Báo cáo thực tập tiếng anh INTERNSHIP COMPANYINSTITUTION international cooperation department – ministry of finance

Position and functions International Cooperation Department is a unit under the Ministry of Finance ofVietnam, with the function of advising and assisting the Minister of Finance tofulfi

VIETNAM NATIONAL UNIVERSITY, HANOI

INTERNATIONAL SCHOOL

***

GRADUATE INTERNSHIP REPORT

INTERNSHIP COMPANY/INSTITUTION: International Cooperation Department – Ministry

of Finance

Address: No 28 Tran Hung Dao St., Hoan Kiem District, Hanoi, Vietnam

Supervisor: Ms Hoang Kim Thu

Student’s full name: Đỗ Phương Chinh

Student’s ID: 12071201

Major: International Business

Class: IB2012B

Hanoi, March 10, 2016

Acknowledgements

I’d like to say thank to all the peoples at the International Cooperation Department of Ministry of Finance, especially Mr Pham Tuan Anh (Deputy Director), you all have made my six weeks of training time worthwhile and mind-opening Special thanks go

to my academic supervisor Ms Hoang Kim Thu from the International School,

Vietnam Nation University, Hanoi; you have provided the necessary ideals and steps tomake this report a success And last but not least, I’d like to take the opportunity to thank the International School, Vietnam Nation University for giving me the chance to apply my academic knowledges into real-life practice

Table of Notations and Abbreviations

ASEAN Association of Southeast Asian Nations

International Cooperation Dept International Cooperation Department

RCEP Regional Comprehensive EconomicPartnership

Table of Contents

I Introduction: 6

II Contents: 6

A Chapter 1: General information about Internship Institution 7

1 The Ministry of Finance of the Social Republic of Vietnam 7

a General information about Ministry of Finance 7

b Establishment and development of the Organization: 7

c Position and Functions 9

d Tasks and Powers 10

e Organization Structure 11

2 Department of International Cooperation at Ministry of Finance of Vietnam 12

a Position and functions 12

b Tasks and powers 12

c Organizational structure 13

3 Division of International Finance Cooperation: 14

a Function: 14

b Tasks: 14

B Chapter 2: Finding about a specific major activity of Division of International Finance Cooperation (Ministry of Finance Vietnam) 15

1 An overview of International Cooperation Dept (MOF)’s operation 15

a Division of Foreign Affair 15

b Division of Managing programs, projects 16

c Division of International Economic Cooperation 17

d Division of International Finance Cooperation 18

2 Current projects and programs 18

a Regional Comprehensive Economic Partnership (RCEP) 18

b The ASEAN Trade in Goods Agreement (ATIGA) 19

c Association of Southeast Asian Nation Plus Three (ASEAN+3) 20

3 The process of issuing Circular 165/2014/TT-BTC by Ministry of Finance to implement

Vietnam’s commitment in ATIGA 21

a General information about Circular 165/2014/TT-BTC 22

b The process of issuing circulars of Ministry of Finance 23

c The process of issuing circular 165/2014/TT-BTC by Ministry of Finance 26

C Chapter 3: Goal of internship, tasks assigned and working methods 29

1 Goals of internship 29

2 Tasks assigned 30

3 Working methodology 32

D Chapter 4: Results gained from the Internship 33

1 Gained knowledges 33

2 Gained skills 35

3 Gained experiences 36

4 Contribution to the Division 37

III Conclusion: 37

IV References: 38

V Schedule and evaluations of the graduate internship: 40

I Introduction:

In recent years, Vietnam has successfully signed many free trade agreements(FTA) in the processes of globalization and regionalization By the end of 2015,Vietnam has joined 10 FTAs, 6 of them are regional FTAs (ASEAN, ASEAN-China, ASEAN-South Korea, ASEAN-Japan, ASEAN-Australia-New Zealandand ASEAN-India) and four bilateral FTAs (Vietnam-Japan EconomicPartnership Agreement (VJEPA), Vietnam-Chile FTA, Vietnam-South KoreaFTA, and the Vietnam Eurasian Economic Union FTA These FTAs have madepositive impact on economic growth With an import and export turnover 1.5times higher GDP in recent years, Vietnam is considered a relatively openeconomy [3] And behind all of these economic achievements of Vietnam is aGovernment agency that working day by day for the good of the people ofVietnam, it is the Ministry of Finance (MOF) For more specific, theInternational Cooperation Department, which under the management of MOF, isthe institution taking the lead responsibility in searching, negotiating andsigning FTA between Vietnam and other countries Moreover, it also has thefunction of evaluating the impact of FTAs on Vietnam economic, ensuring thefulfilment of Vietnam’s commitment in FTAs and all related issues

