INTRODUCTION Introduction on the research purpose By showing the strengths and weakness, the research shall propose main solutions to enhance the role of State Audit in managing public debt in Vietnam Research subject and research scope 1.1 Research rationale At the present, public debt tends to increase in many developing countries and it is considered as vital financial resource for covering the budget deficit as well as developing infrastructure and socioeconomic The public debt portfolio is becoming bigger and more complicated, which are very risky for the management and supervision of Public debt management agency As a result, for the public debt management, there should be very closed control tools to avoid of the possible detrimental consequences in future and to ensure for the sustainability of the finance – budget As the highest professional body that is specialized in financial inspection, the SAV was established by the National Assembly, aiming to inspect all organisations or authorities, which are using state budget, regarding the management procedure, the use of state budget as well as money and government ‘s assets As the highest professional body that is specialized in financial inspection, the State Audit was established by the National Assembly, aiming to inspect all organizations or authorities, which are using state budget, regarding the management procedure, the use of state budget as well as money and government ‘s assets The activities of State Audit help to ensure the transparency in management and in using the public debt and prevent from the arising risks, hence State Audit proposes to the authorized authorities better methods to manage and using public debt and to ensure the sustainability of State budget To identify the role of State Audit in managing the Public debt is very essential, especially in the context that there are many economic crises happening around the world due to the sovereign debt default and the role of State Audit in managing public debt has not been specified clear Therefore, in order to clarify and provide some solutions to enhance the effectiveness of the role of State Audit in managing public debt, researcher does choose the doctoral dissertation with topic: “The role of State Audit in managing public debt in Vietnam” 1.2 The research purpose Research subject: This study aiming to research the role of State Audit in managing the public debt regarding the legal, functions and duties of State Audit in public debt management In which, the researcher focus on three main parts: organize audit on public debt management; evaluate and propose solution for public debt management; and public the audit result on using and managing public debt Research scope: - Content: Roles of State Audit in managing public debt includes the identification of legal, functions and duties of State Audit in managing public debt Within the subject scope, this study focus on the roles of State Audit in managing the public debt regarding the duties of State Audit in managing the public debt: + Roles of audit in managing public debt + Roles of audit in evaluating, propose solution for managing public debt + Roles of the audit in publicizing the audit result on using and managing public debt - Geography: This research concentrates on the experience of some countries that have huge public debt, in which, the sampling is Greece - the country that has not established the clear roles of State Audit in managing public debt; United States - the country that has established clear roles of State Audit in managing public debt; China - the country that has similar political system comparing to that of Vietnam and has already established the clear roles of State Audit in managing the public debt All of these samplings are aiming to help Vietnam to get lesson learned - Time: This study aims to evaluate the practical roles of State Audit in managing the State Audit in Vietnam since 2006 until present; showing the view point, orientation, solution for establishing and enhancing the roles of State Audit in managing Vietnamese public debt until 2020 Methodology 3.1 Research process The research purpose bases on the scientific foundation of clarifying the State Audit’s role in managing public debt and bases on practical research, evaluation on the acting role of State Audit in managing public debt in Vietnam The research process approaches from theory to practice: Step 1: Research on the theory of public debt, public debt management, State Audit and its functions and duties Base on that, establish the theory framework on the roles of State Audit in managing public debt Step 2: Collect and process primary data as well as secondary data Step 3: Analyze the research result on the roles of State Audit in managing public debt in Vietnam, then summarize the strengths and weaknesses of the State Audit’s role and the causes Step 4: Base on the theoretical and practical finding, researcher proposes the solution and recommendation to establish and enhance the roles of State Audit in managing public debt in Vietnam 3.2 Research method * The dialectical materialism method, historical materialism method of Marxism-Leninism * Secondary data collecting method * Primary data collecting method * Data processing techniques Using conventional analytical techniques such as descriptive statistics in order to draw the overall picture of Vietnam's public debt, statistics, aggregated and analyzed to highlight the implementation process of public debt management and implementing the roles of SAV in managing public debt during the period 2006 to 2013 The new contribution of the research New contribution on the academic and theoretical aspects: The thesis clarified the research rationale of the roles of SAV in public debt management in Vietnam on aspects: legal aspect, functional aspect and mission aspects Therefore, the research focuses on analysis the mission of SAV In public debt management, SAV has main roles, that is conduct the audit on debt management, assess, give recommendation and