Deputy Minister of Finance Vu Thi Mai: Promoting achievements, preparing to deploy the plan for the next period

	Vietnam – US signs an agreement on mutual assistance in customs
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	Deputy Minister of Finance Vu Thi Mai asks Customs sector to strive to exceed 5 percent of the revenue target

Deputy Minister of Finance Vu Thi Mai

As the world and country facemany advantages but also many challenges, would you please summarize the outstanding results of State budget revenue and expenditure in 2019? What do these results mean for the socio-economic development of the whole country?

2019 has passed with many challenges. Theworld economy and global trade slowed down; increased strategic competition and trade tensions among major economies; gold prices soar, crude oil prices fluctuate sharply; risks in the international market increase; many countries loosen financial and monetary policies.The situation in the region and the East Sea is very complicated. Meanwhile, the internal economy also faces difficulties and limitations such as natural disasters, climate change and epidemics, greatly affecting production and people's lives. However, with the care and guidance of the Party and State leaders, coordination atall levels, central and local agencies, with great efforts, the finance sector has completely fulfilled its assigned tasks, contributing to the socio-economic results of the country in 2019.

The first success to be mentioned is the state budget balance. The state budget revenue in 2019 is estimated to exceed 5% of the estimate assigned by the National Assembly, and this is the fourth consecutive year the Ministry of Finance has exceeded the state budget revenue estimate assigned by the National Assembly (from 2016 to present).

The structure of state budget revenue has shifted positively, such as: the proportion of domestic revenue has increased, the proportion of revenue from crude oil and import-export activities has gradually decreased, thereby showing the sustainability of state budget revenue. Continuing to exceed the state budget revenue is very important for ensuring the State's spending tasks, thereby contributing to the good implementation of the 5-year Financial Plan for the 2016-2020 period.

State budget expenditure is strictly, economically and effectively implemented. The structure of state budget spending also changes positively towards increasing spending on development and reducing recurrent expenditure. Indicators of the State budget deficit and public debt are always strictly controlled, effectively and within the limits allowed by the National Assembly. The state budget deficit in 2019 decreased to 3.4% of GDP (this index in 2018 was 3.46% of GDP, the estimate assigned by the National Assembly was 3.6% of GDP). The public debt ratio in 2019 also decreased to 56.1% of GDP, of which the Government debt is 49.2%, the country's foreign debt is 45.8%, both lower than the target assigned by the National Assembly in the Plan. The 5-year finance for the 2016-2020 period shall not exceed 65%, 54% and 50% of GDP, respectively.

Along with that, the structure of public debt has seenmany positive changes towards sustainability. Specifically, diversifying government bond investors, reducing the proportion of bonds held by commercial banks to 47%; increasing the holding proportion of other financial institutions to 53%; issuing bonds with long terms of 5 years or more (including long term bonds of 20-30 years), reducing deposit rates.

The right and full collection of state budget revenue, active implementation of measures to combat loss of revenue, and strict control of the rate of state budget deficit and public debt have made important contributions to macroeconomic stability and improved the national trust ranking and ensured the safety of the country's finances.

Another year shows the determination of the Government, Prime Minister, ministries and branches in administrative reform, creating a favorable business and investment environment. Could you share some outstanding results of the finance sector in this field to benefit people and businesses?

In 2019, the Government focused on implementing synchronous solutions to improve the business investment environment, creating favorable conditions for people and businesses; especially simplifying and cutting administrative procedures, saving costs for businesses, supporting access to market resources, land and ground.

For the finance sector, in the past year, drastically and synchronously implemented solutions from institutional reform, administrative procedure reform, and organizational structure reform to modernization of management in order to create favorable conditions for people and businesses when carrying out administrative procedures in the field of finance.

Regarding institutional reforms, creating a favorable business investment environment, the finance sector has actively reformed modernization, continued to explore and implemented many solutions to create favorable conditions for people and businesses.

In the field of taxation, electronic tax declaration and payment services have been implemented at 100% of Tax Departments in 63 provinces and cities with more than 99% of enterprises participating; over 93% of enterprises participate in electronic tax refund; pilot electronic code invoice system of tax authorities in Hanoi, Ho Chi Minh City and Da Nang City.

In Customs, continue to effectively implement the National Single Window andASEAN Single Window. Accordingly, it has connected 188 administrative procedures of 13 ministries and branches on the national single-window portal and exchanged form-D C/O information with 6 ASEAN countries; upgraded the VNACCS/VCIS system and centralized processing systems of Customs; Automated customs management system at ports, warehouses and yards (VASSCM) at seaports.

