Quyết định 368/QD-TTg

DECISION

APPROVING FINANCIAL STRATEGY BY 2030

THE PRIME MINISTER

Pursuant to the Law on Government Organization dated June 19, 2015; the Law on amendments to some articles of the Law on Government Organization and Law on Local Government Organization dated November 22, 2019;

Pursuant to the Government’s Decree No. 87/2017/ND-CP dated July 26, 2017 defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Resolution No. 50/NQ-CP dated May 20, 2021 promulgating the Government’s action program for implementation of Resolution of the 13th National Congress of the Communist Party

Pursuant to Resolution No.16/2021/QH15 dated July 27, 2021 of the National Assembly on five-year socio-economic development strategy during the 2021 – 2025 period

Pursuant to Resolution No. 23/2021/QH15 dated July 28, 2021 of the National Assembly regarding national financial, borrowing and public debt repayment strategy for 2021 – 2025 period

Pursuant to Resolution No. 43/2022/QH15 dated January 11, 2022 on fiscal and monetary policies for supporting socio-economic recovery and development program

At the request of the Minister of Finance;

HEREBY DECIDES:

Article 1. The financial strategy by 2030 (hereinafter referred to as “Strategy”), with the following contents, is approved:

I. VIEWPOINTS, OBJECTIVES AND TASKS

1. Viewpoints

The development and implementation of the financial strategy by 2030 shall be associated with the following key viewpoints:

a) The national financial policy plays the leading role in mobilizing, liberating and aiming at the effective allocation and use of domestic and foreign resources in order to prioritize the socio-economic development and contributes to innovation of the model and improvement of the quality of growth according to the development of human resources, science and technology, creative innovation and digital transformation.

b) The reform and improvement of the quality of financial institution towards synchronization, transparency and integration are prerequisites for promotion of national finance for the purpose of healthy development. Synchronously and effectively use instruments of the fiscal policy, closely cooperate with the monetary policy and other policies in controlling inflation, stabilizing the macro economy, ensuring major relationships of the economy and facilitating the quick and sustainable development. At the same time, focus on the synchronous and harmonious development of the types of markets, economic zones and enterprises. The development of the individual economy is an important motivation of the economy.

c) The restructuring of the state budget and management of public debt shall be included in the restructuring of overall economy; ensure the leading role of the central budget and the initiative of the local budget; improve the efficiency of mobilization and use of state budget in order to create other resources; utilize the advantages of the regions; balance the resources of the harmonious development between the socio-economic sector and environmental protection and adapt to climate change.

d) Manage finance according to regulations of the law and enhance financial discipline; improve the quality of inspection, examination, prevention and control of corruption and wastefulness; promote the application of information technology and digital financial platform in order to continue to modernize the financial sector.

2. General objectives

Build the sustainable, modern and integrated national finance in order to contribute to promotion of the growth, enhancement of the resistance of the economy and assurance about the stability of macroeconomic sector and the security of national finance Implement the policy on effective mobilization, improve fiscal space, facilitate effective mobilization, allocation and use of financial resources, harmoniously handle problems regarding the socio-economic development and environmental protection and ensure national defense and social security in association with objectives and tasks of the strategy for socio-economic development from 2021 to 2030.

3. Specific objectives and tasks

a) Ensure financial and budget resources in order to contribute to the achievement of objectives and tasks of the socio-economic development, national defense and security

- The average rate of contributions to state budget is expected to be at least 16% of GDP in the 2021-2025 period and 16-17% of GDP in the 2026-2030 period. In particular, the rate of contributions to state budget from taxes and fees is expected to be 13 – 14% of GDP in the 2021 – 2025 period and 14 – 15% of GDP in the 2026 – 2030 period.

- The proportion of domestic revenue in the total state budget revenue is expected to be about 85-86% by 2025 and about 86-87% by 2030.

b) Effectively manage the state budget expenditures; continue to restructure the state budget expenditures towards suitability; prioritize the development investment expenditure and assurance about resources for the purpose of repayment, strengthen the state budget resources for the purpose of state reserves, increase development investment expenditure on human resources and assurance about social security.

- In the 2021 – 2025 period, the average proportion of frequent expenditure in the total state budget expenditures is expected to be about 62 – 63%. The average proportion of development investment expenditure in the total state budget expenditures is expected to be about 28%. The proportion of the development investment expenditure is expected to increase to about 29% . The proportion of frequent expenditure is expected to decrease to about 60%. In the 2026 – 2030 period, continue to save frequent expenditure and increase the accumulation of development investment expenditure from state budget.

- In the 2021 – 2030 period, prioritize the allocation of the state budget in order to increase the potential for state reserve in conformity with the state budget to be ready for quick and effective response to sudden and urgent situations, successfully complete tasks assigned by the Government and the Prime Minister.

c) Gradually reduce the state budget deficit; strictly manage public debt and ensure the safety of public debt and the security of national finance.

- Increase revenues, save expenditures and reduce state budget deficit in order to achieve the targets of state budget deficit specified in the national financial, borrowing and public debt repayment strategy for 2021 – 2025 period. The average rate of budget deficit in the period of 2021 – 2025 is expected to be 3,7% of GDP and decrease to about 3% of GDP by 2030. In case of considerable fluctuations or risks, the Ministry of Finance shall promptly report to the Government. The Government will submit the report to the National Assembly for consideration and decision.