publish the audit finding the the public debt’s using and managing The lesson for Vietnam will be learned through the State Audit ‘s experience in managing public debt of some countries around the world, for instance the United States - a country that has advanced management level in public debt; Greece - a country that has not good public debt management system, which leads to the current sovereign debt default; China - the country that has similar political system comparing to that of Vietnam The new proposals drawing from research finding: Based on the results of the State Audit roles in three audits on the management of public debt that the State Audit of Vietnam has done, it is analyzed according to three indicators: the results of handling errors in the management of public debt, wrong violations detected in the management of public debt and recommendation for strengthen public debt management; The research shows the existing advantages and disadvantages, identify the specific causes Deriving from the shortcomings and inadequacies, the thesis has proposed a number of measures to enhance the role of the State Audit in managing public debt in Vietnam, namely: Improving the legal position of the State Audit of public debt management; Improving the quality and effectiveness of the State Audit; Improve organization, recruitment and training of human resources; Developing infrastructure, information and communication and information technology; and enhanced integration and international cooperation on the management of public debt and provide recommendations for state audit, the State, the public debt management agency and the unit using the public debt Research Structure Apart from the Introduction and Conclusion, all other parts of the research including the author’s commitment, appendix, references, research body are divided into chapters: Chapter I: Overview of the research Chapter II: Methodology regarding the State Audit ‘s roles in managing public debt Chapter III: Situational Analysis of the roles of State Audit in managing public debt in Vietnam Chapter IV: The author’s view, orientation and solution to enhance the roles of State Audit in managing public debt in Vietnam CHAPTER I: OVERVIEW OF THE RESEARCH 1.1 Overview on existing researches that relating to the thesis Look at the role of an organization including its position, function and duties in a field, progress, activities Thus, the correct approach in investigating the role of state audit in public debt management is on the legal position perspective, functions and duties of the Audit of Public Debt Management Recently, there has been no study on the role of state audit in public debt management follows this direction Especially there are no study has given a full role in the management of public debt Audit nor assess the role of the State Audit page or factors affecting the role of state audit in public debt management to achieve the goal of cost and risk, meet other debt management criteria of the Government" Therefore, the authors found that this is the space to study, through that approach, contributes a perspective, giving an opinion in order to establish and enhance the role of the State Audit of Public Debt Management, thereby, contribute to raising the efficiency of public debt management, ensuring sustainability of national financial security - To meet the financial needs of the Government and contribute to improve the effectiveness of management and macroeconomics policy making in each period CHAPTER II: METHODOLOGY ON THE ENHANCEMENT OF STATE AUDIT IN PUBLIC DEBT MANAGEMENT 2.1.2.2 The purpose of public debt management - To ensure the debt, maintain the reasonable debt portfolio in each period - To detect the possible risks, thereby prevent and deal with frauds in order to ensure the financial security and national currency 2.1.2.3 The guideline for public debt management Firstly, clearly define the roles and responsibilities of organisations in managing public debt 2.1 Public debt management 2.1.1 Public debt Secondly, to ensure the publicity and transparency in public debt management 2.1.1.1 Public debt concept Public debt includes: government debt and debt from other entities (enterprises, agencies, organizations, etc), in which the payment are guaranteed by government, and debts from local authorities Thirdly, to ensure the public debt within limit Fourthly, to ensure the effectiveness of loans and loans using 2.1.2.4 The content of public debt management 2.1.1.2 Public debt classification 2.1.1.3 Roles of public debt For covering the Government ‘s budget deficit: The most important role of public debt is used to cover the Government’s budget overspending For investment of the country development: For developing countries, in order to develop the infrastructure and science & technology, the loan plays important role, it helps to save time for achieving the development goals of leastdeveloped countries as well as developing countries who wish to become developed countries Stimulate economic growth, improve the investment environment: The debt increases the attractiveness of the domestic investment environment, attracts and expands the investment activities, create the trust of the country in the world 2.1.2 Public debt management 2.1.2.1 Definition of public debt management The practical public debt management has been drawn from the experience of many countries According to IMF, this is the "The process of establishing and implementing a strategy of national debt in order to build up a capital as required, - To set targets for public debt management and the coordination among the policies: - To develop strategies for debt management and risk management framework: - Develop transparency and responsibility in public debt management 2.2 State Audit in public debt management 2.2.1 Overview on the State Audit 2.2.2 The propose of State Audit in public debt management - To detect the possible risks, thereby prevent and deal with frauds in order to ensure the financial security and national