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Dinh Vu

Economic Sector

Last updated: Monday, July 16, 2018


Businesses Supported to Conduct Electronic Transactions

Posted: Wednesday, September 13, 2017

The Ministry of Finance has proposed drafting a new decree in place of Decree 27/2007/ND-CP of the Government on electronic transactions in the financial sector. This ruling will greatly affect operations of companies using digital signatures, shifting from paper records to electronic records, invalidating documents or annulling electronic documents in such fields as tax, accounting, auditing, securities, financial service and insurance.

According to the Ministry of Finance, Decree 27/2007/ND-CP provides detailed measures to enforce the Law on Electronic Transactions of 2005 in financial activities, formulates the regulatory foundation for the financial sector to deploy online public services, strongly reform financial procedures and public administration, and apply electronic transactions in the areas within the jurisdiction of the Ministry of Finance.

However, this legal document is no longer appropriate in the current context and the current legal system.

The ministry said that Decree 27/2007/ND-CP is inclined to demonstrate the computerisation of traditional paper-based documents in the electronic environment rather than superior advantages of electronic method (automatic processing, reducing manual manipulation and human intervention), thus limiting the efficiency of electronic transactions in the financial sector.

It also cited inadequacies of this decree in the current context, including unspecific regulations that result in different interpretation in practice, no regulations on time accuracy in electronic transactions and requirements for electronic transactions.

Therefore, the Ministry of Finance said drafting and promulgating a new decree in place of Decree 27/2007/ND-CP and amending related documents is necessary to address those inadequacies and meet current legal requirements for electronic transactions in the financial sector.

At a recent workshop on opinions for proposed drafting of Decree 27/2007/ND-CP on electronic transactions in the financial sector hosted by the Vietnam Chamber of Commerce and Industry (VCCI) and Ministry of Finance in Hanoi, Mr Dau Anh Tuan, Director of VCCI Legal Department, said that electronic transactions help businesses reduce costs, time and bureaucracy when they have fewer direct contacts with authorities. The government will also save resources, work better and improve administration, thanks to information sharing.

However, the efficiency of information technology application is still not as good as expected. Up to 97 per cent of businesses use electronic transactions in tax and customs fields but other authorities (e.g. police, market watchdogs and border guards) still require them to provide proof of written tax and customs records, forcing them to print and copy electronic versions for this purpose.

The Ministry of Finance proposes the scope of application of the new decree on electronic transactions in the following fields: Finance (including state budget, tax, charge, fee and other revenues of the State budget, State reserves, public assets, State financial funds, financial investments, corporate finance, cooperative finance, and collective economy); customs; accounting; independent auditing; pricing; securities; insurance (excluding social insurance, health insurance and unemployment insurance); and financial services.

Besides, the ruling covers policies, objectives, contents and execution solutions such as the group of policies on materialisation and extension of conditions for acceptance of legal validity of electronic documents, group of policies on ensuring the security of electronic transactions and improving the processing capacity of electronic transactions.

According to the draft compiled by the Ministry of Finance, deploying information systems for electronic transactions at financial institutions and interconnecting concerned ministries, branches and agencies basically match programmes and projects on administrative procedure reform, online public service provision, e-government and laws on specialised management.

The ministry affirmed that promoting e-transactions towards administrative procedure reform and reducing requirements of direct interaction between people and enterprises with financial agencies will help streamline public employees for this work.

Mr Nguyen Viet Hung, Deputy Director of the Department of Financial Informatics and Statistics under the Ministry of Finance, said, drafting the revised decree is facing certain hardships, especially in communications to citizens, organisations and government agencies. They will need time to complete instruments and institutions.

He also affirmed that the Ministry of Finance will receive comments to complete the decree and issue the most realistic and feasible circulars on guidance in electronic transactions in the financial sector.

The new decree will address all existing limitations and create a favourable legal corridor for applying electronic transactions in the financial sector, and achieving Party and State objectives of speeding up administrative procedure reform and effectively applying one-stop single-window mechanism. It will help ease cost burdens on businesses, especially small and medium enterprises (SMEs), improve the business environment, and enhance national competitiveness and international integration.

Anh Mai

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