LookAtVietnam – National Assembly deputies have approved a draft resolution which limits the State budget deficit for next year at 6.2 per cent of GDP.

Ethnic people in Chu Pa District of the Central Highland Province of Gia Lai read newspapers at the Post Office’s cultural house. The State budget for public postal services has given people better access to more news sources.

The vote for the budget resolution was 84.58 per cent in favour.

The National Assembly also passed a resolution on measures to implement the budget estimates. The measures, proposed by the Government, were based on recommendations from the National Assembly’s Finance and Budget Committee.

The National Assembly outlined eight key solutions, which include the implementation of flexible and closely controlled financial policy; the issuance of Government bonds worth VND56 trillion ($3.1 billion) to invest in projects determined by the National Assembly; continuing to let non-productive organisations increase their self-control, and encouraging different organisations to invest in various non-productive types, particularly in education and healthcare.

The Standing Committee also asked the National Assembly to delay the implementation of official remuneration and seniority allowance policies for teachers in 2010.

On the matter of the Postal Service, deputies focused on differences of opinions regarding the draft law, including regulations on a public-interest postal service, rights and duties of firms in providing postal services, issues relevant to complaint and compensation policy.

Ha Noi delegate Tran Thi Quoc Khanh said the law’s synchronousness and rationality needed to be studied carefully.

“Some regulations are not relevant to the realities, including the lack of co-ordination between offices and industries,” she said.

Khanh recommended a policy be outlined to encourage different sectors to get involved in providing postal services in an attempt to reduce State investment in the area.

Thanh Hoa delegate Nguyen Van Phat agreed with Khanh, saying the draft should encourage and develop postal service infrastructure facilities in rural and mountainous areas.

Meanwhile, delegates Tran The Vuong, Ngo Van Minh, Tran Du Lich requested the National Assembly re-examine chapter 8 which referred to regulations on complaints and compensation for loss. They said articles and items in the chapter were not clear or consistent.

“Firms should not be allowed to regulate procedures and rates of compensation for losses caused by themselves,” they said, suggesting the chapter be drafted to turn matters of loss into a civil contractual dispute which would then be subject to the regulations of civil law.

Delegates Ta Van Tan, Nguyen Viet Dung and Tran Du Lich said it was necessary to allow the Viet Nam Post and Telecommunication Corp to be the sole provider of public postal services in rural, mountainous and remote areas.

Credit funds

Deputies also discussed the revised bill on credit funds which was designed to make good certain shortcomings, to help credit funds become more competitive and build a strong monetary market.

The deputies, however, were not happy with the draft bill.

It had not ensured the banking security system and the credit funds’ self-control and self-responsibility, said Nguyen Hong Son of Ha Noi.

Regulations on credit funds’ activities were still cumbersome and the bill had not addressed their administration procedures.

“The Government should regulate that credit funds are allowed to do business only in a legal range and field,” Son said. “Since the credit fund business is high-risk and widely affects the society, they can only do banking activities when they have met legal conditions and are granted legal permission.”

Ha Noi deputy Nguyen Thi Nguyet Huong pointed out what she believed were shortcomings in the revised bill. She said the regulation banning branches and companies of commercial banks from holding shares in credit funds was too strict and did not fit in with current trends.

“That (new regulation) will not motivate banks and credit funds to develop,” Huong said.

It would prevent the attraction of capital, technology and management experience from banks that participated in strategic investment, she said.

“Major banks would be able to extend their market share through holding shares of other credit funds.”

The National Assembly’s economic committee agreed with Huong, saying it was necessary for banks and credit funds to contribute capital and exchange shares.

The committee asked the Government to amend the bill in order to encourage banks and credit funds to help each other boost the capital market.

Also under the microscope was a new regulation reducing the shareholding rate of credit funds from 20 per cent to 10 for organisations and from 10 per cent to 5 for individuals.

“I think the revised bill takes a backward step,” Huong said.

Maintaining the shareholding rate would encourage organisations and individuals to continue their capital and intellectual contribution to help boost the enterprises’ development, she said.

Another new regulation of the draft banned non-credit fund organisations and individuals from doing banking activities. But in fact, many stock companies were doing business which was based on banking activities.

Son and Huong said if the regulation came into force, it would conflict with the current Law on Securities and also the revised Law on Banking.

The amended bill also stopped foreign bank branches lending money to trade securities, which Huong said was too strict and would badly affect the domestic stock market.

“There should not be any limit. This activity should be seen as normal in the world market,” Huong said.

She did, however, suggested placing a limit on the investment of the foreign banks loans for security trading.

Discussing other issues of the draft bill, some deputies requested the drafting committee to reconsider the period for granting permission to establish credit funds.

The State Bank of Viet Nam should take responsibility for guiding enterprises through the paperwork and the application time should be 180 days from the day the documents were received, they said.

VietNamNet/Viet Nam News