Managing public spending in infrastructure construction for the vinh phuc state treasury assessment and implications

VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL *************** NGUYEN HONG CUONG MANAGING PUBLIC SPENDING IN INFRASTRUCTURE CONSTRUCTION FOR THE VINH PHUC STATE TREASURY - ASSESSMENT AND IMPLICATIONS MASTER THESIS HA NOI - 2022 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL *************** NGUYEN HONG CUONG MANAGING PUBLIC SPENDING IN INFRASTRUCTURE CONSTRUCTION FOR THE VINH PHUC STATE TREASURY - ASSESSMENT AND IMPLICATIONS QUẢN LÝ CHI XÂY DỰNG CƠ BẢN BẰNG NGÂN SÁCH TẠI KHO BẠC NHÀ NƯỚC VĨNH PHÚC - ĐÁNH GIÁ HIỆU QUẢ VÀ HÀM Ý VỀ QUẢN LÝ Major: Financial Management Code: 8340202.01QTD MASTER THESIS Supervisor: Dr Nguyen Phu Hung HA NOI - 2022 ACKNOWLEDGEMENTS I am thankfully to the supports from Dr Nguyen Phu Hung for his invaluable supervision which was much important to my thesis work I am also like to thank other Professors of the master program, my classmates, and colleagues who support and encourage me to the completion of this thesis Hanoi, June 2022 Nguyen Hong Cuong i ABSTRACT This thesis is to study of the performance of public spending on public infrastructure projects in Vinh Phuc province First, the thesis studies current status of public spending and their results, then identifies problems and issues that need to be addressed The thesis studies lessons from other developed countries and apply these lessons to the case of Vinh Phuc public spending In order to produce best research performance, the thesis develops an analytical framework based on literature review In order to get data for the analysis, author build an online survey to get the assessments and comments from peoples having knowledge and information about public infrastructure spending in Vinh Phuc province The thesis also utilizes PESTEL framework to analyze the overall context that necessitate public spending The thesis found a number of positive findings The laws in public investments and spending have not been aligned with each other Second, the disbursement plan in many cases are not aligned with the capital demands Third, the implementation of public infrastructure projects is limited, making project duration lengthen for years Fourth, the ratio of actual disbursement to planned disbursement are low The thesis gives core recommendations to address the issues First, in order to make it more efficient, the spending must be in plan Second, all projects must comply to laws and regulations Third, all must comply to standards regulated by the Government Fourth, disburse money to contractors in-time as required by the Ministry of Finance ii TABLE OF CONTENTS ACKNOWLEDGEMENTS i TABLE OF CONTENTS iii LIST OF FIGURES vi LIST OF TABLES vii ABBREVIATIONS viii CHAPTER 1: INTRODUCTION OF DISSERTATION 1.1 Necessity of the research 1.2 Objectives of Study 1.3 Study questions 1.4 Scope of study 1.5 Structure of the thesis CHAPTER 2: LITERATURE REVIEW AND THEORETICAL FRAMEWORK 2.1 Public finance and budgeting 2.1.1 Public finance: 2.1.2 Public spending: 2.1.3 Expense management 2.1.4 Evaluation criteria for public expenditure management: 2.2 Public budgeting (establishment of state budget estimates) 2.3 Challenges of public spending and budgeting 2.4 Role of budgeting for spending 2.5 Managing public finances and budgeting 2.6 Factors affecting public spending performance 2.7 Studies in Vietnam on controlling capital expenditure for infrastructure spending from the state budget 2.8 Overview about Capital of Infrastructure Spending from the State Treasury 2.8.1 Concepts and definition 2.8.2 Characteristics of Infrastructure investment capital from the State Budget 2.8.3 Classification of Capital for Infrastructure Spending from the State Budget 10 2.8.4 The role of investment in infrastructure from the state budget 10 2.9 Controlling capital spending for infrastructure spending from the state budget through the State Treasury 10 2.9.1 The concept of controlling capital spending for infrastructure spending 11 2.9.2 The contents of controlling infrastructure spending by capital from state budget disbursed by state treasury 11 2.9.2.1 Control and types of control 11 iii 2.9.2.2 State treasury 12 2.9.2.3 Rules for control disbursement for infrastructure spending from the state bank 13 2.9.2.4 Contents and processes of controlling infrastructure capital disbursement 14 2.9.2.4.2 Content and process of controlling capital infrastructure spending from the state budget through the state treasury 16 2.9.3 Factors affecting the control of capital infrastructure spending from the state budget 19 2.9.3.1 Objective factors 19 2.9.3.2 Subjective factors 20 CHAPTER 3: METHODOLOGIES AND DATA 22 3.1 Stages of the research 22 3.2 Methodologies 22 3.3 Survey 23 3.4 Data 26 CHAPTER 4: ANALYSIS RESULTS 27 4.1 Overall Context of public budgeting and finance in Vietnam 27 4.1.1 Political aspect 27 4.1.2 Economic aspect of the public finance 28 4.1.2.1 Advantages 28 4.1.2.2 Weakness and threats 30 4.1.3 Social context of the public finance 30 4.1.4 Technological aspect 33 4.1.5 Legislation aspect 34 4.2 Context of the VPST 35 4.2.1 Overview of Vinh Phuc province 35 4.2.2 Overview of Vinh Phuc State Treasury 36 4.2.2.1 Missions and authority 36 4.4.2.2 Organizational structure 37 4.2.3 Performance 37 4.3 Criteria to evaluate the performance of public spending 38 4.4 Performance of budgeting planning in Vietnam in general and in Vinh