In the 2021 – 2025 period, the upper limits of annual public debt is expected to be at most 60% of GDP. The government debt is expected to be at most 50% of GDP. The Vietnam’s external debt is expected to be at most 50% of GDP. By 2030, the public debt is expected to be at most 60% of GDP. The government debt is expected to be at most 50% of GDP. The Vietnam’s external debt is expected to be at most 45% of GDP

d) Synchronously, transparently and sustainably develop the financial market and financial services

- Develop stable, safe, effective and reasonable securities market; balance monetary market with capital market; stock market with bond market and derivatives market. By 2025, the capitalization of stock market is expected to be 100% of GDP. The balance of bond market is expected to be at least 47% of GDP, in which the balance of bond market of enterprises is expected to be at least 20% of GDP. By 2030, the capitalization of stock market is expected to be 120% of GDP. The balance of bond market is expected to be at least 58% of GDP, in which the balance of bond market of enterprises is expected to be at least 25% of GDP.

- Comprehensively develop the insurance market in order to meet the diverse demands for insurance of organizations and individuals in the economy. The average growth rate of the insurance sector in the 2021 – 2025 period is expected to be 15% per year and 3 – 3.3% of GDP per year by 2025. In the 2026 - 2030 period, the average growth rate is expected to be 10% per year and 3.3 – 3.5% of GDP per year by 2030.

- Stably develop the accounting and audit service market; improve the quality of accounting and audit service; ensure that all large-scale enterprises and units will have the financial reports that are audited without consideration of their forms of operation and ownership by 2025.

- Enhance the transparency in the appraisal of prices, gradually improve the capability and quality of appraisal of prices.

dd) Accelerate innovation in financial mechanism for the public service sector; restructure and improve the efficiency of operations of state-owned enterprises

- Complete the regulations on innovation of mechanism for management, financial mechanism and restructuring of the system of public service providers; complete the roadmap for calculation of the prices of public administrative services in certain sectors. In the period of 2021 – 2025, the average rate of state budget expenditure on public service providers is expected to decrease by 10% compared to that in the period of 2016 – 2020. 2026 - 2030 period. In the period of 2026 – 2030, the average rate of state budget expenditure on public service providers is expected to decrease by 15% compared to that in the period of 2021 – 20205.

- By 2025, complete the restructuring of state-owned enterprises. By 2030, consolidate and develop some large-scale state economic corporations with effective operations and competitiveness in local and international markets in some key sectors and fields of the economy.

e) Promote implementation of mechanisms for pricing management and administration under the market mechanism according to regulations of the State

Continue to innovate and improve measures for the management of prices under the market mechanism according to regulations of the State; accelerate the application of market prices to some public goods and services. By 2025, complete the national database system for prices, ensure the connection between data and central, local authorities.

g) Promote the application of information technology and digital financial platform, modernize national finance

- Develop the integrated tax management information system in a public, transparent and effective manner.

- Build the formal and modern customs on the same levels as the customs of developed countries in the world; lead in the implementation of the digital government with the model of digital customs and smart customs

- Develop the digital state budget and accounting management information system in order to contribute to establishment of the digital Treasury by 2030.

- Promote modernization of the application of information technology to the management of national reserve goods, the supervision of the securities market aiming at the modern and effective market.

II. BREAKTHROUGHS OF FINANCIAL STRATEGY

1. Promote completion and improvement of the quality of financial institution in order to ensure the adequacy, synchrony and integration; reform the mechanism for decentralization of management and allocation of state budget in order to ensure the key role of central budget and the initiative of local budget; restructure state budget; transparently and sustainably develop a financial market.

2. Innovate financial policies and mechanisms for development of human resources, science and technology and creative innovation. Promote modernization and development of digital financial platform according to the application of information technology in association with the digital transformation.

3. Develop financial potential for development of the socio-economic infrastructure system; prioritize resources in order to perform tasks of the recovery and development of economy.

III. MEASURES FOR IMPLEMENTATION OF FINANCIAL STRATEGY BY 2030

1. Complete the policies on mobilization of national financial resources, improve the effectiveness and efficiency of the management of state budget revenues

a) Continue to complete synchronous and sustainable system of the policies on state budget revenue and ensure the reasonable mobilization of resources for the state budget in order to contribute to creation of a competitive environment in conformity with the process of economic integration and development

Complete the system of policies on revenue in association with restructuring of the state budget revenues by taking into account all sources of revenue and expansion of the revenue establishments, especially the new revenue sources in conformity with the practical situation, commitments to international integration and good international practices. Research and set reasonable tax rates, ensure the equality and neutrality of the tax policy system. Increase the proportion of domestic revenue in total state budget revenue, ensure a reasonable proportion of direct taxes to indirect taxes. Review and adjust tax incentives, eliminate tax incentives that do not meet requirements for development; minimize the integration of social policies into tax and revenue laws. Implement tax measures in order to assist enterprises and people to overcome difficulties due to the Covid-19, restore and develop economy, ensure the balance of finance - state budget.

Complete the mechanisms and policies on taxes to encourage the development of science and technology and creative innovation in conformity with the target of development and application of new technology, prior technology and national innovation centers.

Complete the policies on budget revenues from land, assets and natural resources; provide appropriate mechanisms for extraction of resources from land for the development of the socio-economic infrastructure. In particular, continue to implement agricultural land use tax exemption and reduction until the end of 2025 in accordance with the policy of the Communist Party and State on the development of agriculture, farmers and rural areas Research and complete the non-agricultural land use tax policy towards increasing the rates of tax on land and introducing a new tax on houses in order to encourage effective use of houses and land, contribute to restriction of the speculation about houses and land, ensure mobilization of the valuable and stable sources of revenue for the state budget in conformity with the socio-economic conditions and international practices. Develop the policies on management of taxes in association with the management of land and houses of relevant central authorities. Research and regulate the value added tax from land that is not brought by investors through the policies on taxes, collection of land use levy and land rent. Research and adjust the natural resource tax policy, ensure that the policy continues to be an effective instrument that contributes to management and protection of natural resources and encourages the economical and efficient use of natural resources.

b) Mobilize non-state budget resources

Continue to complete the legal framework for investment in the form of public-private partnership (PPP), encourage the participation of all economic components in investment in the development of economic and technical infrastructure, agriculture and rural areas, especially the projects on application of hi-tech, clean technology; the projects on development of green economy, organic agriculture, bio-agriculture and the projects on investment in especially difficult areas.

