Journalist: - Deputy Minister, could you explain the significance of using one law to amend seven laws all at once?
Deputy Minister Nguyễn Đức Chi: - This Draft Law, which amends parts of the Securities Law, the Accounting Law, the Independent Audit Law, the State Budget Law, the Law on Management and Use of Public Assets, the Tax Administration Law, and the Law on National Reserves, is a strategic move. It reflects our dedication to addressing urgent bottlenecks that have hindered economic progress. With the approval of both the Government and the National Assembly Standing Committee, the Ministry of Finance has taken on the responsibility of drafting this law using a streamlined process, reducing the typical timeframe needed for legislative drafting. This approach will enable the law to take immediate effect once passed, which is crucial given the limited time remaining to achieve the socio-economic development goals set forth in the 13th National Party Congress Resolution.
By adopting this one-law approach to amend multiple laws, we aim to unburden resources and open up more avenues for economic growth. This legislation not only simplifies but also accelerates essential adjustments that will help our economy thrive in the near future.
- What are the primary objectives of this Draft Law that make it so urgent?
- This law is designed to tackle pressing issues in our financial management. We aim to streamline administrative processes, lower compliance costs, and foster decentralization, empowering local authorities to make and take responsibility for decisions—a core principle championed by the Party and the General Secretary. Amendments to the State Budget Law, the Law on Management and Use of Public Assets, and the Law on Accounting reflect this approach, facilitating "localities decide, localities do, and localities take responsibility."
Moreover, we are strengthening tax policies to broaden the revenue base while ensuring tax collection is accurate, fair, and efficient. These measures will make tax compliance easier and fairer for individuals, organizations, and businesses, as outlined in the proposed changes to the Tax Administration Law.
Equally important is our focus on fostering transparency and safeguarding investor rights. By enhancing access to capital, we hope to attract more domestic and international investment, thereby promoting sustainable growth in the capital and securities markets.
- Public interest is particularly focused on the amendments to the State Budget Law, Tax Administration Law, and Securities Law, given their widespread impact. Could you provide further details on these changes?
- Certainly. Let’s start with the amended State Budget Law. Recently, the National Assembly approved a pilot resolution allowing specific localities to invest their own budgets into critical projects of national importance. This initiative was subsequently legalized in the Capital Law, resulting in several successful infrastructure projects such as the Hanoi and Ho Chi Minh City ring roads, the Dien Bien Airport project, and the Bach Dang and Nhu Nguyet bridges. These projects highlight the benefits of mobilizing both local and central resources for key developments.
Our goal is to extend this model to more projects by embedding it in the State Budget Law, allowing inter-regional, inter-provincial, and even international collaborations. This will bring resources from all levels to bear on major infrastructure projects, creating a powerful momentum for national growth.
Moving to the Tax Administration Law, current regulations authorize only provincial-level Tax Department Directors to approve tax refunds. Since both Tax Departments and local Tax Branches are responsible for tax collection, this creates delays in refund processing for businesses. By decentralizing authority, allowing the heads of local Tax Departments to handle refunds for cases within their jurisdiction, we expect faster and more efficient service for businesses, reducing bottlenecks in tax administration.
Finally, on the amended Securities Law, which came into effect in 2019, we’ve identified issues in the bond market, particularly concerning corporate and individual bonds. The corporate bond market plays a critical role in our financial landscape, but recent developments have underscored the need for regulatory adjustments to keep it safe, transparent, and resilient. In alignment with the Prime Minister’s goal of building a secure, sustainable capital market, this Draft Law will implement necessary safeguards.
That said, individual investors will retain their rights to invest in various types of corporate bonds. Our intent is to balance robust market oversight with the protection of individual investor rights, encouraging responsible and informed participation in the bond market.
Yes, of course. Recent pilot projects allowed certain localities to direct their budgets towards critical projects, a significant step toward enhancing local autonomy and boosting regional development. By amending the State Budget Law, we aim to cement this approach, empowering local governments to contribute financially to large-scale infrastructure projects that serve broader regional and national interests. This will create a more flexible funding environment, allowing localities to allocate funds where they’re most needed.
In practical terms, this could mean that projects like inter-city highways, cross-provincial bridges, and other major infrastructure works can now benefit from additional local financial support. The move not only optimizes budget allocation but also strengthens cooperation between central and local governments.
Decentralizing the authority for tax refunds is a change that businesses will feel almost immediately. Under the current system, only provincial-level tax departments can approve refunds, often creating delays as tax cases accumulate at the provincial level. By empowering local tax branches, refunds will be processed more swiftly and efficiently. This directly translates into time and cost savings for businesses.
For enterprises, especially those that rely heavily on cash flow, receiving tax refunds more quickly can make a significant difference. Businesses can reinvest these funds sooner, potentially boosting their operations, which in turn drives growth in the local and national economy.
We are keenly aware of the concerns surrounding investor rights, particularly for individuals investing in corporate bonds. The Securities Law amendments are designed to create a safer and more transparent investment environment while protecting individual investors. We understand the importance of respecting investors' rights and fostering their confidence in the market.
Our proposed amendments will not restrict individuals from participating in the bond market. Instead, we’re establishing clearer guidelines and enhancing market oversight to mitigate risks while keeping the market accessible. Investors will continue to have a wide range of options, including individual corporate bonds, enabling them to make informed investment choices in a well-regulated environment.
- Thank you very much for your insights, Deputy Minister.
