Ten outstanding events of finance sector in 2020

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The timely release of national reserve goods for the prevention and fight against the Covid-19 pandemic is one of the top events.

1. Issue fiscal policies to promptly support businesses and people in response to the Covid-19 pandemic

In 2020 (as of November 30, 2020), in the context of the domestic and international economy facing many difficulties due to the impact of the Covid-19 pandemic, the Ministry of Finance actively developed and submitted to the Government and National Assembly for approval of three Resolutions of the National Assembly at the 9th session; submit to the Government to submit to the Standing Committee of the National Assembly's six Resolutions (of which four decisions have been approved by the Standing Committee). At the same time, submit to the Government to issue 25 decrees, submit to the Prime Minister for issuing five Decisions and issue according to its authority 103 TT.

There are many documents on solutions to support businesses and people to overcome the difficulties of Covid-19 such as: Resolution No. 116/2020/QH14 of the National Assembly on reduction of corporate income tax payable in 2020 for enterprises, cooperatives, non-business units and other organizations; Resolution No. 107/2020/QH14 dated 10/6/2020 of the National Assembly on extension of agricultural land use tax exemption specified in Resolution No. 55/2010/QH12 dated 24/11/2010 of the National Assembly on agricultural land use tax exemption or reduction, a number of articles which are amended and supplemented under the National Assembly's Resolution No. 28/2016/QH14 dated 11/11/2016; Resolution No. 954/2020/UBTVQH14 dated June 2, 2020 adjusting the family deduction rate for personal income tax; Resolution No. 979/2020/UBTVQH14 dated July 27, 2020 of UBTVQH amending and supplementing sub-item 2, Section I of the Environmental Protection Tariff specified in Clause 1, Article 1 of Resolution No. 579/2018/UBTVQH dated 26/9/2018 of UBTVQH on the environmental protection tariff; Decree No. 41/2020/ND-CP dated 8/4/2020 on the extension of time limits for tax payment and land rental; Decree No. 70/2020/ND-CP dated June 28, 2020, providing the registration fee rate applicable to domestically manufactured and assembled automobiles through December 31, 2020; Decision No. 22/2020/QD-TTg dated 10/8/2020 on reduction of land rent by 2020 for those affected by Covid-19; Decision No. 155/2020/QD-BTC dated 7/2/2020 on promulgating the list of goods exempt from import tax for the prevention and control of acute respiratory infections caused by new strains of coronavirus.

In particular, a series of fees and charges have been proposed by the Ministry of Finance to reduce costs for people and businesses, such as a 70% reduction of business registration fees; 67% reduction in corporate information disclosure fee; 50% reduction of the fee for granting the operation license of the credit institution; 50% reduction of 20 out of 22 fees and charges in the securities sector in 21 circulars issued in 2020.

2. Proactively, effectively administer the state budget, making an important contribution to the successful implementation of the "dual task" in both pandemic prevention and socio-economic development

Under the leadership of the Party, the close and timely direction of the Government and the Prime Minister, following the practical situation, the Ministry of Finance has proactively developed plans to manage revenues, expenditures and balance.

The state budget is suitable for economic growth scenarios, both assisting businesses and people to respond to the pandemic, strengthening the macro foundation, promoting economic development, while maintaining the balance of the central budget and local budgets at all levels, contributing to the implementation of the dual goal of preventing the pandemic, focusing on economic recovery and development, ensuring social security and social order.

To ensure the balance of the budget, in addition to the use of excess state budget revenues in 2019, the Ministry of Finance has asked ministries, central agencies and localities to review and cut conference and work funding as well as domestic and overseas charges, saving on recurrent expenses that are not needed or urgent; localities actively use the provisions and reserves of their budgets and local resources to handle arising tasks in the locality. At the same time, to develop a plan to mobilize more social resources to ensure the liquidity of the state budget fund (when necessary).

As a result, by 2020 Vietnam is one of the few economies in the world achieving positive growth; inflation was kept below 4%; indicators on overspending, public debt, government debt, and foreign debt in the 2016-2020 period are within the scope of the National Assembly's decision (not exceeding 3.9% of GDP).

3. Reform and modernization continue to maintain a pioneering position and achieve many impressive results

The Ministry of Finance continued to rank second out of 17 ministries on administrative reform in 2019 (PAR index 2019) with 94.77 points (announced in May 2020 by the Administration Reform Steering Committee of the Government).

