I. REAL SITUATION OF THE STATE ADMINISTRATION AND ADVANTAGES AS WELL AS DISADVANTAGES FOR THE STATE ADMINISTRATIVE REFORM IN THE 2001-2010 PERIOD

1. The real situation of the State administration

In furtherance of the resolutions of the VIIth Party Congress, the resolution of the 8th plenum of the Party Central Committee (VIIth Congress), the resolutions of the VIIIth Party Congress and the resolutions of the 3rd , 6th (second session) and 7th plenums of the Party Central Committee (VIIIth Congress), the administrative reform carried out over the past 10 years (1991-2000) has contributed an important part to the national cause of socio-economic renovation and development. Marked and significant results have been recorded in such administrative reform, including:

- The function and operation of the bodies within the administrative system from the Government, the ministries, centrally-run branches to the People�s Committees of all levels have changed for the better, focussing more on the State management;

- The administrative institution has been step by step renovated in all domains, first of all the formation of an economic institution suitable to the requirements of developing the socialist-oriented market economy;

- The organizational structures of the Government and administrative bodies at all levels have been readjusted and further streamlined than before; the administrative apparatus from the central to grassroots level has operated with higher effect and efficiency;

- The management and employment of public officials and employees have been further renovated under the provisions of the Ordinance on Public Servants, from the stage of recruitment, assessment, rank promotion examination, commendation and discipline to the stage of training and fostering. The wage regimes and policies have been initially reformed along the direction of monetarization.

However, the State administration remains deeply imprinted with the trace of the mechanism of centralized, bureaucratic and subsidized management and unable to meet the requirements of the new management mechanism as well as the requirements of servicing the people under new conditions; the management effectiveness and efficiency are not high:

- The State management function and tasks of the administrative apparatus in the socialist-oriented market economy have not yet been clearly defined; the responsibility assignment and division among branches and levels remain unclear;

- The system of administrative institutions remain incomplete, overlapping and inconsistent; the administrative procedures in various fields remain cumbersome and complicated; the order and discipline remain relaxed;

- The organizational structure remains cumbersome and multi-layered; the administrative management, being bureaucratic and centralized on the one hand and scattered on the other hand, has yet gone smoothly; there have been no mechanism and policies suitable to the operations of administrative bodies, non-business units as well as public-service organizations;

- The contingent of public officials and employees remains weak in quality, sense of responsibility, professional capability, administrative skills; the working style is slow to be renovated; red tape, corruption and harassment of people continue to occur among a section of public employees;

- The administrative apparatus in localities and establishments is not really attached to people, failing to grasp burning issues therein and being embarrassed and passive in coping with complicated circumstances.

The above situation is attributed to various causes. First, the public employees� perception of the State�s management role and function, the building of the State apparatus in general and the State administrative apparatus in particular in the new situation remains unclear and inconsistent; many theoretical and practical issues have yet been clarified; many policies mapped out under the old mechanism of centralized and bureaucratic management with State subsidies have not yet been amended or replaced in time. Second, the tasks of administrative reform have not yet been carried out synchronously with the renovation of organization and operation of the Party-led political system; the administrative reform has not yet been closely linked with the renovation of the legislative activities and judicial reform. Third, the administrative reform is confronted with big obstacle as it harms the interests of not a few administrative bodies, officials and employees in the State apparatus at the central and local levels; the mechanism of centralized and bureaucratic management with State subsidies has still exerted great impacts on the way of thinking and working style of not a few public employees; the administrative reform has not been well prepared ideologically. Fourth, the regimes and policies on organization and personnel, as well as wages still see many irrationalities, failing to create a motive force for the reform. Fifth, shortcomings still exist in the direction of the work of administrative reform by the Government, the ministries, centrally-run branches and People�s Committees at all levels; the direction of implementation of set undertakings remain not resolute and inconsistent.

2. Lessons on the administrative reform

From the reality of carrying out the administrative reform over the past 10 years and on the basis of the obtained results as well as shortcomings some general lessons can be drawn:

- The administrative reform is a big task relating to many fields, which must be carried out simultaneously in the overall renovation of the political system, combined with the Party building and restructuring and with the general reform of the State apparatus;

- The administrative reform should be closely combined with the economic reform in each stage, each domain and each geographical area, creating the harmony and interaction between the administrative reform and the renovation of economic management mechanism;

- The administrative reform is a sensitive and difficult job, demanding that the directing bodies have persistent viewpoints and principles as well as practical program of action in each period; the leadership and direction of the reform must be concentrated and unified with strong determination and will for the reform;

- The administrative reform must be deployed synchronously from higher to lower level, highly treasuring and encouraging innovations and experiments of localities and establishments, determining key things to settle in each period and finding specific driving force for the reform activities;

- The administrative reform must stem from the realities of Vietnam with Vietnamese characteristics, traditions and identity; and at the same time consult and learn from other countries� knowledge and experiences on organization and operation management for proper application.

