Press Release: On the 04/2020 performance and 05/2020 workplan of the Finance Ministry 20/05/2020 10:18:00 254

On the implementation of the April 2020 working agenda and the implementation of the May 2020 working agenda of the Ministry of Finance

I. EVALUATION OF THE IMPLEMENTATION OF THE WORKING AGENDA OF APRIL 2020

1. The work of formulating and improving financial mechanisms and policies

- Agenda of formulation of laws and ordinances to be submitted to the National Assembly: (i) The Law on Insurance Business (amended). Currently, the Ministry of Justice has introduced this Law project into the Government’s registered agenda of formulating laws and ordinances in 2021, (ii) Regarding the Resolution of the National Assembly on exemption of tax on agricultural land use: On 28 April 2020, the National Assembly’s Standing Committee (NASC) held a meeting and gave opinions on this Resolution; (iii) Regarding the National Assembly's Resolution on a number of corporate income tax policies to support and develop micro and mini enterprises: The Ministry of Finance formally requested for the evaluation opinion of the Ministry of Justice on this draft Resolution.

In addition, the Ministry of Finance is drafting 4 Resolutions of the NASC including: (i) Resolution of the NASC on adjusting the (family-credit) deduction threshold of personal income tax; (ii) Resolution of the NASC on the addition of medical supplies and equipment to the list of national reserve goods; (iii) Resolution of the NASC on amendments and supplements to some articles and forms in the appendix issued together with Resolution No. 343/2017/UBTVQH; (iv) Resolution of the NASC on principles, criteria and norms for allocation of state budget for recurrent expenditures in 2021.

- Schemes under the authority of the Ministry and regular tasks under the working agenda: By the end of 27 April 2020, the Ministry of Finance had issued 11 Circulars under its authority:

- In order to support businesses, remove difficulties and promote production and business activities, to restart the economy to cope with the Covid-19 pandemic, the Ministry of Finance proactively formulated and implemented many solutions simultaneously and proposed fiscal policies such as: formulating and finalizing the content to be submitted to the Government for promulgation of Decree No. 41/2020/ND-CP dated 8 April 2020 on extending the deadline for paying taxes and land rents for Subjects facing difficulties due to the impact of the Covid-19 pandemic. Decree No. 41/2020/ND-CP is widely applied to most businesses, organizations, households and individuals directly affected by the Covid-19 pandemic (about 98% of all active taxpayers are entitled to the extension policy in the Decree). In addition, as authorized by the Prime Minister, the Minister of Finance submitted a proposal to the National Assembly on tax exemption for agricultural land use; submitted a proposal to the Government regarding the draft Resolution of the NASC on adjusting the (family-credit) deduction threshold for personal income tax.

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

Total state budget revenue in April was estimated at VND 89 trillion. Accumulated revenues in 4 months reached VND 491.38 trillion, equaling 32.5% of the plan, down 5.9% as compared to the same period in 2019. In which:

- Domestic revenue: April revenues were estimated VND 72.5 trillion, decreased by nearly 25% compared to the March revenues and were only 65% ​​of the figure for the same period in 2019. Accumulated 4-month revenues were VND 408.76 trillion, equaling 32.3% of the plan, down 3.7% compared to the same period in 2019 (the figure for the same period in 2019 reached 36.2% of the plan, up 13.8%).

The General Department of Taxation already issued a guidance directing local Tax Departments to urgently organize the implementation of the Government's Decree No. 41/2020/ND-CP dated 8 April 2020 on extending the deadline for payment of taxes and land rents for businesses, organizations, households and individuals affected by the Covid-19 pandemic; to implement effective public communication and information dissemination regarding policies, guidelines; to create favorable conditions for taxpayers as regards completing tax declaration, making and sending the written request for deadline extension by electronic means (via the web portal of tax authorities, via the national public service portal), by post or in person at tax offices; to handle taxpayers' extensions according to the prescribed regime, ensuring timeliness and increasing inspection/ supervision to prevent policy misapplication and abuse.

