The financial sector needs to renovate more strongly to free up resources to meet the country’s development objectives, Prime Minister Nguyen Xuan Phuc told an online meeting to review financial sector and State budget performance in 2020 and define tasks for 2021.

The government leader said the financial sector had comprehensively fulfilled its missions in the past five-year term, especially last year.

With complicated developments expected in the world situation in 2021, he said Vietnam must continue with reform efforts and take more drastic actions so as to realise its growth target.

The PM suggested the sector continue to innovate its strategic thinking to ensure the smooth flow of the economy’s blood line, creating the foundation and favourable conditions for the country’s socio-economic development.

He asked the financial sector to follow the Government’s motto of action in arranging for the synchronous and effective implementation of relevant Government resolutions, and to continue to work closely with relevant agencies in conducting fiscal and monetary policies to ensure macroeconomic stability and control inflation and major balances in the economy.

Also underlined was the importance of ensuring that the budget is spent economically and effectively, with the PM adding that the State budget deficit should be controlled to 4% of GDP or lower.

The restructuring and equitisation of State-owned enterprises (SOEs) and the disbursement of overseas development assistance (ODA) capital need to be sped up, he said.

According to Finance Minister Dinh Tien Dung, despite the difficulties in 2020, the budget balance was guaranteed.

About 185,000 taxpayers were given extensions on payments, while over 6 million enjoyed tax and fee exemptions and reduction policies, with total value of some VND130 trillion (over US$5.6 billion), he said.

The sector collected over VND1.5 quadrillion for the State budget in 2020, equivalent to 98% of the estimate.

Meanwhile, over VND18 trillion was spent on preventing COVID-19 and supporting people affected by the crisis, Dung noted.