3. Advantages and disadvantages for the administrative reform in the coming period

The first 10 years of the 21st century shall be a period in which appear many opportunities and advantages for further accelerating the administrative reform process:

- The practical lessons from the administrative reform over the past 10 years constitute a good basis for new decisions on administrative reform in the coming period;

- The requirements of building and perfecting the socialist-oriented market economy have created a strong impetus for the administrative reform in combination with the economic reform. The process of regional and international integration continues to expand the opportunities for cooperation, exchange and study of experiences on administrative reform between Vietnam and other countries.

However, the administrative reform is confronted with numerous difficulties and challenges:

- The biggest challenge to the requirement of building a clean, strong, effective and efficient State administrative system shall be the lingering weaknesses of the State administrative apparatus, the red tape, corruption, the quality and moral degeneration among a section of public employees;

- The large scope and scale of the administrative reform demands that it be carried out continuously with high determination and together with the study and experiment of new organization and management models. The State administrative agencies must strive to renovate and reform themselves in order to realize the objective of building a democratic administration which is modernized step by step, to fully exercise the people�s mastery and strengthen the legislation and State discipline in the socialist-oriented market economy;

- The administrative reform is placed in the comprehensive renovation of the political system and the reform of the State apparatus in general. Actually, there still exist many important issues of decisive significance for the determination of the contents and mode of carrying out the State apparatus reform, the administrative reform and the building of a law-governed State, which should be further studied for clear conclusions;

- The inertia of the mechanism of centralized and bureaucratic management with State subsidies has still exerted strong impacts on the way of thinking and the working style of a section of public officials and employees, while the administrative reform is carried out under a circumstance where the knowledge and experiences on the State management in the new economic mechanism are inadequate for the requirement of building a democratic and modern State administrative system.

II. THE OBJECTIVES OF THE OVERALL PROGRAM ON THE STATE ADMINISTRATIVE REFORM FOR THE 2001-2010 PERIOD AND VIEWPOINTS
ON REFORM

1. The objectives

The general objectives of the overall program on the State administrative reform for the 2001-2010 period shall be: to build a democratic, clean, strong, professional and modernized administration which operates effectively and efficiently according to the principle of the socialist law-governed State under the leadership of the Party; to build the contingent of qualified and capable public officials and employees meeting the requirements of the cause of national construction and development. By the year 2010, the administrative system shall be basically reformed to suit the requirement of managing the socialist-oriented market economy.

The specific objectives of the program shall be:

1.1. To perfect the system of administrative institutions, mechanisms and policies suitable to the period of national industrialization and modernization, first of all the economic institutions, the organization and operation of the administrative system.

To continue renovating the procedures for elaboration and promulgation of legal documents, overcoming departmentalism in the preparation and compilation of documents; to raise the responsibility of each agency in the process of institutional building; to promote democracy and mobilize the people�s wisdom for a higher quality of legal documents.

1.2. To basically get rid of bureaucratic and cumbersome administrative procedures which have caused inconvenience for enterprises and people; to perfect the new administrative procedures along the direction of transparency, simplicity and convenience for people.

1.3. The agencies within the administrative system shall have their functions, tasks, competence and responsibilities clearly defined; to transfer a number of work and services which must not necessarily be performed by State agencies to enterprises, social organizations and/or non-governmental organizations.

1.4. The Government�s organizational structure is neat and rational according to the principle that ministries manage multi- branches, multi-fields, mainly performing the function of macro-management of the entire society by laws, policies, guiding and inspecting the implementation thereof.

The apparatuses of ministries shall be structurally adjusted on the basis of clearly defining the functions and mode of operations of sections advising on and/or enforcing policies, providing public services.

1.5. By 2005, to basically complete the determination of, and the implementation of new regulation on, the State administrative management decentralization between the central government and localities, among the local administrations at various levels; to clearly define the functions, tasks, powers and organizational structure of the urban and rural administration apparatuses.

Specialized agencies of the provincial and district-level People�s Committees shall be neatly reorganized, performing the State management functions according to their tasks and competence determined in the Law on Organization of the People�s Councils and the People�s Committees (amended). To clearly define the nature, organizational structure and working regime of the commune-level administration.

1.6. By 2010, the contingent of public officials and employees shall be quantitatively and structurally rationalized, being professional and modern. The overwhelming majority of public officials and employees shall have good quality and full capability to perform official duties, with total devotion to the cause of national development and the service of people.

1.7. By 2005, salaries and wages of the public officials and employees shall be basically improved to become the motive force for the performance of official duties and to ensure the life quality of public officials and employees as well as their families.

1.8. By 2005, the financial mechanism shall be renovated to suit the nature of administrative agencies, non-business and public-service organizations.

1.9. The State administration shall be markedly modernized one step. The administrative agencies shall be furnished with relatively modern equipment to satisfy the requirements of timely and smooth State management. The Government�s electronic information system shall be put into operation.

