Capital mobilization reaches good result thanks to policy adjustment in a timely fashion

The Press Conference Photo: Thuy Linh

It was confirmed by Mr.Nguyen Quang Vinh, the Deputy Director General of the State Treasury at the Press Conference on the result of operations in 2016 of the State Treasury which was held on December 12, 2016.

Capital mobilization reaches the target

As reported by the State Treasury, capital mobilization in 2016 achieved positive results. Until the end of December 7, 2016, the total of capital mobilization reached over 281,294 billion vnd (equal to 1.08 times of the total issued volume in 2015) and completed the task of 2016 which was assigned by the National Assembly and the Ministry of Finance.

According to Ms. Trinh Thi Van Anh, the Deputy Director of the Funds Management Department, capital mobilization in 2016 achieved positive results due to many reasons. The objective reasons are mainly due to the macroeconomic context in 2016 under the drastic management of the Government which are relatively stable, and inflation and interest rates are low.

Besides, in 2106, a number of policies related to capital mobilization were amended in a timely fashion, especially the State Bank issued Circular No.06/2016/TT-NHNN amending and supplementing a number of articles of Circular No. 36/2014/TT-NHNN related to the stipulation on the ratio and limit for bond investment of Commercial Banks and Credit organizations. Especially, it allows for easing of the investment ratio, so these organizations have more advantages in accessing Government bonds.

Moreover, due to the stable economy, investors are more interested in investing in Vietnam and the rate of foreign investors in 2016, increased 12% compared to 8.5% in 2015.

In the favorable context of capital mobilization, to September 15, 2016, the State Treasury completed 250,000 billion vnd of capital mobilization which was assigned by the Ministry of Finance. Ms. Van said, with the capital mobilization for development investment, the Ministry of Finance mobilized from many different sources and channels and the Government bonds was one of these channels. Thanks to the good capital mobilization, the Ministry of Finance adjusted to raise an additional 31,000 billion vnd; the rate of capital mobilization on one side to avoid mobilizing through other channels, on the other side to have regular supply of Government bonds in the market.

Actively promoting the disbursement of capital

In 2016, the disbursement of investment capital met many difficulties and obstacles so in the first 6 month of 2016 the progress of disbursement was still slow. Explaining this issue, Mr.Vu Duc Hiep, the Director of the Expenditure Control Department said, 2016 is the first year implementing the Law on Public Investment (taking effect form 2016 and officially implemented from 2016) so we had obstacles on dossier procedures, and the assessment stage, especially in the first few months. However, after the government issued Resolution No. 60/ND-CP, the Ministry of Construction and the Ministry of Planning and Investment and the Ministry of Finance collaborated to amend the policies and models of the Board of Project management, the procedures of expenditure control, and estimate allocation. Since then, the progress of disbursement in the last months of the year has been relatively good and accounts for the high rate compared to the first 6 months of 2016.

Mr. Vu Duc Hien shared, with the drastic measures of the Government in promoting the progress of disbursement of public investment capital, the Ministry of Finance has directed the State Treasury and the Director General of the State Treasury to request provincial State Treasuries to strictly perform these tasks and ensure the capital source is available at all times everywhere.

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“Capital source is always available from the Central to the local and never insufficient for payment. However, local authorities must resolve the difficulties and collaborate with investors to review exactly all the data for investors to adjust in a timely fashion and prevent the capital backlog for any reason”. Mr. Hiep confirmed.