Press Release: On the 02/2020 performance and 03/2020 workplan of the Finance Ministry

Press Release: On the 02/2020 performance and 03/2020 workplan of the Finance Ministry 05/03/2020 05:45:00 103

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on the 02/2020 performance and 03/2020 workplan of the Finance Ministry

I. REVIEW ON THE 02/2020 WORK PERFORMANCE

1Completion of financial mechanisms and policies.

In 02/2019, the Ministry of Finance was responsible for drafting 01 Scheme and 08 Circulars. As from 28/02/2020, the Ministry of Finance has drafted, completed 01 scheme and issued 03 circulars.

2. The situation of implementing the State budget estimates and the management and administration of state budget revenues and expenditures

2.1 State budget revenues and administration of state budget revenues

The total state budget revenue in February was estimated at 95.1 trillion dongs, the accumulated revenue in the first 2 months is 276.7 trillion dongs, equaling 18.3% of the estimate, up 9.3% over the same period in 2019, of which :

- Domestic revenue: Revenue in February is estimated at VND 75.6 trillion. The accumulation of 2 months reached 233.2 trillion VND, equaling 18.4% of the estimate, up 12.8% over the same period in 2019.

- Revenue from crude oil:  estimated at VND 3.9 trillion in February, that of 2 months was VND 11.2 trillion, equal to 31.9% of the estimate, up 44.4% over the same period last year of 2019. Due to the impact of the Covid-19 epidemic, the demand for crude oil plummeted, the price of crude oil on the world market was low (around USD 50 / barrel). However, due to the delay in payment, the average oil price remained at 68 USD/ barrel, 8 USD higher than the estimated price; production was estimated at 1.8 million tons, equal to 19.9% ​​of the plan.

- Budget revenue from import and export activities: In February, the estimated revenue was VND 22.2 trillion, the accumulated revenue in the two months was VND 48.2 trillion, equaling 14.3% of the estimate, down 10.8% compared to the same period in 2019. Due to the impact of the Covid-19 epidemic, the growth momentum of import-export turnover in the first 2 months of the year slowed down. The state budget revenue balance reached about 32.2 trillion dongs, equaling 15.5% of the estimate, down 15.7% over the same period in 2019. This was the main reason for the total growth of state budget revenue in the first 2 months of the year, lower than the same period in 2019 which increased by 22.5%

2.2. The State Budget expenditure and the administration of State budget expenditure

The total state budget expenditure in February was estimated at 118.7 trillion dongs, the accumulated expenditure in the first two months was about 220.6 trillion dongs, equaling 12.6% of the estimate, up 11.5% over the same period in 2019; in which: expenditure on development investment reached VND 34.7 trillion, equaling 7.4% of the estimate, up 114.2% over the same period in 2019; interest payment was VND 25.5 trillion, equal to 21.6% of the estimate, up 3.9% over the same period in 2019; regular expenditure was approximately VND 160 trillion, equaling 15.1% of the estimate, an increase of 2.1% compared to the same period in 2019, ensuring the compliance with the estimate and the progress of the task.

Regarding development investment expenditure, the total capital plan in 2020 assigned by the Prime Minister is 470.6 trillion dong; As of February 28, 2020, 51/53 (96.2%) ministries, central agencies and 100% of localities sent reports on allocation of capital plans assigned to the Ministry of Finance, with the allocated capital reaching 77.3% of the plan assigned to the central budget and 98.3% of the plan assigned to the locality. The disbursement progress for 2 months was still slow compared to the requirement (over 10% of the estimate), but has made progress compared to the same period in 2019 (2 times higher than the same period in both schedule and implementation rate).

In order to prevent and control Covid-19, both the central and local budgets have increased spending on health activities, ensuring sanitation and activities supporting the control, prevention and suppression of inflammatory epidemics, acute respiratory disease caused by Covid-19 virus. The central budget had VND 517.7 billion of contingency reserves in 2020 to supplement the Ministry of Health to implement epidemic prevention and control activities (Decision No. 217/QD-TTg dated February 7, 2020). Besides, the Ministry of Finance was granted 12.76 thousand tons of national reserves to overcome the consequences of natural disasters, aid, and food aid for the people in early 2020.