Complete the policy on attracting foreign investment, shift the focus of the policy on attracting and cooperating with foreign investors from quantity to quality; prioritize projects that create high added value, have the modern models for administration, are connected with the global supply chain, have widespread effects, are closely connected with domestic economic zones, environmental protection and sustainable development.

c) Enhance the management of state budget revenues and customs

Complete the institutions of management of tax and customs towards increasing the effectiveness and efficiency of the management of tax and customs according to application of modern technology in order to contribute to removing difficulties and problems, facilitating taxpayers and preventing tax losses and frauds; prevent transfer of prices and effectively manage new sources of revenues arising from e-commerce and digital economy; at the same time, promote voluntary observance according to the level of observance of each group of taxpayers and in accordance with the requirements of the e-Government and digital government. Prevent and control smuggling, trade frauds and illegal cross-border transportation of goods in the management of imports and exports, ensure economic security and social safety. Promote the application of information technology, reform in administrative procedures in order to improve the business environment and the national competitiveness, reduce the tax compliance costs of people and enterprises.

2. Improve the efficiency of allocation, management and use of financial resources in association with the promotion of the process of economic restructuring and sustainable development

a) Improve the oriented role of state financial resources in investment in socio-economic development

Improve the efficiency of state budget expenditures and restructure the State budget expenditures towards sustainable expenditures; prioritize resources to increase development investment expenditures, focus on important and urgent tasks of the State serving the socio-economic recovery and development, national defense and security.

Promote restructuring of public investment expenditures, improve the effectiveness and efficiency of the allocation and disbursement of the public investment capital, improve the leading role and the seed capital of the state budget, promote the attraction of non-state budget investment capital to increase the investment resources in the whole of society; make breakthroughs in construction of infrastructure and urban centers in a synchronous, modern, green and environmentally friendly manner. During 2022 – 2023, focus on allocation of capital for works and projects that are important, urgent and have widespread effects that can rapidly influence the development of industries, sectors, regions and local areas in order to support for the socio-economic recovery and development.

Innovate the measures for the management of regular expenditures, promote the mechanism for package, bidding, ordering; decentralize and give autonomy, encourage the use of resources in accordance with the characteristics of the central authorities, local authorities and the units using the state budget.

Mobilize resources of expenditures on investment in the development of human resources in order to improve the quality of human resources, increase labor productivity and meet the requirements of the Industrial Revolution 4.0 and international integration. Reform the policy on salary, ensure resources in order to continue to successfully implement the policies on social security, facilitate equal access to resources, opportunities for development and full enjoyment of basic social services for all people, especially the groups of vulnerable people including children, the poor, ethnic minority group... in conformity with the development conditions of the economy and the balancing capacity of the state budget.

Fundamentally innovate the mechanism of management and use of the state budget for investment in the development of science and technology towards thrift and efficiency; implement the mechanism of the State for ordering, bidding for the performance of scientific and technological tasks and the mechanisms under all-inclusive contracts.

Complete financial mechanisms and policies in order to promote the scientific and technological development and creative innovation, application and transfer of technology. Research and develop the specific and outstanding mechanisms and policies on finance in order to develop some scientific and technological sectors that have strengths and play an important role in achieving the international level. Promote the investment of state budget in establishment of some organizations for the research and development at modern and advanced level, especially top science and technology organizations with potential for promoting the process of regional and international integration.

b) Promote the management and administration of the budget and finance according to the medium-term financial strategy

Manage state budget expenditures within the scope of resources, ensure the synchronization and consistency of the medium-term public investment strategy with the medium-term public debt strategy and the medium-term financial strategy; implement the 3-year finance - state budget strategy in accordance with the Law on State Budget and international practices.

Develop and make a commitment to spend money on ensuring allocation of concentrated resources that is not widespread and effectively serves making and decision on cost estimates, final settlement and audit of the state budget of agencies according to their functions and assigned tasks.

c) Innovate the mechanism for decentralization of state budget

Innovate the mechanism for decentralization of state budget according to application of principles and good international practices on the decentralization and management of revenue, the tasks of expenditures and the relationship amongst budget levels. Basically, overcome the situations of the integration in the management of the state budget, strengthen the leading role of the central budget. Promote decentralization, encourage local authorities in creation, increase of revenue, mobilization of resources for the socio-economic development in the local areas, creation of initiative and self-responsibility for local authorities in making of decision and use of the budget. Increase powers and responsibilities for management of budget at all levels and budget-using units; at the same time, enhance the transparency and accountability, strengthen inspection and supervision.

Review, develop and complete specific mechanisms and policies on finance and budget that are applicable to key economic regions and some large provinces and cities; promote the connection of regions, strengthen international integration and narrow the development gap of regions.

d) Continue to reform control of state budget expenditures and management of state treasury.

Innovate the mechanism for management and control of the commitment to the state budget expenditures according to international practices. Unify the process and digitize the control and payment for the state budget expenditures through the State Treasury. Innovate the measures for control of the state budget expenditures towards the management of risks and improvement of post-audit in association with the decentralization; assign accountability to the units that use budget corresponding to the level of the development of internal audit function in the ministries, central and local authorities.

