On the implementation of the working agenda for March 2020 and the first quarter of 2020, the plan to implement the working agenda of April 2020 and the second quarter of 2020 of the Ministry of Finance
I. EVALUATION OF THE SITUATION OF IMPLEMENTING THE WORKING AGENDA IN MARCH 2020 AND THE FIRST QUARTER OF 2020
1. Formulating and improving financial mechanisms and policies
Regarding draft legal documents submitted to the Government and the Prime Minister: As of 27 March 2020, the Ministry of Finance has 05 proposed legal documents submitted to the Government and 06 legal documents in the process of drafting and finalizing.
Regarding the agenda of implementing circular drafting in March: As of 27 March 2020, the Ministry of Finance has issued under its authority 06 Circulars. In the first quarter of 2020, the Ministry of Finance issued under its authority 17 Circulars in total.
2. The situation of implementing the State budget plan and the management and administration of state budget revenues and expenditures
2.1. State budget revenues and the management and administration of state budget revenues
The total state budget revenue in March is estimated at VND 106.4 trillion. The first quarter’s cumulative revenue reached VND 391 trillion, equaling 25.9% of the plan, up 1.8% compared to the same period in 2019, of which:
a) Domestic revenue: March revenue is estimated at VND 85.2 trillion. The first quarter’s cumulative revenue reached VND 324.7 trillion, equaling 25.7% of the estimate, up 3.6% compared to the same period in 2019 (the same period in 2019 reached 26.7% of the plan, up 13%).
It is estimated that domestic revenue collection in 52 out of 63 localities in the country was in line with the plan (over 23%), of which 45 localities collected over 26% of the plan; compared to the same period of last year, 46 out of 63 localities collected higher revenues while 17 localities collected lower revenues.
Tax authorities have focused on implementing revenue collection right from the beginning of the year, by reviewing and ascertaining subjects and sources of revenue collection in the area, reviewing tax declarations, tax finalization of enterprises, to collect revenues and contribute to the state budget in an appropriate, sufficient and timely manner.
b) Revenues from crude oil: March revenue is estimated at VND 4.1 trillion; Cumulative revenue in the first quarter reached approximately VND 14.6 trillion, equaling 41.4% of the estimate, up 7.3% compared to the same period in 2019. Recently, world crude oil prices have dropped sharply; at certain moments, prices went down to 25-27 USD/barrel. Due to lead time in payment, the average actual price of oil from Vietnam since the beginning of the year has remained at 65 USD/barrel, 5 USD/barrel higher than the estimated price; the output is estimated at 2.8 million tons, equal to 26.8% of the plan.
c) Budget revenues from exports/imports: March revenue is estimated at VND 26 trillion; cumulative revenue in the first quarter reached VND 77 trillion, equal to 22.8% of the estimate, down 8.8% compared to the same period in 2019.
Total import and export turnover of the first quarter was estimated at USD 116.34 billion, down 0.7% compared to the same period in 2019, of which import turnover of some items with large revenue contribution decreased, such as CBU cars (decreased by 43.3%), steel and iron (down by 16%), petroleum products (down by 17.6%), machinery, equipment, tools and spare parts (down by 8.6%). This has led to lower revenue collection in this regard.
In the first 3 months of the year, the General Department of Viet Nam Customs (GDVC) has implemented strong measures to ensure the collection according to the assigned plan. GDVC has issued Directive No. 1040/CT-TCHQ dated 21 February 2020 on the synchronous and drastic implementation of solutions to facilitate trade and combat revenue losses in implementing the state budget collection task in 2020. At the same time, GDVC has been proactively enhancing post-clearance inspection; closely coordinating with the relevant authorities to fight against smuggling, trade frauds and fake goods; actively handling and recovering tax arrears. After completing value-added tax reimbursement according to the regime (VND 25.6 trillion), the state budget revenue balance reached about VND 51.4 trillion, equal to 24.7% of the plan, down 9.3% compared to the same period in 2019.
