Report of the performance in 2014 and action plan of the Partnership Group in 2015-2016

Report of the performance in 2014 and action plan of the Partnership Group in 2015-2016 29/12/2015 02:44:00 105

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PUBLIC FINANCE PARTNERSHIP GROUP (PFPG)

REPORT OF THE PERFORMANCE IN 2014 AND ACTION PLAN OF THE PARTNERSHIP GROUP IN 2015 - 2016

(Updated by June 2015)

In 2014, the Ministry of Finance (MOF) directed the formulation and implementation of an Action Plan for the Public Finance Partnership Group 2014-2015 (PFPG 2014 - 2015) to: (i) improve the understanding and trust between MOF and development partners (DPs) to promote the implementation of critical goals and missions in the financial sector, (ii) provide a basis for the prompt and effective coordination and implementation of commitments, and (iii) serve as a document to review, verify, evaluate and ensure the PFPG operation to be practical, consistent with requirements and general directions on partnership development. The PFPG Plan 2014 - 2015 has been a new approach in the Ministry of Finance’s partnership, in accordance with the general orientation innitiated by the Government on partnership development since 2013.

The PFPG Plan 2014 - 2015 includes the central cooperation between MOF and DPs in the 2014 - 2015 period, specifying three groups of activities, such as (1) policy dialogue, (2) preparation of programs and projects supporting the implementation of reforms in the financial sector, and (3) organization arrangements to ensure the PFPG effectiveness.

Activities outlined in the Plan are updated and evaluated regularly (every 6 months) to review, adjust and supplement timely the cooperation between MOF and DPs, ensuring the public finance partnership that is timely, efficient and satisfactory to the needs and expectations of the parties.

At the High-level Dialogue Meeting between MOF and DPs in public finance by August 2014 (chaired by the Financial Minister, Deputy Financial Minister and the World Bank Country Director), the Plan was agreed, approved and implemented uniformly in 2014 - 2015.

To timely adjust activities for the 2015 Plan, MOF and DPs have evaluated and updated the PFPG Plan in 2014-2015.

I. Assessment of the 2014-2015 PFPG Plan Performance in 2014 (from August 2014):

1. Implementation of activities in the Action Plan

In 2014, there was a consensus in the PFPG (MOF and DPs) to select 13 prioritized activities in the financial sector to incorporate in the Plan 2014-2015. Over the past ten months (from August 2014 to June 2015), MOF and DPs have achieved positive results, namely:

- In terms of progress, by June 2015, the PFPG has implemented 11 out 13 activities as committed (85% of actions listed in the Plan). Specifically:

+ Four activities were completed, from which policy advices had been produced with practical contribution to the sector. In particular, recommendations on the progress of State Budget Law amendments were dicussed and absorbed by MOF and relevant government agencies (during the high-level dialogue meetings in August 2014, December 2014 and January 2015); recommendations on the implementation of the Government Financial Information Systems (GFMIS) were mutually discussed and agreed to identify the model and roadmap appropriate to the Vietnamese context (in April 2014 and March 2015, WB supported two Missions working with MOF, and jointly held the Vietnam Finance in September 2014); some recommendations on amendments to the State Asset Management Law were effectively advised by the PFPG (in April 2015). Also, MOF has developed the website http://www.mof.gov.vn/portal/page/portal/mof_vn/PFPG to support activities implemented by PFPG;

+ Seven activities have been actively coordinated by MOF and PFPG to put into place as scheduled. In general, these activities have generated some initial achievements. In particular, the timeline of Public Expenditure Review (PER) was approved by the Government and launched in September 2014; some practical recommendations were contributed by PFPG to the enforecement of Decree No. 61/ND-CP of the Government dated June 25, 2013 promulgating the regulation on financial supervision, performance assessment and disclosure of financial information applicable to state-owned enterprises and state-capitalized enterprises (October 2014); the content of technical assistance was determined to improve institution and strengthen management capacity in the financial market, and state financial instruments in Voluntary Pension Fund (December 2014), the development of a national financial institution model to mobilize and finance long-term funds for infrastructure projects was reviewed (QIII/2014); and the rolling Medium-term Action Plan of the financial sector for the period 2015-2017 was updated (QIV/2014 - QI/2015);

+ The remaining two activities in 2014 -2015 Plan and one on-going activity were rescheduled to match with MOF’s working program in 2015 reported to the Government (including the presentation and discussion of main content of the Law on Management and Utilization of State Capital Invested in Production and Business of Enterprises, which was proposed to be delayed from QIV/2014 to QII-III/2015); and one recurring activity in the group of solutions enhancing the performance of PFPG to be implemented every 2-3 years (i.e. assessment and review of PFPG performance).

2. Specific results:

Overall, the majority of activities selected in the 2014 - 2015 Plan have been effectively executed by MOF and PFPG, producing positive results. Specifically:

(i) In-depth dialogue activities: these activities supporting the dialogue to improve financial institutions (through dialogues and conferences at all levels), have been comprehensively conducted as scheduled. Some results from the Group’s dialogues in the recent year have been implemented properly and effectively, as followed:

+ Some of the Group’s dialogue topics have significantly contributed to the partnership with the Government. In 2014, the contents of four topics were selected by the Government’s Vietnam Development Partnership Forum (VDPF) and recommended as policy actions of VDPF 2014 (these four topics related to: (1) strengthening the management of public assets: focus on land governance enhancement and well-operated land market development; (2) innovating and strengthening the performance of SOEs, and regularly publishing their business results to facilitate supervision, which are relevant to the evaluation report of the Decree 61/2013/ND-CP; (3) simplifying tax procedures; and (4) supporting the development of enterprises). These results show the practical contribution made by PFPG in line with its orientation.

To complete the draft law, MOF consolidated comments from the National Assembly along with recommendations from the Group and presented to the Prime Minister and the National Assembly Standing Committee for consideration. Accordingly, a number of suggestions from PFPG was taken into consideration while drafting the Law, including: updating definitions and concepts to be consistent with international practices; determining the scope of budget revenues and expenditures comprehensively; determining the scope and calculation of budget deficit according to international best practices; allowing budget deficit at provincial level and specifying debt limits for each type of provinces to ensure debt sustainability; revising the classification of budget expenditures between capital and recurrent expenditures; adding provisions on the five-year financial – budgetary plan and three-year state budget plan in a "rolling" basis; supplementing management principles of off-budget state financial funds; specifically identifying principles in revenue decentralization, expenditure mandates and relationship between budget levels; including provisions on the disclosure of budgeting process and budget documentation to citizens; restricting expenditures carried forward to the following year, among other things.

