Minister Ho Duc Phoc: Golden opportunities for Nghe An to develop

Minister of Finance Ho Duc Phoc. Photo Quochoi.vn

PV:Dear Minister, with the responsibility assigned by the Party and the State, the Finance sector has made timely decisions to contribute to stabilizing the macro-economy, ensuring major balances in the context of the Covid-19 pandemic's profound impact, which has been highly appreciated by the business community. Could you please elaborate on this?

Comrade Ho Duc Phuc: In 2021, the Covid-19 pandemic continues to negatively impact the socio-economic development of our country. Implementing the direction and leadership of the Party, the State, the Prime Minister, the Finance sector has proactively advised and implemented synchronous solutions, flexibly combining financial and monetary policies, and other effective policies to help people and businesses overcome the difficulties of the COVID-19 pandemic.Ministry of FinanceStrengthening the fight against tax losses with many effective solutions, at the same time, advising the Government and the National Assembly to reduce 30% of value added tax; corporate income tax; reduce 50% of business household tax and exempt late payment penalties for enterprises with lower revenue than in 2019 with the reduction amount of this policy of about 21,300 billion VND; reduce 30% of environmental fees in aviation fuel; exempt 30 types of fees and charges; reduce 50% of registration tax on domestically produced cars; defer tax payment until December 31, 2021, about 115,000 billion VND and many other policies.

Cua Hoi Bridge seen from above. Photo: Le Thang

In addition, the Ministry of Finance has advised the National Assembly to agree to spend 38 trillion VND from the unemployment insurance fund for workers beyond the plan at the beginning of the year. The Ministry coordinated with the Ministry of Labor, War Invalids and Social Affairs to advise the Government to stipulate a support package of 26 trillion VND and advised the Prime Minister to establish a Vaccine Fund, which collected 8,792 billion VND. The Ministry has also proactively sourced funds to support localities in spending on epidemic prevention, purchasing supplies and biological products, and has enough budget to buy 150 million doses of vaccine for free for the entire population. Implemented a 10% cut in regular expenditures and 50% reduction in domestic and foreign business expenses to spend on epidemic prevention and control; advised the Government to provide 142 thousand tons of rice and Covid-19 epidemic prevention and control materials and equipment along with many other policies such as good management of the stock market, insurance market, price management, debt management, anti-inflation and mechanisms and policies to fight the epidemic and restore the economy.

A corner of Vinh city. Photo: Thanh Cuong

PV:Vietnam is implementing Government Resolution No. 128 on temporary adaptation to safely and flexibly control the Covid-19 epidemic. What solutions will the Finance sector have to ensure resources for fighting the epidemic while supporting the recovery and economic development of the country, Minister?

Comrade Ho Duc Phuc: To implement the Government's policy of both fighting the epidemic and restoring the economy, the Ministry of Finance has advised the Government to prepare enough funds to buy vaccines for the entire population and for children; prepare funds to buy medical equipment and supplies and funds to fight the epidemic in the current and upcoming period; and at the same time issue policies for officials participating in the fight against the epidemic.

In addition, the Ministry has strengthened its direction to reduce administrative procedures, remove difficulties and obstacles for businesses, build a connected ASEAN single window to facilitate import and export, attract investment, carry out digital transformation, and strongly apply information technology.

The Ministry of Finance is always at the forefront of applying IT in management. Focusing on combating tax evasion,combating tax evasion, vigorously issue electronic invoices to reduce costs, facilitate tax payment and management, this also aims to prevent invoice trading, VAT refunds, and tax profiteering. The Ministry of Finance directs the General Department of Customs and the General Department of Taxation to actively combat transfer pricing and tax collection on e-commerce platforms, digital platforms, and online sales. In addition, implement good price management; mobilize capital and be transparent in the stock market, combat stock manipulation, well manage the unsecured corporate bond market and the derivatives market, the insurance market, and public debt. Restructure public debt in an effective and economical direction.

The Finance sector directs and promotes the effectiveness of budget expenditure, especially development investment expenditure, and saves regular expenditure. For investment expenditure, cut ineffective projects, slow disbursement, and incomplete procedures. For regular expenditure, cut 10% of regular expenditure daily from the budget assignment stage, 15% for units implementing special mechanisms. The Ministry of Finance coordinates with the Ministry of Planning and Investment and the State Bank to participate in developing economic recovery programs, designing stimulus packages such as interest rate support, key project investment expenditure, social housing, job creation, etc. to restore economic development and increase employment and income. With an amount of about 461 trillion VND in investment expenditure, the interest rate support package for enterprises, and continuing to implement solutions for tax exemption, deferral, and fee exemption will continue to be implemented in 2022.

Besides, with the Government's solutions to improve institutions, attract investment, make breakthroughs in infrastructure, support workers, control inflation..., our country's socio-economy will certainly develop in the coming years.

PV:As a native of Nghe An and a former provincial leader, could the Minister talk about his feelings about Nghe An today and could he suggest some solutions for Nghe An to continue to make breakthroughs in the coming time?

Comrade Ho Duc Phuc: Nghe An is a rare land of talented people, a land with a heroic cultural and revolutionary tradition. Nghe An has many potentials and advantages, vast land, abundant human resources (ranked 4th in the country), hard-working and creative people with a burning desire for development.

Nghe An is also a province with a strategic geographical position in the North Central region; playing an important role not only in socio-economic development but also in the mission of trade between Vietnam and international markets (international border gates, deep-water seaports, national arterial roads and railways, Vinh international airport), with economic zones and many industrial zones, with many tourism resources, minerals, and vast land.

WHA Industrial Park in the Southeast Economic Zone. Photo: Thanh Cuong

Nghe An receives special attention from the Party and State, withResolution 26 - NQ/TW,The 2013 Resolution of the Politburo (the first Resolution issued for a province) and now the Resolution on piloting a number of specific mechanisms and policies for the development of Nghe An province, which was recently passed by the National Assembly, effective January 1, 2022, is the most vivid proof of the great concern of the Party and State.

Nghe An today is striving to develop with strong innovation, extremely favorable conditions and opportunities.

In my opinion, for Nghe An to develop rapidly, it is necessary to turn the economic development aspiration of the provincial leaders into the aspiration to get rich of the entire people, creating a creative and innovative economic development movement. Regarding the solutions that need to be prioritized, Nghe An needs to focus on the following breakthroughs: First, promote the development of infrastructure, including IT infrastructure, considering this as an important breakthrough. Expand the development of international airports, international seaports, international border gates, invest in modern traffic systems; develop infrastructure of economic zones, industrial parks, banks, schools, supermarkets, hospitals and IT infrastructure.

Second, strengthen administrative procedure reform to be quick, public and transparent to serve investors, businesses and people; promote digital transformation and strongly apply IT in handling public services, attracting investment, tax and land management, etc.

Third, focus on training and retraining high-quality human resources, focusing on information technology and high-tech engineering in industry, healthcare, and agriculture.

Another solution is to focus on attracting investment into the province, especially large investors, corporations with brands and modern technology, creating large-scale projects for the province. In addition to attracting industrial investment, focusing on tourism, services and developing high-tech agriculture and forestry, turning the Western Nghe An region into a rich agricultural region providing raw materials and products for the whole country and for export.

Ship docks at Vissai international port. Photo: Manh Hung

When the spirit of solidarity, creativity and dedication of many classes of people is aroused and maintained, combined with the right orientation and solutions, it will become a large-scale economic development movement, making the province's socio-economy develop rapidly.

I believe that one day soon Nghe An will become the economic center of the North Central region and the whole country!

PV:Thank you very much, Minister!