2.2. State budget spending and management and administration of state budget spending
The total state budget expenditure in March was estimated at VND 122.5 trillion. Cumulative expenditure in the first quarter reached VND 343.1 trillion, equaling 19.6% of the estimate, up 8.7% compared to the same period in 2019, of which: expenditure on development investment reached VND 61.6 trillion, equaling 13.1% of the estimate, up 31.8%; expenditure on interest payment was VND 33.8 trillion, equal to 28.6% of the estimate, up 9.9%; regular expenditure reached nearly VND 246.6 trillion, equaling 23.3% of the estimate, up 4% compared to the same period in 2019.
As of 15 March 2020, the State Treasury system has implemented review of an estimated VND 186,757 billion, equaling 16.7% of the state budget's recurrent expenditure plan for 2020 (through the State Treasury) (excluding debt payment, aid, expenditures for supplementing financial reserve funds, reserves). Through the control and review of State budget spending, the State Treasury has discovered roughly 1,015 expenditures not yet fulfilling procedures in accordance with regulations; requested additional necessary procedures and refused payment of VND 1.5 billion (in connection with such expenditures).
In general, the budget spending tasks in March and the first quarter have been executed, according to the annual plan and progress of functional tasks of budget spending units, to accomplish the social welfare and social security tasks. To prevent and contain Covid-19 pandemic, the central and local budgets increased spending on health-related activities, ensuring sanitation and supporting activities for the prevention and containment of Covid-19 pandemic. The Ministry of Finance has coordinated with other Ministries to submit a proposal to the Prime Minister for consideration. The proposal was a supplemental package VND 2.7 trillion, sourced from state budget reserves of 2020, to provide additional funding for the Ministry of Health, the Ministry of National Defense and the Ministry of Public Security to implement Covid-19 pandemic prevention and containment activities and to formulate a number of specific regimes and policies for the prevention of Covid-19 pandemic.
Regarding expenditure on development investment, the total capital expenditure plan in 2020 as assigned by the Prime Minister is VND 470.6 trillion. By the end of March 2020, 51 out of 53 (96.2%) Ministries, central agencies and 63 out of 63 localities have sent to the Ministry of Finance their reports on allocation of assigned capital plans; the allocated capital equaled 79.5% of the plan assigned to the central government and 100% of the plan assigned to the local governments. There were some improvements compared to the same period in 2019 (better progress and implementation level), however, the disbursement progress in the first quarter is still slow.
As of 15 March 2020, cumulative disbursed capital for investment under the 2020 plan is VND 39,839.9 billion, equal to 8.86% of the State Treasury expenditure control plan assigned by the National Assembly and the Government. Specifically: (i) Disbursement of domestic capital was VND 37,818 billion, equal to 9.6% of the Treasury-controlled expenditure plan and 9.2% of the plan assigned by the National Assembly and the Government; (ii) Foreign capital controlled and verified by the State Treasury is VND 2,021.9 billion, equal to 3.6% of the Treasury-controlled expenditure plan and 3.4% of the plan assigned by the National Assembly and the Government.
In addition, the State Treasury system also controls the payment of capital expenditure of the ministries, sectors and localities allocated outside the plan assigned by the National Assembly and the Government. The mentioned capital was VND 759.3 billion, equal to 9.1% of the plan (the allocation plan for ministries, sectors and localities is VND 8,306.8 billion). Through controlling payment of capital for investment, the State Treasury system refused payment of VND 4.7 billion.
2.3. Regarding the state budget balance and capital mobilization
The balance of central budget and local budgets is guaranteed. In the first 3 months of the year, the Ministry of Finance issued VND 41.8 trillion of Government bonds according to the 2020 plan to repay the due bonds and to issue debts with Vietnam Social Security according to the Resolution of the National Assembly (VND 9,090 billion), with an average term of 16.43 years, an average interest rate of 3.09%/year (the average interest in 2019 was 4.51%/year).
3. The situation and results of implementing a number of key tasks
3.1. Public asset management
In the first 3 months of the year, the Ministry of Finance continued to request ministries, sectors and localities to reorganize and properly handle housing and land establishments of enterprises on the equitized list which are under their respective authority as regulated by the laws.
In addition, the Ministry of Finance has submitted to the Government the draft Decree on the amendment and additions to a number of articles of the Government's Decree No. 167/2017/NĐ-CP dated 31 December 2017 on rearrangement and dealing with public properties; the Ministry of Finance is also drafting a decree on the management, use and exploitation of infrastructure assets to supply clean water for residential areas; the Minister of Finance has promulgated Decision No. 209/QĐ-BTC dated February 18, 2019 on the Action Plan for the implementation of Directive No. 32/CT-TTg of the Prime Minister dated 10 December 2019 on promoting the implementation and enforcement of the Law on Management and Use of Public Properties.
