Communique of the 8th Plenum of the Central Committee of the Communist Party of Vietnam

by Vu Kim Chung

12-11-1999

The Central Committee of the Communist Party of Viet Nam has issued a communique on its 8th plenum convened in Ha Noi on November 4 to 11. The communique said:

The 8th plenum of the CPV Central Committee focussed its discussions on the three following important points:

- Reviewing the implementation of the 1999 plan and determining the targets, tasks, orientations and main solutions for the socio-economic development plan for 2000.

- Guiding preparations for the documents to be presented at the 9th Congress of the Party.

- Reviewing the results and experiences of the self-criticism and criticism drive conducted in the spirit of the Resolution of the 6th plenum of the Party Central Committee (second phase) by a number of Party Committees and organizations directly under the Party Central Committee; and giving opinions on how to continue stepping up the campaign for Party building and strengthening.

In an important move to show the people it is serious about tackling corruption, it also asked for the sacking of Deputy Prime Minister Ngo Xuan Loc over a corruption scandal related to an ADB-Financed Development Project.

Evaluating the implementation of the socio-economic development plan for 1999, the plenum noted: In face of many difficulties and challenges, our country has been able to maintain its political, economic and social stability, continued to register economic growth, harvested bumper rice crops, overfulfilled the exports plan, made progress in the hunger elimination and poverty reduction program and in cultural, social, educational, health care, physical training and sport activities, and maintained national security and defence.

Those results have been achieved thanks to the great efforts and high determination of the entire Party and people, and the efforts of various branches and levels in implementing Resolution 4 and Resolution 6 (first phase) and Resolution 6 (second phase) of the Party Central Committee, Resolution 06 of the Political Bureau, the Resolution of the National Assembly on the 1999 tasks, and in combining the Party building and strengthening work with the implementation of the socio-economic development plan.

The Government and various branches and levels have made progress in exercising and renewing their functions of guidance, management and regulation; mechanisms, policies and laws have been made more uniform. They have taken the initiative in settling urgent socio-economic issues, in seeking capital sources for development investment, bringing into play the internal strength, and exercising measures to spur consumer demand.The financial-monetary crisis in the region is tending to ease and the economies of a number of countries in the region are being restored. This has created conditions for our country to broaden external economic relations and increase our export earnings.

The plenum frankly and strictly pointed to outstanding problems and weaknesses. These are: our economy has not yet been able to prevent the slowing down of the growth rate; the quality of economic development and the economy's competitiveness and efficiency are still low; there are irrational aspects in the investment structure and limits in the investment environment; the educational, cultural and social sectors have yet to settle urgent issues.

On the causes of these outstanding problems and weaknesses, the plenum held that apart from objective causes, the subjective causes are: failure to settle uniformly and effectively the key points in adjusting the economic structure and raising economic efficiency, stabilizing the investment environment and major balances; the mechanisms and policies in a number of sectors have not yet been renewed to suit reality; the markets have not yet been broadened as expected; the local enterprises have made slow progress and their competitive ability is low; all possible resources, especially domestic resources, have not yet been brought into play for development; the managing and regulating apparatus still remains cumbersome, overlapping, ineffective and inefficient, and has shown negative expressions and sluggishness; corruption has not yet been repulsed; many correct policies and decisions have not yet been promptly implemented.

By making a deep analysis of the achievements and outstanding problems in socio-economic development in 1999, the plenum decided on the following targets, orientations, tasks and main solutions for the socio-economic development plan in 2000:

The year 2000 will be the last year of implementing the ten-year strategy of socio-economic stabilisation and development (1991-2000) and the five-year plan (1996-2000) worked out by the 7th Congress and the 8th Congress of the Party. The targets and tasks for the year 2000 should be set in combination with the targets and tasks of the five-year plan (1996-2000) and should create conditions for the implementation of the 2001-2005 plan.

Therefore, the tasks set for the year 2000 are very heavy, requiring great efforts to achieve the targets of mobilizing internal strength, stopping the slowing down of the growth rate, promoting stable factors for a higher economic growth rate than in 1999, striving to achieve the highest rate in the five-year plan (1996-2000); making clear improvements in the economy's competitiveness and efficiency; developing science and technology, fostering human resources and settling urgent social issues, improving the material and cultural life of all social strata, ensuring political-social stability, and creating momentum for sustainable development in the next five years (2001-2005).

In order to achieve the above goals, the plenum decided on the following major tasks:

- To boost production in close combination with market demand; to develop comprehensively agriculture and rural areas; to remove obstacles in industrial production, develop the processing industry and services; to pay due attention to the domestic market, expand export market; to improve the quality and efficiency of socio-economic activities; to promulgate policies stimulating the people's purchasing power, particularly in rural areas.

- To mobilize internal strength, increase development investment, increase the ability to attract foreign investment and use it effectively. To continue improving the investment environment along the direction of encouraging development investment by the whole society. To focus investment on projects of high socio-economic efficiency.

- To develop and improve the quality of education-training, science and technology and environmental protection.

