Decision No. 450/QD-TTg dated April 18, 2012 of the Prime Minister approving the finance strategy up to 2020

THE PRIME MINISTER

Decision No. 450/QD-TTg of April 18, 2012, approving the finance strategy up to 2020

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the Minister of Finance,

DECIDES:

Article 1. To approve the finance strategy up to 2020 with the following principal contents:

I. VIEWPOINTS, GENERAL OBJECTIVES AND SPECIFIC TASKS

1. Viewpoints

The formulation and implementation of the finance strategy up to 2020 are underpinned with the following major viewpoints:

a/ Finance is the lifeline of the economy and plays an important role in promoting and opening way for fast and sustainable development associated with renewing the growth model and restructuring the economy;

b/ To develop an effective, comprehensive, reasonable and equitable national finance, with priority given to improving effectiveness as a permanent guideline throughout the strategy period;

c/ To manage finance by law, ensuring uniformity, transparency and discipline in finance and modernize national finance.

2. Overall objectives

To build a healthy national finance, ensuring firm financial security, macro-economic, financial and monetary stability, creating conditions for promoting economic growth associated with renewing the growth model and restructuring the economy, properly addressing social security issues; to mobilize, manage, distribute and use financial resources in the society in an effective and fair manner; to carry out synchronous and comprehensive administrative reforms; to ensure efficient and effective financial management and supervision.

3. Specific tasks

a/ To continue properly handling the relations between accumulation and consumption and between saving and investment; to adopt policies to encourage increased savings for development investment and to guide consumption; to reasonably attract social resources for concentrated investment in socio-economic infrastructure, improving the quality of human resources, creating prerequisites for stepping up economic restructuring and renewal of the growth model. Total social investments during 2011-2015 will represent 33.5-35% of GDP;

b/ Total revenues from taxes and charges will account for 22-23% and 21-22% of GDP during 2011-2015 and 2016-2020 respectively, with domestic revenues (excluding revenue from crude oil) surpassing 70% by 2015 and 80% by 2020 of total state budget revenues;

c/ To raise the use effectiveness of public financial resources, especially the state budget capital source; to continue restructuring state budget expenditures and public investment; to increase investment in human development; to reform financial mechanisms in the public non-business sector and finance of state enterprises; to reform salaries; to consolidate the social security system;

d/ To synchronously develop all types of market, restructure the financial market and financial services; to expand and diversify forms of activity on the market in order to mobilize resources at home and abroad for socio-economic development.

- To concentrate on developing a stable, firm, effective and safe securities market, ensure legitimate rights and interests of market players that are able to compete in the region; to step up the development of the bond market, covering government bonds, municipal bonds and corporate bonds;

- The stock market capitalization value will account for about 50% of GDP by 2015 and 70% of GDP by 2020; the outstanding debts of the bond market will reach 30% of GDP by 2020; the total turnover of the insurance sector will reach 2-3% and 3-4% of GDP by 2015 and 2020, respectively;

- To develop a synchronous financial supervision apparatus capable of analyzing, assessing and truthfully warning the risk levels of the entire financial system and each of its segments.

e/ To ensure secure and safe national finance and a positive budget balance; to incrementally reduce the state budget deficit; to keep outstanding government debts and national debts within safe limits; to increase state reserves in order to timely meet unexpected needs of the economy;

- To reduce the state budget deficit to below 4.5% of GDP by 2015 (including government bonds) and keep it at 4% of GDP during 2016-2020;

- Public debts (including government debts, government-guaranteed debts and local administration debts) will not exceed 65% of GDP by 2020; and the nation’s outstanding foreign debts will not exceed 50% of GDP; outstanding government debts will not exceed 55% of GDP;

- To strive to increase total state reserves to 0.8-1% of GDP and around 1.5% of GDP by 2015 and 2020, respectively; at the same time, to restructure reserve commodities to timely meet unexpected and urgent needs of the State.

f/ To further improve financial institutions to be synchronous and stable on the market principle under the State’s regulation. To renew the finance sector’s apparatus to be modern, effective and efficient.

