RESOLUTION

THE GOVERNMENT’S REGULAR MEETING – AUGUST 2014

GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Government’s Decree 08/2012/ND-CP , dated February 16, 2012 promulgating the Working regulation of the Government;

Based on the discussions among the Cabinet members and the conclusion of the Prime Minister at the Government’s regular meeting held on August 27 and 28, 2014,

RESOLVES:

1. Regarding socio-economic performance in August and the first eight months of 2014; the implementation of the Government’s Resolution No. 01/NQ-CP , dated January 2, 2014 on key tasks and solutions guiding the realization of the socio- economic development plan and State budget estimate in 2014;

The Government unanimously agreed that: The socio-economic performance in August and the first eight months continued to progress positively in all fields and areas. The economic growth rate in the third quarter was higher than the previous one. The inflation was controlled at low rate. The interest rate intended to decrease. The foreign exchange and exchange rate stabilized. The industrial production, especially the processing and manufacturing industries developed. The agricultural production stabilized. The service sector achieved reasonable growth. Exports maintained a strong growth momentum, resulting in a trade surplus. Budget revenue was higher than forecast. Disbursed FDI and ODA volume have been promoted. Social security and welfare policies were implemented well. National defense, political security and social order were maintained. Traffic safety was strengthened. The administrative reform and the settlement of denouncements and complaints were put in focus. Diplomatic activities reaped fruits.

However, businesses’ production still faced difficulties. Aggregate demand increased slowly, credit growth was low, and management in dealing with bad debts reamained poor. The economic restructuring, especially in businesses and the commercial banking system slowed. A proportion of population, especially poor and ethnic minority households, faced a lot of challenges in employment, and livelihood. Epidemic diseases in humans contained risks.

To fulfill the socio-economic development plan at its fullest, the Government asked ministries, agencies and localities to consistently pursue the socio-economic targets and tasks set at the beginning of the year; drastically conduct measures and tasks stipulated in Resolution 01/NQ-CP dated January 2, 2014 and the regular Government meetings’ Resolutions, launch overall goals and set criteria, overcome difficulties for production in the three economic sectors with realistic and specific measures to achieve the economic growth rate of 5.8% in 2014, speed up the economic restructuring in each industry and area, focusing on key areas; accelerate the implementation of the reform of administrative procedures in terms of tax, customs, construction, land and electricity access to improve the investment environment and increase the national competitiveness and focus on these following missions:

- The State Bank of Viet Nam shall monitor to promote the credit growth rate to the set goal; regulate flexibly monetary tools to adjust the market interest rate reasonably; deal with bad debts; actively analyze and evaluates difficulties and obstacles, mechanisms and policies to handle bad debts and proposes tackling measures and report them to the Prime Minister; establish and report to the Prime Minister before September 30, 2014 the plan to deal with bad debts through the Viet Nam Asset Management Company based on the market mechanism withouth using money from the State budget; research and submit to the Government to amend Decree No. 53/2013/ND-CP dated May 18, 2013 on the establishment, organization and operation of the Asset Management Company for Vietnamese credit institutions with the aim of enhancing the company’s capacity in dealing with bad debts; restructur commercial banks based on the Credit organization system restructuring plan in the 2011-2015 phase, which was issued in accordance with the PM's Decision No. 254/QD-TTg dated March 1, 2014.

- The Ministry of Planning and Investment shall implement effectively measures to mobilize all resources and encourages social investment to contribute to increasing the demand for the economy; cooperate with other related ministries and agencies to establish and issue guidance documents and realize the Law on Public Investment; host and coordinate with other relevant ministries, agencies and localities to review and evaluate the planning establishment and management works, creating foundation for the building and completion of mechanisms and policies on planning, tackle wastes in the making of planning schemes as well as contradictions in different planning schemes.