2. The administrative reform is placed within the framework of the Communist Party of Vietnam�s viewpoints and policies on renovation of the political system and the reform of the State apparatus

- The reform and perfection of the State administration shall be closely linked with the Party building and reorganization, the renovation of the contents and mode of the Party�s leadership over the State in general and the administration in particular, aiming to maintain and promote the working class�s nature and build a law-governed State of the people, by the people and for the people, under the Party�s leadership.

- The administration must be organized into an unified and stable system, operating smoothly on the basis of the regime of clear responsibility assignment and division and under strict discipline; the administrative agencies and public officials as well as employees are subject to the close supervision by people. Effective mechanisms and measures shall be applied to prevent undemocratic, free and casual acts, red tape, corruption, harassing or causing troubles for people.

- The administrative reform policies and solutions must be closely linked with economic reform, with the requirements of national development in the process of industrialization, modernization and international economic integration, formulating and perfecting constituents of the socialist-oriented market economy, maintaining order and discipline in economic activities, boosting economic growth and improving the people�s life.

- The administrative reform constitutes a big and complicated task, requiring the overall view and synchronous solutions, closely combining administrative reform with the renovation of legislative activities and judicial reform.

- The administrative reform must be steadily carried out step by step, with central and focal points and the selection of key issues to settle in each specific period.

III. CONTENTS OF THE OVERALL PROGRAM ON THE STATE ADMINISTRATIVE REFORM IN THE 2001-2010 PERIOD

1. The institutional reform

1.1. To build and perfect institutions, first of all the economic institution of the socialist-oriented market economy, the institutions on organization and operation of the State administrative system.

In the next five years, importance shall be attached to a number of following key institutions:

- The institution on capital and monetary market, stock market, real estate market, science and technology market, labor market and service market.

- The institution on organization and operation of the administrative system, first of all the organization and operation of the Government, the ministries, the ministerial-level agencies, the agencies attached to the Government and the People�s Committees at all levels.

- The institution on the relationship between the State and the people, such as: the gathering of people�s opinions before deciding on important undertakings and policies, holding of referenda, handling of illegal acts of State bodies, officials and/or employees in the performance of official duties; the competence and responsibility of administrative agencies and courts in the settlement of people�s complaints and lawsuits.

- The institution on competence to perform the State management over enterprises in general and State enterprises in particular; clearly defining the owners� rights, the State administrative management right and the enterprises� right to business autonomy.

1.2. To renovate the process of elaborating and promulgating legal documents

- To revise and systematize legal documents according to each field, getting rid of law provisions which are no longer valid or overlapping, repeated. To bring into full play the efficacy of the national database on legal documents.

- To raise the capacity of the State administrative agencies at the central and local levels in elaborating and promulgating legal documents. To overcome the situation where laws and ordinances have to wait for decrees and circulars to guide the implementation thereof.

- In order to raise the quality of, and avoid the state of being not objective and departmentalist in, the elaboration of legal documents, it is necessary to study the renovation of the mode and process of law making from the beginning to the end. The Government shall consider and decide or adopt it for submission to the National Assembly.

- To issue regulations ensuring the people�s effective participation in the process of law-making, to organize well the gathering of comments of people from all strata, of people being objects of regulation of the legal documents before the promulgation thereof.

- The legal documents must be published in Cong bao (Official gazette) or placards, published on the mass media immediately after their promulgation so that citizens and organizations have the opportunity to study and implement them.

1.3. To ensure the organization of strict enforcement of legislation by State bodies, officials and employees

- To provide public officials and employees with adequate information on the State�s policies and laws for application and performance of their works according to their responsibilities and competence.

- To effect the Regulation on democracy at the grassroots level, the regime of public information on the State�s and local administrations� undertakings and policies to people; the regime of periodical meeting and talking with enterprises and people by key leading officials of centrally- run branches and localities in order to clear questions raised by the former.

- To bring into full play the effect of the institutions of inspection, control and jurisdiction in order to ensure the effectiveness of the State management and maintain social disciplines. To clearly define the responsibilities of inspecting bodies and the administrative court in settling complaints and lawsuits of people against State agencies, officials and/or employees.

- To expand the provision of legal consultancy for people, poor people, beneficiaries of social policies and ethnic minority people in deep-lying and remote areas. To create conditions for lawyers to efficiently carry out the consulting activities according to law.

1.4. To continue reforming the administrative procedures

- To continue reforming the administrative procedures in order to ensure the legality, effectiveness, transparency and fairness in the settlement of administrative affairs. To get rid of superfluous and overlapping procedures, which can be easily taken advantage of to commit corruption and to trouble people. To expand the reform of administrative procedures in all domains, promptly cancel unnecessary regulations on licensing, inspection, examination, control, quarantine and/or expertise.

To set unified forms of assorted papers to be filled in by citizens or enterprises when they request the settlement of matters relating to production, business and daily life, for application nationwide.

