Press Release: Regarding the implementation of the work agenda in November 2020 and the implementation of the work agenda of December 2020 of the Ministry of Finance

Press Release: Regarding the implementation of the work agenda in November 2020 and the implementation of the work agenda of December 2020 of the Ministry of Finance 15/12/2020 02:47:00 95

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Regarding the implementation of the work agenda in November 2020 and the implementation of the work agenda of December 2020

of the Ministry of Finance

I. ASSESSMENT OF THE WORK AGENDA IMPLEMENTATION IN NOVEMBER 2020

1. The situation of law and ordinance formulation

In November, the Ministry of Finance submitted to the Government 04 schemes and issued under its authority 15 Circulars.

2. The implementation of 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 balanced state budget revenue in November was estimated at VND 108.94 trillion. The accumulated revenue of the first 11 months of 2020 was estimated at VND 1,260.9 trillion, equaling 83.4% of the plan, down 7.8% compared to the same period in 2019; in which: Central budget revenue reached 77.4% of the plan, local budget revenues reached 91.1% of the plan. Specifically:

- Domestic revenue: In November, the domestic revenue was estimated at VND 89.2 trillion. The accumulated revenue of 11 months was estimated at VND 1,067 trillion, equaling 84.4% of the plan, down 4% compared to the same period in 2019.

In the first 11 months of the year, the revenue management agencies have strengthened the tax inspection, tax examination and state budget collection, thereby detecting and promptly handling violations.

- Revenues from crude oil: November revenues were estimated at VND 1.9 trillion. The accumulated revenue of 11 months was estimated at VND 31.5 trillion, equaling 89.5% of the plan, down 38.9% compared to the same period in 2019.

- Budget-balancing revenues from import and export activities: November revenues were estimated at VND 17.8 trillion. The accumulated revenue of 11 months was estimated at VND 161.5 trillion, equaling 77.6% of the plan, down 19.6% compared to the same period in 2019, on the basis of total tax revenue estimated at VND 281.4 trillion, equal to 83.3% of the plan, down 11.8%; eligible value-added tax refund was nearly VND 119.9 trillion.

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

The total state budget expenditure in November was estimated at VND 124.1 trillion, meeting the tasks of spending on socio-economic development, national defense, security, state management and payment of due debts. Accumulated state budget expenditures in 11 months reached VND 1,369.6 trillion, equaling 78.4% of the plan, up 8.5% compared to the same period in 2019, of which, spending for investment and development reached 71.4% of the plan (if the calculation included capital plan in 2019 whose implementation period is extended until 2020 and the additional plans assigned in the year, the percentage would be 63.49% of the disbursement plan of 2020); interest payment reached 80% of the plan; recurrent expenditures reached 87.9% of the plan.

To date, the state budget has spent about VND 17.9 trillion on pandemic prevention and control and to support people facing difficulties caused by the Covid-19 pandemic; The central budget has spend more than VND 4.54 trillion sourced from contingencies on overcoming the consequences of natural disasters, floods and African swine fever (of which: supporting 9 provinces of Central Viet Nam and of the Central Highlands to overcome the consequences of storms/floods and 11 Northern provinces to overcome the consequences of hail, thunderstorms, flash floods and landslides with the total funding of VND 1.63 trillion). In addition, nearly 32.95 thousand tons of national reserve rice have been provided to people in need, to relieve hunger and overcome the consequences of natural disasters and transitory periods between harvests at the beginning of the year.

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

Although the budget revenue is reduced, thanks to the active management, the balance of the central budget and the local budgets is still guaranteed. By the end of November 2020, the Ministry of Finance had issued nearly VND 290 trillion of government bonds, with an average term of 13.81 years, average interest rate of 2.9%/year (2019 average interest rate 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 the first 11 months of 2020, (state-owned) enterprises have divested VND 979 billion, earning VND 2,031 billion. Accumulated total divestment from 2016 until November 2020 was as follows: VND 25,749 billion was divested, 173,103 billion was earned. Of which:

- State capital divestment in 103 units according to Decision No. 1232/QD-TTg dated 17 August 2017 of the Prime Minister with a book value of VND 4,966 billion earned VND 9,647 billion (reaching 30% in quantity and 8% in value compared to the plan approved by the Prime Minister).

- Divestment of state capital in non-listed enterprises according to Decision No. 1232/QD-TTg: VND 3,785 billion of state capital was divested, VND 110,392 billion was earned.

State-owned groups and corporations divested VND 16,996 billion, earning VND 53,063 billion.

3.2. Price and market management

- From the beginning of the year until now, due to the impact of the Covid-19 pandemic, natural disasters, floods, droughts, saltwater intrusion, there have been times at which a number of essential commodities such as staple food, foodstuffs, goods for the prevention and control of Covid-19 pandemic and inputs for production and business activities saw great increases in their prices. Facing this situation, the Ministry of Finance actively coordinated with ministries, sectors and localities to implement synchronous and active solutions to stabilize market prices, especially with regard to goods priced by the State; stepped up inspection of the observance of the law on prices in price declaration and consultation activities; handled violations in price management and administration. As a result, after increasing strongly in the first quarter, from April until now, the CPI has gradually decreased and is now controlled within the scope of the National Assembly's decision (below 4%).