3.2. Corporate finance management, equitization, divestment of state-owned enterprises
In the first 3 months of the year, divestments in 4 state-owned enterprises on the list in the Prime Minister's Decision No. 1232/QĐ-TTg dated 17 August 2017 with a book value of VND 79 billion resulted in collection of VND 220.6 billion; (divestments) in conglomerates, corporate groups, state-owned enterprises under the Restructuring Scheme with a book value of VND 318 billion resulted in collection of VND 551 billion for the State budget.
3.3. Price management, market management
Due to the effects of Covid-19 pandemic, there were a number of areas witnessing rising prices and local shortages of fresh foods (meats, eggs, vegetables and fruits) and dried foods (food, cooking oil, fish sauce, salt, ...). Some anti-pandemic supportive items (medical masks, antiseptic hand sanitizers) saw significant increases in prices. In this situation, the Ministry of Finance has actively coordinated with other ministries and sectors to promptly propose and recommend solutions to manage supply and demand, stabilize consumer sentiments and control market prices. At the same time, the Ministry of Finance has cooperated closely with the Ministry of Industry and Trade to make 05 adjustments to reduce domestic gasoline prices in line with world petroleum price movements. With the implemented solutions, the prices of domestic goods and services were kept stable and were without big changes.
3.4. On handling bad debts of credit institutions
The Ministry of Finance continues to implement a scheme to build a bad debt trading market to support and speed up the process of handling bad debts, striving to bring the non-performing loan ratio of credit institutions to below 2%; closely coordinate with the State Bank of Viet Nam and relevant ministries and sectors in solving problems and difficulties in the implementation of Resolution No. 42/2017/QH14 dated 21 June 2017 on piloting the handling of bad debts of credit institutions and Decision 1058/QĐ/TTg dated 19 July 2017 approving the Project "Restructuring the system of credit institutions associated with dealing with bad debts in the 2016-2020 period". In addition, the Ministry of Finance is working with the State Bank of Viet Nam to draft the Prime Minister's Decision on approving the national comprehensive financial strategy by 2025, with orientations to 2030; the Ministry of Finance of Viet Nam is submitting a proposal to the Government and the National Assembly as regards supplemental financing for Viet Nam Bank for Agriculture and Rural Development (Agribank) and submitting a proposal to the Prime Minister regarding the investment of state capital in Viet Nam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) and Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank) in accordance with procedures regulated by the laws.
3.5. Management of financial market and financial services
- Regarding the stock market: In March, the stock market witnessed many strong declines, due to unpredictable movements of Covid-19 pandemic and impacts of world financial and commodity markets. As of 25 March 2020, the market capitalization is estimated at VND 3,090 trillion, down 24% compared to February, down 29.5% compared to the end of 2019, equivalent to 51.2% of GDP. In 3 months, foreign investors net sold VND 9,567 billion worth of shares, fund certificates and VND 3,774 billion of bonds.
The Ministry of Finance continues to focus on researching solutions to diversify bond products and transaction options; at the same time, to formulate and promulgate corporate bond regulations and stipulations in order to encourage the listing of bonds and build a corporate bond portal. The Ministry of Finance is also actively drafting and elaborating in order to improve the system of legal documents providing guidelines on the Law on Securities; implementing the scheme of establishing Viet Nam Stock Exchange according to the schedule and model approved in the Prime Minister's Decision No. 32/QĐ-TTg of 7 January 2019. The Ministry of Finance is strengthening inspection and supervision of capital mobilization activities and the use of mobilized funding in the securities market, continuing to detect and promptly handle violations.
- Regarding the insurance market: The total value of insurance assets in March 2020 reached VND 482.2 trillion, up 20.5% compared to the same period in 2019; reinvestment into to the economy was estimated at VND 398.5 trillion, up 22.8%; total equity reached VND 105.7 trillion, up 28.2%; total insurance premium revenue reached VND 37.2 trillion, up 12.2%; insurance benefit payment was VND 11.3 trillion, up by 25.7%. Total insurance premiums arranged through insurance brokers in the first 3 months of 2020 is estimated at VND 2,357 billion (down 2% compared to the same period last year), of which insurance premiums arranged at original cost are estimated at VND 1,605 billion (down 4,2%), reinsurance fee is estimated at VND 752 billion (up by 2.8%).
