“Maximizing Revenue: The State Audit Office of Vietnam’s Impressive Feat in 2023”

On July 2nd, in Hanoi, Deputy Auditor General Ha Thi My Dung chaired a press conference to publicly announce the synthesized audit results of 2023 and the implementation of Audit Office of Vietnam (AOV)’s audit conclusions and recommendations in 2022.

Enhancing the Effectiveness of Public Asset Utilization and Combating Corruption and Wastefulness

Speaking at the press conference, Deputy Auditor General Ha Thi My Dung emphasized that AOV’s audit activities have contributed to strengthening the effectiveness of financial and public asset management and administration, as well as playing a crucial role in preventing and combating corruption, wastefulness, and promoting thrift practices. In 2023, the AOV formulated an audit plan that closely followed the Party and State’s major orientations, societal issues of public concern, and areas with high risks in financial and public asset management.

The Deputy Auditor General highlighted that the effectiveness of AOV’s audit activities primarily lies in prevention and detection of violations, with recommendations for increasing state budget revenue and reducing expenditures. Additionally, the AOV proposes improvements to mechanisms and policies and rectifies issues in budget, finance, and public asset management. During audits, when issues or cases with signs of criminal offenses are identified, the AOV will either make recommendations or transfer the case files to investigative agencies for further investigation, clarification, and handling in accordance with regulations.

Over time, the AOV has transferred 40 cases with signs of legal violations to investigative agencies at different levels. Among these, 2 cases were reported to the Prime Minister for direction to the Ministry of Public Security for investigation and handling. Additionally, the AOV has provided nearly 2,000 audit reports and documents to the National Assembly’s agencies, the Central Inspection Committee, investigative agencies, and other competent authorities to serve their investigation, inspection, and supervision work.

Out of the total 40 cases, 35 have been handled and resolved by the investigative agencies so far (14 cases have been prosecuted and handled, while 21 cases have been given opinions for investigation and appraisal). Some other cases will require more time for further investigation and verification in the coming period.

Deputy Auditor General Ha Thi My Dung shared that during this coordination process, the AOV has always received very positive and timely support from competent authorities and investigative agencies. However, completely resolving all cases is not a simple task, and many issues require time for thorough investigation and verification.

According to Vu Ngoc Tuan, Director of the Synthesis Department (AOV), in 2023, the AOV recommended increasing state budget revenue and reducing expenditures by VND 21,346.33 billion, and made other recommendations amounting to VND 28,595.09 billion. Additionally, the AOV proposed amendments, supplements, or issuance of new regulations, as well as the cancellation of certain contents that are inconsistent with legal provisions or impractical in 198 documents.

Simultaneously, the AOV recommended inspecting and handling the responsibilities of collectives and individuals regarding the shortcomings and violations mentioned in the audit reports of each audit conducted in 2023.

Regarding the results of inspecting the implementation of audit recommendations in 2023, Mr. Vu Ngoc Tuan informed that in relation to financial recommendations from the 2022 audits (audited period of 2021), as of December 31, 2023, the units had implemented financial recommendations on increasing state budget revenue and reducing expenditures, amounting to VND 31,719.05 billion, achieving a rate of 92%. Other recommendations amounted to VND 30,566.16 billion, achieving a rate of 83%.

In terms of amending and supplementing mechanisms and policies, 98 out of 270 contents/documents have been implemented by the Government, ministries, central agencies, and localities by canceling, amending, or supplementing according to AOV’s recommendations. The remaining recommendations are being studied for amendment as per regulations.

Vigorous Prevention and Combat of Corruption during the Audit Process

AOV representatives also provided explanations regarding the management of credit policies and the implementation of support policies.

Mr. Le Dinh Thang, Chief Auditor of AOV Sector II, the unit in charge of the audit topic “Capital allocation and utilization for the Program of Socio-economic Recovery and Development; implementation of investment policies in accordance with Resolution No. 43”, shared that in 2023, the AOV audited the management and utilization of this capital source and recommended that any projects that cannot be completed by 2024 should be converted into public investment projects, considering that Resolution 43 has fulfilled its “mission”.

