PRESS RELEASE: Regarding the implementation of the work agenda of October 2020 and the implementation of the work agenda of November 2020 of the Ministry of Finance

PRESS RELEASE: Regarding the implementation of the work agenda of October 2020 and the implementation of the work agenda of November 2020 of the Ministry of Finance 09/11/2020 02:05:00 115

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Regarding the implementation of the work agenda of October 2020 and

the implementation of the work agenda of November 2020

of the Ministry of Finance

I. ASSESSMENT OF THE IMPLEMENTATION OF THE WORK AGENDA OF OCTOBER 2020

1. The implementation of law and ordinance formulation

On 29 October 2020, the Minister of Finance was authorized by the Prime Minister to, on behalf of the Government, sign the proposal No. 570/TTr-CP to the National Assembly regarding a draft resolution of the National Assembly on value-added tax rates for fertilizers. The Government submitted to the National Assembly the proposal to add this draft resolution to the law and ordinance formulation agenda of 2020.

In October 2020, the Ministry of Finance submitted to the Government 04 schemes and issued under the authority 04 Circulars.

2. The implementation of the state budget plan and the management and administration of state budget revenues and expenditures

2.1. State budget revenue and the management and administration of state budget revenues

The total balanced state budget revenue in October was estimated at VND 150.9 trillion. Accumulated state budget revenue of 10 months reached VND 1,137.3 trillion, equaling 75.2% of the plan, down 10.3% compared to the same period in 2019 (the central budget was estimated at 70.5% of the plan; local budgets were estimated at 81.2% of the plan). Of which:

- Domestic revenue: October revenue was estimated at VND 135.8 trillion, up about VND 45 trillion compared to September revenue. Accumulated 10-month revenue was estimated at VND 959.2 trillion, equaling 75.9% of the plan, down 6.8% compared to the same period in 2019.

The Ministry of Finance has directed the organization and administration of state budget revenue solutions in order to best accomplish the state budget tasks in 2020; strengthened revenue management in different areas; combated revenue losses; reduced tax arrears; focused on reviewing and grasping the tax debt situation of the affiliated sub-departments; classified groups of debts into recoverables and non-recoverables.

- Revenue from crude oil: October revenue was estimated at VND 2 trillion, down by VND 130 billion compared to September. Accumulated 10-month revenue was estimated at VND 29.65 trillion, equaling 84.2% of the plan, down 37.2% compared to the same period in 2019.

- Budget-balancing revenues from import and export activities: October revenue was estimated at approximately VND 13.1 trillion, on the basis of: total tax revenue was nearly VND 22.1 trillion, eligible VAT refund was VND 9 trillion. Accumulation of 10 months was estimated at VND 147.6 trillion, equaling 71.0% of the plan, down 21.2% compared to the same period in 2019, on the basis of total tax revenue which was estimated at VND 250.8 trillion, equal to 74.2% of the plan, down 14.6%; eligible VAT refund was VND 103.2 trillion.

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

Total state budget expenditure in October reached VND 131.3 trillion, meeting the tasks of spending on socio-economic development, national defense, security, state management and payment of due debts. Accumulated state budget expenditure in 10 months reached VND 1,260.2 trillion, equal to 72.1% of the plan, up 9.7% compared to the same period in 2019; In which, thanks to the drastic direction of the Government, of the Prime Minister and efforts of ministries, sectors and localities, disbursement of capital for investment and development reached VND 321.5 trillion, equaling 68.3% of the plan. If the calculation includes the capital plan in 2019, which is extended to 2020, and the number of additional plans assigned in the year, the disbursed capital reaches VND 379.5 trillion, equaling 60.37% of the disbursement plan of 2020; interest payment was VND 89.1 trillion, equal to 75.4% of the plan, down 3.1% compared to the same period in 2019; recurrent expenditures reached VND 841.3 trillion, equaling 79.6% of the plan.

As of 26 October 2020, the state budget spent about VND 17.77 trillion on pandemic prevention and support for people facing difficulties caused by the Covid-19 pandemic, of which: (i) VND 5.08 trillion for the implementation of specific regimes in the prevention of Covid-19 pandemic under the Government's Resolution No. 37/NQ-CP dated 29 March 2020 and Decision No. 437/QD-TTg dated 30 March 2020 of the Prime Minister; (ii) VND 12.68 trillion to support 12.78 million subjects affected by the Covid-19 pandemic under the Government's Resolution No. 42/NQ-CP dated 9 April 2020 and Decision No. 15/2020/QD-TTg dated 24 April 2020 of the Prime Minister. The central budget has used about VND 3.17 trillion sourced from contingency reserves to spend on overcoming consequences of natural disasters, floods and African swine fever; the Ministry of Finance provided VND 500 billion sourced from the central budget contingency reserve to 5 provinces of central Viet Nam to overcome the consequences of heavy rainfall and flooding. The Ministry of Finance reported in writing to the Prime Minister on assistance in overcoming the consequences of housing shortage caused by natural disasters, and the provision for relief is expected to be about VND 1,400 billion sourced from the state budget.