It is estimated that 47/63 localities in the whole country collected higher than 30% of the plan, of which 32 localities collected more than 34% of the plan; 28/63 localities collected higher compared to the same period last year, 35/63 localities collected lower compared to the same periodlast year.

- Revenue from crude oil: April proceeds from crude oil were estimated at VND 2.5 trillion, down by nearly 2.9 trillion compared to March. Accumulated 4-month revenue was estimated at VND 18.3 trillion, equaling 52.1% of the plan, up 0.9% compared the same period in 2019. The average payment price of crude oil for 4 months was 58 USD/barrel, down by USD 2/barrel compared to the planned price, equaling about 82% of (the figure of) the same period in 2019; the output was estimated at 3.2 million tons, equal to 35.4% of the plan, equivalent to 84.1% of (the statistic of) the same period in 2019.

- Income from import and export activities: April revenues were estimated at VND 13.9 trillion, down by VND 5.8 trillion compared to the previous month. Accumulated 4-month revenues were estimated at VND 63.9 trillion, equal to 30.8% of the plan, down by 19% compared to the same period in 2019, based on the total tax revenues estimated at VND 101 trillion, equal to 29, 9% of the plan, down by 12.3% compared to the same period in 2019; eligible VAT refund was about VND 37 trillion, equal to 28.5% of the plan.

In the first four months of the year, total import and export turnover of goods was estimated at USD 162.8 billion, up 3.4% over the same period in 2019. There were decreases in import turnover of some items with large contributions to state budget revenues such as: petrol and oil of all types (down by 40.5%), cars (down by 36.6%), iron and steel (down by 6.4%), ... which reduced the state budget revenues of this area of activities. Customs authorities actively enhanced post-clearance inspection; closely coordinated with the functional forces to prevent smuggling, trade frauds and the trade of counterfeits; actively handled and recovered tax arrears.

2.2. State budget expenditures; management and administration of state budget expenditures

In April, it was estimated that state budget expenditures reached VND 128.1 trillion; accumulated 4-month expenditures reached VND 472.1 trillion, equal to 27% of the plan, up 9.8% compared to the same period in 2019, of which: expenditures for development investment reached VND 89.3 trillion, equal to 19% of the plan, up 30.3%, compared to the same period of 2019 as regards both progress and growth; expenditures for interest payment was VND 41.2 trillion, equaling 34.9% of the plan, up 4%; recurrent expenditures were VND 339.1 trillion, equaling 32.1% of the plan, up 6.1% compared to the same period in 2019.

The tasks of state budget expenditures in April and the first 4 months of the year were carried out in accordance with the plan and the progress of professional tasks of budget-using units, meeting the social welfare tasks. To prevent and control Covid-19, the central government and local governments increased state budget expenditures on health activities, ensuring sanitation and supporting activities for the control and prevention of Covid-19 pandemic. The Ministry of Finance coordinated with other ministries to submit a proposal to the Prime Minister for consideration regarding the drawdown of the central budget reserve in 2020 to provide additional funding for the Ministry of Health, the Ministry of National Defense and the Ministry of Public Security for implementing activities to prevent and control Covid-19 pandemic (total funding of VND 2.8 trillion ); to support 8 localities in the Mekong River Delta to prevent and combat droughts, water shortages and saltwater intrusion (total funding of VND 530 billion).

Implementing the Government's Resolution No. 42/NQ-CP dated 9 April 2020 on measures to support people facing difficulties due to the Covid-19 pandemic, the Ministry of Finance reported to the Government and submitted a proposal to the National Assembly’s Standing Committee (NASC) regarding the funding of VND 20 trillion sourced from revenue additions and expenditure savings of the central-government state budget in 2019 to support the localities in accordance with Resolution No. 4/NQ-CP.