Phuc in particular 38 4.4.1 Budget and Expenditure during the last years 39 4.4.2 The Strength of budgeting planning 41 iv 4.4.3 The Weaknesses of public investment in Vietnam in general and in Vinh Phuc in particular 43 4.4.4 Causes of weakness 43 4.5 Survey results of the Assessment of VST’s spending control and monitoring 44 4.5.1 Assessment from State Treasury staff 44 4.5.2 Assessment from Clients applying and receiving capital for infrastructure construction 45 4.6 Summary of findings 47 CHAPTER 5: IMPLICATIONS OF FINDINGS AND CONCLUSIONS 50 5.1 Implications of findings 50 5.2 Direction and Recommendations for the complete solution to control the cost of infrastructure spending from the state budget through the Vinh Phuc state treasury 50 5.2.1 Renovating the model of controlling construction investment spending under the "one-stop service " mechanism 50 5.2.2 Completing the process of controlling capital expenditure for infrastructure spending through Vinh Phuc State Treasury 52 5.2.2.1 Completing the process of transferring payment documents 52 5.2.2.2 Improve the control of advanced spending and advanced payment of spending from the State Budget 53 5.2.2.3 Reform budgetary documents, forms, and other accounting documents for controlling and monitoring public spending 54 5.2.3 Integrate the process of controlling infrastructure spending spending at the State Treasury to unify the process and focus on focal points 54 5.2.4 Completing the scope and content of controlling infrastructure spending from the state budget through the Vinh Phuc State Treasury 55 5.2.5 Organizing the controlling operations 56 5.2.6 Improve the qualification and ethic of staff who control and monitor the public spending 60 5.2.7 Applying ICT to improve the performance 61 5.2.7.1 Direction of development 61 5.2.7.2 Practices recommended 62 5.3 Limitations of thesis 63 5.4 Conclusions 63 REFERENCES 64 v LIST OF FIGURES Figure 2-1: Process of controlling payment of infrastructure spending through State Treasury 18 Figure 3-1: Stages of thesis research 22 Figure 5-1: Proposed reformed processes to complete the process of transferring payment documents 52 vi LIST OF TABLES Table 3-1: The questions of Survey 24 Table 4-1: Payments of project management costs for public infrastructure construction projects from Vinh Phuc State Treasury (2018-2020) 39 Table 4-2: Report of budget disbursement for public infrastructure in 2018 39 Table 4-3: Report on financial disbursement for public infrastructure in 2019 40 Table 4-4: Report on financial disbursement for public infrastructure in 2020 41 Table 4-5: Assessment from staffs on Capital Investment Control mechanism/ apparatus 44 Table 4-6: Assessment from staffs on Investment Capital Control Tools 44 Table 4-7: Assessment from staffs on the Procedures for Control of Construction Investment Capital 45 Table 4-8: Assessment from clients of VST on Capital Investment Control mechanism/ apparatus 46 Table 4-9: Assessment from clients of VST on Investment Capital Control Tools 46 Table 4-10: Assessment from clients of the VST on the Procedures for Control Of Construction Investment Capital 47 Table 5-1: IT-Supported Process Innovation in the Public Sector 62 vii ABBREVIATIONS Key Meaning KPI Key Performance Indicators VPST Vinh Phuc State Treasury VPG Vinh Phuc Government SBV State Bank of Vietnam ST State Treasury viii Step 2: Head of Expenditure Control Department checks the documents to sign the report to the State Treasury's leaders, the application for payment of investment capital, the disbursement/withdrawal of investment capital, the application for advance payment of investment capital (if any), after then return the file to the expense controller and submit it to the State Treasury's leadership to sign and approve the report to the leader, the written request for payment of investment capital, the withdrawal of investment capital or the withdrawal of the budget estimate for non-business capital Step 3: Leaders of the State Treasury sign and approve the report to the leaders of the expenditure control department, the request for payment of investment capital, the withdrawal of investment capital, then return the documents to the state budget expenditure control department Step 4: The expenditure controller sends documents to the accounting department, including: Application for payment of investment capital, investment capital withdrawal, and application for advance payment of investment capital (if any) Step 5: The accountant checks the validity and legitimacy of the accounting vouchers, records and signs on paper and machine vouchers, then submits them to the chief accountant The chief accountant checks and signs the paper documents, signs on the money transfer machine to pay the beneficiary The accounting department keeps one copy of the investment capital withdrawal document and one copy of the request for advance payment (if any), the remaining documents are transferred to the expense control department for record keeping and return to the investor, the project management board judgment 5.2.2.2 Improve the control of advanced spending and advanced payment of spending from the State Budget For advance payment, compensation, and support for site clearance according to regulations on time and responsibility for advance refund specially: within 30 working days from the date of payment to the beneficiary, without waiting for the full payment to the beneficiary, the investor must gather