The State Audit Office of Vietnam
Performance Audit, initiated in developed nations during the late 1960s of the 20th Century, has emerged as a critical instrument for evaluating the economy, effectiveness, and efficiency of public programs and policies. Driven by the imperative to uphold transparency, accountability, and optimal utilisation of public funds, performance audit has gained widespread adoption and now constitutes an integral component of public audit systems globally. In alignment with this trajectory, after two decades of foundation and development, the State Audit Office of Vietnam (SAV) established the Performance Audit Department in 2014. This Department assumed the responsibility of conducting the initial independent performance audits within SAV. The subsequent introduction of Environmental and Information Technology audits signified a significant expansion of audit scope, thereby responding to the evolving demands arising from the digital economy and the necessity for environmental and resource protection.
As 2024 marks the 30th anniversary of SAV’s establishment and 10 years of performance audit's implementation, SAV conducts a comprehensive review of achievements, an analysis of existing challenges and opportunities, and the formulation of strategic solutions to augment the role of performance auditing in the contemporary landscape. In an era characterised by accelerated globalisation and digitalisation, performance audit transcends its traditional function of public finance oversight, contributing substantively to the promotion of effective public governance and the enhancement of SAV’s regional and international standing.
Practical experiences and achievements in performance audit at SAV
In recent years, SAV has made notable progress in implementing performance audits, evidenced by advancements in legal framework development, auditor capacity building, audit execution, and the expansion of audit influence.
The development of performance audit standards and guidelines
A key achievement has been the establishment of a comprehensive system of performance audit standards and guidelines. In 2016, SAV promulgated State Audit Standards on Performance Audits, integrated within the broader State Audit Standards System, aligning with the International Standards of Supreme Audit Institutions (ISSAI) issued by the International Organisation of Supreme Audit Institutions (INTOSAI). The accompanying Performance Audit Guide, supplemented by a detailed suite of sample documents, provides auditors with clear, consistent, and specific instructions across all audit stages, from preliminary surveys and information gathering to audit planning, execution, report preparation, and the monitoring of audit conclusion and recommendation implementation.
The enhancement of performance audit capacity
In parallel with the refinement of the legal framework, SAV has prioritised the training and capacity building for auditors, particularly through collaboration with international organisations, most notably the Canadian Audit and Accountability Foundation (CAAF). Since 2008, a series of specialised training programs on performance audit have been conducted, equipping auditors with advanced auditing methodologies, updated international best practices, and enhanced analytical and evaluative skills.
Between 2012 and 2017, CAAF supported SAV in the development of its performance audit organisational structure, policy formulation, legal framework development, and the creation of audit guidance. This partnership also facilitated capacity building through short-term and long-term training programs, audit workshops, and collaborative pilot audits. From 2018 to 2023, the two sides focused on strengthening training coordination in key auditing areas, including those related to the United Nations Sustainable Development Goals (SDGs), gender equality, environmental protection, climate change, resource management, and information technology. Additionally, CAAF provided SAV with access to its online database of audit courses and resources.
The implementation and impact of performance audits
SAV has significantly expanded the scope of its performance audit, with a marked increase in environmental and information technology audits. Over the past several years, more than 100 performance audits have been conducted, demonstrating consistent year-on-year growth. Commencing with 02 pilot audits in 2014, representing roughly 1% of SAV's total audits, performance audit’s number rose to 4% (equivalent to 02 audits) in 2015 and further increased to about 23% of total audit tasks by 2023. Performance audit has now become a regular activity for both specialised departments and regional state audit offices, incorporating innovative methodologies and audit procedures. The past decade has demonstrated that these audits have effectively identified operational and organisational inefficiencies across diverse sectors, including highly specialised domains. They provide comprehensive assessments of strengths and weaknesses, analyse underlying causes, and evaluate impacts, thereby facilitating the formulation of evidence-based conclusions and recommendations on critical issues that are of high public concern. This has fostered high consensus among audited entities, significantly contributing to improved efficiency and effectiveness in public financial and asset management, increased accountability and transparency within state management agencies, and greater social benefits. Furthermore, performance audit has strengthened public confidence in state policies and enhanced SAV’s institutional reputation, giving assistance in meeting the expectations of the National Assembly and the general public.