2.3. Regarding the state budget balance and capital mobilization

Balance of central budget and local budgets was guaranteed. By the end of April 2020, the Ministry of Finance had issued nearly VND 43.9 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 the average term of 16.33 years and the average interest rate of 3.06%/year (the average interest rate in 2019 was 4.51%/year).

3. The situation of the results of implementing a number of key tasks

3.1. Public asset management

The Ministry of Finance sent a correspondence to the Minister of Health, the Minister of Industry and Trade, the Minister of Public Security, the Minister of National Defense and Presidents of the provincial and municipal People's Committees on handling confiscated materials which are medical masks for the prevention of Covid-19 pandemic; sent a correspondence providing comments on standards and norms for using specialized vehicles in accordance with the Ministry’s scope of authority; guided the Ministries, sectors and localities in implementing the contents related to land use levy collection and land rent collection, exemption or reduction of land rent in accordance with the land law ...

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

In the first 4 months of 2020, the Ministry of Finance received the equitization report(s) of 03 public non-business units in Hau Giang province. In the first 4 months of 2020, there were 06 enterprises on the list of compulsory divestments under Decision No. 1232/QD-TTg with the value of VND 84 billion earning VND 241 billion; Conglomerates and Corporate groups implementing divestments with the value of VND 318 billion earned VND 551 billion.

3.3. Management of prices and the market

Due to the impact of the Covid-19 pandemic combined with a number of other factors (African Swine Fever, avian flu, droughts, saltwater intrusion ...), commodity price levels in the first months of 2020 increased sharply compared to the set target. In such circumstances, the Ministry of Finance took the initiative in coordinating with other ministries, sectors and localities to implement measures to enhance stabilization of market prices, especially with respect to essential items for pandemic prevention and control (face masks, disinfectants, medical supplies, staple foods and other foods); sped up the inspection to ensure compliance with the laws on prices regarding the activities of price declaration, price consultation; handled violations in price management and administration...

3.4. Management of the financial market and financial services

- Regarding the securities market: As of 29 April 2020, the VN-Index reached 770.77 points, down 19.8% compared to the end of 2019; The market capitalization was estimated at VND 3,446 trillion, down 21.1% compared to the end of 2019, equivalent to 57.3% of GDP.

  - Regarding the insurance market: The total value of insurance assets in April 2020 reached VND 489.9 trillion, up 20.4%; Re-investment into the economy was estimated at VND 405.5 trillion, up 23.3%; Total equity reached VND 108 trillion, up 29.6%; Total insurance premium revenues reached VND 48.9 trillion, up 10.3%; Insurance benefit payment reached VND 15 trillion, up 20.4% compared to the same period in 2019.  

3.5. International cooperation

In April 2020, the Ministry of Finance formulated a draft Decree issuing the special preferential export-import tariff nomenclature for EVFTA; prepared for and attended the RCEP Negotiating Summit ...

3.6. Management of public debt and external finance

  In the first 4 months of 2020, the Government signed 4 foreign loan agreements with the World Bank and the Danish government with a total value of about USD 333 million.

  In April 2020, the Government withdrew USD 62 million of foreign loans, of which about USD 42 million will be allocated and around USD 20 million will be for on-lending. In the first 4 months of 2020, accumulated disbursement of ODA loans and foreign concessional loans was about USD 524 million, equivalent to about VND 12,137 billion, in which about USD 389 million USD will be allocated and about 135 million USD will be for on-lending.

3.7. State reserve management

To implement the tasks assigned by the Prime Minister, from the beginning of 2020 till now, the General Department of State Reserve has assigned 55,279.482 tons of rice to the Regional Departments of State Reserve to support Tet, natural disasters, between-crop period, second term of school year 2019-2020; bid and signed the contract to buy 7,700/190,000 tons of rice; bought 5,470/9,500 tons of paddy in the Southern, approved the plan to buy 14,000 tons of paddy at 3 Departments of State Reserve in the South Central, Nghia Binh and Da Nang.

