VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES

L

HOANG BONG

IMPROVING THE QUALITY OF THE STATE
AUDIT HUMAN RESOURCE OF VIETNAM

Major: Business Administration
Major code: 9.34.01.01

SUMMARY OF THE DOCTORAL DISSERTATION IN
BUSINESS ADMINISTRATION

Hanoi - 2019


The dissertation completed at Graduate Academy of Social Sciences,
Vietnam Academy of Social Sciences

Supervisors:

1. Prof. Dr. Nguyen Quang Thuan
2. Dr. Nguyen Tuan Anh

Reviewer 1: Assoc.Prof.Dr. Tran Minh Tuan
Reviewer 2: Assoc.Prof.Dr. Tran Huu Dao
Reviewer 3: Assoc.Prof.Dr. Do Huong Lan


public assets.
Since then, it is necessary to further increase the state audit HR in both
quantity and quality to ensure a rational structure, strong political instincts, pure
ethics, expertise in professional skills and professional so as to commensurate
with the requirements of the audit in the information technology environment of
the technology revolution 4.0 and international integration context. Therefore, it
is really necessary to conduct the research titled “Improving the quality of the
state audit human resource of Vietnam” as the author’s doctoral dissertation in
business adminstration.
2. Research purpose and tasks
2.1. Research purpose
The dissertation aims to clarify the reality of HR quality and the
improvement of the state audit HR quality of Vietnam, thenceforth, it proposes
solutions to improve the quality of the state audit HR in the coming years.
2.2. Research tasks

1


First, the study seeks to examine and systematize the published research
works at home and abroad related to the dissertation and determing gaps that the
study needs to further examine.
Second, to analyze and clarify theoretical basis of the quality of the state
audit human resource (SAHR) such as concept, characteristics of SAHR;
clarifying criteria and factors affecting the quality of SAHR; to examine
experiences of improving the quality of SAHR of some countries around the
world and lessons for Vietnam.
Third, to analyze and assess the reality of HR quality and the improvement of
SAHR quality in Vietnam today, and clarify the advantages, limitations and
causes of the limitations.

Thenceforth, the dissertation proposes synchronized solutions on all three aspects
of improving intellectual strength, physical strength and mental strength of the
SAHR in Vietnam in the coming years. For each solution, the study seeks to
analyze and clarify the necessity, scientific basis and specific tasks to implement
these solutions, ensuring the scientific basis and feasibility of the solutions.
6. Scientific and practical significance of the dissertation
Scientifically: the dissertation contributes to enriching the theory of
improving HR quality in the state organizations in general and in a specific area
is quite new in Vietnam, which is the state audit.
Practically: the research results of the study are valuable and reliable
reference for auditors, the competent state agencies in building and improving
the quality of SAHR in Vietnam today.
7. Structure of the dissertation
Besides the introduction, conclusion and references, the dissertation includes
4 chapters:
Chapter 1: Literature review
Chapter 2: Theoretical and practical basis on the quality of SAHR
Chapter 3: The reality of HR quality and the improvement of SAHR quality
in Vietnam today
Chapter 4: Viewpoints and solutions to improve the quality of SAHR

3


Chapter 1
LITERATURE REVIEW
The domestic and foreign research works related to the dissertation are
divided into two main groups: research works on SAV and SAHR, and research
works related to quality and improve the quality of SAHR.
By reviewing scientific works at home and abroad, we withdraw an overview

intellectual strength, physical strength and mental strength, in which the study
will clarify concrete standards of each criterion suitable with specific
characteristics of HR in public sector and SAV, at the same time, considering it
as a measure to analyze and assess the reality of HR quality and improvement of
SAHR quality in Vietnam today.
To clarify issues related to SAHR quality, the study tries to address the
following general question and research questions:
- General question: How to improve the quality of SAHR in Vietnam
today?
- Research questions:
+ Q1: What are the criteria to measure the quality of SAHR in Vietnam
today?
+ Q2: How is the reality of SAHR quality of Vietnam?
+ Q3: How is the reality of the improvement of SAHR quality in Vietnam
today?
+ Q4: What are the needed solutions to improve the quality of SAHR of
Vietnam?

