After one year of execution of the Resolution 915-NQ/QUTW, dated August 25^th, 2018 issued by the Central Military Commission in parallel with the Decision 3500/QĐ-BQP, dated August 26^th, 2018 by the Ministry of National Defence on renewing the military financial management mechanism, despite of difficulties and unresolved issues, we have achieved initial significant and practical results as the basis for improving the quality and effectiveness of the financial work and successfully fulfilling the military-defence targets and missions. It should be noted that the work of budget planning and allocation has been fundamentally renewed in terms of subject, sequence, and procedure, thereby creating a favourable condition for military units to take the initiative in allocating and using their budget. The work of budget operation and execution has been carried out closely in accordance with reality. Funds, assets, and lands have been closely and seriously managed within the law. The efficiency and effectiveness of budget investigation, inspection, and audit have been improved while financial disciplines have been stringently maintained. The Military Finance Branch has proactively provided advice on establishing and mobilising resources, balancing and allocating budget for both regular and irregular missions and programmes under the direction by the Central Military Commission (CMC) and the Ministry of National Defence (MND).

However, in addition to the recorded results, there have been weaknesses in the financial work. A number of units have expressed their confusion about budget planning and allocation and the quality of budget estimate has been low. In some units, coordination between financial offices and specialised sectors has yet to be constant or close. Offices of finance within several units have yet to promote their advisory role or meet the requirements set by the new financial management mechanism. 

Maj. Gen. Luu Sy Quy, Director of the Department of Finance addressing the Conference on “renewing the military financial management mechanism seriously, opportunely, effectively”

The year 2020 plays a decisive role in fulfilling the targets set by the Resolutions of the 12^th National Party Congress and the 10^th Military Party Congress. The entire Military will carry out various major, breakthrough missions, with a focus placed on force rearrangement, training, and combat readiness, while stepping up modernisation of several services, corps, and forces. Many new policies will be promulgated and become effective. Hence, the demand for finance will be very great while the budget is limited. Against that backdrop, party committees and commands of units and the Military Finance Branch as the core force must adhere to the military-defence guidelines and tasks and proactively synchronously adopt measures for renewing and improving the military financial work as the basis for the whole Military’s successfully fulfilment of all assigned missions.

To that end, first of all, it is necessary to continue executing the CMC’s Resolution 915 and the MND’s Project on renewing the military financial management mechanism in order to provide a solid foundation for a more comprehensive, fundamental, drastic reform in the military financial management. Sectors and units within the Military should thoroughly grasp the guidelines and viewpoints on the financial work by the CMC and the MND, while enhancing their party committees and commands’ leadership and direction over this work and promoting the combined strength of all forces in the process. Grounded on the outcome and experience gained from the 1-year implementation of the Resolution 915 and the Project on renewing the military financial management mechanism, the all-level offices of finance should proactively advise units’ party committees and commands on reviewing and supplementing the action plans and organising refresher courses for financial cadres of units. The Military Finance Branch and particularly the Department of Finance should counsel the MND to continue perfecting the new financial management mechanism under “the rule of law” in accordance with the Military’s particularities. They should keep developing and completing guiding documents on implementing the Project to renew the financial management mechanism, reviewing and completing the regulations on budget management, operation, and execution, supplementing and perfecting the regulations on public procurement, formulating and completing the system of economic-technical and regular spending norms. In the process, it is important to combine the reform in the financial management mechanism with the execution of the CMC’s Resolution 513-NQ/QUTW, dated September 21^st, 2012 on “the military financial work towards 2020 and beyond” and attach greater importance to overcoming weaknesses in financial management and enhancing the quality and effectiveness of this work.

Second, proactively operating and executing budget estimate in a close, focalised manner. Sectors and units within the Military should strictly adhere to the regulations on party committees’ leadership over the financial work, decentralise the use of budget, and create a favourable condition for their affiliates to successfully fulfil the assigned tasks. At the same time, it is essential to heighten responsibility of commanders (units’ account holders) and heads of finance offices for operating, managing and using budget at each level, and encourage the role of finance offices in counselling, controlling, and using budget.