currency - To give recommendation for the Government to complete policies regarding public debt management and enhance the effectiveness of using public debt - To ensure the transparency in public debt management - Góp phần minh bạch hóa cơng tác quản lý nợ cơng 2.2.3 The legal position of State Audit in public debt management State Audit is an authority outside the public debt management system, SAV will be empowered independently in determining program audit plan and apply measures to provide professional services in the process of making audit decisions 2.2.4 State Audit function in public debt management - First, verification function (confirmation); - Second, expression function (recommendation) Based on the basic functions of the audit, as the highest financial control authority, State Audit shall examine, supervise the resources and public assets of the country, 2.2.5 State Audit’s role in public debt management 2.2.5.1 To conduct the audit on public debt With this role, the State Audit conducts audits of public debt of the State Audit to check and supervise the whole process of the management, mobilization, allocation and use of loans under specified standards There are stages in organizing the audit of public debt: prepare for the audit, conduct the audits and prepare the report Prepare for the audit Additionally, when conducting audit of public debt management, SAV will detect the flaw in the law adjustment mechanism, and it is also an important element in helping to improve the public debt management institutions By this role, the State Audit reviews and gives comments to the National Assembly, the Government and the State management agencies to adjust and overcome the shortcomings in policies, laws, and forced the authorized agencies to treat and to punish the violations of the laws and policies of the audited units 2.2.5.3 To publicize the audit results of the management and use of public debt State Audit Agency plays a key role in ensuring that the public debt can be understand logically, honest and trustworthy by all stakeholders This is the role to publicize the results of the audit on the management and use of public debt In addition, the State Audit’s role of publicize the audit findings on public debt management and using is very useful to investors as well as international organizations like the IMF, World Bank and other creditors in giving out their investment decisions SAV plays an important role in creating a better reporting system for public debt Performing this role helps publicizing information about public debt and public administration, improving transparency in the operations and improve the accountability of the Government 2.2.7 Criteria to assess the role of State Audit in managing public debt Conduct the audit Prepare audit report In Vietnam today, SAV has not built its own processes to audit the public debt, but depend on each specific audit procedures to apply appropriate specialty 2.2.5.2 To assess, give recommendation for public debt management Through the audit of public debt for debt management agencies, units and institutions of debt, SAV gives opinion on the accuracy and honesty for public debt management, to confirm for the integrity availability of information on reported public debt and state audit also examined, monitoring the management and use of public debt, pointing out the violation of the principles of legal compliance, efficiency and savings in the management and use of public debt In some cases, the separation of management activities compared with the provisions of law shall also be required to repair, remedy, compensatory damages even be punished as prescribed by law The result after handling frauds in the management of public debt can be understood as the result of handling the financial audit of public debt, including all revenues increases, expense decreases, amounts paid out for recovering state budget while conducting the audit of public debt Frauds detected in the management of public debt can be understood as the result of or the audit findings of the case of violation, the acts of corruption, waste discovered during the audit Recommendation for reorganizing the public debt management can be understood as a result of the amendment proposals, supplement and improve the public debt policy, the administration documents, uncompleted and inappropriated public debt management, in which SAV discovered through auditing activities 2.2.7 Elements affecting the roles of State AUdit in public debt management Criteria 2006 Public debt 404.556 558.155 657.940 877.753 1.124.638 1.392.020 1.641.296 1.942.098 Government debt 336.778 441.025 501.811 696.365 882.750 1.092.761 1.273.940 1.515.968 a) Foreign 220.863 286.710 312.001 411.117 527.403 666.372 726.314 763.198 b) Domestic 115.915 154.315 189.810 285.248 355.347 426.389 547.626 752.769 - Legal environment; Nợ BLCP 47.553 94.510 137.732 162.863 225.513 288.375 343.237 396.113 - Economic environment; a) Foreign 16.556 31.999 47.840 68.446 89.108 b) Domestic 30.997 62.511 89.892 94.417 136.405 171.641 192.651 207.576 Nợ CQĐP 20.225 22.620 18.397 18.525 16.375 10.884 24.120 30.016 Public debt/GDP (%) 41,5 48,8 44,5 52,9 56,8 54,9 55,6 54,2 - Government debt/GDP (%) 34,6 38,6 34,0 42,0 44,6 43,1 43,2 42,3 - Nợ CPBL/GDP (%) 4,9 8,3 9,3 9,8 11,4 11,4 11,6 11 - Nợ CQĐP/GDP (%) 2,1 2,0 1,2 1,1 0,8 0,4 0,8 0,84 2.2.7.1 Intrinsic elements from State Audit - The quality of audit activities; - Human Resources; - Infrastructure 2.2.7.2 Extrinsic elements - Social environment 2.3 International experience of the role of the State Audit of Public Debt Management 2.3.1 Experience from Greece 2.3.2 Experience from United States 2.3.3 Experience from China 2.3.4 Lesson learned Firstly, each country should clearly define the role of the state audit agency in public debt management by regulating the role of the State Audit in the Constitution, the law and the system of regulatory documents Secondly, State Audit must have a organized structure and build a team of experienced and qualified