Minister of Finance: the Finance sector fulfill five-year target 2016-2020

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Minister of Finance DinhTien Dung Focusing on administrative reform and apparatus streamlining He said State revenue after deducting tax refund and added value increased by VND 24.700 billion, exceeding 8 percent (equivalent to VND 10,000 billion) of the estimate. Especially, domestic revenues, revenues from crude oil and imports and exports surpassed estimates.

According to preliminary calculations, 63 of 63 localities are expected to fulfill or exceed estimates. Total domestic revenues and State revenues exceed the estimates in 2019 and are higher than in 2018. In which, domestic revenues are 83 percent in 2019 and expected at nearly 84 percent in 2020. Central revenues are expected at 55 percent and localities at 45 percent. Moreover, spending was strictly controlled and restructured, so the spending rate decreased.

The State budget deficit decreased to less than 3.4 percent of GDP andpublic debt decreased to 56.1 percent compared to 63.6 percent of 2017. The proportion of domestic loans increased. With such results, the Minister of Finance assessed that the finance sector has basically fulfilled the five-year target 2016-2020, contributing to macroeconomic stability.

In particular, according to Minister Dung, in 2019, the finance sector has achieved many results in organisationalrestructuring, personnel streamlining and renewal of public service delivery units. The finance sector has cut more than 1,900 tax units, reduced more than 220 tax branches, 12 customs units and 191 treasury units. This streamlining helpedimprove operational efficiency and save VND 3,000 billion.

Along with the renewal process, the Ministry of Finance also promotes institutional reforms as well asadministrative procedure reforms, and contributes to improving the business environment and reducing compliance costs. In particular, in 2019, the tax, customs and treasury sectors stepped up reform, transparency and reduced time for businesses. As a result, the World Bank's Doing Business Reportshowedthe tax payment index increased by 22 spots.

Solving shortcomings

But besides achievements, the Minister of Finance still acknowledged shortcomings such as the disbursement of public investmentremainingslow, the restructuring of State-owned enterprises was not quickand many businesses have problems in debt repayment, affecting the national credit system; reform of administrative procedures, and budget discipline were limited, there are still mistakes in public procurement.

Therefore, in 2020, Minister Dung requested the Government continue to pay attention to directing authorities, strengthen budget revenue management and coordination in preventing and combatingsmuggling and trade fraud.

Overcoming the slow disbursement situation, by 2020, all budget investment capital allocated by the National Assembly must be disbursed; evencapital from previous years will be transferred; set aside budget for salary reform.

In addition, borrowing and debt repayment activities must be in estimates, ensuring public debt is below the prescribed limit, and fiscal policies should be improved, raising loan efficiency.

The Minister of Finance also requested to renew the public service delivery sector and improve autonomy. Based on the level of price fluctuation, agencies continue to adjust the prices of some goods towards the market.

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“2020 is the last year of the term, the Ministry of Finance and the Ministry of Planning and Investment will preside over and coordinate the preparation of the 10-year financial strategy, the medium and long-term investment plan, the 2021-2025 revenue and expenditure plan. Therefore, the tasks in 2020 arequite heavy, however, with the motto set by the Government, I am confident that 2020 will continue to achieve many successes,” Minister Dung said.