- To promulgate a mechanism of examining public officials and employees who receive and settle requests of people; to severely handle persons who commit acts of harassment, authoritarianism, irresponsibility; to commend persons who splendidly fulfill their assigned tasks.

- To expand the implementation of "one-door" mechanism in setting affairs of individuals and organizations at the State administrative agencies at all levels. The administrative agencies at all levels which have the responsibility to settle affairs of individuals and organizations must publicly and fully post up all procedures, orders, fee rates, working time tables at their working offices.

- To specifically and clearly define the personal responsibility in the performance of official duties. The determination of powers and responsibilities of public officials and employees in the performance of official duties must go in couple with the assessment, commendation and discipline of public officials and/or employees.

2. Organizational reform of the administrative apparatus

2.1. To readjust the functions and tasks of the Government, ministries, ministerial-level agencies, agencies attached to the Government and the local administrations at all levels to suit the requirements of the State management in the new situation

- The Government, the ministries and the ministerial-level agencies shall concentrate their efforts on performing the function of elaborating and promulgating regulation, plans, policies on macro-management for the cause of socio-economic development, direct and inspect the implementation thereof.

- To clearly define the competence and responsibilities of the Government, the Prime Minister, the ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government; the responsibilities of collectives as well as individuals in the administrative agencies of all levels.

- To clearly define the competence and responsibility of the local administrations of all levels to suit the requirement of renovating the division of administrative management responsibility between the central Government and localities, linking such with the development steps of economic reform.

2.2. To step by step adjust works undertaken by the Government, ministries, ministerial-level agencies, agencies attached to the Government and/or local administrations in order to overcome the overlapping and repetition in their functions and tasks. To transfer to social organizations, non-governmental organizations of enterprises the service works which must not necessarily by performed directly by State administrative agencies.

2.3. By 2005, to basically promulgate and apply new regulations on the division of responsibility between the central Government and the localities, between the local administrations at all levels, enhancing the competence and responsibility of the local administrations, enhancing the administrations� contacts with and responsibility before the local population. To combine the division of works with the division of finance, organization and personnel. To clearly define types of work the localities have full power to decide on, types of work the localities must obtain opinions of the central Government before making decisions thereon, and works to be performed under the decisions of the central Government.

2.4. To restructure the organization of the Government

- To build the Government�s organizational structure comprising the ministries and the ministerial-level agencies, which perform the State management function. On the basis of determining and adjusting the functions of the Government, the ministries, the ministerial-level agencies to suit the requirements of the State management over political affairs, economy, culture, social affairs, defense, security and external affairs and over the relations between the ministries, ministerial-level agencies, to determine the number and structure of the ministries and ministerial-level agencies, making the Government�s apparatus neat and less cumbersome with clear responsibilities, scientific working style, effective and efficient operation. To adjust the organization of State management bodies to suit the structure of the Government. To rename a number of ministries, ministerial-level agencies to suit the contents and scope of their respective State management responsibilities.

- To considerably reduce the numbers of agencies attached to the Government and organizations attached to the Prime Minister. Only to maintain a small number of specialized and professional agencies attached to the Government in service of the Government�s work of macro- management.

- To clearly define the nature and mode of operation of consulting organizations set up by the Prime Minister. These organizations shall be set up only when the Government needs to focus its direction on important tasks relating to many branches, many fields. These organizations do not have specialized apparatus and separate payrolls, the standing bodies shall be placed at the most involved ministries or ministerial-level agencies.

- On the basis of correctly defining the State management function and management scope of each ministry, each ministerial-level agency, to separate the ministries� function of State management over the whole branches, domains throughout the country from their direction and administration of non-business public-service organizations under the ministries or ministerial-level agencies.

2.5. To adjust the organizational structure of the apparatuses inside the ministries, the ministerial-level agencies and the agencies attached to the Government

- To separate the ministries� and ministerial-level agencies� function of State management over branches and domains nationwide from their function of administration of public-service organizations under the ministries and ministerial-level agencies; thereby to separate the administrative organizations from the public-service organizations for operating under separate, proper and efficient mechanisms.

- To restructure the apparatuses inside the ministries, the ministerial-level agencies and the agencies attached to the Government, making them crack, neat and rational correspondingly to their State management functions and tasks; to clearly define the nature and forms of attached organizations for law consultancy and enforcement.

2.6. To organizationally reform the local administration apparatus

- To prescribe specific criteria for each type of administrative units in our country so as to achieve their stable operation, putting an end to the state of repeated division, separation as in the recent past.

- To clearly define the functions, tasks, powers and responsibilities of the local administrations on the basis of clear and rational decentralization between the central government and localities and clear distinction between the functions and tasks of the urban administrations with those of the rural administrations; to rationally organize the People�s Council and the People�s Committee at each level, based on the provisions of the Constitution (amended) and the Law on Organization of the People�s Councils and the People�s Committees (amended).