In addition, the Finance sector has reviewed and arranged the entire system towards effectiveness and efficiency. As a result, since2017, the whole sector has arranged and cut 4,026 focal points from central to local levels, specifically: 2 department-level organizations under Departments/Departments of the Ministry, 30 divisions belonging to the General Department, 485 organizations at district level and 3,099 units at the local Department level. As for the Customs system alone, by the year 2019, 14 arrangements have been made to reduce Customs Sub-Departments under Customs Departments of provinces, inter-provinces and cities; while 239 teamswere reduced.

Along with that, reducing the payroll so that by 2020, the payroll assignment will comply with the regulations of 67,802 targets, 6,460 payrolls, equivalent to an 8.7% decrease compared to 2015.

With the above-mentioned efforts in administrative reform, the Ministry of Finance's results have been recorded and highly appreciated, specifically: Ranked 2 out of 18 ministries and ministerial-level agencies on the PAR Index 2018 announced by the PAR Steering Committee of the Government; For 7 consecutive years (from 2013 - 2019) leading the Vietnam ICT Index (the index of information technology development and application) in ministries and branches, in collaboration with the Ministry of Information and Communications Vietnamese informatics reviews and publishes; Vietnam's tax payment index in the annual report on business environment in 2020 published by the World Bank had a strong reform and increased the highest ranking among 10 indices (up 22 grades from 131 to 109 out of 190 countries); the satisfaction level of businesses on tax administrative procedures in 2019 reached nearly 78% (an increase of 3 percentage points compared to the survey in 2016 and an increase of 7 points compared to 2014).

2020 is especially important for the implementation of the 5-year Financial Plan for the period 2016-2020. What will the Finance sector do to achieve the set objectives, together with the country successfully completing the Socio-Economic Development Plan 2016-2020, Deputy Minister? In your opinion, what should the Customs sector do to set goals in the next stage?

The domestic and international situation in 2020 is expected to face many difficulties and challenges. In order to successfully complete the tasks of finance and State budget in 2020, the Ministry of Finance will actively coordinate with ministries, branches and localities to focus on implementing important tasks.

First of all, continue to improve the institutions, especially in the fields of taxation, corporate finance, securities, insurance, and renovation of public non-business units; promoting administrative reform and modernization, contributing to continue improving the business environment, better serving people and businesses; organize the implementation of the Tax Administration Law (amended), effective from July 1, 2020 and the task of state budget collection in 2020; determine to collect and exceed the estimates assigned by the National Assembly to complete the five-year revenue estimates.

Along with that, organize the management of State budget spending strictly, economically and according to regulations; improve the efficiency of budget use; strengthen the management and strict control of public debt, Government debt, national foreign debt and local government debt. At the same time, tighten financial and fiscal discipline in law-making and official service; strengthening the inspection, examination, supervision and transparency in state budget revenue and expenditure, capital construction investment, management and use of public assets, land, natural resources and minerals, strictly implement the inspection and audit conclusions.

In addition, strengthening the management of prices and markets; continue to synchronously develop financial market types; promote restructuring and equitization of SOEs; continue reviewing and reorganizing the effective and efficient apparatus and promoting the renovation of financial mechanisms of public non-business units and the price of public services; proactive cooperation, international financial integration; implement administrative reform, build e-government to create favorable conditions for people and businesses.

Especially, preparing conditions and organizing the elaboration of the socio-economic development plan and the next 5-year state budget estimate as well as the 3-year financial plan and 3-year state budget close to reality and feasibility.

So far, Vietnam Customs has basically completed the important goals set out in the Customs Development Strategy to 2020 and the goals in developing e-government for the period 2019-2020.

In the context of world political and economic fluctuations, especially trade wars between major countries, while Vietnam has deeply integrated with the world, so in 2020 the task set out with the General Department of Customs is very difficult.

The General Department of Customs should focus on performing key tasks:

Continue to perform the task of State budget collection with respect to import and export activities, exceeding the assigned revenue estimate; administrative procedure reform and customs modernization.

In particular, focus on building and perfecting institutions and policies; reviewing and completing the objectives of the Customs Development Strategy to 2020; expeditiously complete and implement the scheme on overall redesign of information technology systems of the Customs in association with the objectives and tasks of implementinge-Government; formulate a Customs Development Strategy to 2030, with a vision to 2045; continue to perform the role of the Standing Agency of the National Steering Committee on ASEAN Single Window, National Single Window and Trade Facilitation (Steering Committee 1899) associated with the development of the project on reform and unify the specialized inspection activities at the border gates.

Focus on fulfilling the master role in the fight against smuggling, trade fraudand illegal cross-border transportation of goods, especially focusing on combating origin fraudand illegal transportation,goods showing signs of violation of Vietnam's sovereignty; combating transnational drug crimes, which needs to promote domestic coordination and international cooperation. To build a professional, modern, clean and strong Customs force to meet the assigned task requirements.

Thank you Deputy Minister!