Decision 368/QD-TTg 2022 approving the Financial Strategy until 2030

DECISION

Approving the Financial Strategy up to 2030^[1]

THE PRIME MINISTER

Pursuant to the June 19, 2015 Law on Government Organization; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Government;

Pursuant to the Government’s Decree No. 87/2017/ND-CP of July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Resolution No. 50/NQ-CP of May 20, 2021, on the Government’s Program of Action to implement the Resolution of the 13^th National Party Congress;

Pursuant to the National Assembly’s Resolution No. 16/2021/QH15 of July 27, 2021, on the 2021-2025 five-year socio-economic development plan;

Pursuant to the National Assembly’s Resolution No. 23/2021/QH15 of July 28, 2021, on the 2021-2025 five-year plan on national finances and public debt borrowing and repayment;

Pursuant to Resolution No. 43/2022/QH15 of January 11, 2022, on fiscal and monetary policies to support the Program of socio-economic recovery and development;

At the proposal of the Minister of Finance,

DECIDES:

Article 1. To approve the Financial Strategy up to 2030 (below referred to as the Strategy) with the following major contents:

I. VIEWPOINTS, OBJECTIVES AND TASKS

1. Viewpoints

The formulation and implementation of the Strategy adhere to the following key viewpoints:

a/ The national financial policy plays a pioneering role in mobilizing, liberating, and orienting the effective allocation and use of, domestic and foreign resources to prioritized socio-economic development objectives, contributing to renewing growth model and improving growth quality on the basis of human resource development, science and technology, innovation and digital transformation.

b/ Reforming and improving the quality of financial institutions in the direction of synchronization, transparency and integration are prerequisites for promoting the healthy development of the national financial system; to synchronously and effectively use the tools of fiscal policy in close coordination with the monetary policy and other policies in controlling inflation, stabilizing the macro-economy, ensuring major balances of the economy, and creating favorable environment and conditions for rapid and sustainable development; at the same time, to attach importance to the synchronous and harmonious development of markets, economic sectors and enterprises of assorted types; to consider development of the private economic sector an important driving force of the economy.

c/ State budget restructuring and public debt management must be placed within the overall economic restructuring, ensuring the leading role of the central budget and the proactiveness of local budgets; to improve the efficiency of mobilization and use of state budget resources to lead and activate other resources; to bring into full play the advantages of regions and areas; to balance resources for ensuring harmony in economic and social development, environmental protection, and climate change adaptation.

d/ To conduct financial management by law, strengthen financial order and discipline; to improve the quality of inspection, examination, and corruption and waste prevention and fighting; to promote the application of information technology and digital financial platforms, and continue to modernize the finance sector.

2. Overall objectives

To build a sustainably developed, modern and integrated national financial system, contributing to promoting growth and enhancing the resilience of the economy, ensuring macroeconomic stability and national financial security. To implement reasonable mobilization policies, improve fiscal space, and create favorable conditions to effectively mobilize, allocate and use financial resources, harmoniously solve economic development and social and environmental issues, and ensure national defense and social security in association with the objectives and tasks of the 2021-2030 ten-year socio-economic development strategy.

3. Specific objectives and tasks

a/ Ensuring financial and budgetary resources to contribute to the realization of objectives and tasks regarding socio-economic development and security and national defense

- The rate of mobilization into the state budget will not be lower than 16% of GDP on average during 2021-2025 and reach 16-17% of GDP during 2026-2030, of which, the rate of mobilization from taxes and charges will be 13-14% of GDP and 14-15% of GDP during 2021-2025 and 2026-2030, respectively.

- The proportion of domestic revenues in the total state budget revenues will be 85-86% and 86-87% by 2025 and 2030, respectively.

b/ Effectively managing state budget expenditures; continuing to restructure state budget expenditures toward sustainability; prioritizing spending on development investment and allocating resources for debt repayment, increasing state budget resources for national reserves, and increasing spending on human development investment and social security assurance.

- In the  2021-2025 period, the proportion of recurrent expenditures and the proportion of development investment expenditures in the total state budget expenditures will be 62-63% and about 28% on average, respectively. To strive to increase the proportion of development investment expenditures to about 29% and reduce the proportion of recurrent expenditures to about 60%. During 2026-2030, to continue to save recurrent expenditures, and increase accumulations from the state budget for spending on development investment.

- In the 2021-2030 period, to prioritize allocation of state budget funds to strengthen the national reserves potential in conformity with the state budget’s capacity so as to be ready to quickly and effectively respond to unexpected and urgent circumstances and well fulfill the tasks assigned by the Government and Prime Minister.

c/ Gradually reducing the state budget deficit; strictly managing public debts, and ensuring public debt safety and national financial security

- To strive to increase revenues, save spending, and reduce the state budget deficit in order to reach the budget deficit target of around 3.7% of GDP on average as stated in the 2021-2025 five-year plan on national finances and public debt borrowing and repayment; by 2030, this target is about 3% of GDP. In case of great fluctuations or risks, the Ministry of Finance shall promptly report them to the Government for submission to the National Assembly for consideration and decision.

In the 2021-2025 period, the annual public debts will not exceed 60% of GDP, government debts, 50% of GDP, and national foreign debts, 50% of GDP. By 2030, public debts will not exceed 60% of GDP, government debts, 50% of GDP, and national foreign debts, 45% of GDP.

d/ Synchronously, transparently and sustainably developing the financial market and financial services

- To develop a stable securities market with a reasonable structure, operating safely and efficiently, ensuring the balance between the monetary market and the capital market and between the stock market and bond market and the derivative securities market. By 2025, the stock market capitalization will reach 100% of GDP; the bond market’s outstanding debts will reach at least 47% of GDP, of which the corporate bond market’s outstanding debts will reach at least 20% of GDP. By 2030, the stock market capitalization will reach 120% of GDP; the bond market’s outstanding debts will reach at least 58% of GDP, of which the corporate bond market’s outstanding debts will reach at least 25% of GDP.