The principal findings of performance audit reports are disseminated through various mass media channels and publicly presented during press conferences held in conjunction with SAV’s Annual Audit Results Report. Moreover, SAV actively shares its practical experiences, strategic directions, and proposed advancement solutions in the field of performance audit through presentations at national and international forums, conferences, and seminars spanning multiple disciplines. This engagement expresses SAV’s commitment to contributing to the identification of effective solutions to national and regional governance challenges in the contemporary context.
On this note, following more than a decade of development, SAV’s performance auditing framework has attained significant maturity. This progress is characterised by the establishment of a relatively comprehensive and well-integrated system of legal documents and guidelines, alongside a highly trained workforce of auditors who have developed well-rounded expertise, heightened professional awareness, and extensive practical experience. As a result, SAV’s performance auditing practices have evolved with increasing sophistication, enhancing their effectiveness in fulfilling mandated responsibilities. Performance audit has established itself as an indispensable audit modality, complementing financial and compliance audits while serving as a crucial mechanism for strengthening SAV’s national and international standing. This advancement strengthens SAV’s reputation not only within Vietnam but also among Supreme Audit Institutions worldwide, particularly within INTOSAI.
Strategies for enhancing the role of performance audit within SAV in contemporary contexts
To further amplify the impact of performance audit, SAV has delineated key strategic initiatives aimed at augmenting audit quality in the forthcoming years.
SAV Development Strategy to 2030
A central priority is the rigorous implementation of the SAV Development Strategy towards 2030. This strategy, particularly for the 2021 - 2030 period, articulates the goal of “strengthening performance audits, thematic audits, information technology audits, and environmental audits to achieve a proportion of approximately 30% to 40% of the annual audit portfolio”. Complementarily, the Strategy to improve SAV’s audit quality to 2030 emphasises the importance of “developing and diversifying audit content, progressively increasing the proportion of performance audits, thematic audits, information technology audits, and environmental audits, while integrating emerging audit domains. The goal is to achieve a proportion of these audits to relatively 30% by 2025 and to 40% or higher of the total annual audit portfolio by 2030”.
To operationalise these stated strategic goals, SAV has formulated a medium-term audit plan for the period 2025-2027. This plan explicitly outlines the implementation of performance audits, thematic audits, environmental audits, and IT audits, targeting a minimum of 33% of the total audit volume in 2026 and 35% in 2027. This includes the annual conduct of 3 to 5 large-scale and comprehensive audit topics involving numerous participating entities."
To translate these strategic objectives into practice, SAV has formulated a medium-term audit plan for 2025-2027, which provides a clear roadmap for the execution of performance audits, thematic audits, environmental audits, and IT audits. This plan sets its target on ensuring that these audits account for a minimum of 33% of the total audit volume in 2026 and 35% in 2027. This also includes the annual implementation of three to five large-scale and comprehensive audit topics, involving multiple participating entities.