+ Regarding the PER progress, MOF and Partners (WB) have been actively coordinating to develop the report on a timely basis as committed (see details in the below table). The draft final report is expected to be presented to the Prime Minister and widely publicized by the end of 2015.

Time

Activities

September 2014

Inception Workshop

October – November 2014

Complete Report outline. Complete data collection

November –December 2014

Government agencies build preliminary report (1st draft) relating to their technical areas as assigned.

January 2015

World Bank (WB) Mission discusses with government agencies on the basis of the 1st draft.

February 2015

Based on the 1st draft and discussion of the Mission, the WB working groups prepare the 2nd draft, which is sent for comments from Government agencies.

March – April 2015

Government agencies respond with their comments, amendments and supplements to the 2nd draft

April – May 2015

WB working groups send the 3rd draft

May 2015

Government agencies comment on the 3rd draft

May – June 2015

WB Missions discuss directly with government agencies based on the 3rd draft.

Organize a workshop to discuss the draft report.

June – September 2015

Finalize the draft report

October 2015

Submit to the Prime Minister

December 2015

Key Working Groups of MOF and WB coordinate to complete the Report based on the direction given by the Prime Minister. Report launching workshop.

+ The draft orientating the amendments of State Asset Management Law in 2008 was cooperatively developed by AusAID (through WB) and MOF taking into consideration the comments collected at the consultation conference (9-11th April 2015) with partners/technical units within and outside the Ministry, evaluating the Law implementation over the last five years. Simultaneously, the consultation support orienting the amendments of this Law was given to submit the Draft Law to the Government (April 2015);

+ The recent discussion on completion of policies, corporate financial mechanisms, SOE restructuring (e.g. Law on Management and Use of State Capital Invested in Production and Business at Enterprises was passed by the National Assembly, two circulars were issued to complete policies on financial mechanism for SOEs and remove their difficulties in production and business, etc.) has contributed to the reorganization and renovation of SOEs. Some important results have been achieved and the performance of SOEs has been improved. The state capital investment in SOEs is basically preserved and developed. The performance of Vietnam Debt Asset Trading Company (DATC) has accelerated the equitization of SOEs through debt restructuring, financial strengthening prior to equitisation, built financial capacity and supported the equitized companies to stabilize and promote their business.

+ In the discussion of SOE restructuring, it was proposed to boost equitization and divestment of state capital in enterprises to contribute effectively to the implementation of the Government’s restructuring scheme. By the end of 2014, restructuring schemes of 90 out of 108 state-ownd groups and general corporations were approved by the competent authorities. In the country as a whole, 177 enterprises were reorganized (including 115 equitized enterprises and 62 merged companies). The divestment in sensitive sectors (such as securities, banking, finance, insurance, real estate and investment funds) has showed encouraging results. The total divested fund increased by 2.5 times higher than that in the same period of 2013.

+ The system of monitoring indicators for public debts and external debts has been gradually improved. Through out the discussion, the information on foreign debts and national debts has been made publicly.

+ The capacity and performance in policy forecast and evaluation, as well as scientific studies serving policy making, building national and sectoral financial strategies have been strengthened. In 2014, the dialogues with WB, IMF, EU, etc. supported the completion of a database for state budget revenue forecasts. The methodologies in policy impact assessment have been adopted in the analysis and forecasts reported to the National Assembly (namely the impact assessment of a number of tax laws as VAT, excise tax, kick-off the implemenation of Component 2 of the EU Public Finance Modernisation Programme in Viet Nam (EU PFMO)).

+ The Public Administration Reform (PAR) in financial sector has gained positive and important results with the effective application of information technology. For example, some large information technology systems (such as TABMIS and VNACCS/VCIS) were built and operated. The PAR index has been improved markedly, moving from 8 in 2012 to 4 in 2013 among 19 ministries. The administrative reform in taxation has been continuously promoted, creating favorable conditions for businesses (the tax payment time was reduced by 290 hours from 537 hours/year to 247 hours/year, and is expected to decrease further by 80 hours to 167 hours/year). The administrative reform in customs has made strong steps forward with measures to shorten the clearance time of imported goods. TABMIS was completed and deployed in 63 provinces and cities.

(ii) Activities supporting the implementation of reforms, restructuring of the national financial system: the coordination and formulation of projects assisting the financial restructuring have achieved important results such as the successful establishment and organization of actions to support the reform of corporate finance, focusing on NPL resolution and SOE restructuring. Specifically, MOF and PFPG agreed on the content and schedule of the Public Financial Management Support Program (the AAA Program financed by WB and SECO has been agreed in terms of scope, contents and results in the 2016 – 2020 period); assistance from the Government of Luxembourg to strengthen Vietnam's stock market and enhance training capacity has been submitted to the Government for approval (Project VIE 032 Capacity Building in Finance funded by Luxembourg. MOF and the donor agreed on the scope and activities in QIV/2014. Then, the project was submitted to the Prime Minister for his approval to include in the project list and implementation has starteds in 2015). To support administrative reforms associated with the modernization of management and the enhancement of IT application, in the recent year, MOF and some interested partners have intensified the discussion in order to determine tasks, schedule and resources assisting the Government Finance Management Information Program (GFMIP). Currently, WB is the interested partner, who is continuing to coordinate with MOF and other concerned agencies/ministries to complete the GFMIP model and roadmap, and eventually form a TA project for MOF to innitiate this important action.

(iii) Activities in support of implementation: Following the Plan, PFPG maintained and promoted actions in 2014 (in 2014, MOF developed and operated an e-portal serving the operation of PFPG at mof.gov.vn/portal/page/portal/mof_vn/PFPG). MOF and WB are continuing to coordinate activities effectively as planned.