Complete the mechanism for management of state treasury towards approaching practices of management of state treasury in developed countries in conformity with the actual situations in Vietnam, ensure centralized, safe, transparent and effective management. Continue to complete the model of centralized payment of the State Treasury. Diversify instruments of investment and borrowing from state treasury. Closely connect between the management of state treasury with the management of state budget and debt in order to reduce costs and the risks of debt; enhance the effectiveness, safety and sustainability of the system of management of public financial and improve fiscal space. Establish a framework for management of the risks of state treasury in a modern and comprehensive manner.

dd) Strictly manage public property

Continue to complete the legal framework for the management and use of public property; especially the law on finance of land, natural resources, valuation and identification of the value of state-owned enterprises in case of equitization; develop legal documents on the management and use of specialized public property, ensure the synchronization and consistency with the Law on management and use of public property. Develop a system of criteria for assessment and organize the assessment of management of public property in the administrative and business sector. Expand and upgrade the national database on public property; build and operate an system of electronic transaction of public property.

e) Improve national reserve potential

Complete the legal framework for the management and administration of national reserve; improve national reserve that is strong with a reasonable structure, proactively meets the unexpected and urgent needs of the economy; promote private sector involvement and attraction of non-state budget resources for national reserves.

Focus on storage of strategic, essential, high-value, high-frequency products and products that cannot be produced domestically to proactively and promptly respond to emergency situations, ensure national defense and security and perform assigned tasks. At the same time, review, adjust and promote strategic, essential and necessary products or remove unsuitable items from the list of national reserve goods.

3. Closely and effectively manage the state budget deficit and public debt and improve fiscal space in order to contribute to improvement of the resilience of the national financial system

a) Complete institutions and policies on management of public debt

Continue to complete the institutions and policies on management of public debt, promote the operations and use of instruments of active management of debts and ensure the safety and sustainability of national finance.

Closely connect the management of the state budget and public debt with the management of the state treasury in order to improve the efficiency of management of the financial resources of the State. Strictly manage the deficit, implement the principle of borrowings to make up for the state budget deficit used for development investment; only borrow money in case the repayment is possible.

Research and apply the measures for actively approaching debt services according to good international practices; establish flexible warning criteria and fixed upper limits in order to control public and private debt; separate the management of external debt in the public sectors and external debt in private sectors; set the upper limits of external debt in the total of public balance. Strengthen the application of good international practices to the management of risks of the list of Government debt; balance the list debt between internal debt and external debt

Build a database, apply the statistical principles according to good international practices; promote the application of information technology to management of public debt. Actively research, forecast and take measures for policy response in order to handle in case the debt indicators reach the safe warning threshold.

b) Mobilize capital for state budget and development investment with reasonable cost - risk; improve structure of the list of debt

Innovate and improve the quality of mobilization of loan capital; diversify sources of capital and methods of domestic and foreign borrowing with appropriate terms satisfying the demands for capital mobilization of the Government in the medium and long term in case Vietnam has become a country with middle-income.

Diversify products and goods on the market to meet the demands of investors; develop green bond products in order to mobilize capital for the projects on environmental protection serving the sustainable development of economy.

Actively issue and manage the list of bond of the Government, ensure the volume, structure and terms according to the objectives of the strategy, program, strategy for management of public debt and strategy for loan and repayment of the Government.

Closely connect fiscal policies and monetary policies in order to stabilize interest rates for the purpose of support for capital mobilization from the state budget and the development of the bond market of the Government.

Innovate the mechanism for mobilization of loan capital for Official Development Assistance (ODA) and foreign preferential loans in order to invest some important works and projects that have widespread effects for the purpose of the socio-economic development in local areas and the whole of country. Prioritize mobilization of the sources of capital with long-term loan, low interest rate and high grant-in-aid.

c) Improve the efficiency of management and use of loan capital in association with the responsibility for repayment

Only use the loan capital for development investment, especially national target programs, national important projects, key projects that are meaningful, take widespread effects and improve economic competitiveness, inter-regional projects and inter-local projects

Ensure the allocation of sufficient sources of capital for full and early repayment, gradually raise the national credit rating. Restructure the debts towards sustainability, improve the safety indicators of debt. Strictly manage and control the obligations of provision for debt of the Government.

Connect mobilization, management and use of capital for ODA and preferential loans of the foreign donors with the restructure of public investment. Consider the efficiency of economy, financial options, assessment of impact on the medium-term investment strategy, targets of public debt, budget and the capacity for repayment applied to any new loan. Focus on use of foreign loan capital for some key areas in order to ensure effective promotion of the scale of economy; projects that promote growth in association with sustainable development, projects that may produce the foreign currency revenue, projects that have widespread effects (including adaptation of climate change, improvement of the quality of environment, education, health, technology...); essential projects on socio-economic infrastructure that are not able to directly recall capital. Prioritize on-lending for projects that are able to directly recall capital.

4. Innovate the financial mechanism applicable to the public administrative service sector

a) Complete mechanisms and policies applicable to the public service providers

Continue to synchronously complete mechanisms and policies on innovation in financial mechanisms for public non-business providers. Accelerate completion of mechanisms and policies in order to promote transfer of some types of fees to the prices of public administrative service; at the same time, implement the state budget policies in order to directly support beneficiaries of preferential policies (including: the poor, revolutionary heroes, ethnic minority group...).

b) Promote implementation of mechanisms and assign financial autonomy to public service providers

- Promote the implementation of the objectives of Resolution 19-NQ/TW that were set out. Continue to promote the innovation of mechanism for financial autonomy, assign financial autonomy to public service providers; increase the quantity of self-financing units that ensure regular expenditures and investment expenditures; clearly define the sources of revenue, tasks of expenditure, distribution of additional income, powers and responsibilities of the heads of the providers.