- To rearrange and reorganize specialized bodies of the People�s Committees of all levels along the direction of clear responsibility, definite assignment, neat and simple apparatus, higher professionalism, quick settlement of affairs of individuals and organizations.

2.7. To renovate the managerial mode and working style of the administrative agencies at all levels

- To clearly define the working principles and regulations on coordination in operating the administrative apparatus. To clearly define the duties, competence and responsibilities of the heads of agencies and units for the results of operation of the apparatuses they take charge of.

- To get rid of ceremonial, inefficient and impractical activities, to reduce meetings, to reduce administrative papers. To enhance the responsibility and capability of the administrative agencies in settling affairs of individuals and organizations.

2.8. To step by step modernize the administration

- To deploy the application of information technology to the directing and administering activities of the State administrative system; the application of advanced and modern management instruments and methods in the State administrative agencies.

- To increase investment so that by 2010, the administrative agencies shall be furnished with relatively modern equipment, the commune-level administrative agencies have their working offices and facilities to ensure the tasks of management, and the Government�s wide-area information network shall be established at the communal level.

3. To renovate and improve the quality of the contingent of public officials and employees

3.1. To renovate the management of public officials and employees

To renovate the management of public officials and employees in line with the process of socio-economic development and the administrative reform:

- To conduct the general survey and assessment of the contingent of public officials and employees, aiming to accurately determine the quantity and quality of the entire contingent of public officials and employees, thereby to draw up plannings and plans on training, fostering and management of the contingent of public officials and employees. To build up a system of database on public officials and employees so as to step by step switch to the management of public officials and employees through information systems in the State administrative agencies at the central and local levels;

- To amend, supplement the systems of ranks and grades, the current regulations on professional standards, titles of officials and employees. To finalize the system of title standards suitable to Vietnamese realities and to the professional requirements of each subject, for use as basis for the assessment of the capabilities of public officials and employees;

- To determine the rational structure of public officials and employees in association with the functions and tasks of the State administrative agencies at the central and local levels, which shall serve as basis for the determination of the payroll and the building and development of the contingent of public officials and employees. To renovate the method of payroll determination, which shall serve as basis for deciding the quantity and quality of the works of each administrative agency;

- To finalize the regime of official and employee recruitment, implement the new regulations on assessment, commendation and discipline of public officials and employees in order to raise the quality of official duty activities. The recruitment mechanism must ensure democracy, transparency and accurate selection of fully qualified persons into the State apparatus, paying attention to ensuring appropriate percentages of female officials and employees in various branches and domains;

- To draw up unified regulations on streamlining the payrolls of administrative agencies, public-service units at the central and local levels in order to regularly relieve from the apparatus unqualified and incapable officials and employees as well as persons who break laws and breach the regulations on professional ethics and create conditions to renovate, rejuvenate and raise the capabilities of, the contingent of public officials and employees;

- To renovate and raise the capabilities of agencies and officials that perform the task of managing public officials, employees and duties in accordance with the requirements and tasks of the period of industrialization and modernization;

- To redress the assignment of responsibility for management of public officials and employees. To expand the local administrations� powers and responsibilities for management of public officials and employees. The decentralization of personnel management must go together with the decentralization of tasks and decentralization of finance.

3.2. To reform the regimes of wage, entitlements and preferential treatment

To reform wages and salaries according to the viewpoint that wages and salaries are considered a form of direct investment in human being, investment in socio-economic development, thus contributing to raising the quality of public officials and employees as well as official duty activities. Following are the principal works:

- To raise the minimum wage for public officials and employees, thus enough for them to live on their wages and salaries. To reform the wage scales and tables on the basis of taking into account the nature and characteristics of labor of different kinds of officials and employees; to adjust the wage multiples and coefficients in the wage scales and tables;

- By 2005 at the latest, to basically complete the reform of wage regime for public officials and employees; to fully monetarize wages and salaries, adjust wages and salaries correspondingly to the society�s income growth rate;

- To amend and supplement regulations on the regime of allowances outside wage and salary according to the public employees� ranks, grades, professional grades for public officials and employees working under difficult, dangerous and hazardous conditions;

- To promulgate and implement the regime of bonus for public officials and employees who splendidly fulfill their tasks as well as the regime on other preferential treatment outside wage and salary for public officials and employees.

3.3. To train and foster public officials and employees

- To reevaluate the work of training and fostering public officials and employees; to elaborate and realize plans on training and fostering of officials and employees in the State administrative apparatus according to each type: officials and employees performing the advisory tasks of policy making; officials and employees of administrative and public-service ranks and officials of grassroots administrations.

- To continue renovating the contents of training and fostering programs and modes, attaching importance to raising the administrative knowledge and skills for the contingent of officials and employees according their current responsibilities and tasks. For each type of officials and employees, there shall be appropriate training and fostering programs and contents.

To combine regular training with various forms of non-regular training, domestic training and overseas training. To encourage public officials and employees to conduct self- study with the State�s assistance.

