1. Managing and operating an effective, expansionary fiscal policy
This is the fourth consecutive year that the Ministry of Finance continues to submit to competent authorities and issue support policies with a scale of about 200,000 billion VND.
Some typical financial support policies include submitting to the Government and the National Assembly a 2% reduction in VAT rates from July 1, 2023 to December 31, 2023; Issuing Circular No. 44 reducing the collection of 36 fees and charges to support and reduce costs for businesses and people; Issuing Decree No. 41 reducing registration fees for domestically produced and assembled cars; Issuing Decree No. 12 extending the deadline for paying VAT, corporate income tax, personal income tax and land rent in 2023.
2. Digital transformation, towards smart finance
2023 is the 9th consecutive year that the Ministry of Finance is among the top 3 ministries and ministerial-level agencies in terms of PAR Index with an Administrative Reform Index of 89.76%. Regarding the Public Finance Reform Index, the Ministry of Finance continues to be one of the leading ministries, achieving a rate of over 96%.
In tax management, in 2023, the process of promoting digital transformation and electronicization of tax management continued, typically: The electronic tax declaration system was deployed in 63/63 provinces and cities and 100% of affiliated Tax Departments; 99.9% of enterprises participated in using electronic tax declaration services, receiving more than 15.6 million records.
3. Fitch Ratings upgrades Vietnam's long-term national credit rating to BB+, outlook "Stable"; There are many solutions to promptly manage and monitor the stock market
On December 8, 2023, Fitch Ratings upgraded Vietnam's long-term national credit rating to BB+, with a "Stable" outlook.
The Ministry of Finance also put into operation the private corporate bond trading system at HNX on July 19, 2023. The transaction value through the system has increased and reached nearly VND 1,300 billion/session. Organizing private corporate bond trading through the state-managed system has contributed to improving transparency, liquidity and confidence of the investing public.
At the same time, we have actively worked with market rating organizations such as FTSE Russell and MSCI to continue accelerating the process of upgrading Vietnam's stock market.
Debt structure is positive, domestic debt balance is increasing, accounting for about 71% of government debt balance.
4. Tight and effective public debt management
The scale of public debt by the end of 2023 is about 37% of GDP, much lower than the ceiling of 60% set by the National Assembly. Government debt is about 34% of GDP, much lower than the ceiling of 50%. This outstanding debt level is much lower than the average in 2023 of countries with BB credit ratings of 52.8% of GDP and BBB of 54.9% of GDP.
Positive debt structure, domestic debt increased, accounting for about 71% of government debt, contributing to minimizing exchange rate risks.
Foreign debt is gradually decreasing in the Government's borrowing structure. The current foreign debt portfolio is mainly long-term loans with preferential interest rates; contributing to increasing sustainability in the face of exchange rate fluctuations of strong currencies globally .
5. Improve laws and reduce many fees and charges when implementing online public service operations
As of December 26, 2023, the Ministry of Finance has submitted to the Government and the National Assembly for approval 1 Law and 1 Resolution; submitted to the Government for promulgation 19 Decrees and is considering promulgating 15 Decrees; submitted to the Prime Minister for promulgation 6 Decisions; issued under its authority 64 Circulars.
In addition, in order to encourage the use of online public services, the Ministry of Finance issued Circular No. 63 reducing a number of fees and charges for performing online public services. Accordingly, from December 1, 2023 to December 31, 2025, there will be 8 fees and charges when performing online public services with a reduction of 10 - 50%. It is estimated that the estimated amount of support for people and businesses when implementing this policy is about 100 billion VND/year.
6. Congress passes resolution on global minimum tax
On November 29, 2023, at the 6th Session, the 15th National Assembly officially passed Resolution No. 107 on global minimum tax. This is a necessary step and with its application from January 1, 2024, Vietnam affirms its position and right to tax the country, contributing to increasing revenue for the State budget from additional tax collection, contributing to strengthening international integration and reforming the tax system in accordance with international practices.
Accordingly, Vietnam will apply two regulations: The IIR minimum taxable income aggregate regulation applied to Vietnamese corporations investing abroad and the QDMTT standard domestic supplementary minimum tax regulation applied to multinational corporations with production and business activities in Vietnam.
7. Control inflation, manage budget deficit tightly and effectively
To have more resources to increase development investment spending and promote economic recovery, the Ministry of Finance has submitted to competent authorities for decision the estimate of the State budget deficit in 2023 at 4.42% of GDP.
During the operation, the budget deficit was strictly controlled, borrowing was managed, and government bonds were issued in accordance with the revenue schedule, the ability to disburse investment capital, and the state budget balance, thereby saving interest costs for the state budget. The estimated state budget deficit was about 4% of GDP (a decrease of VND 40,300 billion compared to the estimate).
2023 is also the 8th consecutive year that the Ministry of Finance has controlled inflation below the target set by the National Assembly. CPI in 11 months increased by 3.2%, core inflation increased by 4.38%. It is estimated that the CPI will increase by about 3.5% for the whole year (target is about 4.5%).
In 2023, the Customs sector arrested and handled nearly 16,000 violations in the customs field.
8. Successfully detected and arrested many cases of smuggling, trade fraud, and drugs in large quantities.
In 2023, the entire Customs sector arrested and handled nearly 16,000 violations in the customs field, with the value of violated goods of about 12,500 billion VND; including many typical cases, such as: seizing over 65,000 liters of D/O oil, FO and gasoline of all kinds, 8.3 tons of ivory, 37 kg of rhino horn, 2.8 tons of drugs of all kinds... The Customs agency prosecuted 40 cases, and transferred 186 cases to other agencies for prosecution.
9. Strengthening deep and comprehensive international cooperation in the financial field
In 2023, the Ministry of Finance has implemented many activities to promote deep and comprehensive cooperation in the financial sector. Notably, the foreign affairs activities of the Minister of Finance include: Working in the Grand Duchy of Luxembourg and the Kingdom of Belgium in July 2023; Activities in the United States within the framework of the working trip of the Vietnamese high-ranking delegation led by Prime Minister Pham Minh Chinh to participate in the High-Level Week of the 78th Session of the United Nations General Assembly, September 20.
In November 2023, Minister Ho Duc Phoc attended the APEC Finance Ministers' Meeting 2023 in San Francisco as part of the APEC Finance Ministers' Meeting 2023 hosted by the United States. In addition, Minister Ho Duc Phoc chaired the Financial Investment Promotion Conferences organized by the Vietnamese Ministry of Finance in Los Angeles, attracting a large number of investors including large investment funds, corporations, and US businesses.
10. Social security work is implemented practically and effectively.
Faced with the complicated and unpredictable situation of natural disasters and floods, implementing the Prime Minister's Decisions, in 2023, the Ministry of Finance has issued food and national reserve equipment with a total value of about 1,448 billion VND.
In addition, the Ministry of Finance and its units and enterprises have built 100 gratitude houses for poor households in Bac Kan; 50 gratitude houses for poor and near-poor households in Nghe An province; 141 gratitude houses for poor and near-poor households and families in especially difficult circumstances in Muong Ang district, Dien Bien; and built schools for students at Vinh An Primary School, Tay Son, Binh Dinh .
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