* Combined financial statements and Independent Auditors' Report

Transcription

1 * 0 GrantThornton * Combined financial statements and ndependent Auditors' Report g Vietnam inclusive innovation Project * Credit Agreement No5249-VN For the period from 1 January 2017 to 10 July 2017 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Grant Thornton (Vietnam) Limited A member of Grant Thomnton nternational Ltd ('GTL, GTL and the member firms are not a worldwide partnership, Services are delivered independently by the member firms

2 Vietnam nclusive nnovation Project Credit Agreement No5249-VN Contents Page Part Combined financial statements Report of the Project Management nit 2 ndependent Auditors' Report 4 Balance sheet 6 Statement of Sources and ses of funds 7 Statement of Designated accounts g Statement of loan withdrawals 10 Notes to the combined financial statements 11 Part 1i Auditors' Report on the Compliance 17 Part Auditors' Report on the nternal Control 20

3 Vietnam nclusive innovation Project Credit Agreement No5249-VN a a A Part * Combined financial statements a

4 Vietnam nclusive nnovation Project Credit Agreement No5249-VN Report of the Project Management nit The Project Management nit (' PM ) submits its report together with the audited combined financial statements of the Vietnam nclusive nnovation Project - Credit Agreement No5249-VN ('1he Project") for the period from 1 January 2017 to 10 July 2017 Auditors * The combined financial statements for the period from 1 January 2017 to 10 July 2017 have been audited by Grant Thornton (Vietnam) Limited Project Management nit The members of the PM responsible for overall direction and management of the Project during the period and to the date of this report were: Name Position Date appointed *Mr Nguyen Hoa Cuong Director 28 March 2013 Ms Bui Thu Thuy Deputy Director 28 March 2013 *Mr Nguyen Quang Vinh Senior Accountant 28 March 2013 MsTrinh Thi Huong Member 28 March 2013 *Ms Nguyen Thi Le Quyen Member 28 March a * Statement ot the Project Management nit The Project Management nit is responsible for preparing combined financial statements for the period from 1 January 2017 to 10 July 2017 which give a true and fair view of * the financial position of the Project; a the funds received and expended for the period; 0 the activities of the designated accounts for the period and the balance of these accounts as at 10 July 2017; and * the funds withdrawn for the period n preparing those combined financial statements, the Project Management nit is required to: * select suitable accounting policies and then apply them consistently in accordance with the Credit Agreement No 5249-VN between Socialist Republic of Vietnam and nternational Development 3 Association ("DA) and the Project's Financial Management Manual; * make judgements and estimates that are reasonable and prudent; * state whether applicable accounting principles have been followed, subject to any material departures disclosed and explained in the combined financial statements; and 3 design and implement an effective internal control system for the purpose of properly preparing and presenting the combined financial statements so as to minimise errors and frauds 1 The Project Management nit confirms that they have complied with the above requirements in preparing * the combined financial statements The Project Management nit is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the financial position of the Project and to ensure that the accounting records comply with the accounting system as described in the Project mplementation 3 Manual They are also responsible for safeguarding the assets of the Project and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities

5 Vietnam inclusive nnovation Project Credit Agreement No6249-VN Approval of the combined financial statements We hereby approve the accompanying combined financial statements on page 6 tol6 which give a true and fair view of the fund balance of the Project as at 10 July 2017, the movement and balance of the designated accounts for the Credit fund as at 10 July 2017 and the funds received and disbursed for the period from 1 January 2017 to 10 July 2017, in accordance with the accounting policies as described in Note 2 to the combined financial statements and in the opinion of the PM the loan withdrawals have been adequately reconciled to the statements of expenditures prepared by the borrower during the period, and such statements of expenditures were a quately supported Fo d on behalf of the ct Management nit, 8 in Hoa Cuong ector Hanoi, Vietnam 30 August 2017 a 3 B