Table 1. Assessment of the PFPG Plan progress from August 2014 to June 2015

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3. Activities outside the Plan

In addition to the activities proposed in the Plan, MOF and PFPG have coordinated and executed successfully a number of co-operations in state budget revenue management (as recommended in the High-level Dialogue Meeting in August 2014), in which GIZ has supported to complete the Law on Fee and Charge and the Law on Environmental Protection Tax; USAID (United States) has committed to support the General Department of Taxation (GDT) to review, systemize the list of administrative procedures, propose simplified procedures and develop a control process of administrative procedures, contributing to the implementation of Resolution No. 19 of the Government to reduce the tax filing time to the average of ASEAN-6 countries, which is 117 hours/year (QIV/2014); WB supported the revision and completion of the Accounting Law and Independent Auditing Law; Donors like Sweden, Denmark, Canada and the Netherlands, have built capacity for MOF Inspectorates and completed the inspection process on management and use of state capital; JICA has helped GDT to develop and deploy initial steps of the Tax Administration Reform by Phase 4 (QIV/2014); WB supported the review of a TA preparation to implement the roadmap of Vietnam bond market development (mainly primary market), and, at the same time, assisted the development of standards and regulations for corporate bonds (January 2015);

In 2014, DPs were also interested in supporting the training and capacity building activities in public finance management. The support from PEMNA and IMF helped strengthen the analysis and financial statistics in accordance with international standards, treasury management, budget discipline management and improvement, government financial statistics, single treasury account, budget classification and uniform accounting chart, consolidated public financial reporting, etc. To develop the government financial statistics to be in line with the GFS 2011, in January and April 2015 IMF sent experts to coordinate with MOF (led by Department of State Budget) to conduct the pilot conversion of Vietnam data under the GFS 2001, in an effort to build the Vietnam government financial statistics in the IMF's annual GFS. In the first stage, MOF is seeking the approval of the Prime Minister that allows it to converse the annual fiscal data for the period 2003-2013 into the GFSM2001 (under general economic indicators) and disseminate on IMF’s website. The comprehensive deployment and progress reports of GFS will be conducted under the AAA Program of public financial management funded by WB and SECO, which will be put in place in 2016 – 2018.

In addition, donors from Australia, the Netherlands and Denmark have supported the development and application of a software to manage assets, which are rural water supply schemes and sanitation facilities, continued to support the upgraded website of state properties, contributing to a higher degree of transparency, accountability and efficiency in the use of public assets;

II. Some challenges, limitations and solutions

1. Some challenges and limitations

After implementing the PFPG Plan in 10 months (from August 2014 to June 2015), some obstacles and problems have been identified, which are primarily in the coordination of activities. Specifically, the difficulties could be named as bellows:

(1) Coordination of activities

+ Unsynchronized attention from public finance units and partners: at present, the development and selection of topics to be included in the PFPG Plan has been independently led by MOF. The actual operation of PFPG has showed that it is required to have an in-depth and quality participation from concerned units/agencies within and outside MOF to effectively and appropriately build and choose topics for dialogue. At the same time, there should be engagement and proposals from public finance partners and development donors throughout the year. Therefore, the limited involvement from partners and different interests from concerned units/agencies in the PFPG Plan may be considered as an existing challenge that needs to be addressed in order to identify and choose the contents of dialogue and cooperation that are suitable, effective and satisfactory to all parties.

+ The coordination capacity in activity implementation is not equal among leading units in the Ministry. A number of activity groups have been very active, while some others have been highly passive and dependent on proposals from partners, and not really linked with other tasks and activities in the Plan.

+ In addition, the views, perceptions and methods of activity implementation vary among partners in their cooperation with MOF, leading to unsatisfatory results in the PFPG’s coordination and operation.

(2) The commitment of PFPG Plan should be specified in order to be effective:

In principle, activities have been deployed based on the Plan approved by MOF and PFPG. However, it have been showed in practice that, for each individual activity, there shoule be a formal commitment from PFPG. Reviewing the performance of 2014 - 2015 Plan, it was revealed that 100% of successful activities benefited from commitments delivered by leaders at all levels of MOF and Partners.

(3) The information exchange has not been timely coordinated

Although the PFPG’s e-portal has been operated, due to limited resources (staffing and funding for maintenance), the website has not been updated fully and promptly to inform partners. Poor information in the the website has not created a lot of interest from the PFPG.

Overall, the website has not really become an effective channel to update all public finance partner as expected. Part of this limitation is attributed to the seperate update of some partners in their own websites, which are not linked to the PFPG website.

2. Proposed solutions to enhance the efficiency in PFPG 1

Solution 1: Formulating a supporting mechanism

The high-level PFPG meeting in August 2014 agreed that the partnership in the new period should ensure the continuity, transparency, efficiency, action orientation on the basis of deep understanding and mutual trust. The activity plan of the PFPG is an effort to specify activities of the Group with the highlights focusing on 01-02 event(s)/high-level dialogue meeting(s) a year. For an effective coordination of activities, the Group acknowledges the need to establish a Secretariat Board to be assigned with coordination tasks for implementation of the PFPG Plan.

The Group will continue to discuss on the basis of some initial proposals in terms of composition and responsibilities of the Secretariat Board as follows:

Ø Composition: officials of the Ministry of Finance (the International Cooperation Department, the Office of the Ministry, Institute of strategy and policy on finance, etc.) and representatives of financing partners. The representative of the International Cooperation Department is the Head of the Secretariat Board.

Ø Responsibilities of the Secretariat Board: (i) Draft evaluation reports on the Group’s performance; (ii) Identify/acknowledge shortcomings of the Group and propose remedial measures; (iii) Build draft action plan of the Group for the coming period; (iv) Maintain the information system; (v) Chair consultation activities with related parties; (vi) Draft terms of references for tasks in need of cooperation with related parties, etc.

Solution 2: Strengthening information exchange

(2.1) Formulate a coordinator network:

To ensure the effectiveness of information exchange, the Group agrees to formulate a coordinator network to strengthen intra-linkages of the Group.

(2.2) Maintain the PFPG link in MOF’s e-portal:

Information relating to PFPG activities is posted in the PFPG link that could be found at MOF’s e-portal at http://www.mof.gov.vn/portal/page/portal/mof_vn/PFPG. The Group agrees on the need to maintain and update information in this link to help parties with timely and comprehensive information about PFPG activities as well as time and cost saving. To this end, the Group views that it will continue the discussion on the basis of some initial proposals as follows:

Ø Need 01 communication staff under the Secretariat Board to be in charge of drafting information exchange, and cooperation mechanism/rules (the contents of information to be updated in the website, person to approve the contents, information supplier, person to consolidate, admin authority to post information, time, and frequency of posting information, etc.; review, consolidate, classify categories of files, information about the activity of the Group PFPG; contact and exchange with coordinators of units/information, materials supply partners (if any); and have right of admin authority and timely post information, material in the website of PFPG.

Ø Unit/partner in charge of the activity in the PFPG plan timely send information, material to the Secretariat Board (communication staff) to post in the website of PFPG.

Ø To facilitate the receipt of feedbacks from MOF units/international partners relating PFPG activities, the Secretariat Board will consider to formulate a newsgroup in the PFPG website.

