REVIEW
of
FINANCE -
Feb. 2018
15
units except for hospitals and schools; winding
up ineffective public units. In addition, it is
esstential to strengthen the implementation of
“socialization investment policy” in some sectors
such as healthcare, education, culture and sport
to raise capital and, on the other hand, to improve
the competitiveness in service supply chain by
encouraging different economic entities to take part
in public service supply.
Fifthly,
enhancing the management and use of
borrowing capital, ensuring loans made within
repayment capacity; strictly monitoring the loans
of state-owned enterprises and local authorities;
implementing consistently the solutions to public
debt management especially debt utilization,
medium-term debts and debt repayment funds,
management and settlement of risks, restructuring
debts; intensive management of new debts and
government guaranteed loans.
Sixthly,
further developing domestic capital
market, converting the contracted liabilities from
financial foundations to the government bond
investment to improve liquidity and flexibility of
the market. Simultaneously, it is a must to construct
mobilization mechanism on the market to create
a “stepping stone” for conversion from ODA
and preferential loans mechanism into market
conditional loans.
Seventhly,
enhancing financial corporate
governance, restructuring and equitizing state-
owned enterprises. Assessing thoroughly the
practice and categorizing state-owned enterprises,
projects, utilities and assets at enterprises toproduce
most practical and effective solutions; resolving
the practice of ineffective public enterprises and
projects. Promoting divestment in non-related or
key sectors and avoiding dispersed and scattered
investment packages, etc.
References:
1. TheGovernment’(2017)ReportNo-489/BC-CPdated22ndOctober2017on
the results of Socio-Economic Development Plan for 2017; Socio-Economic
Development Plan for 2018;
2. The Government (2017) Report No-464/BC-CP dated 18th October 2017 on
the results of State Budgeting for 2017 and Budget Plan for 2018;
3. The Ministry of Finance (2017), MOF’s monthly state budget reports;
4. The Ministry of Finance (2017) The Press Release dated 8th January of MOF
evaluating the implementation results of financial and budget duties in the
year 2017, financial and budget duties plan for 2018.
VND equivalent to 3.7% of GDP; total public debt
including deficit coverage and repayment of loan
principal will be 363.3 thousand billion VND.
To tackle challenges and successfully obtain
financial goals and duties, it is needed to implement
recommended solutions in state budgeting of 2018:
Firstly,
closely observing economic, financial and
state budget situation to produce precise forecast
and timely responsive fiscal policy; coordinating
between fiscal and monetary policies to support
enterprises and to stabilize macroeconomy;
effectively implementing and supervising the laws
of tax, state budget, public investment and public
debt management, etc.; centrally conducting the
resolutions and directives of the Congress and the
Government in terms of economic, state budget
and public debt management, etc.
Secondly,
studying the modifications and
supplements of laws and policies on tax in the
way to restructure income sources and secure
the sustainability of State budget; revising and
strengthening administration reform to create
favorable business environment. In budget receipt,
it is also necessary to coordinate between agencies
in implementing receipt; carrying out strict tax
inspection and management; strengthening the
measures to avoid losses, transfer pricing, frauds
and smuggling; settling accrued tax and recollecting
these receiveablas.
Thirdly,
continuing to apply economized and
effective spending policy; intensifying the control of
expenditure and limiting the advance allocation and
carry-over spendings; actively revising and arranging
the expenditure in an order of priority; implementing
and expanding the lump sum mechanism of public
car use to save cost and ensure efficiency, etc.; revising
andallocating thebudget bypriority toensureeffective
accomplishment of projects. Ministries, industries
and authorities need to discover the existed policy
problems to facilitate capital allocation and improve
capital distribution performance; strengthening
inspection, auditing andmonitoring the conformity in
public investment management.
Fourthly,
continuing to improve the autonomy
mechanism of the public non income-generating
agencies; implementing corporate governance
mechanism for the public non income-generating
agencies who have adequate qualifications;
implementing conditional equitization of public