- Strongly change mechanism for funding provision according to cost estimates into payment according to order and assignment of tasks in association with the quantity and quality of products and services, the cost of providing service and the demand for use; make a specific roadmap for implementation of the mechanism for bidding for provision of services; gradually reduce the quantity of products and services according to the method of assignment of tasks.

- Central and local authorities shall review and early promulgate of strategy for network of public service providers or submit the strategy to competent authorities for promulgation in order to strictly arrange, dissolve, merge and downsize the workforce; at the same time, urgently issue the list of public administrative services funded by the state budget and economic and technical norms as a basis for identification of the prices of public administrative services.

- Promote the implementation of the roadmap of prices of public administrative services according to regulations of Decree No. 60/2021/ND-CP. In particular, the public service providers shall be able to calculate amortization expenses that can be classified at a higher level of financial autonomy.

- Strengthen the openness and transparency; strictly implement regulations on supervision, inspection and examination of activities of public and non-public service providers, especially the policies on financial regimes; promptly solve problems arising in the process of strict implementation and handling of violations.

c) Promote private investment in provision of public administrative services

Complete mechanisms and policies in order to facilitate promotion of private investment in the provision of public administrative services, ensure equality between public service providers and non-public service providers; continue to carry out the policies on incentives and benefits in land, taxes, fees, credits... in order to support enterprises and individuals in participation in the effective provision of public administrative services.

Review, evaluate and continue to complete the mechanism for equitization applied to the qualified public service providers in association with successful handling of social problems. Promote the implementation of private investment in some sectors including health, education, culture, sports...; change the method of direct investment from the state into the method of investment from enterprises according to the planning.

5. Promote restructuring and improvement the efficiency of operations of state-owned enterprises; innovate management of state capital that is invested in enterprises

a) Continue to complete mechanisms and policies in order to promote the restructuring of state-owned enterprises; complete the mechanism for use of revenue from the conversion of ownership of enterprises, non-public service providers and transfer of state capital; innovate mechanism for financial supervision and assessment of the efficiency of operations of economic groups, state-owned corporations and enterprises.

b) Improve the efficiency of operations and competitiveness of state-owned enterprises according to the platform of modern technology; improve the capacity for creative innovation and management according to international standards. Provide the mechanism for encouragement to research, develop and apply advanced science and technology to production, trade, management and supervision of enterprises. Implement digital transformation, promote openness and transparency of financial information and strengthen the accountability of enterprises. Promote the development of some state-owned economic corporations with large scale, effective operations, regional and international competitiveness in some key sectors of the economy.

c) Accelerate settlement of debts, divestment and equitization of state-owned enterprises in an efficient, public and transparent manner; provide the mechanism for prompt monitoring, detection and handling of violations throughout the process of implementation. By 2025, complete the arrangement and restructuring of state-owned enterprises in the main form of equitization and divestment. Invest revenues from equitization and divestment of state capital in the key and national projects on infrastructure, increase of charter capital of key state-owned enterprises.

d) Strengthen the inspection and examination of the process of use of capital at the enterprises Completely handle the projects that are loss-making and inefficient in order to ensure the principles of the openness and transparency according to the market mechanism and regulations of law. Strictly handle projects and works with slow progress, inefficient investment and prolonged losses of economic corporations, state-owned corporations and state-owned enterprises in order to ensure the principle of openness and transparency and minimize the disadvantage to the State and society. Create the mechanisms for active and autonomous handling of projects of enterprises. The handling in forms of dissolution or bankruptcy shall ensure the highest interests of the State and the legal interests of employees and investors.

dd) Consolidate and complete the model of the owner’s representative agency in accordance with the role of management of state capital that is invested in enterprises in order to meet the requirements for innovation and restructuring of state-owned enterprises. Strengthen decentralization and authorization for the Members’ Council, the Board of Directors of economic groups and state-owned corporations. At the same time, strengthen the supervision and inspection tasks of the owner’s representative agency in order to promptly prevent, detect and handle violations according to regulations of law.

6. Synchronously, transparently and sustainably develop the financial market and financial services

Complete the legal system, mechanisms and policies in order to synchronously, transparently and sustainably develop the financial market, especially the securities market, insurance market and financial services market.

a) Securities market

- Complete the legal framework for the development of the securities market in accordance with the level of development of the economy and the access to international practices and standards; expand and connect with regional and international markets. Complete the guiding regulations on the investment of foreign investors in listed enterprises and public companies on the securities market.

Strengthen the capacity for management and supervision of the State Security Commission, competitiveness of intermediary organizations participating in the securities market in order to ensure the safe and transparent operation of the market and improve the competitiveness and protection of interests of the investors.

- Increase the supply of goods and improve the quality of supply to the market.

In case of the stock market, encourage all types of enterprises to conduct an IPO in association with the listing and registration of transaction on the stock market; apply corporate governance in accordance with international practices to improve the quality of listed companies; at the same time, strengthen prompt inspection and handling of enterprises that do not comply with regulations on the listing and registration of transactions after equitization. Research on establishment of securities exchange for innovative startups.

In case of the bond market, continue to develop the bond market in order to create an important medium and long-term capital mobilization channel for the economy; improve the openness and transparency in market operations. Develop a green bond market to mobilize capital for the projects on environmental protection serving the sustainable development of the economy.