By the end of February 29, 2020, the State Treasury system has implemented expenditure control of VND 150,600 billion for regular expenditures (reaching 13.5% of the estimate) and VND 32,051.2 billion for development investment (reaching 7, 1% of the plan approved by the National Assembly and the Government in 2020 to control expenditures through the State Treasury). Through the control of state budget spending, the State Treasury has discovered 203 expenditures not yet enough procedures as prescribed, required additional necessary procedures and refused to pay the amount of VND 1.1 billion for recurrent expenditure and VND 0.7 billion for development investment.

2. 3. The state budget balance and capital mobilization

Balance of central budget and local budgets was guaranteed. In the first 2 months, the Ministry of Finance issued VND 32.35 billion of Government bonds, with an average term of 16.08 years and an average interest rate of 3.22% per annum.

3. The implementation of a number of key tasks

3. 1. Public asset management

The Minister of Finance issued Decision No. 209 / QD-BTC dated 02/18/2020 on an action plan of the Ministry of Finance to implement Directive No. 32 /CT-TTg dated 10/12/2019 of the Prime Minister on promoting the implementation of the Law on Management and Use of Public Property and the documents guiding the implementation of the Law.

3. 2. Corporate finance management, equitization, divestment of state-owned enterprises

- Equitization: In the first 02 months of 2020, the Ministry of Finance received the equitization report of 03 public agencies of Hau Giang province (approved equitization plan in 2019).

- Divestment: In the first 2 months of 2020, the Ministry of Finance received a report on divestment of 04 enterprises with a total value of VND 79 billion, earning VND 220.6 billion.

- Revenue from equitisation, divestment: In the first 2 months of 2020, the revenue from equitization, divestment to the Enterprise Arrangement and Development Fund was VND 227 billion.

3. 3. Management of price and market

- The situation of market prices in January 2020 has seen new developments due to the effects of price increases during the New Year and the lunar new year in the same month. At the same time, due to the effects of Covid-19 epidemic, the prices of some items such as masks, antiseptic water…on the market have complicated developments, many places have unreasonable price increases. However, in February 2020, the market price is being kept stable, some items tend to decrease compared to January 2020 due to the time after Tet and the drastic direction of the Government from central to local levels to stabilize market prices, especially in the context of the impact of the disease on the price level. 

- Regarding the management of petrol and oil prices: The Ministry of Finance has worked with the Ministry of Industry and Trade to promulgate 2 documents to regulate petrol and oil prices in February 2020.

3.4. Management of financial market and services

- For stock market: As of March 2, 2020, the VNIndex reached 884.43 points, down 4.8% compared to the previous month and down 8% compared to the end of 2019; HNX-Index reached 110.67 points, up 1.2% over the previous month and up 7.9% compared to the end of 2019.

- For insurance market: By the end of February 2020, the total insurance premium revenue was estimated at VND 22,220 billion, up 10.57% over the same period in 2019; The total value of assets is estimated at VND 466,535 billion, up 17.10% over the same period in 2019; reinvestment in the economy was VND 423,146 billion, up 16.81% over the same period in 2019.

3. 5. International cooperation

The Ministry of Finance in February 2020 carried out a number of activities as follows: Chairing and working with a delegation of Macroeconomic AMRO experts; preparing for ASEAN Finance Ministers Meeting; attending the ASEAN Working Group Meetings in Hanoi. ..

3. 6. Management external finance and public debt

- As of February 20, 2020, an agreement has been signed on foreign loans of the Government with the World Bank worth about 80 million USD.

- In February 2020, the Government has withdrawn foreign loans of USD 69 million, of which approximately US $ 53 million has been allocated and USD16 million re-lent. In the first 2 months of 2020, the disbursement of ODA loans and foreign preferential loans was about 246 million USD, equivalent to about 5,695 billion VND, of which USD 179 million was allocated, about 67 million VND was re-lent loans...

3.7. State reserve management

In the first 2 months of 2020, the General Department of State Reserve has assigned the regional State Reserves to export 50,897 tons of rice; in which: Support for Lunar New Year was 6,460 tons; for flood disaster was 1,294 tons; for forest projects was 2,665 tons; for the second semester of 2019-2020 school year was 38, 126 tons.