5


Chapter 2
THEORETICAL AND PRACTICAL BASIS ON THE QUALITY OF THE
STATE AUDIT HUMAN RESOURCE
2.1. The state audit human resource
2.1.1. The concept of HR
HR is the overall number of people with criteria of intellectual, physical and
mental strength who create personal capacity of each person and being mobilzed
by organizations and society to make material wealth for the development of
orgranizations and society.

qualifications, political theory qualifications, specialized skills and work
experiences.
- Physical strength includes standards: physical and health.
- Mental strength includes standards: attitude, psychology and ethics of
auditors.
2.2.2. Criteria for assessing the quality of SAHR
From the viewpoints of SAHR quality, it can set up criteria for assessing the
quality of SAHR by intellectual strength, physical strength and mental strength.
2.2.2.1. Criteria for assessing intellectual strength of HR
Criteria for assessing intellectual strength of SAHR are determined by many
factors such as educational level (basic knowledge, foudation), professional
qualifications, political theory qualifications, specialized skills and work
experiences.
2.2.2.2. Criteria for assessing physical strength of HR
Criteria for assessing physical strength of SAHR are determined by basic
factors such as physical health, mental health and social health.
2.2.2.2. Criteria for assessing mental strength of HR
Mental strength is the moral, personality and spiritual qualities of HR. For the
SAV, the criterial for assessing the mental strength include the basic elements:
their working attitude, psychology and professional ethics. The professional
ethics requires auditors and other personnel while participating in audit activities,
they must comply with principles of integrity, independence, objectivity,
competency and confidentiality.
2.3. Improving the quality of SAHR
2.3.1. The concept of improving the quality of SAHR
Improving the quality of SAHR is to improve the capacity of human
resources who are working in the SAV in all aspects: Physical, intellectual and
mental strength to meet the development of SAV in the new situation.

7

2.3.3.2. Internal factors
These are factors that directly affect the quality of SAHR and are the basis
for improving the quality of SAHR. These factors include: Recruitment; training

8


and retraining; evaluation, use, management; remuneration regimes and policies;
rewards and disciplines.
2.4. Experiences of several countries in improving the quality of SAHR
2.4.1. Experiences of several countries around the world
2.4.1.1. Thailand
- Recruitment: having independent rights in recruiting civil servants;
- Training: attaching special importance to training and retraining for civil
servants;
- Salaries and allowances: being independent financially.
- Recruitment: for each type of audit, there will be different requirements
for each specific object when recruiting;
- Training: the training work is very attached special importance and based
on working needs and training and retraining associated with different objects.
- Salaries and allowances: The salary regime is very competitive to attract
quality human resources.
2.4.1.3. Canada
Recruitment and management: From various sources in the financial sector,
they manage all areas such as construction, law, and public management.
Training and development: implementing the annual compulsory training
program for OAG staffs;
Remuneration and retention: Every year employees are entitled to a number
of day’s leave. On average, each officer and auditor use 17 days’ leave per year.
2.4.2. Lessons for Vietnam

was stipulated in the Constitution – the state’s basic law, has upgraded the SAV
into a constitutional agency: “The SAV was established by the National
Assembly, it operates independently and only obeys the law to carry out auditing
to the management and use of financial and public assets”.
3.1.1.1. Regarding apparatus
The SAV is organized and managed centrally, it includes the executive
apparatus, specialized SAV, regional SAV and business units.
Initially, there are only 4 specialized auditing units and the state audit offices,
the SAV so far has had 31 subordinate units and divided into 4 divisions
(Executive Division has 7 functional units, the central audit division has 8
specialized SAVs, local audit division has 13 regional SAVs, the business
division consists of 3 units. In addition, the Party Office-Union is a specialized
unit to perform administration mission of the Party Executive Committee, the
Party Committee of SAV, Trade Union and Youth Union.

10


3.1.1.2. Regarding operation
The legal framework is increasingly improved, the auditors’ capacity is
strengthened, the SAV activities are increasingly expanded in terms of scale,
types and auditing mode, improving the quality of auditing and publicizing its
outcomes under the state audit law. After more than 20 years of operation, the
SAV has achieved important results in terms of scale, objects, contents, types and
auditing mode. Summing up the audit results over the past 20 years (from 1994
to 2017), the SAV has discovered many violations of policy, economic and
financial management and petitions of handling finance with a total amount of
320,230 billion dong, of which incremental revenue by 72,858 billion dong,
abridgment of expense by 69,349 billion dong and other petitions by 178,023
billion dong. Especially, in 2 years (2016 and 2017) of implementing the SAV