auditors Thirdly, public debt management activities are high international demand area, in which State Audit should strengthen international integration through publicizing information on operational audit of public debt, exchange positive experience and methods of implementation 2007 2008 2009 2010 2011 2012 2013 116.734 150.586 188.537 The picture above shows that public debt in Vietnam is increasing Causes may include: (1) The budget deficit, (2) The public investments are large and flattened, (3) Low efficiency of pubic debt using 3.1.2 Public Debt Management in Vietnam from 2009 until present CHAPTER 3: ANALYSIS ON THE CURRENT ROLES OF STATE AUDIT IN PUBLIC DEBT MANAGEMENT IN VIETNAM 3.1 Public debt management in Vietnam 3.1.1 Vietnamese public debt during recent years 3.1.2.1 Legal framework Since 2009, there is a huge number of guideline document on the Law of Public debt and the document system on public debt management is quite completed However, the legal framework for public debt management still exist some shortcomings, namely: - The roles, functions and duties of State Audit in managing public debt are not clearly defined in the Constitution, the Law of Public debt management, State budget Law, Law on State Audit and the guidelines for public debt management 10 cause difficulties in performing the audit of public debt management in order to confirm and give transparent information on public debt, as well as improve the efficiency of public debt management - The concept of debt as well as debt management are still confusing and inconsistent with international standards, thus it is difficult to classify and aggregate debt - The improvement degree of the legal framework between domestic and international debt managements also has big gaps, which leads to the difficulties in management debt portfolio 3.3 Roles of State Audit in public debt management The management of the public debt of the government has come close to the international best practices as defined goals, principles of management, in addition to the user to achieve the objectives of capital mobilization and management efficiency stop But during this period, public debt management has exposed some issues follows: Since the establishment of the Law on State Audit in 2006, the state audit function has been defined relatively completed and comprehensive "The roles of State Audit is conducting audit on financial statements, compliance audit, performance audit for all agencies and organizations that managing and using budget funds and state property” Apart from the financial audits roles, the State Audit of many countries in the world also conduct audits to examine and assess the observance of laws and implementation of audit activity to assess the economic and effectiveness in the operation of the units and organizations that use state budget and public property including public debt management Thus, with the new regulations, SAV absolutely has completed audit functions of auditing the manage and use of public debt This is the inherent function of the SAV and also the difference among SAV, independent audit and internal audit; in the practice of Vietnam, there is not any government agencies that performs this function before the establishment of State Audit - In fact, the assignment and personnel allocation in public debt management are overlapping and unfocused 3.4 The implementation result in performing state audit role in public debt management in Vietnam recently - The organizational structure, functions and duties of the Debt Management and external financial Agency need further improvement to formed a professional debt management system So far, the SAV completely has legal basis to conduct an audit of public debt as well as activities related to public debt However, the role of state audit in public debt management has not been the specified clearly in any legislation The legislation was not specified clearly the audit activities of the debt management agency is assigned responsibility as the world practice suggests that only specified audit programs and projects using loans (assigned to the audit or independent auditor) Besides, the document also does not prescribe the specific responsibility for the SAV for public debt This is one of the biggest drawbacks of the role of the State Audit audited the deployment of public debt 3.1.2.2 Organizing the public debt management - There is not any independent and objective agency to supervise the management and using public debt One of the other requirements of transparency and accountability in managing public debt that have not been organized in Vietnam is that debt management activities should be audited annually by State Audit 3.2 Legal position of State Audit in public debt management So far, the legislation document did mention the position of the State Audit, that is specialized bodies operate independently but the legal position of the SAV in public debt management has yet to be clearly defined especially the Law on State Budget , the State Audit Law and the Law on public Debt Management Can understand indirectly, in the management of public debt position of Audit is an independent professional body, not on the public debt management system The text was not specified audit activities of the debt management agency is assigned responsibility as the world practice suggests that only specified audit programs and projects using loans (assigned to the audit or independent auditor) 11 However, since the establishment, state audit has paid attention to the role of state audit in public debt management when settling audit departments of programs and projects related to public debt and paid attention to assess the public debt management to conduct an audit of the total annual budget settlement So far, the SAV has not conducted a comprehensive audit of public debt management about that new content to conduct audits related to public debt management audits in total annual budget and final settlement program and projects using loans by performing audit of