6 * 0 GrantThornton s ndependent Auditors' Report on the combined financial statements of Vietnam nclusive nnovation Project Credit Agreement No5249-VN for the period from 1 January 2017 to 10 July 2017 No To: The Project Management nit We have audited the accompanying combined financial statements of Vietnam nclusive nnovation * Project ('the Project'), prepared on 30 August 2017, including the balance sheet as at 10 July 2017, and the statement of sources and uses of funds, the statement of designated account and the statement of * loan withdrawals for the period from January 2017 to 10 July 2017 and the notes thereto (collectively referred to as 'the Financial Statements") as set out on pages from 6 to n our opinion, in all material respects: The accompanying combined financial statements give a true and fair view of the financial position as at 10 Ju ly 2017 as well as of the funds received a nd expenditures of the Project for the period from 1 January 2017 to 10 July 2017 in conformity with the accounting policies described in Note 2 of the Notes to the combined financial statements * The accompanying statements of designated accounts give a true and fair view of the balance of the designated accounts as at 10 July 2017 and the Project's receipts and disbursements via these designated accounts for the period from 1 January 2017 to 10 July 2017 in conformity with the * relevant covenants of Credit Agreement No 5249-VN, the Project Financial Management Manual and relevant regulations established by the World Bank - Withdrawal Applications were adequately reconciled to the statements of expenditures ('SOEs") * prepared by the Project Management nit for the period from 1 January 2017 to 10 July 2017 and those SOEs were adequately supported by accounting vouchers 4 Basis of opinion * We conducted our audit in accordance with nternational Standards on Auditing ("SAK) Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit 3 of the Financial Statements section of our report We are independent of the Project n accordance with the ethical requirements that are relevant to our audit of the financial statements in Vietnam, and we have 3 fulfilled our other ethical responsibilities in accordance with these requirements 3 We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion Project Management nit's responsibility for the financial statements The Project Management nit s responsible for the preparation and fair presentation of these financial statements in accordance with accounting policies as described in Note 2 and for such internal controls that management determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error 3 Grant Thornton (Vietnam) Limited A member of Grant Thornton nternational Ltd (GTL'), GTL and thre member firrns are not a worldwide partnership Services are delivered independently by the member firms

7 * 0 GrantThornton Auditors' responsibility for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists 3 Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements As padt of an audit in accordance with SAs, we exercise professional judgment and maintain professional 1 scepticism throughout the audit We also: K dentify and assess the risks of material misstatement of the tinancial statements, whether due to fraud or error, design and perform audit procedures responsive to these risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion The risk of not detecting a material misstatement resulting from fraud s higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal &o4 control;, Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances; Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Project Management nit We communicate with the Project Management nit regarding, among other mailers, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal contr identify during our audit 3T THO (VETNAM) LMTED W 207GAtors' N Phamn Thu Trang KAuditor's Practising Certificate Auditor's Practising Certificate No No *Deputy General Director Auditor Hanoi, Vietnam * 30 August sonsita ib iityal rfote adioftefn calstm ns

8 Vietnam nclusive innovation Project Credit Agreement No5249-VN 3 a A Balance sheet ASSETS Cash Note 10 July December 2016 SD VND SO VND Cash on hand ,996,750 Cash at bank 7 37, ,738, ,085,366,438 37, ,738, ,51 7,098,363,188 Current assets 3 TOTAL ASSETS 37, ,738, ,290,51 7,098,363,188 RESORCES Liabilities Tax payable to the State budget ,070,000 Other payables 8 37, ,738, ,692,236 Fund balance 37, ,738,225 1, ,762,236 Fund balance brought forward from prior year 310, ,059,600,952 4,652, ,860,657,591 (Deficit) Surplus of resources over uses of funds (310,58518) (7,059,600,952) (4,341,61347) (97800,956,639) Fund balance carried forward 310, ,059,600,952 TOTAL RESORCES 37, ,738, , ,098,363,188 ian, Vietnam S3 Aug t 2017 yen Hoa Cuong Director Doan Th! Thanh Ha Senior Accountant 5 The notes set out from pages 11 to 16 form ant integral part of these financial statements6