II. STRATEGY IMPLEMENTATION SOLUTIONS

1. Mobilizing national financial resources more effectively

a/ Perfecting financial institutions

To step up the perfection of financial institutions in line with the process of perfecting the socialist-oriented market economy mechanism, attract resources in society for development investment, attaching importance to the process of economic restructuring. To improve the quality of legislative work, evaluate impacts of financial policy and enhance legal affairs work.

To continue reviewing, synchronizing and removing problems in financial mechanisms and policies to channel social resources into sectors, fields and geographical areas with comparative advantages and added value-increasing potential. To perfect incentive and support policies for enterprises, particularly small- and medium-sized ones; to attach importance to supporting enterprises which invest in spearhead, hi-tech and support industries; to perfect the mechanism of encouraging enterprises to directly invest and do business in rural, mountainous, deep-lying and remote areas.

To continue opening up the financial market effectively in conformity with international commitments; to take the initiative in participating in the international finance market. To perfect the system of financial mechanisms and policies in order to further attract and exploit to the utmost foreign capital sources to meet national development requirements in each period.

b/ Rationally mobilizing tax, charge and fee revenues

To perfect the system of collection policies along with restructuring state budget revenues. From now to 2020, to build a synchronous tax system with a sustainable structure, conformable with international practices and capable of fully, proactively and reasonably mobilizing revenues into the state budget. To expand tax bases and apply reasonable tax rates, ensuring tax-related fairness and equality among taxpayers, creating a motive force for promoting production, increasing the competitiveness of the economy and promoting investment and export of goods and services while ensuring selective protectionism for the purpose of national industrialization and modernization. To simplify the system of tax incentive policies. To raise the effect and effectiveness of tax administration and combat tax evasion and frauds.

To perfect the legal system on charges and fees; to gradually shift to manage according to the mechanism of service prices those types of charge which essentially reflect the relation of service provision; to delegate more powers to localities to decide on charges and fees to be paid to local budgets and associated with state management functions of local administrations.

c/ Renewing the policy on revenues from land and natural resources

To expand revenue sources from land and natural resources, ensure harmony between economic interests and social and environmental interests; to regard these revenues as an important resource for development investment. To step up the rearrangement and handling of houses and land under state ownership; to sell and transfer, or change use purposes of, unused houses and land areas in line with the land use master plan with a view to generating financial resources for infrastructure investment.

To amend and supplement policies on revenues from land in accordance with the revised Land Law toward ensuring collection according to use purposes and market prices, contributing to forming an organized and effectively managed real estate market; at the same time, to expand the allocation and lease of land through auction for increasing revenues from land and effectively using land.

To revise the financial policy system regarding exploitation of natural resources, encourage domestic deep processing, restrict export of crude natural resources, contributing to the reasonable, economical and effective protection, exploitation and use of natural resources and environmental protection.

d/ Managing prices according to the market mechanism and under the state control

To apply before 2015 the market price mechanism to goods with their prices set by the State, in association with further controlling the production costs of exclusive goods and services and public-utility products. To respect the right of businesses and traders to set, agree on and compete in prices in accordance with law.

To perfect the legal environment through the formulation of the Price Law to manage and administer prices. To manage and administer prices and stabilize prices with indirect measures according to the market mechanism and international commitments. To diversify forms of bidding and auction and price appraisal.

2. Increasing the effectiveness of distribution and use of financial resources in association with the process of restructuring national finance

a/ Enhancing the role of state financial resources in directing investment in socio-economic development, particularly in the synchronous development of the infrastructure system, along with attracting investment from the private sector.

To step by step adjust the investment structure along the line of gradually reducing the proportion of public investment, including investment from the state budget, and prioritizing and concentrating investment in essential econo-technical infrastructure facilities.

To clearly identify the contents and scope of investment from the central and local governments. To introduce mechanisms for localities to attract resources for development in line with master plans, capacity and financial resources of each locality.

