Prime Minister Pham Minh Chinh: The Finance sector has contributed to the achievements of economic development in 2022

Prime Minister Pham Minh Chinh

According to the Prime Minister, in 2022, the economy witnessed many difficulties. In that context, under the directions of the Party, the administration of the Government and the effort of business communities and the people, up to this point, the macro economy has been stabilized, the inflation is controlled at under 4%, the GDP growth is about 8% and many types of major balances are ensured. In particular, the Ministry of Finance has contributed significantly to the achievements of Vietnam’s economy.

The Prime Minister also pointed out five important lessons for the finance-state budget in the previous year. Firstly, it is about unity and discipline, close coordination of the Ministry of Finance with ministries, sectors and localities in implementing tasks, distributing and using reasonable and effective forces to achieve the above results. Secondly, firmly grasping the situation, closely monitoring and analyzing the relevant situation, to have a quick, appropriate, and effective policy response based on the functions, tasks and powers of the Ministry. Thirdly, it is a harmonious and effective combination of fiscal policy with monetary policy and other policies. Fourth, promoting digital transformation in the financial industry to reduce costs, time, procedures, and troubles for people and businesses. Finally, perfecting the institutions.

According to Prime Minister Pham Minh Chinh, in 2023, the situation was still difficult because of the consequences of the Covid-19 pandemic, high inflation in the world causing difficulties to the people, resulting in a decline in demand, and export markets were narrowed. Therefore, the financial sector needed to continue researching to reduce taxes, fees and charges for businesses. The Prime Minister suggested that, in 2023, the entire finance sector needed "unity, discipline, and flexibility; innovation; and effectiveness”.

The task set for the Finance sector in the coming year is very difficult, so the Prime Minister assigned the Finance sector to focus on researching and developing plans, tasks and solutions to ensure absolute national financial safety and security; giving priority to stabilizing the macro-economy, ensuring a great balance, in which balancing the revenue-expenditure, striving for reducing overspending, reducing public debt, reducing government debt, and increasing development investment; to rationally restructure industries and fields, focusing on growth drivers such as investment, consumption, and export; have tools to regulate prices, ensure social security, and ensure people's lives.

Giving more specific directives to the Finance sector in 2023, the Prime Minister requested the Ministry of Finance develop an action plan and implement appropriate and effective fiscal policies to ensure macroeconomic stability and major balances, focusing on cooperation between sectors and localities, on effective implementation of issued policies to remove difficulties for businesses, control inflation, promote economic recovery and development.

The Ministry of Finance needed to focus on reviewing and perfecting institutions, focusing on institutional breakthroughs, and removing problems. At the same time, improving the quality of human resources, and restructuring the apparatus appropriately, ensuring compactness, efficiency and effectiveness.

“In the task of budget revenues and expenditure management, it is necessary to collect correctly, adequately and promptly revenues, prevent revenue loss, effectively manage newly arising revenue sources, reduce the rate of tax arrears, strive to increase state budget revenue, focus on digital transformation for transparent budget revenue collection; organize tight budget expenditure management, minimize recurrent expenditure from the beginning of the year, ensure resources for important expenditure tasks and other urgent tasks.

“Along with that, it is necessary to improve the quality of financial markets, securities, insurance and corporate bonds. It is necessary to study and discuss with bond issuers and bondholders to consider together to remove difficulties and obstacles in the market," the Prime Minister said.

Finally, the Prime Minister noted that the Ministry of Finance should continue to study and issue policies to support people and businesses to promote production and business, thereby ensuring a sustainable source of revenue for the state budget.