- To comprehensively develop the insurance market to meet diverse insurance needs of organizations and individuals in the economy. The insurance industry’s revenue will grow by 15%/year and 10%/year during 2021-2025 and 2026-2030, respectively, reaching 3-3.3% of GDP by 2025 and 3.3-3.5% of GDP by 2030.

- To stably develop the accounting and audit service market and improve the quality of accounting and audit services. By 2025, 100% of large-sized enterprises and units, regardless of their operational mode and form of ownership, will have their financial statements audited.

- To increase transparency in price appraisal and step by step increase price appraisal capacity and quality.

dd/ Accelerating the renovation of the financial mechanism for the public non-business sector; restructuring, and improving the operational efficiency of, state-owned enterprises

- To improve the institutions on renovation of the management mechanism and financial mechanism applicable to, and reorganization of, the system of public non-business units; to complete the roadmap for calculating charges of public non-business services in a number of basic fields. In the 2021-2025 period, direct spendings from the state budget for public non-business units will reduce by an average of 10% compared to the 2016-2020’s figure. In the 2026-2030 period, direct spendings from the state budget for public non-business units will reduce by 15% compared to the 2021-2025’s figure.

- By 2025, to complete the task of restructuring state-owned enterprises. By 2030, to consolidate and develop a number of large-scale state economic groups that operate efficiently and are capable of competing in the regional and international markets in a number of key sectors and fields of the economy.

e/ Promoting the implementation of the mechanism of price management and administration according to the market mechanism under the State’s regulation

To continue renewing and improving the method of price management and administration according to the market mechanism under the State’s regulation; to accelerate the implementation of market prices for a number of goods and public services. By 2025, to complete the building of a national database on price, ensuring data connectivity to ministries, sectors and localities.

g/ Promoting the application of information technology and digital financial platform and modernizing the national financial system

- To build a public, transparent and effective integrated tax administration information system.

- To build a regular and modern Vietnam Customs force on a par with the customs of developed countries in the world, which will take the lead in realizing the Digital Government with the models of Digital Customs and Smart Customs.

- To develop a digital budget management and state accounting information system, contributing to the formation of a Digital Treasury by 2030.

- To accelerate the modernization of information technology application in management of national reserves and management and supervision of the securities market toward modernity and efficiency.

II. BREAKTHROUGHS OF THE STRATEGY

1. To step up the improvement and raise the quality of financial institutions to ensure completeness, consistency and integration; to renovate the mechanism of decentralization of state budget management and allocation to ensure the leading role of the central budget and the proactiveness of local budgets; to restructure the state budget and develop a modern, transparent and sustainable financial market.

2. To renew financial mechanisms and policies for human resource development, science and technology, and innovation. To promote modernization and development of a digital financial platform on the basis of information technology application associated with digital transformation.

3. To unblock and promote financial potentials for development of the socio-economic infrastructure system; to prioritize resources for performance of the tasks of economic restoration and development.

III. SOLUTIONS FOR IMPLEMENTATION OF THE STRATEGY

1. Completing policies on mobilization of national financial resources, improving the effectiveness and effect of state budget revenue management

a/ To continue improving the system of policies on state budget collection toward consistency and sustainable structure, ensuring the rational mobilization of resources for the state budget and contributing to creating a competitive environment suitable to the economic integration and development process

To improve the system of budget collection policies in association with restructuring state budget revenues in the direction of covering revenue sources and expanding revenue bases, especially new revenue sources, in conformity with reality, integration commitments and good international practices. To research and develop reasonable tax rates, ensuring the fairness and neutrality of the tax policy system. To increase the proportion of domestic revenues in the total state budget revenues, ensuring a reasonable proportion between indirect taxes and direct taxes. To review and adjust tax incentive policies, removing tax incentives that no longer meet development requirements; to minimize the integration of social policies in taxes and revenue items. To implement tax solutions to support enterprises and people to overcome difficulties caused by the Covid-19 pandemic, recover and develop the economy, and ensure finance-state budget balance.

To improve tax mechanisms and policies to encourage the development of science, technology and innovation in line with the goal of promoting the development and application of new technologies and technologies prioritized for development, and construction and development of national innovation centers.

To improve the policy of budget collection with regard to land, property and natural resources; to adopt appropriate mechanisms to exploit resources from land for socio-economic infrastructure development. In particular, to continue applying the policy on agricultural land use tax exemption and reduction through the end of 2025 in accordance with the Party’s and State’s guidelines on agricultural, farmer and rural development. To study improving the non-agricultural land use tax policy toward increasing rates of land-related taxes and adding house-related taxes in order to encourage effective use of houses and land, contributing to restricting house and land speculation, and ensuring rational and stable mobilization of revenue sources for the state budget in line with Vietnam’s socio-economic conditions and international practices. To develop tax administration policies associated with housing and land management of related ministries and sectors. To study the regulation of the added value from land that is not brought about by investment of land users through tax policies and collection of land use levy and land rental. To study the revision of the royalty policy, ensuring that the royalty policy continues to serve as an effective tool to contribute to the management and protection of natural resources and encourage the economical and efficient use of resources.

b/ Increasing mobilization of non-state budget resources

To continue improving the legal framework on investment in the form of public-private partnership (PPP), encouraging the participation of all economic sectors in investment in development of economic and technical infrastructure, investment in agriculture and rural areas, especially projects applying high technologies and clean technologies, projects on development of green economy, organic agriculture and biological agriculture, and investment projects in extremely difficult areas.