- Gasoline and oil prices are closely monitored and adjusted in line with world gasoline and oil price fluctuations. Along with the trend of price movements in the international market, the retail prices of petroleum products in the country from the beginning of the year until now have been: adjusted down 12 times, adjusted up 07 times, kept stable 3 times (for gasoline products); adjusted down 14 times, adjusted up 07 times, kept stable 01 time (for oil products). In November 2020, the Ministry of Finance cooperated with the Ministry of Industry and Trade (the ministry in charge) to issue 02 documents regulating petroleum business, namely Document No. 8625/BCT-TTTN dated 11 November 2020 and Document No. 9067/BCT-TTTN dated 26 November 2020.

3.3. Financial market and financial services management

In the first 11 months of 2020, the Ministry of Finance focused on promoting the restructuring of the financial market, in which:

- Regarding financial market and securities market management

The Ministry of Finance continued to formulate guidelines related to the Law on Securities of 2019 as planned, continued to implement the restructuring of securities trading organizations, supervised securities trading organizations according to the CAMEL set of indicators. The Ministry of Finance also continued to perform regular management and supervision related to securities companies and fund management companies, provided support with respect to methods of reporting and disclosing information to foreign investors during the Covid-19 pandemic.

At the end of the session on 30 November 2020, the VNIndex reached 1003.08 points, up 8.4% compared to the end of the previous month and up 4.4% compared to the end of 2019; The HNX-Index reached 147.7 points, up 9.1% compared to the end of the previous month and up 44.1% compared to the end of 2019.

- Regarding the insurance market

The insurance market currently has 69 insurance businesses (including 31 non-life insurance companies, 18 life insurers, 02 reinsurance businesses and 18 insurance brokers) and 01 branch of foreign non-life insurance enterprise.

- Total assets: estimated at VND 542,757 billion (up 20% compared to the same period in 2019), of which non-life insurance businesses’ assets were estimated at VND 94,269 billion, life insurance businesses’ assets were estimated at VND 448,488 billion. .

- Re-investment into the economy: estimated at VND 449,355 billion (up 22% compared to the same period in 2019), of which non-life insurance businesses’ figure was estimated at VND 48,172 billion; life insurance businesses’ figure were estimated at VND 401,183 billion.

- Total insurance premium revenue: estimated at VND 165,781 billion (up 16% compared to the same period in 2019). The total insurance premium revenue in the non-life insurance sector were estimated at VND 54,154 billion, and the figure of the life insurance sector was estimated at VND 111,627 billion.

3.4. International cooperation, external finance and public debt management

- Regarding financial integration and cooperation:

In November 2020, the Ministry of Finance implemented a number of financial integration and cooperation activities such as: Coordinating with the Ministry of Industry and Trade in the implementation of FTA negotiations between Viet Nam and Israel; Attending the RCEP Ministerial Meeting on the sidelines of the Summit, preparing to sign the RCEP Agreement; Co-chairing the 3rd ASEAN+3 Task Force Meeting (TF3) ...

- Debt management and external finance:

+ Regarding the signing and mobilization of foreign loans of the Government: In November, the Ministry of Finance signed an agreement with AFD for the project of improving urban infrastructure to mitigate the impacts of climate change for the 04 North-Central coastal provinces which is worth USD 135 million. The Ministry of Finance also signed an agreement with JICA for the Sewerage and Wastewater Treatment Project in Ha Long City which is worth USD 107.2 million. In total, from the beginning of the year until now, The Government has signed 12 foreign loan agreements worth nearly USD 1,220 million. In November 2020, the Government withdrew about USD 124.7 million from foreign loans, of which about USD 44.9 million was allocated and about USD 79.8 million was for on-lending. Regarding 11-month accumulation, USD 1,840 million was withdrawn from ODA loans and foreign concessional loans (equivalent to about VND 42,598 billion, reaching about 41.8% of the plan), of which about USD 1,097 million was allocated, USD 743 million was for on-lending.

+ Regarding the implementation of the Government's debt repayment obligation: The Government paid about VND 25,400 billion of debts in November 2020, of which domestic debt payment was about VND 21,587 billion and foreign debt payment was about VND 3,813 billion. Regarding 11-month accumulation, the total debt payment of the Government was about VND 317,633 billion (equivalent to 86.6% of the whole year plan), of which domestic debt payment was about VND 250,305 billion and foreign debt payment was about VND 67,328 billion.

3.5. The management of state reserves

- Providing food: From the beginning of the year up to now, the Ministry of Finance has supported 127,321 tons of rice, in which: 6,460 tons of rice for Tet holiday; 20,691 tons of rice for natural disasters, floods and droughts; 5,829 tons of rice for between-harvest seasons; 17,491 tons of rice for project of afforestation; 70,850 tons of rice for students and 1000 tons of rice for Laos.