documents, make payment and recover the advance The payment of advance payments in the previous period must be requested in full before making this advance In case of failure to repay, an application for extension of the repayment period must be submitted (the third period's advance must be fully refunded for the first period) After year from the date of transfer into the deposit account of the investor, the project will withdraw and reduce the allocation to deduct the advance, so as not to let the prolonged detention cause a waste of the State's capital When implementing a construction project, site clearance is the most difficult problem for investors, especially in Vinh Phuc province, which is one of the provinces with expensive land prices compared to the national average So many 53 projects behind schedule come from here Most projects with site clearance in Vinh Yen, Phuc Yen and other districts in the province must mobilize the whole political system to mobilize and mobilize individuals and organizations to receive compensation, there are cases where they agree to receive money, but when the investor brings the money, they change their mind not to accept it Therefore, the regulation that the time limit for advance payment for site clearance work is 30 working days from the date of payment to the beneficiaries is not reasonable, not close to reality and not feasible 5.2.2.3 Reform budgetary documents, forms, and other accounting documents for controlling and monitoring public spending Firstly, for the project's legal documents: The management of the project's legal documents in the issued process is basically stable In fact, there are some cases of wrong authority and regime, wrong form of documents, wrong data, not ensuring control requirements When expenditure control encounters legal documents that are wrong on authority, the State Treasury often reports to the person competent to issue such documents, but the response of the competent person for many reasons is irregular and delay After that, it is not feasible to report to the superior State Treasury and the Ministry of Finance The author proposes whether to allow the head of the State Treasury unit to control expenditures to refuse to so if he is wrong in his authority, in the wrong regime and takes responsibility for his decisions In cases where the form is not suitable, the person who issues the document shall comply with the responsibility Second, control capital expenditure for procurement of goods and equipment in investment projects: State Treasury shall base on the minutes of acceptance of goods and equipment procurement and equipment procurement contracts between the investor and the contractor to pay the beneficiary Third, open accounts and record accounting vouchers applying TABMIS: The current state Treasury's account opening and use is not professional, so customers are often confused when making payments The method of recording accounts is therefore prone to errors Customers have to repeat vouchers many times, prolonging the payment time State Treasury needs to guide and unify standard accounts for transaction customers When the investor opens an account, the State Treasury only informs the customer of one main account In order to avoid having to go through many intermediary steps, the account opening should be assigned to the accounting department (department) to directly receive and solve the problem Decided to open an account for a customer 5.2.3 Integrate the process of controlling infrastructure spending spending at the State Treasury to unify the process and focus on focal points 54 The existence of many documents guiding the control of the payment of investment capital does not show the consistency of processes and procedures in the State Treasury system and at the same time makes it difficult to publicize the procedures for the State Treasury customer unit Besides that, the State Budget and Treasury management information system TABMIS is being widely deployed in the State Treasury system Controlling spending commitments is closely linked with the progress of TABMIS implementation in the entire State Treasury system The Ministry of Finance has decided to comprehensively manage the commitment to spend the State Budget through the State Treasury upon completion of the nationwide implementation of TABMIS Under the urgent requirements of the renovation and reform process, to improve the effectiveness and efficiency of investment expenditure control in capital construction from the state budget, the integration of guiding documents on control investment capital payment control with investment capital payment control process Capital construction, integrating capital payment control process with investment spending commitment control process Basic construction into one process Unification in the State Treasury system is really necessary Integrating the infrastructure spending control process, which will be the arrangement and synchronization of the capital construction payment control processes and infrastructure spending commitment control According to unifying the object and scope of control; thereby arranging the cost control process throughout from the preparation of documents, obligations, and payments to beneficiaries; unifying and clearly distinguishing the work of preparing documents at each stage; improving control conditions at each stage of commitment control and payment control in the direction of openness and