Develop the government bond market in both breadth and depth to meet the demand for mobilization of capital for development investment. At the same time, restructure the list of government bond debt in order to restructure the state budget and public debt. Focus on the development of the secondary market in order to increase the liquidity and diversity of products, and develop investor base; strengthen the connection between the government bond market and the money market to improve the liquidity of the market.

Focus on the development of the corporate bond market in form of both public offering and private offering in association with disclosure of information; organize activities and provide services for transaction of corporate bond through the Stock Exchange in order to meet the demands of organizations and individuals participating in the market. Promote credit rating services in order to encourage international credit rating organizations to participate in the provision of services in the Vietnamese market.

Develop a variety of products of derivatives including futures contracts, options contracts on the underlying assets that are stock indices, single stocks and government bonds. Develop new market indexes as the underlying assets for derivatives.

- Develop and diversify investor base.

Expand investor base, strengthen the capacity for access to market and deploy the various types of investment funds and long-term institutional investors in the market. Ensure the reasonable structure between individual investors and institutional investors, between domestic investors and foreign investors and promote the development of professional investors.

- Complete market organization, modernize infrastructure and information technology.

Complete the model of organization and operation of the Vietnam Stock Exchange and the Hanoi Stock Exchange, the Ho Chi Minh City Stock Exchange, the Vietnam Securities Depository and Clearing Corporation and ensure the efficiency in accordance with the actual situation and international practices. Modernize information technology infrastructure serving the system of supervision, transaction, registration, depository, clearing and settlement of securities in order to ensure a smooth, safe and stable market.

b) Insurance market

Complete the legal system of insurance business; develop products and diversify insurance products in order to meet the demands of organizations, individuals and international integration, especially insurance products that apply information technology, green insurance, health insurance,...; Strengthen financial capacity, risk management, corporate governance and transparent openness of insurance enterprises.

Encourage the application of information technology to the insurance business. Diversify and professionalize channels for distribution of insurance to facilitate organizations and individuals, especially subjects with low income in order to participate in insurance. Develop, improve the quality of human resources in the insurance sector and promote dissemination of information about insurance.

Strengthen the effectiveness of state management and the efficiency of inspection, examination, supervision and administrative penalties in the insurance sector; reform the method of management and supervision of the insurance management agency; gradually change this method into the management and supervision according to the risks in association with construction and completion of the system of information technology. Strengthen the role of socio-professional organizations in the insurance business and promote international integration and cooperation in the insurance sector.

c) Financial service market

- Continue to complete the legal framework for accounting, auditing, valuation and other financial services towards access to international practices in conformity with the actual conditions of Vietnam. Apply international financial reporting standards (IFRS) to improvement of the transparency and the efficiency of provision of information for investors. Develop a Vietnamese valuation standard system in c with practical conditions and international practices. Synchronously develop the credit rating market, the market of accounting and auditing services, valuation counseling, tax counseling and customs agent.

- Improve the quality of accounting, auditing, valuation and other financial services in order to meet the needs of society. Orient the scale and quantity of organizations that provide accounting, auditing, valuation and other financial services in accordance with actual requirements throughout completion of the mechanism and conditions of practice. Increase the quantity and quality of accountants, auditors, appraisers and other individuals who work at financial services.

Improve the efficiency of state management for financial services, create a stable and unified legal environment in order to ensure the legal rights and interests of market participants Improve the efficiency and effectiveness of supervision and handling of violations of organizations and individuals that provide financial services in order to improve the quality of services.

d) Lottery market and prize-winning games

Complete the legal framework for the lottery and prize-winning games; gradually restructure the market towards modernity, openness and transparency in conformity with international practices; use the revenue from lottery and prize-winning games in order to invest in development, health, education, social security and key inter-regional and national programs and projects on the socio-economic development.

7. Consistently manage and administrate prices under the market mechanism according to regulations of the State.

a) Continue to review and complete the laws on prices; ensure the synchronization and consistency between the Law on Prices, other civil and economic laws. Innovate and complete the method of pricing management and administration in order to ensure conformity with socialist-oriented market economy and encourage competitive pricing. Strengthen the role of management of the prices in the effective management, allocation and use of the state budget and financial resources.

b) Accelerate the implementation of the roadmap of market price for important and essential services and public administrative services. Accurately and fully calculate the actual and valid costs in the prices with the specific and detailed roadmap in conformity with orientations to the socio-economic development in each period in order to ensure the transparency, openness and harmonization of the rights and interests of enterprises, people and the State and contribute to improvement the efficiency of production and trade, creation of the transparent and healthy competitive market; at the same time, encourage and promote the implementation of the policies on innovation in the financial mechanism for the units that produce and provide essential public administrative services.

c) Promote synthesis, analysis and forecast; strengthen the exchange of information between central authorities and local authorities; formulate and provide the mechanism for exchange of data and information; develop the method of pricing management and administration in conformity with each period. Complete the national database system of the prices in order to ensure the data connection with central and local authorities, establish an official and reliable information channel serving pricing management and administration.

8. Strengthen the efficiency of financial cooperation and proactively integrate into the international financial sector

a) Strengthen the efficiency of financial cooperation

Review and complete frameworks and agreements on financial cooperation with important partners including financial institution, international financial forums and financial regulatory authorities in the countries that are comprehensive strategic partners, strategic partners and traditional partners of Vietnam.