- The Ministry of Finance shall concentrate on directing functional agencies to launch effectively State finance and budget missions in the last months of 2014; enhance the State budget spending management, actively control spending missions, guarantee budget balance at all levels, practicing thrift and anti-waste; host and cooperate with the Ministry of Industry and Trade to amend related regulations at Article 5 of Decree No. 87/2010/ND-CP dated August 13, 2010 detailing a number of articles of the Law on Import Duty and Export Duty and Decision No. 254/2006/QD-TTg dated November 7, 2006 and Decision No. 139/2009/QD-TTg dated December 23, 2009 to halt launching the tax exemption policy and other tariffs on goods traded by border residents.

- The Ministry of Industry and Trade shall continue to realize measures to boost industrial production, enhance the production capacity and labor productivity, striving to make production surpass the plans in potential areas; actively launch measures to develop the market to increase the demands in the nation; focus on supervising and dealing with trans-border smuggling activities, transportation and trading of fake, low-quality goods and trade frauds.

- The Ministry of Agriculture and Rural Development shall implement measures to restructure the agriculture sector, encourage businesses to invest in agriculture and rural areas; closely follow and design plans to prevent diseases for poultry and cattle; realize development policies for aqualculture; draft and submit to the Government to issue a Decree on forest protection and development policy and mechanism that are incorporated with the policy on poverty reduction and support for the ethnic minorities.

- The Ministry of Health shall strengthen the preventive healthcare and quarantine works, especially at airports, borderline and border gates; make plans to prevent dangerous diseases; prepare essential medicines and equipment for the fight against diseases; enhance supervision of the quality of food hygiene and safety; check and implement the mechanism to put medicine prices in bidding in order to reduce the prices further; boost the implementation of the plan to reduce overloading in hospitals; improve the quality of treatment for people; guarantee the implementation of the roadmap on health insurance for all on track.

- The Ministry of Labor, Invalids and Social Affairs shall host and cooperate with other relevant ministries agencies and localities to launch effectively social security and welfare policies; actively realize job creation, labor export and sustainable poverty reduction programs, especially in ethnic minority-inhabited areas; host and coordinate with other ministries and provinces and the municipal People’s Committees to examine and rectify the recruitment and employment of laborers of economic groups and corporations.

- The Ministry of Home Affairs shall cooperate with other ministries, agencies and localities to accelerate the administrative reform; check the function, tasks and organization of administrative agencies and public enterprises’ personnel and systems from the central to locality based on the Conclusion of the 7th session of the 11th Central Committee of the Communist Party of Viet Nam; launch effectively the project to accelerate civil servant reform; quickly establish and complete title criteria for civil servants and profession criteria for State officials to issue in 2014; identify the positions and restructure for civil servants at agencies; further improve the quality of recruitment-serving tests; quickly complete and submits to the Prime Minister to sign a Decision to replace Decision No. 93/2007/QD-TTg dated June 22, 2007 promulgating the Regulation on one-stop shop and interdisciplinary one-stop shop mechanisms in local state administrative agencies; cooperate with the Ministry of Justice and other relevant ministries, agencies and localities to check and simplify administrative procedures in all fields to create the most favorable conditions for people and businesses.

- The Government Inspectorate shall coordinate with other ministries, agencies and localities and organizations to implement Directive No. 35-CT/TW dated May 26, 2014 on enhancing the Party’s leadership on citizen reception and dealing with denouncements; realize the Law on Citizen Reception and Decree No.64/2014/ND-CP dated June 26, 2014; cooperate with other central agencies to establish the Citizen Reception Regulations at the Central Citizen Reception Committee; coordinate with the Supreme People’s Court to create conditions for people to take legal proceedings against cases that receive decisions for settlement; cooperate with the Viet Nam Fatherland Front to set up a coordinative program to supervise the implementation of regulations on dealing with denouncements lodged at administrative agencies, especially in localities. Ministers and heads of the agencies shall spend time to receive citizens as regulated.

- The Ministries of National Defense and Public Security and other localities shall actively update the situations and launch plans to ensure the national sovereignty and maintain political security and social order.

- The Ministry of Information and Communications shall direct press agencies to enhance popularization works to disseminate the Party and State’s guidances and policies. All the agencies shall proactively and promptly provide sufficient information about State mechanisms, policies and laws for press agencies to create consensus among people.

