Quy chế 9078/BKHDT-NHNN-BTC-BCT

REGULATION

COOPERATION IN MACROECONOMIC MANAGEMENT AND OPERATION

Pursuant to the Decree No. 36/2012/NĐ-CP dated April 18, 2012 of the Government defining the functions, tasks, entitlements and organizational structures of Ministries, ministerial-level agencies;

Pursuant to the Decree No. 116/2008/NĐ-CP of Government dated November 14, 2008 defining the functions, tasks, entitlements and organizational structures of the Ministry of Planning and Investment;

Pursuant to the Government's Decree No. 156/2013/NĐ-CP dated December 26, 2013 defining the functions, tasks, entitlements and organizational structures of the State Bank of Vietnam;

Pursuant to the Government's Decree No. 215/2013/NĐ-CP dated December 23, 2013 defining the functions, tasks, entitlements and organizational structures of the Ministry of Finance;

Pursuant to the Decree No. 95/2012/NĐ-CP of the Government dated November 12, 2012 defining the functions, tasks, entitlements and organizational structures of the Ministry of Industry and Trade;

Pursuant to the Decree No. 08/2012/NĐ-CP of the Government dated February 16, 2012 promulgating the Government’s working regulations;

Pursuant to the Decision No. 1317/QĐ-TTg dated August 06, 2013 of the Prime Minister approving the scheme for reforming the coordinating mechanism for management and operation of macro economic activities;

The Ministry of Planning and Investment, The State Bank of Vietnam, the Ministry of Finance and the Ministry of Industry and Trade (hereafter referred to as “The Four Agencies”) agree to promulgate the scheme for reforming the mechanism for cooperation in management and operation of macroeconomic activities (hereafter referred to as “the Scheme”) among the following regulatory agencies:

Chapter I

PURPOSES, VIEWPOINTS AND RULES

Article 1. Purposes of the Regulation

1. To make certain contributions towards successfully implementing the Government's working regulations; improve the consistency, efficiency and effectiveness that macroeconomic management activities may achieve; cope with any socioeconomic fluctuations that take place throughout the country or in overseas countries for specific periods.

2. To stabilize macroeconomic environment, and create the advantageous and clear business climate with an increase in the ability of predication to attract more investments, foster the development of production and business activities and lay the foundation for sustainable growth.

Article 2. Cooperative requirements and principles

1. Cooperate in objective-based macroeconomic management and operation with the intent to achieve the short and medium-term balance of macroeconomic factors, including economic growth, inflation, government budget balance, balance of trade and consumption.

2. Cooperate in active, timely, unanimous, constant and systematic manner among the Four Agencies on the whole research process for proposing, carrying out, supervising and assessing the policies on finance, currency, credit, investment and development, trade and price.

3. With regard to each macroeconomic factor, assign an agency within its permitted function and delegated power to preside over cooperation with other relevant agencies in reaching a predetermined target for the operation of macroeconomic activities and ensure these targets proportionate to other macroeconomic ones.

4. Ensure conformity to policies and guidelines of the Government and the Prime Minister on issues concerning introduction of policies on finance, currency, credit, investment and development, trade and price.

Chapter II

SCOPE, CONTENTS AND PROCESS OF COOPERATIVE ACTIVITIES

Article 3. Scope and contents of cooperative activities

1. Cooperation in preparing and proposing the plan for yearly, medium and long-term macroeconomic targets, and managing policies on macroeconomic factors such as economic growth rate, inflation, government budget balance, balance of trade and consumption.

2. Cooperation, consultation, information sharing in the process of documenting, implementing, monitoring, assessing, explaining the outcomes of the policies on investment, resource allocation, currency, credit, finance, domestic trade, export, import and consumption.

3. Cooperation in enhancing the ability to analyze, assess and forecast impacts caused by the policies of investment and development, currency, credit, finance, trade and price on macroeconomic targets.

Article 4. Cooperating process

1. With regard to each macroeconomic factor, the Presiding Agency (hereafter referred to as PA) cooperate with the Cooperating Agency (hereafter referred to as CA) in suggesting purposes, policy measures, operational approaches; recommending the contents that CA takes part in and types of information that CA shall provide, term and forms of such participation and information provision.

2. Based on the functions and duties provided for by the Government and the responsibilities of Ministries stipulated in this Regulation, CA shall provide information and give their advice if required.

3. In the course of implementation, PA and CA shall be responsible for supervising and assessing the outcomes of implementation of the macroeconomic policies and achievement of macroeconomic targets within the cooperating scope defined in this Regulation. In case CA finds any problem with the contents or about implementing macroeconomic policies and targets, CA shall promptly notify such problem in writing or in any other form to the PA for the purpose of reporting to the Steering Committee or for submission to the Government, the Prime Minister to seek solutions to the ultra vires matters.

4. With regard to each macroeconomic factor, PA shall submit a general report on cooperative activities and outcomes to the Ministry of Planning and Investment and other cooperating agencies; the Ministry of Planning and Investment shall be responsible for reporting to the Government and the Prime Minister.

