How is the State Treasury management reformed in the coming time?

Scene of the meeting. Photo: Nguyễn Thanh

Speaking at the conference “Renovating Treasury management function” held by Vietnam State Treasury (Ministry of Finance) on 11/3 in Hanoi, Mr. Ta Anh Tuan - General Director of Vietnam State Treasury said that: In nearly 30 years of development and growth, the system of Vietnam State Treasury has made great progress towards reform and modernization in all operation areas.

Especially, after 12 years of implementing the State Treasury Development Strategy to 2020 under the Decision No. 138/QD-TTg dated 21/8/2007 of the Prime Minister, the Vietnamese State Treasury system has already achieved significant development steps in terms of policies and professional processes; organizational structure and human resource development; modernizing management technology, especially applying advanced and modern information technology into professional processes, facilitating businesses and people...

Mr. Luu Hoang-Director of General Affairs and Legal Department (Vietnam State Treasury) assessed that: The implementation of the Strategy has achieved some results. Specifically: At first, a unit specialized in managing the state budget was established, issuing Government bonds; making cash flow forecasts and developing plans for operating quarterly and annual state budgets; completed the state budget accounting regime and professional operations of the State Treasury, based on adjusted cash accounting ...

However, some typical challenges could be mentioned: The information of revenue collection systems was discrete due to managing by many agencies; there is no connection and sharing for all revenues. In addition, the mechanism of controlling commitments has not complied with the rules; there is no expenditure control over budget tasks and programs; have not controlled on electronic expenditure; the level of inter-state information technology applications of the State Treasury is not high ...

Regarding the orientation in the future, Mr. Hoang clearly stated that on the management of the state budget fund: Building a completed system of information of revenue collection, ensuring processing and providing data on state revenue collection in real time; reforming the mechanism of control commitment...

Regarding to state accounting: Modernizing the process of making reports on revenues and expenditures, finalizing the state budget, building a uniform accounting system in accordance with the accrual concept...

Regarding to capital mobilization and budget management: Mobilizing capital to meet the demand to offset state budget overspending and repaying the state budget principal; managing the state budget proactively, safely and effectively through modern management tools,...

"In terms of information technology, the Vietnam State Treasury aimed to implement the general building of the information technology system of the State Treasury in the period of 2021-2030, in order to form a digital treasury; building a digital budget management system and states accounting that serves as the core system in the general building of information technology of the State Treasury…,” Mr. Hoang said.

Speaking at the conference, Mr. Mike Williams - International Monetary Fund Specialist (IMF) said that basically there were 3 pillars in the innovation of treasury management functions. The first is building the unified or unique treasury account. On this point Vietnam has progressed quite well and controlled resources. The second is to build a cash flow forecast. Vietnam is currently strengthening its capacity and devoting resources for this item. However, there is still a lot things to do. Thirdly, proactively managing funds.

“Vietnam has had some initial steps of thinking toward managing surpluses of budget more effectively. We turn to using funds more efficiently in order to support other financial policies, not only just about debt management and market development. However, this issue must be consulted with the State Bank, Ministry of Finance,... pushing more strongly in the future," Mr. Mike Williams said.