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The defense and security industry fund is a unique and outstanding solution and mechanism.

Báo Đại biểu Nhân dânBáo Đại biểu Nhân dân30/05/2024


Contribute to reducing the burden on the state budget

The draft Law on Defense Industry, Security and Industrial Mobilization submitted to the National Assembly this time has added 19 articles. Of which, there are 2 important articles on conditions to ensure the construction and development of the defense industry, security and industrial mobilization. Specifically, Article 21 on the management of financial resources for the defense and security industry and Article 22 on the Defense and Security Industry Fund.

During the process of drafting the Law, the establishment of the National Defense and Security Industry Fund or not was a content that many National Assembly deputies participated in discussing and giving opinions. This draft Law has shown in Article 22 the most basic regulations on the National Defense and Security Industry Fund such as: purpose, source of formation, operating principles of the Fund and assigned the Government to specify in detail the establishment, management and use of the Fund. At the same time, to ensure that the expenditure tasks of this Fund are not overlapped with other funds, Clause 1, Article 22 clearly stipulates the purpose of the Fund.

The defense and security industry fund is a unique and outstanding solution and mechanism -0
National Assembly Deputy Nguyen Quoc Duyet ( Hanoi ) speaks. Photo: Ho Long

Highly agreeing with the provisions as in the draft Law, many National Assembly deputies said that the regulation of this Fund is completely necessary, with sufficient political, legal and practical basis, especially to institutionalize the latest direction of the Politburo in Conclusion No. 75 - KL/TW dated April 24, 2024.

Referring to international experience, National Assembly Deputy Nguyen Quoc Duyet (Hanoi) said that countries with developed defense industries have established financial funds to serve this field. Mobilizing legal capital sources outside the budget to build and develop the defense and security industry will help reduce the burden on the state budget. According to Deputy Nguyen Quoc Duyet, establishing a financial fund to support the state budget to serve the development of the defense and security industry is a unique and outstanding solution and mechanism, especially in implementing urgent investment programs and projects to research and manufacture weapons and equipment of strategic significance.

The defense and security industry fund is a unique and outstanding solution and mechanism -0
National Assembly Delegate Nguyen Hai Dung (Nam Dinh) speaks. Photo: Ho Long

Agreeing with the above regulation, National Assembly Deputy Nguyen Hai Dung (Nam Dinh) stated that Clause 1, Article 3 of the draft Law on the interpretation of terms affirms that "the defense and security industry has the task of researching, designing, manufacturing, producing, repairing, converting, improving, modernizing, and increasing the shelf life of weapons, technical equipment, professional technical means, technical supplies and other products and services serving national defense and security".

With such content, the cost to carry out the tasks will be very large, requiring the mobilization of many resources to meet such as from the state budget, from enterprise revenue, and from state financial funds outside the budget. Therefore, according to delegate Nguyen Hai Dung, the provisions in Article 21 and Article 22 of the draft Law will address this requirement.

The budget should be carried forward until the completion of the task.

Also concerned about financial resources for the defense and security industry, National Assembly Deputy Nguyen Truong Giang (Dak Nong) stated that Article 21 of the draft Law stipulates: "Maximum deduction of all after-tax profits in production and business activities of core defense industry establishments and core security industry establishments for research, development and production of new, high-tech products serving the defense and security industry in accordance with requirements and tasks; compensation for costs for enterprises performing the task of researching weapons and technical equipment of strategic significance, and special technical means of operation that are unsuccessful after deductions for the Defense and Security Industry Fund and other funds as prescribed by law".

Basically agree with this content, however, the regulation after setting aside the National Defense and Security Industry Fund and other funds according to the provisions of law, according to delegate Nguyen Truong Giang, needs to be further improved, more specific and can be assigned to the Government for detailed regulations. The maximum deduction of all after-tax profits after setting aside the National Defense and Security Industry Fund and other funds according to the provisions of law needs to be clarified, if after setting aside the National Defense and Security Industry Fund and other funds, there is no money left or very little left, how should it be handled?

The defense and security industry fund is a unique and outstanding solution and mechanism -0
National Assembly Delegate Nguyen Truong Giang (Dak Nong) speaks. Photo: Ho Long

In addition, according to the current regulations of the State Budget Law and a number of Government Decrees, the tasks of purchasing special assets, specialized and specialized equipment that cannot be produced domestically and must be imported to serve defense and security tasks will be transferred to the following year until the contract is accepted and liquidated, meaning that the source will be transferred within 1 year. Meanwhile, weapons systems, technical equipment, especially strategic technical weapons purchased, produced and repaired domestically by the Ministry of National Defense with high technology and very complex technical configurations must be imported from other countries, depending heavily on the country we import from. Research, repair and manufacturing often take a long time, if only allowing the source to be transferred within 1 year, it will be very difficult to implement.

Based on the practical analysis, delegate Nguyen Truong Giang proposed to add a clause in Article 21 of the draft Law, which is "the budget for purchasing and producing weapons and technical equipment of strategic significance, and special technical means, implemented in the form of assigning tasks, ordering, and bidding, if not yet implemented or not fully used due to objective reasons, will be transferred to the following year until the acceptance and liquidation of the contract".

Policy content should be a focus of monitoring.
National Assembly Delegate Nguyen Lam Thanh (Thai Nguyen) speaks. Photo: Ho Long

Sharing the same view, National Assembly Deputy Nguyen Lam Thanh (Thai Nguyen) suggested that the budget should be transferred until the end of the task implementation, according to current regulations, it should be transferred to the second year, thus creating favorable conditions for the implementation of defense industry tasks. “In addition to the practical arguments as delegate Nguyen Truong Giang mentioned, there is a complete legal basis for appropriate regulations, specifically the contents of Decree 163/2016/ND-CP of the Government detailing the implementation of a number of articles of the State Budget Law; Decree No. 165/2016/ND-CP of the Government regulating the management and use of the state budget for a number of activities in the fields of national defense and security; Decree No. 01/2020/ND-CP of the Government amending and supplementing a number of articles of Decree No. 84/2015/ND-CP dated September 30, 2015 of the Government on investment supervision and evaluation,” said delegate Nguyen Lam Thanh.



Source: https://daibieunhandan.vn/quoc-hoi-va-cu-tri/quy-cong-nghiep-quoc-phong-an-ninh-la-giai-phap-co-che-dac-thu-vuot-troi-i373497/

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