Regarding the implementation of the work agenda in July 2020 and the implementation of the work agenda in August 2020 of the Ministry of Finance

Regarding the implementation of the work agenda in July 2020 and the implementation of the work agenda in August 2020 of the Ministry of Finance 08/08/2020 03:03:00 515

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Regarding the implementation of the work agenda in July 2020 and the implementation of the work agenda in August 2020 of the Ministry of Finance

I. ASSESSMENT OF THE IMPLEMENTATION OF THE WORK AGENDA IN JULY 2020

1. The work of formulating and improving financial mechanisms and policies

- The agenda of formulating laws and ordinances to be submitted to the National Assembly: According to the work agenda, the Ministry of Finance is responsible for drafting and submitting 03 Resolutions to the Government. As of 29 July 2020, the Ministry of Finance had completed 100% of the assigned tasks under the agenda on formulating laws and ordinances in 2020.

In addition, the Ministry of Finance submitted to the Government for submission to the National Assembly’s Standing Committee (NASC) 04 Resolutions of the NASC, 03 of which were approved by the NASC and 01 of which was submitted to the Government for submission to the NASC (Resolution of the NASC on adding medical supplies and equipment to the List of National Reserve Goods). The Ministry of Finance submitted Decree No. 70/2020/ND-CP dated 28 June 2020 to the Government for promulgation, the Decree provided for the registration fee for domestically manufactured and assembled cars until 31 December 2020.

- Schemes submitted to the Government and the Prime Minister: As of 31 July 2020, the Ministry of Finance had had 03 schemes submitted to the Government.

- Schemes under the authority of the Ministry of Finance and regular work under the agenda: By the end of 31 July 2020, the Ministry of Finance had issued under its authority 08 Circulars.

2. The implementation of the state budget plan and the management and administration of state budget revenues and expenditures

2.1. State budget revenues and the management and administration of state budget revenues

The total balanced state budget revenue in July was estimated at VND 107.9 trillion. Accumulated revenues in 7 months reached VND 779.8 trillion, equaling 51.6% of the plan, down 13.1% compared to the same period of 2019 (the central budget was estimated to have reached 48.3% of the plan; local budgets were estimated to have reached 55.8% of the plan). Of which:

- Domestic revenues: The accumulated 7-month revenues were estimated at VND 649.9 trillion, equaling 51.4% of the plan, down 10.6% compared to the same period of 2019 (the same period of 2019 reached 62% of the 2019 plan, up 13.2%) .

Following the Government's guidelines and the Prime Minister's instructions, the Ministry of Finance proposed solutions on preferential tax treatment, tax exemption, tax reduction, and extension of payment deadlines of taxes and other budget revenues to remove difficulties for enterprises and business households. Tax and Customs authorities focused on implementing solutions set out by the Ministry of Finance, especially measures to extend payment deadlines of taxes and land rent to remove difficulties for enterprises and business households as a response to the pandemic according to Decree No. 41/2020/ND-CP dated 8 April 2020 of the Government.

In addition, the Tax authorities also strengthened the inspection and supervision to prevent policy abuses of the state budget; strictly handled tax violations.

Regarding the implementation of Decree No. 41/2020/ND-CP and Resolution No. 42/NQ-CP, according to the quick reports of tax departments as of 27 July 2020:

+   The Tax authorities received about 170,000 requests for tax and land rent payment deadline extension. The amount of tax and land rent whose payment deadlines were extended was VND 53 trillion (in which: value-added tax (VAT) was VND 28.5 trillion, corporate income tax was VND 20.5 trillion, land rent was VND 3.4 trillion; VAT and personal income taxes of business households and individuals in the first quarter of 2020 were VND 0.6 trillion).

+  The Tax authorities focused on promoting communications about the State's policies, promptly and properly received and processed dossiers for business households facing difficulties due to the Covid-19 pandemic. As of 27 July 2020, 44.6 thousand business households had sent their dossiers to the communal People's Committees and 11.6 thousand dossiers had been sent to the provincial People's Committees for appraisal. The localities provided funding to about 12.6 million subjects; the total amount of funding was VND 12.4 trillion, in which, the central budget provided VND 2.9 trillion to 26 localities to perform this task.

- Revenues from crude oil: Accumulated 7-month revenues were estimated at VND 23 trillion, equaling 65.4% of the plan, down 32.6% compared to the same period of 2019. Average crude oil payment price reached USD 48.3/barrel, lower than estimated prices (by USD 11.7/barrel), equaling about 70.5% of the figure of the same period in 2019; The output was estimated at 5.5 million tons, equal to 61.8% of the plan, equivalent to 79.5% of the figure of the same period in 2019.