To bring into play the directing role of public investment in order to create an investment environment attractive to investment sources of the society. At the same time, to increase access of enterprises of all economic sectors to these capital sources through creating equal conditions in bidding for the construction and implementation of investment works and projects.

To further improve financial mechanisms and policies to encourage all economic sectors to invest in building infrastructure; to diversify forms of public-private partnership (PPP); to strongly step up the socialization of resources for development investment, shifting from direct investment by the State to investment by enterprises under master plans. To form a legal corridor for strongly developing local development investment funds to raise capital for building socio-economic infrastructure facilities.

To review, supplement and perfect special financial mechanisms applicable to key economic regions in order to create a motive force for them to develop and exert pervasive impacts on other regions. To perfect the financial incentive system to increase investment in developing infrastructure facilities in economic difficulty-hit, deep-lying, remote, border and island areas.

b/ Renewing the state budget expenditure structure toward increasing human investment

To restructure state budget expenditures with a view to ensuring performance of socio-economic development tasks, attaching importance to developing a green economy, assuring national defense and security and fulfilling debt payment obligations. To increase financial provisions and reserves. To gradually shift state resources for human investment.

To concentrate resources on accelerating the process of industrialization and modernization and restructuring agriculture and rural areas; to step by step develop a large-scale commodity agriculture.

To concentrate and direct state financial resources and attract non-state capital resources for investment in science, technology and environment, especially technology research and application. To combine state financial resources for priority investment in education, training and health physical foundations according to socio-economic development conditions, along with raising the use effectiveness of the state budget in these fields.

c/ Restructuring public investment in combination with increasing the effectiveness of investment of state budget capital sources

To ensure effective investment of state budget capital sources; to develop a system of standards for evaluation of investment projects and to supervise, evaluate, examine and inspect the management and use of state budget-funded investment projects. To publicly announce state budget-funded investment projects.

To renew multiple-year investment planning, considering investment plans as part of medium-term financial-budgetary plans, ensuring that investment expenditures from the state budget be limited to available resources and conformable with policy priorities set by the National Assembly and the Government.

To establish principles and grounds for elaborating development investment cost estimates and capital allocation, payment and finalization in order to concentrate investment capital for completing works according to medium-term financial plans and these works’ schedule.

To revise regulations on investment decentralization in the direction of ensuring the principle that investment is decided only when projects have completed all required procedures and capital sources and the capital-balancing capacity at each budget level have been clearly identified.

To perfect institutions on supervision of public investment and impose heavier penalties to ensure discipline in reporting and disclosing information on public investment. To enhance the responsibility of the National Assembly for overseeing key works of national importance and of People’s Councils for investment projects in their localities, to increase community supervision and perfect the mechanism for people to supervise affairs related to budget, land and property of the State and people.

To renew the mode of development of state credit on the commercial principle to ensure its sustainability. To enhance management of the onlending of foreign loans of the Government; to decentralize and assign tasks between budget levels to enhance responsibility, effectiveness and initiative in loan use. To properly perform the state financial management of loans.

d/ Renewing the elaboration and allocation of state budget estimates

To study and amend the Law on the State Budget to ensure the leading and coordinating role of the central budget; to step by step abolish the integration of the state budget system; to increase power and responsibility in budget management at all levels and in all state budget-funded units along with increasing transparency and accountability and intensifying examination and supervision.

To perfect the legal framework for elaborating medium-term financial plans and spending plans. To raise the quality of financial and budgetary forecasts and analyses.

e/ Developing the social security network on the basis of harmonious and effective combination of state and social resources

To continue increasing state budget spending on the implementation of social security policies and realization of social equity. To improve the effectiveness of investment in national target programs as well as mountainous, deep-lying and remote areas; to support vocational training for and employment of policy beneficiaries and the poor. To properly implement preferential treatment policies and step by step improve living standards for people with meritorious services to the nation.

To diversify resources and modes for developing the social relief system. To create conditions for the poor to access basic social services and benefit from the achievements of the country’s socio-economic development investment programs. To integrate poverty reduction and employment programs into national and local socio-economic development programs.