investment projects, the national target programs with content related to public debt Summary of findings of audits related to the public debt include: auditing total 2013 state budget finalization and audit the management and use of government bonds and the audit period 200612 2012 Reduction Program Light and adaptation to climate change in 2013 that use of foreign loans Thereby partially visible implementation results of the State Audit role in public debt management through criteria: Result processing irregularities in public debt management, irregularities detected in the management of public debt and recommendations reorganizing public debt management 3.4.1 Results on handling frauds in the field of public debt management 3.4.2 Frauds detecting from public debt management 3.4.3 Recommendation on reorganizing public debt management 3.5 Evaluate the practical roles of State Audit in public debt management 3.5.1 Achievement In recent years, the State Audit perform its role in the management of public debt, as a prerequisite to the establishment of the State Audit role in managing public debt through legislation .We can see the results achieved in the following several aspects: Firstly, State Audit has paid attention to the audit of public debt since its establishment Secondly, State Audit has paid attention to the assessment of public debt management through audit and finalize State Budget, Thirdly, through the the content audit of public debt, the State Audit did give some cautionary comments for debt situation of local budgets from which attract the attention of the National Assembly, the Government, the authorities and the public Fourthly, in recent years, the status of State Audit has been enhancing 3.5.2 The limitation and weakness Despite the results achieved in the implementation of state audit role in public debt management, there is some limitation that State Audit should pay attention to in order to establish and enhance its roles in public debt management following current practices There are some weakness and limitations in performing the role of State Audit in public debt management that should be found, for example: First, until now, after nearly 20 years of operation, the roles of State Audit has not been defined clearly in any legislation or public debt management policy 13 Second, the audit process, despite the integration of assessment of public debt but the level is still limited, the quality of the audit and audit progress also has distance not less than required and can not be considered that is the role of the State Audit performed in public debt management Third, the assessment of the SAV is not deep and not much help the public debt management agency Fourthly, the SAV has not given macro recommendations to help governmental agencies to complete management of debt Fifth, there is no effective audit, many findings have not been proposed for handling resolutely Finally, addressing the relationship between scaling, audit quality and maintain ethical requirements, quality officers and auditors is always a big challenge 3.6 The causes for limitation These shortcomings and limitations mentioned above is due to many reasons, both objective and subjective But can list some basic causes of the following: First, the legal framework and the provisions on public debt are not clearly defined the roles and responsibilities of the state audit agency in public debt management, as well as regulations of the agencies that are responsible for debt management in providing information related to debt management, shall report periodically to the Audit irregularly on issues of public debt management Second, it is starting from the intrinsic weaknesses of the SAV So far, the organizational structure of state audit is still in process of completion and it is unfinished Third, the awareness of the levels, sectors, public and society in general about the legal status, functions, tasks and role of state audit in public debt management has not fully and comprehensively, even sometimes, in some places even misleading Fourth, many problems have has cause the effective and efficient operation of SAV is in the process of finishing as the legal system of economic and financial management, legal system of debt management drain; Fifth, functions, responsibilities and coordination mechanisms between the public debt management agency and inspection agencies, is inefficient, sometimes overlapping, 14 CHAPTER 4: AUTHOR’S VIEW POINT, ORIENTATION AND RECOMMENDATION TO ENHANCE THE ROLES OF STATE AUDIT IN PUBLIC DEBT MANAGEMENT IN VIETNAM Secondly, the role of SAV in public debt management must be overall determinative in the relationship of the state budget finance auditing Third, the audit report of public debt must be overall determinative in the relationship of the national resources management Fourth, building staffs and public debt audit process 4.1 Author’s view point and orientation to enhance the roles of state audit in public debt management 4.1.1 View point 4.2 Solutions to enhance the role of SAV in Public Debt Management 4.2.1 Solutions to enhance the legal position SAV in Public Debt Management 4.1.1.1 Enhancing the role of SAV in public debt management is enhancing the role of supervision in public debt management activities 4.2.1.1 Enhancing social comprehension about the position and role of SAV inpublic debt management 4.1.1.2 Enhancing the role of SAVin public debt management is conformity with the guidelines and policies of the Party, Law of State Audit and other laws in public debtmanagement First, SAV should develop and implement coordination regulations between law enforcement agencies, legislature and inspection agencies; finish building the legal documents, which adjust this relationships in public debt auditing activities; 4.1.1.3 Enhancing the role of SAV in public debt management is conformity with international practices of establishing legal position and ensuring the principle of independence ofSAV activity 4.1.1.4 Enhancing the role of the SAV in public debt