- To actively settle urgent social issues, attach importance to job generation, hunger eradication, poverty reduction, and the control of drug trafficking and addiction, prostitution and other social evils. To stop and drive back bureaucracy and corruption, particularly in rural development projects where the needs are greatest.

- To strengthen national defence and security in close combination with economic development. To ensure order and discipline in socio-economic activities.

The plenum decided the tasks of economic branches and put forward feasible solutions to fulfil socio-economic targets and tasks of the year 2000.

Regarding the direction for preparing documents for the ninth Congress, the plenum affirmed that the ninth Party Congress is of special importance, being the first congress of the Party in the 21st century; on the basis of refining and inheriting the Party's successes and leading experiences in 70 years of the 20th century, 15 years of renovation and the five-year term of the eighth Congress, to continue developing in detail and perfecting the Party's Platform, guidelines and policies and the State's institution.

The plenum agreed on directions for major issues to be included in the Political Report, the Socio-Economic Report and the Report on Revising the Party Statute to submit to the ninth Congress. The plenum assigned the drafting sub-committees to compile those reports in accordance with the directions decided by the plenum.

Regarding guidance of the implementation of the resolution of the sixth Party Central Committee's Plenum (second phase), the plenum discussed and agreed with the Political Bureau's report on self-criticism and criticism in line with the resolution of the sixth Party Central Committee's Plenum (second phase). Initial results are: a clear improvement in the entire Party's awareness of the spirit of the resolution of the sixth Party Central Committee's Plenum (second phase); the Political Bureau has been unanimous in its guidance and showed high determination, closely followed the pace of the movement and provided concrete suggestions on the contents of criticism conducted by Party committees in localities, branches and at the central level. The Political Bureau's suggestions regarding criticism have been seriously received and followed by Party committees and organizations at all levels. Collective criticism reports by many Party committees at all levels, Party committees of organizations, and Party Political Bureau-appointed boards have reflected their seriousness in listening to opinions of lower levels, agencies, branches, veteran revolutionaries and public opinions, as these reports have a profound content with clear analysis of strong and weak points, mention a number of outstanding problems which have never been put forth for criticism in Party committees; individual criticism reports by leaders of a number of provincial and municipal Party committees, Party committees of organizations, and Party Political Bureau-appointed boards have also manifested their seriousness. Many of those reports pointed out and analyzed their strong as well as weak points, declared in detail the property of their own and their family. The mass media have regularly distributed information and warmly responded to the drive, creating a favourable atmosphere and public demand for a high sense of responsibility from Party committees in self-criticism and criticism.

However, according to requirements set in the Politburo's directive on the campaign for Party building and strengthening, the implementation is slow; the contents of criticism reports by some Party committees and individuals are still poor without looking straight into the truth and deeply analysing reasons and solutions; they still tend to avoid mentioning specific cases; collective shortcomings have yet to be linked to the responsibility of each member of the leadership. Some Party committee members wanted to conduct criticism perfunctorily without making careful and serious preparations. A number of Party members and cadres have violated laws and moral standards while implementing the Resolution.

From the strong and weak points mentioned in the self-criticism and criticism drive, the plenum decided that in the year 2000, it is necessary to achieve good results in both Party building and strengthening as required by the Resolution of the sixth plenum of the Party Central Committee (second phase). This aims to make the Party really clean, strong and worthy of the people's trust and facilitate preparations for the Party's ninth Congress. Following are the immediate tasks:

- Further raising awareness of the importance of the campaign for Party building and strengthening; strictly complying with the requirements set in the Politburo's directive; accelerating the implementation of self-criticism and criticism with focus on high quality and efficiency first of all among key leaders, and then making self-criticism and criticism a regular Party activity.

- Heads of Party committees must set examples by showing a high sense of responsibility in the campaign.

- Party committees must strictly observe the process of preparing for self-criticism and criticism.

- Criticism reports must be supplemented and completed according to the Politburo's suggestions prior to criticism sessions.

- Outstanding cases raised by various levels, branches, Party members, cadres and people must be considered, made clear and handled timely.

The plenum also considered the responsibility of some officials directly under the Party Central Committee's management who had been involved in recent major legal cases. The plenum decided to serve warnings to Cao Si Kiem, CPV CC member, former governor of the State Bank of Viet Nam, and Deputy Director of the CPV CC's Commission for Economic Affairs, and Ngo Xuan Loc, CPV CC member and Deputy Prime Minister.

The plenum also proposed that the National Assembly relieve Loc from his post as Deputy PM for his transgressions and venal behaviour related to the Asian Development Bank-financed Irrigation and Flood Protection Rehabilitation Project and having accepted bribes from the prime international consultant attached to the project in consideration of selection. The plenum further proposed that pending on the results of the findings after the completion of the investigations in the case, the consultant be black-listed from development projects. Poor management and irregular practices by the Central Project Office of the Ministry of Agriculture and Rural Development has resulted in substandard quality in the construction work on the Hanoi Dykes, problems with relief wells for the dykes, poor construction in the rehabilitation of the North Nghe An and Song Chu irrigation schemes, and improper construction of the rehabilitated Bai Thuong Dam by forcing the Chinese contractor to construct the dam with lean concrete instead of roller compacted concrete as specified by the American design consultantant on the project. The project has caused massive losses to the contractor because of poor project management of the CPO, insisting on complicated and in some cases illegal bureaucratic procedures, and conflict of interest by insisting in the hiring of its own construction companies and offices as subcontractors to the prime contractor for the reconstruction of the dam.