transparency, applying favorable conditions of information technology towards a process of controlling investment spending Basic construction is modern, tight, safe and effective 5.2.4 Completing the scope and content of controlling infrastructure spending from the state budget through the Vinh Phuc State Treasury About Scope of Control: The State Treasury controls the legal basis and basis for forming investment spending commitments: Checking whether goods and service purchase and sale contracts comply with the procurement and bidding process or not and appointing contractors according to current regulations or not To check this content, the process needs to supplement the documents that the investor must send to the State Treasury: the decision approving the cost estimate and the bidding plan of the approved bidding package Checking the contents related to the state budget are implemented properly, sufficiently and satisfactorily About contents, control’s method expenditure: The process must specify the content of checking the completeness, legality, and validity of documents Determining which documents are 55 originals, notarized copies, and copies according to the nature of each type of document Check the subjects participating in the signing of the contract, specifying that if authorized to sign the contract, there must be a written authorization It is necessary to determine which documents accompanying the agreement need to be sent for construction contracts Regulating the control method for each case of advance payment, post-payment, and advance control and post-payment In case of pre-payment and audit later: For payments under the contract, the name and account of the beneficiary shall be checked and reconciled with the agreement; Is the proposed payment amount suitable for each type of contract, contract price, and conditions in the contract? For expenditures made with a commitment to pay, is the amount proposed to be less than or equal to the unpaid amount of such responsibility? For works performed not under contract: compare to ensure the amount of capital offered for payment according to the approved estimate Then check the accounting conditions: codes on vouchers such as project code, budget index code, capital source, capital plan year, and project annual capital plan In case of audit first, payment later: In addition to the content of checking and reconciliation as in the case of prepayment and post-control, before making payment, the State Treasury shall perform a reconciliation check of the works have completed the payment request by the contract (for work performed under the contract), by the approved estimate (for work not performed under the contract) in terms of job name, volume, unit price, arithmetic error check of the proposed payment value In addition to the content of checking and comparing, as in the case of prepayment and post-checking, before making payment, the State Treasury shall check and compare completed works requested for payment to ensure compliance With the contract (for work performed under the contract), in accordance with the approved estimate (for work not performed under the contract) in terms of job name, volume, unit price, arithmetic error checking proposed payment value 5.2.5 Organizing the controlling operations Vinh Phuc State Treasury strengthens internal inspection and supervision of infrastructure spending control activities and directs and administers unified control of the payment of investment capital Officials and staff of Vinh Phuc State Treasury actively guided or coordinated with relevant agencies inside and outside the system to timely guide new investment management and construction regulations to ensure implementation Consistency throughout the system Vinh Phuc State Treasury timely captures and reflects new issues arising in controlling payment of investment capital to competent agencies for research, adjustment, amendment, and supplement promptly Timely regulations on investment and construction management, ensuring uniformity, in line with reality and socio-economic development requirements in each period We regularly update and 56 disseminate new regulatory documents on investment and construction management for research and implementation Vinh Phuc State Treasury focused on directing the unit to satisfactorily perform the task of managing and controlling the payment of investment capital The agency has well-organized the reception and notification of investment capital payment plans, renewed the management of capital resources in the direction of applying information technology, using electronic documents, focusing on management, and managing timely and flexible payment capital sources In addition, the organization directed the unit to control the payment of investment capital by the current process and regime of the State Vinh Phuc State Treasury regularly grasps reality to promptly handle problems and difficulties arising in organizing and controlling payment of investment capital the organization strengthens internal inspection and control to promptly detect and correct errors in maintaining the amount of investment capital Vinh Phuc State Treasury clearly defines the task of controlling the payment of investment capital as one of the final stages of the investment process, so all errors in both investment preparation and investment implementation are concentrated on the agency To create conditions for investors to accelerate the