3. 8. Inspection, combat smuggling, commercial fraud

In the first 2 months of 2020, the Ministry of Finance Inspectorate and has proposed financial settlement of VND 10,376,041 million; the amount collected and paid to the state budget 1,020,351 million.

The General Department of Customs continued to organize the implementation of specialized themes and plans to combat smuggling in the following categories: Alcohol, drugs, precursors and addictive substances, minerals, precious metals, tobacco ... In particular, in the context where Covid-19 epidemic had complicated developments and rapid spread, due to the high demand for medical masks, customs of provinces and cities such as Lang Son, Lao Cai, Quang Ninh, Cao Bang had arrested many cases of smuggling medical masks of unknown origin, without invoices.

In 2/2020, customs force chaired and coordinated in detecting and settling 1,517 violations of customs law; estimated value of infringing goods was VND 413,908 million. The amount collected and paid to the state budget was 29,178 million dong, the customs office prosecuted 02 cases, transferred the other agency to 21 cases.

3.9. Implementation of the Anti-epidemic Covid-19 of the Finance Ministry

The MOF has issued the Directive No. 01/CT-BTC dated 01/28/2020 on strengthening prevention and control of epidemics Covid-19; promulgating documents guiding the financial policies on the prevention and control of Covid-19 epidemic; Promulgating Decision No. 155 / QD-BTC of February 7, 2020 on the List of goods eligible for import tax exemption for the prevention and combat of acute respiratory infections caused by Corona virus;  Submitting to the Prime Minister Report No.18/ BC-BTC of February 4, 2020 on assessing the impact of epidemics (including: impacts on state budget revenues, impacts on insurance markets and markets stock);  actively coordinate with the Ministry of Health, the Ministry of Foreign Affairs to balance and allocate funding for prevention, humanitarian assistance for Chinese people, bringing citizens Vietnam from epidemic zones to return home under the direction of the Prime Minister.

Thus, up to now, the Ministry of Finance has actively carried out all the tasks under the Ministry of Finance's responsibility in the prevention and control of Covid-19, meeting requirements of content and time.

 3.10. Administrative reform and control of administrative procedures

- In the first 2 months of 2020, the Ministry of Finance issued 01 Decision, announcing the abolition of 05 administrative procedures (Decision No.29/QD-BTC dated January 7, 2020). Up to now, the total administrative procedures under the management of the Ministry of Finance were 946 procedures, of which online is 101 procedures at level 1. 295 procedures at level 2, 215 procedures at level 3 and is 335 procedures at level 4, reaching 35.4%, exceeding the minimum level set by the Government in Resolution No. 17/ NQ-CP of March 7, 2019 of the Government which set out 30% public service at level 4. 

- Regarding the implementation of the one-door mechanism, in the first 2 months of 2020, the one-door Section at the Ministry of Finance has received 159 dossiers of administrative procedures in 04 fields (insurance, accounting - auditing, information technology and price), returning results to individuals and organizations 67 records, which are processed within 92 records, no overdue records.

II. MAJOR WORKPLANS IN March 2019

1. Mechanisms and policies

Under the program, in March 2020, the Ministry of Finance to develop and submit 09 schemes of and 18 Circulars to the Government and the Prime Minister.

2. Some key tasks in March 20 20

2. 1. Regarding the implementation of State budget estimates and the management and administration of state budget revenues and expenditures

- Continue to monitor the Central Budget to ensure funding for implementation of expenditure according to the approved estimates and arising amounts; Supplementary assessment on the implementation of the 2019 State budget estimates of ministries, central agencies and of 2020 tasks; coordinating with other relevant agencies in monitoring and assessing the impact of Covid epidemic - 19 effects on state budget revenue and expenditure in 2020.

- Periodically analyzing and forecasting the State budget revenue and the central budget in 2020, implementing solutions to complete the task of State budget collection in 2020 nationwide.

- Accelerate inspection after customs clearance, focus on evaluations of risks for enterprises with high risks, signs of doubt, to avoid losses in the state budget, handle problems and tax debt recovery.

