Press Release: On the implementation of 08/2019 and 09/2019 workplans 09/09/2019 03:11:00 660

on the implementation of 08/2019 and 09/2019 workplans

of the Finance Ministry

         I. REVIEW ON THE 08/2019 WORK PERFORMANCE

1. Completion of financial mechanisms and policies.

In completion of the Securities Law (amendment), the Ministry of Finance has organized workshops in Hanoi and Ho Chi Minh city to receive comments and explain the opinions of the National Assembly members on the draft.

For " Resolution of the National Assembly on handling of tax arrears, fines, fines for late payment, late payment of taxpayers that have gone bankrupt, dissolved, no longer doing business and no longer able to pay the State budget.” The Government has submitted to the National Assembly the addition to the law-making plan in 2019. At the same time, the Ministry of Finance has requested the Government to submit to this Resolution to the Standing Committee of National Assembly.

In 8/2019, the Ministry of Finance submitted 01 scheme to the Government and issued 13 Circulars.

2. The implementation of state budget estimates and administration of state budget revenue and expenditure

2.1. State budget revenue and management of state budget revenue

The total state budget revenue in August is estimated at VND 100.4 trillion. The accumulated 8-month state budget revenue is estimated at VND 997.6 trillion, equaling 70.7% of the estimate, up 12.4% over the same period in 2018, of which:

- Domestic revenue: Production - business activities of some sectors since the beginning of 2019 so far have maintained a high growth compared to the same period last year. In addition, the tax authorities continue to promote the collection, review and check the tax declaration, tax finalization of enterprises, fully and promptly collect the arising amount into the State budget; focus on recovery of tax debts; strengthening inspection over the budget revenue loss. As a result, the tax declaration and payment of enterprises in the first 8 months of 2019 are relatively positive in some major economic sectors.

The domestic market in August is estimated at VND 81.8 trillion. The accumulation of 8 months revenues is estimated at VND 808.8 trillion, equal to 68.9% of the estimate, up 13.9% over the same period in 2018 ( 64.6% of the estimate, up 17.1%).

The domestic revenues of 55/63 localities nation-wide are estimated to reach the progress (over 65%) and 59 localities having higher revenues over the same period in 2018.

- Revenue from crude oil: 4.6 trillion dong in August, based on average oil price of about 66 USD / barrel, payment volume is estimated at 1 million tons. The accumulation of 8 months is estimated at 38.78 trillion VND, equaling 87% of the estimate, down 6.8% over the same period in 2018; the amount of oil payment is estimated at 7.8 million tons, equaling to 74.8% of the plan, or 96.3% over same period in 2018.

- Income from import and export activities: estimated at VND 26.5 trillion in August. After refunding the value added tax of 13.2 trillion dong, the balance of budget revenue from import and export activities reached 13.3 trillion dong. Accumulated revenue of 8 months is estimated at 147.2 trillion VND, equaling 77.8% of the estimate, up 10.3% over the same period in 2018, based on the total tax revenue estimated at 233.1 trillion VND, equaling to 77.6% of the estimate, up 15.7% over the same period in 2018; refunding value-added tax of about 85.9 trillion VND, or 77.2% of the estimate.

The customs agency has strengthened the post-clearance inspection according, seriously implemented the specialized inspection plan and unexpected inspection tasks; closely coordinate with the competent forces to fight against loss of revenue, smuggling, trade frauds and fake goods; handling tax debts while continuing to promote reform, modernization and simplification of administrative procedures, promptly solve problems arising on customs procedures.

2.1. 1 State budget expenditure and administration of State budget spending

- State budget expenditure in August is estimated at 124.49 trillion VND; Accumulated expenditure for 8 months is VND 901.35 trillion, equal to 55.2% of the estimate, up 2.8% over the same period in 2018; of which spending for development investment reached 161.27 trillion, equaling 37.6% of the estimate, down 8.8%; for repayment of interest rate reached 76.76 trillion, equaling 61.5% of the estimate, frequent expenditure reached 649.89 trillion, with 65% of the budget, an increase of 5.8% over the same period in 2018.

- As of August 31, 2019, the State Treasury system implemented the payment control over VND 570.8 trillion of regular state budget spending, reaching 54.7% of the state budget's regular expenditure estimate through the State Treasury, disbursing 153.8 trillion of fundamental construction investment, achieving 41.5% of the capital plan allocated by competent authorities in 2019. Thereby, detecting 8100 spending that not follow procedures and regulations; not accepting payment of about VND 58 billion.  

2. 3. State budget balance and capital mobilization

The 8 month State budget balance continued to have a surplus, the Ministry of Finance took the initiative in managing the issuance of Government bonds to effectively use the state budget, while ensuring the payment sources, making timely repayment of principal debt, contributing to orientating the market development, restructuring public debt. Total issuance of Government bonds is VND 152 trillion with an average term of 13.48 years, average interest rate is 4.89% / year.

