Full text of the responses to questions from the three ministers.
On June 11th, Minister of Finance Dinh Tien Dung, Minister of Education and Training Pham Vu Luan, and Minister of Justice Ha Hung Cuong answered questions from National Assembly deputies. Below is the full text of the ministers' responses.
Continuing the agenda of the 7th session of the 13th National Assembly, on the morning of June 11th, Minister of Finance Dinh Tien Dung continued to answer questions from delegates regarding the Ministry of Finance's responsibility in implementing PPP projects; solutions to help small and medium-sized enterprises stand firm and develop after the recession….
Responding to a question from delegate Le Thi Nguyet (Vinh Phuc) regarding the Ministry of Finance's responsibility in implementing PPP projects, Minister Dinh Tien Dung stated that the Government has issued Decree No. 24/2011/ND-CP dated April 5, 2011, amending several articles of Decree No. 108/2009/ND-CP on investment in the form of Build-Operate-Transfer (BOT), Build-Transfer-Operate (BTO), and Build-Transfer (BT) contracts.
The government issued Decree 108 of 2009, amending and supplementing several articles of Decree 24 regulating BOT and BTO investment forms. The Prime Minister issued Decision No. 71/2010/QD-TTg of 2010 on the promulgation of the pilot regulations on investment in the form of public-private partnerships (PPP).
To date, 298 projects have been registered under the PPP model, including 4 projects approved in principle by the Prime Minister, 3 projects currently under review, and 6 projects that have completed all necessary procedures.
In accordance with the aforementioned Decrees and Decisions, the Ministry of Finance has consulted with the Ministry of Planning and Investment on the planning of projects of ministries, sectors, and localities to be implemented under the PPP model; participated in the selection of investors and contract negotiations; participated in project appraisal; guided the implementation of project costs; and appraised the financial indicators of the contract, conditions, and payment methods for investors implementing the projects.
The Ministry of Finance, in coordination with the Ministry of Planning and Investment, has provided guidance, conducted inspections and audits within its authority regarding projects, and compiled assessments of project implementation to report to competent authorities.
The Ministry of Finance has issued Circular 166 regulating the management, use, and expenditure of projects and operating funds of state agencies authorized to manage projects. Minister Dinh Tien Dung affirmed that, with the solutions implemented, the Ministry of Finance has ensured payments for projects are made according to the prescribed rates, provided timely guidance to resolve project obstacles, and fulfilled the Ministry's responsibilities in implementing PPP projects.
Regarding solutions to help small and medium-sized enterprises (SMEs) stand firm and develop after the recession, Minister Dinh Tien Dung said that the Tax Management Law, which came into effect on July 1, 2013, stipulates that businesses with revenue not exceeding 20 billion VND are subject to a corporate income tax rate of 20%.
According to the Corporate Income Tax Law, small and medium-sized enterprises (SMEs) are allowed to reduce the frequency of value-added tax (VAT) declarations from 12 times/year to 4 times/year, meaning a shift from monthly to quarterly declarations, contributing to reducing capital pressure for SMEs. In addition, in 2011, the SME credit guarantee fund was established to support SMEs in overcoming difficulties and stabilizing production.
Minister Dinh Tien Dung further stated that, in the near future, the Ministry plans to submit to competent authorities solutions to extend tax payment deadlines and waive late payment penalties for struggling businesses; expedite value-added tax refunds for investment projects exceeding 100 billion VND that require bank loans for machinery and equipment imports; and extend tax payment deadlines by up to two years for projects that have not yet received basic investment capital payments.
The package includes exemptions from personal income tax for owners of offshore fishing logistics vessels; exemption from personal income tax for Vietnamese crew members working for foreign shipping companies; deduction and refund of value-added tax on fixed assets for socialized healthcare and education projects; and strengthening measures to combat fraud and tax evasion, creating a level playing field for businesses operating in difficult circumstances…
Responding to concerns raised by delegate Nguyen Sy Cuong (Ninh Thuan) regarding drug prices, drug price management, and the effectiveness of drug price management, Minister of Health Nguyen Kim Tien stated that Vietnam currently manages drug prices according to the 2005 Pharmaceutical Law and, more recently, the Price Law.
