The government will make amendments to the Law on Personal Income Tax to make
it appropriate to the current situation in which the prices of all essential
goods have increased, said Deputy Minister of Finance Truong Chi Trung at the
government’s monthly press conference on March 2.

Minister of Labor, War Invalids and Social Affairs Nguyen Thi Kim Ngan

The Law on Personal Income Tax was approved by the 12^th
National Assembly and it took effect on January 1 2009.

Recently, it was said that this law should be amended to fit
the current situation in which people are being hit by the price storms.

Deputy Minister Trung said that the Finance and Justice
Ministers discussed some points of amendments in the law. If the National
Assembly approves the amendment, the amended law will be effective in 2012.

Chairman of the Government Office Nguyen Xuan Phuc said that
at the monthly cabinet meeting on March 2, the government reached a consensus
on the positive social-economic development in February and the first two
months of the year. Industrial production in February grew 17.7 percent year on
year while agricultural production saw crop areas equal to 94.1 percent, due to
severe natural calamities. Export revenues in the first two months increased
40.3 percent year on year and more than quadrupled the target passed by the
National Assembly.

Social security was ensured as the poor, lonely elderly,
disabled people and families of fallen soldiers and war invalids receiving good
attention while political security and social order was maintained, according
to cabinet members.

At the meeting, Prime Minister Nguyen Tan Dung told cabinet
members to take all necessary measures to curb inflation and bring guest
workers home from Libya.

According to the Minister of Labor, War Invalids and Social
Affairs, Nguyen Thi Kim Ngan, by the second day of March 6,198 of 10,482
Vietnamese workers in Libya were evacuated, including 2,739 those who have
already been flown home. More than 3,000 others are en route to neighboring
nations. The State and manpower exporting companies will temporarily assist
these workers with VND2 million ($100) each. The government will also have
vocational and occupational policies for this subject.

Inflation control in order to stabilize the macro economy
was highlighted as the top priority for 2011. The Prime Minister pointed out
the need to reduce budget deficits, cut 10 percent of public spending and
increase tax collection.

He instructed ministries and responsible agencies to tighten
monetary policies, carefully manage banking deposit interest rates and foreign
exchange rates and build a roadmap against heavy dependence on gold and USD
dollars in business transactions.

The Prime Minister called on ministries, industries and
local administrations to take firm measures to increase efficiency in
production and business, especially to raise productivity in agricultural
production.

He instructed that the administration reform process should
focus on streamlining administrative procedures with construction and land
procedures to be in the spotlight during 2011, in favor of ordinary people and
enterprises.

Dung added that the roadmap for market-oriented adjustment
of oil and gas prices should continue this year, along with subsidies for the
poor.

LN