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| Vice Chairman of Hanoi People's Committee Ha Minh Hai delivered a speech at the conference. Photo: Van Tuan |
Complete a wide range of financial policy mechanisms
Completing and building regulations is one of the key tasks of the MoF. The MoF has spent the last six months focusing on developing and implementing regulations, policies, and projects; improving the efficiency and effectiveness of State management; and tightening discipline in the field of finance and State budget.
Based on the tasks assigned in Resolution No. 01/NQ-CP and the Government's 2023 legal document development program, the MoF submitted to the National Assembly for approval of the Law on Prices (amended) in the first six months of the year, completing 16 out of 26 assigned task schemes, including 5 additional assigned projects and tasks in the course of administration.
By June 30, 2023, the MoF submitted to the Government for promulgating 9 Decrees, considering the issuance of 15 draft Decrees and 5 other schemes; submitted to the Prime Minister for promulgating 3 Decisions, considering issuing 1 Decision, and promulgating 39 Circulars guiding in the field of finance - State budget. Furthermore, the MoF has reviewed and systemized the list of legal documents on a regular basis; updated information on newly issued documents, fully and timely posted on the Ministry's electronic information portal and the national database; expanded the propaganda and dissemination of legal documents and new regime policies; and supported and advised on tax laws for businesses and individuals.
The MoF has worked proactively to build and perfect regulations, essentially meeting the requirements of progress, ensuring quality, institutionalizing the direction and guidelines of the Party and State, and improving the effectiveness and efficiency of State management in the field of finance - State budget. In addition, the MoF has promptly proposed and promulgated legal documents to remove obstacles for businesses and individuals, has reformed administrative procedures to lessen costs, stimulate the expansion of production and consumption, and promote economic growth.
Manage fiscal policy for the sake of businesses and individuals
The MoF has operated a proactive, flexible, and timely fiscal policy to promulgate and organize the implementation of financial policies to support the economy, remove obstacles for businesses and individuals, stabilize macroeconomics, control inflation, promote growth, and ensure social security.
State budget revenue has been guaranteed in hard times. State budget revenue in 6 months stood at 875.8 trillion VND, equivalent to 54% of the estimate.
The estimated State budget expenditure reached 804.6 trillion VND, equal to 38.8% of the estimate; of which development investment expenditure was predicted to stand at 29.7% of the National Assembly's estimated decision (the disbursement rate reached 28.63% of the plan, accounting for 30.49% of the Prime Minister's plan), higher than 43.4% (equivalent to 65.2 trillion VND) compared to the same period in 2022; debt payment stood at 49.5% of the yearly target; recurrent expenditures were expected to reach 45.8% of the 2023 target.
The balance of the central budget and local budget has been guaranteed. By 30 June 2023, 179.9 trillion VND of Government bonds were issued, with a normal term of 12.23 years and a normal interest rate of 3.7% per year.
Notably, the MoF has actively carried out the assigned tasks, proposed, developed, authorized, and promoted the implementation of fiscal policies, monetary policy, and macroeconomic policies to clear hurdles for businesses and individuals to stabilize the macroeconomy, control inflation, ensure large balances of the economy, promote economic growth and ensure social security and people's lives.
A variety of policies on exemption, reduction, and extension of taxes, fees, charges, and land rent have been submitted to competent authorities by the MoF, such as reducing 2% of the value-added tax (VAT) rate; halving the environmental protection tax rate for gasoline, oil, and lubricants; extending VAT, corporate income tax, personal income tax, and land rent in 2023.
The estimated policy packages of exemption, reduction, and extension of taxes, fees, charges, and land rents that have been issued are worth an aggerate of around 200 trillion VND (79 trillion VND spent on exemption and reduction; 121 trillion VND allocated to extension in 2023).
Restructure public debt safely and sustainably
In the first six months of 2023, the MoF submitted to the Prime Minister to promulgate Decision No. 458/QD-TTg approving the Public debt loan and repayment plan for 2023 and the 3-year public debt management program for the period 2023-2025; (ii) preside over and coordinate with ministries and localities in organizing the evaluation and development of the mid-term evaluation report on the five-year public loan and repayment plan for the period 2021-2025.
At the same time, the MoF has also strictly controlled the public debt safety targets under Resolution 07-NQ/TW of the Politburo, Resolution 23/2021/QH15 of the National Assembly, and resolutions of the Government, ensuring a safe, sustainable, and stable national financial system, macroeconomic stability; synchronously implement solutions to continue restructuring public debt; has issued long-term Government bonds; has performed professional restructuring of the Government debt portfolio in line with market conditions and ensure compliance with the provisions of the Law on Public Debt Management 2017 and guiding documents; has fully and punctually paid debts according to commitments. In the first 6 months of the year, no new guarantee has been issued for domestic and foreign projects.
