GOVERNMENT RESOLUTION

ON STEPPING UP SOCIALIZATION OF EDUCATIONAL, HEALTHCARE, CULTURAL, PHYSICAL TRAINING AND SPORT ACTIVITIES

In implementation of the guidelines on socialization in Various domains of social activity in the spirit of the Resolution of the Vlllth National Party congress, the Government promulgated on August 21, 1997 Resolution No. 90CP on orientations and guidelines for Socialization of educational, healthcare and cultural activities (hereinafter referred to as Resolution No. 90 for short) and Decree No. 73/1999/ND-CP of August 19, 1999, on policies to encourage socialization of activities in the educational, healthcare, cultural and sport domains (hereinafter referred to as Decree No. 73 for short).

in its September 2004 regular meeting, the Government evaluated the implementation of Resolution No. 90 and Decree No. 73 and decided to promulgate a resolution on stepping up, and improving the quality of, socialization in the above- said domains in order to achieve greater unanimity in awareness and guidelines, have concrete mechanisms as well as appropriate measures and steps up to 2010.

I. SITUATION OF THE SOCIALIZATION OF EDUCATIONAL, HEALTHCARE, CULTURAL, PHYSICAL TRAINING AND SPORT ACTIVITIES

After seven years' implementing Resolution No.90 and five years' implementing Decree No. 73, important results have been obtained in the socialization of educational, healthcare, physical training and sport activities: the society's great potential and resources have been initially brought into play; the non-public sector has been developing with many new and diversified forms and modes of activity; the public sector has seen numerous changes in the socialist-oriented market mechanism.

Nevertheless, many weaknesses and limitations have been revealed in the process of socialization. The biggest limitations are the slow speed of socialization compared to potentials and the target set in Resolution No. 90; and the uneven levels Of socialization among regions, even among provinces, cities and localities with similar socio- economic conditions.

Management is weak in development orientation, planning and performance direction.

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When social income increases, many families have managed to cater by themselves for education and healthcare needs (such as self-financed overseas study, medical examination and treatment at private medical establishments) but the State is still implementing subsidization policies by offering low charges for all the people, placing itself in budgetary restraints, lacking conditions for taking better care of policy beneficiaries, the poor, poor and difficult areas, and failing to focus on priority objectives.

ln the educational, healthcare, cultural and sport domains, public establishments, which account for a high percentage, are still applying managerial mechanisms like administrative agencies so they cannot bring into play their dynamism, autonomy and responsibility. Non-public establishments are in a small number, have poor material foundations. Their staffs are incapable and insufficient. The quality and efficiency of their operation are not high. Some establishments have shown negative signs or even committed' violations of law.

These limitations are first of all attributable to the perception that socialization is just a measure to mobilize contributions of the people when the state budget is limited. The ways of thinking and habits Of Subsidization remain relatively prevailing.

ln socialization policies, the ownership of non- public (semi-public and people founded) establishments has not been determined clearly; profit and non-profit activities of educational, healthcare, physical training and sport establishments, welfare for the people and subsidies for public establishments have not yet been clearly distinguished.

lt is a practical requirement that mechanisms, policies and solutions should be further improved with a view to both ensuring development orientations and encouraging, promoting and raising the quality of socialization of educational, healthcare, physical training and sport activities.

II. VIEWPOINTS AND GENERAL ORIENTATIONS

1 . Socialization is aimed at two major goals: firstly, to bring into full play intellectual and material potentials in the population, mobilize the entire society to care for the cause of education, healthcare, culture, physical training and sports; secondly, to create conditions for the entire society, especially policy beneficiaries and the poor, to benefit from educational, healthcare, cultural, physical training and sport achievements at a higher and higher level.

 2. The State continues to renew management mechanisms, step up the perfection of policies; increase investment resources and, at the same time, renew investment objective's, modes, structures and capital sources; focuses efforts On priority objectives and national programs on development of education, healthcare, culture, physical training and sports; provide supports for deep lying, remote and ethnic minority areas; give preferential treatment to policy beneficiaries and assistance to the poor on the basis of renewing the charge exemption. and reduction regimes along the direction of publicity, rationality and direct allocation to target beneficiaries.