management on the basis of raising relationship between audit objects and audit objectiveof SAV 4.1.2 Orientations 4.1.2.1 SAV development orientations Increasing role of SAV in public debt management must be done according to specific orientationsin order to ensure the activities of SAV develop in the right way, achieving the objectives and confirmed SAV's role in the system of inspection, supervision the economy This orientations must be based on specific principles,matching with the current activities of SAV sand the development trend of SAV in the future 4.1.2.2 Orientation to enhancing the position, the role of SAVinpublic debt management With the goal of identifying core values for developing Vietnam State Audit is "Transparency-Quality-Efficiency and constantly add value", enhancing the position and role SAV in public debt management, in period of now to 2020, SAVhas to determine for themselves the following orientations: One is the role of SAV in public debt management must be overall determinative in the relationship of the public finances Secondly, SAV should finish building the legal basis for the organization and operation of information propagation and dissemination of the State Audit Law, the role of state audit in public debt management and other activities of the State Audit Thirdly, the state audit should actively enhance the quality of information and communication, including the renovation and improve the quality of the content and form of the existing products, and established more Times Review Accounting and division responsible for information and communication; Fourth, the state audit should regularly talk with the audited units Through this seminar in order to propagate and popularize these management practices, good governance; make recommendations on shortcomings and limitations that unit might encounter Thereby, contribute to enhancing the role of the State Audit in public debt management 4.2.1.2 Improving thelegal status, powers, responsibilities and roles ofthe State Audit in public debt management To propose to add to the Law of State Audit some certain provisions on legal position, duties and powers of the state audit agency regarding the public debt management 4.2.2 Groupof solutionsimproving the qualityand effectiveness of theState Audit 4.2.2.1 Improving Audit capability 15 16 To improve the audit capability of State Audit in order to ensure the inspection and supervision of the Government in public debt management, to contribute to the thrift, to avoid the corruption, loss and waste, to detect and prevent the law violations, to improve the effectiveness in managing and using public debt To combine the financial audit, compliance audit and operational audit, in which to prioritize the financial audit and compliance audit in order to enhance the public debt audit for checking and evaluating the economic, effectiveness and efficiency in state budget management, money and state assets, especially in managing and using public debt 4.2.2.2 To improve audit effectiveness Step by step improving the legal validity and value of audit report, to enhance the thematic audit regarding the public debt management, the pressing issues that take much attention of the society, even the important issues of the country, in order to provide enough information to the citizen, press as well as public regarding the public debt management by publishing audit result and result on the conclusion, recommendation of state audit 4.2.2.3 Enhancing the audit result Constantly improve audit quality, reduced audit time, economically and effectively using resources in the organization and operation of the State Audit; innovating audit organizations, especially organizational grouped audit, the audit groups; improve the quality of audit survey inplanning and analysis, synthesis the results of the audit 4.2.3 Group of solutions to improve organizational system , recruitment and personnel training 4.2.3.1 Group of solution to improve the organizational system SAV should continue to develop and perfect the organizational system of the State Audit following unifiedcentralized management model Striveto 2020, it is expected that the organizational structure of the State Audit will be basically completed 4.2.3.2 Group of solutions to improve the quality of recruitment and personnel training Continually build up the personnel that have consistent political bravery, moral and healthy lifestyle without corruption and wasting when doing the audit; those personnel must have innovative and creative thinking, having good knowledge and experience that fit to their position, they should also be good at 17 solidarity, cooperation, high discipline, working dedicatedly, scenically and respect the common organization 4.2.4 Group of solution to develop infrastructure, communication and information technology 4.2.4.1 Solution for the infrastructure development and the compensation and benefit for State Audit’s officials, employees and auditors Audit should develop preferential policies to create strong steps to mobilize resources to ensure the facility-specific system-wide SAV The construction of the facilities and treatment regime for officials and civil servants 4.2.4.2 Solution for the communication State Audit Office shall, in coordination with units under construction SAV content, plan and carry out regular propaganda and popularization of laws, resolutions and directives of the Party and State on public debt management, the role of state audit in public debt management as well as experience auditing public debt Centre for Science and Audit Training should cooperate with the International Cooperation Department and the State Audit Office, to organizes seminars, talks about the role of state audit of public debt management, public debt auditing experience and information on the public debt There by, open and create the transparency for assessment, report on public debt management and reports on public debt audit In addition, to enhance the preciseness of citizens, owners, management