To improve the foreign investment attraction policy, shifting the focus of the foreign investment attraction and cooperation policy from quantity to quality; to prioritize projects that are capable of creating high added value, apply a modern governance model, are linked to the global supply chain, have spillover effects, are closely connected with the domestic economic sector, and go hand in hand with environmental protection and sustainable development.

c/ Strengthening state budget collection and customs management

To complete tax administration and customs management institutions in the direction of improving the effect and effectiveness of tax administration and customs management on the basis of application of modern technologies, contributing to removing difficulties and obstacles and creating convenience for taxpayers and preventing tax loss and fraud; to strengthen anti-transfer pricing and effectively manage new revenue sources arising from e-commerce transactions and the digital economy; at the same time, to promote voluntary compliance according to the compliance level of each group of taxpayers and in line with the requirements of e-government and digital government. To strengthen the prevention and fighting of smuggling, trade fraud and illegal cross-border transportation of goods in management of imported and exported goods, ensuring economic security and social safety. To promote the application of information technology and strengthen administrative procedure reform to improve the business environment, raise national competitiveness, and reduce tax compliance costs of people and enterprises.

2. Improving the efficiency of allocation, management and use of financial resources in association with promoting the process of economic restructuring and sustainable development

a/ Enhancing the orienting role of state financial resources in socio-economic development investment

To improve efficiency of, and restructure, state budget spending toward sustainability, prioritizing resources to increase spending on development investment, focusing on important and urgent tasks of the State to serve socio-economic development and restoration, security and national defense.

To accelerate the restructuring of public investment spending, improve the efficiency and effect of the allocation and disbursement of public investment funds, improve the leading and priming role of state budget resources, and promote the attraction of investment funds from non-state budget sources to increase investment resources of the whole society; to make breakthroughs in building synchronous, modern, green and environmentally friendly infrastructure facilities and urban areas. During 2022-2023, to focus on allocating capital for important and urgent works and projects with spillover effects and rapid impacts on the development of sectors, fields, regions and areas to support socio-economic recovery and development.

To renew the mode of recurrent expenditure management, promote the application of the mechanisms of contracting, bidding and order placing; to further decentralize, grant autonomy, and encourage the use of resources in conformity with the characteristics of ministries, sectors, localities and units using the state budget.

To increase resources for spending on human development investment in order to improve the quality of human resources, promote the increase of productivity, and meet the requirements of the Fourth Industrial Revolution and international integration. To reform salary policy, ensure resources to continue to properly implement social security policies, facilitate equal access to resources and development opportunities and equal enjoyment of basic social services for all people, especially disadvantaged groups such as children, the poor, ethnic minorities, etc., in conformity with the development conditions of the economy and the balancing capacity of the state budget.

To fundamentally renew the mechanism of management and use of state budget funds for investment in science and technology development toward thrift and efficiency; to implement the mechanisms of order placing by the State or bidding for performance of science and technology tasks and the mechanism of contracting to the final product.

To improve financial mechanisms and policies to promote science and technology development and innovation, and technology application and transfer. To study formulating specific and outstanding financial mechanisms and policies to develop a number of fields of science and technology in which Vietnam has advantages and which play an important role to the country up to the international level. To increase state budget investment in building a number of modern and advanced research and development organizations, especially top potential science and technology organizations so as to promote the process of regional and international integration.

b/ Promoting management and administration of budgetary finance in the medium term

To manage state budget spending within the scope of available resources, ensuring the synchronization and consistency among the medium-term public investment plan, the medium-term public debt plan and the medium-term financial plan; to implement the 3-year finance-state budget plan in accordance with the Law on the State Budget and international practices.

To develop and implement spending commitments to ensure centralized allocation of resources and avoid thinned-out allocation so as to effectively serve the formulation of, making of decision on state budget estimates, and account finalization and audit of state budget funds of agencies according to their respective functions and tasks.

c/ Renewing the state budget management decentralization mechanism

To renew the mechanism of state budget management decentralization on the basis of applying good international principles and practices on decentralization of revenue source management, spending tasks and the relationship between budget levels, basically avoiding integration in state budget management, and strengthen the leading role of the central budget; to promote decentralization, encourage localities to be creative, increase revenues, and mobilize resources for socio-economic development in their localities, create proactiveness and self-responsibility for local administrations in making of decisions on, and using budget funds; to increase powers and responsibilities in budget management in authorities at all levels and budget-using units together with enhancing transparency and accountability and strengthening inspection and supervision.

To review, formulate and improve specific financial-budgetary mechanisms and policies applicable to key economic regions and a number of big provinces and cities; to promote regional connectivity, strengthen international integration and narrow the development gap between regions.

d/ Continuing to reform state budget expenditure control and treasury management

To renew the mechanism of management and control of state budget expenditure commitments according to international practices. To unify the process and digitize the control and payment of state budget expenditures through the State Treasury. To renew the method of controlling state budget expenditures in the direction of risk management and post-spending inspection in combination with further decentralizing and assigning accountability to budget-using units and in correspondence with the level of development of internal audit in ministries, sectors and localities.