3.6. International cooperation
The Ministry of Finance has executed a number of financial integration and cooperation activities in the first quarter of 2020 such as: Preparing to set up a Decree-drafting Group to promulgate special preferential export/import tariff nomenclature of Viet Nam to implement EVFTA Agreement; preparing for ASEAN Finance Ministers Meeting and related meetings; prepare a report on the implementation of ODA programs and projects in 2019...
3.7. Management of public debt and external finance
In the first 3 months of 2020 (as of 20 March 2020), the Government has signed a foreign loan agreement with the World Bank which is worth USD 80 million.
In March 2020, the Government drew about USD 92 million of foreign loans, of which about USD 75 million will be allocated and around USD 18 million will be for on-lending. As regards cumulative amounts of the first 3 months of 2020, the disbursement of ODA loans and foreign concessional loans is about USD 424 million, equivalent to about VND 9,834 billion, of which approximately USD 335 million is allocated and USD 88 million is for on-lending.
The Government debt payment in March 2020 (as of 23 March 2020) was about VND 25,588 billion, of which the domestic debt payment was about VND 17,678 billion, the foreign debt payment was about VND 7,911 billion. Accumulated in the first 3 months (as of 20 March 2020), the total debt repayment of the Government is about VND 112,769 billion (equivalent to 31% of the whole year plan), of which the domestic debt payment was about VND 79,899 billion and the foreign debt payment was about VND 32,869 billion.
3.8. Management of state reserves
- Receipt and delivery of food: In compliance with the Prime Minister's decision, in the first 3 months, the Ministry of Finance delivered 51,014 tons of rice from national reserve, of which 12,760 tons of rice for overcoming the consequences of natural disaster, aid and famine relief for people on the occasion of transferring the first crop of 2020; received 4,691 tons/9,500 tons of paddy (reaching 49% of the plan).
- Receipt and delivery of materials and equipment of national reserve: the Ministry of Finance approved the contractor selection result of 150,000 pieces of life jackets, 50 sets of water pumps; issued the Decision No. 96/QD-TCDT dated 06/3/2020 on assigning the Regional Departments of State Reserves to deliver to the National Committee for Disaster Response and Search and Rescue for completing until 31 March 2020, including: 78 sets of all kinds of high-speed canoes; 103 sets of water pumps; 46 sets of 30KVA-generators; 35 sets of concrete drilling machines (worth VND 129 billion).
3.9. Inspection, examination, prevention of smuggling, trade fraud
In the first 3 months of 2020, Department of Finance Inspectorate and Departments under the Ministry specialized in inspection carried out the plan of inspection and examination. Accordingly, Ministry of Finance proposed financial settlement of VND 11,585,022 million; the amount remitted to the state budget was VND 1,330,031 million.
The inspection and examination for enterprises of the Tax system and the prevention of smuggling and trade fraud of the Customs sector carried out strictly and effectively. Specifically:
- The inspection and examination for enterprises of the entire tax system: The amount of tax found in violation was VND 172.6 million because the deductible input VAT determined by the tax authority was not in accordance with the regulations. The number of violating tax officers detected through inspection were 10 persons; of which 01 person was administratively handled with the form of self-criticism and 09 people have been considered for other forms of punishment.
- Prevention of smuggling and trade frauds: The Customs conducted 10 inspections and proposed to sanction administrative violations of VND 120 million. The amount of money remitted into the state budget was VND 266 million (including the amount from previous period recommendations). 219 post-customs clearance inspections were implemented; the amount for tax imposition was VND 187,320 million and the amount for santioning administrative violations was VND 283,262 million; the amount actually collected into the state budget was VND 477,689 million (including the amount from previous period recommendations). In the first quarter of 2020, the General Department of Customs continued to organize topics and plans specialized in preventing smuggling of goods: alcohol, drugs, precursors and addictive substances, minerals, precious metals, cigarettes ... Results: Departments in the whole system took the lead in detecting and arresting 1,571 violations; Estimated value of infringed goods was VND 413,882 million; State budget revenue collected VND 29,178 million.
