2011 Bilateral Programme with the Ministry of Finance (NIF), Vietnam

(2011. 7. 3 ~ 8, Seoul, Ulsan, Gyeongju)

□ As a part of the 2011 Bilateral Programme with the Ministry of Finance, Vietnam, the Tax     Programme, OECD Korea Policy Centre invited experts from the National Institute for Finance     (NIF), Ministry of Finance and hosted a three day seminar from July 4(Monday) to July 6     (Wednesday).

ㅇ The purpose of this seminar was to hand down Korea’s advanced fiscal and tax systems including          revenue forecasting, mid-term fiscal plan and taxation on real estate for the development of economic          related systems in Vietnam.

ㅇ For this event, ten officials including Mr. Vu Nhu Thang, President of the NIF, researchers of the NIF          and officials from the Ministry of Finance, Vietnam visited Korea.

Hosted a Seminar on Revenue Forecasting, Mid-Term Fiscal Plan and Taxation on   Real Estate

ㅇ The first day of the seminar started with a presentation by Dr. Thuan from the NIF, Vietnam on the      subject of mid-term fiscal plan. In his presentation, he touched on the following issues: the state of the     Vietnam economy and purpose, revenue forecasting and planning (central and local governments),     setting a goal of fiscal plan and comparison of real data, and problems and future plans of fiscal plan     model.

ㅇ Dr. Hong, Seunghyun from the Korea Institute of Public Finance and Ms. Song, Yoonju from the Ministry     of Strategy and Finance explained about Korean cases including scale of budget at the central     government level, the state of the national debt, scale of revenue and government expenditures,     achievements of five year economic plan, changes after the financial crisis, adoption and results of mid-     term fiscal plan, process of securing and executing budget, and top down approach budget.

ㅇ On the second day, the seminar was carried out on the subject of revenue forecasting. Dr. Tu from     Vietnam presented on the following issues: changes of revenue forecasting (2006~2010), development of     revenue forecasting model which is easy to understand and fast, and the models for major revenues     including value added tax, consumption tax and corporate tax.

ㅇ Dr. Song, Hoshin from the Korea Institute of Public Finance and Mr. Kim, Moongeun from the Ministry       of Strategy and Finance presented on the following issues: Korean tax systems (items of taxation),      Korean revenue forecasting models and efforts to reduce errors, overview of revenue recasting models       by items of taxation (income tax, transfer income tax), major considerations to enforce revenue      forecasting models.

ㅇ On the third day of the seminar, Dr. Tu explained about the real estate market in Vietnam, related taxes,      and various systems and efforts to regulate real estate speculations.

ㅇ Dr. Park, Myungho from the Korea Institute of Public Finance and Mr. Bae, Byunggwan from the Ministry     of Strategy and Finance gave a lecture on taxation on real estate in Korea covering the following issues:     real estate related taxes in Korea, taxation according to purchase and holding of, and dealing in real estate     (acquisition and registration tax, property tax, comprehensive real estate holding tax, transfer income tax     and others), distinct characteristics of real estate market and adoption of related taxes (comprehensive real     estate holding tax), analysis of real estate taxes to regulate speculation and its effectiveness and the future     policy challenges.

Visited Relevant Organization Including the Korea Institute for Public Finance and  Made an Inspection of Korean Companies Including Samsung and POSCO

□ All participants from Vietnam visited relevant organization including the Korea Institute for     Public Finance and discussed common interests and also Korean companies including     Samsung and POSCO to experience Korea’s economic development.

□ Visited historical sites in Gyeongju including Bulguksa Temple and Seokguram