PEOPLE’S COMMITTEE OF THAI BINH PROVINCE ______________ No.: 05/CTHD-UBND SOCIALIST REPUBLIC OF VIET NAM Independence – Freedom – Happiness Thai Binh, August 6th, 2012. ACTION PROGRAM Improvement of business environment and competitive capacity of Thai Binh Province In past years, Thai Binh Province overcame much difficulties to strive for improvement of investment environment; construction of policies on investment incentive and enterprise support; improvement of transport infrastructure; construction of technical infrastructure of some industrial zones and promotion of investment mobilization. Therefore, until the end of June 2012, Thai Binh Province absorbed 592 investment projects with total investment capital of 69,167 billion dong, the registration of 135,112 employees. Economic bases gained a quite fast development. Now, there are 3,347 enterprises and 353 branches operating in the province. In spite of impacts of inflation and slackening in the year 2011 and six beginning months of 2012, Thai Binh Province still absorbed 105 investment projects with total investment capital of 9,918 billion dong, in which the big project is Ammonium Nitrate Project of Vinacomin-Mining Chemical Industry Holding Corporation Limited with investment capital of 4,120 billion dong. The effort of Party Committee and people in the province has contributed to the promotion of economic growth rate (in the period 2001-2010, the average economic growth rate is 11.5%/ year) and the conversion of economic structure toward industrialization and modernization. According to the report of the Vietnam Chamber of Commerce and Industry and the Vietnam Competitiveness Initiative Project- United States Agency for International Development (USAID/VNCI) on annual provincial competitiveness index (PCI): in general, Thai Binh Province has achieved the good rank of PCI; however, PCI in 2011 has large decrease of score and rank in comparison with PCI in 2010: the PCI score decreased by 6.35, the ranking decreased from 22 to 55, assessment result decreased from excellent to good; four of nine indicators made marked increase including: entry cost (increase by 32.3% of score); informal charges (increase by 26.6% of score); legal institutions (increase by 24.7% of score); land saving (increase by 6.3% of score). And five indicators: transparency and responsibility; time cost; business support service; labor training with decrease of score causes the decrease of PCI ranking. The main reason for the decrease of competitiveness score and ranking is that the authorities, branches and localities in the province have not fully recognized the leading role in the economic development of businesses; there have been many limitations in the difficulty settlement for enterprises; officials are authoritarian, unenthusiastic and the procedure is too complex, etc. To regulate, overcome limitations and shortcomings of factors affecting PCI and to promote the strong and stable development of businesses, the Provincial People’s Committee promulgates the action program on Improvement of PCI indicators, business environment and competitive capacity of Thai Binh Province in 2012 and next years, as below: A- OBJECTIVE AND REQUIREMENTS 1. Objectives: - To improve awareness of the business role in socio-economic development of authorities, branches, officials, public-servants to help them complete their assigned tasks in accordance with the guideline to serve and create good conditions for businesses to stabilize and develop. - To propose solutions to improve PCI indicators of the Province on basis of the score increase of specific and general indicators, especially increase of decreased indicators in the past year; increase of competitiveness to good ranking in the Red River Delta and average ranking nationwide in order to absorb investment capital and develop the business system in the province and contribute to the economic growth in the period 2011-2015 (13%/year in average). 2. Requirements: To execute action programs according to close and comprehensive directions and management of executive committees, authorities from the province to the localities, to promote comprehensive strength of the political system, businesses and people. To effectively execute tasks and comprehensive measures in accordance with real situation of the province, branches, localities and units. During the implementation period, to direct resolutely, closely and specifically; to propose requirements of changes in each stage, division and procedure; to gain harmonious and comprehensive co-operation among branches, units in relating activities; to consider the target to serve the socio-economic development as the first target. B- CONTENT The main content of the program is to improve the provincial competitiveness index PCI, actually innovation attitude, correct recognition and practical activities of authorities at all levels, branches and localities for the development of businesses in the province in order to affect the provincial social economy; therefore, the authority at all levels, branches must strictly implement following contents: 1. To intensify propaganda to improve awareness of functions, responsibilities and contributions of enterprises in the socialist-oriented market economy. Businesses operate in the market economy with high integration and competitiveness and have to face procedure barriers, market fluctuation; impact of inflation, increase of input expenses and high banking rate. To create favorable conditions for businesses to stabilize and develop, it is necessary to intensify propaganda of guidelines and policies of the Party and the State on economic development, business development and investment absorption and troubled enterprise support. In addition, the authority has to introduce and praise excellent Enterprises of the province so that organizations, units and people understand deeply role and contribution of those Enterprises to the socio-economic development of the province; understand difficulties of the Enterprises in order to have practical activities in creating environment and favorable conditions for enterprises; quickly implement procedures of investment, land, construction, environment, investment capital, etc, for the general development of the business community. 