GFMIS: Appropriate Model and Roadmap Needed

Aware of the importance of public financial management reform and GFMIS building, the Ministry of Finance has been studying information technology applications to the Government’s financial management to manage public finance in a close and effective manner to improve financial indicators and ensure fiscal balance to support socioeconomic development strategies and policies of the Government. IT-based professional process restructuring aimed for public financial management reform is considered a key to enhance professional performances of officials.

 

Public financial management reform, including the construction of a national financial management information system to enhance budgetary management and regulation capacity is an urgent requirement for any country. Defining the role of financial administration reform and national financial modernisation, with the focus given to accelerating IT application to public finance to enhance the efficiency and effectiveness of financial management and supervision, Vietnam has carried out many important projects to support public financial management reform like the Treasury and Budget Management Information System (TABMIS), the Debt Management and Financial Analysis System (DMFAS), the Vietnam Automated Cargo and Port Consolidated System and Vietnam Customs Information System (VNACCS/VCIS), the Tax Management System (TMS), and others.

 

However, initial results obtained from the successful deployment of the above information systems are only the beginning and cannot cover all fields required for public financial modernisation.

 

To ensure the successful building of GFMIS, designing and building overall GFMIS model and roadmap suitable for Vietnam’s peculiar public finance plays a key role. This is a big critical and complex mission that requires the cooperation, support and consultation from various domestic and international organisations to create the best GFMIS model and roadmap specifically for Vietnam.

 

GFMIS is not a single application system but a set of application systems that resolve functional issues and are fully integrated.

 

GFMIS designing decides the effective construction and deployment of GFMIS system to reach desired objectives. GFMIS designing must start from the definition of function model and integration model between different functions. After that, IT architecture model is taken into account. Apart from referring to international practices and existing GFMIS models in other countries, GFMIS designing must fit Vietnam’s geographical, political and economic and development characteristics.

 

It is necessary to select the most suitable and consistent approach to GFMIS designing otherwise it will difficultly unify and control the scope GFMIS designing and result in GFMIS failure.

 

Administrative procedure reform in public financial management and IT application (establishing GFMIS) is directly interacting and mutually affecting activities.

 

Modernising budget collection and expenditure management is an important activity where the core of the Government’s accounting system, TABMIS, aims to complete GFMIS components.

However, administrative procedure reform in public financial field in Vietnam is still slow and lacking of resources.

 

Public finance is the act of collecting and spending State money to perform State functions and duties in the provision of public goods and services to the society.

 

Typical objectives of all public finances are: Increasing State budget revenue, improving the efficiency of public investment projects, ensuring budgetary balance, and maintaining the healthiest social and economic environment.

 

Vietnam needs to apply technology to public finance administration: Building and operating the national database system (population, enterprises and land); building and applying information exchange architecture in State agencies; redesigning professional processes of the Government and applying technology to provide better services to citizens and businesses.