In 2020, the Department of Finance should give priority to allocating budget for key missions, targets, and projects under the MND’s direction, new policies, party congresses at all levels within the Military, and especially the MND’s tasks when Vietnam undertakes the ASEAN Chairmanship. As budget is allocated to sectors and units for one time only at the beginning of a year, they should flexibly take measures for directing, operating, closely managing, and effectively using their budget. At the same time, they should improve democracy, transparency, and openness to avoid negative practices and wastefulness. To raise the effectiveness of expenditure, offices of finance should stick to the budget estimate, proactively balance and adjust expenditure properly, closely cooperate with other sectors in advising units’ party committees and commands on developing plans for expenditure, construction, procurement and production order, proactively execute budget estimate, and speed up disbursement of funds and payment. In the process, it is necessary to review and adjust budget estimate to make it relevant to the task, reduce unnecessary expenditures, and resolutely deal with rushed spending at the end of a year.

Third, synchronously taking measures for raising the efficiency and effectiveness of managing and using financial resources. Units should strengthen financial discipline via specific mechanisms and regulations. Under the new financial management mechanism, units’ commanders (account holders) must proactively adhere to their units’ work plans when using their unit’s budget. Offices of finance at all levels should thoroughly grasp guiding documents on tasks, use the system of norms established by competent offices to plan and allocate budget, well implement the new regulations on accounting and financial report, further apply information technology to financial management, improve the management of price of goods for the purpose of national defence as well as the transparency and openness of bidding, closely manage materials, assets, lands, and revenues from the use of national defence lands and the liquidation of public assets, and stringently maintain the regulations on public financial statement.

Offices of finance and specialised sectors at all levels should continue advising units’ party committees and commands on drastically taking measures for practising thrift and fighting against corruption and wastefulness. In addition, due attention should be paid to well conducting the work of financial supervision, investigation and inspection at all levels, closely combine professional inspection with party committees and troop collectives’ inspection and supervision, and enhance the work of internal financial inspection and investigation. The Department of Finance should focus inspection and investigation on basic construction and equipment procurement, while continuing to advise the MND on delivering units’ budget estimate to the Vietnam State Treasury for budget allocation and spending control.

Fourth, actively developing and completing the system of mechanisms and policies for the financial work and building a strong, professional Military Finance Branch. To be in line with practical developments and meet the task requirements, the Department of Finance should continue to advise the CMC and the MND on supplementing, perfecting, and making the regulations on the financial work relevant to the State’s new financial management mechanism and the Military’s particularities. In the short term, it is imperative to formulate the system of norms as the basis for budget estimate and allocation, review and supplement the regulations and guiding documents on operating and managing budget, investment capital, public assets, and business finance under the State’s regulations, complete the building of a new payroll to better improve troops’ life, and give instructions on financial autonomy to military hospitals. Guest houses, resort units, and printing factories should strictly adhere to the financial autonomy project which will be approved by the MND to improve their efficiency. Specialised sectors across the Military should quickly review and supplement the economic-technical norms, and complete their categories of goods under the centralised procurement. Moreover, they should closely cooperate with offices of finance in drawing up and allocating budget under the regulations.

Additionally, the Department of Finance should advise the CMC and the MND on consolidating the organisational structure of finance offices in line with the streamlining of forces at each level, while synchronously taking measures for building a contingent of financial cadres and employees with proper quantity and high quality. Offices of finance at all levels should better apply information technology to their work, step up administrative reform, and improve their task performance. Besides, emphasis should be placed on organising party congresses of finance offices at all levels and holding conferences to review the 10-year implementation of the emulation movement entitled “building good financial management units” so as to draw lessons and unceasingly raise the quality of the military financial work.

Maj. Gen., Dr Luu Sy Quy, Director of the Department of Finance, the MND