2. To create favorable environment for investment, production and business of enterprises. The Enterprises must have enough following necessary administrative decision before the start-up: Approval of investment guideline, investment certificate, decisions on investment support, certificate of land use right, certificate of business and production conditions (if any), environmental procedure and other legal documents. Therefore, related units, officials should promptly receive, instruct, consult and settle procedures and notice the result to facilitate the market entry of the enterprises. - To continue the strict implementation of the OSS and inter-sector OSS mechanism in the Department of Planning and Investment and OSS mechanism in departments, branches and People’s Committee of districts, city, communes and wards under the regulation; to check and appoint OSS, inter-sector OSS officials with qualification, sense of responsibility and good attitude towards the enterprises and investors. - To streamline investment, land, construction, environment and tax procedures in order to save 40% of implementation time of procedures under the regulation. To continue researching and applying effective administrative procedure processing models which being appropriate to the real situation of the locality and unit. - To amend the Decision No. 19/2009/QD-UBND dated December 11th, 2009 of the Provincial People’s Committee to be more simple, effective and appropriate to functions and tasks; to reregulate some stages to be more appropriate, quicker and save implementation time of enterprises and investors. - To encourage and orient enterprises in focusing on investment in industrial zones and to limit foreign investment in industrial zones, industrial clusters; absorb and select investment projects under the development policy of the province and ensure the stable business environment. To continue making detailed construction planning of some industrial zones, clusters and intensifying construction of infrastructure to absorb investment. - To resolutely settle and recover projects using land ineffectively and for improper purposes, slow progress under the regulation, projects with ecological environmental impacts in order to have land area for other investment projects. - To implement compensation and land clearance support for projects; to definitively settle difficulties with households when allocating land to the enterprises. 3. To intensify information supply and consultancy: To create favorable conditions for enterprises to easily access information relating to business and production of enterprises such as: socio-economic information, planning schedules, policy mechanism, procedure of investment, land, construction, environment, support policy, enterprise incentive, tax, etc; To consult and supply public services for enterprises. - To intensify information for enterprises by the provincial portal, websites of departments, branches, districts and city. The information supply on websites should be fully implemented and regularly updated and it is necessary to have a section of policy questions and answers. To develop the communication network in management activities among the province, some related departments, branches, especially in units implement inter-agency to shorten settlement and result time. - To promote enterprise consultancy and support activities. To develop and improve service quality of state business units and non-state business units. The Center for Investment Promotion and Consultancy directly under Department of Planning and Investment promotes advertisements, introduction, promotion and mobilization of investment in the province in effective and professional manner; consults organizations, individuals learning about investment opportunities; consults about establishment and adjustment of the enterprise registration; consults about the implementation of investment incentive and support. Trade promotions units, tourism promotion units, center for job support and introduction, investment and construction consultancy units, center for infrastructure management of industrial zones, industrial clusters, etc have to intensify activities and improve quality in accordance with their functions and missions and consult about services for the development of enterprises. To encourage the development of non state business units to establish provincial service system to support enterprises in the province more fully and effectively and to improve quality of services. Then, to develop senior services in accordance with the development of the market economy such as (consultancy about construction of business strategy, product strategy, application of science and technology, establishment, management and advertisement of trade mark, application of quality management system with international standards, etc). - To intensify the inspection, supervision and assessment of investment activities; to settle, regulate units and individuals violating the regulation on service supply or supplying poor-quality products. 4. To strictly execute policies on enterprise support. To strictly execute the support policy of the State and the policy on investment incentives and support of the Province. - To execute the Decision No. 09/2012/QD-UBND dated May 10th, 2012 of the provincial people’s committee on policies on encourage of investment, in which the investment incentive and support shall be implemented under the mechanism “OSS” in the Department of planning and investment in the third quarter of 2012. - To continue constructing some important traffic works, infrastructure of industrial zones, industrial clusters, fresh water works, sewage and waste treatment works. - To strictly execute policies on human resources training support; care about necessary material conditions of employees (Encouraging construction of house and necessary service facilities for employee in industrial zones and industrial clusters). 