This is the eighth consecutive year that the Ministry of Finance is in the top three in the ranking of the PAR index. All of the Ministry of Finance's administrative procedures have been provided with online public services.

The Ministry of Finance continues to rank first among ministries and ministerial agencies in the overall index of information technology application (ICT index) in 2019 with 0.9291 points, far ahead of the set behind in the rankings, marking the 8th consecutive year of the ICT index.

By the end of 2020, the total number of administrative procedures under the management of the Ministry of Finance was 977 procedures, of which 106 procedures are provided with online public service provision at level 1, and 288 procedures at level 2. Level 3 was 192 procedures and level 4 was 391 procedures.

At the same time, the connection and integration of 296 level 3 and 4 payment services has been completed on the National Service Portal, reaching a rate of 51%, exceeding 21% compared with the provisions of Resolution No. 01/NQ-CP dated January 1, 2020 and Resolution No. 17/NQ-CP dated 7/3/2019 of the Government.

These commercial services are considered a digital revolution in the financial industry, contributing to changing the face of the Finance sector in the application of information technology.

In addition, in order to realize the goals of the Government and the Ministry of Finance in committing to publicity, transparency and accountability in the allocation, management and use of public resources, in 2020, the Ministry of Finance opened the State Budget Public Portal (https://ckns.mof.gov.vn).

Previously, on 1 July, according to the results of the announcement of the National Budget Disclosure Index (OBI) of Vietnam and the Publicity Index of the Ministry and Central Agencies (MOBI) for 2019.

The assessment has made many efforts and achieved remarkable progress in the level of budget transparency in comparison with the 2017 review period, ranked 77 of 117 countries, up 14 grades, of which: reaching 38 of 100 points for the Public Budget pillar, up 23 points; 11 of 100 points for the Public Participation pillar, up 4 points; 74 of 100 points for the Supervisory pillar, an increase of 2 points compared to 2017.

4. Successfully organize ASEAN Finance Ministers Meeting and ASEAN Finance Ministers Meeting and Governor of ASEAN Central Bank

Implementing the rotating mechanism in ASEAN, by 2020, after 10 years, Vietnam continues to assume the role of ASEAN Chair with the task of proactively pioneering in regional cooperation and integration as well as actively promoting national priorities.

In the context of the negative effects of the COVID-19 pandemic, the Ministry of Finance of Vietnam, in the chairmanship of the ASEAN Financial Cooperation Process, has proactively overcome difficulties, proposed work programs, topics and appropriate documents for its successful organization. The conference was conducted online, thereby successfully contributing to the five ASEAN Presidents of Vietnam according to the proposed plan. The 24th ASEAN Finance Ministers Meeting and the 6th ASEAN Finance Ministers and Governors Meeting were held online.

One of the outstanding results of the conference is that the Finance Ministers and the Governor of the Central Bank of ASEAN have approved the Vietnamese initiative on "Sustainable Finance in ASEAN". The ASEAN Economic Community (AEC) was acknowledged by the Senior Leaders at the 37th ASEAN Summit.

This initiative is designed with the aim of promoting the region's sustainable finances through the development of sustainable capital markets. This result is in line with the common goal of the region outlined in the ASEAN Economic Community Building Master Plan (AEC Blueprint 2025) and Vietnam's priorities have been implemented in the Market Development Roadmap in the 2016-2020 period with a vision to 2030, including mechanisms and policies to promote the green bond market as a priority in the future.

5. To promptly issue national reserve goods for the prevention and fight against the Covid-19 pandemic, to support people in the Central region and to ensure social security.

From the beginning of 2020, in the face of complicated and unpredictable developments of the Covid-19 pandemic, in implementing the Prime Minister's Decision, the State Reserve sector actively coordinated with the General Department of Logistics (Ministry of National Defence) to promptly issue and hand over 2,600 sets of tarpaulins of all kinds to units on land border lines, and field hospital deployment units to perform Covid-19 pandemic prevention and control.