3. The implementation of key tasks

3. 1. Public asset management

The Ministry of Finance has submitted to the Government for promulgation Decree No. 69/2019 / ND-CP dated August 15, 2019 stipulating the use of public assets to make payment for the investors when implementing construction investment in the form of Build - Transfer Contract; continued to guide ministries, sectors and localities in implementing the management of public assets, criteria and limits for using cars; collecting land use fees, land rent...

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

In the first 8 months of the year, the Ministry of Finance actively coordinated with ministries, sectors and localities in reviewing and evaluating the implementation of the Party and State's policies on equitization and divestment of state capital in enterprises. By the end of August 2019, 09 enterprises have been approved by the competent authorities for the equitization plan with a total enterprise value of VND 780 billion, of which the value of state capital was VND 670 billion; 12/62 enterprises under the Prime Minister's Decision No. 1232 / QD-TTg implementing the divestments of VND 783 billion, earning VND 1,700 billion; corporations, groups, state-owned enterprises under the Decision No.1232/ QD-TTg implemented divestments of VND 2,432 billion, earned VND 4,653 billion.

3.3. Price and market management

In the first 8 months of the year, the Ministry of Finance worked closely with the concerned ministries and functional agencies to effectively implement measures to administer the prices of essential public goods and services, price management countries (healthcare, education, electricity and petrol) in order to control the price constituents and the market price level, prevent sudden and unreasonable price increases; strengthen inspection, closely monitor the observance of the legislation on prices, valuation, registration activities and declaration of businesses; proactively take measures to promptly handle items with strong seasonal price fluctuations (education services in the new school-year, confectionery products in the mid-autumn...). Thereby, stabilizing prices of goods and services in the country.

3.4. Management of financial market and financial services

- Securities market: As of 30th August 2019, the VN-Index reached 984.06 points, up 10.3% compared to 2018; Market capitalization reached approximately 81.6%, an increase of 14% compared to the end of 2018.

- Insurance market: Total value of asset insurance in the first 8 months is estimated at approximately VND 438 trillion, up 19.8 % over the same period in 2018; Reinvestment in the economy is estimated at 366.9 trillion, up 26.5%; Total premium insurance revenue reached about VND 100 trillion, up 23.6%;  insurance benefit expenditure is estimated at 25.3 trillion, an increase of 8.6% over the same period in 2018.

3. 5. International cooperation

In August 2019, the Ministry of Finance carried out a number of activities on integration and financial cooperation: Working with the World Bank’s Economic Cooperation mission on supporting the development of the medium-term tax strategy 2021-2025 ...

3. 6. External finance and public debt management

In the first 8 months of 2019, the Ministry of Finance signed 5 foreign loan agreements (4 agreements with ADB, 1 agreement with OFID), totaling about USD 463 million. 

As of August 20, 2019, disbursement of ODA capital and foreign concessional loans was 74 million USD.  From the beginning of 2019 to August 20, 2019, the accumulated disbursement of ODA capital and foreign preferential loans in 2019 was US $ 1,322 million, equivalent to VND 30,494 billion.

Government debt repayment in August 2019 is VND 5,389 billion, of which VND 4,315 billion is domestic debt repayment, about VND 1,074 billion is paid from foreign debt. In the first 8 months, the Government's debt payment is VND 213,142 billion, in which domestic debt payment is VND 180,025 billion, foreign debt payment is VND 33,117 billion dong . The Government's debt repayment obligations are basically paid in time and there is no delayed payment.

3.7. State reserve management

In August 2019, the General Department of State Reserve has issued a total of 40,903.53 tons of rice . As of 20/8/2019, the General Department of State Reserve has assigned the local State Reserve Units to issue 100,998.747 tons of rice.

3. 8. Inspection, anti-smuggling and trade fraud

In the first 8 months of 2019, the financial sector has conducted 315,954 inspections, examinations and sanctions of administrative violations at more than VND 2,406 billion; The amount of money collected and paid to the state budget is more than VND 7,046 billion.

By the end of August 2019, the tax authority has conducted inspections over nearly 280,000 tax records and 55.7 thousand tax examinations at the enterprise, proposing settlement of approximately VND 32.7 trillion, of which required to pay for the state budget of VND 8.92 trillion (to date, actual amount is VND 5.74 trillion), deduct nearly 1.4 trillion dong, reduce loss of VND 22.39 trillion.

Regarding the prevention of commercial frauds, counterfeit goods, as from December 16, 2018 to August 15, 2019, the whole Customs sector has discovered and seized 11,640 cases of customs violations, worth nearly VND 2,036 billion, contributing more than VND 212 billion to the state budget revenue; Customs authority has issued 26 decisions to prosecute, transferring the proposal of 65 cases to other agencies.

II. MAJOR WORKPLAN IN SEPTEMBER 2019

1. Mechanisms and policies

Regarding”Resolution of the National Assembly on handling of tax arrears, fines for late payment, and late payment of taxpayers that have gone bankrupt, dissolved, and no longer able to pay the State budget. ”  The Ministry of Finance shall coordinate with relevant National Assembly agencies to finalize the draft Resolution and submit it to competent authorities for consideration and approval.