Chapter III

TASKS AND POWERS OF THE AGENCIES IN EACH COOPERATIVE ACTIVITY

Article 5. Cooperation in setting and regulating economic growth targets

1. The Ministry of Planning and Investment shall preside over setting and regulation of economic growth targets with greater concentration on the GDP growth rate; the total social investment, including investments from the state budget (inclusive of those funded by Official Development Assistance, Government bonds), government credit, all types of enterprises, public and private partners; and social consumption.

2. The State Bank of Vietnam, the Ministry of Finance and the Ministry of Industry and Trade shall cooperate with the Ministry of Planning and Investment in the following activities within their delegated power:

The State Bank of Vietnam shall provide the information about the growth rate of outstanding credits, the total of payment instruments, interest rates, preferential credits for industries, sector, and other necessary matters; give their advice on GDP growth targets, development credit growth rates, the extent of government bond issuance, etc

The Ministry of Finance shall provide the information on state budget estimate and execution; capital mobilization to be carried out through the State Treasury system and other channels; budget plan and current state of execution of investment loans, credits and other incentive policies of the State; current state and results of the capital mobilization via the stock market; planned changes in policies and regulations on annual budget revenues and expenditures.

c) The Ministry of Industry and Trade shall provide the information on controlling orientation of export and import activities ; trade regulation, domestic market management and other necessary matters; domestic production with attention paid to mining productivity of crude oil, coal, etc.; give their opinions on the growth of industries, trade, social consumption, etc.

3. The Ministry of Planning and Investment shall preside over the general report on assessment of the result of cooperation in setting and regulating economic growth targets.

Article 6. Cooperation in setting and regulating inflation targets

1. The State Bank of Vietnam shall preside over setting and regulation of inflation targets with concentrate on factors such as the total outstanding credit in the economy, payment instruments, interest rates, balance of payments and exchange rates.

2. The Ministry of Planning and Investment, the Ministry of Finance and the Ministry of Industry and Trade shall cooperate with the State Bank of Vietnam in the intra vires activities as follows:

The Ministry of Planning and Investment shall provide the information on GDP growth, consumer price index, aggregated sales of retail goods and services, needs for investment capital, the ability to mobilize and disburse the foreign investment capital, Official Development Assistance capital, government credits; give their advice on the control of the growth of outstanding credits, interest rates, exchange rates, total payment instruments, balance of payments and other necessary matters.

b) The Ministry of Finance shall preside over or cooperate with Ministries, Departments and local authorities in provision of the information on price control; provide the information on the tariff of imported and exported goods subject to the State’s price controls, mobilized capital through the stock market, foreign debt management; give their advice on the control of the exchange rate, interest rate, the total payment instruments and other necessary matters.

c) The Ministry of Industry and Trade shall provide the information on export and import management, balance of trade, domestic market control, ensure the adequate supply and demand of goods; give their advice on management of exchange rates, balance of payments and other necessary matters.

3. The State Bank of Vietnam shall preside over compilation of quarterly reports on assessment of the result of cooperation in setting and regulating inflation targets.

Article 7. Cooperation in managing the balancing of the State revenues and expenditures

1. The Ministry of Finance shall preside over establishment and implementation of fiscal policies, including the balancing of revenues and expenditures, the State budget deficit; management of application and repayment of domestic and foreign loans of the Government, public debts, foreign debts and aids.

2. The Ministry of Planning and Investment, the Ministry of Finance and the Ministry of Industry and Trade shall cooperate with The State Bank of Vietnam in the following intra vires activities:

The Ministry of Planning and Investment shall provide the information on economic growth, consumer price index, development of economic sectors, total social expenditures, major balances in the national economy such as accumulation – consumption balance, savings – investment balance; give their advice on the infrastructure spending, recurrent expenditure, balancing of the budget revenues and expenditures, public debts, tax and fee policies.

b) The State Bank of Vietnam shall provide the information about interest rates, exchange rates, credit growth, balance of payments, so on.; give their advice on determination of the interest rate of Government bonds, preparation of foreign debt and aid refinancing, link between payment systems serving the tax and fee collection.

c) The Ministry of Industry and Trade shall provide the information on export and import operation, balance of trade, domestic market control, open market policy in accordance with international commitments, etc.; give advice on management of tax policies.

3. The Ministry of Finance shall preside over quarterly general reports on assessment of the result of cooperation in balancing the budget revenues and expenditures.

Article 8. Cooperation in establishing and administrating the domestic trade, export, import and balance of trade

1. The Ministry of Industry and Trade shall preside over administration of the domestic trade, export, import and balance of trade with greater concentration on the activities such as domestic market development, export and import and balance of trade.

