The State Audit Office of Viet Nam: an accompanion in the “battle” against wastefulness
(Sav.gov.vn) - Wastefulness is a pressing issue that causes severe negative repercussions, holding back the nation's development. Guided by a strategic vision to lead the country into a "new era" under the Party's leadership, efforts to prevent and combat wastefulness are now facing urgent and critical demands. Recognizing the gravity of its responsibilities, the State Audit Office of Viet Nam (SAV) is striving to fulfill its mission, working hand-in-hand with the entire political system to resolutely tackle wastefulness.
Anti-corruption, anti-wastefulness and anti-negativity: A mission of the State Audit Office of Viet Nam
Combating corruption and wastefulness is a function and duty of SAV, as clearly defined in the 2013 Constitution, the State Audit Law, audit standards, and relevant legal documents. Article 118 of the Constitution states: “SAV is an agency established by the National Assembly, operating independently and in accordance with the law, tasked with auditing the management and use of public finance and assets.”. Thus, SAV acts as a critical oversight tool of the State, overseeing all organizations and units managing and using public finances and assets.
Additionally, the State Audit Law and other laws clearly define audit subjects, types, and the authority and responsibilities of the SAV. The Law on Thrift Practices and Anti-Wastefulness stipulates: “Within its scope of duties and powers, SAV is responsible for auditing to prevent, detect, and address violations in thrift practices and anti-wastefulness.”
These legal foundations empower the SAV to assess, confirm, conclude, and recommend actions to address violations of thrift practices and wastefulness in managing public finances and assets.
To operationalize these constitutional and legal provisions, SAV’s audit standards outline its goals as examining and evaluating the economy, efficiency, and effectiveness of public finance and asset management. By providing recommendations, the SAV contributes significantly to enhancing transparency and accountability in organizations, proactively preventing wastefulness.
Understanding its significant responsibilities, the SAV has, over the years, adhered closely to the Party's directives and State policies to develop and implement scientific plans effectively. Particularly, in recent years, as a member of the Central Steering Committee on Preventing Corruption, Wastefulness and Negativity, the SAV has continuously innovated its audit activities and intensified efforts to combat wastefulness through its operations.
Additionally, the State Audit Law and other laws clearly define audit subjects, types, and the authority and responsibilities of the SAV. The Law on Thrift Practices and Anti-Wastefulness stipulates: “Within its scope of duties and powers, SAV is responsible for auditing to prevent, detect, and address violations in thrift practices and anti-wastefulness.”
These legal foundations empower the SAV to assess, confirm, conclude, and recommend actions to address violations of thrift practices and wastefulness in managing public finances and assets.
To operationalize these constitutional and legal provisions, SAV’s audit standards outline its goals as examining and evaluating the economy, efficiency, and effectiveness of public finance and asset management. By providing recommendations, the SAV contributes significantly to enhancing transparency and accountability in organizations, proactively preventing wastefulness.
Understanding its significant responsibilities, the SAV has, over the years, adhered closely to the Party's directives and State policies to develop and implement scientific plans effectively. Particularly, in recent years, as a member of the Central Steering Committee on Preventing Corruption, Wastefulness and Negativity, the SAV has continuously innovated its audit activities and intensified efforts to combat wastefulness through its operations.
Audit outcomes contribute to wastefulness prevention
SAV has actively been supporting the Party, government, and citizens in combating corruption, wastefulness, and negativity through its audits. This commitment is evident in the SAV's focus on major audit themes related to state budget management, areas prone to corruption, and issues of public and electoral interest.
Each year, the SAV conducts approximately 250 audits, uncovering inefficiencies and wastefulness in resource management. For example, regarding recurrent expenditures, SAV has highlighted delayed, fragmented, unrealistic budget allocations, resulting in unused budgets and the cancellation of estimates, over-allocations; Regarding investment spending, funds have been allocated to illegible projects or those not included in the mid-term public investment plans, exceeding needs or implementation capacity, leading to low disbursement rates or project delays, undermining investment effectiveness; Regarding asset use and management, SAV has found instances where organizations either fail to fully utilize allocated land or use it inefficiently or for unauthorized purposes, or allow it to be encroached upon or disputed, etc.
Through its findings, SAV has recommended financial adjustments, i.e to increase revenue and reduce State budget expenditures by tens of trillions Dong annually. It has also proposed accountability assessments for organizations and individuals involved and referred numerous cases to competent authorities for further investigation and resolution. These measures have helped rectify issues, create deterrents, and prevent more serious violations.
