GOVERNMENT ------No: 12/2006/NQ-CP SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom – Happiness --------Hanoi, June 05, 2006 RESOLUTION THE GOVERNMENT’S REGULAR MEETING - MAY 2006 On May 31, 2006, the Government held its regular meeting to discuss and decide some issues as follows. 1. The Head of the Central Committee for Flood and Storm Control, the Deputy Chair of the National Committee for Search and Rescue, the Minister of Fisheries and the Minister of Resources and Environment respectively reported on their performance in forecasting and preventing Typhoon No. 1, dealing with its impacts, seeking and rescuing the victims. Typhoon No. 1 was said to be severe with complicated developments. Though not directly hitting Vietnam, it still caused serious human and material damage to the people in the provinces of Quảng Nam, Quảng Ngãi, Bình Định and Đà Nẵng City. All levels and branches and the whole people have tried their best to seek, rescue and support the victims, helping them to relieve the sufferings and recover to normal life. The Government made a profound analysis of the situation, drawing lessons and experience from the losses caused by the typhoon, especially in the forecast, search and rescue work, the management over offshore fishing and fishermen in the sea. The Government also made decisions to tackle the aftermath, stabilize the life and restore production in the coastal provinces of Central Vietnam and put forth long-term solutions to ensure fishermen’s safety. The Government required all the relevant ministries and agencies and the People’s Committees of Quảng Nam, Quảng Ngãi, Bình Định and Đà Nẵng City to take measures to handle the typhoon’s impacts in accordance with Decision 794/QĐ-TTg dated on May 31, 2006 by the Prime Minister. 2. The Minister of Planning and Investment presented the Draft Decree that guides the enforcement of the Investment Law and the Draft Decree on Build–Operate–Transfer (BOT), Build–Transfer–Operate (BTO) and Build–Transfer (BT) investment projects. a) The Investment Law was ratified by the 11th National Assembly at its 8th Session on November 29, 2005, and will come into effect from July 1, 2006. Therefore, the Government should quickly issue documents to guide its enforcement, concretize regulations in the Law to ensure that the investors are aware of the investment procedure, their legal rights, duties and benefits; that they are encouraged and given preferential treatment; and that investment procedures are made clear and publicized. The Resolution guiding the enforcement of the Investment Law needs to ensure it not conflicting with other Resolutions guiding the Investment Law and Enterprise Law; meet the requirements of international economic integration, institutionalize international commitments relating to investment activities; show the determination of the administrative reform; and decentralize management over investment and enterprises. For specific investment activities, there should have particular regulations (including investment in industrial zones, export processing zones, high-tech zones) which not only harmonize with the common investment policy but also meet commitments in international treaties. The Government assigns the Ministry of Planning and Investment to cooperate as the main implementer with the Government Office, the Ministry of Justice and related agencies to acquire the recommendations from the meeting and complete the Draft Decree on the suggestions of the Government members and promptly submit it to the Government for consideration and decision. b) In the last years, projects of Build–Operate–Transfer (BOT), Build–Transfer–Operate (BTO) and Build–Transfer (BT) forms have created good conditions to put together non-state budget funding for investment in infrastructure projects. However, these projects’ implementation has shown that the current Decree has not kept up with the development of legislation on investment and trade in Vietnam, especially the newly issued Investment Law and Enterprise Law. Therefore, it’s urgent to issue a new Decree on BOT, BTO and BT contracts applicable to both domestic and foreign investment, which will create the legal framework and more advantage to attract and use private-sector investment for infrastructure projects and to match international practices; complete the incentive and safety mechanism for investors who are carrying out projects; continue to improve the investment procedures and remove troubles facing the projects of these investment forms. The Government assigns the Ministry of Planning and Investment to cooperate as the main implementer with the Government Office, the Ministry of Justice and related agencies to acquire input from this meeting and complete the Draft Decree based on the suggestions of the Government members and promptly submit it to the Government for consideration and decision. 3. The Government heard the Minister of Public Security reporting the Draft Decree on immigration of Vietnamese people; the Minister, Chairman of the Government Office summarizing Government members’ suggestions on this Draft Decree. The latest change in the management over immigration was included in Government Decree 05/2000/NĐ-CP on 3 March 2000. However, the Decree has pointed out constraints such as the time-consuming immigration procedure, a long time of processing passport applications, necessitating the improved issue of passports for overseas Vietnamese. It’s urgent to promulgate another Decree to replace Decree 05/2000/NĐ-CP with a view to making it easier for the issue of passports, particularly official passports for State officials and civil servants; standardize documents targeting overseas Vietnamese; unify State management over people’s immigration, correct unreasonable points in immigration procedure to meet the requirements of global economic integration. The Government assigns the Ministry of Public Security to cooperate as the main implementer with the Government Office, the Ministry of Foreign Affairs and related agencies to acquire the input from this meeting and complete the Draft Decree, and submit it to the Government for consideration and decision 4. The Government considered the performance report of the National Program of Combined Action on prevention and cure for bird flu and human flu in the period of 2006-2010 (OPI) represented by the Ministry of Agriculture and Rural Development. The National Program of Combined Action on prevention and cure for bird flu and human flu in the period of 2006-2010 was prepared by the Ministry of Agriculture and Rural Development and the Ministry of Health in cooperation with relevant agencies with the help of international donors. The Government has passed this program as a foundation to solicit support from international donors to the fight against the epidemic and to make annual budget grants for the program. The Government assigned the Ministry of Agriculture and Rural Development and Ministry of Health to cooperate with the relevant ministries and branches to use international help and complete the Program and carry it out from the Central to the grassroots levels. The Ministry of Planning and Investment and the Ministry of Finance will base on the specific projects to use State budget and international support to finance the Program. 5. The Government also studied the Report on socio-economic situation, production, trade, service and investment in May and the first five months of the year 2006; the Report on the domestic market and export in May and the first five months of the year 2006 presented by the Ministry of Trade. The socio-economic situation in May and the first five months of the year 2006 remained stable; industrial production kept growing; despite diseases and epidemic, agricultural production remained stable, bird flu stayed under control; services kept expanding; export achieved moderate growth; investment in society was significant; foreign investment kept on rising; Tax payment into State budget kept on track. Progress was made in social activities. The setbacks were that although industrial production increased, few key industrial commodities obtained a high growth rate; epidemics and weather conditions during the past five months such as foot-and-mouth disease, prolonged drought, flood and whirlwinds influenced agricultural production, Typhoon No. 1 caused serious material and human damage to fishermen in the central region; the domestic market saw price inflations; the increased petroleum and gold prices led to rising prices of other commodities which caused difficulties to production and people’s life; health care was problematic; traffic safety and order experienced complicated developments. To strictly observe Resolution 01/2006/NQ-CP meant to guide the implementation of the socioeconomic and State budget program of the year 2006, enterprises should focus on promoting production and trade, decreasing the cost of production, raising the competitiveness of their products; closely watching market developments and price forecast for effective responses, boosting export. Efforts should be made to prevent and tackle foot-and-mouth disease; raise and make effective use of investment capital, regularly inspect enforcement in traffic and irrigational systems, reorganize the investment and construction management; bring the life of victims of the Typhoon No. 1 to normal, work out plans to control the Act of God effectively; solve the housing problem for workers in industrial zones; fight against corruption, practice thrift, fight against misspending; ensure social safety and order as well as reduce traffic accidents. ON BEHALF OF THE GOVERNMENT PRIME MINISTER Phan Van Khai