To improve the sustainability, equality and effectiveness of the social insurance system and perfect financial mechanisms and models aimed at long-term sustainability for social insurance funds and equality among the insured on the contribution-benefit principle. To expand forms of investment from the social insurance fund. To implement according to a roadmap the mechanism that allows the private sector to provide social insurance services.

f/ Reforming the salary regime for cadres, civil servants and public employees

To fundamentally reform the salary regime for cadres, civil servants and public employees, ensuring that they will be able to live on their salaries above the average level in the society. To reform salaries in combination with rearranging, strengthening and increasing the quality of the contingent of cadres, civil servants and public employees, encouraging effective performance associated with public-duty responsibility.

To take the initiative in studying the relations between minimum, average and maximum salary levels as a basis for formulating the system of salary scales and tables and allowance regimes to serve practical requirements, ensuring reasonable equality within the limit of available state budget resources. To diversify financial resources for reforming salaries of cadres, civil servants and public employees.

g/ Perfecting policies and mechanisms of management of public assets to ensure  effective and economical use of national assets

To further renew financial policies on management and use of land and national natural resources according to the market mechanism; to ensure management and effective exploitation of national assets to serve socio-economic development, maintaining and consolidating essential conditions for production, life and sustainable development.

To properly implement the Law on Management and Use of State Assets. To perfect the system of standards and norms of use of state assets suitable to new conditions, ensuring effectiveness and thriftiness and combating wastefulness. To implement the mechanism of procurement of state assets according to the centralization mode nationwide.

To separate the mechanism of management of public assets in the administrative and non-business sector; to assign the right to autonomy associated with responsibility to non-business units in the procurement, use and liquidation of public assets.

h/ Increasing the potential and effectiveness of management of state reserves

To revise, supplement and perfect legal documents on state reserves in a synchronous manner to meet the new requirements, conditions and tasks. To formulate the Law on National Reserves.

To increase state reserves with a reasonable and suitable structure of commodities. To properly manage state reserves and perfect the system of quality standards, technical regulations and econo-technical norms.

3. Renewing the financial mechanism applicable to public non-business units along with diversifying social resources for developing public services

a/ Renewing the mechanism and method of investment from the state budget in public non-business units

The State continues to hold the leading role and increases investment in building physical foundations for basic public services, ensuring that social policy beneficiaries and the poor have access to and benefit from essential public services of higher and higher quality. The state budget shall assure funds for regular operation of public non-business units located in deep-lying, remote, mountainous and ethnic minority areas.

To synchronously renew the financial mechanism applicable to public non-business units in the direction of delegating more power to these units and increase their autonomy and accountability for work performance and use of resources (both human and financial), taking into account the characteristics of each type of service and market demand.

To shift from the mechanism of allocation of regular expenditures from the state budget to the mechanism of placement of orders or assignment of tasks by the State on the basis of the system of econo-technical norms and criteria and standards of each type of service. To implement the mechanism of bidding for the provision of public services.

b/ Renewing the mechanism of pricing public non-business services

To renew the mechanism of pricing for placement of orders for public non-business products and services; the State shall set prices or price frames for basic services which play the essential role in society; to abolish according to a roadmap subsidies through service prices and charges. To step by step allow public non-business units to fully account costs (salaries, regular operation expenses and fixed asset depreciation expenses) in prices of services they provide.

At the same time, to study and adopt policies to create conditions for the poor to access essential public non-business services, ensuring social equity. The State shall provide direct funding supports for social policy beneficiaries and the poor to pay for public non-business services provided according to the market mechanism, in replacement of the regime of exemption from and reduction of service charges through public non-business units.

c/ Promoting socialization of public non-business services

To perfect the financial policy and mechanism to encourage mobilization of all resources in society for investment in the development of public non-business services, particularly in the fields of education and training, health, scientific research and social and cultural affairs. To further perfect regulations on cooperation and association between public establishments and localities, enterprises and individuals in building physical foundations.

To diversify providers of public services; to create a fair competitive environment for the provision of services by units and organizations of different economic sectors.