Dao Duy Quat, deputy head of the party's Ideological and Cultural Commission, earlier said Loc furthermore was singled out because of unidentified problems with the Thanh Long water park project in Hanoi, which was plagued by irregularities. Construction and industry falls under Loc's responsibilities as deputy prime minister and it was in this office that the problems with the Bai Thuong Dam project arose.


Deputy PM: Ngo Xuan Loc

Vietnamese prosecutors said on November 22 they were preparing cases against four officials involved in an unfinished water resources development project that was expected to lead to the sacking of Deputy Prime Minister Ngo Xuan Loc. The ruling Communist Party accused Loc of mismanagement over the project and said it would seek his dismissal by the National Assembly during the legislative organ's session in November, a request unlikely to be rejected. Prosecutors said it was unclear when the four officials from the Ministry of Planning and Investment and the Ministry of Agriculture and Rural Development would be brought to court, adding that they had been charged recently.

They gave no further comment, but the party daily Nhan Dan (People) said the four had been charged with negligence for allowing the Hanoi-based project to proceed after it was obvious bribes were paid as consideraiton to win the project by the lead international consultant.

The project, which encompasses rehabilitation of the Hanoi Dykes, the North Nghe An Irrigation Ystsem and Song Chu Irrigation System and the Bai Thuong Dam in Thanh Hoa, has been plagued by allegations of graft, illegal land transfers and illegal sub-contracting of government organizations for goods and services delivered to the project, the prime international consultants and contractors that carried out construction.

After reporting the party's rebuke of Loc on November 11, state media ignored the issue. But towards the end of November newspapers carried lengthy stories on the controversy. Official media said Loc, who has responsibility for industry and construction, signed off on the project after an earlier submission to go ahead with that particular lead consultant had been rejected by the government. The party did not directly accuse Loc of graft or said he would be charged. The deputy prime minister has not commented.

Reports identified two of the senior officials who were charged as Bui Tuong Lam and Nguyen Quang Linh, head and deputy head of the HDPI. A third official was charged in June and the CPO Director Le Van Hien was relieved of his duties effective June 1 as a result of the preliminary investigations and replaced by Nguyen Dinh Hiep.

"We've all heard stories of endemic corruption in Vietnam, but this deception was so blatant it meant the senior party leadership could not just close ranks, they had to act," said one foreign diplomat.

Analysts said the action against Loc was intended to mollify a populace cynical about attempts to stamp out widespread official corruption and boost confidence in the state apparatus.

Loc also had to be accountable for problems within the cement industry when he was construction minister in the mid-90s, said Quat, briefing correspondents about the week-long plenum at a news conference before the VTV bulletin.

Kiem, who as deputy head of the party's economic commission, had to take responsibility for losses suffered by the banking industry when he was central bank governor in the mid-90s, Quat said. At that time many banks had an explosion of bad debt because of lax lending.

Neither man had carried out their duty properly, he said.

"The central committee has considered disciplinary measures for the two -- Ngo Xuan Loc and Cao Sy Kiem -- over their responsibility in carrying out state activities," Quat said.

He said the elite politburo would also discipline former customs director Dinh, who was replaced in October, over problems during his tenure. Dinh's department was heavily criticised because of numerous smuggling cases involving senior customs officials. Foreign investors also list graft at customs points as one of the top headaches in doing business in Vietnam. The Chinese contractor for the Bai Thuong Dam project reported on many occasions it was unable to import necessary equipment from China to carry out the construction work. The bureaucratic delays could only be surmounted with massive bribes which, in addition to the other bureaucratic problems associated with the project, resulted in the work being nearly 70 percent more than they had bid for--all for bribes and bureaucratic problems associated with the implementation of construction.

The delays in importing the equipment , together with the other bureaucratic irregularities, caused the dam construction schedule to slide, despite frantic attempts by the Canadian engineering subconsultant from Vancouver to remedy the situation. His efforts to assist in resolving the problems in management and getting the work back on schedule, however, resulted in the CPO, after closed-door discussions with the lead international consultant, to which the subconsulants was not privy, and embarrassed by what the subconsultant had unwittingly uncovered, to deny him to stay in the country and therefore continue with his valiant attempts to improve the situation at the project, said Quat. The majority of the work was completed only in September 1999 instead of August 1998, as had been planned. Work was still continuing on the Bai Thuong Dam and Hanoi Dykes as late as November 1999 and was expected to go on well into 2000, particularly on the hanoi Dykes.

The plenum showed high determination and responsibility before the entire Party and people in leading and organizing the implementation of the three major points as mentioned above with a view to grasping opportunities, overcoming challenges and creating new momentum for the entire people to enter the year 2000.