Finalization of financial policy: Need to put in relationship with the 3 pillars of growth

Dr. Nguyen Viet Loi (standing) co-chairs the Vietnam Finance Forum 2018.

In 2018, the Ministry of Finance will select the theme "Restructuring the national financial system towards a fast, comprehensive and sustainable development of Vietnam". Could you elaborate on the views, guidelines and directions of Vietnam around this topic?

The rapid development, comprehensive and sustainable in Vietnam has been the focus of the Party and State since the beginning of the renovation process. Over time, Vietnam has taken more and more steps to reach the comprehensive development and sustainable development of the country. It can be seen for the first time that the concept of "sustainable development" is officially used in the Document of the 8th Congress, marking the development of the Party's thinking about national development.

Previously, the new Party advocated combining economic development with social development, now it is required to combine closely, harmoniously and rationally between economic and social development not only with protection, environmentally friendly but also with the development of culture (in the broad sense of the word) and the strengthening of national security and defense. Thus, to the 8th Congress, the scientific concept of sustainable development with three main pillars is socio - economic - environment and the close relationship between the three pillars is officially Party noted.

In addition to acknowledging and affirming the common values of comprehensive and sustainable development, the Party also analyzes in a scientific and in-depth manner the reality of Vietnam and its position on sustainable development. This is a development in which there is a close and harmonious combination of economic growth, social progress and equality, environmental protection and sustainable development for culture, education, science and technology and consolidation of national security and defense.

So, from the perspective of experts, how do you comment on the impact of financial policy for the objective of rapid, comprehensive and sustainable economic development of our country in the past?

In the period from 2006 up to now, financial mechanisms and policies have been continuously reformed and perfected in many aspects, contributing to boosting the economy in a fast and sustainable manner. In order to implement the Party's guiding principles for rapid and sustainable economic development, the Government has submitted to the National Assembly for approval and promulgated many laws, resolutions, decrees, decisions and programs of action and guidelines in the areas of economics, environment and society. In particular, the issue of securing resources for rapid, comprehensive and sustainable economic development is always one of the top concerns of the Party and the State.

In particular, our country has improved its institutions and financial policies for rapid economic development through policies to mobilize resources such as tax policies, fees and charges from land; borrowing policy; financial market development; The policy of allocating and utilizing financial resources for rapid economic development is focused on finalizing the State Budget Law, policies and mechanisms for allocation, management and oversight of public investment expenditures, and price management...

In addition, our country has perfected the state-owned enterprises, developed economic sectors, types of enterprises and production and business organizations, contributing to the rapid and sustainable economic development. In addition, the State has issued a series of policies to support rapid, comprehensive and sustainable economic development such as the market for accounting and auditing services; market mechanism of science and technology; The market for goods and services.

Despite many results, there are still many issues to be discussed in the process of economic restructuring.

You said that there are still many issues that need to be addressed during the restructuring of the economy. What are the specific issues, sir?

In addition to the achieved results, the financial policy for fast, comprehensive and sustainable economic development in relation to the three pillars is rapid growth, ensuring social security (social security) and security environmental protection is still posing some issues that need to be focused on in the coming time, that are:

First, in terms of promoting rapid economic growth, there are currently a lack of synchronous and effective mechanisms for mobilizing resources to develop the preconditions for industrialization and modernization. This is considered as a precondition for rapid economic development such as investment in infrastructure, human development and science and technology.

Secondly, in terms of social security, social justice, and comprehensive human development, in recent years, policies relating to social security and poverty reduction have been enacted, leading to the number of documents and Legal regulations on these policies being too many, causing difficulties for implementation; At the same time, there is overlap in policy, limiting policy integration and balancing common resources.

Thirdly, on environmental protection, the issues raised in the financial policy for environmental protection are tax incentives that are not strong enough to encourage green production and consumption. The use of non-target environmental protection budgets for other spending purposes is quite common in localities. On the other hand, socialization of investment for environmental protection is slow; State budget remains the main source of funding.

Thank you Sir!