In the last two years, the Ministry of Health has managed drug prices through Circulars, specifically Circular 01, and more recently Circulars 11, 36, and 37. New points in these Circulars include the division of drugs into groups that meet standards… This contributes to making drug price bidding more open, transparent, and objective, compared to mixing different drug groups together.
Regarding drug management in Vietnam, Minister Kim Tien stated that there are currently two main types of drugs: those covered by the state budget and those not covered by the state budget. Accordingly, countries around the world only regulate drugs covered by the state budget, while market-based drugs are controlled by the market. However, in Vietnam, both types of drugs are strictly regulated in terms of price.
Regarding the price of medicines in Vietnam compared to other countries in the region, Minister Nguyen Kim Tien affirmed that, despite being a sensitive and essential commodity, the price of medicines in Vietnam ranks 8th and 9th in the Consumer Price Index (CPI). The Ministry of Health organized a survey team including the Ministry of Finance, the Ministry of Planning and Investment, the National Assembly's Committee on Social Affairs, and experts to survey 36 common items in hospitals in China and Thailand. According to the survey, the price of medicines in Vietnam is 1.5 to 2 times lower than in China and 2 to 3 times lower than in Thailand.
To encourage consumers to use domestically produced medicines, Minister of Health Nguyen Kim Tien said that in the coming time, the Ministry of Health will continue to promote the implementation of the "Vietnamese People Prioritize Using Vietnamese Medicines" project; and develop the "Vietnamese Stars" project to select high-quality, reasonably priced Vietnamese medicines. As a result, the quality of domestically produced medicines is increasing, and the percentage of Vietnamese people using Vietnamese medicines has doubled in recent times…
Concluding the questioning session with Minister of Finance Dinh Tien Dung, National Assembly Chairman Nguyen Sinh Hung highly appreciated the detailed, specific, and concise questions from the delegates. He noted that the responses from Minister of Finance Dinh Tien Dung and the explanations from Ministers of Industry and Trade Vu Huy Hoang, Planning and Investment Bui Quang Vinh, and Health Nguyen Thi Kim Tien were frank, open, and focused on the key issues.
National Assembly Chairman Nguyen Sinh Hung requested that ministers pay attention to resolving and effectively implementing the issues raised by National Assembly deputies regarding public debt, the ability to balance debt repayment sources and solutions to reduce public debt to ensure the safety of the national financial system; balancing state budget revenue and expenditure, fiscal discipline; transfer pricing, incorrect tax refunds and tax evasion, fraud in tax declarations causing revenue losses for the state budget; management, control and stabilization of market prices, especially for essential goods that directly affect people's lives such as gasoline, electricity and the restructuring and equitization of state-owned enterprises…
Also this morning, the question-and-answer session with Minister of Education and Training Pham Vu Luan focused on issues of concern to National Assembly deputies, such as the quality of education and training, with a particular focus on the quality of undergraduate, master's, and doctoral training, the employment rate of graduates; and the implementation of the Central Party Committee's Resolution on comprehensive and fundamental reform of education and training.
The questioning of Minister Pham Vu Luan continued into the afternoon. Also this afternoon, the National Assembly questioned Minister of Justice Ha Hung Cuong regarding the implementation of the 2013 Constitution; the implementation of the National Assembly's Resolution on guiding the implementation and ensuring the uniformity of the legal document system for draft laws; the quality of legal documents, ordinances of the Standing Committee of the National Assembly, the National Assembly, and Government decrees in the past; and the limitations and shortcomings in civil enforcement work and solutions to overcome them.
According to chinhphu.vn/Vietnam+