Vietnam’s commitment to implementing the United Nations Sustainable Development Goals (SDGs) and the role of SAV
SAV prioritises auditing programs and projects aligned with the United Nations Sustainable Development Goals (SDGs). Following Viet Nam’s issuance of the “National Action Plan for the Implementation of the 2030 Agenda for Sustainable Development” in 2017, and in its capacity as the Chair of the Asian Organization of Supreme Audit Institutions (ASOSAI) from 2018 to 2021, as well as an active member of INTOSAI, SAV has consistently been playing a pivotal role in supporting the Government’s efforts to achieve SDGs. Specifically, SAV serves as the focal point for studying INTOSAI guidelines on SDG-related audits, conducting audits of the Government’s preparatory processes, implementation progress, monitoring mechanisms, and reporting frameworks. Accordingly, SAV places particular emphasis on reviewing and assessing the reliability of information presented in progress reports on the implementation of SDGs, as produced by the Government's oversight mechanisms. SAV had, and has been, actively promoting the application of the performance audit model to evaluate the economy, efficiency, and effectiveness of programs and initiatives related to sustainable development, leveraging the framework of the 17 SDGs and 169 Sustainable Development Indicators. This is a prioritised audit area, as it extends beyond verifying financial accuracy and compliance to assessing the utilisation of public financial resources and assets, measuring programs’ outcomes, and determining whether these initiatives conform to expected SDG-related effectiveness and positive social impact. These concerns are of paramount importance to the National Assembly, the Government, and the general public.
The orientation to improve SAV’s performance auditing capacity
- Strategic and action plans will be formulated and executed to provide a structured roadmap for the progressive development and quality enhancement of SAV’s performance auditing capacity. This process will incorporate the systematic development of a highly skilled auditor workforce. Regarding the implementation of SDGs, SAV will either develop dedicated strategic plans or integrate SDG-related audit considerations into its short-term, medium-term, and long-term strategic plans, as well as annual audit plans. These measures are to ensure that SAV makes substantive contributions to national SDG achievement, while simultaneously maintaining the effectiveness and efficiency of its broader audit functions and activities in accordance with its legal mandate.
- SAV database will be completed and digital technologies will be implemented for the collection, storage, and updating of information pertaining to key audit areas and subjects within its purview to enhance the efficacy of audit topic selection, objective determination, content definition, criteria establishment, and methodological application. The development of a prospective audit topic database should prioritize issues of significant public concern and interest, including, but not limited to: land management and utilization; natural resource governance; urban and housing planning and administration; mineral resource management, extraction, and processing; Official Development Assistance (ODA) capital management and utilization; investment fund management and utilization; science and technology programs; national targeted programs for poverty alleviation, clean water provision and rural environmental sanitation; strategic programs aimed at fostering sustainable poverty reduction in socioeconomically disadvantaged districts; national key projects; and the administration of sector-specific fees and designated financial allocations across several specialized sectors, etc.
- Training programs, seminars, and workshops will be systematically organised across SAV’s units to advance the dissemination of knowledge and exchange of best practices in performance audit. Besides, SAV must strengthen cooperation with international organisations, including IDI1 and INTOSAI KSC2, to gain access to relevant documentation, facilitate human resource training, and partake in coordinated international audits. This engagement shall enable SAV to acquire knowledge, exchange best practices, and replicate successful audit outcomes.
- Efforts to disseminate and communicate performance audit findings, as well as the value propositions of performance audits, environmental audits, and information technology audits, must be intensified, ensuring that audit results and recommendations reach key stakeholders, including the National Assembly and the general public, through different media channels. This manoeuvre shall set forth the improvement of SAV’s transparency and accountability.
The evolution of SAV in general and the development of performance audit in particular have been intrinsically linked to the advancements of the Fourth Industrial Revolution, the integration of advanced technologies and information technology across institutional activities. In response to this paradigm shift, SAV is actively working to enhance its technological infrastructure and incorporate international best practices in the public audit sector, ensuring its flexible adaptive ability to the evolving landscape of digital transformation in the coming years. Through the implementation of strategic initiatives, SAV seeks to further augment its function as an essential and effective oversight instrument of the State and the Government, tasked with evaluating, monitoring, and strengthening public accountability. By reinforcing transparency and oversight mechanisms of the state budget, SAV not only assumes a pivotal position in enhancing the governance and administration of public finances and assets but also makes concerted efforts to support Viet Nam’s broader socio-economic development agenda for the 2021-2030 period./.
- INTOSAI Development Initiative.
- INTOSAI Knowledge Sharing and Knowledge Services Committee.