Ø Creat the link to DPs’ websites

Solution 3: Strengthening effectiveness of high-level dialogues

High-level dialogue meeting, as mentioned above, is the highlight in PFPG activities, a forum for the high-level leadership between MOF and international partners to discuss the mutual interests of public finance management reform, and thereby promoting the reform, creating a consensus, and a mutual voice between the Government and international partners. To this end, the PFPG agrees to organize 01-02 High-level Dialogue Meeting(s) (once in every 6-8 months) on an annual basis; each High-level Dialogue Meeting will discuss about 1-2 theme(s). To strengthen the high-level dialogue efficiency, the Group will discuss about: (3.1) the way to select, monitor and report on high-level dialogue themes; (3.2) the way to prepare and organize a High-level Dialogue Meeting; some initial proposals are as follows:

(3.1) The way to select, monitor and report on themes of high-level dialogues:

Ø The Secretariat Board will prepare a Survey of high-level dialogue themes2 and send to the Group for feedbacks in every first quarter. The survey results are the basis for the Secretariat Board to consolidate and make a shortlist of themes concerned by parties and submit to the Preparatory Meeting, where a discussion is made to select of 1-2 theme(s) submitted to the High-level Dialogue Meeting.

Ø In the High-level Dialogue Meeting, high-level delegates of MOF and DPs will consider, approve 1-2 theme(s) for the next High-level Dialogue Meeting and assign the chairing responsibilities for each dialogue theme to 01 MOF unit and 01 international partner (responsible for preparing, implementing, monitoring and reporting results in the coming Meeting). The Secretariat Board is tasked to build terms of reference for each MOF unit/international partner in charge of chairing the dialogue theme.

Ø Dialogue results of the preceding meetings (August 2014; May 2015) need to be continuously monitored, updated and reported in the following meetings. The chairing unit/partner holds responsibilities to provide information to the Secretariat Board according to the information cooperation mechanism/rules;

(3.2) The way to prepare and organize a High-level Dialogue Meeting:

Ø For each dialogue theme, according to terms of reference, the chairing unit/partner has responsibility to draft a concept note with some main contents such as (i) key dialogue contents; (ii) expected results of the dialogue; and (iii) participation/cooperation of other units/international partners during the preparation, implementation, monitoring, evaluation and report of the dialogue results. The Secretariat Board is tasked to consult related parties.

Ø High-level Dialogue Meeting agrees to conduct co-chairing format (01 leader of the Ministry of Finance and 01 high-level representative of the international partner to participate in rotating co-chairing). The Secretariat Board on the basis of the survey result prepares a list of co-chairing international partners. The list will be discussed by the Preparatory Meeting to propose rotating co-chairing schedule among international partners before submitting to the High-level Dialogue Meeting for approval.

Ø Co-chairing partner will closely cooperate with MOF to prepare the High-level Dialogue Meeting by assigning staff to participate in the Secretariat Board.

Ø The Secretariat Board is tasked to draft PFPG Annual Action Plan to be discussed by the Preparatory Meeting’s comments before submitting to the High-level Dialogue Meeting for approval, which is demonstrated in a Joint Statement co-signed by a MOF leader and a high-level representative of the Meeting co-chairing international partner;

III. Action Plan of the PFPG in 2015 - 2016

Rationale of the Action Plan:

2.1. From the donors:

(i) Orientation/commitment of donors in public finance, including the Country Partnership Strategy, Partnership Strategy in public finance, annual working plan of donors, etc.;

(ii) Orientations of topics/contents in public finance reform that the donors are interested and desire to have policy dialogues with MOF (usually the important topics/contents of mutual interest with significant policy impacts or under supports given by donors to MOF, etcs.);

(iii) Requirements of clearly defined supports/coordination between donors and MOF during the year through the progress review of programs/projects in public finance.

2.2. From the Ministry of Finance:

(i) Policy orientation of the sector, such as Financial Sector Strategies (including the Financial Sector Strategy in the period 2011-2020 and nine sub-strategies) (Decision 450/QD-TTg dated April 18, 2012); Action Program of the Financial Sector Strategy in the period 2011-2020 (Decision 224/QD-BTC dated January 1, 2013); Medium-term Action Plan of the Financial Sector Strategy in the periods of 2014-2016 and 2015-2017 (Decision 304/QD-BTC dated February 17, 2014);

(ii) Resolutions, directives and decisions of the competent authorities relating to MOF’s management scope; key projects and tasks of MOF (listed in the Government’s working program); Pressing reforms/tasks assigned to MOF such as SOE restructuring;

(iii) List of topics in public finance for dialogues during 2014 – 2016 period that have been selected in accordance with the priorities set in the Financial Sector Strategy and medium term action plan;

In 2015, in parallel to the implementation of synchronous measures to curb inflation and stabilize the macro economy, the Government issued Resolution No. 01/NQ-CP dated January 3, 2015 stipulating main tasks and solutions to direct and administer the implementation of the social-economic development plan and State Budget estimates in 2015. Simultaneously, the Government issued Resolution No. 19/NQ-CP dated December 3, 2015 identifying main tasks and solutions to continue improving the business environment and national competitiveness for the 2015 – 2016 period;

In order to effectively implement the Resolutions 1 and 19 of the Government, given the urgency and importance of the tasks to be completed during the year as well as the major impacts of each scheme, from now to the end of 2015, along with the continued improvement and updating of the Medium-term Action Plan for the period 2015-2017 to implement the Financial Sector Strategy by 2020 as a basis for a transparent public disclosure of key tasks in the 2015 - 2016 phase, MOF and its partners will continue promoting the dialogue on important reforms to implement critical goals and tasks, targeting at the highest level of socio-economic development indicators and the state budget 2015 - 2016, namely:

+ Select and promote the dialogue focusing on large reforms of the sector in 2015-2016 such as revision of the State Budget Law, Public Expenditure Review, Administrative reform in taxation and customs, Public debt management, SOE restructuring, State Asset Management Law, Accounting Law, Mechanism innovation for public service delivery units, etc., to ensure the effective cooperation and dialogue in 2015 - 2016 to be in line with MOF’s reform needs and the interest/capacity of donors. In particular, the "Administrative procedure reform in taxation and customs"3 and "SOE Restructuring"4 are judged to have strong impacts and chosen by many units/partners as the topic to be presented in PFPG meeting in May 2015. Other topics need to be further discussed by MOF with partners to specify contents/activities to be coordinated and implemented throughout the year. MOF is willing to share information and discuss the above-mentioned contents/tasks at the Conference (The focal activities of PFPG are presented in the 2015 - 2016 PFPG Plan below).

+ Hold a conference to approve the 2015 - 2016 PFPG Plan and conduct high-level policy dialogues on a number of topics of mutual interest during the year.

+......................................

Assessment of PFPG Action Plan 2014 - 2015

No.

