9. The Agriculture and Rural Development Ministry shall coordinate with the Health Ministry and the People’s Committees of all level in taking strong measures, mobilizing all forces to inspect, zone off and absolutely stamp out the bird flu and other animal epidemics, not letting them spread widely; direct localities in overcoming draughts, preventing and fighting natural calamities, forest fires and stabilizing people’s life.

10. The Committee for Population, Family and Children shall coordinate with relevant agencies in enhancing the inspection and supervision of the implementation of family planning, restricting the third-child birth; study and submit to the Government the scheme on amendment of Article 10 of the Population Ordinance for submission to the National Assembly Standing Committee.

The Party organizations and administrations at all levels shall closely coordinate with mass organizations and social organizations in stepping up the propagation, agitation and education for implementation of undertakings, policies and legislation on population and family planning.

11. The Culture and Information Ministry shall have the tasks:

a) To apply specific measures to encourage the contingent of writers and artists to create more works of high ideological and artistic value, better meeting the people’s increasing cultural and spiritual demands, particularly in deep-lying, remote areas; to encourage and create conditions for various economic sectors to participate in building the cultural life, contributing to the elimination of negative phenomena in the domain of culture and information.

b) To submit to the Government in the second quarter of 2005 the scheme on development of television and radio broadcasting networks nationwide.

c) To draw up and implement the plan on materialization of the Political Bureau’s conclusions on a number of measures to enhance the management of press.

12. The mass media agencies shall actively detect and encourage in time advanced models, good persons and good deeds in production and life; ensure accurate and truthful information in the struggle against red tape, corruption, wastage and social evils; not carry reports at variance with undertakings or orientations, thus affecting the direction and administration by the Government, the Prime Minister.

13. The Physical Training and Sports Committee shall apply specific measures to reorganize and perfect the state management in the field of physical training and sports; assume the prime responsibility together with the Health Ministry for submitting to the Government in the third quarter of 2005 the scheme on organization of, and mechanism for coordination among, agencies responsible for the protection of health, improving the physical strength and stature of Vietnamese.

14. The Science and Technology Ministry shall promulgate according to its competence or submit to the Government for promulgation legal documents on intellectual property; propose a mechanism for shifting technological research, application and transfer institutions to operate after the enterprise model.

15. The Science and Technology Ministry shall have the tasks:

a) To submit to the Government in the second quarter of 2005 the scheme on mechanisms, policies and solutions on stepping up the application and development of high technologies.

b) To submit to the Prime Minister the substantial renewal of mechanism for formulation and management of scientific and technological tasks of various levels and branches.

16. The Natural Resources and Environment Ministry shall elaborate and promulgate Vietnam environment standards; enhance the management and supervision of activities of exploiting and using natural resources; step up the environmental protection propagation and education.

17. The Construction Ministry shall assume, together with the Finance Ministry and the Natural Resources and Environment Ministry, the responsibility for proposing mechanisms and policies to encourage enterprises and localities to build dwelling houses for workers in industrial parks.

18. The Ministries of Education and Training; Health; Science and Technology; Cultural and Information; and Labor, War Invalids and Social Affairs; and the Physical Training and Sports Committee direct the acceleration of socialization in the domains under their respective management; classify, clearly determine specific mechanism for application to each type of public-service units: type of units continuing to be fully provided with funding by the State; type of units partially provided with support by the State, type of units which must offset their own expenses, first of all regular expenses; step by step expand the type of fully self-financing establishments.

19. The ministries shall study for supplemen-tation the policies on, expand the scope of, and create favorable conditions for, attraction of foreign investment in various forms so as to strongly develop non-public service establishments; prescribe policies on support for non-public establishments voluntarily operating under non-profit mechanism. A number of public service establishments can also be transformed into joint-stock companies or enter into joint ventures with foreign parties.

20. The Ministries of Public Security and Defense and the provincial-level People’s Committees shall work out specific plans to realize the strategy for national defense in the new situation, combining the tasks of socio-economic development with the tasks of consolidation and enhancement of security and defense potential and ensuring social order and safety.

VI. TO STEP UP THE ADMINISTRATIVE REFORM, INTENSIFY THE WORK OF CORRUPTION PREVENTION AND COMBAT

1. In 2005, the heads of the Government’s agencies, the presidents of the People’s Committees at all levels must review all their organizational apparatuses, working process of agencies; personally direct the administrative reform, rearrange and narrow  apparatuses and streamline payrolls; immediately abolish overlapping or complicated contents as well as bureaucratic, troublesome and time-consuming processes.