organization regarding the management and using of public debt as well as the role of State Audit in public debt management The audit reports and website of State Audit should open a section that broadcasting about the public debt management and role of State Audit, sharing about the experience in public debt management, strategies and action program of State Audit in public debt management, as well as finding on the public debt management 4.2.4.3 Solution for the development of science - information technology Regarding the science activities, State Audit should improve the science activities and develop the information technology in order to enhance the management skills applying information technology To combine the research activities with staffs training and to apply the research finding to practical audit To research the model, management framework and method for audit activities 18 4.2.5 Solution for the international integration and cooperation regarding public debt To improve the existing bilateral and multilateral relationship among the members of the Organizational of Supreme Audit Institutions Asia (ASOSAI) and the International Organizationfor Control of Suprememath (INTOSAI) in order to maintain and strengthen the existing relationship, develop the cooperation and sharing regarding public debt management and increase the advantage of State Audit of each country in public debt management 4.3 Recommendation to enhance the position and roles of State Auditing in managing public debt 4.3.1 Recommendation for the Government First,to adjustand improve the legal status of the State Auditagency It is important to ensure the independence, integrity and professionalism of the Audit aims to improve the quality, efficiency and effectiveness of audit activities as a tool to control the management and use of public resources So far, the Constitution of the Republic of Vietnam Socialist no regulations on audit-related activities or SAV Therefore, the Government should have the A mendment in the Constitution of our country on the legal status and the functions and tasks of the State Audit agency Second, should improve the legal system, first of all need to check, recheck the existing text to cancel the law is outdated, contradictoryandoverlappingwith each other At the same time promote the development and promulgation of a uniform law on the basis of research and application of international law to conform to the conditions of Vietnam Third, to strengthen the authority for such additional functions SAV survey, the audit authority for the management and use of public debt to promptly stop and limit to the minimum the consumption phenomen on pole, and timely resolution of these errors related to public debt managemen activities Fourth, the right to direct the Government, ministries, relevant units in close coordination with the Audit and congressional offices in the management of public debt as well as the implementation strategy of Vietnam's public debt Fifth, to meet the operational expenditure of Audit to ensure the independence, integrity and professionalism of the agency In addition, the State should have policies for development investment in information technology and media equipment and other techniques to ensure that the organization and operation of the Audit and meet the needs of international integration 19 4.3.2 Recommendation for State Audit In order to enhance the quality, validity and effectiveness of audit activities to improve the role of State Audit in public debt management, State Audit should: - Completing thelegal basis proportionate, adequate and comprehensive for Audit; -Developing and perfecting the organizational structure of the State Audit apparatuson the basis of centralized management modelas the current uniform, including the advisory unit, the specialized state audit central and local areas in the state audit methods; - Improving the quality and development of staff, public servants and employees in sufficient quantity, structure and professional structure reasonable value at each stage; - Modernizationofthe State Auditactivity; - Enhanced auditing of annual reports on public debt while enhancing the quantity and quality audits of public debt topics, such as external borrowing by the government, national debt, Government debt guarantees, borrowing costs etc On the other hand, strengthen auditing and evaluating the use and efficiency of the use of loans, which are guaranteed by the Government in the investment project, enterprises, commercial banks thereby alarming risks may occur that threaten the sustainability of public debt and budget - Strengthen and improve the efficiency of cooperation between State Audit and agencies of the National Assembly, the public debt management agencies and the units those use the public debt; - Strengthen the publicity and transparency of the audit results and the implementation of the conclusions and recommendations of the audit; - Expand international cooperation in order to learn and exchange experiences with the State Audit agencies in the region and the world to improve the experience in the management of public debt as well as the audit of public debt; - The development of infrastructure system, ensuring funding and working conditions; ensure the material life and spirit, creating the working conditions and motivation to staff, officers and employees of the State Audit to work securely, developing the capabilities and forte, keeping in virtue duty performance 4.3.3 Recommendation for the public debt management Agencies The public debt management agencies needs to develop a strategic plan for the loan on the basis and in accordance with the economic - social development 20 plans, budget and revenue plan and expenditure in each period The strategic plan on public debt must clearly define the purpose of the loans (borrow to finance the budget deficit, debt restructuring and re-lent or borrowed to finance the program, important and efficient investment projects, lending to ensure national financial