To continue effectively implementing preferential policies toward providers of public services under the socialization policy.

d/ Raising publicity, transparency, democracy and accountability in financial management of non-business units

To study and develop quality standards for non-business services provided for the society; to form a system of criteria for evaluation of levels of fulfillment and quality of performance of assigned tasks by public non-business units.

To perfect the information and reporting regime, finance and accounting work and accountability for performance of providers of public non-business services.

To intensify examination and supervision of providers of public services; to form independent accreditation and evaluation organizations.

4. Perfecting enterprise finance policies and mechanisms; restructuring state enterprises

a/ Further renewing enterprise finance policies and mechanisms on the basis of respecting the right to business freedom and creating an equal, stable, transparent, open and healthily competitive business environment. Effectively implementing tax and credit incentives for enterprises, especially small- and medium-sized ones;

b/ Concentrating on developing state enterprises in important industries and sectors which are key to the economy, ensuring major balances, macro-stability, security and defense, and in important localities. Building state economic groups which are strong in financial potential and effective in production and business and properly act as a tool of macro-regulation. The State invests capital only in groups, corporations and enterprises with 100% state capital in key industries and sectors after restructuring. State groups and corporations must only concentrate on their main business lines. To withdraw state capital from enterprises which the State does not need to hold dominating shares and from activities outside their main business lines. Establishing and increasing financial examination and supervision of state groups and corporations; strictly implementing compulsory audit to state groups and corporations;

c/ Perfecting financial policies in order to rearrange and renew, and raise the effectiveness of, state enterprises (those with 100% state capital and those in which the State holds dominating shares); carrying out equitization on market principles, adopting policies to attract and select strategic investors suitable to each enterprise. Resolutely dissolving and bankrupting enterprises which operate at a loss and ineffectively, resulting in state capital losses;

d/ Renewing the mechanism of state capital investment and the financial management mechanism for state-owned enterprises; clearly distinguishing state ownership from the right of enterprises to do business, and the relation between the State and representatives of state capital portions at enterprises. Perfecting the mechanism of management of state capital at enterprises. Promoting supervision by state owners of enterprises with state capital; stepping up the supervision and evaluation of the effectiveness of use of state capital.

5. Synchronously developing the financial market and financial services

a/ Developing the legal system on the financial market and financial services

To perfect the legal framework regulating the system of financial market and financial services with a view to enhancing macro-regulation by the State and supervising the effectiveness of activities on the market; to promote intensive development of the system of financial markets on the basis of diversifying financial institutions and commodities on the financial market.

To study amendments to the Securities Law. To effectively implement the Law Amending and Supplementing a Number of Articles of the Insurance Business Law; and international commitments on insurance services. To diversify insurance service products as required by the market.

To further build and perfect the legal framework for synchronous development of the markets of accounting, audit, credit rating, price appraisal consultancy, tax consultancy and customs agency services. To effectively implement the Law on Independent Audit.

To coordinate with related ministries and sectors in perfecting policies to promote development of non-cash payment products and services for safety purposes; to diversify payment services and promote electronic payment applications.

b/ Continuing perfecting the structure of the securities market

To restructure the securities market in order to ensure synchronous and balanced development of the stock market, the bond market and the derivatives market. To build a mechanism for connecting the monetary market with the capital and insurance markets.

To continue developing the market of government bonds, municipal bonds and corporate bonds. To encourage enterprises of all economic sectors to list their stocks and bonds and raise capital on the securities market.

To diversify types of product on the financial market. To increase supply of commodities for the securities market and improve the quality of supply sources through boosting new issuances and listings, and diversify financial tools for perfecting the market structure.

To develop and carry out information disclosure activities for public companies according to international standards; to apply international standards and practices of corporate governance and risk management, and formulate a mechanism to protect small investors.

