Ministry of Finance performs administrative reform contributing to socio-economic development

Lawyer Ha Huu Phong

The Ministry of Finance has been in the top three of ministries and ministerial-level agencies leading the PAR Index and leading the ranking of readiness for Information and Communication Technology (Vietnam ICT Index) for many years. Could you please tell us your assessment of this achievement of the finance sector?

Being in the top three of the Public Administration Reform Index is an indicator that fully demonstrates the efforts and achievements of the difficult reform process and obstacles of the Ministry of Finance. As a business, who has also accompanied with thousands of firms for nearly 20 years, I can clearly feel the daily changes when interacting with authorities of the Ministry of Finance, especially in administrative reforms related to tax administration. For example, the simplest picture is that I had to personally go to the tax branches and wait all morning to submit a declaration on reporting the situation of using invoices or register to print invoices 10 years ago. Now, my staff can process it in the office in minutes. The sense of confidence and security when working with State agencies is very important and those are the values ​​that the reform of the Ministry of Finance brings out. At the same time, feelings of inhibition and suppression gradually decrease over time, which means the confidence and boldness of firms in production and business activities are increased.

It is necessary to imagine most of the activities of the Ministry of Finance have a direct and great influence on the national economy and the business community at the macro and micro level, and also touching on the interests of many different groups of people. Administrative reform is not only an activity that touches negative interest groups but also touches on the stagnation and fear of change of some officers in the sector. Furthermore, administrative reform is not just about changing dossiers, paper forms or changing the process of receiving documents, but it is also about changing the working methods, working habits and interests of most officers performing duties in the sector. The application of information technology and digital transformation is an opportunity and a solution to implement administrative reform that must be taken by the Ministry of Finance.

Could you please tell us how the administrative reform efforts of the Ministry of Finance have contributed to promoting socio-economic development in general and supporting businesses and people in particular in production, business and implement financial obligations to the State?

The well-planned and methodical efforts of the ministry are the reason for the increase in revenue collection because it helps reduce budget loss and creates conditions and opportunities for firms to improve business performance, revenue and profit. Administrative reform also increases transparency, limits negativity and reduces waste of business time, helping firms to focus resources on their production and business activities.

Imaging that the life cycle of an enterprise including the stage of market entry, survival and development, and exit from the market, the Ministry of Finance is managing and playing a very important role in procedures and issues in the middle stage. This means that the stage of survival and development, so it can be said it’s a very important stage. The simplicity and efficiency of these procedures are of great significance to the viability and development of the business in particular and the economy in general and the investor community sentiment into the State. In any economy, investors who have confidence and peace of mind about the institutions and the economy will certainly invest much more boldly.

In other words, the biggest result from the achievements of the Ministry of Finance in administrative reform activities is not only increasing revenue collection but also creating attractiveness and clearer corridors for business activities, contributing to the economic growth and development of the country.

I believe that if the Ministry of Finance is determined and boldly promotes administrative procedure reform activities more evenly and drastically in all its subordinate units, the results will be much greater.

Do you have any comments on the administrative reform of the Ministry of Finance in the past time and your recommendations for the future?

The results that the Ministry of Finance has achieved are undeniable, but to meet the aspirations and demands of the business community and the economy, the Ministry of Finance and agencies as well as other sectors need to change more.

First of all, the Ministry of Finance should implement more drastic, uniform and consistent reforms in all subordinate units. The fact that some parts are actively reforming, but others have the inertia and a lack of closeness so will lead to a concave path of institutions and policies that businesses have to go through, so the economy will still face difficulties.

Secondly, it is necessary to digitise the entire management activities and the reform needs to target the business community management system, not the people who manage the business. The application of big data technology, machine learning and artificial intelligence as well as blockchain technology to the management of the economy is an undeniable trend, so instead of avoiding it, we should accelerate and push forward to made use of its advantages, helping the economy develop faster, stronger and more firmly.

The last point I want to recommend is that the Ministry of Finance should not only reform itself within its own agency but also take measures to support firms to apply the achievements of the ministry, for example, creating channels, portals for firms to directly integrate their software into the Ministry's system, minimising intermediary stages; becoming a pioneer, leading and spreading the flag for other ministries and sector to accompany in administrative reform and business support.

Thank you!