security), to mobilize short-term rate, medium-term and long-term loans for each object in the domestic and foreign, in the form of raising appropriate capital and interest rate The strategic plan on public debt should also specify the objects using loans, the expected effect; determine the exact time of the loan, the loan stages, avoiding the loan is not used for a long time or have no real need to use Thereby, enabling the SAV to perform better when conducting audit of public debt The public debt management agencies should be responsible for ensuring the sustainability of the scale and speed of growth of public debt, with liquidity in many different situations and limit risk and cost In doing so, it should set the safety threshold of public debt; and regularly assess the risks arising from government debt in relation to GDP, state budget revenues, total exports, trade balance, foreign reserves, financial reserves, funds accumulated to repay etc Strengthen the publicity, transparency and accountability in management of public debt The publicity and transparency in order to strengthen accountability in the management and use of public debt and accountability of the public debt management agencies 4.3.4 Recommendation for business units using public debt First, the unit uses the public debt should fully research the State Audit Law, the Law on Public Debt Management, documents relating to public debt, the management and use of public resources, talent and other documents prescribed powers and responsibilities of the audited units; initiative, actively collaborated with the State Audit during the implementation process to capture, clearly explain the audit findings and implement the conclusions and recommendations of the State Audit Next is to improve the efficiency of the use of loans to meet the objectives and principles of debt management; raise awareness about the role of the unit and the function of the internal control system Once having proper and adequate awareness, unit leaders will create necessary environment and conditions to ensure compliance unit regimes, policies and legislation, the regulations on management and use of state money and property; prevent, detect and take actions on activities, failing compliance with laws in the areas of economics, finance and accounting 21 CONCLUSION Thesis on the role of state audit in public debt management in Vietnam includes some following contents: The thesis has clarified the rationale and build a theoretical framework on the role of state audit in public debt management in Vietnam, to clarify the nature of the public debt, public debt management, analytical performance targets SAV's role in the management of public debt and the criteria for evaluating the role of state audit in public debt management At the same time, the thesis clarified the contents of the SAV role in public debt management as: (1) the confirmation of information on debt management report, (2) the role in organizing audit on public debt management, (3) the role of public debt management assessment (4) the role on giving recommendation to enhance the efficiency of public debt management as well as research, analyze the role of the State Audit of public debt management on the basis of research experience in some countries with the advanced management of public debt as the United States, Germany, China and the experience of Mexico, from which to draw lessons for Vietnam The thesis has taken an overview picture of public debt in Vietnam in recent years, helps showing the situation of public debt that containing many risks when public debt is increasing, the unreasonable payment term and interest rates combines with unstable repayment obligation At the same time, it shows that public debt management is having many issues and the risks when implementation objectives of public debt management is huge Causes may include: (1) The budget deficit, (2) investment is large and flattened, (3) low efficiency in public debt management to assess the status of Vietnam's public debt the last time on two aspects is the legal framework and debt management organizations, and draw the advantages and disadvantages exist, in which the most important is the lack of the presence of an independent state agency in information transparency and supervision of the public debt management as well as assessment and proposals of measures to improve the efficiency of public debt management The research also assesses the real situation of the State Audit role in public debt management regarding the contents such as the legal framework that established by the State Audit , the situation that information is confirmed on the public debts reports, the status as public debt management assessment and status on proposed roles that helps raising the efficiency of public debt management Thereby it indicates the successes, limitations and weaknesses in the 22 implementation of state audit role in public debt management and point out the specific cause The research has defined the views and orientations to enhance the role of the State Audit of Public Debt Management and offer scientific based solutions to enhance the role of the State Audit of public debt management in Vietnam : The research finding can be a reference for further research on developing the process and audit guidelines for public debt management, as well as the strategy and the focus for the State Audit through each development phases and each particular year; is a reference for debt management agencies to improve the model and research organizations to build management content of public debt and implement public debt management economically, effectively and efficiently; is the reference for the Government and the National Assembly to build up legislation and guidelines that specify the role of the State Audit in public debt management; as well as a reference for further research on the role of state audit in public debt management in Vietnam as well as the research activities of the State Audit relevant to public debt management 23