To improve the state treasury management mechanism in the direction of approaching the state treasury management practices in developed countries and in line with the actual situation in Vietnam, ensuring centralized, safe, transparent and effective management. To continue improving the centralized payment model of the State Treasury. To diversify tools for investment and borrowing from the state treasury. To closely combine state treasury management with budget management and debt management in order to reduce debt-related costs and risks; to enhance the effectiveness, safety and sustainability of the public financial management system and improve fiscal space. To establish a comprehensive and modern state treasury risk management framework.

dd/ Strictly managing public assets

To continue improving the legal framework relating to the management and use of public assets, especially the laws on land-related finance, natural resources, valuation, and determination of the value of state enterprises upon equitization; to formulate legal documents on the management and use of specialized public assets, ensuring synchronization and consistency with the Law on Management and Use of Public Assets. To formulate a system of assessment criteria and organize the assessment of public asset management in the administrative and non-business sector. To expand and upgrade the national database on public assets; to build and operate an e-transaction system on public assets.

e/ Strengthening the national reserve potential

To improve the legal framework on management and administration of national reserve activities; to make national reserves to be strong enough, have a reasonable structure, and proactively meet the unexpected and urgent needs of the economy; to promote socialization and attract non-state budget resources for national reserves.

To concentrate on stocking up strategic, essential and high-value goods which are used frequently and cannot be produced at home in order to proactively and promptly respond to emergency situations, ensure national defense and security and perform assigned tasks. At the same time, to review, adjust and supplement strategic, essential and necessary items or remove unsuitable items from the list of national reserve goods.

3. Closely and effectively managing the state budget deficit and public debts; improving fiscal space, contributing to improving the resilience of the national financial system

a/ Improving institutions and policies on public debt management

To continue improving institutions and policies on public debt management, accelerate the application of proactive debt management tools and operations, and ensure safety and sustainability of the national financial system.

To closely combine state budget and public debt management with state treasury management in order to improve the efficiency of the management of the State’s financial resources. To strictly manage the deficit, adhering to the principle that loans borrowed to offset the state budget deficit will be used only for development investment and loans will be borrowed only within the borrowers’ repayment capacity.

To study applying a proactive debt operations approach according to good international practices; to set up soft warning indicators combined with hard ceiling levels to control public and private debts; to separate management of foreign debts in the public and private sectors; to set a ceiling level of foreign debts in the total public debts. To intensify the application of good international practices in risk management of the Government’s debt portfolio; to balance the portfolio between domestic debts and foreign debts.

To build a database, applying statistical principles according to good international practices; to promote the application of information technology in public debt management. To actively study, forecast and develop a policy response plan to handle cases in which debt indicators reach warning thresholds.

b/ Organizing mobilization of capital for the state budget and development investment with reasonable cost-risk balance; improving the debt portfolio structure

  To renew and improve the quality of borrowed capital; to diversify sources of capital and methods of domestic and foreign borrowing with appropriate terms, meeting the Government’s capital mobilization needs in the medium and long terms in the context that Vietnam has become a middle-income country.

To diversify products and goods on the market to meet the needs of investors, and develop green bond products to mobilize capital for environmental protection projects for sustainable economic development.

To issue and manage the government bond portfolio in a proactive manner, ensuring the volume, structure and terms according to the objectives of the strategies, programs and plans on public debt management and plans on government debt borrowing and repayment.

To closely coordinate fiscal and monetary policies for stabilizing interest rates in order to support capital mobilization of the state budget and develop the government bond market.

To renew the mechanism of mobilizing official development assistance (ODA) loans and foreign concessional loans to invest in a number of key works and projects of spillover effects for regional and national socio-economic development. To prioritize mobilization of capital sources with a long term, low interest rate and high grant element.

c/ Improving the efficiency of loan management and use in association with debt repayment responsibility

  Borrowed capital shall be used only for development investment, focusing on national target programs, national important projects, and key projects of great significance which have spillover effects and help improve competitiveness of the economy, and inter-regional and inter-local projects.

To allocate sufficient capital to repay debts in full and on time, step by step raise the national credit rating. To restructure debts in a sustainable manner and improve debt safety indicators. To strictly manage and control the Government’s contingent debt obligations.

The mobilization, management and use of ODA and concessional loans provided by foreign donors must be combined with the restructuring of public investment; any new loan needs to be considered in terms of economic efficiency, financial options, and assessment of impacts on medium-term investment plans, public debt indicators, budget, and debt repayment capacity. Foreign loans shall be concentrated in a number of key areas so as to bring about maximum economic efficiency in par with their scales; and projects that promote growth associated with sustainable development, projects capable of generating foreign currency revenues, projects with spillover effects (such as climate change adaptation, environmental quality improvement, education, health, technology, etc.); and essential socio-economic infrastructure projects that are incapable of recovering capital directly. To prioritize the borrowing of loans for on-lending to projects capable of recovering capital directly.

4. Renewing the financial mechanism for the public non-business sector

a/ Improving mechanisms and policies for public non-business units

To continue to improve synchronously mechanisms and policies on renewal of the financial mechanism for public non-business units; to accelerate the improvement of mechanisms and policies so as to promote the change of certain types of charges to public administrative service charges; at the same time, to implement the policy of providing support to policy beneficiaries (the poor, people with meritorious services, ethnic minority people, etc.) directly from the state budget.

b/ Promoting the implementation of the financial autonomy mechanism and grant financial autonomy to public non-business units

- To accelerate the implementation of the objectives set out in Resolution 19-NQ/TW. To continue accelerating the renewal of the financial autonomy mechanism and grant financial autonomy to public non-business units; to increase the number of units self-financing recurrent expenditures and investment expenditures and those self-financing recurrent expenditures; to clearly define revenue sources, spending tasks, distribution of additional incomes, and powers and responsibilities of heads of units.