- Income from import and export activities: The accumulated revenues in the first 7 months were estimated at VND 106.47 trillion, equaling 51.2% of the plan, down 20.5% compared to the same period of 2019, on the basis of the total tax revenues estimated at VND 175 trillion, equaling 51.8% of the plan, down 15.3% compared to the same period of 2019; VAT refund in accordance with the prescribed regime was about VND 68.53 trillion.

The global situation of the Covid-19 pandemic is becoming more complicated, affecting international trade by decreasing demands for goods and creating difficulties in customs clearance. The total import and export turnover of goods in the first 7 months of the year was estimated at USD 285.1 billion, down 1.3% compared to the same period of 2019, of which import turnover of a number of items with large budget revenue contributions decreased, such as: gasoline and oils of all kinds (down 48.7%), cars (down 47.6%), iron and steel (down 14.1%), machinery, equipment, tools and spare parts (down 4.2%), .... which reduced budget revenues from import and export activities.

2.2. State budget expenditures and the management and administration of state budget expenditures

Total state budget expenditures in July were estimated at VND 117.3 trillion. Accumulated expenditures in 7 months reached VND 855.5 trillion, equal to 49% of the plan, up 10.1% compared to the same period of 2019; of which: expenditures for investment and development reached nearly VND 192 trillion, equaling 40.8% of the estimate, still low compared to the requirements, interest payment was VND 68.27 trillion, equaling 57.8% of the plan, approximating to the figure of the same period in 2019; recurrent expenditures reached VND 589.8 trillion, equal to 55.8% of the plan, up 4.2% compared to the same period in 2019 (of which the state budget spent about VND 17.67 trillion on pandemic prevention and control and on providing support to people facing difficulties caused by the Covid-19 pandemic).

In general, the state budget completed the budget expenditure tasks in July and the first 7 months of the year in accordance with the plan and unexpected tasks related to the prevention of natural disasters and epidemics. By now, the state budget has spent about VND 17.67 trillion on pandemic prevention and control and on providing support to people facing difficulties caused by the Covid-19 pandemic, of which: expenditures on pandemic prevention was about VND 5.37 trillion; financial support for 12.4 million people affected by the Covid-19 pandemic under the Government's Resolution No. 42/NQ-CP was about VND 12.3 trillion. In addition, about 13.6 thousand tons of rice from the National Reserves have been provided to people in need, to relieve hunger and overcome the consequences of natural disasters and transitional periods between harvests at the beginning of the year.

Implementing Resolution 122/2020/QH14 of the 9th session, XIV National Assembly on 19 June 2020 and Resolution No. 84/NQ-CP dated 29 May 2020 of the Government, the Ministry of Finance issued guidelines for ministries, central and local agencies to reduce at least 70% of the planned expenses related to domestic/foreign business trips and conferences and to save an additional 10% of planned recurrent expenditures in 2020, especially with regard to non-essential procurement expenditures...

2.3. Regarding the balance of the state budget and capital mobilization

Balance of central budget and local budgets was guaranteed. As of 28 July 2020, the Ministry of Finance issued VND 154.68 trillion of government bonds under the 2020 plan to pay off due bonds and to issue debts with Vietnam Social Security in accordance with the Resolution of the National Assembly (VND 9.090 billion), with an average term of 13.41 years, the average interest rate is 2.96%/year (the average rate in 2019 was 4.51%/year).

3. Results of implementing a number of key tasks

3.1. Corporate finance management and equitization and divestment of state-owned enterprises

- Regarding the equitization situation: in the first 7 months of 2020, the Ministry of Finance received a report regarding the approval of the equitization plans of 06 enterprises. The number of enterprises still having to implement equitization according to the 5-month plan in the later half of 2020 is 91 enterprises.

- Regarding the divestment situation: according to the report of the units in 7 months, there are 10 enterprises on the list that must implement divestment under Decision No. 1232/QD-TTg with a book value of VND 260 billion, earning VND 678 billion. In the first 7 months of 2020, business groups and general corporations implemented divestment with a book value of VND 601 billion, earning VND 1,110 billion.

3.2. Price and market management

The Ministry of Finance has actively coordinated with ministries, sectors and localities to implement solutions to stabilize market prices, especially with regard to essential commodities such as staple foods, non-staple foods, commodities for Covid-19 pandemic prevention and control and raw materials used in production and business activities whose prices are determined by the State.

Gasoline and oil prices have been closely monitored and adjusted in line with world gasoline and oil price fluctuations. Along with the trend of price movements in the international market, the retail prices of petroleum products in the country from the beginning of the year until now have been adjusted down 8 times, up 5 times, and to be kept stable once (for gasoline products); regarding oil products, the prices have been adjusted down 9 times, up 4 times and to be kept stable once.

Thanks to the implemented solutions, the market price levels in the first 7 months of the year did not witness significant changes.

3.3. Management of financial services and the financial market

- Regarding the stock market: On 31 July 2020, the Vn - Index reached 798.39, down 16.92% compared to the end of 2019; The size of the stock market was about VND 3,83