Activity description

Expected outputs and outcomes

Implementation time

Responsible Agencies

Participating Partners

Group I. In-depth dialogue activities

1

(1) Conducting workshop for dialogues on the intended revision of the State Budget Law at the High-level Partnership Dialogue Meeting on “Revision of the State Budget Law and the Roadmap toward a Financial Management Information System” in August 2014;

- Comments are consolidated in the recommendations for amendments of the State Budget Law submitted to the Government and the National Assembly Standing Coomiitee for consideration;

- Agreement on the approval schedule of Law amendments, according to which the draft amended Law was presented to the 8th Session of the National Assembly XIII in October 2014 (as scheduled), and expected to be adopted by the National Assembly at the 9th Session in May 2015.

Completed, the discussion and incorporation of recommendations were taken at the High-level Partnership Dialogue Meetings in August and December 2014

Ministry of Finance (Ministerial leader/State Budget Department)

Germany International Cooperation Agency (GIZ);

World Bank;

Related agencies/sub-national governments.

(2) Conducting a workshop sharing research findings on fiscal decentralization (expected in QIV/2014)

2

(1) Conducting workshop for dialogues on the orientation for the refinement of the model and roadmap for the development of the Government Financial Management Information System (GFMIS) at the High-level Partnership Dialogue Meeting on “Revision of the State Budget Law and the Roadmap toward a Financial Management Information System” in August 2014, building on the outcomes of:

(i) A research report on the development of the model and roadmap for the implementation of the Government Financial Management Information System in the period of 2015-2025;

(ii) Design and implementation of GFMIS integration/consolidation module for the compilation and consolidation of financial information.

In 2014 and QI/2015, WB supported two Missions working with related agencies/units of the Government and MOF (April 2014 and March 2015) to discuss models, roadmap and technical support for GFMIS.

WB and MOF jointly organized the Vietnam-Finance 2014 Conference (September 2014). Currently, WB is coordinating with MOF and other related agencies/ministries to consult the model and roadmap for GFMIS, and agree on a TA for MOF to conduct this important mandate.

Completed in 2014; Proposed to be included in the 2015-2016 Plan

Ministry of Finance (Ministerial leaders/Financial Information and Statisics Department)

World Bank;

Related agencies;

(2) In-depth workshop of the model and roadmap for the development of the Government Financial Management Information System (GFMIS) (expected to be implemented in September 2014 within the framework of Vietnam – Finance Workshop 2014)

3

Conducting a Public Expenditure Review covering a 04 year period from 2009 – 2012, including updates of some important areas relating to the period of 2013 – 2015;

A workshop for the introduction and discussion on the Public Expenditure Review report.

- Public Expenditure Review;

- Expected follow-up steps relating to findings and recommendations from the Public Expenditure Review; possible consideration to introduce to the high-level dialogue at the High-level Partnership Dialogue Meeting (late 2015 or early 2016).

On-going, proposed to be included in the 2015-2016 Plan

Ministry of Finance (State Budget Department)

World Bank and other Development Partners;

Related agencies, including MPI, MoET, MoH, MoT, MoST, MARD, MoLISA... and 05 sub-national governments involved in the report preparation.

4

(1) Introducing and discussing basic elements of the Law on the Management of State Capital Invested in Productive and Commercial Activities.

Progress: Law on management and utilization of state capital invested in production and business of enterprises was passed by the National Assembly at the 8th Session (November 26, 2014);

- It is expected that, in 2015, MOF will disseminate basic contents of the Law.

- Expected results: Development Partners support MOF in the next steps to introduce and implement the Law, and simultaneously, assist the development of guidelines for the Law implementation.

Proposed to be implemented in 2015-2016

Ministry of Finance (led by Corporate Finance Department)

World Bank, Asian Development Bank and other Development Partners;

Related Ministries and agencies.

(2) Discussing the implementation progress of the SOE restructuring plan, with emphasis on State-owned Economic Groups and Corporations, including: (i) implementation progress of approved SOEs restructuring Schemes (ii) activities supporting the implementation of SOE restructuring and related areas (strengthening of SOE supervision; enhancing capacity and qualification of management staff, etc.)

- Regularly update information on the implementation of SOE restructuring Plan in accordance with the Decision No. 929 of the Prime Minister (through the publication of monthly, quarterly and annual reports on SOE restructuring).

- Expected follow-up steps relating to the implementation of the SOE restructuring plan, with emphasis on State-owned Economic Groups and Corporations.

On-going

 

- WB, ADB, JICA và các đối tác phát triển khác.

- Các bộ ngành, cơ quan có liên quan.

5

Conducting workshop for a 5-year review of the implementation of the 2008 Public Asset Management Law and orientation for the amendments of the Law.

- A compilation of the opinions and inputs for the finalization of the review report on the 5-year implementation of the Public Asset Management Law;

- Expected follow-up steps for improvement of the legal framework in public asset management;

On-going

Ministry of Finance (led by the Public Asset Management Department)

AusAid, World Bank and other Development Partners;

Related Ministries, agencies and units.

6

Conducting workshops for discussion on institutional improvement and capacity building regarding regulations of financial market, and State financial instruments:

(1) Review to improve the legal framework of Voluntary Pension Scheme (Workshop on a draft Decree on the establishment and operation of Voluntary Pension Scheme tentatively QI-II/2015);

(2) Brainstorm ideas on the establishment of a national-level financial institution model (2014 - 2016).

(3) Raise long-term finance for local infrastructure projects (2014 - 2016)

Progress:

(1) In 2014, MOF (Department of Banking and Financial Institutions) in collaboration with concerned ministries and agencies to review and improve the legal framework for Voluntary Pension Fund (this activity was implemented by MOF independently, without coordination with Development Partners);

(2) The proposed establishment of a national-level financial institution model, and (3) Long-term finance for local infrastructure projects (2014 - 2016): MOF (Department of Banking and Financial Institutions) suggested continuing in 2015 - 2016 to support the development of policies for the fund mobilization.

Expected results:

- A compilation of opinions and inputs and related legislation-making proposals and documents;

- Expected activities and projects in support of improvement of the legal framework on the financial market and other State financial instruments;

On-going, proposed to be included in the 2015-2016 Plan

Ministry of Finance ( Department of Banking and Financial Institution)

(1) WB has agreed conceptually on (i) supporting Ministry of Finance in the development of a Decree and Voluntary Pension Scheme in Vietnam; (ii) supporting Ministry of Finance and Vietnam Social Security in the assessment and capacity strengthening of governance and investment in the Vietnam Social Insurance Fund. Discussion is continued to find resources for the implementation of activities in (ii).

(2) MOF and MPI are coordinating to discuss with the World Bank to support the formation of national financial institution model financing long-term funds for infrastructure projects.