2. The ministries and the People’s Committees at all levels must systemize the regulations on necessary procedures and papers for each type of work, publicizing them on the mass media and at working offices for use by people as basis for implementation and supervision of implementation. The Government Office shall submit to the Prime Minister the gathering of opinions of people and enterprises on administrative processes and procedures. Agencies and units are strictly forbidden to set out administrative procedures outside the regulations already made public by competent state bodies.

3. The Home Affairs Ministry shall direct localities in following the “one-door” model at all administration levels, ensuring the smooth settlement of people’s requests, further decentralizing the district and commune levels to carry out procedures directly related to everyday work of people.

4. The Home Affairs Ministry shall join the Finance Ministry in formulating the mechanism for controlling incomes, declaring properties and personal incomes by State officials and employees, particularly persons holding positions and powers.

5. The administrative agencies must build up the leadership and management culture, working-office culture, demonstrating first of all in the responsibility and behavior when handling people’s affairs; exercise democracy in their agencies and in their relations with people; set bright examples in adopting the civilized life style in holding weddings, funerals; pay special attention to formulating and well implementing the working regulations for grassroots administrations, first of all the regulations on settlement of people’s affairs. To combine the reorganization of operation of administration apparatuses with the implementation of regulations on democracy at the grassroots.

6. On settlement of complaints, denunciations:

a) The ministries and People’s Committees at all levels must thoroughly grasp and materialize all contents of the Resolutions of the National Assembly and the Directives of the Prime Minister on settlement of complaints and denunciations of citizens, ensuring that by the end of 2005 all outstanding cases of complaint and lawsuit shall be basically settled, not letting any complaint-related “hot spots” appear; firmly grasp the situation and promptly settle right at the grassroots cases of mass complaint, denunciation, clarifying the cause, particularly mistakes in the state management so as to address them in time and handle officials or public servants who have made illegal decisions or committed illegal acts, thus leading to complaints or lawsuits by people; to intensify direct dialogues in order to handle in time people’s proposals.

b) The Government Inspectorate shall consult with relevant agencies and localities and submit to the Prime Minister in the first quarter of 2005 measures to basically handle cases of the level-skipping lodging of complaints and petitions, particularly complaints and petitions after the final decisions (of ministries, provinces) were made.

7. To assign the Government Inspectorate:

a) To review the Anti-Corruption Ordinance and submit to the Government in the first quarter of 2005 the anti-corruption bill. To report in the second quarter of 2005 to the Prime Minister for further submission to the State President for ratification the United Nations Convention on Corruption Combat.

b) To submit to the Government in the second quarter of 2005 the scheme on setting up the National Steering Committee (with representatives of relevant ministries) epitomizing the strength of the political system in corruption prevention and combat.

8. The Home Affairs Ministry shall assume the prime responsibility for, and coordinate with the Government Inspectorate in, submitting to the Government in the third quarter of 2005 the Regulation on Public Duty Inspection (Examination) for use as basis for the work of inspection (examination) in a number of management domains: house, land, tax, customs, construction investment and a number of specific cases and matters reflected by voters, public opinions.

9. The ministries and localities shall seriously abide by the conclusions of inspecting or auditing agencies; publicize the conclusions of inspecting or auditing agencies as well as the handling results; the heads of superior agencies shall have to handle according to law provisions the heads of violating agencies or units.

10. The leaderships of ministries, localities must direct the administrative reform right at the grassroots level according to specific plans, specify the time table as well as responsibility of persons assuming the prime responsibility for implementation and periodically report on the implementation results to the superior bodies. The Home Affairs Ministry shall have to synthesize the situation and report thereon to the Government biannually and annually.

VII. IMPLEMENTATION ORGANIZATION

1. Basing themselves on the 2005 Working Program and this Resolution of the Government, the ministries and provincial-level People’s Committees shall work out their specific action plans, clearly defining objectives, tasks and time and assigning persons to take charge of every tasks; monthly and quarterly review and assess the implementation situation.

2. The ministries and the People’s Committees at all levels shall launch emulation movements and organize conferences to praise advanced models in order to record achievements in honor of big anniversaries in 2005 and in welcome of the VIIth National Emulation Congress and the Xth National Party Congress, contributing to promoting the fulfillment of the five-year (2001-2005) socio-economic development plan.

3. The Government shall organize seminars with localities to discuss long-term basic tasks and to handle burning issues arising on a large scale; at the same time, maintain quarterly briefings to review the situation and work out measures to accelerate the implementation of state plans and budget.

4. By the end of November 2005, the ministries and provincial-level People’s Committees make reports on the implementation of this Resolution and submit them to the Prime Minister and send them to the Ministry of Planning and Investment. The Ministry of Planning and Investment shall sum up the results of implementation of the Resolution, assessing the performance by each ministry, each locality and reporting thereon to the Government and at the Government’s year-end conference with localities.

On behalf of the Government
Prime Minister
PHAN VAN KHAI