2.3. Regarding the balance of the state budget and capital mobilization

Balancing the central and local budgets is difficult in the context of steep reduction in state budget revenue due to the impacts of the Covid-19 pandemic, natural disasters and climate change. As of 26 October 2020, the Ministry of Finance had issued VND 264.3 trillion of government bonds to repay due bonds and to issue debts with Vietnam Social Security under the Resolution of the National Assembly (VND 9,090 billion), with an average term of 13.66 years, the average interest rate is 2.92%/year (the average in 2019 was 4.51%/year).

3. Results of implementing a number of key tasks

3.1. Corporate finance management and equitization and divestment of state-owned enterprises

In 10 months of 2020, the capital divestment was VND 925.6 billion, earning VND 1,918.5 billion.

3.2. Price and market management

- From the beginning of the year up to now, the Ministry of Finance has actively coordinated with ministries, sectors and localities to implement solutions to enhance market price stabilization, especially with respect to essential goods such as staple foods, foodstuffs, goods for the prevention and control of Covid-19 pandemic and goods serving as inputs to production and business activities which are priced by the State; strengthened inspection of the observance of the law on prices in price declaration and consultation activities, handling violations in price management and administration.

- The Ministry of Finance cooperated with the Ministry of Industry and Trade in the management and administration of petroleum products in the country; at the same time, the Ministry of Finance closely coordinated with the Ministry of Industry and Trade to issue an official document to regulate gasoline prices according to the provisions of Decree No. 83/2014/ND-CP dated 3 September 2014 (in October 2020, there were 02 documents sent to the Ministry of Industry and Trade on the petroleum price regulations);

3.3. Management of the financial market and financial services

In the first 10 months of the year, the Ministry of Finance focused on promoting the restructuring of the financial market, of which:

a) Financial market and securities market management:

The Ministry of Finance continued to develop detailed guidance documents for the recently issued Securities Law (the documents included 4 Decrees and 11 Circulars); implemented the Scheme to establish Vietnam Stock Exchange according to the roadmap and model approved by the Prime Minister; implemented incentive policies to promote the development of the voluntary retirement program (Pension Fund); prepared a pilot project of crowd-funding model (Crowd-funding); researched, formulated, and promulgated regulations and stipulations on corporate bonds to diversify bond products; (researched, formulated, and promulgated regulations and stipulations on) bond transaction methods to meet the needs of investors; encouraged companies to list bonds; set up a corporate bond portal to implement the plan to organize the corporate bond market.

At the end of the session on 30 October 2020, the VN-Index reached 925.47 points (up 20.26 points compared to 30 September 2020), HNX-Index reached 135.34 points (up 2.41 points) compared to 30 September 2020), UPCoM-Index reached 62.85 points (an increase of 1.12 points compared to 30 September 2020).

b) Insurance market:

- The Ministry of Finance continued to improve the Draft Decree on compulsory civil liability insurance for motor vehicle owners (replacing Decree No. 103/2008/ND-CP dated 16 September 2008 and Decree No. 214/2013/ND-CP dated 20 December 2013 of the Government).

- In the first 10 months of the year, the insurance market maintained a fairly good growth momentum, with total insurance premium revenue estimated at VND 148,547 trillion, up 16% compared to the same period in 2019; total asset value of insurance businesses reached VND 537,326 billion, up 21%; insurance businesses’ re-investment into the economy was VND 434,625 billion, an increase of 19% compared to the same period in 2019; payment of insurance benefits was about VND 38,975 billion.

3.4. International cooperation, external finance and public debt management

- Regarding financial integration and cooperation:

In October 2020, the Ministry of Finance implemented the following activities: Attending the RCEP Ministerial Conference on the sidelines of the Summit, preparing to sign the RCEP Agreement; continuing to coordinate with the Ministry of Industry and Trade on the negotiation of FTAs ​​between Viet Nam and Israel, Viet Nam and the UK. The Ministry of Finance also successfully organized the ASEAN and ASEAN +3 Finance Ministers’ and Central Bank Governors’ meeting and reported the results to the Prime Minister ...