In addition, in order to promptly support the people of the central provinces to overcome the consequences of natural disasters, gradually stabilize their lives caused by storms in October, to implement the direction of the Prime Minister, the Ministry of Finance (General Department of State Reserve) took the initiative and promptly exported nearly 20,000 tons of rice; more than 22,000 life vests of all kinds, and thousands of pieces of rescue equipment from the national source for the provinces of Quang Binh, Quang Tri, Thua Thien Hue, Quang Nam, Nghe An, Binh Dinh and Ha Tinh in difficult times.

In the context of having to implement the dual goal "to both overcome the consequences of rain and flood, ensure the safety of national reserve goods, and to promptly provide and support the people", but with the spirit of urgent, proactive and flexible action, the State Reserve sector has provided rice and rescue materials to promptly support people in areas hit by natural disasters and floods, contributing to helping people stabilize their lives, overcome difficulties and consequences of natural disasters.

6. Vietnam's stock market marks 20 years of growth, maintaining stable operations in the context of the Covid-19 pandemic and strong recovery.

Before the Covid-19 pandemic had a profound impact on the socio-economy of the world and Vietnam, with the efforts of the Government and regulators on the stock market, with internal accumulation of over 20 years of operation. The stock market maintained stable operations and recovered positively.

Despite witnessing many strong declines in the first quarter, the Index strongly recovered with the VNIndex reaching 1003.08 points, up 4.4%. The HNX-Index reached 147.7 points, up 44% compared to the end of 2019. The liquidity of the stock market remained at a relatively high level with average trading value of VND6,671 billion per session, up 43.2% over the previous year.

The stock market capitalization reached VND4,770 trillion, an increase of 8.8% compared to the end of 2019, equivalent to 79% of GDP. The size of the bond market listing increased by 13.5% compared to 2019, reaching nearly VND1,350 trillion, (equivalent to 22.4% of GDP).

The derivative stock market had a strong growth, with an average trading volume of 160,021 contracts/session, an increase of 80% compared to the previous year, OI open volume of the whole market reached 31,026 contracts, an increase of 87% compared to the end of 2019. The number of investor accounts increased sharply to nearly 2.71 million, up 14.2% compared to the end of 2019.

In 2020, along with disease control and the measures to support the economy by the Government, the Ministry of Finance has directed the SSC to manage the stock market to maintain continuous, smooth, safe operations and at the same time deployed many solutions to support the market and remove difficulties for businesses. The Ministry of Finance has issued policies of exemption and reduction of fees, charges and service prices in the securities sector.

In addition, the State Securities Commission has put forward many measures to support the market such as cutting administrative procedures, creating conditions for businesses to buy treasury shares; guide businesses to organize the online General Meeting of Shareholders; directing the two Stock Exchanges and the Securities Depository Center to build scenarios to control the stock market in all situations. The proposed solutions have the effect of supporting and reassuring the psychology of the business community and investors. Thanks to that, the stock market has maintained stable operations and improved liquidity.

7. The General Department of Taxation "reaches destination" 10 months before the tax branch reorganization and consolidation

Implementing Resolution 18-NQ/TW on continuing to renovate and streamline the organizational structure, and effective operation and Prime Minister's Decision No. 41/2018/QD-TTg dated September 25, 2018. The Government on the rearrangement of the apparatus towards a streamlined reduction, along with the reorganization of units under the General Department of Taxation, district-level tax offices were also consolidated to reduce procedures.

On the basis of Decision No. 520/QD-BTC dated April 13, 2018 of the Minister of Finance, from the end of 2018 to the end of February 2020, the Minister of Finance signed and issued 111 decisions to establish Regional Tax Departments directly under the 63 tax departments of provinces and cities nationwide.

Thereby, the 565 tax departments have been merged to establish 269 regional tax offices, reducing 296 tax branches. That is, from 711 tax departments, after merging the whole industry, there are only 415 tax departments, an increase of five units compared to the assigned plan (the plan is to reduce to 420 tax departments) and ahead of time by 10 months according to Decision No. 41/2018/QD-TTg of the Prime Minister and Decision 520 of the Minister of Finance.

The reduction in the tax departments has helped the tax system to streamline the apparatus, reduce intermediate layers and internal management departments to focus resources on the direct tax administration department, thereby improving the efficiency of the State management, meeting the requirements of assigned political tasks.