To perfect the system of financial policies in order to promote and diversify the participation of domestic professional investment institutions and encourage investors to participate in the market; to connect Vietnam’s stock exchanges with ASEAN ones.

c/ Increasing operational capacity of participants in the financial market and providers of financial services

To restructure securities trading institutions and insurance enterprises so as to have strong financial potential and high prestige and professional qualifications, modern governance and healthy operation, ensuring liquidity and system safety. To form and develop credit-rating agencies.

To perfect the model of lottery enterprises, increase state control of enterprises dealing in betting and prize games, including casinos.

To continue developing and increasing the operation effectiveness and the role of professional associations in the sector of financial, accounting, audit, price, tax and customs services.

6. Stepping up international cooperation and proactive integration on finance

a/ Actively expanding financial cooperation relations

To take the initiative in proposing and participating in international cooperation programs to enhance the voice and status of Vietnam at international financial cooperation forums. To incrementally access advanced financial markets.

To expand policy dialogues and exchange of experiences on financial and monetary issues with foreign governments and international financial institutions. To diversify contents, forms and partners of international cooperation, combining international cooperation with serving requirements of modernization of the financial sector.

To expand channels of tapping and increasing the use effectiveness of financial and technical assistance sources in the financial sector.

b/ Consolidating and intensifying international integration in finance

To adjust and build financial mechanisms and policies in conformity with regulations and commitments within multilateral and regional frameworks as well as domestic socio-economic conditions. To responsibly implement Vietnam’s integration commitments in the financial sector.

To take the initiative in making effective and consistent policies on financial integration; to intensify the monitoring and supervision of the integration process for making rational adjustments to and minimizing negative impacts of this process.

7. Enhancing capacity and effectiveness of examination, inspection, supervision and assurance of national financial security

a/ Increasing capacity and effectiveness of specialized financial examination and inspection

To increase capacity and quality of financial examination and inspection in all fields; to raise the effectiveness of the internal supervision system and the role of off-site supervision.

To intensify financial inspection and examination of state-budget funded agencies and organizations; to detect and strictly handle illegal acts in the financial and budgetary sector and acts of corruption detected through examination and inspection.

To perfect and effectively implement the mechanism of coordination between financial inspection and supervision agencies and functional bodies in handling arising financial matters.

To intensify and raise the effectiveness of inspection, examination and supervision of specialized state management sectors (tax, customs, securities, treasury, reserves, insurance and price).

b/ Enhancing financial discipline, practicing thrift and combating wastefulness and losses of financial resources and national assets

To perfect and implement the system of norms, standards and regimes as a basis for practicing thrift and combating wastefulness. To enhance the role and responsibility of heads of agencies, organizations and units as well as individual civil servants and public employees in practicing thrift and combating wastefulness.

To step up the implementation of the regime of financial and budgetary publicity. To increase community and public supervision.

c/ Increasing the ability of supervision of the business sector

To perfect according to a roadmap mechanisms and systems of criteria for financial supervision of enterprises. To renew the method of financial supervision of state economic groups and corporations.

To strengthen the apparatus and personnel of enterprise finance management and supervision.

d/ Increasing risk supervision and management and assuring safety of national debts

To organize and evaluate the implementation of the Law on Management of Public Debts, raise the responsibility of related agencies and units using capital from public debts.

To develop and properly implement debt management tools, maintain debt indexes at safe levels as prescribed and according to international practices. To attach importance to risk management of debt portfolios.

To supervise the mobilization, distribution and use of loans, debt payment, public debt management, risk management, assurance of debt safety and national financial security; to step up the inspection and examination of law compliance of units using loans.

To further build, strengthen and perfect the database on public debts.

e/ Increasing the effectiveness of the State’s supervision of the financial market and financial services

To promote the role and function of supervision of the State of operations of the financial market and financial services on the principle of respect for market rules.

To perfect the supervision mechanism and apply supervision criteria and standards, ensuring synchrony, uniformity, transparency and conformity with international practices.

To strengthen the organization and enhance the capacity of financial supervision institutions; to increase cooperation and exchange of information among financial supervision agencies; to form a comprehensive, effective and efficient national supervision system.

f/ Enhancing macro-financial supervision capacity

To renew modes and methods of macro-financial supervision through establishing early financial and monetary warning systems.

