International Journal of Advanced Multidisciplinary Research and Studies
Volume 5, Issue 4, 2025
Enhancing the Effectiveness of Internal Audit in State-Owned Enterprises in Vietnam: Current Status and Strategic Solutions
Author(s): Nguyen Thi Dieu Linh, Nguyen Thi Thu Trang, Trinh Mai Huyen
DOI: https://doi.org/10.62225/2583049X.2025.5.4.4746
Abstract:
State-owned enterprises (SOEs) play a significant role in Vietnam’s economy, yet their governance has historically faced challenges, including weak internal controls and oversight. In recent years, Vietnam has introduced regulations mandating internal audit functions in SOEs and listed companies (e.g. Decree 05/2019), aiming to align with international best practices. This paper explores the current status of internal auditing in Vietnamese SOEs and proposes strategic solutions to enhance its effectiveness. Using a qualitative analysis of existing literature, Vietnamese regulations, international standards, and case evidence, we identify several key issues: nascent implementation of internal audit, structural and organizational obstacles to auditor independence, limited adoption of risk-based auditing, capacity gaps in human resources, and inadequate integration of technology. While the new regulatory framework has laid groundwork for internal audit, many SOEs still struggle with unclear internal audit roles, overlapping supervisory bodies, and a lack of trained personnel. We argue that strengthening internal audit effectiveness requires a multifaceted approach. Recommended solutions include refining the regulatory framework to clarify internal audit’s mandate and reporting lines, establishing stronger organizational support and independence (such as empowering audit committees), investing in human capital through training and professional certification, and leveraging technology and data analytics in audit processes. Aligning internal audit practices with international standards of the Institute of Internal Auditors (IIA), INTOSAI guidance, and OECD governance principles is crucial. Enhanced internal audit in Vietnamese SOEs is expected to improve risk management, transparency, and accountability, thereby supporting better governance and performance. The findings have important implications for policymakers in refining regulations and for SOE leadership in implementing best practices, and the paper suggests directions for future research on internal audit development in emerging markets.
Keywords: Audit, Enterprises, INTOSAI guidance, OECD
Pages: 1211-1224
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