project implementation as planned, the State Treasury needs to focus on well implementing the following solutions: At the beginning of the year, plans need to have documents to guide and urge investors to complete investment preparation, project implementation, and a complete set of documents and procedures According to regulations, legal documents of the project shall be sent to the State Treasury to receive an advance for capital payment as prescribed The instructions for advance payment should be noted for bidding projects, emergency works, irrigation, and dyke repair Compensation for site clearance and request investors to register the disbursement schedule to arrange capital sources for payment actively Based on the annual work program and the action plan of the State Treasury, the system on assigning targets to the grassroots units to strive until December 31, promulgating a plan to accelerate the disbursement of infrastructure spending within the internal budget system set The project is prepared based on improving the quality of control of the payment of investment capital, speeding up disbursement but ensuring safety, and focusing on the quality of payment control Secondly, Vinh Phuc State Treasury implement democratic regulations in controlling the payment of investment capital To publicly post up the process of maintaining the amount of investment capital and non-business capital of investment nature of the General Director of the State Treasury; Circular guiding the management and payment of investment capital and investment 57 capital of the state budget nature The tasks of the professional staff are managed according to the investor, according to the publicly listed capital source This helps the investor know which treasury officer is assigned to manage their projects and works for direct transactions without having to go through any clues Upon receipt of capital plans from the State Treasury and financial authorities, investment capital sources shall be publicly notified to investors of the total amount and balance of each type of source from time to time so that investors can proactively plan their investments Capital payment balance plan for the project Thirdly, Vinh Phuc State Treasury completed decentralization in control and payment following the characteristics and conditions of the unit The decentralization is done clearly and transparently by a group of works and by total investment, creating the most favorable conditions for investors in the transaction process and payment of investment capital for the project Based on the total investment of the work, the investor knows where the price will be controlled; or the State Treasury staff only needs to know the total investment of the jobs or projects to understand that the responsibility for managing and paying capital for the results is the provincial State Treasury or the district State Treasury Decentralization of payment control is based on decentralization and authorization of investment decisions of the Provincial People's Committee to the District People's Committee But at the same time, it must be based on the workload, payroll, and capacity of the staff of each State Treasury unit to calculate and determine the level of decentralization for balance and appropriateness in order to bring about high efficiency The organization controls the payment of investment capital After devolution, the provincial State Treasury must examine and evaluate to detect existing limitations and overcome and adjust promptly Fourthly, the provincial State Treasury periodically reviews the disbursement rate compared to the capital plan of each work and project, in which special attention is paid to the group of assignments and projects with a low disbursement rate and coordination With investors to analyze and find the causes affecting the disbursement speed, thereby proposing solutions to report to People's Committees at all levels for timely direction to speed up the construction progress and capital disbursement progress of the project Organize survey and actual inspection at the construction site to grasp the construction progress, and coordinate with investors to remove problems at the grassroots site Arising issues beyond the scope of competence, the State Treasury promptly reported to the State Treasury, the Provincial People's Committee, etc., at the same time, proposed solutions to the units not to be entangled lengthen Organize well maintain the information and reporting regime in addition to telegraphy and writing as prescribed so that the State Treasury and the Party committees and local authorities have a basis for directing and administering, and the 58 State Treasury regularly reports Disbursement results, management situation, shortcomings, problems, causes, and solutions Reports and recommendations are made every month or ad hoc reports for the Provincial Party Committee meetings, People's Council, and Provincial People's Committee, and report on presentations in each field and period Fifthly, the provincial State Treasury regularly cooperates with other departments, agencies, sectors, and investors in managing infrastructure spending Coordination with departments, agencies, and investors is also a solution that needs to be done regularly The relationship with the Office of the People's Committee, the Planning and Investment agency, the Finance Agency, and the Investor is a relationship that the State Treasury must focus on because