As part of the opening ceremony, Mr. Truong Hung Long, General Director of the Debt Management and External Finance Department provided an overview on the current state of public debt, highlighting large debt outstanding, the diversified and complex nature of public debt-financed projects that utilize various sources of capital (allocation, on-lending or Government guarantee). Considering the fact, the role of financial agencies for inspecting and monitoring public debt management is extremely important, and there is a pressing need for close collaboration in different stages, from borrowing and using the capital to repayment and ensuring on-target utilization of state budget capital.
Mr. Tran Van Vuong
Mr. Truong Hung Long also presented an update on the draft of the Debt Management Law to be submitted for National Assembly’s approval at the October meeting sessions, focusing on the revised articles which would facilitate debt management practice in present time, including articles centered at enhancing inspection and monitoring practice. In particular, the draft of the revised Law added regulations on monitoring public debt management by functions of agencies ranging from the National Assembly to capital using entities; added the role of National Audit and regulations on public debt auditing practice; emphasized the responsibility of public debt capital-using entities and the need for matching accountability with organizational functions.
In order to enhance collaboration between related agencies within the financial system, on 11/4/2017, the Minister of Finance issued Decision No. 644/QD-BTC on regulations regarding collaboration amongst official units of the Ministry in terms of inspecting and monitoring public debt management practice. The decision clearly regulates involved entities, detailed content, organizational principles, forms of inspection and monitoring practice; as well as planning, information sharing, reporting and allocation of roles between concerned agencies.
The Conference facilitated discussion on the impact of the Decision after 6 months in effect, with recognition of achieved results such as successfully organizing Workshops on the management of spending and recording transactions, establishing collaboration mechanism on managing external capital, and forming teams to inspect projects that utilize external finance. Difficulties and weaknesses were also raised, and participants also propose specific measures to improve collaboration in the future.
Apart from the dialogues on collaboration, representatives also exchanged discussions regarding professional practice of inspecting projects that use public debt capital, aiming at further enhancement of competence for related departments within the Ministry of Finance in the future when it comes to monitoring public debt management activities.
Closing the Conference, Mr. Tran Van Vuong, Head of the Department of Financial Inspectorate summarized suggestions and recommendations made by participating representatives, expecting to establish standard inspection and monitoring procedures for the Department of Debt Management and External Finance in near future, leading to a broader application at the Ministry level. Information sharing regarding monitoring public debt management will also be further promoted, which implies more frequent joint discussion and professional development between Ministry units.