3. To shift public establishments which are operating under the non-business mechanism which is heavily administrative and subsidized to operate under an autonomous mechanism under which they shall provide public-utility services on a restricted subsidization and non-profit basis (referred to as the service provision mechanism for short): having full autonomy in organization and management; correctly implementing the objectives and tasks; fully accounting their costs, balancing their revenues and expenditures...; Constantly raising the efficiency and quality of services and products; assuring interests and equal access opportunities for beneficiaries.

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4. To strongly develop non-public establishments in the two forms: people-founded and private. Ownership of non-pubic establishments shall be determined in accordance with the Civil Code. To proceed to abolish the semi- public form.

Each non-public establishment may operate under the non-profit mechanism or the profit mechanism. According to the non-profit mechanism, apart from ensuring reasonable interests of investors, implementing social policies of the Party and the State and ,providing assistance

for the poor, profits shall be mostly used for development investment. According to the profit mechanism, profits may be divided to individuals and liable to tax. The State encourages the development of non-profit establishments.

To transform a number of public establishments into non-public ones to be managed by collectives or individuals and to refund capital to the State.

To encourage domestic and foreign investments in various forms compliant with development plannings and suitable to the requirements and characteristics of each domain. investors shall have their legitimate material and spiritual interests guaranteed.

5. The State intensifies inspection and supervision of law implementation; enhances the role of mass organizations, particularly professional associations, in supervising service activities.

The State creates an environment conducive to development, fair competition and equality by law in order to accelerate public and non-public establishments to develop in both scale and quality and to upgrade themselves up to the advanced level in the region and in the world.

III ORIENTATIONS FOR FURTHER SOCIALIZATION IN EDUCATIONAL, HEALTHCARE, CULTURAL, PHYSICAL TRAINING AND SPORT DOMAINS

1 . Education and training

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To ensure funds for general education; concentrate investments on key tasks and national target programs; train human resources for spearhead and key trades and occupations and those for which it is difficult to mobilize resources from the society; prioritize investments in difficult and ethnic minority

The State adopts mechanisms and policies for training sufficient numbers of teachers, education administrators and other employees who meet quality requirements, especially in deep-lying, remote and difficulty areas; continues to implement mechanisms and policies to encourage and attract excellent pupils and students to work as teachers or lecturers, linking training to employment.

b/ To mobilize resources of all branches, levels, economic and social organizations and individuals for education development. To promote ties between schools and families and the society; mobilize the intellect and resources of the whole branch and the entire society for renewing educational contents and programs and implementing comprehensive education. To promulgate concrete mechanisms and policies to encourage, and define responsibilities of, branches, localities, socio-economic organizations and labor users to participate in building schools, provide financial supports for learners, attract trained manpower and supervise education activities.

c/ To fundamentally renew the school fee regime: apart from the State's supports depending on the budget capability, school fees should be enough to cover necessary teaching and learning expenses and accumulations for investment in School development; for the immediate future, school fess should be enough to cover regular expenses. To abolish all charges other than school fees.

The State adopts policies to subsidize school fees or provide scholarships for pupils of general education, learners who are policy beneficiaries, live in difficult areas, the poor and excellent learners, regardless of whether their schools are public or non-public.

d/ To encourage the setting up of non-public educational, training and job training establishments; transform a number of public establishments into non-public ones. To restrict the opening of more public establishments in more economically developed regions. Not to maintain semi-public establishments and semi-public classes in public schools.

