National Assembly Vice Chairman Phung Quoc Hien: Our nation to decide our position

National Assembly Vice Chairman Phung Quoc Hien.

This is the first time the NA has issued a resolution on a 5-year national financial planning, the mid-term public investment plan period 2016-2020. This is considered a guideline for financial and budget activities of the period, contributing to maintaining national financial security.

In the last time, the legislative formulation in the highest power organ of the people has made overall and comprehensive reforms, that closely follow the movement of economic and social life, contributing to the NA's decisions that are always correct, timely, and meet the people’s wishes. Particularly, the financial and budget policy decision in the 2nd session, the NA term XIV is expected to contribute to ensuring and maintaining national financial security. How do you comment on this issue?

In 2016, we achieved many positive achievements. Although growth has not reached the set target of the NA but started to recover. The 6.21% of economic growth is the good growth rate compared to the current context. Macroeconomic stability; inflation is under control according to the expected target; interest rate and exchange rate are stable; the labor and employment situation achieved positive results etc.

In addition to these positive results, we still have to recognize that, there are some exigencies to be considered. Although the economic growth indicators rose well, but did not reach the target of 6.7% set by the NA. The quality of growth has not achieved as expected, growth still relies on government spending and investment so not really sustainable.

Before the set requirements, the NA had to innovate, and immediately solve the national welfare and the people’s livelihood. Right at the 2nd session, the XIV term of NA, we discussed and decided many important issues related to socio-economics. 9 of 11 adopted Resolutions at this meeting related to economic issues. In the area of ​​financial and budget, we built a 5-year plan (2016-2020), which sets out the objectives and specific orientation, creating corridors for the entire financial, budget operations in the whole phase. Many specific targets, that are the orientation for the 5 years financial plan to be determined unanimously by the NA, such as: Guaranteed mobilized rate for the State budget is not less than 23.5% of GDP, including tax, fees and charges about 21% of GDP; reducing the proportion of recurrent expenditure to less than 64% of total State budget expenditure etc.

Or how is public debt policy in the coming period also to be defined to ensure the safety of the public debt, maintaining the national financial security. All of the loans are clearly defined, how are the long-term or medium term loans also to be “enframed". This is the "beacon" for the financial-budget activities in the coming period.

The NA has made great efforts in building legislation but there is still the situation of policy indebtedness. Recent questioning of the National Assembly’s members showed that there are questions over tenure. In the next time, what is the solution that the National Assembly needs to completely overcome this situation?

This raising issue shows the responsibility of the National Assembly. The NA has an important function that is constitutional, legislative and decides the important issues of the country, at the same time to perform the supreme supervising function.

The process of completing the legal system needs to take time, not easily changed in a short time. However, there is a need to build a more complete law system, which the law must come to life, avoiding “frame laws, tube laws, or slogan laws”.

Recently, due to some laws that lack specialization, there are many articles that were assigned for the government to show details, lead to the situation of laws waiting for decrees while decrees waiting for circulars. This clearly shows the responsibility of the drafting agencies, which also have a responsibility of the National Assembly.

Besides law making, the important decisions in the NA also need to be taken promptly. To avoid policy indebtedness, the supervising work of the NA is also very important. The NA needs to supervise to standardize law implementation. However, supervising must be linked to the responsibility of those who executed, to completely supervise instead of half supervising. Must clearly define the processing time, then the next NA session could return to evaluate the effective of its resolutions. For this issue, in the last time, the NA was very drastic. Entering the 2nd session of the National Assembly of this new term, the atmosphere is very dynamic, fierce. The NA with spirit of doing and learning from experience to completely resolve difficulties to satisfy the voters’ requirements.

To restructure the State budget in the coming period, the National Assembly has defined "practicing thrift spending in the ability of the economy". In the context of revenue remains difficulty, this motto has been grasped by the Government, the Ministry of Finance thoroughly for years. The case of fixed-price public cars of the Ministry of Finance is an example. However, there is still wastage in building monumental headquarters, conferences, receptions, traveling abroad etc.

With your rich experience in the field of financial and budget management, could you tell us, how the National Assembly will tighten spending to ensure financial discipline as defined by the NA Resolution?

Thrift and combating wastefulness are important requirements in the next period. First we have to tighten the financial discipline. All of the expenditures must meet the standards, norms and ensure efficiency. The wasteful and unnecessary expenditures must be reconsidered. For example, public cars or related to public expenditure, must be standardized, clearly regulate the level of using public cars, however, in the next time, to save for budgets, for some titles, must be fixed prices or even put on salary.

The Ministry of Finance has piloted the fixed-price public cars for some titles (from home to work) is welcomed. However, after a time of conducting, need to review and assess to effectively apply to ministries, branches and localities. May consider, not only paying the fixed-prices from home to work, but for whole, both for work and travelling. We must implement the mechanism of fixed-fund, according to the specific jobs with clear output. This process will be carried out according to the schedule. The NA has contributed opinions on the draft Law on Management and use of State property (as amended), with the aim of all State assets must be managed and used effectively.

Could you share some forecasts on the economy in 2017 and to 2020, where will be the Vietnam's economy scale and structure in the world map?

The disadvantages, advantages and challenges are always interwoven. However, it is encouraging that determining the orientation, development goals for each year, as well as the whole stage, should be "the boat knows where is the shore." The remaining issue is how to implement.

We have gone through difficulty and learned from experiences. In 2016, although the economy has not been really satisfactory, the results could be seen as positive.

If from now to 2020, the economic growth speed reached 6.5% or more continuously, Vietnam could reach the target of restructuring the economy and change the growth model. In 2020, we will basically become an average industrialized country. And step into the 2021, we will have a new position.

Only we can help ourselves! Our nation to decide our position, not someone else. Of course, we need to rely on the trend of the times like the boat in the water, meet the tortuous section is unavoidable, but will be passed. I believe, if we dare to face, we will succeed!

Thank you Sir!