3.8. Inspection, examination, prevention of smuggling and trade fraud

In the first 4 months of 2020, the Department of Finance Inspectorate and Departments having specialized inspection function under the Ministry examined 97,760 declaration documents at the headquarters, arrested 1,517 cases by anti-smuggling investigations; proposed for financial settlement of VND 19,147,026 million, the amount of money collected and paid to the State Budget was VND 3,813,763 million.

From 16 March to 15 April, the Customs coordinated, discovered, arrested 1,148 cases of violation in total, the value of infringing goods was estimated at VND 195,541 billion; collected and paid to the State Budget VND 42,694 billion, transferred to other agencies to petition to prosecute 05 cases. Accumulated in the first 4 months of 2020, the customs control force chaired, coordinated with the functional forces to detect and arrest 4,830 cases of customs violations, the value of violated goods was estimated at VND 1,206 billion. The Customs agency prosecuted 07 criminal cases, transferred another agency to prosecute 30 cases, paid to the state budget revenue VND 110,885 billion.

3.9. Administrative reform and control of administrative procedures

As of 27 April 2020, the Ministry of Finance issued 02 Decisions on annulling 18 administrative procedures, simplifying 11 administrative procedures in the field of public asset management and state treasury; There are 936 administrative procedures under the management of the Ministry of Finance in total, including 101 level-1 online public services, 293 level-2 online public services, 208 level-3 online public services, 334 level-4 online public services. Currently, The Ministry of Finance has completed integrating and sharing the connection of 07 online public services at level 4 to the National Public Service Portal.

II. MAJOR PLANS AND TASKS IN MAY 2020

1. Mechanism and policy proposals

According to the plan, in May 2020, the Ministry of Finance is responsible to submit to the Government and the Prime Minister 9 proposals and promulgate 33 Circulars according to its competence .

2. Major tasks in May 2020

2.1. The implementation of State budget estimates, the administration of state budget revenues and expenditures

- The Ministry of Finance shall continue to complete the Draft Circular on guiding the elaboration state budget estimates in 2021 and the 3-year financial plan of 2021-2023, the document on the formulation of principles, criteria and norms for allocation of state budget recurrent expenditure estimates in 2021, the state budget balancing framework in 2021 and in the 3-year period of 2021-2023, the report on the implementation of major solutions and tasks for directing and administering the implementation of the socio-economic development plan and State budget estimates in 2020 according to the Resolution No. 01/NQ-CP and the Directive No. 11/CT-TTg dated 4 March 2020 of the Prime Minister ...

- The Ministry of Finance shall implement solutions to complete the task of State budget collection in 2020 of the whole country as well as each locality following the Directives and Resolutions of Government and National Assembly: Resolution No. 86/2019/QH14 dated 12 November 2019 on estimating the State budget for 2020; Resolution No. 01/NQ-CP of the Government on completing the task of State budget collection in 2020.

- The Ministry of Finance shall issue a process for unifying the focal point of expenditure control at the provincial State Treasury in association with online public services; complete the business processes associated with the application of IT in controlling state budget spending.

- The Ministry of Finance shall implement the Government's Resolution No. 01 on the implementation of socio-economic development plans and State budget estimates for 2020; summary of the disbursement report in May 2020 to report to the Prime Minister; complete the summary data of the mid-term public investment plan report in the period of 2016-2020 and the annual plan; summary of plans on development investment capital, plans of state budget capital in 2020 of ministries, sectors and localities; summary of the settlement of completed projects in 2019 of ministries, sectors and localities.

- The Ministry of Finance shall continue to complete the master plan of the national reserve system in the period of 2021-2030...

2.2. Public asset management

- The Ministry of Finance shall finalize the draft and submit to the Prime Minister to issue the Decree on amending and supplementing the Government's Decree No. 167/2017/ND-CP dated 31 December 2017 on rearranging and handling of public properties; continue to collect opinions (the second time) of ministries, sectors and localities on the draft decree regulating the management, use and exploitation of clean water supply infrastructure; continue to guide ministries, sectors and localities in implementing the contents of management and use of public assets, finance on land according to regulations of the Law...