To encourage training cooperation and partnership with high-quality foreign training establishments; encourage the opening of wholly foreign-invested educational and training establishments of high quality and prestige; encourage foreign scientists and educators with high qualifications and overseas Vietnamese to participate in teaching in Vietnam.

e/ To consolidate, develop, and improve the quality of, distance education establishments, continuing education centers and community- based learning centers to meet the continuing education needs of all the people, in all places, of all levels and all age groups.

f/ Targets set for the year 2010:

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Children in non-public nurseries and kindergarten shall account for 80% and 70% respectively; pupils in non-public senior secondary schools, intermediate professional schools and vocational training establishments shall account for 40%, 30% and 60% respectively; and students in non-public universities and colleges shall account for 40 %.

2. Healthcare

a/ The State continues to increase investment in healthcare, ensuring funds for public health, basic healthcare for policy beneficiaries, the poor and under-six children. To prioritize investment in the systems of grassroots preventive medicine stations and medical clinics, especially those in deep-lying, remote and difficult areas, pediatric hospitals and departments and specialized departments which are less attractive to investment. To implement schemes on university training of medical doctors and pharmacists for northern, central and Central Highland mountainous areas and for the Mekong River Delta. To prioritize investment in developing sources of pharmaceutical materials and domestic manufacture of medicines.

b/ To increase activities of protecting and caring for the people's health. To mobilize all the people to join in protecting and caring for the health of their own, their families and communities. To encourage individuals and organizations at home and abroad to participate in humanitarian. activities, supply and support medical equipment and provide supports for medical examination and treatment.

c/ To speed up the development and raising of the quality of medical insurance; strengthen and expand compulsory medical insurance along the direction of direction of diversifying types of medical insurance to meet the people's demands; strongly develop community health insurance mainly relying on contributions of the insured, the assistance of the State and other financing sources; encourage various types of voluntary insurance.

To increase the number of medical establishments which register for medical examination and treatment under medical insurance. To step by step realize that those who pay medical insurance premiums can select medical examination and treatment establishments suitable to them. The State shall provide for the medical insurance payment regime and at the same time adopt policies on preferential treatment for social policy beneficiaries, under-six children and on assistance for the poor, ethnic minority people and people in difficult areas.

d/ To renew the hospital charge regime through step by step accurately and fully calculating amounts directly spent on patients. To step by step shift the allocation of regular operation funds to medical examination and treatment establishments to the direct allocation of funds to beneficiaries of State-provided medical services through the mode of medical insurance.

e/ To encourage the opening of private hospitals and clinics, and family doctors.

f/ To prevent and abolish monopoly in the export, import, manufacture and supply of medicines.

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To universalize medical insurance.

To shift most public hospitals to operate under the service provision mechanism; complete the transformation Of semi-public establishments into people-founded or private ones.

Provinces and cities with developed economic conditions shall all have non-public hospitals

3. Culture

a/ To intensify state management of cultural To increase investment in culture, giving priority to poor, mountainous, border, island, deep- lying, and remote areas and conserving, embellishing and promoting tangible and intangible cultural heritages.

To maintain and develop in the public form a number of traditional and typical art troupes, museums, management boards of historical relics, national libraries, museums Of provinces, Cities, rural and urban districts, mobile information and film-showing teams and schools that provide top art training and training of leading cultural and art cadres and cadres specialized in ethnic minority culture and arts..., which will play a key role in the cause of cultural development

b/ To adopt policies to attract all resources, economic sectors and people of all strata to take part in cultural and creative cultural activities in order to supply, disseminate and create more cultural products, publications and works of quality, national and modern characters, aiming to constantly raise the level of the people's cultural enjoyment. To encourage the restoration and development of traditional cultural genres and folk games of Vietnam’s nationalities

c/ To take appropriate steps in socializing a number of specialized cultural activities for each genre, area and region, particularly focusing on strongly developing arts, cultural and art training, cinematography, publication, printing and distribution, conservation of cultural heritages, fine arts and photography, libraries and copyright protection services in economically developed regions. To encourage the development of private

d/ To gradually transform into non-public forms art performance troupes and intermediate cultural and art training. To encourage a number of non-specialist, popular and mass training departments or faculties of public cultural and art schools to split themselves from these schools to set up non-public cultural and art establishments.