Through this internship report, I wish to bring peoples an inside view of MOF,especially on how they maintaining an FTA For the first two chapter of thisreport, I will give the reader an introduction about the history, establishment andorganizational structure of MOF as well as the International Cooperation Dept.After that, I will describe one specific activities of MOF that help to maintainFTAs The last two chapter of this report will mainly focus on the experiencethat I have and lessons I have gained during the intern in the InternationalCooperation Dept (MOF)

II Contents:

A Chapter 1: General information about Internship Institution

1 The Ministry of Finance of the Social Republic of Vietnam

a General information about Ministry of Finance

Ministry of Finance

Address: No 28 Tran Hung Dao St., Hoan

Kiem District, Hanoi, Vietnam

Leaders of the Ministry of Finance [8]

b Establishment and development of the Organization:

August Revolution 1945 had succeeded, the state of Democratic Republic ofVietnam was born, along with the establishment of the Provisional Government,the Ministry of Finance is one of the government organization established on28/8/1945 During the decades of establishment and development, the Ministry

of Finance and Vietnam Finance have matured in all fields, the construction ofNational Finance gradually grow, greatly contributing to the development and

protection of our country We can look back on the history of the Ministry ofFinance through time milestones:

1945-1954

- Ministers: Phạm Văn Đồng (1945-1946) and Lê Văn Hiến (1946-1958)

- Adjusting State budget during 1945-1954

- Unified state financial management during 1951-1954

- Three year Social reform and initial culture – economic development 1960) State budget is continuously strengthened and developed

(1958 The Third Communist Party Congress on the Socialist industrialization andfinancial target during 1961-1965

- Improving the State Budget revenue regime during 1961-1965

- Strengthening the expense management, practicing economy for taking astep forward and improved economy accounting regime during 1961-1965

- Important addition and renewal on the financial policy and mechanismduring 1966-1975

- State Budget during 1966-1975

1976-1980

- Ministers: Đào Thiện Thi (1974-1977) and Hoàng Anh (1977-1982)

- State Budget revenue

- State Budget expenditure

- State Budget fund management

- Revenue and Expenditure balance and budget surplus solutions

- Decentralization on the State Budget management levels between Centraland local

1986-1990

- Ministers: Chu Tam Thức (1982-1986) and Vũ Tuân (1986-1987) andHoàng Quy (1987-1992)

- State Budget Revenue

- State Budget Expenditure

- State Budget preparation and implementation

- State Budget fund management

- Revenue and Expenditure balance and budget surplus solutions

- Decentralization on the State Budget management levels between Centraland local

1991-2000

- Ministers: Hồ Tế (1992-1996) and Nguyễn Sinh Hùng (1996-2006)

- Finance sector of Vietnam in 10 year reform [7]

c Position and Functions

The Ministry of Finance (MOF) is a Government agency which has the function

of implementing the State management in finance (including: State budget, tax,fees and other revenues of the State budget, national reserve, State financialfunds, financial investment, corporate finance and financial services); customs;accounting; independent auditing; insurance; prices; securities; conducting the

owner ship right to the State’s investment capital in enterprises according toregulations of the Law.

d Tasks and Powers

Pursuant to the Decree No 215/2013/ND-CP issued by the Government, themain tanks and duties of the MOF are as follows:

- Submit to the Government and Prime Minister for approval law andordinance projects Draft legal documents, strategy and developmentplanning, long-term, five-year, and annual plants on the fields within theMinistry’s authority

- Issue legal documents within the Ministry’s authority

- Instruct, guide, supervise and to be in charge of implementing the legaldocuments, strategy, planning, plan, to be set up the propaganda,disseminate, educate legal documents on the fields within the Ministry’sauthority

- Manage the State budget

- Manage the collection of tax, fees and other revenues under the State budget

- Manage the budget fund, the State reserve fund and other State financialfunds

- Manage the national reserves

- Manage the State assets

- Manage corporate finances and the State capital at the enterprises

- Manage the Government borrowing and debt servicing from domestic andabroad and international grants

- Implement the State management in accounting and auditing

- Manage banks and non-banking financial institutions regarding issues,financial services

- Manage customs activities

- Implement the State management in prices

- Issue Government bonds and participate in stock market management underthe regulations of law