- To reorganize the system of official and employee-training and fostering establishments; to adjust the responsibility assignment among such training establishments. To create conditions for the National Political Institute, the provincial/municipal official-training schools to take initiative in training out personnel in service of the State administrative apparatus at the central and local levels.

3.4. To raise the sense of responsibility and morality of public officials and employees

- To enhance measures to educate public officials and employees in the sense of responsibility, total devotion to work. To set the standards on professional ethics of public officials and employees. To highly respect the profession and honor of public officials and employees.

- To promulgate and strictly observe the Regulation on Official Duties, in combination with the implementation of the Regulation on Democracy in the State administrative agencies, resolutely implementing the principle on publicizing the official duty activities, particularly in affairs directly related to citizens, in financial and budgetary domains; to maintain the disciplines of the apparatus, to raise the officials� and employees� sense of responsibility, organization and discipline.

- To step up the struggle against red tape, corruption in the State apparatus. To observe the regime of auditing and regimes of protecting public property and State budget.

4. To reform the public finance

4.1. To renovate the mechanism of financial and budgetary management decentralization, ensuring the uniformity of the national financial system and the leading role of the central budget; at the same time to promote the initiative, dynamics, creativeness and responsibility of the localities and branches in the financial and budgetary administration.

4.2. To ensure the right of the People�s Councils of all levels to decide on the local budgets, create conditions for the local administrations to take initiative in running the local affairs; the right of the ministries, provincial/municipal Services, Committees, branches to decide on budget allocations to their attached units; the right of units to take initiative in using the budget within the approved estimates in accordance with regimes and policies.

4.3. On the basis of clear distinction between the administrative civil right agencies and the non-business public-service organizations, to renovate in two years, 2001 and 2002, the mechanism of budget allocations to administrative agencies, abolishing the regime of allocating funding according to payrolls, which shall be replaced by way of calculating funding based on the results and quality of operation, directing toward the inspection of the output and spending quality according to the objectives of the administrative agencies, to further simplify the system of spending norms, increasing the initiative rights of budget-using agencies.

4.4. To basically renovate the financial mechanism for the public-service sector

- To build up correct viewpoints on the public services. The State shall have to care for the people�s material and cultural life; but this does not mean that all public-service activities must be undertaken directly by State agencies. To clearly determine in each domain the works to be invested and performed directly by the State, and the works to be transferred to social organizations for performance.

The State shall adopt policies and mechanisms, creating conditions for enterprises, social organizations and people to directly provide services serving production and life under the guidance, support, inspection and control by State administrative agencies.

- To abolish the mechanism of financial allocation by "ask-give" mode, to promulgate mechanisms and policies for implementing the regime of financial autonomy for public-service units with conditions such as universities, hospitals, research institutes, etc., on the basis of defining the tasks to be performed, the levels of financial support from the State budget, and the remaining amounts to be covered by units themselves.

4.5. To experiment for mass application a number of new financial mechanisms, such as:

- Leasing public-service units, leasing land for construction of schools, hospitals; the regimes of social insurance, health insurance for public officials and employees transferred from public units to people-founded establishments;

- Mechanism of encouraging domestic and foreign investors to invest in the development of job-training, university and post-graduate training establishments, medical treatment establishments of high quality in cities, industrial parks; to encourage joint venture and foreign direct investment in these fields;

- To apply the mechanism of package-contracting a number of public services such as urban sanitation, water supply and drainage, park green trees, water in service of agriculture�;

- To apply the mechanism of contracting a number of public services in administrative agencies.

4.6. To renovate the work of auditing of the administrative agencies, public-service units, aiming to raise the responsibility for and efficiency of the use of State budget fundings; to get rid of the state of inspection, examination and auditing of administrative agencies and public-service units by many bodies. To exercise democracy, publicity and transparency on public finance, making public all financial norms.

IV. IMPLEMENTATION ORGANIZATION

1. Major solutions

1.1. To enhance the work of direction and administration

The administrative reform requires the intensive renovation in thinking and perception of the organization of reform implementation. Through deep lessons on the administrative reform in the recent past, it is necessary to enhance the work of direction and deployment of the administrative reform in a resolute manner right at the central level. In order to materialize the overall program on administrative reform in the 2001-2010 period, it needs the political determination of high-ranking leaders of the Party and the State and the heads of the administrative agencies at all levels.

1.2. To carry out the administrative reform synchronously with the renovation of the political system

The overall program on the State administrative reform in the 2001-2010 period must be carried out synchronously with the renovation of the political system. The Party leads the entire operations of the State, in which the executive apparatus is an important instrument for materialization of the Party�s lines and policies. The renovation of the organization and operation of the Party, first of all the renovation of the contents and mode of the Party�s leadership which is of extremely important significance for the administrative reform. The direction of the administrative reform must be closely linked with the direction of the renovation of the legislative activities and judicial reform.

