Enhance the role of state audit in attracting FDI

After 33 years of attracting foreign direct investment (FDI) into Vietnam, besides the positive aspects, FDI still has negative issues. It is still common for FDI enterprises to declare and report losses for many reasons, but especially the behavior of “transfer pricing” must be mentioned.

After 33 years of attracting foreign direct investment (FDI) into Vietnam, besides the positive aspects, FDI still has negative issues.

It is still common for FDI enterprises to declare and report losses for many reasons, but especially the behavior of “transfer pricing” must be mentioned.

The transfer pricing activities of FDI have caused the budget to lose thousands of billion dong over the years. The scale of these budget revenues is also not small when FDI accounts for 20% of GDP, about 25% of social capital investment.

Therefore, the participation of the State Audit in auditing transfer pricing activities is necessary. Independent anti-shifting thematic audits will assess the effectiveness of the policies of the government.

And, the joint venture enterprises with the State’s investment contribution are the auditing objects of the State Audit. Strengthening the responsibility of the independent auditor in auditing the enterprise's financial statements when there are signs of transfer pricing./.

VNA

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