Under the program, in May 9/2019, the Ministry of Finance has submitted the Government, the Prime Minister 11 Projects and composed under the authority of 30 circulars.

2. Some key tasks in September in 2019

2.1. Implementation of state budget estimates and administration of state budget revenues and expenditures

- Complete the Decision amending and supplementing Prime Minister Decision No. 01/2016/QD-TTg dated 19/1/2016 on mechanisms and processes for financial assistance to localities to overcome the consequences of natural disasters ; report to the competent authorities on evaluating the implementation of the state budget in 2019, the state budget estimates in 2020, the financial plan and the budget for 3 years from 2020 to 2022, evaluation of the implementation of the financial plan in 2019,2020 financial plan of off-budget financial funds under central management.

- Compose the legal documents guiding the implementation of the Tax Administration Law No. 38/2019 / QH14; carry out duties implemented state budget revenues in the last months.

- Accelerate the work to advise, supervise, coordinate among ministries in implementing the Master Plan for realizing National Single Window, ASEAN National Single Window and facilitate trade under the Prime Minister Decision 1254 / QD -TTg dated 26/9/2018 the conclusion of Deputy Prime Minister Vuong Dinh Hue at the 5 session of the Steering Committee 1899.

- Guide the local State Treasury to check, rectify and standardize the state budget data in 2018, 2019.

- Participate with MPI in the evaluating capital sources of projects supported from the local reserve capital of 10% of and mid-term reserve of 2016-2020; Incorporate the September disbursement report to submit to the Prime Minister, the development investment capital plan, State budget plans in 2019 of the Ministry and sectors; finalize the data of mid-term public investment plan 2016-2020 and annual plan. ..

- Urge the relevant units to issue rice to support localities, students in the first semester of the school year 2019-2020 according to the allocation and receipt plan of the provincial People's Committees; implement food purchase under the annual t rotation plan of 2019.

2. 2. Public asset management

Coordinate with the Government Office to complete the procedures and submit to the Prime Minister for promulgating 01 scheme: Decree amending Article 16 of Government Decree No. 45/2014 / ND-CP dated May 15, 2014 the on debit of land use; submit to the Prime Minister for promulgating a Directive to instruct ministries, sectors and localities to strictly implement the provisions of the Law on Management and Use of Public Assets; continue to guide ministries, sectors and localities to implement the management and use of public assets; re-arrange and handle state-owned houses and land; implement the National Database Upgrading Project on public assets.

2. 3. Administration of budget, capital mobilization, public debt

- Organize the administration of funds, ensure the payment needs of the State budget and units dealing with the State Treasury; coordinate with the Ministry of Public Security to build databases of administrative violations in the field of transport, data connection with the State Treasury and commercial banks to exchange information, electronic data and create favorable conditions for penalty payer ...

- Finalize the Circular guiding Decree No. 132/2018 / ND-CP replacing Circular No. 111/2016 / TT-BTC providing regulations on financial management of programs and projects funded by official development assistance (ODA) and concessional loans of foreign donors; prepare a Government Report on the situation of public debt to be submitted to the 8th Session, National Assembly XIV; prepare a 1-year evaluation report on implementation of the Law on Public Debt Management.

2.4. Management of corporate finance and SOE equitization

Review and synthesize the situation of management and use of state capital in enterprises nationwide in 2018 according to Law No. 69/2014 / QH13; Focus on submitting to competent authorities the mechanisms and policies related to the assigned fields.

2. 5.  Management of prices and market stabilization

Proactively monitor changes in world and domestic petroleum prices and report to the Ministry on the petrol price management in the first 9 months of 2019 and September 2019; coordinate with the Ministry of Industry and Trade to regulate petrol prices in accordance with current regulations…

2. 6. Management of financial market and financial services

- Improve the draft Securities Law (amended) as planned; complete the guiding documents of Decree 60/2015/ND-CP and other relevant legal documents; conduct inspection teams for public companies and securities businesses, strictly handling violations based on examination and supervision...

- Coordinate with the concerned agencies to implement construction projects related to the insurance sector under the registered program, research projects on amending and supplementing the Law on Insurance Business; Prime Minister's decision on agricultural insurance; Law amending and supplementing a number of articles of the Law on Insurance Business, the Law on Intellectual Property...

- Continue to develop projects and policies related to the registered banking and finance sector; advise to regulate issuance interest rates of government bonds; implement the settlement of interest rate difference and management fees in 2018 of social policy banks.

2. 7. International cooperation

Prepare the participation in mid-term RCEP Ministerial Meeting in Thailand;  APEC Finance conference in 10/2019; Attend the ASEAN + 3 Working Group Meeting; Submit the Scheme of ASEAN Presidency 2020 to the National Committee

2. 8. Inspection tasks

The Ministry Inspectorate and inspection specialized under the Ministry continue to conduct inspections under the approved 2019 plan.

 Above is a summary of information about the implementation of financial tasks - the state budget in August 2019 and tentative workplan of the Ministry of Finance in September 2019. The Ministry of Finance requests press agencies to coordinate in communications. /.