Vietnam, Laos step up cooperation in State audit capacity

The State Audit of Vietnam cooperated with its Lao counterpart to hold a workshop via video teleconference on April 21 to exchange practices in building its public audit system. (Photo: Vietnamplus)

The workshop took place as the two countries are celebrating the 60th founding anniversary of the bilateral ties (September 5, 1962 - 2022) and 45 years of the signing of the Treaty of Amity and Cooperation (July 18, 1977 - 2022).

Vietnamese Auditor General Tran Sy Thanh (Photo: Vietnamplus)

In his opening remarks, Vietnamese Auditor General Tran Sy Thanh said he hoped through experience-sharing activities, the two state audit offices will have greater understanding of each other and state audit system to maximize performance.

He added that the SAV stands ready to organise exchanges and professional activities to enhance capacity for both agencies and to closely cooperate with its Lao counterpart to implement the agreement on the cooperation between the Governments of Vietnam and Laos.

During the event, the SAV delivered reports on the public audit system and its organisational structure, which provided the State Audit Organisation of Laos (SAL) with a useful source of reference as it revises its law on audit and restructuring.

State Auditor General of Laos Malaithong Kommasith, for his part, thanked the SAV for hosting such a practical event, providing an opportunity for the SAL to learn from other’s practices. 

He also spoke highly of the SAV’s assistance over recent years, saying the two sides have a special relationship, indicative of the strong ties between Vietnam and Laos.

The State Audit of Vietnam (SAV) was established based on a decree No.70/CP on July 11, 1994. The SAV is an independent body that has a responsibility to report its audit results to the government, national assembly, and standing committee. The SAV is an agency with the executive that monitors legal compliance and prepares financial reports. The law on SAV was approved by the national assembly on May 20, 2005. The law rules on the formation of SAV and the appointment of auditor general by parliament. After the law was put into effect January 1, 2006, the SAV became independent legal entity from the government.

Constitutional Position

The SAV was set up by the legislative body, responsible to the prime minister, that decides the allocation of annual budget to the financial independent SAV. The chairman of SAV or auditor general is selected by the national assembly based on a proposal from the standing committee in consultation with the prime minister. The tenure of an auditor general is 7 years and can be reelected a maximum of two times. The criteria of auditor general are determined by the standing committee to the national assembly. The auditor general has the right to have legal protection in doing their job. The position of auditor general is equal to the chairpersons of committees in the national assembly and at the same level with ministries. The deputy auditor general is an assistant responsible to auditor general in supervising certain areas of audit. Their appointment and dismissal are decided by the standing committee of the national assembly based on a proposal from the auditor general.

Agencies that are subject to audits by SAV include the central government, provincial administrations and regencies, and non-governmental institutions funded by government. Also included in the audits are banks partly owned by the government, independent bodies funded by the government, and entities owned and managed by the government. The income of the government can also come under audit, as can agents and institutions specially licensed by the government to manage the public resources. Also covered are aids or grants from foreign governments, institutions that manage privatizations, the environment, pollution supervision, and telecommunications. SAV has the authority to ask for all data needed for audit, and the right to seal, search and confiscate documents, and to undertake all things necessary to conduct thorough audits./.