Overview of the forum (Photo: VNA)Hanoi (VNA) - Vietnam is confronting challenges in the process ofrestructuring the public financial sector, Deputy Minister of Finance Do Hoang AnhTuan said during a forum in Hanoi.
Deputy Minister Tuan gave his assessment ofthe process at Vietnam Finance Forum 2018 held in Hanoi on September 20.
As much as 82 percent of State revenuecurrently comes from domestic collection, but this is not yet sustainablebecause a substantial portion of local revenue comes from the sale of publicassets and land use rights, Tuan said.
Transfer pricing, tax evasion and tradefraud are still problems for the country’s financial sector, he said.
State budget management remains cumbersome,he said, adding that the Government must improve its methods for managingnational public assets.
The Government’s outstanding debt stands at61.3 percent of the country’s GDP and foreign debt is 50 percent. Althoughpublic debt has been controlled, challenges remain. The Deputy Minister citedexchange rate risks and Government guarantees for private sector loans as majorissues.
The business community is reliant oncredit, he said.
Tuan added outstanding bank loans amount to 1.4 percent of GDP, muchhigher than the recognised acceptable level of 0.6-0.8 percent. This isobviously a challenge for the financial sector.
He stressed the need to find an abundantand sustainable source of capital for the corporate sector, adding that therestructuring efforts can not be delayed. The Ministry of Finance has tried toconsolidate the country’s budget and expenditures.
According to USAID Mission Director for VietnamMichael Greene, impressive growth has transformed the country’s economy intothat of a middle-income country.
USAID will continue to actively support Vietnamin financial institution reform for rapid and sustainable economic growth, withthe overall goal of promoting national self-reliance, Greene said.
Bruno Angelet, head of the European Uniondelegation to Vietnam, said the EU considers the country’s public financereform an important issue.
He said the EU hopes to help Vietnamaddress climate change, pollution, taxation and financial management as ittransitions to a green economy.
Themed restructuring national finance towards rapid, inclusive and sustainabledevelopment, the forum drew about 300 delegates from the Party CentralCommittee’s Economic Commission, the Ministry of Finance, the State Bank of Vietnamand the Ministry of Planning and Investment.
The United States Agency for InternationalDevelopment (USAID), the European Union and the World Bank also sent delegatesto the event.-VNA
Deputy Minister Tuan gave his assessment ofthe process at Vietnam Finance Forum 2018 held in Hanoi on September 20.
As much as 82 percent of State revenuecurrently comes from domestic collection, but this is not yet sustainablebecause a substantial portion of local revenue comes from the sale of publicassets and land use rights, Tuan said.
Transfer pricing, tax evasion and tradefraud are still problems for the country’s financial sector, he said.
State budget management remains cumbersome,he said, adding that the Government must improve its methods for managingnational public assets.
The Government’s outstanding debt stands at61.3 percent of the country’s GDP and foreign debt is 50 percent. Althoughpublic debt has been controlled, challenges remain. The Deputy Minister citedexchange rate risks and Government guarantees for private sector loans as majorissues.
The business community is reliant oncredit, he said.
Tuan added outstanding bank loans amount to 1.4 percent of GDP, muchhigher than the recognised acceptable level of 0.6-0.8 percent. This isobviously a challenge for the financial sector.
He stressed the need to find an abundantand sustainable source of capital for the corporate sector, adding that therestructuring efforts can not be delayed. The Ministry of Finance has tried toconsolidate the country’s budget and expenditures.
According to USAID Mission Director for VietnamMichael Greene, impressive growth has transformed the country’s economy intothat of a middle-income country.
USAID will continue to actively support Vietnamin financial institution reform for rapid and sustainable economic growth, withthe overall goal of promoting national self-reliance, Greene said.
Bruno Angelet, head of the European Uniondelegation to Vietnam, said the EU considers the country’s public financereform an important issue.
He said the EU hopes to help Vietnamaddress climate change, pollution, taxation and financial management as ittransitions to a green economy.
Themed restructuring national finance towards rapid, inclusive and sustainabledevelopment, the forum drew about 300 delegates from the Party CentralCommittee’s Economic Commission, the Ministry of Finance, the State Bank of Vietnamand the Ministry of Planning and Investment.
The United States Agency for InternationalDevelopment (USAID), the European Union and the World Bank also sent delegatesto the event.-VNA
VNA