- To strongly shift from the mechanism of fund allocation based on cost estimates to the mechanism of payment under orders placed or tasks assigned in association with the quantity and quality of to-be-provided products and services, service prices and user demand; to adopt a specific roadmap for implementing the mechanism of bidding for service provision; to gradually reduce the number of products and services provided by the method of task assignment.

- Ministries, sectors and localities shall review and soon complete the promulgation, or submit to competent authorities for promulgation, master plans on the network of public non-business units in order to drastically implement the solutions of arranging, dissolving, merging, and streamlining focal points and payrolls; at the same time, urgently promulgate lists of public non-business services funded by the state budget and techno-economic norms for use as a basis for determining public non-business service charge rates.

- To accelerate the implementation of the roadmap of applying public non-business service charges according to Decree No. 60/2021/ND-CP, under which public non-business units that can calculate their depreciation costs may be classified as those practicing financial autonomy at a higher level.

- To enhance publicity and transparency; to strictly implement regulations on supervision, inspection and examination of activities of public and non-public non-business units, especially in terms of implementation of financial policies and regimes; to promptly solve problems arising in the implementation process and strictly handle violations.

c/ Promoting socialization in provision of public non-business services

To improve mechanisms and policies to facilitate socialization in provision of public non-business services, ensuring equality between public and non-public non-business units; to further adopt policies on encouragements and incentives regarding land, taxes, charges, credits, etc., to support enterprises and individuals to effectively participate in the provision of public services.

To review, evaluate and continue improving the mechanism on equitization of qualified public non-business units in association with proper settlement of social issues. To promote socialization activities in a number of fields such as healthcare, education, culture, sports, etc., shifting from direct investment from the State to investment by enterprises under planning.

  5. Stepping up the restructuring and raising the operational efficiency of state enterprises; renewing the management of state capital invested in enterprises

  a/ To continue improving mechanisms and policies to promote the restructuring of state enterprises; to improve the mechanism for using proceeds from the transformation of ownership of enterprises and public non-business units and the transfer of state capital; to renew the financial supervision mechanism and evaluate the performance of economic groups, state corporations and state enterprises.

b/ To improve the operational efficiency and competitiveness of state enterprises on the basis of modern technology; and innovation and administration capacity according to international standards. To adopt mechanisms to encourage the research, development and application of advanced science and technology to production and business activities and management and supervision of enterprises. To carry out digital transformation, promote publicity and transparency of financial information, and enhance enterprises’ accountability. To promote the development of a number of large-scale, well-performing state economic groups that are capable of competing in the region and world in a number of key sectors and fields of the economy.

c/ To accelerate the debt settlement, divestment, and equitization of state enterprises in an efficient, public and transparent manner; to adopt  mechanisms for monitoring, detecting and promptly handling violations during the implementation process. By 2025, to complete the arrangement and restructuring of state enterprises mainly by the mode of equitization and divestment. The proceeds from equitization and divestment of state capital shall be used mainly for investing in key infrastructure works of national importance and adding charter capital to key national state enterprises.

d/ To intensify inspection and supervision of the use of capital at enterprises. To resolutely handle loss-making and inefficient projects, adhering to the principles of publicity and transparency, and compliance with the market mechanism and law. To resolutely handle projects and works that run behind schedule, are inefficient, and incur prolonged losses of economic groups, state corporations, and state enterprises, adhering to the principles of publicity and transparency and minimization of losses to the State and society. To create a mechanism for enterprises to be proactive and autonomous in handling their projects. The handling of enterprises by the form of dissolution or bankruptcy must guarantee the highest interests of the State and legitimate interests of employees and investors.

dd/ To consolidate and improve the model of owner-representing agency according to its role of managing state capital invested in enterprises so as to meet the requirements of renewing and restructuring state enterprises. To further decentralize and delegate powers to the Members’ Councils and Boards of Directors of state economic groups and corporations, and at the same time strengthen the supervision and inspection tasks of the owner-representing agency to timely prevent, detect and handle violations in accordance with law.

6. Developing a synchronous, modern, transparent and sustainable financial and financial service markets

To improve the legal system, mechanisms and policies to develop synchronously, modernly, transparently and sustainably the financial market with the focus being the securities market, insurance market and financial service market.

a/ The securities market

- To improve the legal framework for development of the securities market in conformity with the development level of the economy, approaching international practices and standards; to expand and connect this market with regional and international markets. To improve regulations on participation of foreign investors in listed enterprises and public companies on the securities market.

To strengthen the management and supervision capacity of the State Securities Commission and competitiveness of intermediary organizations participating in the securities market to ensure the safe and transparent operation of the market, and improve the competitiveness and protect the interests of investors.

- To increase the supply of goods and improve the quality of sources of supply to the market.

For the stock market, to encourage enterprises to conduct IPOs in association with listing and registration for trading on the securities market; to apply corporate governance according to international practices to improve the quality of listed enterprises, and at the same time strengthen inspection and timely handle enterprises that do not comply with regulations on listing and registration of transactions after they are equitized. To study the formation of an exchange for innovative startups.

For the bond market, to continue to develop it into an important channel for medium and long-term capital mobilization for the economy; to improve publicity and transparency in market operations. To develop a green bond market to mobilize capital for environmental protection projects, serving sustainable economic development.