8. A breakthrough in fundamental and comprehensive reform of specialized inspection of imported goods

Following the Government's direction in Resolution No. 02/NQ-CP dated January 1, 2020 and Resolution No. 99/NQ-CP dated November 13, 2019, the General Department of Customs has developed a draft project titled "Reform of models of quality inspection and food safety inspection for imported goods” (hereinafter referred to as the project).

The project's objective is to fundamentally and comprehensively reform the specialized inspection of imported goods according to the Government's guidelines and directions in resolutions 19/NQ-CP, 01/NQ-CP, 99/NQ-CP, No. 02/NQ-CP in order to thoroughly solve the current shortcomings; reduce administrative procedures, cut resources, reduce costs and clearance time for goods; help raise awareness of corporate responsibility in compliance with the law on quality and food safety of goods, and protection for communities and consumers.

According to the results of the independent impact assessment of the Trade Facilitation Project funded by USAID, if the new model is implemented, there will be many positive impacts for businesses and the economy, specifically, the data achieved in the year of implementation is as follows: Cutting 86,166 declarations (about 54.4%) that must be checked (compared to data in 2019); saving 2,484,038 workdays; Saving more than VND881 billion (approximately US$37.8 million); savings for the economy of VND9,285 billion (approximately US$399 million); the model and project were submitted to the Prime Minister for consideration and approval by the Ministry of Finance in Report No. 164/TTr-BTC dated September 16, 2020.

9. The State Treasury system completes 100% of State Budget users who are subject to transactions through online public services at level 4.

Implementing the Government's Resolution No. 17/NQ-CP dated March 7, 2019 on a number of key tasks and solutions for e-government development in the 2019-2020 period, with a vision to 2025; the development strategy of the State Treasury (the State Treasury) to 2020 with the goal "by 2020, the State Treasury activities will be carried out on the basis of modern information technology (IT) and forming an electronic treasury" and Decree No. 11/2020/ND-CP dated 20/01/2020 of the Government regulating administrative procedures in the field of State Treasury, with drastic measures to speed up the implementation of public services, to November 30, 2020, the whole system. The State Treasury system has completed connecting 100% of budget spending units that are subject to transactions via ATMs at level 4 and integrating administrative procedures on the National Public Service Portal.

It can be affirmed that the acceleration of the implementation of public services marked the strong administrative reform of the State Treasury, creating favorable conditions for the budget unit to conduct transactions with the State Treasury 24/7 (including holidays) at any location with an internet connection, reducing travel time and operating costs for units.

At the same time, providing information about the time, process of receiving, records, payment control, increasing transparency in controlling payment records of the State Treasury, minimizing risks in payment, improving effective control of state budget expenditure and use of capital, contributing to preventing and repelling the COVID-19 pandemic. On the side of the State Treasury units, the public service agency contributes to modernize the expenditure control, which is the first step towards implementing the electronic expenditure control process.

10. Successfully organizing the Party Congress at all levels, the 5th National Emulation Congress of the Finance sector and marking 75 years of the Traditional Day of Finance

The Ministry of Finance successfully organized the XXV Party Congress (2020 - 2025). The Congress elected the Executive Committee of the Party Committee with 29 comrades. The Party Committee of the Ministry of Finance for the 2020-2025 term held the first session and elected the following titles: Secretary, Deputy Secretary, Member of the Inspection Committee and Chairman of the Inspection Committee of the Party Committee of the Ministry of Finance for the term 2020-2025.

The Ministry of Finance successfully organized the 5th patriotic Emulation Congress of the Finance sector (2021-2025). The congress is an opportunity to honor and multiply the typical advanced collectives and individuals with outstanding achievements in the patriotic emulation movement of the Finance sector. This is also an opportunity to exchange experience and creative ways to widely apply, continue to make the emulation movement of the industry develop, motivating and contributing to the successful implementation of political tasks of the Finance sector.

Over the past five years, the collectives and individuals of the Finance sector have been awarded noble awards, including: Independence Medal at various grades for five collectives and five individuals. Labor Medal at all classes for: 203 collectives and 840 individuals. Victory Medal at all classes for: 28 collectives and 68 individuals. Merit from the Prime Minister to 159 collectives and 2,072 individuals. Government emulation flags for 149 collectives. Nationwide emulation soldier for seven individuals.

In 2020, the Finance sector will organize many meaningful activities to celebrate the 75th anniversary of the Traditional Day of Finance (August 28, 1945 - August 28, 2020).