Successfully and effectively develop and improve financial cooperation and external activities in the financial sector; create regional financial instruments and mechanisms in order to support management of macroeconomic, public finance and financial market; strengthen the policy dialogue in order to enhance the credibility of financial cooperation partnerships and promote the attraction for external resource, mobilize the receipt and effectively manage programs/activities of assistance with technology of partners for the Ministry of Finance.

b) Proactively integrate into the international financial sector

Synchronous complete institutions and make commitments to integration into tax, customs, insurance services, securities, accounting - audit... Research and propose the commitment to export tax and import tax in bilateral and multilateral frameworks in a more active manner in order to reduce trade concentration, especially imports from some specific partners.

Improve the efficiency of commitments to financial integration through improvement of the quality of analysis and forecast of impacts on the economy and the financial sector; research and propose mechanisms and policies in order to ensure the financial safety in case of making of full commitments to international integration; strengthen and improve the efficiency of dissemination of information on the benefits and challenges from the implementation of financial commitments to relevant organizations and individuals, especially the national and foreign business community.

9. Increase the capacity and efficiency of financial management and supervision; promote inspection and examination; focus on thrift practice and waste combat

a) Complete institutions, apparatus, instruments for analyzing, monitoring the major financial balances, safety indicators of debt and warning about the level of risk of the list of public debt, government debt and local government debt. Develop a centralized financial statistics system that is integrated with the national economic statistics system and the monetary statistics system of the State in accordance with international principles and standards in order to fully and promptly meet requirements for management and administration of the national finance.

Improve supervision, inspection and examination of the use of the state budget and public debt according to the principle of risk and application of information technology; promptly, strictly and openly handle violations of organizations and individuals that waste state budget.

Improve inspection, examination and audit of the procurement, construction, management and use of public assets in order to ensure thrift, proper purposes, standards and norms. Strictly handle violations according to regulations of the law and transparently provide the results of inspection, examination and audit for organizations and individuals that commit violations and waste public assets.

Establish, provide the modern framework for management of risks in management of state treasury and complete the system of information technology in order to strengthen security, risk provisions and ensure the safety of system. Complete the mechanism for synthesis and making of reports on budget and finance, especially reports on state finance towards improvement of the sufficiency, timeliness and accuracy of reported information in accordance with international practices.

b) Complete institutions, apparatus, infrastructure and instruments for monitoring the activities of the financial market and financial services in order to ensure the safe, transparent and sustainable market in accordance with international practices. Control lottery and prize-winning games.

c) Complete the mechanism and system of criteria for supervision of corporate finance according to the principle of the overall target and the market; and the roadmap of credit rating and assessment.

Improve the effectiveness and efficiency of the apparatus and officials for financial management and supervision of enterprises. Carry out openness in association with the accountability of the enterprise and the owner’s representative agency for the financial information of the enterprise in accordance with regulations of the law.

d) Improve the capacity and quality of financial inspection and examination in all sectors; strengthen the effectiveness and efficiency of the internal system of supervision, framework for control of risks and internal audit. Strengthen and well organize the mechanism for cooperation between inspection agencies and functional agencies in order to ensure the efficiency, discipline and regulations on finance.

dd) Control pricing factors, pricing options of exclusive goods and services, goods on the list of goods subject to valuation of the State; goods and services subject to pricing stabilization; public goods and services.

e) Strengthen the inspection and examination of prices in conformity with tax administration in order to prevent unreasonable price increases; at the same time, promptly handle pricing transfer, fraud, tax evasion and avoidance. Inspect and control the operation of the goods and service market in accordance with the law, commercial frauds, speculation and market manipulation.

g) Effectively implement objectives, tasks and measures for thrift practice and waste combat. Strictly comply with legal regulations on handling of violations in case of wastefulness. Strictly handle the results of inspection and examination in order to maximize the recovery of money and properties for the State that have been violated, appropriated, misused, and wasted through inspection and examination.

10. Promote application of information technology and establish digital financial platform; reform administrative procedures and improve the efficiency of state management

a) Promote the application of information technology and establish digital financial platform in accordance with requirements for national digital transformation

Review and amend regulations in the financial sector in order to build, develop and manage information systems serving the digital government and requirements for national digital transformation

Strengthen the application of information technology and upgrade the system for controlling risks in order to improve the efficiency of management and administration in the financial sector. Review and update the Master Architecture towards the Ministry of Digital Finance, the Architecture of National Database on Finance.

- Actively apply the achievement of the Industrial Revolution 4.0 to research and application of a number of core technologies that are capable of creating strong breakthroughs including artificial intelligence (AI), blockchain, big data (Bigdata) and virtual/augmented reality (VR/AR) in order to facilitate the application of advanced digital technology to the implementation of e-finance towards digital finance. Build smart governance platforms in order to provide smart financial services and actively participate in the development of the digital economy. Build electronic finance and establish the modern, open and transparent digital financial platform according to the big data, open data, digital financial ecosystem in order to ensure the efficiency and safety of information in a comprehensive manner.

- Build an integrated, open, transparent and effective tax management information system serving people and enterprises and ensuring the synchronization according to the direction of e-Government and digital transformation. Build integrated platforms, big data platforms in order to provide information for the direction and administration and connect information between tax authorities and the state management agencies. Apply the technology of the Industrial Revolution 4.0 to automation of some the specialized process of tax management and big data analysis serving making of strategy, forecast about revenue, dissemination of information and support for taxpayers, management of risks and compliance, inspection, examination and investigation in to taxes... Develop IT infrastructure, advanced, modern and synchronous equipment in order to ensure continuous, efficient operation, information safety and data security.