7

Reviewing of progress of the prioritized projects within the Financial Sector Medium-term Action Plan in 2014-2016 (MTAP)

A mid-term review report on the prioritized initiatives in MTAP 2014-2016

On-going

(QIV/2014-Q1/2015)

Ministry of Finance (Financial Strategy and Policy Institute)

 

Group II. Activities on coordination and formulation of projects in the financial sector

   

8

Meeting to introduce results of identification and development of the Public Financial Management Capacity Building Program (Technical Assistance Program, analysis and advice on PFM - AAA Program): basic contents; planned results and resources; and organizational arrangements.

- Communication to Development Partners about the project being developed (currently proposed to present at the PFPG 2015 Summit);

- Proposal to Development Partners for their consideration of pooling resources for enhanced project efficiency.

On-going

Ministry of Finance (International Cooperation Department)

WB + SECO

9

Introducing about support for the strengthening of securities market in Vietnam, training and capacity building with tentatively 03 components: (i) strengthening of capacity in the management, the legal framework and regulation of securities market; (ii) strengthening capacity and training in finance; (iii) improving quality and transactions in the securities market.

Progress: At present, SSC is cooperating with Lux Development to complete procedures related to the project, and is going to start the implementation;

Results of the proposed dialogue:

- Communication to Development Partners about the project being developed;

- Coordination of the needs for support from interested Development Partner for their consideration of pooling resources for enhanced effectiveness of the project;

Processing procedures for receiving project under current regulations; Proposed to include activities in the 2015 – 2016 Plan

Ministry of Finance (State Securities Commission + International Cooperation Department)

Lux Development

 

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Group III. Activities in support of implementation

  

Nhóm III. Các hoạt động nhằm đảm bảo tổ chức thực hiện

10

Developing and operating a website to support the operations of the Public Financial Partnership Group (PFPG)

- The information related to PFPG is posted and updated on MOF website at: http://www.mof.gov.vn/portal/page/portal/mof_vn/PFPG;

- Documents of PFPG are hosted, stored, posted and updated timely in the website;

Completed, the e-portal of PFPG has been operated since December 2014

Ministry of Finance (Financial Information and Statistics Department + International Cooperation Department)

Development Partners

11

Developing and obtaining approvals for the activity plan of PFPG and performance reports; reports on the follow-up of the conclusions/guidance from the High-level Partnership Dialogue Meetings;

- Activity plans of PFPG, conclusions/guidance from the High-level Partnership Dialogue Meetings being approved as the basis for implementation and review;

- Regular report (semi-annual/ annual) on the implementation of the plan, conclusions/guidance;

Regularly (semi-annually, annually)

Ministry of Finance (International Cooperation Department)

WB and Development Partners

12

Conducting a review and evaluation of the performance of PFPG.

- Evaluation report and recommendation for the strengthening of the performance of PFPG.

Every 2-3 years

Ministry of Finance (International Cooperation Department)

WB and Development Partners

13

Organizing High-level Partnership Dialogue Meetings, including: (i) agreeing on the meeting themes; (ii) the agenda; (iii) coordination in the preparation of contents; (iv) cooperation for logistic preparation.

- Detailed plan on the preparation of the Meetings;

- Well-prepared materials for the Meetings.

Regularly (every 6-8 months)

Ministry of Finance (International Cooperation Department)

WB


Public Finance Partnership Group Action Plan 2015 – 2016

No.

Activity description

Expected outputs and outcomes

Implementation time

Responsible Agencies

Participating Partners

Monitoring indicators

Group I. In-depth dialogue activities

1

Share/ provide information on some key issues of the revised State Budget Law;

- Provide information to the PFPG;

- Expected follow-up steps relating to the implementation of the State Budget Law

QII-QIII/2015

(after the promulgation of the new Law)

State Budget Department / related units

Related agencies/Local governments

Propose: EU / GIZ / WB

Feedbacks are recorded and contribution is made to the amendment of State Budget Law

2

Conduct the Public Expenditure Review (PER) covering the 2009 - 2012 period and updating some relevant important issues in the 2013 - 2015 period;

Hold a workshop introducing and discussing the Public Expenditure Review.

- Public Expenditure Review

- Expected next steps relating to findings and recommendations of PER; Some actions might be included in agenda of the High-level Partnership Dialogue Meetings (end of 2015 or early 2016).

On-going, expected to be completed end of 2015

Ministry of Finance (State Budget Department)

World Bank and other Development Partners;

Related Agencies: MPI, MOET, MOH, MOT, MOST, MARD, MOLISA, etc., and five provinces relating to this report.

The Public Expenditure Review (PER) covering the 2009 - 2012 period and updating some relevant important issues in the 2013 - 2015 period is completed and discussed with the PFPG;

3

Conduct dialogues on the implementation progress of some tax laws and duties relating to state budget revenues in accordance with the National Assembly’s resolutions (e.g. strengthening revenue management, revenue resource enhancement, drastic measures preventing revenue loss, transfer pricing, tax evasion; periodic disclosure of tax arrears owed by every provinces, businesses.

- Compiled opinions from dialogues in the Meeting

- Expected follow-up steps relating to the laws/scirculars/decrees of the amended Tax Law

QII/2015

General Department of Taxation / related units

:

JICA coordinates to develop issues to discuss at the High-level Meeting in May 2015

Update the implementation progress to the Partnership Group; at the same time, propose solutions to raise state budget revenues

4

Creating an enabling environment for business

 
 

4.1. Conference on measures to promote administrative procedure reform in taxation, customs to facilitate at the highest degree for businesses and taxpayers; reduce the tax filing hours.

+ Review tax policies, tax administrative procedures to propose measures promoting the administrative reform in taxation (review the entire policies for all taxes, focusing on those related to corporate income tax (CIT), value-added tax (VAT), invoices and tax refund; tax auditing, tax appeals);

+ Review tax administrative procedures to propose measures accelerating the administrative procedure reform, focusing on reviewing the entire administrative procedures to propose simplification options (including the development of an administrative procedure control process);

- Compiled opinions from dialogues and recommendations;

- Expected follow-up steps.

2015 - 2016

Ministry of Finance leads in coordination with ministries and provinces

General Department of Taxation, General Department of Customs, Tax Policy Department / Legal Department and related units

USAID has committed to support the implementation of proposed activities, which are the simplification of procedures and the development of an administrative procedure controlling process, contributing to the implementation of Resolution 19 issued by the Government requiring tax filing time to be reduced to the ASEAN 6’s average of 171 hours per year;

Continuing proposed partners: JICA, WB, IMF and South Korea

Propose solutions to shorten the tax filing time in accordance with regional and international practices

4.2. Strengthen advocacy, legal assistance on taxation for the business community and citizens to improve compliance in tax law enforcement.

