Promoting democracy and upholding a sense of responsibility.

On the morning of January 15th, the 5th Extraordinary Session of the 15th National Assembly was solemnly inaugurated in Hanoi .

In his opening remarks, National Assembly Chairman Vuong Dinh Hue stated that, to meet the urgent demands of reality, based on the provisions of the Constitution and laws, the Standing Committee of the National Assembly decided to convene the 5th Extraordinary Session of the 15th National Assembly to consider and decide on important issues.

Regarding the draft Law on Land (amended), after being reviewed and revised, the draft Law comprises 16 chapters and 260 articles (5 articles were removed and 250 articles were revised compared to the draft Law submitted to the National Assembly at the 6th Session). To date, the draft Law has fully incorporated and institutionalized the viewpoints and contents of Resolution No. 18-NQ/TW dated June 16, 2022, of the 5th Plenum of the Central Committee of the 13th Party Congress, is consistent with the Constitution, is in sync with the legal system, and is ready to be submitted to the National Assembly for consideration and approval at this Session.

National Assembly Chairman Vuong Dinh Hue delivers the opening speech at the 5th Extraordinary Session of the 15th National Assembly. Photo: Nhan Sang/TTXVN

The draft Law on Credit Institutions (amended) contains many specialized provisions that directly impact financial and monetary policies and macroeconomic stability. Therefore, the Chairman of the National Assembly requested that National Assembly deputies carefully and comprehensively study, provide feedback, refine, and consider the draft Law for voting to ensure it meets practical requirements and guarantees the safety, soundness, transparency, stability, and sustainability of the banking system and credit institutions.

The Chairman of the National Assembly stated that, regarding some specific mechanisms and policies for national target programs, in implementing the Resolution on specialized supervision at the 6th Session, the Government has submitted to the National Assembly for consideration and decision the application of some specific policies to remove difficulties and obstacles, and accelerate the progress and effectiveness of the implementation of 3 national target programs.

At this session, the National Assembly will consider, comment on, and decide on a number of important and urgent issues concerning finance and the budget.

The decisions made at this session are of great importance not only for the implementation of the socio-economic development plan for 2024 but also for the entire term, having fundamental, strategic, and long-term significance. The Chairman of the National Assembly requested that National Assembly deputies promote democracy, uphold a high sense of responsibility, focus on research, engage in lively discussions, and contribute many heartfelt and high-quality opinions so that the session can complete its entire agenda with high consensus and agreement.

During the plenary session on the morning of January 15th, which discussed several new or contentious issues in the draft amended Land Law, delegates focused their attention on and provided feedback on the land valuation method.

Regarding the proposal to exclude the surplus method from land valuation, Representative Nguyen Hoang Bao Tran (Binh Duong) explained that the results of land valuation using the surplus method are based on assumptions and estimates, thus lacking reliability in areas with limited factual information and revenue costs used as estimated expenses.

"Calculating the hypothetical factors is very complex, resulting in uncertain, inaccurate valuations with large errors. For the same plot of land, changing just one indicator in the hypothetical factors will alter the valuation result. This is the main reason for the difficulties and delays in determining and deciding on specific land prices in the past, and the different interpretations by each person in different circumstances and at different times," Representative Nguyen Hoang Bao Tran commented.

According to the delegates, in the context of an incomplete database on prices and land, including data on land prices, markets, and land use rights, which are not yet fully developed and transparent, "eliminating one land valuation method is also necessary." "If it is necessary to retain this method, there needs to be a 'locking mechanism' to control the accuracy and appropriateness of the land valuation results," said delegate Nguyen Hoang Bao Tran.

During the afternoon session, while giving feedback on the draft Law on Credit Institutions (amended), many delegates expressed concerns about the regulation allowing commercial banks to act as agents for life insurance.

National Assembly representative Pham Van Thinh from Bac Giang province delivers a speech. Photo: Pham Kien/TTXVN

Representative Pham Van Thinh (Bac Giang) stated: The maximum discount for life insurance agents for the two most popular types of life insurance products (term life insurance and hybrid insurance) is 4% of the first year's premium. At commercial banks that have partnerships with life insurance agents, there is a phenomenon of suggesting and pressuring loan customers to purchase life insurance with an annual premium of 2-4% of the loan value. At commercial banks, bank employees are assigned targets for the number of insurance contracts and targets for life insurance premium revenue.

Citing figures from several banks, delegate Pham Van Thinh stated that during the period from 2018 to 2022, income from acting as life insurance agents for commercial banks accounted for a very large proportion of these banks' profits.

Given the significant practical benefits, delegates argued that if the draft Law only incorporates the addition of Clause 2, Article 113: "Commercial banks may conduct insurance agency activities in accordance with the law on insurance business, consistent with the scope of insurance agency activities as prescribed by the Governor of the State Bank of Vietnam," there would be no guarantee against the practice of pressuring customers to borrow money to buy insurance or exploiting the lack of understanding of customers with savings to purchase life insurance products, as has happened recently.

Delegates suggested that if the ban on cross-selling life insurance through commercial banks is not implemented, the draft Law should include an article authorizing the Government to issue regulations on the business of insurance products for which commercial banks and credit institutions act as agents, in order to ensure transparency, protect the rights of borrowers and depositors at banks.

According to VNA/News Agency

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