- Build the formal and modern customs on the same levels as the customs of developed countries in the world; lead in the implementation of the digital government with the model of digital customs and smart customs in order to facilitate legal trade, ensure social security and safety and protect national interests. Centralize, modernize and automate inspection, supervision and control of customs Develop smart border model, green customs. Build a smart centralized and integrated customs IT system that meets the requirements for the safety of information system with a digital platform in accordance with the architecture of e-Government, digital Government. Develop IT systems in order to implement the National Single Window, ASEAN Single Window and be ready to centrally handle administrative procedures of central authorities for imports and exports.

- Upgrade and develop the Treasury And Budget Management Information System (TABMIS) and other systems regarding creation of the Digital State Budget and Accounting Information System (VDBAS) in order to contribute to the establishment of a digital treasury by 2030.

-Promote and modernize application of information technology to the internal management and management of national reserve goods; computerize the process of export, import and storage of national reserve goods.

- Develop the overall system of information technology serving the management, supervision, transactions and operations of the securities market towards modernity and efficiency in order to ensure smooth, safe and stable operations of the securities market. Develop new functions and transaction utilities of the system, apply new features; apply the new IT system to synchronous operation at the securities exchanges and relevant organizations.

- Promote connection between infrastructure, information system of State Treasury, customs and tax with banks, intermediary payment service providers, interbank electronic payment system, switching system for financial clearing for the purpose of the budget collection and expenditure by cashless payment.

b) Reform administrative procedures and improve the effectiveness and efficiency of State management

Continue to reform and simplify administrative procedures in the financial sector in order to improve the business investment environment and ensure fair, equal and transparent competition. Innovate single-window system and interlinked single-window system Review and standardize the data on administrative procedures, integrate and provide online public services on the Public Service Portal of the Ministry of Finance and the National Public Service Portal. Research and propose measures for reform in administrative procedures in order to improve financial indicators in the assessment and ranking of Vietnam's business environment.

Continue to effectively control administrative procedures, reduce time and improve the quality of handling of administrative procedures regarding people and enterprises. Ensure transparency of administrative procedures; promptly update administrative procedures that are new, adjusted or abolished to the national database.

Strictly control the issuance of administrative procedures; simplify and standardize administrative procedures, eliminate inappropriate administrative procedures in order to contribute to improvement of the effectiveness and efficiency and ensure the objectives of State management in the financial sector, promote the socio-economic development.

11. Improve the quality of human resources and apparatus of the financial sector in a modern, simplified, effective and efficient manner

a) Improve the apparatus of financial sector in a modern, simplified, effective and efficient manner.

Continue to improve and simplify the apparatus of financial sector in order to ensure effective, efficient and smooth operations and meet the requirements for modernization and reform in financial sector and integration into the international economy; review and improve the functions, tasks, powers and organizational structure of the Ministry of Finance. Effectively implement the principle of multi-sectorial management, unify the state agency that manages finance - state budget for multi-sectors. Accelerate the development of the Scheme and make a transfer according to the roadmap of some tasks of public administrative services. In case of any task that is not necessary for the State to preform, the State shall assign enterprises and social organizations to perform the tasks.

b) Improve the quality of human resources

Strictly manage workforce and downsize the workforce in association with working positions, restructure the officials and public employees; synchronously implement measures for attracting and recruiting talents, selecting leaders, training, rotating and changing working positions in order to improve the quality of the officials and public employees of the financial sector.

Develop group of qualified and prestige leaders; develop human resources in the financial sector with a reasonable structure in order to ensure the quantity and quality and meet the needs for performing tasks. Continue to promote the reform of regime for the public services and officials. Improve the capacity, professional qualifications, ethical qualities and strengthen the responsibility, administrative discipline and public service ethics of officials and public employees.

IV. IMPLEMENTATION

The financial strategy by 2030 shall be implemented throughout 02 phases (corresponding to the 2021 - 2025 five-year financial strategy and 2026 – 2030 five-year financial strategy) and specialized through 08 sector strategies as follow:

1. Tax system reform strategy by 2030;

2. Customs development strategy by 2030;

3. State Treasury development strategy by 2030;

4. Public debt strategy by 2030;

5. Vietnam’s insurance market development strategy by 2030;

6. Strategy for development of Vietnam's securities market by 2030;

7. Strategy for national reserve development by 2030;

8. Accounting - audit strategy by 2030;

Article 2. Responsibility for implementation

1. Ministry of Finance shall:

a) Take charge and organize implementation of the financial strategy by 2030; approve and direct the implementation of contents of the Strategy in each period.

b) Direct and urge central and local authorities according to their functions and assigned tasks in order to develop and organize the implementation of programs and contents regarding the financial strategy by 2030.

c) Take charge and cooperate with relevant central and local authorities in inspecting the implementation of the financial strategy by 2030 and periodically evaluating the implementation of the strategy every 5 years.

d) Take charge and cooperate with relevant agencies in proposing and submitting the decision on adjustment to objectives and contents of the strategy to the Prime Minister if necessary.

dd) Take charge and cooperate with the Ministry of Planning and Investment, relevant central and local authorities in balancing and allocating the annual state budget according to regulations of the Law on State Budget and relevant legal documents in order to implement the strategy.

2. Ministries, Ministerial-Level agencies, Governmental agencies and the People's Committees of provinces shall cooperate with the Ministry of Finance and relevant agencies according to their functions and tasks of state management under regulations of the Law; direct and participate in the implementation of relevant contents of this Strategy.

Article 3. This Decision takes effect from the date on which it is signed.

Article 4. The Ministers, Heads of the Ministerial-Level agencies, Heads of the Governmental agencies, the Presidents of the People's Committees of provinces shall be responsible for the implementation of this Decision.