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15 years of innovation (1986-2000)

Date 23/12/2014 - 14:15:00 | 108 views
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Research for the fourth 5-year plan (1986-1990) was started by State Planning Committee right from 1982 by the establishment and reorganization of long-term planning within the agency. In April 1986, before the 6th National Congress of the Communist Party, the State Planning Committee submitted the report “Direction perception to build 5-year plan 1986-1990” to the Standing Committee of Council of Ministers. The report contains a comprehensive assessment of the implementation of the 5-year plan 1981-1985, and determination of main contents and tasks of the 5-year plan 1986-1990, including: stabilization and improvement of the material and cultural life of citizens; synchronization of production and enhancement of technical infrastructure, construction and strengthening of new socialist relations of production, better use of other economic sectors, formation of the new management mechanism, and insurance of enhancement for national defense and security in the new situation .

In December 1986, the 6th National Congress of the Communist Party discussed and approved the comprehensive economic reform program in three main directions: First, to transit from single- component policies to a multiple economy with the existence of multiple forms of ownership to develop production and improve efficiency of the economy; Second, to shift from the mechanism in which the State directly controls economic activities by mandatory plans, attached to the subsidy mechanism, to the market economic mechanism with the management of the State at the macro level, ensuring the autonomy of enterprises; Third, to shift from autarky economy to open economy with the outside world.

With renewal viewpoints of the Congress of the Communist Party, the State Planning Committee concretized them into action plans and programs, in which remarkable are the three major economic programs: program of food, program of consumer goods and program of export goods. The economy gained some encouraging achievements, in particular, food production was sufficient for eating, having some for reserves and also some for export, export revenue increased double compared to that of the previous 5-year plan, social productive forces were initially liberated, encouraging people to actively participate in production and business, the social aspects and residential life were much improved.

The planning approach was also basically innovated in this 5-year plan. After Resolution No.217/HDBT in November 1987, by which, the state enterprises was vested with power of autonomy, number of mandatory targets was down to 1 or 2, production subsidies and consumption subsidies through price was reduced significantly, budget allocation for investment was gradually changed to credit forms. In agriculture, Resolution No.10 (in 1988) of the Political Bureau quickly came into life. The other non-state economic sectors were gradually recognized and legitimized by law.

In general, the State Planning Committee had undertaken well advisory function for the Party and State in the process of innovation in economic thoughts, contributing to the successful implementation of the 5-year plan 1986-1990, initially creating beliefs in society, preparing the premises for the next innovation.

Research for the fifth 5-year plan (1991-1995) was held from the beginning of 1989 by the State Planning Committee, with the formation of the thematic researching groups to have a deep and extensive evaluation on the process of innovation from 1986 to 1990 and forecast of domestic and international situation. Based on the Political Platform, Strategy for socio-economic stability and development until 2000 adopted by the 7th National Congress of the Communist Party, the State Planning Committee submitted the 5-year plan 1991 -1995 to the leader levels, with the overall goal of stabilizing socio-economic and political situation, quick escape from recession and inflation, paving the way to accelerate the development in the next stage.

The specific tasks of this 5-year plan are to implement effective measures to curb inflation at a level below 2 digits in 1995; to bring the economy into the stabilization with the determined growth rate; to keep on building technical infrastructure, intensive investment, modernization of the economic bases, especially export processing bases; and to continue synchronically innovating mechanism for state management and mechanism for production and business management, moving to a market mechanism with the state management by laws, plans, policies, and other tools.

Along with the preparation of 5-year plan, the State Planning Committee was involved in the development and synthesization of 13 target programs: inflation control, food growth, livestock and meat production for exports, development of some industrial trees, forestry plantation, energy development, job creation, state-run economic innovation, socio-economic development of mountainous areas, improvement of education and training quality, health program, the list of the scientific and technological works including 30 national scientific and technological works, and reform of the state administrative system.

The work of the State Planning Committee was gradually renewed under the general direction of the economy, particularly focused on strengthening macro-planning, continued to move from a centralized planning to orientation planning, to ensure the key overall balances of the economy. State Plans also include programs and projects to ensure the conditions for the implementation of main objectives, as well as use of economic leverage policies as the main method to guide and support branches, localities and grassroots units following the development plan.