- Receiving food: From August 2020, the Ministry of Finance completed the 2020 plan of receiving food.

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

In 11 months of 2020, the Department of Finance Inspectorate and Departments having specialized inspection function under the Ministry has inspected 569,011 tax declaration documents at tax authorities and arrested 12,197 cases; proposed a financial settlement of VND 61,294,532 million (in which: VND 14,843,452 million for paying to the state budget, VND 40,958,323 million for reducing losses and settling other financial violation, VND 5,492,757 million for settling administrative violation); Inspected and examined units paid VND 10,785,764 million to the state budget.

In November 2020, the Customs authorities has chaired, discovered, arrested and handled 882 cases of violation, the value of infringing goods has been proposed VND 275.081 billion; the amount of money collected and paid to the state budget has been VND 6.55 billion; 03 cases has been prosecuted.

3.7. Administrative reform and control of administrative procedures

Up to now, 979 administrative procedures in total under the management of Ministry of Finance has been effective, including 106 level-1 online public services, 288 level-2 online public services, 192 level-3 online public services, 393 level-4 online public services. In total, 585 administrative procedures in the form of online public services are at level 3 and level 4, reached 59,7%.

II. MAJOR PLANS AND TASKS IN DECEMBER 2020

1. Mechanism and policy proposals

In December 2020, the Ministry of Finance shall develop and submit 7 proposals to the Government and the Prime Minister, and issue 43 circulars under its authority.

2. Major tasks in December 2020

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

The Ministry of Finance shall report on the implementation of state budget revenues and expenditures; report on the implementation of key solutions in directing and administering the implementation of the socio-economic development plan and the 2020 state budget estimate according to Resolution No. 01/ NQ-CP and Directive No. 11/CT-TTg dated 4 March 2020 of the Prime Minister (in December and the whole year 2020); coordinate with relevant units to complete documents detailing and guiding the implementation of the Law on Tax Administration under the authority of the Ministry of Finance; provide food for relief and aid according to the decision of the Prime Minister: 3,592.385 tons of rice for provinces affected by natural disasters and storms; 8,000 tons of rice for hunger relief; 3,000 tons of rice for projects on afforestation; 1,000 tons of rice for Laos,...

2.2. Public asset management

The Ministry of Finance shall coordinate with the Government Office to submit to the Prime Minister for issuing 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.

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

The Ministry of Finance shall organize the administration of funds, ensure the expenditure and payment needs of the State budget and departments dealing with the State Treasury; implement the electronic deposit bidding process on the budget management system; organize the bidding for government bond swap 2020 in case the market needs ...

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

The Ministry of Finance shall continue to thoroughly grasp the opinions, objectives, tasks, and solutions to arrange, innovate, develop and improve the efficiency of state-owned enterprises following the Resolution No. 12-NQ/TW dated 3 June 2017 of Meeting of the 5th Party Central Committee, term XII; Resolution No. 60/NQ-QH14 of the National Assembly. The Ministry of Finance shall develop a plan for restructuring state-owned enterprises in the period 2021 - 2025, focusing on State Corporations and Corporations, as a basis for restructuring and improving the operational efficiency of state-owned enterprises.

2.5. Price management, market stabilization

The Ministry of Finance shall actively monitor changes of petroleum prices in the world and domestic market to make a plan managing petroleum prices in December 2020; coordinate with the Ministry of Industry and Trade to regulate gasoline prices according to current regulations; 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 speed the construction of documents detailing and guiding the implementation of the Law on securities 2019; continue to implement Stock market restructuring scheme in accordance with the roadmap and regulations; support and guide enterprises affected by Covid-19 to overcome difficulties and comply with the securities law.

- The Ministry of Finance shall monitor the periodic money market situation; update the corporate bond market and inspect corporate bond issuance...

- The Ministry of Finance shall implement the construction of the Law on Insurance Business (amended).

2.7. International cooperation

In December 2020, the Ministry of Finance shall carry out a number of international cooperation activities such as: participate in developing national reports of Viet Nam for Viet Nam's trade policy review in WTO; review and provide information in the reports of the WTO Secretariat for Viet Nam's trade policy review in WTO; collect opinions on the draft working plan in 2021 to implement the MOU with the Ministry of Finance of Hungary, the Ministry of Finance of Poland, the Ministry of Finance of Taiwan.

2.8. Inspection and examination

Department of Finance Inspectorate and Departments under the Ministry having specialized in inspection shall finish the financial inspection and examination according to the approved 2020 plan; perform well its role as an assisting unit of the 389 National Steering Committee to perform regular and irregular work of the 138/CP Steering Committee in the field of customs control...

The Ministry of Finance summarized key information about the implementation of financial and budgetary tasks in November 2020, the working agenda of December 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