To develop the government bond market both intensively and extensively to meet the demand for mobilization of capital for development investment, and at the same time restructure the government bond debt portfolio to restructure the state budget and public debts. To concentrate on developing the secondary market to increase liquidity, diversify products and develop the investor base; to increase the transferability between the government bond market and the monetary market to improve market liquidity.

To concentrate on developing the corporate bond market, including both public offering and private placement in association with promotion of information disclosure; to organize and provide services serving the trading of corporate bonds through the Stock Exchanges to meet the needs of organizations and individuals participating in the market. To promote credit rating services, encouraging international credit rating agencies to provide services in the Vietnamese market.

To develop a wide range of derivative products including futures contracts and options contracts on underlying assets that are stock indices, single stocks and government bonds. To formulate new market indexes for use as underlying assets for derivatives.

- To develop and diversify the investor base.

To expand the investor base, enhancing market access and deploying various types of investment funds and long-term institutional investors in the market. To ensure a reasonable structure between individual investors and institutional investors and between domestic investors and foreign investors, promoting the development of professional investors.

- To improve market organization, and modernize infrastructure and information technology.

To improve the organizational and operational model of the Vietnam Exchange, the Hanoi Stock Exchange, the Ho Chi Minh City Stock Exchange, and the Vietnam Securities Depository and Clearing Corporation, ensuring efficiency and conformity with realities and international practices. To modernize information technology infrastructure serving the system of supervision, trading, registration, custody, clearing and payment of securities, ensuring smooth, safe and stable market operations.

b/ The insurance market

To improve the legal system for insurance business; to develop and diversify insurance products to meet the needs of organizations and individuals and international integration requirements, especially insurance products applying information technology, green insurance, medical care insurance, etc.; to increase financial capacity, risk management, corporate governance and publicity and transparency of insurance enterprises.

To encourage the application of information technology in insurance business; to diversify and professionalize insurance distribution channels to create convenience for organizations and individuals, especially low-income earners, to participate in insurance; to develop and improve the quality of human resources in the insurance sector and promote public communication about insurance.

To strengthen the effect of state management and effectiveness of inspection, examination, supervision and administrative sanctioning in the insurance sector, and reform the management and supervision methods of insurance management agencies, gradually shifting to risk-based management and supervision, concurrently with building and improving the information technology system; to enhance the role of socio-professional organizations in the insurance business sector and promote international integration and cooperation in the insurance sector.

c/ The financial service market

- To continue to improve the legal framework on accounting, auditing, price appraisal and other financial services toward approaching international practices and being suitable to Vietnam’s conditions. To apply international financial reporting standards (IFRS), thus contributing to improving transparency and effectiveness of provision of information to investors. To develop a system of Vietnam’s price appraisal standards in line with practical conditions and international practices. To synchronously develop the credit rating market, the market of accounting, auditing, price appraisal consultancy, tax consultancy, and customs agency services.

- To improve the quality of accounting, auditing, price appraisal and other financial services to meet the needs of society. To plan the scale and number of organizations providing accounting, auditing, price appraisal and other financial services in conformity with actual requirements through improving mechanisms and conditions for professional practice. To increase the quantity and quality of accountants, auditors, price appraisers and other financial service practitioners.

To increase the effectiveness of state management of financial services, creating a stable and unified legal environment to guarantee the lawful rights and interests of market participants. To improve the effectiveness and effect of supervision, and handle violations committed by financial service providers in order to improve service quality.

d/ The lottery and prize-winning games market

To improve the legal framework for lottery and prize-winning games; to step by step restructure the market toward modernity, publicity, transparency and conformity with international practices; to use the proceeds from lottery and prize-winning games to invest in development, health, education, social security and inter-regional key programs and projects and national projects on socio-economic development.

7. Consistently practicing price management and administration according to the market mechanism under the State’s regulation

a/ To continue to review and improve the legal institutions on prices, ensuring consistency and synchronization between the Law on Price and the system of civil-economic law. To renew and improve the method of price management and administration so as to be consistent with the socialist-oriented market mechanism while encouraging price competition. To enhance the role of price management in management, allocation and use of state budget funds and financial resources.

b/ To accelerate the implementation of the market price roadmap for important and essential services and public non-business services. To accurately and adequately calculate reasonable and valid actual costs for inclusion in prices with specific and detailed roadmaps in conformity with socio-economic development orientations in each period, adhering to the principles of transparency, publicity and harmony of the rights and interests of enterprises, people and the State, thus helping improve production and business efficiency, build a fair and transparent competitive market and, at the same time, encourage and promote the implementation of the policy of renewing the financial mechanism for units producing and providing essential public services.

c/ To promote the work of synthesis, analysis and forecasting; to strengthen the exchange of information among ministries, sectors and localities; to form and build a mechanism for data and information exchange; to develop solutions for price management and administration suitable to each period and stage. To complete the system of the national price database, ensuring data connection with ministries, sectors and localities, and forming an official and reliable information channel for price management and administration.

8. Enhancing the effectiveness of financial cooperation and proactively carrying out international financial integration

a/ To enhance the effectiveness of financial cooperation

To review and finalize financial cooperation frameworks and agreements with important partners such as finance institutions, international finance forums and state management agencies in charge of finance in countries being comprehensive strategic partners, strategic partners and traditional partners of Vietnam.

To develop intensively and improve the substantive effectiveness of financial cooperation and external activities in the field of finance; to shape regional financial instruments and mechanisms to support macroeconomic, public finance and financial market management; to increase policy dialogue to enhance credibility of financial cooperation partnership and promotion for external resource attraction, mobilization and effective management of technical assistance programs/activities of partners for the Ministry of Finance.

b/ To actively carry out international financial integration

To improve synchronous institutions and implement integration commitments on tax, customs, insurance, securities, and accounting-auditing. To study and propose measures for implementation of commitments on import duty and export duty within bilateral and multilateral frameworks in a more proactive manner in order to reduce trade concentration, especially import from some specific partners.