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e/ Targets set for the year 2010:

To shift alt existing public establishments in the cultural branch to operate under the service provision mechanism.

4. Physical training and sports

a/ The State increases investment in physical training and sport development, focusing on high- achievement sports, building a number of national or regional sport centers that can organize standard international competitions; detect and foster gymnastic and sport talents; support mass physical training.

b/ To popularize, mobilize and organize more and more people to do physical exercise and play sports, contributing to raising the stature and physical strength of the Vietnamese people, meeting the people's increasing demands for physical training and sport activities; detecting and fostering gymnastic and sport talents of the country.

c/ To step by step create and develop a physical training and sport service market. To encourage the development of non-public physical training and sport establishments and social organizations involved in physical training and sports. To encourage the professionalization of high- achievement sports in appropriate domains. To step up international cooperation on physical training and sports.

d/ Targets set for the year 2010:

To complete the shifting of public physical training and sport establishments to operate under the service provision mechanism; to transfer a number of public establishments with sufficient conditions into non-public ones. Non-public physical training and sport establishments shall account for 80%-85% of the total number of establishments nationwide.

To build national associations and federations for all sport; 80% of sports shall have provincial- level associations or federations. Vietnam shall have national representatives in most regional, continental and world sport organizations.

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1 - To strongly step up propaganda, theoretical research and raise awareness about socialization

To extensively and intensively propagate guidelines and policies regarding socialization so that all Party committees, administrations at all levels, public and non-public units and the people can have correct and full awareness about and effectively implement socialization guidelines in the educational, healthcare, cultural, physical training and sport domains.

 To intensify theoretical research, clarifying issues related to ownership, profit and non-profit character of activities social responsibility of organizations, forms socialization in each domain in order to further improve mechanisms and policies.

2. To further renew policies and management mechanisms

a/ To improve mechanisms

To improve regulations on operation models and regulations of non-public units along the direction of clearly defining responsibilities, operation purposes, contents and quality of services and products, ownership regime and operation mechanism; stipulating financial regulations and responsibilities for implementing policies and social obligations of organizations Operating under the non-profit mechanism; and applying the business mechanism to establishments operating under the profit mechanism.

To improve existing regulations or promulgate new ones on the operation of funds of various kinds; institutionalize the role and function of social organizations and enterprises participating in the process of Socialization.

To simplify administrative procedures for establishing non-public establishments on the basis of strict regulations and detailed guidance on establishment and operation conditions and the post-inspection mechanism. To provide for conditions and procedures for transforming from the public form into non-public forms.

To amend Decree No. 73 on mechanisms and policies to encourage socialization; review and amend promulgated regulations in the educational, healthcare, cultural, physica1cal training and sport domains, and at the same time study and apply them to scientific, technological, environmental and other social domains

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To amend Decree No. 10/2002/ND-CP on financial mechanisms applicable to public non business establishments having revenues so that these establishments will shift to operate under the service provisions mechanism and have conditions for developing, and raising the quality of, their products and services as well as increasing the efficiency of the State's investments in social welfare. Financial activities of establishments operating under the service provision mechanism must be made public and audited. Revenue- expenditure differences must be mainly used as development investments in establishments.

c/ To renew the state budget-using mechanism in the educational, healthcare, cultural, physical training and sport domains

To study, formulate and step by step implement a policy on bidding for the provision of services under the State's orders; encourage establishments of all economic sectors to participate in such bidding.

To study and shift the allocation of the State's financial supports for beneficiaries through public establishments to the direct allocation to beneficiaries as appropriate to each domain; step by step create conditions for beneficiaries to select services establishments regardless whether they are public or non-public; set by step transfer the tasks of implementing social policies from public establishments to local administrations at all levels.