this is a consultative group for leaders at all levels in the project directing and operating infrastructure spending in the locality Quarterly, there are working briefings or organization of an interdisciplinary inspection team to work with localities and conduct actual site inspections of works and projects to grasp construction progress, difficulties, and challenges quickly difficulties and problems at the grassroots level, from which there are solutions to support or timely consult with the Provincial People's Committee to direct the settlement In addition, the State Treasury must regularly coordinate with the Investment Planning sector in implementing the infrastructure spending plan; with the Finance agency on ensuring payment capital, even in urging local revenue sources to secure money for works and projects; with the People's Committee in directly advising the People's Committee to direct the investors to carry out the investment and construction order by the State's regulations; with investors in urging and guiding the advance, capital payment, speeding up disbursement The Department of Planning and Investment shall assume the prime responsibility for and coordinate with the Department of Finance and the State Treasury in reviewing the works and bidding packages that have advanced capital for six months or more and have not yet received a refund; or are behind schedule, construction works and projects to advise and submit to the Provincial People's Committee to recover advances, transfer capital for other works, projects, and bidding packages whose volumes have been completed, tested and accepted but have not yet been paid Good money has not been allocated (in which priority is given to works, projects on-site clearance compensation, and construction bidding packages ahead of schedule) Close coordination with the Investor, the Investor's superiors, and relevant management agencies periodically evaluate the payment of investment capital, difficulties, and obstacles in the implementation process, thereby proposing appropriate measures to speed up the disbursement of investment capital At the same time, the control of the payment of investment capital effectively 59 promotes the advisory role in the field of investment management and construction of the State Treasury Sixthly, the State Treasury reviews and arranges documents, vouchers, and documents thoroughly and scientifically according to works, projects, and each payment, and promptly coordinates with the Investor to supplement and complete the documents lack not enough legality, such as payment proposal, relevant documents of the project are copies of the black stamp Vinh Phuc State Treasury is determined not to accept documents that not include all elements, are not legal enough, and lack logic in chronological order Upon receipt of project dossiers, documents and payment vouchers, if detecting dossiers that are missing or have not yet met their legality and validity, they must promptly notify the Investor of the results of receiving dossiers; when refusing to pay, they must notify in writing to the Investor (these forms are uniformly regulated under Decision 686/QD-KBNN) The State Treasury instructs investors fully and clearly on procedures, documents, documents, payment vouchers, time for capital payment for works and projects according to regulations, and problems that must be clearly stated or specified in any document 5.2.6 Improve the qualification and ethic of staff who control and monitor the public spending The human factor always plays a decisive role in controlling the payment of investment capital The control mechanism, the control process is given to be effective, practical, or not depends on how people implement it The control mechanism and control process is tight Still, the professional capacity of the payment controller does not meet the job requirements, and the effectiveness of the payment control will not achieve the stated objectives Therefore, improving the professional qualifications of staff in charge of payment control is necessary To well that requirement, first of all, it must be from the concentration of efforts, the selfconsciousness of the payment controller, and next, the attention and support of the leaders of the State Treasury The management and control of the payment of investment capital have changed a lot, requiring staff in charge of capital payment control always to study the regime and learn to improve their professional qualifications in payment control Invested capital, consciously regularly updating new knowledge and working according to new regulations, giving up the simple experiential way of working, following the old habits, old habits that are no longer suitable for unique situations The payment controller must not only master treasury operations but also have basic knowledge of the field of capital construction and grasp changes in the State's regulations on the Law on Construction and the Law on Bidding contractor and related guiding documents Therefore, it is necessary to organize additional training courses for staff in charge of payment control on knowledge in capital construction 60 Vinh Phuc State Treasury needs to continue to take adequate measures to attract talented people to work in the State Treasury system, especially in the State Budget Expenditure Control Department The State Treasury needs to propose to the competent authorities to have a preferential mechanism in recruitment