- Develop tax policies to support businesses, organizations and individuals affected by the Covid epidemic - 19.

2. 2. The management of public properties

Coordinate with the Government Office to complete the procedures and submit to the Prime Minister for signing and issuing the amended and supplemented Decree the Government's Decree No. 167/2017/ND-CP of December 31, 2017, on rearranging and handling public properties; organizing a workshop on the draft decree regulating the management, use and exploitation of clean water supply infrastructure.

2. 3. Management of budget, capital mobilization and public debt

- Organize the administration of funds, ensure the payment needs of the State budget and units having transactions with the State Treasury

- Coordinate with the Government to finalize and submit to the Prime Minister for approval of the 3-year public debt management program of 2020-2022 and the plan for public debt borrowing and repayment in 2020; submit to the Government for approval the Government of guarantee limit and the Government's foreign-relending limit of 2020.

2.4. Corporate finance management and SOE equitization

Continue to improve the institutional, legal framework on the management and operation of state-owned enterprises on equitization, divestment and restructuring of enterprises under the Government and Prime Minister’s direction and assignment in Resolution No. 97 / NQ-CP dated October 2, 2017, Resolution No.01/ NQ-CP and Resolution No. 02 / NQ-CP dated January 1, 2020, Resolution No.73 / NQ-CP dated September 23, 2019 and Directive No.01/CT-TTg dated January 5, 2019.

2. 5. Management of prices, market stabilization

Proactively monitor changes in world and domestic petroleum prices, coordinate with the Ministry of Industry and Trade in regulating petrol prices in the operating periods in March 2020; giving comments on mechanisms and policies on prices and price appraisal at the proposal of the ministries, localities, making reports to assess the impact of the Covid epidemic - 19 on market prices and solutions to ensure the implementation of inflation control objectives.

2. 6. Management of financial market and financial services

- Develop the legal documents detailing the implementation of the Securities Law 2019 as planned.

- Coordinate with the Ministry of Justice in appraising 3 projects on the central and local cooperative development assistance fund; on the regulation on credit guarantee for small and medium-sized enterprises borrowing commercial bank loans; on corporate bond issuance; promulgate a circular amending and supplementing the financial regime applicable to Vietnam deposit insurance.

- Develop the amended Insurance Business Law 2020, update the information on impact assessment of Covid-19 disease on the insurance market, direct the Insurance Association and insurance enterprises to participate in the donation programs related to the prevention and control of Covid-19.

2. 7. International cooperation

The integration and financial cooperation of the Ministry of Finance in March 2020 is expected to carry out a number of activities as follows: Establishing and implementing activities of the WTO Trade Policy Review Working Group; issuing preferential export tariff, preferential import tariff of Vietnam in particular to implement the Agreement EVFTA; Prepare scenario for the ASEAN Finance Ministers and Central Bank Governors’ Meeting,  ASEAN +3 Deputy Minister of Finance and Deputy Central Bank Governors Meeting. ..

2.8. Inspection and examination

Inspectorate of the Ministry carries out survey and deploy inspection plans approved for 2020.

General Department of Customs strengthens control and fight against smuggling and trade fraud, and illegal transportation of goods across the border...

2.9. MOF Direction and implementation of Anti Covid-19 epidemic

The Ministry of Finance continues to carry out the tasks in accordance with the guidance of the Party Central Committee, the Government and the Prime Minister on the prevention and control of Covid-19 disease; closely coordinate with ministries and localities in ensuring sufficient funding for epidemic prevention and control.

 

 Above is a summary of information about the implementation of financial tasks - the state budget in February and tentative workplan of the Ministry of Finance in March 2020. The Ministry of Finance requests press agencies to coordinate in communications. /.

Recipients:

- Central Propaganda Committee;       

- Ministry of Information

and Communications;       

- Government Office ;

- Ministry leaders ;

- Press agencies ;  

- Government Information Center Portal ;              

- Portal of the Ministry of Finance ;

- Archive: Registry, Office.

 

 

              

 

Chief of Ministerial Office

(Signed)

Tran Quan