- Ministries, agencies and localities shall focus on completing the institution, especially realizing the Constitution 2013, the Government's Resolution No. 19/NQ- CP dated March 18, 2014 on primary tasks and solutions for improving the business environment and enhancing national competitiveness; continue to direct the implementation of the law and ordinance making program in 2014 and promptly issue guidance documents for laws and ordinances that they have yet finished.

2. Regarding the Report on the socio-economic performances in 2014 and the socio- economic development plan for 2015

Based on the achievements in August and over the past eight months, estimates for the nine-month implementation in 2014, forecasts for the realization of the socio- economic development plan in 2014 with regard to the world and national situations, the Government agreed that the overall missions for 2015 include maintaining macro- economic stability, accelerating the implementation of strategic breakthroughs, economic restructuring, enhancing the effectiveness and capacity of national competitiveness and promoting higher growth rate in accordance with the renovation of growth model; implementing social security and welfare goals and improving people’s living conditions, expanding and increasing the effectiveness of diplomacy and international integration; enhancing national defense, security and guaranteeing the national sovereignty, political security and social order; accelerating the administrative reform and anti-corruption and anti-waste.

Accordingly, key goals defined for 2015 include a GDP growth rate of 6.2%, a CPI growth rate of around 5%, a budget revenue rise of 10%, a budget overspending of around 5%, a reduction of poor households by 1,7-2% generally and 4% in poor districts.

The Ministry of Planning and Investment shall collect comments of the Cabinet members, complete the Report on socio-economic conditions in 2014, draft a socio- economic development plan for 2015, and report the Politburo for gathering ideas of the Central Committee of the Communist Party of Viet Nam.

Basing on the ideas of the Central Committee of the Communist Party of Viet Nam, the Ministry of Planning and Investment shall finalize these documents and report to the Prime Minister before submitting to the 13th National Assembly, 8th session.

3. Regarding the Report on assessment of the allocation of State budget in 2014 and State budget estimates for 2015

The Ministry of Finance shall collect comments from the Cabinet members, complete the Report on assessment of the allocation of the State budget in 2014 and State budget estimates for 2015, and report to the Prime Minister before submitting to the Politburo to collect ideas from the Central Committee of the Communist Party of Viet Nam. Basing on the ideas of the Central Committee of the Communist Party of Viet Nam, the Ministr of Finance shall finalize the Report and report to the Prime Minister before submitting the 13th National Assembly, 8th session.

4. Regarding the Project on restructuring international bond debts

The Government agrees to issue international bonds of the Vietnamese Government to the international capital market to exchange for the Vietnamese Government bonds issued in 2005 and 2010.

The Ministry of Finance shall coordinate with the Office of the Government to complete the draft Resolution on the issue of international bonds of the Vietnamese Government and submit to the Prime Minister for organizing the implementation.

5. Regarding the application of information technology by the State competent authorities in 2013

The application of information technology by ministries, ministerial-level bodies, Governmental authorities, provinces and Centrally-run cities has been made with much efforts and obtained satisfactory results, contributing to the instruction and management of the State management authorities and serving the people and entrepreneurs. However, the proportion of State competent authorities that have applied the information technology at an average level still remained high, failing to ensure the uniformity and satisfy modernization requirements..

To further speed up the application of information technology, enhance the efficiency and effectiveness of the instruction and management by the State management authorities to make it easy for the people and entrepreneurs, basing on the IT

application rankings made for the State competent authorities in 2013, the Ministry of Information and Communications shall continually review and complete the process of realization as well as evaluation criteria as the basis for the annual assessment of the results of IT application of each agency.

The Ministers, Heads of ministerial-level bodies, Governmental authorities and Chairmen of the People’s Committee of provinces and centrally-run cities shall continue to instruct and speed up the IT application, contributing to the enhancement of productivity, quality and performance of the management.