Moreover, SAV annually provides reports and recommendations to the National Assembly on State budget estimates, central budget allocation plans, and key national investment projects. Examples include the high-speed North-South railway, Long Thanh International Airport, Ring Roads 3 and 4 in Hanoi and Ho Chi Minh City, and the Chau Doc-Can Tho-Soc Trang and Khanh Hoa-Buon Me Thuot expressways. These recommendations aim to achieve maximum cost savings while meeting project goals.
Through its audits, the SAV has identified numerous gaps in mechanisms, policies, and laws, as well as barriers that hinder sustainable economic development. Its recommendations to policymakers have helped close these loopholes and create a more favorable legal environment for efficient public resource management.
Each year, the SAV conducts approximately 250 audits, uncovering inefficiencies and wastefulness in resource management. For example, regarding recurrent expenditures, SAV has highlighted delayed, fragmented, unrealistic budget allocations, resulting in unused budgets and the cancellation of estimates, over-allocations; Regarding investment spending, funds have been allocated to illegible projects or those not included in the mid-term public investment plans, exceeding needs or implementation capacity, leading to low disbursement rates or project delays, undermining investment effectiveness; Regarding asset use and management, SAV has found instances where organizations either fail to fully utilize allocated land or use it inefficiently or for unauthorized purposes, or allow it to be encroached upon or disputed, etc.
Through its findings, SAV has recommended financial adjustments, i.e to increase revenue and reduce State budget expenditures by tens of trillions Dong annually. It has also proposed accountability assessments for organizations and individuals involved and referred numerous cases to competent authorities for further investigation and resolution. These measures have helped rectify issues, create deterrents, and prevent more serious violations.
Moreover, SAV annually provides reports and recommendations to the National Assembly on State budget estimates, central budget allocation plans, and key national investment projects. Examples include the high-speed North-South railway, Long Thanh International Airport, Ring Roads 3 and 4 in Hanoi and Ho Chi Minh City, and the Chau Doc-Can Tho-Soc Trang and Khanh Hoa-Buon Me Thuot expressways. These recommendations aim to achieve maximum cost savings while meeting project goals.
Through its audits, the SAV has identified numerous gaps in mechanisms, policies, and laws, as well as barriers that hinder sustainable economic development. Its recommendations to policymakers have helped close these loopholes and create a more favorable legal environment for efficient public resource management.
Increasing the quality and effectiveness of wastefulness prevention
Building on its achievements, SAV faces increasing responsibilities amid the nation’s focus on sustainable development, macroeconomic stability, efficient use of the resources as well as the urgent requirements and great concerns about the prevention and combat against corruption, wastefulness and negativity. To fulfill its roles effectively, SAV has outlined several key measures:
Firstly, adhering closely to Party directives and National Assembly resolutions to organize its audit activities effectively, focusing on adding values and improving the quality, effectiveness, and impact of its audit opinions on the management and use of public finance and assets.
Secondly, promoting the application of information technology and digital transformation in public auditing. SAV shall enhance its data collection efforts from various sources to select appropriate and high-priority audit topics. Particular attention is given to areas with high risks of corruption, wastefulness, and negativity, as well as “hot” issues of public and electoral concern. This ensures the development of scientific, targeted, and focused audit plans. Based on these audits, SAV shall promptly identifie shortcomings in mechanisms, policies, and laws, as well as barriers hindering economic development. It then provides recommendations to the Party and the State for systemic legal improvements, contributing to better resource management and wastefulness prevention.
Thirdly, enhancing audit activity quality and providing reliable information. SAV aims to offer timely, trustworthy information to support the Central Party, National Assembly, and Government in their policy-making and oversight. It shall prioritize performance and thematic audits, with a focus on high-risk areas like natural resources, land use, procurement, and infrastructure projects. It also emphasizes providing quality opinions on budget estimates, budget allocation plans, and investment decisions for significant national projects.
Fouthly, increasing public disclosure of audit results: SAV shall publicize its audit findings, especially regarding resource loss and waste and the accountability of related organizations and individuals. This transparency exerts pressure and creates widespread societal impacts, encouraging public participation in monitoring the management and use of public finance and assets. These efforts contribute actively to the fight against corruption and wastefulness.
Fifthly, focusing on training and capacity building. SAV shall emphasize the professional development of auditors, enhancing their skills, political bravery and professional ethical qualities. It shall strengthen internal checks and controls over audit activities and strictly handle cases of ethical violations to maintain SAV’s credibility. SAV shall also regularly update and refine its professional framework, particularly audit standards, processes, and guidelines, to continuously improve its operations, especially in addressing wastefulness.