3.10. Administrative reform and control of administrative procedures
- The implementation of the one-stop mechanism in resolving administrative procedures: From 1 January 2020 to the end of 30 March 2020, the One-stop Unit of the Ministry of Finance had received 256 dossiers of administrative procedures in 04 sectors (insurance, accounting - auditing, information technology, pricing) and returned results of 143 dossiers to individuals and organizations on time; 113 dossiers has been handled and no dossier is overdue.
- The reduction and simplification of reporting regime: To implement the Government's Decree No. 09/2019/ND-CP dated 24 January 2019, on the reporting regime of state administrative agencies, Ministry of Finance issued Circular No. 16/2020/TT-BTC dated 26 March 2020 on the reporting regime under its authority. At the same time, the Ministry of Finance has continued reviewing to research for amending and supplementing the periodic reporting regime and has been expected to submit proposals such as amendments, supplements or issuing legal documents to the competent authorities under its authority to amend and supplement 147 periodical reporting regimes regarding the requirements of Decree No. 09/2019/ND-CP.
- The organizational reforms of the state administrative apparatus: In the first quarter of 2020, the Ministry of Finance continued to organize the apparatus pursuant to Resolution No. 18-NQ/TW on continuing renovation and rearrangement of the apparatus of the streamlined, effective and efficient political system and Resolution No. 19-NQ/TW on continuing renovation of the organizational system and improving the quality and efficiency of public non-business units. Accordingly, the tax system has reduced 2100 focal points at the group/team level, equivalent to the reduction of 2100 Team leaders and similar people; arranged and merged 565 District Tax Departments under 63 Tax Departments to establish 269 Regional District Tax Departments and reduce 296 District Tax Departments, the remainings are 415 District Tax Departments. As a result, the number reached 102% of the plan and the time for the implementation was 10 months ahead of schedule according to the Decision No. 41/2018/QD-TTg dated 25 September 2018 of the Prime Minister and Decision No.520/QD-BTC dated 13/4/2018 of the Ministry of Finance. Accumulated from 1 January 2018 until now, the Ministry of Finance has reviewed and rearranged the administrative apparatus in a streamlined way, reduced 2.985 administrative focal points, thereby reduced over 2.044 civil servants holding leadership positions from team/group upwards. In addition, the Ministry of Finance has reduced 09 public non-business units (from 36 units to 27 units) due to merger and dissolved 02 non-business units under the Ministry, 06 non-business units under the Department, 01 non-business unit under the Department of the General Department.
- Outstanding results on administrative procedure reform in the field of tax and customs: Tax and customs agencies have strongly implemented administrative procedures reform, widely applied electronic invoicing, and enhanced the application of information technology and electronic transactions in the field of taxation (electronic tax declaration, payment and refund) and customs to maximize convenience, reduce administrative transaction time and cost for enterprises; promoted online tax payment, expanded the implementation of electronic tax refund; strived to reach ASEAN-4 level on tax and customs administrative reform,..., improved the investment and business environment, improved national competitiveness in the spirit of Resolution No. 30c/NQ-CP dated 8 November 2011 of the Government promulgating the Master Program on State Administrative Reform in the period of 2011-2020, Decision No. 225/QD-TTg dated 4 February 2016 of the Prime Minister on promulgating the State administrative reform plan for the 2016-2020 period.
II. MAJOR PLANS AND TASKS IN APRIL 2020 AND THE SECOND QUARTER OF 2020
1. Mechanism and policy proposals
For proposals submitted to the Government and the Prime Minister: In April 2020, the Ministry of Finance shall draft and submit 7 proposals to the Government and the Prime Minister. Totally, in the second quarter of 2020, the Ministry of Finance shall draft and submit 19 legal document proposals to the Government and the Prime Minister.
For the circular formulation programs: The Ministry of Finance shall issue 27 Circulars in April 2020 and 43 Circulars in the second quarter of 2020.
2. Major tasks in the second quarter of 2020
2.1. The implementation of State budget estimates, the administration of state budget revenues and expenditures
- The Ministry of Finance shall continue implementing the central budget to ensure funding for implementation of spending tasks according to the approved plans and actual situations.