6. Regarding preferential treatments for special scientific and technological research facilities

The Government agrees with the establishment of the Viet Nam - RoK Institute of Science and Technology (V-KIST) with specific regimes and policies in order to contribute to speeding up the scientific and technological development and the sustainable development of some national key industrial sectors.

The Ministry of Science and Technology shall urgently complete the Project to submit for approval in accordance with the current regulations; in which, it needs to determine clearly objectives, functions, tasks, specific regimes and policies, and jurisdiction on specific regimes and policies applied to the Institute. First of all, it is required to apply regimes and policies under the jurisdiction of the Government and Prime Minister; for cases that fall out of the jurisdiction, the Ministry of Science and Technology shall coordinate with the Ministry of Justice and related agencies to study and report to the Government to consider and decide on the submission of suitable documents to the National Assembly.

7. Regarding the pilot mechanism of authorizing autonomy for public high-education institutions

The Government grants the expanded autonomy in terms of training, organizational structure and finance for public high educational institutions, thus creating a motivation for high-education institutions in improving education and training quality to achieve sustainable development to contribute to meeting demand for human resources in service of the country's development in the context of spurring the market economy and boosting international integration.

The Ministry of Education and Training shall take prime responsibility and coordinate with the Ministry of Finance, the Office of the Government and related agencies to collect comments of the Cabinet members, complete the draft Resolution on piloting renovation of operating mechanism for public high-education institutions which would be sent to the Cabinet members for feedback before submitting to the Prime Minister for promulgation in September 2014.

8. Regarding Project on renovating the general education programs and textbooks

The Ministry of Education and Training shall collect opinions from the Cabinet members and the National Committee for educational and training renovation, in order to complete the Project on renovating the programs and textbooks. The Prime Minister authorizes the Minister of Education and Training submitting the Project to the National Assembly.

9. Regarding measures to clear difficulties and obstacles steeming from the State investment credit for the phase II of the Project on production extension of Thai Nguyen Iron and Steel Joint Stock Company.

The Government approves measures to address difficulties and obstacles facing phase II of the Project on production extension of Thai Nguyen Iron and Steel Joint Stock Company as stated in Report No. 88/BC-BCT dated August 26, 2014 by the Ministry of Industry and Trade; authorizes the Prime Minister to consider and handle problems arising during the implementation of these measures.

The Ministry of Industry and Trade, Members Council and General Director of Viet Nam Steel Corporation, Management Board and General Director of Thai Nguyen Iron and Steel Joint Stock Company will be responsible before the law and the Prime Minister for the schedule and performance of the project.

10. Regarding the draft Law on organization of the Government (amended)

The Ministry of Home Affairs shall take prime responsibility and coordinate with the Ministry of Justice and the office of the Government to receive comments of the Cabinet members, complete the draft Law on organization of the Government (amended) and report it to the Prime Minister before presenting to the National Assembly.

11. Regarding Law on local government organization

The Ministry of Home Affairs shall take prime responsibility and coordinate with the Ministry of Justice, and the Office of the Government to collect comments of the Cabinet members, complete the project of Law on local government organization and reports it to the Prime Minister before presenting to the National Assembly.

12. Regarding adjustment and completion of the Law on amending, and supplementing some articles of the Law on vocational training

The Government agreed to submit to National Assembly to:

- Change the name of the draft Law on amending and supplementing some articles to the Law on vocational training into the draft Law on vocational education;

- Vocational education levels include: elementary, intermediate, and college levels. Consistency in input and output of each educational level must be ensured.

The Ministry of Labor, Invalids and Social Affairs shall take prime responsibility, collects opinions from the cabinet members and the National Committee for education and training reform to correct and complete the law project. The Minister of Labor, Invalids and Social Affairs, as authorized by the Prime Minister and on behalf of the Government shall make presentation to the National Assembly.

The Ministry of Labor – Invalids and Social Affairs, the Ministry of Education and Training shall be assigned to provide guidance on merging 03 district-level centers (Vocational training center, Continuing education center, General technical and vocational center) into 01 center which is functioned to provide vocational training, continuing education and vocational guidance, and the district-level People’s Committee is assigned to manage such center.