To raise the effectiveness of financial integration commitments through improving the quality of analysis and forecasting of impacts on the economy and finance sector; to study and propose mechanisms and policies to ensure financial safety on the condition of fully implementing international integration commitments; to strengthen and improve the effectiveness of public communication on the benefits and challenges arising from implementation of financial commitments to stakeholders, especially the business community at home and abroad.

9. Strengthening capacity and effectiveness of financial management and supervision; stepping up inspection and examination; practicing thrift, fighting waste

a/ To improve institutions, apparatus and tools for analysis and monitoring of major financial balances, debt safety indicators, and warning of risk levels for the public debt, government debt and local administration debt portfolios. To develop a centralized financial statistical information system, integrated with the national economic statistical system and the State’s monetary statistical system, in conformity with international principles and standards, fully and timely satisfying requirements in management and administration of the national financial system.

To strengthen supervision, inspection and examination of the use of the state budget and public debt on the principles of risk management and application of information technology; to promptly, strictly and publicly handle organizations and individuals that violate regulations, causing waste to the state budget.

To increase inspection, examination and audit of procurement, construction, management and use of public assets to ensure thrift and compliance with the set purposes, standards and norms. To strictly handle, and publicize results of inspection, examination and audit of, organizations and individuals that violate regulations, causing waste to public assets.

To establish and operate a modern risk management framework in state treasury management and improve the information technology system to enhance security, risk prevention, and system safety assurance. To improve the mechanism for synthesizing and making financial-budgetary statements, especially the state financial statements, toward improving the completeness, timeliness and accuracy of reported information, in line with international practices.

b/ To improve institutions, apparatus, infrastructure, and tools to monitor operations of the financial market and financial services, ensuring that the market operates safely, transparently and stably in accordance with international practices. To increase control of lottery and prize-winning games.

c/ To improve the mechanism and system of criteria for corporate finance supervision according to the principle of setting overall targets and market rules; apply according to a set roadmap the evaluation and credit rating of enterprises. To improve the effect and effectiveness of the apparatus and staff in charge of corporate finance management and supervision. To publicicize corporate financial information of enterprises in association with the accountability of enterprises and the owner-representing agencies in accordance with law.

d/ To improve capacity and quality of financial inspection and examination in all fields; to increase the effect and effectiveness of internal supervision systems, risk control frameworks and internal audit activities. To increase and well implement the mechanism on coordination between inspection and examination agencies and functional agencies to ensure effectiveness and financial discipline and order.

dd/ To control price constituents and price options of monopoly  goods and services, goods subject to price determination by the State; goods and services subject to price valorization; and public-utility goods and services.

e/ To increase inspection and examination of prices in combination with tax administration to prevent unreasonable price increases, and promptly handle transfer pricing, fraud, tax evasion and avoidance. To inspect and control the operation of goods and services markets in accordance with the law, trade frauds, speculation and market manipulation.

g/ To effectively implement objectives, tasks and solutions on thrift practice and waste prevention. To strictly comply with the law on handling of violations in case of occurrence of waste. To be drastic in handling inspection and examination results in order to recover to the utmost to the State money and assets in cases of violation, appropriation, misuse, and waste that are detected through inspection and examination.

10. Promoting the application of information technology, establishing digital financial platforms; carrying out administrative reform, and improving the effectiveness of state management

a/ Strengthening the application of information technology and establishing digital financial platforms in conformity with requirements of national digital transformation      

To review, amend and supplement regulations in the finance sector so as to build, develop and manage information systems serving the digital government and national digital transformation requirements.

To promote the application of information technology and upgrade the risk control system to improve the effectiveness of management and administration in the finance sector. To review and update the overall architecture toward a digital Ministry of Finance and a national finance database architecture.

- To actively apply the results of the Fourth Industrial Revolution, research and apply some core technologies capable of creating strong breakthroughs such as artificial intelligence (AI), blockchain, big data and virtual/augmented reality (VR/AR), and facilitate the application of advanced digital technologies in the implementation of e-finance, then digital finance. To build smart governance platforms to provide smart financial services, and actively participate in the development of the digital economy. To build an electronic finance and basically establish a modern, public and transparent digital financial platform based on big data, open data, and digital financial ecosystems, ensuring the efficiency and comprehensive information security.

- To build an integrated, public, transparent and effective tax administration information system so as to serve people and enterprises, ensuring synchronism in the direction of e-government and digital transformation. To build integrated platforms and big data platforms to provide information serving the administration and connection of information between tax offices and state management agencies. To apply technologies of the Fourth Industrial Revolution to automate a number of tax administration processes and operations and analyze big data for policymaking, revenue estimation, propagandization and support for taxpayers, risk management, compliance management, and tax inspection, examination and investigation, etc. To develop advanced, modern and synchronous information technology infrastructure and equipment, ensuring continuous and effective operation, information security and data confidentiality.

- To build a regular and modern Vietnam Customs on par with the customs of developed countries in the world, taking the lead in implementing the Digital Government, with the model of Digital Customs and Smart Customs so as to facilitate legal commercial operations, ensure security and social safety and protect national interests. To centralize, modernize and automate customs inspection, supervision and control. To deploy the model of smart border and green customs. To build a centralized and intelligently integrated customs information technology system meeting the requirements on system information security, with a digital platform suitable to the architecture of e-government and digital government. To develop an information technology system to implement the National Single Window Mechanism, ASEAN Single Window Mechanism for ministries and sectors to settle administrative procedures for imported and exported goods in a centralized manner.

