2001年-世界发展银行全球_Vietnam___Country_Financial_Accountability_Assessment_74页_5mb

Vietnam: Country Financial Accountability Assessment Summary

Core Content

The Country Financial Accountability Assessment (CFAA) is a comprehensive evaluation of Vietnam's financial management environment, focusing on the public and private sectors. It aims to identify risks, capacity gaps, and constraints in financial accountability and to support the development of a reform strategy.

Vietnam is undergoing significant economic reforms, adopting market economy mechanisms and integrating into the global economy. While these reforms have improved transparency and institutional capacity, challenges remain in aligning financial practices with international standards and ensuring effective oversight.

Main Points

1. Accounting, Reporting, and Control Processes in the Public Sector

• Accounting Requirements: Detailed, but inconsistent across Budget, Treasury, and Tax authorities, leading to unreliable data.
• Monitoring and Verification: The current system emphasizes mechanical verification over meaningful monitoring of budget implementation and public resource use.
• Flow of Information: There is a lack of consistency in data recording and reporting across government levels, making it difficult to assess the impact of public expenditures.
• Accountability at Sub-National Levels: Provinces and districts have autonomy in budgeting and implementation but lack adequate accountability mechanisms.
• Internal Control: Vietnam needs to adopt a modern internal control framework based on openness, competence, and ethical values, with a focus on results rather than just compliance.

2. Financial Accountability in the Public Sector

• Duplication and Overlap: The roles of the State Inspection Office, State Audit of Vietnam, and the Financial Inspection Directorate of MOF are overlapping and inefficient.
• Audit Functions: Audit reports are not publicly available, and there is a lack of emphasis on the efficiency and effectiveness of public resource use.
• Reform Strategy:
  • Streamline roles and responsibilities of oversight agencies.
  • Adopt modern auditing and inspection techniques aligned with international standards.
  • Focus on economy, efficiency, and effectiveness of operations alongside compliance.
  • Implement international public sector auditing standards.

3. Institutional Framework for Accounting and Auditing Standards

• Vietnam Accounting Association (VAA): Weak and not fulfilling its role as a professional body.
• Accounting and Auditing Standards: MOF is responsible for developing and issuing these standards, but there is no professional code of conduct for accountants.
• World Bank Support: An Institutional Development Fund (IDF) has been approved to support improvements in accounting and auditing practices.
• Reform Recommendations:
  • Strengthen the role and management capacity of VAA.
  • Harmonize accounting and auditing standards for SOEs and private enterprises.
  • Enhance the professional skills of accountants and auditors.

4. Financial Reporting and Auditing Practices in the Private Sector and SOEs

• Vietnam Accounting System (VAS): Being developed but not yet fully aligned with international standards (e.g., IAS).
• Private Sector: Financial reporting is driven by tax requirements, and full provisioning is not allowed.
• SOEs: Not subject to the same level of disclosure and independent audit as private enterprises.
• Reform Strategy:
  • Upgrade accounting and auditing practices to international standards.
  • Build capacity and skills in financial management.
  • Ensure more independent audits for SOEs.
  • Streamline audit and inspection processes.
  • Merge accounting standards for SOEs and private enterprises.
  • Expand the oversight responsibilities of the State Auditor General's Office to include internal control and performance evaluation.

5. Accountability of Boards of Directors and Management in SOEs and Private Enterprises

• Unclear Roles: The roles of the Board of Directors (Board of Management) and General Directors are not well-defined.
• Control Committee: Has a dual function (oversight and supervision), which is inconsistent with international best practices.
• Reform Strategy:
  • Subject SOEs and private enterprises to a unified legal framework for roles and responsibilities.
  • Redefine the control committee to function as an audit committee.
  • Strengthen internal control systems and enhance internal audit functions.

Key Recommendations

• Implement an Integrated Financial Management System (IFMS): To improve the timeliness, relevance, and reliability of financial data.
• Establish a Government-Wide IT Board: To oversee the development of an IT strategy and the implementation of an IFMS.
• Streamline Reporting Systems: Ensure that reports are consistent and that higher management can use them effectively.
• Improve Transparency and Accountability: Make audit reports publicly available and enhance the capacity of oversight institutions.
• Revise Laws and Regulations: Update the Budget Law, Enterprise Law, and related decrees to align with international standards.
• Enhance Professional Capacity: Develop a professional code of conduct for accountants and establish an Institute of Directors to improve skills and knowledge.

Conclusion

The CFAA highlights the need for a coordinated, comprehensive, and modern approach to financial accountability in Vietnam. It emphasizes the importance of aligning financial systems with international best practices, improving transparency, and strengthening institutional capacity. The proposed reforms should lead to more effective public and private financial management and greater accountability for the use of public funds.