- Regarding debt management and external finance:

Regarding the signing and mobilization of foreign loans of the Government: In the first 10 months of 2020, the Government signed 10 foreign loan agreements worth about USD 977 million. In October 2020 (as of 23 October 2020), withdrawn capital from foreign loans was about USD 111.4 million, of which about USD 43.5 million was allocated, and USD 67.9 million was for on-lending. In the first 10 months of 2020 (from 1 January to 23 October 2020), withdrawn capital from ODA loans and foreign concessional loans totaled about USD 1,622 million (equivalent to about VND 37,640 billion, reaching about 35.0% of the plan). plan), in which the amount for allocation was about USD 1,002 million, the amount for on re-lending was about USD 620 million.

  About performing obligations of Government debt repayment: Government debt repayment in October 2020 (as of 20 October 2020) was about VND 38,149 billion, of which domestic debt payment was about VND 35,632 billion, foreign debt payment was about 2,517 billion. In the first 10 months of the year, the total debt payment of the Government was about VND 278,888 billion (equivalent to 76.1% of the whole year plan), of which domestic debt payment was about VND 216,587 billion, foreign debt payment was about VND 62,301 billion.

3.5. The management of state reserves

- Providing food: From the beginning of the year up to now, the General Department of State Reserves has provided 114,000 tons of rice, in which: 6,460 tons of rice for supporting Tet holiday; over 22,000 tons of rice for relief, natural disasters and between-harvest seasons; 10,020 tons of rice for supporting project of afforestation; 37,373 tons of rice for the first term of school year 2020-2021 (including: 33,477 tons of rice for the second semester of the 2019-2020 school year; 37,373 tons of rice for the first semester of the 2020-2021 school year, the implementation time to 30 November 2020); and 5000 tons of rice for supporting Cuba.

- Receiving food: The General Department of State Reserves has completed the inventory of 190,000 tons of rice and 80,000 tons of paddy, reaching 100% of the plan.

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

In the first 10 months of 2020, the Department of Finance Inspectorate and Departments having specialized inspection function under the Ministry proposed a financial settlement of VND 54,506,802 million (in which: VND 13,501,933 million for paying to the state budget, VND 35,857,086 million for settling other financial violation, VND 5,147,783 million for settling administrative violation); Inspected and examined units paid VND 8,717,892 million to the state budget.

Prevention of smuggling and trade fraud has been strengthened with positive results. In 10 months of 2020, the Customs authorities has discovered, arrested and handled 11,315 cases of violation of the Customs Law, the value of infringing goods has been proposed VND 2,440,913 million; the amount of money collected and paid to the state budget has been VND 521,171 million. The Customs authorities prosecuted 29 cases; transferred other agencies to prosecute 85 cases.

3.7. Administrative reform and control of administrative procedures

In implementation of Decision No. 2763/QD-BTC dated 26 December 2019 on the 2020 administrative reform plan, the Ministry of Finance directed the departments under the Ministry to synchronously implement the administrative reform work in all financial fields. Up to now, the Ministry of Finance has implemented 152 tasks (in which: 85 tasks have been completed, 44 regular tasks are implemented effectively and timely, 23 tasks have been performed according to the plan).

Up to now, there are 974 administrative procedures under the management of Ministry of Finance, including 101 level-1 online public services, 287 level-2 online public services, 192 level-3 online public services, 394 level-4 online public services. At the same time, the Ministry of Finance has integrated 294 administrative procedures in the form of online public services at level 3 and level 4 on the National Public Service Portal, reached 30,65%. Accordingly, the Ministry of Finance completed the task of 30% of the online public services integrated into the National Service Portal in accordance with the provisions of the Government's Resolution No. 01/NQ-CP dated 1 January 2020.

II. MAJOR PLANS AND TASKS IN NOVEMBER 2020

1. Mechanism and policy proposals

According to the program, in November 2020, the Ministry of Finance shall develop, submit 15 proposals to the Government and the Prime Minister and issue 43 circulars under its authority.

2. Major tasks in September 2020

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

The Ministry of Finance shall coordinate with relevant units to complete documents detailing and guiding the implementation of the Law on Tax Administration under its authority.

The Ministry of Finance shall direct Tax Departments in tax debt collection; focus on the units that have large tax debts, the units that owe the land use and rent fees, projects that have not yet paid to the State budget as prescribed, not allowed to extend, intentionally defer tax debts; take measures to enforce tax debts according to regulations; disclose information in accordance with the Law on Tax Administration.

