Vietnam will modernize its state budget management process, especially in tax and customs procedures, moving towards greater transparency, fairness, and efficiency on the basis of the application of digital technologies and big data.

Prime Minister Pham Minh Chinh. Source: VGP

Prime Minister Pham Minh Chinh made the conclusion following the recent meeting between the government’s leaders and the Ministry of Finance (MoF), stressing the priority should be to accelerate the digital transformation.

Chinh urged the ministry to set up monitoring instruments for budget-finance management at provinces/cities while raising the responsibilities of locality leaders in this regard.

“The MoF along with the Ministry of Planning and Investment is tasked with allocating state fund for priority projects with high spillover effects to boost socio-economic development,” noted Chinh.

The PM also called for a more focus on capital expenditure and reduce regular spending. Chinh, however, suggested the government would remain committed to social welfare policies and improving people’s living standards.

“Vietnam would not sacrifice social welfare for economic growth, especially supporting policies for vulnerable groups, remote areas and ethnic minority groups,” Chinh added.

For efficient state budget management, Chinh instructed the MoF to ensure greater deregulation in terms of budget collection and spending for provinces/cities.

Meanwhile, the MoF should continue to finalize the legal framework for securities and insurance markets for financial security and sustainability.

“National interests are at the focus of every policy-making process, while feasibility and efficiency are two major criteria,” he added.

Amid severe Covid-19 situation, the MoF is expected to closely follow domestic and international financial markets situation and have measures to deal with accordingly, Chinh stated, saying this would help enhance the economy’s resilience and adaptability against external shocks.