5. To create legal framework for the enterprise’s activities: To complete the regulation on settlement procedure of land and benefits disputes for employees, the regulation on foreign employee policy, economic disputes in justice units, etc. - To improve role of business associations, social organizations in consultancy and discussion of the provincial policies. To create favorable conditions for enterprises to contribute their opinions to regulations, policies of the State; to intensify direct dialogue among enterprises, the government, people; to organize direct dialogue on the provincial portal. - To make the inter-branch inspection schedules focusing on subjects with violations and limiting the inspection at location of all enterprises; shortening time of inspections. - To continue improving quality and effect when settling complaints, denouncement, disputes of enterprises and justice units. - To co-operate with central agencies to train qualified lawyers to effectively support and consult enterprises in commercial disputes and causes. 6. To improve the transparency, openness and democracy. To strengthen the transparency and openness of guidelines, policies, procedures under the regulation; to post price of service, charges, fee, taxes at the OSS, inter-sector OSS division; to make box of suggestion letters, the entitlement regulation, etc in order to strengthen sense of responsibility and quality of officials, public servant when meeting people. - To check to simplify administrative procedure, abrogate unnecessary licenses and certificate of business conditions. To focus on issues relating to tax, finance; establishment of enterprises and business support services. After checking administrative procedure, the result shall be posted in public and regularly updated so that people, enterprises know and a division shall take responsible for instructing produces to shorten learning and document completion time of organizations and individuals. - To inspect under the regulation and reach clear conclusion without affecting business and production activities of enterprises. 7. To give prominence to responsibility of the enterprise for co-operation with the government and being friendly with people on the province. - The enterprises must strictly implement the regulation on safe production conditions, ensure of work, benefits and life for employees, environmental protection; strictly implement tax obligations, care about other social activities so that authorities at all levels and people understand the enterprises more. - The association of enterprises shall promote role, functions and missions of the provincial association of enterprises; continue showing that it is the officially representative organization and solidary group of enterprises to tell expectations, legal benefits of provincial enterprises; strengthen contacts and exchanges to promptly reflect problems, difficulties in the development of enterprises; be a bridge of the authority and enterprises; contribute opinions to planning, schedules and policies relating to the development of the province. 8. To intensify the comprehensive co-operation among the authority at all levels, branches in management and support of the enterprise’s development. Departments, branches, People’s Committee of districts, city periodically meet and receive opinions of enterprises in assigned domains. The provincial People’s Committee meets and discusses with enterprises regularly; direct departments, branches and localities to resolutely settle urgent matters, especially matters relating to land, investment, construction, environment, enterprise support regulation, etc in order to create the consensus in the economic development and ensure the social order and security. The implementation of above measures is to strengthen support activities for enterprises, simultaneously, this is also a comprehensive measure to improve and increase 9 indicators in the Provincial PCI specifically and effectively in the period 2012-2015. C. IMPLEMENTATION 1. Directors of departments, heads of branches, boards; Chairman of People’s Chairman of districts, city; Chairman of the provincial association of enterprises must grasp thoroughly and disseminate to all officials, public servants, enterprises and people in the province; intensify dissemination of program’s content on media mass (Newspaper, Radio and Television) to improve awareness and create the consensus form the provincial units to local units and people. 2. The authority at all levels, branches, People’s Committee of districts, city, the Association of enterprises actively implement contents and improve competitiveness capacity and business environment of Thai Binh Province in the action program to make real and obvious changes in 2012 and next years. Departments of Planning and Investment, Finance, Natural Resources and Environment, Industry and Trade, Construction, Management board of industrial zones, the provincial department of taxation, branch of the State Bank of Vietnam, People’s Committee of districts, city take responsibility for concretizing the action program of the provincial with contents and forms in accordance with functions, missions of departments, units and submitting it to the provincial People’s Committee before August 15th, 2012 through Department of Planning and Investment. 3. Department of Planning and Investment, a standing unit, takes responsibility for advising to establish the provincial management board; collecting periodically, submitting annual report on result to the provincial people’s committee, summarizing and reporting proposals of departments, branches, people’s committee of districts, city to the management board and the provincial people’s committee to consider and direct. 4. The authority is responsible for holding annual preliminary and summary conferences on action programs of PCI improvement to assess, learn from experience and implement next action programs appropriately and effectively. 5. During the implementation period of this action program; agencies and units actively report and request the provincial people’s committee to consider and decide arising difficulties which are beyond their competence or some contents which should be amended, added./. Recipient: - Government Office; - Ministry of Planning and Investment; - Vietnam Chamber of Commerce and Industry; - Standing Provincial Committee of the Party, Provincial Standing People’s Council; - Chairman, Vice-Chairman of the Provincial People’s Committee; - Departments, boards, branches directly under the province; - People’s Committee of districts, city; - Manager of the Provincial People’s Committee’s Office; - Archives: VT, TM, CN, TH ON BEHALF OF PROVINCIAL PEOPLE’S COMMITTEE CHAIRMAN (Signed and sealed) Pham Van Sinh