Since the establishment in 1994, the SAV just had 60 people, after more than
20 years of operation, by 31 March 2018, the SAV had 2,109 people (of which,
1,974 cadres, civil servants, 135 officials and 194 labor contract staffs under the
Decree 68/2000/ND-CP). Regarding structure: there are 33 senior auditors,
accounting for 1.9%; 466 principal auditors, accounting for 27.8%; 1017
auditors, accounting for 64.2%. Thus, after establishing, every 10 years then the
number of permanent personnel of the SAV increased double to meet the
requirements and mission.
Over 20 years of construction and development, along with completing the
organizational structure, SAHR has had remarkable development in both scale
and structure, better meeting the development of SAV.
3.2. The reality of SAHR quality
3.2.1. HR quality through intellectual strength
3.2.1.1. Regarding professional qualifications
SAHR professional qualifications: University or higher degree accounts for
more than 98%, many auditors who have two or three university degrees, 31.3%
civil servants and officials have postgraduate degrees, of which, 1 Professor, 2
Associate Professors, 34 doctors and 556 masters.
On training expertise of SAHR: Finance, accounting and auditing accounting
for 61%; Construction, architecture, transport, irrigation accounting for 22%;
Law, administration, business administration, information technology, economic
management and other sectors accounting for 17%.
Figure 3.2 shows that the major in economics (finance, accounting, auditing,
finance and banking) accounting for 61%, the major in technics (construction,
transport, architectural irrigation) accounting for 22% and law, administration,
business administration, IT and economic management) accounting for 17%.

12



and health status of the labor force: specifically:

13


- Regarding gender: due to auditors always work far away from home and
office for a long time, the percentage of female is lower than male (accounting
for 32.5%). This shows that auditing working is not really attractive to women.
- Regarding structure of age: the SAV has young HR and increasing quickly,
this is an advantage for the development of the SAV. Currently, the SAV’s cadres
and civil servants are aged under 50, accounting for 88.8%; in which, auditors
are aged from 30 to 40 (accounting for 80%). In addition, civil servants are aged
over 50 accounting for 11.2%, most of them are leaders and managers of the
subordinate units of SAVs, and leaders of the SAVs.
- Regarding health status:
The health status of SAHR is currently quite good (89% of men are well and
very well; 79.5% of women are well and very well; there is no weak manpower),
so their health is good enough to meet the development requirements of the SAV.
3.2.3. HR quality through mental
strength - On working attitude of HR
The surveys show that SAHR has seriously working attitude, of which, HRs
are charged auditing are very serious, HRs are charged administrative work are
quite serious.
- On working psychology of HR
The surveys show that the working environment and remuneration (mainly
the actual income of employees) in the business units are less attractive than the
advisory units under the executive apparatus, and even less attractive than the
auditing units.
- On professional ethics
According to the surveys, the rate of SAHR with good ethics is high (very

On the basis of planning and training, in recent years, the State General
Auditing has proposed and was approved by the Standing Committee of the
National Assembly to appoint 05 Deputy General Auditors and 33 Senior
Auditors; and the State General Auditing appoints hundreds of leaders at the
Department and Office levels.
- Regarding the recruitment
Based on the evaluation and analysis of annual staff demand and personnel
target, the SAV has developed and implemented projects of recruiting civil
servants and officials. In recent years, the SAV has recruited 950 people (780
people were recruited by taking exam, 170 people were recruited without
examination). Due to good recruitment, so far, civil servants and officials of the
SAV has been gradually strengthened in both quantity and structure, they have

15


qualification suitable with the work requirements, in which, 100% of auditors
reached BA degree or more, many have two or more BA degrees.
3.3.2. The reality of improving physical strength
Over the past years, the SAV always attaches importance to protect and take
care employees’ health by periodic health examination, organizing sports and
cultural activities, tourism and convalescence for civil servants, official and
employees.
3.3.3. The reality of improving mental
strength - Regarding working conditions
Basically, the working offices of the regional SAV units have built, in which,
the headquarters of SAV were built spaciously and modernly along with modern
equipment and facilities, which save time and improving the efficiency of
handling work to help employees to reduce work pressure so that they can feel
love their jobs.

modernization of the country and international integration.
3.2.3.2. Limitations and causes
First, the evaluation of HR
- The annual evaluation of civil servants is still formality.
- Planning work has not meet requirement in practice; there are no specific
plans to connect the planning with training, retraining and challenges to the
staffs.
- In some cases of appointing officials, they have not meet requirements of
professional expertise and working experience in practice.
Second, the HR recruitment does not follow job positions, not yet applied IT
in recruiting civil servants.
Third, the HR training
- There is no strategy for training and retraining officials;
- The training to leaders, managers at department level is not really
associated with the work of staff planning. The training and retraining are
heavily theory, not really associated with the practice of audit activities.
Fourth, making motivation for HR
- Salary and allowances for state civil servants like the state administrative
agencies are not appropriate to the characteristics of the SAV.
- Priority regime: Resolution No. 325/NQ-UBTVQH14 dated December 29,
2016 of National Assembly Standing Committee regulating regimes for cadres
and civil servants of the SAV only for auditors.
Fifth, improving physical strength for HR