The State provides initial supports for a given period for public establishments to transform into non-public ones; supports and encourages non-public establishments to register their operation under the non-profit mechanism. Non-public establishments shall be allowed to participate on an equal footing in undertake contracts on services ordered by the State. The state shall experimentally lease infrastructure for a long time to non-public establishments (particularly those in difficult and less developed areas).

d/ Tax policies

To adopt preferential policies for non-public establishments, especially those operating under the non-profit mechanism.

e/ Policies to mobilize capital and credit To promulgate regulations on cooperation and partnership between public establishments and localities, enterprises or individuals On building material foundations and on non-public establishments' mobilization of capital for development investment in material foundations and repayment according to agreement.

To promulgate policies to ensure legitimate and lawful material and spiritual interests of :individuals and collectives Of all economic sectors and people of different social strata participating 'in socialization, and on their right to own and inherit their contributed capital and profits, and policies on preferences for credits from the State's Development Assistance Fund.

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f/ Land policies.

Localities should adjust their land planning’s and prioritize land funds for the building of' public and

non-public educational, healthcare, cultural, physical training and sport establishments.

To exempt land use levies and land rents for non-public establishments operating under the non- profit mechanism. lo make public and simplify procedures of land assignment and lease. To resolutely and thoroughly handle land encroachment and use for wrong purposes.

g/ Manpower policies

To implement policies to ensure equality between public and non-public sectors in emulation and commendation, recognition of state titles, training and fostering, receipt and transfer of employees from the public sector to the non-public sector and vice versa. To step by step abolish the concept "State payroll" in public establishments and gradually shift to the regime of long-term labor contract.

To promulgate policies for individuals practicing their profession and state officials and servants working in non-public establishments; provide for the responsibilities of non-public establishments to ensure the quality and numbers of full-time and part-time employees suitable to their scale and branch.. or trade, ensure the regimes of social insurance, medical insurance and training and fostering to raise professional qualifications for their employees and servants.

To promulgate policies on re-training and rejuvenation of employees' of public establishments in" the period of transformation or shifting of operation" mechanism, policies on training and the State's supports for the training and fostering of employees of nonpublic establishments, policies on supports for non-public establishments in self- training and development of human resources, including .overseas training and attraction of foreign talents, specialists and managers to work in the establishments

h/ Renew the state management mechanism

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To bring into play the role of professional associations in supervising the quality of operation of establishments and the practicing status of individuals. To commend and reward in time individuals, agencies and organizations that have well performed socialization.

3. To formulate planning’s on development of socialization

To formulate planning’s on shifting public establishments with conditions meeting the socialization requirements and objectives to operate under the service provision mechanism or transforming them into non-public ones through appropriate steps; Clearly determine transformation targets, solutions and roadmap for each branch, domain and locality in the 2005-2010 period.

To widely disseminate forecasts on the development of the networks of establishments and demands for resources to be mobilized for the implementation of the planning’s with a view to attracting domestic and foreign

investors. To strongly promote international cooperation and mobilize foreign direct investment in appropriate domains.

V ORGANIZATION OF IMPLEMENTATION

1. Ministries and branches

The Ministry of Education and Training, the ministry of Labor, War invalids and Social Affairs, the ministry of Health, the Ministry of Culture and information and the Physical Training and Sport Committee shall base themselves on the above- said orientations to finalize and approve their respective socialization schemes, serving as a basis for the development of socialization with appropriate steps in the socio-economic development plans for the year 2005 and the 2006- 2010 period; direct localities to formulate and implement planning’s and plans on the development of socialization.

The Ministry of Education and Training shall assume the prime responsibility for, and coordinate with the Ministry of Labor, War invalids and Social Affairs in, formulating a school fee scheme and the Ministry of Health shall formulate a hospital charge scheme for submission to the Prime Minister in the second quarter of 2005.

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+ Submitting to the Government amendments to the Government's Decree No. 73/1999/ND-CP on mechanisms and policies to encourage socialization in the educational, healthcare, cultural, physical training and sport domains and Decree No. 10/2002/ND-CP of January 16, 2002, on the financial regime applicable to non - business units with revenues when shifting to operate under the service provision mechanism in 2005.