The Ministry of Finance shall coordinate with related units to accelerate the progress of capital plan assignment and investment capital disbursement, strive to achieve the highest rate of construction investment disbursement.

The Ministry of Finance shall provide rice for supporting students in the first semester of the new school year 2020-2021; provide rice for supporting localities as decided by the Prime Minister; coordinate with the National Committee for Natural Disaster Response and Search and Rescue to submit to the Prime Minister for providing materials and equipments.

2.2. Public asset management

The Ministry of Finance shall coordinate with units of the Government Office to finalize the draft 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; organize the workshop to collect opinions on the draft Decree on regulating the management, use and exploitation of clean water supply infrastructure; on the basis, organize the meeting of the Drafting Committee of the Decree, collect appraisal opinion of the Ministry of Justice and submit to the Government for promulgation.

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

The Ministry of Finance shall organize the administration of funds to ensure the payment and payment needs of the State budget and departments dealing with the State Treasury; shall implement online public services; shall complete professional processes associated with IT application in controlling state budget expenditure; shall sign agreements with commercial banks on the coordination of state budget revenue and electronic bilateral payment between the State Treasury and commercial banks...

2.4. The management of corporate finance and state-owned enterprise equitization

The Ministry of Finance shall synthesize reports on investment, management, and use of state capital in enterprises nationwide in 2019 to report to the Government for reporting to the National Assembly at the October 2020 session; shall synthesize reports on the supervision of state capital investment in enterprises in 2019 to report to the Prime Minister; shall review, summarize and propose amendments to Law No. 69/2014/QH13 to submit to the Government to submit to the National Assembly for putting into the Working Program of the National Assembly in 2021.

2.5. Price management, market stabilization

The Ministry of Finance shall closely monitor changes of petroleum prices in the world and domestic market to make a plan managing petroleum prices in November 2020; coordinate with the Ministry of Industry and Trade to regulate gasoline prices according to current regulations; submit to Ministers to announce the use of the overbalance of gasoline price stabilization fund in the third quarter of 2020; strictly monitor and control the declaration and notification of price of items such as academic textbooks, coal, liquefied gas, 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 collect opinions on draft legal documents detailing and guiding the implementation of the Securities Law under its authority.

- The Ministry of Finance shall submit to the Government for promulgating a Decree replacing Decree No. 138/2007/ND-CP and Decree No. 37/2013/ND-CP on organization and operation of The local development investment fund after receiving Government Member's opinions; submit to the Government for promulgating a Decree replacing Decree No. 163/2018/ND-CP on issuing corporate bonds for guiding the Securities Law and the Enterprise Law (effective from 1 January 2021); consult the Government Members on the Decree on organization and operation of the central cooperative development fund and the local cooperative development assistance funds; and coordinate with the Government Office to submit to the Prime Minister for promulgating a Decision on establishing the Vietnam Stock Exchange ...

The Ministry of Finance shall implement contents related to the construction of the Law on Insurance Business (amended); synthesize the opinion of the Ministry of Justice to report to Ministers to submit to the Government on the evaluation of pilot micro-insurance activities of the Women's Union and plans for the next period; monitor and explain the Government's opinions on the Decree replacing Decree No. 103/2008/ND-CP dated 16 September 2008 on compulsory insurance for motor vehicle owners’ liabilities and Decree Decree No. 214/2013/ND-CP dated 20 December 2013 amending and supplementing a number of articles of Decree No. 103/2008/ND-CP.

2.7. International cooperation

The Ministry of Finance shall attend the RCEP Ministerial Meeting on the sidelines of the Summit; prepare to sign RCEP Agreement; prepare a dialogue conference between the Ministry of Finance and Vietnamese enterprises on tax and customs policies and administrative procedures in 2020.

2.8. Inspection and examination

Department of Finance Inspectorate and Departments under the Ministry having specialized in inspection shall implement the 2020 plan of inspection and examination.

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

Recipients:

image- Central Propaganda Committee;      

- Ministry of Information

and Communications; 

- Department of General Affairs, (to report)

Government Office;

- Ministry leaders;

image- News agencies;  

- Vietnam Government Portal

(VGP);               (to cooperate)

- E-portal of Ministry of Finance;

- Archived: Clerical staff, Office.

AUTHORIZED BY THE MINISTER

CHIEF OF MINISTERIAL OFFICE

(Signed)

Tran Quan