- The Ministry of Finance shall implement solutions on management of state budget revenues to ensure the achievement of targets for state budget revenue increase.
- The Ministry of Finance shall formulate and summit the Government Report to the National Assembly on evaluating the implementation of public debt borrowing and repayment in 2020, plan for public debt borrowing and repayment in 2021; complete the draft Decree for amending articles of Decree No. 97/2018/ND-CP dated June 30, 2018 on on-lending ODA and foreign concessional loans; Government Decree regarding receiving foreign aid...
2.2. Public asset management
The Ministry of Finance shall submit to the Government for promulgation of a Decree on the management, use and exploitation of water supply infrastructure assets and a Decree on amending and supplementing the Decree No. 167/2017/ND-CP dated 31 December 2017 of the Government on the restructuring and handling of public assets; survey a number of localities, summarize opinions of ministries and sectors as a basis for finalizing the draft decree on the management, use and exploitation of infrastructure assets for clean water supply; summarize opinions of ministries, sectors and localities for finalizing the draft Circular for amending and supplementing the Circular No. 48/2017/TT-BTC dated 15 May 2017 of the Ministry of Finance on the financial regime in property auctioning ...
2.3. Corporate finance management and State-owned enterprise equitization
The Ministry of Finance shall complete projects, mechanisms and policies in the assigned field.
2.4. Strengthening the price management and stabilizing the market
The Ministry of Finance shall proactively inspect changes of petroleum prices in domestic and the world to make a plan to regulate petroleum prices in the monthly operating period; coordinate with the Ministry of Industry and Trade to regulate petrol prices in accordance with current regulations; closely observe and control the price declaration, price announcement of some items such as textbooks, coal, liquefied gas, sugar, fertilizer, port services, steel, cement, animal feed, plant protection products, livestock vaccines....
2.5. The management of financial market and financial services
- For insurance market: The Ministry of Finance shall consult the Ministry of Justice on the dossier on the drafting of the Law on Insurance Business (amended); documents detailing the implementation of the Law amending and supplementing a number of Articles of the Law on Insurance Business and the Law on Intellectual Property.
- For money market: The Ministry of Finance shall coordinate with the Government Office in submitting to the Government for promulgating or giving its directing opinions on 03 legal documents on financial management regimes and evaluation of the performance of Vietnam Development Bank; shall coordinate with the Ministry of Justice in appraising 03 legal documents on central and local cooperative development assistance funds; on the Regulation on credit guarantee for small and medium-sized enterprises borrowing commercial banks; on corporate bond issuance ...
2.6. International cooperation
The Ministry of Finance shall draft a Decree on EVFTA tariff for consulting the Ministries and submiting to the Government after the Agreement was ratified by the National Assembly of Vietnam; continue to implement the Action Plan of Vietnam-US Trade and Investment Framework Agreement (TIFA) and implement the framework to Strengthen Infrastructure Finance with the US Department of Treasury (MOU); continues preparing contents for the ASEAN/ASEAN +3 Finance Ministers Meeting ...
2.7. Inspection, examination, prevention of smuggling, trade fraud
The Ministry of Finance shall review and update data of the inspection and examination conclusions; monitor and urge units to implement suggestions and handle complaints after inspection and examination; settle definitely complaints cases according to their competence and regulations.
The General Department of Viet Nam Customs strengthens: directing and guiding the whole sector to well perform the customs control; directing and inspecting the working schedule and the plans for invention of smuggling; collaborating with functional forces such as Police, Border Guard, Market Management, Coast Guard, ... to exchange information and coordinate effectively in patrol, control, arrest and handling; connecting the surveillance camera system, operating online surveillance system for duty and online surveillance in Customs.
The Ministry of Finance has summarized basic information about the implementation of the working agenda of March 2020 and the first quarter of 2020, the plan to implement the working agenda of April 2020 and the second quarter of 2020./.
- Central Propaganda Committee;
- Ministry of Information
- Department of General Affairs, (to report)
- Ministry leaders;
- News agencies;
- Vietnam Government Portal
(VGP); (to cooperate)
- E-portal of Ministry of Finance;
- Archive: Clerical staff, Office.
AUTHORIZED BY THE MINISTER
CHIEF OF MINISTERIAL OFFICE