+ Studying to clarify matters related to ownership, profit and non-profit characters, responsibilities of establishments and forms of socialization in each domain, propose appropriate mechanisms and policies in 2005.

+ Researching and formulating policies on bidding for the provision of services under the State's orders, studying the mode of allocation of the State's supports directly to beneficiaries instead of allocation through public establishments.

The Ministry of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with the Ministry of Construction in, guiding the formulation of, or reviewing, adjusting, supplementing and supervising, land use planning’s and plans in localities, down to communes, wards, townships, villages and hamlets, in order to ensure sufficient land funds to meet the demands for building schools, hospitals, cultural, physical training and sport facilities. . . ; coordinate with the Ministry of Finance in guiding the regime of charges for land use and transfer of land use rights in accordance with the current Land Law, suitable to each form of service establishments and to the transformation of these establishments.

The Ministry of Construction shall assume the prime responsibility together with the Ministry of Finance for formulating a mechanism applicable to the experimental building of infrastructure by the State for a long-term lease by non-public establishments.

The Ministry of Home Affairs shall assume the prime responsibility for, and coordinate with the concerned ministries and branches in, studying and submitting to the Prime Minister for promulgation the model, organizational structure, autonomous mechanism and responsibilities of establishments operating under the service provision mechanism; social mechanisms and polices in line with socialization guidelines, and guiding the transformation of public establishments into people- founded or private ones.

The Ministry of Planning and investment shall assume the prime responsibility for, and coordinate with the concerned ministries and branches in, studying and submitting to the Government or Prime Minister for promulgation policies on the State's investments in or supports for non-public establishments in the cultural, healthcare, educational, 'physical training and sport domains, especially establishments operating under the non- profit mechanism.

The Ministry of Post and Telematics shall coordinate with the concerned ministries and branches in formulating policies to promote the application of information technologies to socializing educational, healthcare, cultural, physical training and sport activities.

The Ministry of Education and Training, the Ministry of Labor, War invalids and Social Affairs, the Ministry of Health, the Ministry of Culture and information, the Physical Training and Sport Committee and the concerned ministries and branches shall regularly inspect and supervise the implementation of state laws and regulations regarding contents and quality of activities and finance, promptly and strictly handle wrong-doings in order to prevent negative and fraudulent acts, illegal acts and acts of unfair competition in the process of socialization. To strongly accelerate theoretical studies and conduct intensive and extensive propaganda on the socialization objectives, contents, modes, policies and development solutions.

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The People's committees at all levels Shall direct their functional agencies to formulate plannings and plans on and organize the development of socialization in line with the undertakings and policies of the State and in compatibility with the competence and conditions of their localities.

To direct functional agencies and mobilize local resources to implement plannings; regularly supervise the implementation of state laws and regulations, promptly redress deviations and negative acts and strictly handle wrong-doings. To periodically review and draw up experience, praise in time good examples. To propose in time to the Government mechanisms and polices which need to be adjusted or supplemented, new solutions and good models which need to be widely applied.

3. Public and non-public establishments shall have to strictly implement the State's guideline policies and regulations, unceasingly raise the quality of their services and products, enhance their responsibility, and follow their operation objectives set in their charters.

4. The Central Committee of the Vietnam Fatherland Front, the Vietnam Labor Confederation, the Central Committee of the Vietnam Women's Union, the Vietnam Peasants' Association, the Vietnam Veterans' association, the concerned socio-professional associations, and the mass media are hereby requested to conduct intensive and extensive propaganda, mobilize and organize masses to take part in socializing educational, healthcare, cultural, physical training and sport activities.

5. The Ministry of Education and Training, the Ministry of Labor, War invalids and Social Affairs, the Ministry of Health, the Ministry of Culture and information, the Physical Training and Sport Committee and. The People's Committees of provinces and centrally-run cities shall have to direct the implementation of this Resolution according" to their respective functions and competence. To send biannual and annual reports on the implementation results to the Government.

ON BEHALF OF THE GOVERNMENT

PRIMINISTER




Phan Van Khai

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