17


Organizing periodic medical examination for employees every 6 months like
heavy and hazardous works is not appropriate.
The causes of limitations:



4.1.4. Meeting the requirements of international integration on state audit
4.2. Solutions to improve the quality of SAHR
4.2.1. Solutions to improve HR intellectual strength
4.2.1.1. Innovating training and retraining
First, building strategies of training and retraining
Building strategies of training and retraining to the SAV according to the
following directions:
- Training, retraining is one of the most important pillars to improve the
quality of SAHR and the SAV's operations;
- Training activities must be comprehensive, not only for auditors and other
components of the SAV, but also for all the financial and accounting staffs of the
audited units;
- Continuing to complete the programs of training retraining professional for
state auditors such as basic and modern training, connecting between theory and
practice; and enhancing the quality and professional ethics of auditors.
- Establishing the Auditing Academy to train BA level in SAV to create HR
for the SAVs, while simultaneously training post-graduate for civil servants,
officials and the state auditors.
Second, completing the system of documents on training and retraining
To complete fully and synchronously the system of documents on training
and retraining the SAV; first of all, it is necessary to amend the training
regulation in the direction of covering all training activities and to clearly
implement division of work and responsibilities, non-overlapping or missing in
organizing the training management among units.
Third, renewing the program, the content of training and retraining
- Continuing to build and complete teaching materials;
- Building and implementing training and retraining program for accounting
of the audited units.

Second, set up a system of job positions to the SAV
In order to have evidence for determining the number of personnel of the
SAV to submit to the competent state agencies to make decision, it is necessary
to build a system of job positions of the SAV.
Third, building a HR structure to meet the requirement of SAV development
- Structuring by each field of work
According to the development schedule of the SAV by 2030, there will be
85% of civil servants working in the audit sector (the specialized SAV
accounting for 25.5%, regional SAV is about 59.5%; the civil servants who

20


working at the advisory units accounting for 8.5% and public service sector is
about 6.5%).
- Structuring civil servants and officials by rank
For auditors, by 2030, the number of senior auditors accounting for 2-3%;
principal auditors accounting for 30-35%; auditors: 50-60%.
For consultant and equivalent ranks, by 2030, the number of senior
consultants accounting for 2-3%; principal consultants and equivalent accounting
for 30-35%; consultants and equivalent accounting for 50-55%; officers and
employees accounting for 5-7%.
- Structuring by the trained expertise
By 2030, the SAV tries to achieve 20-30% of independent auditing activities
in the annual auditing plans, so there will be about 50% of people who are
trained in finance, accounting, auditing and banking; speciality transportation,
irrigation, architecture accounting for 25%; economic management, state
management, law, IT and others accounting for 24%.
- Structuring by gender
Due to the characteristics of the SAV, the number of men is always higher

Fourth, renovating the appointment of civil servants and officials
- Renovating the process of appointing leaders must ensure publicity,
democracy, objectivity and fairly that are discussed by leadership, the Party
Committee of the SAV to avoid group benefits.
- Appointing civil servants must be based on respect for professional
standards, ensuring planning and capacity, management experience and priority
to appoint female leaders.
4.2.2. Solutions to improve HR physical strength
First, strengthening investment in facilities and building civilized and
modern offices.
Second, strengthening communication and education activities to provide
healthy working methods to the employees, and build up a safe culture
environment at workplaces.
Third, coordinate with medical centers and prestigious hospitals to regularly
organize consultancy, disseminate positive prevention of disease at the
workplaces for cadres, civil servants and employees
Fourth, launching cultural and sports movements to civil servants and
employees.
Fifth, organizing periodic health examinations for cadres, civil servants and
employees every 6 months instead of once a year.
4.2.3. Solutions to improve HR mental strength

22


4.2.3.1. Policies of salary and allowance consistent with specific
characteristics of the auditing
- Increasing the General auditor’s salary commensurate with the salary of the
Chief Justice of the Supreme People's Court and the Chief of the Supreme
People's Procuracy so as to match the position of the SAV.