In addition, the State Planning Committee continued research on master planning for regional territories, focal economic zones, the draft economic policies and laws; assumed the prime responsibility for drafting state-owned enterprises Law, laws on promotion of domestic investment; and took part in building many other legal documents. Activities of the Departments, Institutes in the Committee gradually shifted to thematic studies, analysis projects...

During this time, the State Planning Committee assumed the prime responsibility for research to submit to the leadership agencies of the Party and the State and the 7th National Congress of the Communist Party the Strategy for socio-economic stability and development in 10 years 1991-2000.

The 6th 5-year Plan (1996-2000): In the years of 1994-1995, the State Planning Committee focused on developing and directing the implementation of the State Plans 1994, 1995 and 5-year plan 1991-1995, as well as actively preparing 5-year plan of 1996-2000. The 5-year plan 1996-2000 was formulated in the context in which the economy is growing significantly, but also complexly. On one hand, the Ministry of Planning and Investment, which is the consolidation of the State Planning Committee and the State Committee for Cooperation and Investment at that time, conducted the synthesis of 10 years for innovation in policies and mechanisms from 1986 to 1995, and implementation of 5-year plan 1991-1995, in order to draw lessons for the direction, administration, management and innovation in policies, mechanisms, restructuring... On the other hand, the Ministry conducted forecasts related to development capability, set goals and measures systems to perform the goals. According to Decree No.20/CP, the Ministry of Planning and Investment is the focal agency for management and coordination of ODA source, therefore, the Ministry synthesized this work, as well as organized many international conferences to analyze ODA aid potential in the coming time.

The Ministry had formulated schemes for development of each sector, locality, regional territory, and on that basis, set up the socio-economic development plan of 5 years 1996-2000 and then submitted to leadership levels and reported to branches, localities to have background for elaborating plans and well prepare for the 8th National Congress of the Party.

The overall goal of the 5-year plan 1996-2000 is to exploit and use well development resources to achieve higher growth as compared to the period of 1991-1995, harmoniously combine economic growth with solving urgent social problems; actively prepare the necessary preconditions for the stage of higher development after 2000.

The goals of 10 year Strategy 1991-2000 approved by the 7th National Congress of the Communist Party was basically completed, in which, all socio-economic indicators met or exceeded set tasks.

Along with the preparation of 5-year plan, the Ministry of Planning and Investment completed many other economic reports for the 8th National Congress of the Party; completing overall master plan for industrial and infrastructure development of the country, some key sectors, focal economic zones and large areas of the country; implementing basic and comprehensive innovation for planning mechanism; building overall program for renovation in management mechanism; forming programs, projects for investment and development until 2010 and 2020, including projects calling for foreign investment capital.

During the period from 1997 to 1999, due to the impact of the regional economic – financial crisis, as well as continuous major disasters, the Ministry of Planning and Investment assumed the prime responsibility for preparing a scheme to submit to the 4th Conference of the 8th Central Party Committee of the Communist Party of Vietnam to release an important Resolution on economic issue, in order to adapt to the new situation. At the same time, the Ministry maintained reporting monthly and quarterly socio-economic status and solutions to submit to the Government in monthly and quarterly meetings to report to the Politburo on socio-economic situation, and proposed immediate measures to stabilize the economy, policies to stimulate investment and consumption, solutions for the last 6 months annually  (Resolution No.08/1998/NQ-CP, Resolution No.08/1999/NQ-CP and Resolution No.11/2000/NQ-CP) in oder to gradually unclog and overcome challenges, stop decreasing trend, maintaining GDP growth rate at the highest achievable level; the cause of socio-economic development in 5 years from 1996 to 2000 had been achieving significant achievements.

The fact has proved that the Ministry of Planning and Investment has huge role in the preparation of mechanisms and policies, including the Laws (State Enterprise Law, Law on Cooperatives, Law on Foreign Investment, Bankruptcy Law, etc. .. ), especially most recently the Enterprise Law.


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