The national credit rating has been effectively implemented. Even though the international circumstance remains complicated, all three credit rating agencies (S&P, Moody's, and Fitch) continue to rate Vietnam's national credit rating positively (at the BB level, stable outlook; BA2, stable outlook; and BB, positive outlook).
These are positive signals, confirming international organizations' appreciation for the economy's resilience, as well as the Government's promulgation and implementation of flexible, innovative, timely, and effective policies.
Strengthen the management of the stock market and corporate bonds
In terms of the stock market, it is essential to continue to improve the legal framework and market development policy; stimulate the management of securities trading organizations, corporate bond issuance, and public companies; strengthen the inspection, supervision, and handling of violations, to ensure the healthy development of the market.
The stock market has shown signs of a rebound for the first six months of the year. By the end of June 30, 2023, the VN-Index reached 1,120.18 points, up 4.2% compared to the end of the previous month and up 11.2% compared to the end of 2022. The stock market capitalization was worth 5,783 trillion VND, a 10.7% increase compared to the end of 2022.
Concerning the corporate bond market, there are currently 451 listed codes; the average transaction size in six months reached VND 5,871 billion/session, a decrease of 23.6% from the average in 2022. The MoF submitted to the Government for the promulgation of Decree 08/2023/ND-CP, which creates a legal basis for enterprises to deal with issuing and paying due bonds, restoring market confidence, and protecting bondholders' rights.
Further enhance digital transformation in the Financial sector
Regarding administrative procedures, the MoF has implemented 122 out of 150 tasks following the plan for the first half of 2023, of which 34 tasks were completed, 53 regular tasks were implemented to ensure progress, and 35 tasks are still being implemented in line with the plan.
The MoF reviewed and eliminated 10 administrative procedures, amended, supplemented, and replaced 21 procedures, issued 3 new procedures in the field of management; and promptly updated the national database on administrative procedures under regulations for 794/794 administrative procedures (administrative procedures) in the management field.
By dint of unwavering efforts, the MoF ranked third in 2022, with a PAR Index of 89.76%. This was the 9th consecutive year (from 2014 to 2022), the MoF was in the group of 3 ministries and ministerial-level agencies leading the PAR Index.
In terms of e-Government construction, by June 30, 2023, there were a total of 786 online public services in the field of management, of which 408 online public services reached the partial level (equivalent to reaching the level of 1.2 under the old regulations) and 378 online public services reached the full course level (equivalent to reaching the level of 3.4).
Simultaneously, it integrated 300 online public services on the National Public Service Portal; processed over 9 million records of 901.8 thousand businesses participating in the electronic tax declaration system (achieving 99.93%); businesses registered to pay electronic tax at a proportion of 99.06%; 21.4 thousand businesses and individuals registered to use e-invoices with tax agency codes initiated from cash registers; and 54 foreign suppliers registered and declared tax successfully.
Furthermore, 13 out of 14 ministries and sectors were linked, with 250 administrative procedures implemented through the National Single Window with over 62,000 businesses participating. The ASEAN Single Window facilitated the exchange of certificate of origin (C/O) electronic form D with nine ASEAN member countries; experimental exchange of customs declarations with the Eurasian Economic Union.
Tighten discipline of finance - State budget
During the first six months of the year, the MoF increased its inspection and examination of finance and budget in order to combat smuggling, trade fraud, and counterfeit goods.
The MoF submitted to the Prime Minister for the promulgation of Directive No. 22/CT-TTg dated June 23, 2023, on correcting, strengthening, and disciplining in the observance of the law on finance - State budget.
In the first half of the year, 31.6 thousand inspections and examinations were carried out, with a focus on budget revenue and expenditure management, management and use of investment capital, price management, and securities; 343.2 thousand cooperate tax returns dossiers were examined. As a result, the proposal to handle finance exceeded 43 trillion VND, of which 11.2 trillion VND was spent on proposals to collect the State budget (8.4 trillion NVD were collected) and 31.9 trillion VND was allocated to loss reduction, deduction, and other financial handling.
Furthermore, the MoF has performed well as a member of the Standing 389 National Steering Committee, actively cooperating closely with ministries, branches, and localities to implement numerous solutions to combat smuggling, trade fraud, and counterfeiting. In the first half of the year, in terms of the anti-trafficking investigation, 8.1 thousand violations were handled in the field of customs, up 7.1% compared to 2022. The violated goods were worth an aggerate of about 2.7 trillion VND; including cases of transporting firecrackers across the border, smuggling gasoline, coal, minerals, illegally transporting drugs, foreign currency, ivory, rhino horn, with more sophisticated methods and tricks. The customs authority prosecuted 18 cases, transferred another agency to propose the prosecution of 59 cases, and paid 314.8 billion VND to the State budget.
These outstanding results in all aspects of work in the first half of the year have provided momentum for the MoF to continue striving to fulfill at its best the set tasks of finance and State budget in 2023./.
