Minister Ho Duc Phoc: The finance sector is proactive and creative, making efforts to fulfill the "dual task"

The MInistry of Finance Ho Duc Phoc make a speech at the conference.

Five pillars of the finance sector

According to Minister of Finance Ho Duc Phoc, facing the challenge of the Covid-19 pandemic, witnessing the high inflationary pressure of oil prices, rising input material prices, economic stimulus packages of countries, and the Covid-19 pandemic have created pressure that required the Finance industry to strive to overcome.

In the first six months of 2021, Vietnam's economic growth reached 5.64%. This result affected the revenue collection in the first half of the year. With the efforts of the whole sector and the support of ministries, sectors and local governments, the state revenue collection of the Finance sector reached 58.2% of current appropriation, increasing by 16.3% over the same period in 2020.

In which, revenue collected from production and business activities reached over 52% of the current appropriation and increased by over 17% over the same period last year, such as: revenue collection from the SOE sector reached 52.8% of current appropriation, an increase of 17.8 %; revenue collected from FDI enterprises reached 57.7% of current appropriation, climbing 19.9%; revenue collected from the non-state economic sector reached 59.3% of current appropriation, rising by 39.6% over the same period last year.

However, the minister stated that the Finance sector was facing a great challenge when the Covid-19 pandemic broke out again in late April, causing a decrease of VND32 trillion in revenue collection in May, a decrease of VND40,000 billion in June, it is forecasted that in July and the following months, revenue collection would continue to be affected.

From now until the end of the year, the state revenue collection will face many difficulties, affecting the budget expenditure targets, so the Minister affirmed the Finance sector must operate the fiscal policy proactively, cut expenses for conferences, recurrent expenses, issue government bonds to balance the budget, strive to complete the tasks.

At the same time, the Finance sector must actively and creatively advise Party and State leaders to manage the economy to overcome difficulties and maintain the dual tasks of pandemic prevention and developing the economy.

The Minister emphasized that the Ministry of Finance was managing the finance - budget and issuing policies. Promulgating policies for the development of state finance, enterprises, and residential finance, promoting economic development, creating savings and state budget, thereby developing sustainably and stably, reducing dependence on foreign debt and public debt.

Minister Ho Duc Phoc said that five pillars of the finance sector need to be focused on achieving, that is, perfecting the institution; managing fiscal policy, strictly managing public debt; managing the securities, insurance and public property markets; national reserve; anti-smuggling; thrift and preventing waste.

Creativity, creating breakthroughs for development

In terms of institutions, the Minister said that in the first six months of the year, out of 17 decrees issued by the Government, the number of decrees chaired by the Ministry of Finance accounted for 42%, of which some decrees are considered to pave the way for the country's development and releasing resources, such as: Decree 60 on the financial mechanism of public non-business units to remove difficulties and obstacles in terms of development funds, joint ventures, and autonomy; Decree 67 replaces Decree 167 to release huge resources that have been stuck in the past.

In terms of public debt management, in the first six months, the Ministry of Finance issued VND141.5 trillion of government bonds to restructure public debt, offset budget deficit with low interest rate of 2.26%/year and long term.

In management work, the financial market and the insurance market developed stably. The stock market recently had a phenomenon of order congestion, but it was overcome by the State Securities Commission and the Ho Chi Minh City Stock Exchange.

“Currently, the stock market was very good, the trading index was up, the market capitalization was VND6,838 billion, the average trading value was VND32 trillion/session. However, it should be warned about the issuance of unsecured bonds, controlling loss-making enterprises in bond issuance, managing joint-stock companies with foreign capital in issuing bonds and stocks to ensure a transparent stock market,” the Minister noted.

In terms of administrative procedure reform, the Ministry of Finance abolished 197 procedures, amended and supplemented 320 reporting regimes, cut down business conditions, the Ministry of Finance's PAR index ranked second in the list of administrative reform of ministries and branches.

Regarding apparatus arrangement, the Ministry of Finance has reduced 4,343 focal points and dissolved nine non-business units. In the future, the Ministry of Finance will continue to narrow the focal points and apply information technology in reforming administrative procedures.

Affirming that the anti-smuggling work was also done very well by the Customs sector, the Minister said that the finance sector would strengthen inspection work in the future, especially tax inspection and anti-smuggling, thrift and preventing waste.

“The Ministry of Finance would continue to focus on implementing the direction of the Party, State, Government and government leaders. During this difficult period, the financial sector had not only "tightened its belt" but also been creative and created breakthroughs for the country's development," the Minister said.

At the same time, the Minister expressed his wish that the leaders of the Government and ministries, sectors and local governments continue to stand side by side, direct and support to work with the Finance sector to complete the assigned tasks.