Right after Vietnam officially became a WTO member, the Government promulgated Resolution No. 16 with an action plan specifying duties of state administrative agencies at central and local levels and enterprises of all economic sectors to take advantage of opportunities, overcome challenges, and promptly and steadily bring Vietnam into a new period of development.
Over the past year, the action plan has been successfully implemented, especially in legislative work, according to a Ministry of Trade and Industry report.
In 2007, the Government submitted to the National Assembly 10 laws for ratification, contributing to the improvement of the market economy in Vietnam. The Government has also collected public opinion and opinions of National Assembly deputies in order to further improve many other draft laws, such as the Law on Compulsory Purchase and Acquisition of Property, the Law on Atomic Energy, the Law on Promulgation of Legal Documents (revised), and the Law on Management and Use of State Property.
Ministries and agencies also drafted and submitted to the Government and the Prime Minister for promulgation or consideration many documents guiding the implementation of laws already passed in 2006.
The Ministry of Justice established an interdisciplinary review group with the task of reviewing WTO commitments to be implemented immediately and applied directly. The group has drafted and submitted to the Prime Minister a preliminary report on the review of the implementation of Resolution No. 16. Due to the complexity of the task, most line ministries and agencies have planned to continue the review in 2008. The group will continue to collaborate with ministries, agencies and localities in completing the review and will submit to the Government a report in the first half of 2008.
Labor market
In 2007, the Ministry of Labor, War Invalids and Social Affairs focused on the elaboration of documents guiding the implementation of the Law on Social Insurance, the Law on Vocational Training, the Law on Guest Workers Working Under Contracts, and amendments to the Labor Code (labor dispute and strike sections). Many master plans concerning urgent and pressing issues as well as long-term issues on sustainable development have been elaborated in order to serve the tasks of policy-making and lawmaking as well as develop strategic, long-term forecasts, especially on social issues arising after Vietnam’s WTO accession.
The Ministry has promulgated many decrees with regard to the labor market, including decrees on policies toward redundant workers due to the restructuring of state companies; certain types of enterprises in which strikes are prohibited and the settlement of collective interests in such enterprises; handling administrative violations in social insurance matters; and social insurance for the unemployed pursuant to the Law on Social Insurance, all ensuring favorable conditions for the healthy development of the labor market in new situation.
Real estate market
In 2007, the Law on Real Estate Transactions was promulgated, creating a legal framework for the development and management of real estate. Many policies were implemented to better manage land resources and make land management regulations more transparent in order to facilitate the development of the real estate market.
The Ministry of Natural Resources and Environment submitted to the Government many legal documents in order to create favorable conditions for conversion of land use rights into a commodity in a more simple and convenient way such as decrees on the grant of land use right certificates, land acquisition and procedures and formalities of compensation, support and resettlement upon land recovery by the State and land dispute settlement. The Government submitted to the Standing Committee of National Assembly Resolution No. 1126/2007/NQ-UBTVQH dated June 21, 2007, on limits of conversion of agricultural land. The Prime Minister issued a directive on the inventory of current land funds of organizations allocated by the Government. In addition, the Ministry also collaborated with the Ministry of Finance and Ministry of Construction in drafting a circular providing for the “one-stop shop” mechanism in the grant of certificates of land use rights and house ownership rights and organized online question-and-answer sessions between the Minister and the public with regard to land and other related issues.
The Ministry of Construction submitted to the Government for promulgation Resolution No. 3l/2007/NQ-CP dated July 3, 2007, on certain solutions to renovate and reconstruct old, downgraded and damaged apartment buildings, and Resolution No. 48/2007/NQ-CP dated August 30, 2007, on adjusting certain contents in the policies of selling houses under state ownership to tenants. The Ministry improved and submitted to the Government for promulgation Decree No. 99/2007/ND-CP dated June 31, 2007, on managing investment expenses in project construction.
The Ministry of Construction also announced a list of approximately 10,000 norms of various kinds in construction works. The system of technical-economic norms in construction works has been improved fundamentally along the following lines: the Government controls technical-economic norms and the market decides on prices to be suitable to construction works and international practice, heading towards market pricing. The Ministry has also directed localities in announcing unit prices in construction works and costs of working shifts in order to serve the management of expenses in various construction activities.
Financial markets
In 2007, in accordance with the Law on Tax Administration, tax procedures were improved fundamentally, ensuring transparency and clarity associated with new systems of tax administration. The quality of service for taxpayers pursuant to the “one-stop shop” system reduced troubles and costs for taxpayers.
The State Bank focused on the implementation of flexible monetary policies in accordance with market principles, ensuring the control of exchange rates, interest rates and inflation. It also implemented many solutions to control inflation, foster economic growth and create favorable conditions for the development and stability of the financial monetary market. The master plan on development of electronic payment systems during 2006-10, with orientations towards 2020, continued to be implemented.
Science and technology market
The Government has studied and will soon promulgate policies for import of technologies for venture investment.
Many decrees were promulgated in 2007 such as the decree on administrative punishments for violations in technology transfer and the decree on technologies to be prohibited or limited or encouraged to transfer.
Renovation and improvement of investment efficiency
In order to address overlapping of master plans and ensure their feasibility, the Ministry of Planning and Investment has proposed the Government revise and supplement the national master plan on socio-economic development to 2020.
To ensure competition in bidding, in an effort to make bid processes more transparent, the Ministry of Planning and Investment submitted to the Government a proposal to revise and supplement Decree No. 111 on the implementation of the Law on Bidding and on the selection of contractors in accordance with the Construction Law.
The Ministry of Finance, Ministry of Transport, Ministry of Construction, Ministry of Industry and Trade, Ministry of Agriculture and Rural Development coordinated in promulgating specific norms of construction required for each sector. More than 1,000 construction norms for all sectors of construction: civil, industries (power), transportation, irrigation and building materials, have been promulgated.
Standardization requirements have been extended to most construction stages from survey, design, installation, testing, and checking for approval to exploitation, operation, usage and maintenance.
The Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade continued reviewing development strategies to develop solutions for sectoral development, especially for sectors with high export turnover.
Other issues
Administrative reforms were speeded up and implemented more comprehensively in order to strengthen the capacity and effectiveness of state agencies, create favorable conditions for investment and business activities and enhance the competitiveness of industries and localities. Administrative reforms in ministries, agencies and localities focused on such issues as standardization of procedures and formalities of dealing with documents, modernization of administrative management, computerization of administrative procedures, experimental implementation of the “one-stop-shop” mechanism; and public announcement of all administrative procedures.
The Ministry of Education and Training promulgated various documents guiding the conversion of certain public educational units into private units and the identification and publication of criteria and conditions for the establishment of universities, professional schools and colleges, including those with foreign investment.
The Ministry of Natural Resources and Environment continued reviewing criteria on the quality of water and soil; promulgated technical norms on the environment for a number of specific sectors; and summed up comments and finalized a governmental decree on assessment of environmental degradation and pollution.
Food safety and hygiene, social accountability and environmental protection have become the responsibilities of not only the government but also enterprises. Localities have designed and implemented environmental protection projects for river deltas, nature reserves and ecosystems, promoted socialization of environment protection efforts, build up systems of information and reporting on the environment; and enhanced environment communication work (VLLF).-