According to the State Audit Office of Vietnam (SAV)’s Report, as of December 31, 2018, at the Vietnam Development Bank (VDB), the bad debt amount was more than 46 trillion dong, while the risk provisioning was only nearly 6 trillion dong, equal to 12.5 percent of the total bad debt. There were potential risks in the organisation of operation.
At the 8th Session of the National Assembly XIV, Auditor general Ho Duc Phoc presented the working report in 2019 of SAV.
The report said that the audit plan in 2019 conducted 209 audits, organised into 227 audit teams. As of September 30, 2019, the whole sector has deployed 214 audit teams as planned, ending the examination of 147 audit teams, issuing 122 audit reports.
By October 31, 2019, the whole industry would complete all audits as planned and issue 100 percent of audit reports by December 31, 2019.
The total result of financial handling until September 30, 2019, was nearly 62 trillion dong, of which petitions increased to 6.2 trillion dong, reducing spending by roughly 13 trillion dong, and other remedies were nearly 43 trillion dong.
Also, SAV proposed to amend, supplement or cancel, replace 36 documents (four circulars, four resolutions, 10 decisions, and 18 other materials) to close the gaps in mechanism and organisation and organise the implementation of State regulations to avoid losses and waste. SAV proposed to handle responsibilities following the law for many collectives and individuals.
The report said that through auditing, timely detected and proposed to rectify many shortcomings, limitations in the management, administration, and use of public finance and public assets of ministries, branches, localities and audited units.
In particular, notably, the audit of the implementation of Resolution No. 42 of a number of credit institutions had shown that the ratio of the number of files processed under Resolution 42 was still low, the measures to handle under Resolution 42 included: six measures mainly implemented only in the form of seizing collateral and selling debts at market prices, other types not yet applied.
The report said that the VDB audit showed that VDB’s credit activity in the past time was facing many difficulties, resulting in a negative revenue and expenditure difference of VDB in 2018 of over 866 billion dong. The accumulated loss to December 31, 2018 was nearly 5 trillion dong.
In particular, the report indicated that bad debt as of December 31, 2018, was over 46 trillion dong, accounting for 17.2 percent of the total debit balance. Meanwhile, the provision for risk was only nearly 6 trillion dong, equal to 12.5 percent of the total bad debt, which showed significant potential hazards in the organisation of operation.