2.3. Budget management and capital mobilization, strict management of public debt

- The Ministry of Finance shall organize the administration of funds, ensure the payment and payment needs of the State budget and departments dealing with the State Treasury; implement the Prime Minister's Decision approving the plan for borrowing and repaying public debt in 2020 and the 3-year public debt management program of the Government for the period of 2020-2022: developing a plan to swap government bonds.

- The Ministry of Finance shall complete the Public Debt Report to submit to the Government and National Assembly; complete the Decree amending a number of articles of Decree No. 97/2018/ND-CP dated 30 June 2018 on on-lending ODA loans and foreign concessional loans for submission to the Government for approval…

2.4. Corporate finance management and State-owned enterprise equitization

The Ministry of Finance shall focus on submitting to competent authorities schemes and policies with the main contents including policy mechanisms related to the assigned fields; collaborate with ministries, sectors and localities in restructuring, equitizing and divesting SOEs; Prepare a report on the implementation of Resolution No. 60/2018/QH14 dated 15 June 2018 on continuing to improve and promote the implementation of policies and laws on the management and use of state capital and assets in enterprises and equitization of SOEs.

2.5. Price management, market stabilization

The Ministry of Finance shall proactively monitor changes of petroleum prices in the world and domestic to report to Ministers the plan to manage petroleum prices in the May 2020 period; coordinate with the Ministry of Industry and Trade to regulate petroleum prices strictly according to current regulations; strictly monitor and control the declaration and notification of price of items such as textbooks, coal, liquefied gas, sugar, fertilizer, port services, steel, cement, animal feed, plant protection products, vaccines for cattle and poultry ...

2.6. Management of the financial market and financial services

- The Ministry of Finance shall adjust the inspection plan for the approved public companies, securities business organizations and auditing companies; strictly handle violations on the basis of supervision results; appraise the offerings and issue documents as prescribed, strictly supervise post-sale activities to ensure compliance with regulations; strictly supervise cases of rapid capital increase, issue separately but creating favorable conditions to enterprises at the same time; closely monitor securities transactions showing abnormal signs; promptly coordinate with 02 Stock Exchanges in assessing, analyzing and examining of transactions showing signs of violation of regulations; instruct, remind and request companies to list and register their transactions on the stock market according to regulations; conduct regular and irregular supervision and inspection of public companies, supervise the regular and irregular inspection of approved auditing organizations.

- The Ministry of Finance shall coordinate department inside and outside to develop projects related to the insurance field under the registered program.

2.7. International cooperation

The financial integration and cooperation of the Ministry of Finance in May 2020 is expected to carry out some activities such as: Developing a plan to prepare Session 9 for negotiating Vietnam - Israel FTA; Continuing to monitor the situation of the COVID-19 epidemic to propose a time to organize the ASEAN/ASEAN+3 Finance Ministers Meetings.

2.8. Inspection and examination

- Department of Finance Inspectorate and Departments under the Ministry specialized in inspection shall base on the situation of Covid-19 disease control to organize inspections at a number of departments following the approved 2020 plan to ensure their compatibility with the actual situation; continue to complete the 2020 report on thrift practice and waste combat to submit to the Government for reporting to the National Assembly at the 9th session of the XIV National Assembly; establish a delegation to inspect the bidding for reserve rice purchases at a number of regional reserve agencies under the guidance of the Minister of Finance ...

- The Ministry of Finance shall perform the regular and irregular work of the Steering Committee 138/CP in the field of customs control; strictly follow the regulations on customs management for export goods, especially rice exports in the context of the Covid-19 epidemic.

The Ministry of Finance summarized key information about the implementation of financial and budgetary tasks in April 2020, the working agenda of May 2020. The Ministry of Finance requests press agencies to coordinate in public communication and information dissemination./.