- To upgrade and develop the treasury and budget management information system (TABMIS) and related systems into a Vietnam digital budget and accounting system (VDBAS), contributing to the formation of a digital treasury by 2030.

- To promote and modernize the application of information technology in internal management activities and the management of national reserves; to computerize processes and operations regarding input, output and preservation of national reserve goods.

- To deploy an overall information technology system to serve the management, supervision, transactions and operations of the securities market in a modern and efficient manner, ensuring smooth, safe and stable operation of the market. To deploy new functions and transaction utilities of the system and apply new operations; to synchronously operate the new information technology system at the stock exchanges and related organizations.

- To promote connection of infrastructure and information systems of the State Treasury, customs and tax offices with banks, intermediary payment service providers, inter-bank electronic payment systems, and automated clearing houses so as to realize budget revenues and expenditures by cashless payment methods.

b/ Reforming administrative procedures, and improving the effect and effectiveness of state management

To continue to reform and simplify administrative procedures in the finance sector in order to improve the business investment environment and ensure fair, equal and transparent competition. To renew the implementation of the single-window and inter-agency single-window mechanisms in settlement of administrative procedures. To review and standardize administrative procedure data and integrate and provide online public services on the Public Service Portal of the Ministry of Finance and the National Public Service Portal. To study and propose solutions on reform of administrative procedures to improve financial indicators in the assessment and ranking of Vietnam’s business environment.

To continue to properly control administrative procedures, reduce time and improve the quality of settlement of administrative procedures related to people and enterprises. To publicize administrative procedures; to timely update new, adjusted or abolished administrative procedures to the national database on administrative procedures.

To strictly control the promulgation of administrative procedures; to simplify and standardize administrative procedures, and eliminate inappropriate administrative procedures, contributing to improving the effect and effectiveness and ensuring the objectives of state management in the finance sector, promoting socio-economic development.

11. Improving the quality of human resources and consolidating the finance sector’s apparatus to be modern, streamlined, efficient and effective

  a/ Consolidating the finance sector’s apparatus to be modern, streamlined, efficient and effective

To further consolidate and streamline the apparatus of the finance sector to ensure effect, effectiveness and smooth operation, meeting the requirements of sectoral reform and modernization and international economic integration; to review and consolidate the functions, tasks, powers and organizational structure of the Ministry of Finance. To effectively apply the principle of multi-sectoral  management, defining a single focal point to perform the state management of finance-state budget. To accelerate the formulation of the Scheme on assigning the provision of a number of public administrative service tasks that need not to be performed by the State to enterprises and social organizations according to a set roadmap and organize the implementation of such Scheme.

b/ Improving the quality of human resources

To strictly manage and streamline payrolls associated with working positions, restructuring the contingent of civil servants and public employees; to synchronously implement solutions to attract and recruit talents, select leaders, train, further train, rotate, and change working positions in order to improve the quality of the contingent of civil servants and public employees of the finance sector.

  To build a contingent of leading civil servants and public employees who possess sufficient qualifications, capacity and prestige; to develop human resources of the finance sector with a reasonable structure, ensuring quantity and quality, and meeting the sector’s task performance requirements. To further promote the reform of the public duty and civil servant regime. To improve capacity, professional qualifications, and ethical qualities, enhance responsibility, administrative discipline and public-duty ethics of cadres, civil servants and public employees.

IV. ORGANIZATION OF IMPLEMENTATION OF THE STRATEGY

The Strategy shall be implemented in 2 phases (corresponding to the 2021-2025 five-year financial plan and the 2026-2030 five-year financial plan) and is concretized through 8 sectoral strategies below:

1. Tax system reform strategy up to 2030;

2. Customs development strategy up to 2030;

3. State Treasury development strategy up to 2030;

4. Public debt strategy up to 2030;

5. Strategy for development of Vietnam’s insurance market up to 2030;

6. Securities market development strategy up to 2030;

7. National reserves development strategy up to 2030;

8. Accounting-auditing strategy up to 2030.

Article 2. Responsibilities for organization and implementation of the Strategy

1. The Ministry of Finance shall:

a/ Assume the prime responsibility for, and organize the implementation of, the Strategy; approve and direct the plan on implementation of the Strategy in each period.

b/ Guide and urge ministries, sectors and localities to base themselves on assigned functions and tasks to formulate, and organize the implementation of, programs and contents related to the Strategy.

  c/ Assume the prime responsibility for, and coordinate with related ministries, sectors and localities in, examining the implementation of the Strategy and evaluating the implementation of the Strategy once every 5 years.

d/ Assume the prime responsibility for, and coordinate with related agencies in, proposing and submitting to the Prime Minister for decision the adjustment of the objectives and contents of the Strategy in case of necessity.

dd/ Assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and related ministries and sectors in, balancing and allocating annual state budget funds in accordance with the Law on the State Budget and relevant legal documents so as to implement the Strategy.

2. Ministries, ministerial-level agencies, government-attached agencies and provincial-level People’s Committees shall coordinate with the Ministry of Finance and related agencies in, based on their state management functions and tasks specified by law, directing and participating in the implementation of relevant contents of the Strategy.

Article 3. This Decision takes effect on the date of its signing.

Article 4. Ministers, heads of ministerial-level agencies and government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decision.-

For the Prime Minister
Deputy Minister
LE MINH KHAI