To perfect the database and systematize indicators for collection of information and analysis and processing of macro-economic and financial data.

To develop and apply models of macro-economic and financial analysis and forecast.

8. Stepping up administrative reforms in the finance sector, perfecting methods of administering financial policy

a/ Continuing perfecting the legal system on administrative procedures in the financial sector

To synchronize the system of legal documents on administrative procedures in the finance sector; to reduce and improve the quality of administrative procedures in the finance sector; to simplify and publicize administrative processes and procedures to be equal, transparent, feasible and suitable to the conditions and levels of development of Vietnam and the process of international integration.

To study amendments to the Tax Administration Law and the Customs Law and processes and procedures for management of state budget revenues; to apply modern tax administration and customs control methods; to reform administrative procedures for cutting down tax and customs law compliance costs. To develop tax consultancy and customs agency services to be professional and effective.

b/ Modernizing national finance with a focus on stepping up application of information technologies

To step up the application of information technologies in the finance sector, strive to complete the building and development of major information systems in the finance sector by 2020; to integrate and synchronize financial information systems.

To basically form a national financial database and specialized databases; to establish an information system and manage and effectively exploit information systems for direction and administration work. To complete the building of technological foundations enabling the provision of electronic public services in the finance sector.

c/ Strengthening the organization of the finance management apparatus, ensuring unified administration and strict management of national finance

To decentralize management (of fields under the state management of the Ministry of Finance) between central and local levels on the principle of unified management of national finance.

To build an effective and rational apparatus of the financial sector which operates on the principle of multi-disciplinary management; to perform the major function of macro-management by law and policy, guidance, inspection and examination of implementation.

d/ Developing human resources of the financial sector to meet the requirements and tasks set out in the process of transition of the economy. Developing professional titles and criteria for cadres, civil servants and public employees of the financial sector; increasing the effectiveness of evaluation of cadres, civil servants and public employees based on their work performance.

e/ Perfecting methods of administering financial policies

To perfect methods of administering financial policies toward taking the initiative in assuring macro financial balances for each development period; to study and apply methods of budget administration according to economic cycles.

To strengthen the capacity of organizing implementation, assessing impacts and forecasting policies. To develop financial and budgetary analysis and forecast activities. To increase coordination and exchange of information between monetary and financial policies right in the stage of policymaking.

To promote public information on policies. To form a system of receiving feedback on financial policies and mechanisms from the public and enterprises.

III. ORGANIZATION OF THE STRATEGY IMPLEMENTATION

The finance strategy up to 2020 will be implemented in 2 stages corresponding to the financial-budgetary plans during 2011-2015 and 2016-2020 and concretized through the following 9 sectoral strategies:

1. Tax system reform strategy during 2011-2020;

2.  Customs development strategy up to 2020;

3. State treasury development strategy up to 2020;

4. National public debt and foreign debt strategy during 2011-2020, with a vision toward 2030;

5. Vietnam insurance market development strategy during 2011-2020;

6. Capital market development strategy up to 2020;

7. Vietnam securities market development during 2011-2020;

8. National reserves development strategy up to 2020;

9. Accounting and audit strategy up to 2020, with a vision toward 2030.

Article 2. Responsibilities for organizing and implementing 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 implementation of plans on the implementation of the strategy contents in each period;

b/ Guide and urge ministries, agencies and localities according to their functions and assigned tasks in elaborating and implementing programs and contents related to the strategy;

c/ Assume the prime responsibility for, and coordinate with related ministries and localities in, examining the implementation of the strategy; annually and once every five years review, evaluate and draw experiences from the implementation of the strategy;

d/ Assume the prime responsibility for, and coordinate with related agencies in, proposing and submitting the Prime Minister for decision the modification of the strategy’s objectives and contents when necessary.

2. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, balancing and arranging annual investment capital in accordance with the Law on the State Budget for implementation of the strategy.

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

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

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

Prime Minister
NGUYEN TAN DUNG