- Manage, supervise stock and stock market

- Organize and guide the implementation of statistics in the fields within theMinistry’s authority

- Decide specific orientations and measures and guide the operatingmechanism of public services providing organizations in the fields within theMinistry’s authority in accordance with provisions of Laws, to manage andguide the implementation of activities of non-productive units within theMinistry’s authority

- Inspect, control, settle complaints and denouncements, resist corruption, and

be processed by authorized level or be submitted to the competent levels forsettlement in accordance to the regulation of the law applied for finance-budget management regime breaks and violations

- Conduct administrative reform under the Government program

- Manage organizational structure, permanent staff, guide the implementation

of the provision on salary, bonuses, disciplines for the State officers withinthe Ministry’s authority, train and retrain staff in the whole sector

- Manage the assigned capital and assets and the distributed budget plan underthe provisions of the Law [11]

e Organization Structure

Organization structure of the MOF according to the Decree No

215/2013/ND-CP dated 23/12/2013 issued by the Government [12]:

2 Department of International Cooperation at Ministry of Finance of Vietnam

a Position and functions

International Cooperation Department is a unit under the Ministry of Finance ofVietnam, with the function of advising and assisting the Minister of Finance tofulfill State management functions for international economic integration andinternational financial cooperation in the field under the MOF’s jurisdiction,managing cooperation programs and Ministry’s projects funded by foreigncountries, implementing foreign affairs of the MOF

b Tasks and powers

- Proposing and developing strategies for international cooperation andintegration of MOF, action plan, the implementation plan for internationalcooperation in the areas under the state management of the MOF

- Chairing, submitting to the Minister draft of legal and regulatory documents,guidelines and policies on international cooperation in the Ministry’smanagement fields

- Chairing, developing negotiation plans and assisting the Minister in signingand entering international treaties, international agreement with othercountries, or with international organization and involving contributeopinions with other Ministries, Branches in the process of negotiation,signing international treaties as assigned by the Government

- Chairing, organizing policy dialogues and providing information about thefinancial policy of Vietnam to foreign investors within ASEAN FinanceMinisters Investors Seminar or within bilateral cooperation as assigned bythe Minister of Finance

- Building regulations on coordination between organizations and units withinthe MOF in implementing international cooperation tasks as assigned

- Chairing or coordinate with other organizations, internal or external units ofthe Ministry in propagandize, disseminate, provide information aboutinternational cooperation and integration tanks under the scope ofmanagement of the Ministry according to provisions of Law

- Carry out information regulations, report about the progress of assignedtasks implementation

- Taking part in conducting research or research cooperation with other unitsaccording to the plan and content assigned by the competent authorities

- Fulfilling other duties as assigned by the Minister [5]

c Organizational structure

Organization structure of the International Cooperation Dept according to theDecision No 1135/2014/QD-BTC dated 27/05/2014 issued by the MOF [6]:

Leaders of the International Cooperation Department

3 Division of International Finance Cooperation:

a Function:

According to Decision No 03/QD-HTQT dated 15/7/2015 issued by MOF [4],the Division of International Finance Cooperation is a professional specializedunit helping the Director in implement tanks related to policy integration andregional cooperation (ASEAN, ASEAN +, APEC, ASEM)

Division of Managing Program, Projects

Division of Foreign Affair Deputy

Directors

- Drafting legal document related to regional integration and cooperationwithin the Ministry’s management field

- Implement tasks related to regional economic-finance cooperation, regionalagreements

- In charged of supervising regional micro-economic

- Collaborate with other related divisions in implement including tanks:

 Drafting international cooperation strategies

 Evaluate impact of cooperation

 Propagandize, provide information about international cooperationand integration

 Dealing with petitions related to finance from foreign enterprises,foreign embassies in Vietnam, international organization

 Supervise the process of implement foreign affair regulation

 Make a report about foreign affair [4]

B Chapter 2: Finding about a specific major activity of Division of International Finance Cooperation (Ministry of Finance Vietnam)

1 An overview of International Cooperation Dept (MOF)’s operation

There are 4 Divisions in the International Cooperation Dept Their functionsand tasks are as follow: (According to Decision No 03/QD-HTQT dated15/7/2015 issued by MOF)

a Division of Foreign Affair

Function:

The Division of Foreign Affair is a professional specialized unit helping theDirector in implement tanks related to policy integration and bilateralcooperation (except for bilateral cooperation with ASEAN nations)

Tasks:

- Drafting legal document related to bilateral integration and cooperationwithin the Ministry’s management field

- Implementing tasks related to bilateral economic-finance cooperation,bilateral agreements

- Holding policy dialogue and providing information about economic policy

of Vietnam to foreign investors within the framework of bilateralcooperation

- Suggesting solutions for handling request related to finance of foreign firms

or foreign embassies in Vietnam

- Collaborate with other related divisions in implement including tanks:

 Drafting international cooperation strategies

 Evaluate impact of cooperation

 Propagandize, provide information about international cooperationand integration

 Dealing with petitions related to finance from foreign enterprises,foreign embassies in Vietnam, international organization

 Supervise the process of implement foreign affair regulation

 Make a report about foreign affair [4]

b Division of Managing programs, projects

Function:

The Division of Managing programs, projects is a professional specializedunit helping the Director in implement tanks related to manage programs,projects, policy cooperation with foreign organization (IMF, ADB, AHB,

WB, UNDP, IFC, OECD…)

Tasks:

- Planning, recapitulating and evaluating the implementing situation ofForeign affair Regulations, Managing project Regulations

- Managing MOF’s programs, projects

- Holding policy dialogue and providing information about economicpolicy of Vietnam to foreign investors

- Keeping track of world’s economic and finance, international issues(climate changing, green growth…)

- Drafting international cooperation plans of MOF

- Solving international organization’s request about financing

- Collaborate with other related divisions in implement including tanks:

 Drafting international cooperation strategies

 Evaluate impact of cooperation

 Propagandize, provide information about international cooperationand integration [4]

c Division of International Economic Cooperation

Function:

The Division of International Economic Cooperation is a professionalspecialized unit helping the Director in implement tanks related to policyintegration and multilateral cooperation

- Evaluating impact of economic-finance multilateral cooperation

- Helping the Director in managing MOF’s members at Vietnamrepresentative agencies beside WTO and other internationalorganizations

- Collaborate with other related divisions in implement including tanks:

 Dealing with petitions related to finance from foreign enterprises,foreign embassies in Vietnam, international organization

 Supervise the process of implement foreign affair regulation

 Make a report about foreign affair [4]

d Division of International Finance Cooperation

Function: As mention above

Tasks: As mention above

This is the Division that I’ve worked for during my internship at theInternational Cooperation Dept (MOF) From now on, the rest of my reportwill mostly focus on the activities of this Division only

2 Current projects and programs

a Regional Comprehensive Economic Partnership (RCEP)

General information about RCEP

- Regional Comprehensive Economic Partnership (RCEP) is a free tradeagreement (FTA) comprising ten member nations of ASEAN and six othercountries with which has existing FTAs (Australia, China, India, Japan,South Korea and New Zealand) and is expected to conclude before 2015,toward the target of building on the East Asia Free Trade Agreement(EAFTA) and introduced the Comprehensive Economic Partnership in EastAsia initiatives The first rough of negotiation was launched during theASEAN Summit 2011 in Indonesia, and started the negotiation during theASEAN Summit 2012 in Cambodia

- Until now, seven rounds of official negotiation and many inter-sessionalmeetings have been completed, toward the target to complete thenegotiations directed by ASEAN Leaders and six joining negotiationpartners However, the negotiation process was not reached as manydifferent points of opinions between countries [10]

Goal and tasks of the Division

- The target is to help Vietnamese delegation complete the negotiations withothers member nations which brings the best benefit to Vietnam

- Tasks included:

 Drafting plan and participate in negotiations

 Collaborate with other related Divisions

 Suggest solutions in order to overcome different points of opinionsbetween partner nations under major fields which are commercialproducts, services, and investments related to import-tariff cut

b The ASEAN Trade in Goods Agreement (ATIGA)

General information about ATIGA

- ATIGA is one of many agreements were signed to support ASEANEconomic Community (AEC) This agreement was signed on 26/2/2009 inthe 14th ASEAN Summit in Thailand and effective from 17/5/2010

- ATIGA aims to achieve free flow of goods in the religion resulting to lesstrade barriers and deeper economic linkages among member nations, lowerbusiness cost, increased trade, and a larger market and economies of scalefor businesses Through ATIGA, Brunei, Indonesia, Malaysia, Philippines,Singapore, and Thailand have eliminated intra-ASEAN import duties on99.65% of their tariff lines Cambodia, Lao PRD, Myanmar, and Vietnamhave reduced their import duties to 0-5% on 98.86% of their tariff lines [9]