Even though the deadline has passed, some projects have not been approved for investment yet, resulting in the inability to implement and fully allocate the Program’s resources.

In the localities, the delayed implementation of projects directly impacts the non-achievement of the urgent investment objectives as required by the Resolution.

The AOV identified several objective and subjective reasons leading to the slow allocation and disbursement of the Program’s capital.

The communication of the Program’s capital plan was delayed and did not meet the required timeline. This delay was partly due to the responsibility of local authorities in project selection. The localities mostly chose projects that were not included in the medium-term public investment plan for 2021-2025, which resulted in a time-consuming process to prepare investment procedures to meet the requirements for receiving capital allocation as stipulated in the Law on Public Investment.

Additionally, during the process of preparing investment procedures, allocating detailed capital plans, arranging local budget counterpart funds, implementing investments, and disbursing the Program’s capital plan, the localities lacked decisive solutions to fulfill their commitments when participating in the Program. This is also one of the reasons and responsibilities for the limitations and shortcomings in project implementation.

Mr. Vu Van Cuong, Chief Auditor of AOV Sector VII, shared that in 2022, the global and domestic economy faced numerous challenges. To support businesses in production and business activities, the National Assembly issued Resolution No. 43/2022/QH15 on fiscal and monetary policies to support the Program of Socio-economic Recovery and Development, including support for businesses in terms of capital. Regarding the implementation of the 2% interest rate support package from the state budget for loans of businesses, cooperatives, and business households in accordance with Decree No. 31, Mr. Vu Van Cuong informed that the goal of this interest rate support package is commendable. The State Bank of Vietnam has held several meetings with relevant agencies and ministries to discuss the implementation of this support package. Businesses themselves also desire this support, and commercial banks are very enthusiastic about it. However, in reality, the implementation of this support package has not met the set goals and expectations.

Specifically, as of December 31, 2022, the amount of interest rate support from the state budget for loans of businesses, cooperatives, and business households was VND 134 billion, equivalent to 0.8% of the total registered and approved interest rate support limit, and achieving 0.84% of the 2022 plan (VND 16,034.9 billion). Among the 44 commercial banks, 15 banks did not provide any interest rate support, and 14 banks provided support of less than VND 1 billion each.

Meanwhile, the Vietnam Bank for Social Policies successfully organized and implemented this support policy, promptly disbursing funds to eligible entities and supporting the poor.

Regarding the risks of some banks, Mr. Vu Van Cuong affirmed that the AOV only audits state-owned commercial banks, while private joint-stock commercial banks are not subject to AOV’s audit according to regulations. However, through audits at the State Bank of Vietnam, the AOV has made recommendations related to the supervision of banking activities, helping the State Bank of Vietnam propose appropriate supervision and intervention measures to prevent the loss of state assets at the audited unit and ensure the safety and stability of the banking system.

In response to a question about corruption prevention and combat within the AOV in accordance with Regulation No. 131-QD/TW dated October 27, 2023, of the Politburo, Mr. Luu Truong Khang, Chief Inspector of the AOV, affirmed that the AOV has promoted the prevention and combat of corruption and negative acts within the AOV in the spirit of this Regulation.

In the fourth quarter of 2023, the AOV developed management documents on power control and corruption prevention and combat in the inspection and audit activities.

The AOV has formulated a Regulation on the Supervision of AOV Inspection Teams based on the provisions of the Law and the Party’s regulations. Chief Inspector Luu Truong Khang also shared that, in addition to the above procedures and regulations, every year, the AOV is one of the leading units in seriously implementing asset declaration and verification.

“In the coming time, the AOV Inspection will continue to promote its role in inspecting public servants and public duties, while also improving the quality of inspection in the audit activities of inspection teams and auditors. This will contribute to raising the sense of responsibility of civil servants and auditors during the performance of their audit tasks, thereby helping to prevent and combat corruption and negative acts in the audit process,” affirmed the Chief Inspector of the AOV.