1.3. To carry out the administrative reform synchronously from the central to local levels

To carry out the administrative reform synchronously in all branches and at all levels, focussing first of all on the ministries and centrally-run branches, thereby to create prerequisites to encourage and promote the administrative reform of the local administrations. It is necessary to overcome the passiveness and inertia of the ministries and centrally-run branches in amending institutions which are no longer appropriate, in the division of responsibility for the local administrations.

To clearly define the responsibilities of the heads of the State administrative agencies in organizing the performance of the tasks of administrative reform in the areas under their respective management. The Government, the Prime Minister, the ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People�s Committees of all levels must devote efforts to directing and organizing the organization of performance of the set tasks on administrative reform, considering them the central and permanent tasks in all activities of direction and administration of the State administrative agencies at all levels.

1.4. To adequately arrange financial sources and personnel

In order to materialize the overall program on the State administrative reform for the 2001-2010 period, it is necessary to mobilize and arrange enough capable personnel for the preparation and performance of the set tasks. To raise the research and directing capabilities of the responsible bodies to assist the Government and the People�s Committees at all levels in performing the tasks of administrative reform.

To arrange necessary financial resources from the State budget to the elaboration and realization of already set concrete programs of action.

1.5. To enhance the information and propagation work

The administrative reform is not only the task of the administrative system but also the common requirement of the entire society. Therefore, it is necessary to enhance the work of information propagation and dissemination so that public officials and employees as well as people correctly perceive the reform of the State apparatus and the administrative reform. There should be practical measures to exercise the people�s right to supervise the activities of the administrative apparatus.

2. Different stages of realization of the overall program on the State administrative reform in the 2001-2010 period

The 10-year overall program is divided into two stages:

- Stage 1 (2001-2005): The central tasks include:

+ To clearly define the functions, tasks, competence and responsibilities of the administrative agencies from the Government, the ministries, the ministerial-level agencies, the agencies attached to the Government to the People�s Committees at all levels;

+ To basically complete the decentralization of State management functions and competence between the central and local governments; among the local administrations of all levels;

+ To renovate the mechanism of operation and public finance management for administrative agencies and public-service units;

+ To basically complete the reform of wage regime for public officials and employees in the spirit of the Resolution of the IXth Party Congress.

Major solutions in two years of 2001 and 2002:

+ To continue perfecting the institution on organization of the State apparatus through the amendment of the 1992 Constitution and laws on organization of the State apparatus;

+ The ministries, centrally- run branches and the provincial-level People�s Committees continue revising their functions and tasks, defining their organizational structures and effect the streamline of their payrolls under the Prime Minister�s Decision No.207/1999/QD-TTg of October 25, 1999 and the Government�s Resolution No.16/2000/NQ-CP of October 18, 2000;

+ To adopt policies for satisfactory settlement of redundant people;

+ By the end of 2002, to complete preparing the project on basic reform of wages and salaries of public officials and employees for implementation in 2003;

+ To work out and apply new mechanisms on organization and operation of universities, hospitals, scientific research institutes;

+ To submit to the National Assembly, XIth legislature, in 2002 for ratification, the Government�s organizational structure which has been renovated in the spirit of the administrative reform.

- Stage 2 (2006-2010): On the basis of the results obtained in Stage 1, to continue adjusting, perfecting the Government�s apparatus and the entire State administrative management system and making them suit the requirements of socio-economic development, thus achieving the general objectives of the overall program on the State administrative reform for the 2001-2010 period.

3. Programs of action for realization of the overall program

The overall program on the State administrative reform in the 2001-2010 period shall be realized through the following specific programs of action:

3.1. The program on renovation of the work of elaboration and promulgation and raising the quality of legal documents

- Principal contents:

+ Renovating the process and procedure for preparing and promulgating legal documents, the mode of cooperation and responsibility division among relevant agencies in preparing and promulgating legal documents;

+ Mobilizing the participation of specialists, people and key sections related to the provisions stated in the legal documents in the process of elaborating and approving legal documents;

+ Amending, supplementing the 1996 Law on the Promulgation of Legal Documents and relevant decrees; elaborating and promulgating the Law on the Promulgation of Legal Documents by the Local Administration;

+ Raising the capabilities of agencies and organizations in the elaboration and promulgation of legal documents.

- Implementation duration: 2001-2010, divided into two stages: 2001-2005 and 2006-2010.

- Sponsoring agencies: The Ministry of Justice and the Government�s Office.

3.2. The research program on determination of the roles, functions and organizational structures of agencies within the State administrative system

- The principal contents:

+ Defining the roles and functions of the Government, the ministries, the ministerial-level agencies along the direction of concentrating efforts on effecting the State macro management over the entire society;

+ Revising the functions and tasks of the ministries and centrally-run branches in order to overcome the state of overlapping and repetition; gradually ridding of unnecessary works undertaken by State bodies;

+ Studying and re-determining the organizational structure of the Government, the ministries, the ministerial-level agencies and the agencies attached to the Government;

+ Streamlining the payrolls of agencies attached to the Government which have the function of State management;

+ Determining the rational, neat and light structure of the organizations inside the ministries, the ministerial-level agencies and agencies attached to the Government;

+ Defining the roles and functions of the local administrations of all levels, clearly distinguishing the nature and mode of management of the urban administration from those of the rural administration;

+ Studying and effecting the responsibility division between the central and local levels in all branches and all domains;

+ Determining the proper organizational structures of the administrations of all levels.