and an adequate remuneration regime for these subjects Vinh Phuc State Treasury is necessary to train and improve the qualifications for each State Treasury officer in the direction of professionalism, meeting the competence standards and ethical qualities In addition, it is necessary to regularly re-train and update new information and knowledge so that civil servants can grasp the new requirements and tasks of industrialization and modernization of the country 5.2.7 Applying ICT to improve the performance As found in the analysis, access to nationwide databases is still limited, mainly within the system of financial institutions and treasuries, with connections to centralized national databases as well as Ministries and localities are still slow, and have not supported ministries, sectors, and localities to improve the quality of analysis and monitoring on the implementation, effectiveness, and efficiency of spending policies and investment projects, especially in the current hierarchical context Therefore, it is necessary to: Strengthening information systems for management of budget, assets, and liabilities on the basis of a common foundation and standards, ensuring general reporting capabilities, and meeting the needs of the Government's management and supervision of the National Assembly, as well as sharing with businesses and people; Create conditions for ministries, sectors, and localities to fully, directly, conveniently, and regularly access the public expenditure database obtained from the TABMIS system 5.2.7.1 Direction of development The Government has stated new direction of technology application (The World Bank, 2017): - Gradually shift the allocation of regular operating budget for science and technology tasks to the competitive bidding system: the State orders, assigns tasks, and contracts funds through competitive bidding; - Improve the system of benchmarking performance indicators associated with the completion and quality of the assigned tasks; - Review, evaluate, reorganize, and create conditions for public science and technology organizations to fully implement the autonomy associated with self-responsibility in the transition to an enterprise mode of operation; - Create a is a roadmap to reduce state budget expenditures for science and technology 61 organizations engaged in applied research 5.2.7.2 Practices recommended The OECD recommended the following list of practices (1995) for obtaining greatest organizational benefits from information systems: - Enhancing management, planning and control of IT functions; - Using technology to redesign and improve administrative processes; - Providing better access to quality information; - Harnessing the potential of new technologies; - Enveloping and applying standards; - Attracting and retaining high-caliber IT professionals; - Increasing research into the economic, social, legal and political implications of new IT opportunities; - Assessing experiences The process recommended for public sector to bring IT-supported processes and procedures into the operations is summarized in the table below Table 5-1: IT-Supported Process Innovation in the Public Sector Generic Information System Service/Product Delivery Internal Logistical Functions Auto National, Integrated service delivery via Management information informational, and sequential systems one-stop shops systems for personnel management Tracking systems Automated workflow systems to monitor and control case status in Public asset management systems delivery of welfare services Decisional analysis systems Systems for microanalysis and forecasting of welfare demand Systems for microanalysis and forecasting of public finance Inter Organisational Government-wide electronic Electronic data interchange communication systems (integrative and geographical) mail systems linked to suppliers Intellectual asset systems Expert systems to advise on client assessment Textual composition Disintermediation Direct delivery of public services via the internet Automated ordering of stocks Source: Based on Davenport (1993, pp 50-63) 62 5.3 Limitations of thesis First, public spending and budgeting is complex, extremely affected by political, social, economic and psychological processes, thus is very difficult to assess comprehensively As it is so complex and multiple disciplinary, it limits our views and possibilities and deterministic and simplistic explanations Second, public spending is a secret area, thus data was very difficult to be collected Third, the survey could reach higher numbers of respondents 5.4 Conclusions This study is a good reference for the managers of the VPST to assess the performance of its operations For better service delivery, poverty reduction, the VPG must follow the efficiency of its public spending This requires the Vinh Phuc Government control its spending better to facilitate the efficient usage of resources from taxes This dissertation covers these contents, provide relevant measures for implement the targets above 63 REFERENCES Báo điện tử đảng cộng sản Việt Nam (2022) Nghị số 63/NQ-CP Retrieved from Báo điện tử đảng cộng sản Việt Nam: https://tulieuvankien.dangcongsan.vn/he-thong-van63nq-cp-ngay-2962021-cua-chinh-phu- ban/nghi-quyet-cua-chinh-phu/nghi-quyet-so- ve-cac-nhiem-vu-giai-phap-chu-yeu-thuc-day-tang-truong- kinh-te-giai-ngan-7558 Bùi Văn Buông & Bùi Văn Trịnh, B V (2019, 15 04) Hoạt động kiểm soát chi đầu tư 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