2. The Ministry of Planning and Investment the State Bank of Vietnam and the Ministry of Finance shall cooperate with the Ministry of Industry and Trade in management of the following intra vires activities

The Ministry of Finance shall provide the information about tariff and tax policies on the manufacturing sectors relating to the export and import activities; give their advice on administration of the export and import, domestic manufacturing and trading activities and other necessary matters; provide the general information, anticipate the stock market in the nation and other major countries and territories.

b) The Ministry of Planning and Investment shall provide general information, anticipate the world economy, macroeconomic policy of some major countries and territories; provide the domestic information on economic growth, aggregated sales of retail goods and services, the like; give their advice on administration of export and import, and the domestic market, etc.

c) The State Bank of Vietnam shall provide the information on exchange rates, trade credits, consumer credits; have the ideas on the operation of the trade balance; provide the general information, anticipate the future inflation of some main countries and territories.

3. The Ministry of Industry and Trade shall preside over preparation of quarterly general reports on assessment of the result of cooperation in administrating domestic trade, export, import and balance of trade.

Chapter IV

IMPLEMENTATION

Article 9. IMPLEMENTATION

1. The agencies agrees to establish Interministerial Steering Committee (hereafter referred to as ISC) (including the Ministry of Planning and Investment, the State bank of Vietnam, the Ministry of Finance, the Ministry of Industry and Trade), chaired by the Minister of the Ministry of Planning and Investment and joined by the Governor of the State Bank, the Minister of Finance, the Minister of the Ministry of Industry and Trade.

2. Operational rules of ISC:

The members of ISC shall be responsible for directing and managing related organizations and individuals under their delegated authority as defined in this Regulation..

b) Each agency shall establish the Coordinating Group whose members shall be the representatives of the related affiliates or those acting as focal points of operations such as: cooperating with Coordinating Groups of other agencies; summarizing, analyzing and advising policies; advising on the performance of the activities of coordination in policies as defined in this Regulation and other relevant statutes. The operational rules of each Coordinating Group shall be established and issued by the members of the ISC, depending on their cooperative functions, powers and responsibilities.

c) The agencies shall agree to establish the Interministerial Group, chaired by the Head of Coordinating Group of the Ministry of Planning and Investment, which is charged with assisting the ISC; the members of the Interministerial Group shall be the Coordinating Group’s representatives at The Four Agencies.

d) The ISC shall hold quarterly meetings discuss and confer on the contents prescribed in this Regulation.

e) The ISC and the Interministerial Group shall cooperate with other groups such as the National Financial and Monetary Policy Advisory Council, Interdisciplinary Groups in charge of domestic markets.

h) The ISC and the Standing Committee of the Interministerial Group shall receive monthly and irregular information from the Ministry of Planning and Investment and other agencies.

3. On the first quarter of each year, agencies shall take charge of drawing up the action plan to perform cooperating tasks for submission to the Ministry of Planning and Investment to summarize and submit a final report to the Prime Minister.

4. The Ministry of Planning and Investment shall preside over preparation of a quarterly report on the administration of the macroeconomic targets prescribed in Chapter III of this Regulation to report to the Prime Minister; the Ministry of Planning and Investment shall send also send such report to the Government, the State Bank of Vietnam, the Ministry of Finance, The Ministry of Industry and Trade and other agencies according to the Prime Minister’s directions or ISC’s decisions.

5. Working mode of the Interministerial Group:

The Interministerial Group shall hold quarterly meetings prior to the meetings of ISC at least 1 week.

b) The Interministerial Group may hold an unscheduled meeting whenever it is necessary to discuss operative operations and other related issues that require cooperation.

c) The Interministerial Group may organize the symposium to get professional advice from economists and scientists.

6. Information provision and sharing:

The Interministerial Group shall discuss and agree on the list of information that is provided for other agencies in each period with the intent to implement this Regulation.

b) The Coordinating Group of each agency periodically provides and shares information for/with the others as prescribed in Point a, Clause 6, Article 9 of this Regulation.

Besides the periodical list of statistical information, other types of required information such as survey results, estimated figures, prediction results, reports on the implementation, evaluation reports and other detailed information shall be shared with other relevant Coordinating Groups. Provided information shall be used only to draft, supervise and assess the performance of the activities within the scope of cooperation stipulated by this Regulation.

With regard to information classified as the State Secrets, agencies shall be all agreed about the proper form of information provision with respect to each type of information and regulation of the Law on State Secret Protection.

d) Information shall be provided in the form of documents, electronic data (emails and/or information-based websites); paper documents; rights to access such information and data system.

 Schedule of information provision:

- Monthly report: before the 25^th of every month

- Quarterly report: before the 15^th of the first month of the next quarter.

- Yearly report: in the first month of the next year.

- Schedule the content of information to be provided may be changed, depending on up-to-date and important features of such information in each specific period.

7. The funding for operations of ISC, the Interministerial Group and other Coordinating Groups shall be provided by the state budget and included in the approved annual estimated expenditures on performance of administrative tasks of PA.

8. Any problem or new issue that arises during the implementation of the Regulation, the agencies shall discuss and reach agreement on any proper amendment.

Article 10. Effect

This Regulation shall take effect from the signing day./.