+ Conduct consultation workshops with participation from the business community, organizations, associations, etc. to generate policy problems and gaps in practice;

- Consulting solutions to enhance legal assistance on taxation for the business community and citizens;

2015 - 2016

Businesses and people are more aware of tax law compliance

343. Review the implementation of Directive 24/CT-TTg dated August 5, 2014 of the Prime Minister on strengthening the administrative procedure reform in taxation, customs, reporting to the Prime Minister.

+ Review the implementation results of the Government’s Resolutions and Directives regarding the administrative procedure reform in taxation;

- Consolidate the dialogue on the implementation of Directive 24.

QIII/2015

Progress report of Directive 24 implementation

5

Effective implementation of economic restructuring, transformation of the growth model

 
 

5.1. Conduct conferences on main contents of the overall economic restructuring scheme and sectoral restructuring schemes towards the direction of sustainable development; expeditiously complete and submit to the competent authority to approve sectoral and provincial restructuring schemes by QII/2015.

- Compiled opinions from dialogues in Meetings;

- Expected next steps related to the overall economic restructuring scheme

QII/2015

Institute of Financial Strategy and Policy leads the report of all activities in section 45 (including 5.1)/ Corporate Finance Department, State Securities Commission, Banking and Financial Institution Department and related units

Ask for participation and coordination from Partners

Draft overall economic restructuring scheme and sectoral restructuring schemes with the consultation of Partner / related agencies

 

5.2. Introduce some amended decrees relating to the Law on management and use of state properties and supervision on the disclosure of SOE information...:

+ Specifically, consultation is made to complete policies and mechanisms on SOE management through the issuance of guidelines for synchronously implementing the Law on management and use of state capital; Enterprise Law (Amendment), and the Investment Law (Amendment); Regulations for monitoring, divesting and evaluating the performance of enterprises having state capital and of managers.

- Compiled opinions from dialogues in Meetings;

- Expected next steps related to information disclosure in SOEs.

QII/2015

Corporate Finance Department leads / Institute of Financial Strategy and Policy / Investment Department and related units

Proposed partners: WB/ ADB/ JICA/ USAID and interested partners

Discussion / dialogue to support the implementation of the Laws and bylaws

 

5.3. Conduct the dialogue (conferences/seminars) on the acceleration of SOE restructuring (Review of the five-year implemention of SOE restructuring 2011-2015), concentrating on the following topics:

+ Solutions to timely handle difficulties and obstacles; accelerate the restructuring of enterprises, particularly focusing on the divestment of capital invested in sectors outside the main business lines; promote communication, inspection and supervision during restructuring and implementation of the entrusted business tasks;

+ Strengthen the rearrangement and equitization of SOEs. Fulfill the SOE rearrangement and innovation plan in the 2014-2015 period.

- Compiled opinions from dialogues in Meetings;

- Expected next steps to accomplish the Government's Decision No. 929 of SOE restructuring, focusing on economic groups and general corporations.

QIII/2015

Corporate Finance Department and Institute of Financial Strategy and Policy lead / related units

Ask for participation and coordination from Partners

Proposed solutions to accelerate the restructuring progress, including the progress of SOE equitization

 

5.4. Discuss/Consult the development of guidelines for the Law on management and utilization of state capital invested in production and business of enterprises.

- Compiled opinions, recommendations, consultation to complete the documents guiding the Law implementation.

- Expected next steps

QI – QIII/2015

Ministry of Finance ( Corporate Finance Department leads/Legal Department coordinates)/relevant units/Ministry of Justice and relevant agencies

Proposed partners: WB/ ADB/ JICA and interested partners

Recommendation/consultation on guidelines to implement the Law on management and utilization of state capital invested in production and business of enterprises.

 

5.5. Introduce the progress of stock market restructuring against targeted orientations, sustainably develop the stock market to effectively attract investment and support the equitization process and bad debt resolution.

- Compiled opinions from dialogues in Meetings;

- Expected next steps related to stock market restructuring.

QII/2015

State Securities Commission leads activity 5.5/ Banking and Financial Institution Department / related units

Proposed partners: Luxembourg

Update on the implementation of stock market restructuring

6

Dialogue on the renovation of autonomy in public service units.

- Compiled opinions from dialogues;

- Expected follow-up steps;

2015 - 2016

Ministry of Finance (Department of Administrative sectors' Finance leads and coordinates with other agencies and provinces ).

Related Agencies: Ministry of Planning and Investment, Ministry of Education and Training, Ministry of Health, Ministry of Transport, Ministry of Science and Technology, Ministry of Agriculture and Rural Development, Ministry of Labour ..., and 5 provinces developing the report.

Proposed partners: WB and interested partners

Recommendations for the autonomy of public service units

7

Conduct workshops for discussion on institutional improvement and capacity building regarding regulations of financial market, and State financial instruments: consultation on the development of policies and mechanism for local governments to mobilize capital.

- A compilation of opinions and inputs and related legislation-making proposals and documents;

- Expected activities and projects in support of improvement of the legal framework on the financial market and other State financial instruments;

Continuing the 2014 – 2015 Plan, expected implementation in 2015-2016

Ministry of Finance (Banking and Financial Institution Department)

(1) WB is considering and seeking funds for implementation;

(2) Discuss with the World Bank to support the formation of national financial institution model financing long-term funds for infrastructure projects .

Identified TA need: completion of mechanisms and policies to mobilize funds for local governments

8

Introduce the Government’s orientation on the Medium-term Debt Management Program 2015-2017; the Prime Minister’s Decision on monitoring indicators of public debts and foreign debts of the country in 2014.

- Compiled opinions from dialogues;

- Expected activities, projects to support the implementation of the Government’s Debt Management Program and develop the monitoring indicators of public debts and foreign debts of the country in 2014

QIV/2015 - QI/2016

Department of Debt Management and External Finance / related proffesional units

Propose: ADB, WB, SECO

Recommendations of public debt management orientations, performance monitoring indicators

9

Consultation workshops on the amendment and supplement of some articles in the Decree 58/2012/ND-CP of the Government dated July 20, 2012 guiding details to implement some articles of the Securities Law and the Law amending, supplementing some articles of the Securities Law.

- Compiled opinions from dialogues

- Expected activities and projects supporting the implementation of some articles in the Decree No. 58.

QIV/2015

State Securities Commission / Banking and Financial Institution Department / related proffesional units

Ask for participation and coordination from Partners

Recommend to amend Decree 58

10

Introduce the revised Medium-term Action Plan (MTAP) 2015-2016 of the financial sector.