- Implementation duration: 2001-2010, divided into two stages: 2001-2005 and 2006-2010.

- The sponsoring bodies: The Government�s Commission for Organization and Personnel and the Government�s Office.

3.3. The program on payroll streamline

This program shall continue to be realized in the 2001-2002 period, based on the Government�s Resolution No.16/2000/NQ-CP of October 18, 2000 on payroll streamline of administrative agencies and public-service units.

The sponsoring body: The Government�s Commission for Organization and Personnel.

3.4. The program on building, and raising the quality of, the contingent of public officials and employees:

- Principal contents:

+ Revaluating, amending the classification, promulgating the criteria of, public officials and employees;

+ Effecting the decentralization of personnel management;

+ Renovating the mode of training, fostering public officials and employees;

+ Determining the appropriate contents and programs of training and fostering public officials and employees, focussing on the administrative officials and local administration officials;

+ Elaborating and organizing the implementation of, plans for training and fostering public officials and employees, including the general plans of the Government, the plans of ministries, branches and local administrations;

+ Reorganizing the system of training and fostering of public officials and employees on the basis of rational responsibility assignment and division;

+ Working out instruments for management of human resources with the support of information technology.

- Implementation duration: 2001-2010, divided into two stages: 2001-2005 and 2006-2010.

- Sponsoring bodies: the Government�s Commission for Organization and Personnel and the National Administration Institute.

3.5. The program on wage reform

- The principal contents:

+ Raising the minimum wage level;

+ Reforming the system of wage scales and tables to suit the subjects being the administrative and public-service officials and employees;

+ Rationalizing ranks, grades;

+ Applying regimes of incentives outside wages and salaries;

+ The regime of awarding public officials and employees who splendidly fulfill their tasks.

- Implementation duration: 2001-2005.

- Sponsoring body: The Government�s Commission for Organization and Personnel.

3.6. The program on renovating the financial management mechanism for administrative agencies and public-service units

- Principal contents:

+ Establishing new criteria on budget elaboration and allocation to the administrative agencies according to their output results and operation quality, the level of fulfillment of their assigned tasks;

+ Applying the regime of package spending assignment to administrative agencies;

+ Working out a proper financial mechanism for organizations which perform the public-service function and non-business units in order to ensure the relative independence and autonomy of these organizations in their activities, gradually reducing expenditures from the State budget and proceeding to the regime of financial self-governance.

- The implementation duration: 2001-2005.

- The sponsoring body: The Finance Ministry.

3.7. The program on modernization of the administration

- Principal contents:

+ Renovating the mode of administering the administrative system;

+ Modernizing public offices, ensuring relatively modern equipment, facilities and working conditions for the administrative agencies;

+ Applying information technology to operations of the administrative agencies and public-service units;

+ Continuing to upgrade and expand the broad information network of the Government to the four levels of administration;

+ The commune-level administration shall have working offices and facilities, which satisfy the requirements of the management tasks.

- Implementation duration: 2001-2010, divided into two stages: 2001-2005 and 2006-2010.

- The sponsoring body: The Government�s Office.

4. The responsibilities to organize the realization of the overall program on the State administrative reform in the 2001-2010 period

4.1. The Prime Minister shall provide the general direction of the implementation of the overall program on the State administrative reform in the 2001-2010 period.

4.2. The Steering Committee for Administrative Reform of the Government shall assist the Prime Minister in directing and guiding the implementation of the overall program on the State administrative reform in the 2001-2010 period.

4.3. The agencies assigned to sponsor the specific programs of action shall have to elaborate the programs and submit them to the Prime Minister for approval, acting as the main bodies for coordination with concerned agencies for implementation.

4.4. The Government�s Commission for Organization and Personnel shall assume the prime responsibility and coordinate with the Ministry of Planning and Investment, the Finance Ministry and the Government�s Office in working out plans for mobilization of resources at home and abroad according to the requirements of realization of the overall program on the State administrative reform in the 2001-2010 period.

4.5. The ministries, the centrally-run branches and the People�s Committees of the provinces and centrally-run cities shall base themselves on this overall program and the direction as well as guidance of the Steering Committee for Administrative Reform of the Government to draw up, and organize the implementation of, their five-year and annual plans on administrative reform and annually report thereon to the Prime Minister and the Steering Committee for Administrative Reform of the Government.

The Government�s Commission for Organization and Personnel and the Government�s Office shall have to monitor the implementation tempo and periodically report on the implementation situation and results to the Government and the Prime Minister.

Prime Minister
PHAN VAN KHAI