Report summary of the MTAP 2014 - 2015 progress and prioritized tasks in the MTAP 2015 - 2016

QI/2015

Ministry of Finance (Institute of Financial Strategy and Policy )

Ask for participation and coordination from Partners

Recommendations on measures to effectively implement the MTAP in 2015 - 2016 period

11

Workshop on evaluation of five – year implementation of the Financial Strategy from 2011 to 2015 and orientations in the 2016-2020 period

Evaluation report on the implementation and proposal of directions, possible solutions to deploy the tasks set out in the Financial Strategy by 2020

QIII/2015

Institute of Financial Strategy and Policy lead / related proffesional units

Ask for participation and coordination from Partners

Orientations to enhance the execution of tasks in the Financial Strategy by 2020

12

Organize the discussion between the Ministry of Finance and Partners considering TA needs to build methods that are used to develop objectives, indicators and measures for thrift practice and waste combat in a number of areas in order to improve efficiency in the use of state budget and public finance;

Rationale: State Budget and Public Finance has a significant role in stabilizing the macro financial environment, socio-economic development, national defense, public security, foreign affairs and effectiveness of state management in all areas of social life. The economic and efficient use of state budget and public finance is always interested and focused. Therefore, the research of methods that are used to develop objectives, indicators and measures for thrift practice and waste combat in a number of areas is necessary to propose solutions aiming at using economically and efficiently the state budget and public finance.

Consolidation of TA needs to build methods that are used to develop objectives, indicators and measures for thrift practice and waste combat in a number of areas in order to improve efficiency in the use of state budget and public finance;

2015 – 2016

MOF (Legal Department) leads/ related units

Ask for participation and coordination from Partners

Propose methods that are used to develop indicators for thrift practice and waste combat in order to improve efficiency in the use of state budget and public finance;

Group II. Activities on coordination and formulation of projects in the financial sector

13

Introduce the identification and development of the Public Financial Management Capacity Building Program (Technical Assistance, Analytical and Advisory Assistance (AAA) Program in PFM): basic contents; planned results and resources; and organizational arrangements.

The aim of AAA Program is supporting four main priorities in public financial management, including: (i) Improving the creation of fiscal information, (ii) Improving the control of budget execution, (iii) Improving the linkage between planning and budgeting, and (iv) Fiscal stability, fiscal risk identification and management.

The new aspect in the Program is the result-based implementation and monitoring (activities are determined during the Program preparation) with the goal to improve of the currently low PEFA score in public financial management of Vietnam.

- Communication to DPs about the project being developed;

- Proposal to DPs for their consideration of pooling resources for enhanced effectiveness of the project;

QII/2015

(Continuing the Plan 2014)

MOF (Ministry Office, International Cooperation Department)

WB, SECO

(The program is openly designed and the participation from partners is encouraged)

The AAA Program gains high consensus from Partners, and much attention and coordination have been given to program implementation

14

Introduce supports for strengthening securities market in Vietnam, training and capacity building with tentatively 03 components: (i) strengthening of capacity in the management, the legal framework and regulation of securities market; (ii) strengthening capacity and training in finance; (iii) improving quality and transactions in the securities market.

- Communication to DPs about the project being developed;

- Coordination of the needs for support from interested DPs for their consideration of pooling resources for enhanced effectiveness of the project;

QIII/2015

(Continuing the Plan 2014)

Ministry of Finance (State Securities Commission + International Cooperation Department)

Lux Development

The program has received attention of the Partnership Group.

 

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Group III. Activities in support of implementation

 

Update the website supporting operations of the Public Financial Partnership Group (PFPG)

- A website in the e-portal of the Ministry of Finance;

- Documents of PFPG are hosted, stored, posted and updated timely in the website;

2015 - 2016

Ministry of Finance (Financial Information and Statistics Department + International Cooperation Department)

Ask for participation and coordination from Partners

 
 

Develop and obtain approvals for the PFPG Plan and performance reports; reports on the follow-up of the conclusions/guidance from High-level Dialogue Meetings;

- Action plans of PFPG, conclusions/guidance from the High-level Partnership Dialogue Meetings being approved as the basis for implementation and review;

- Regular report (semi-annual/ annual) on the implementation of the plan, conclusions/guidance;

Regularly (semi-annually, annually)

Ministry of Finance (International Cooperation Department)

Ask for participation and coordination from Partners

 
 

Organize High-level Dialogue Meetings, including: (i) agreeing on the meeting themes; (ii) the agenda; (iii) coordination in the preparation of contents; (iv) cooperation for logistic preparation.

- Detailed plan on the preparation of the Meetings;

- Well-prepared materials for the Meetings.

Regularly (every 6-8 months)

Ministry of Finance (International Cooperation Department)

Ask for participation and coordination from Partners

 
 

Conduct a review of the PFPG performance.

- Evaluation report and recommendation for the strengthening of PFPG performance.

QIV/2016

Ministry of Finance (International Cooperation Department)

Ask for participation and coordination from Partners

 

1 The solutions are merely initial proposals and the Group will continue the discussion in the Preparatory Meeting on April 24, 2015

2 The survey is expected to include two main parts:

Part 1 –Proposal of list of high-level dialogue themes pursuant to the Government’s Resolution on tasks, main solution for direction of implementation of Socio-economic development plan and annual state budget estimate (Resolution No. 01/NQ-CP); Action Plan of the Ministry of Finance for implementation of the Resolution No. 01/NQ-CP; Finance Strategy by 2020; Mid-term action plan during the period of 2014-2016 for implementing Finance Strategy by 2020, units/ international partners will tick their interested themes.

Part 2 – Proposal of list of rotating chairing international partners, units/international partners will tick a suitable box to reflect the participation/non-participation in the co-chairing.

3 The strengthening of administrative procedure reform in taxation and customs is an important topic and should be prioritized in the conference agenda in order to: (1) share information, create consensus and support from Development Partners/International Organizations/Donors to policies of Vietnam; (2) attract participation and support from the Development Partners/Donors to the implementation of Resolution 19/NQ-CP of the Government.

4 The promotion of SOE restructuring, focusing on the equitisation and divestment of state capital in businesses, and timely completion of the SOE reorganization and reform plan in the period 2014-2015 should be put in the center in practice. In addition, MOF is proposing Development Partners/International Donors to continue assisting the SOE reform and restructuring through new projects such as the SOE reform and corporate governance support program (Project 2 and 3) funded by ADB, Public financial management AAA Program funded by WB and SECO, among others, for the reform and restructuring of SOEs and the Government’s Resolution No. 01/NQ-CP.