9 K Vietnam nclusive nnovation Project Credit Agreement No5249-VN Statement of Sources and ses of funds Note Period from 1 January 2017 to Accumulated to 10 July July 2017 SD VND SD VND SORCES Credit fund 3 (230,12841) (5,174,268,439) 1,383,989,89 29,648,799,646 Counterpart fund 4 53, ,076,189, , ,682689,890 Others ,082,976 1, ,583,260 (176,62208) (4,093,996,343) 1,778, ,359,072,796 SES OF FNDS 6 Consultant 66, ,500,012, , ,321,554,065 Workshop and training , ,420,272,300 Equipment 4, ,000,000 62, ,381,722,500 Operating costs 66, ,376,424, ,726,08 11,847,296,774 Bank charges and costs of bid evaluation ,961,690 1, ,927, , ,914,398,206 1,792,596,48 39,006,773,529 Foreign exchange difference 1,26115 (51,206,403) 13, ,700,733 Deficit of sources over uses of funds (310,58518) (7,059,600,952) - - -jangq etnam u 017 nhoa Cuong Director T Doan Thi Thanh Ha Senior Accountant 5 3 The notes set out from pages 11 to 16 form an integral part of these financial statements

10 3 Vietnam inclusive nnovation Project Credit Agreement No5249-VN Statement of Designated account Project Management nit For the year period From 1 January 2017 to 10 July 2017 Account Number: Depository Bank: Address: Credit Agreement: No 5249-VN 3 Currency: SD B B Saigon - Hanoi Commercial Joint Stock Bank - Thang Long Branch No 91 Nguyen Chi Thanh Street, Dong Da District, Hanoi City, Vietnam a Part A- Account activity Opening balance as at 1 January ,84466 Add:, Amount transferred to Nafosted 72,836,05 Amount Less: withdrawn from Designated accounts (81,55230) Amount refunded to World Bank (230,128-41) Closing balance as at 10 July 2017 K Part B- Account reconciliation Amount advanced by World Bank before 1 January 2017 Add: * Amount advanced by World Bank S Less- 1,100,00M00 Amount claimed in the period ( ) Amount refunded to World Bank (230,12841) Foreign exchange differences (19926) it u ding amount advanced to the Designated accounts at 10 July an oi,yti am gu n Hoa Cuong i rector Doan Thi Thanh Ha S enior Acco unta nt

11 Vietnam inclusive nnovation Project Credit Agreement No5249-VN Statement of Designated account NAFOSTED For the year period From 1 January 2017 to 10 July 2017 Account Number: Depository Bank: Address: Credit Agreement: No 5249-VN 5 Currency: SD Saigon - Hanoi Commercial Joint Stock Bank - Thang Long Branch No 91 Nguyen Chi Thanh Street, Dong Da District, Hanoi City, Vietnam Part A- Account activity Opening balance as at 1 January 2017 Closing balance as at 10 July 2017 SD Part B- Account reconciliation Amount advanced by World Bank at 1 January 2017 Outstandng amount advanced to the Designated accounts at 10 July 2017 Hanoi, ieam 17 Nguyenloa Cuong ctor Doan Thi Thanh la Senior Accountant T The notes set out from pages 11 to 16 form an integral part of these financial statements

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13 Vietnam nclusive nnovation Project C red it A g reeme n t No VN Notes to the combined financial statements 1 The Project information The Vietnam nclusive nnovation Project ("the Project') operates under Financing Agreement - Credit No 5249-VN dated 6 September 2013 signed between the Socialist Republic of Vietnam and the nternational Development Association (DA) The objectives of the Project are to adopt, upgrade and develop inclusive innovations for the benefit of the Base of Pyramid population, Enterprises Development Agency is in charge of the Project (the Project owner), to be responsible for the overall planning, coordination, implementation and management of the Project The Project Management nit established by Enterprises Development Agency under the Decision No 59/QD-PTDN dated 28 March 2013, is to assist the Project owner in overall coordination and management of the Project implementation, The Project Management nit ("PM") is located at No 6B, Hoang Dieu Street, Quan Thanh Ward, Ba Dinh District, Hanoi City, Vietnam The Project consists of four components as follows: * Component L Developing nclusive nnovation Technologies a Component ll: pgrading and Commercialization of nnovation Technologies 0 Component L Capacity Building and Global Knowledge Transfer 9 Component V: Project Management and Monitoring & Evaluation (M&E) Project Management nit of the Department of Business Development is responsible for coordinating and managing the entire operation of the Project National Foundation for Science and Technology Development (NAFOSTED) takes accounted for implementation of the Component and the grant from the Component 11, Commercial banks nominated will credit for the remaining loan of the Component t nder the Financing Agreement No,5249-VN signed on 6 September 2013, total fund undertaken for the Project is SD55625 million, of which DA will finance SD55 million and the remaining VND12 billion (equivalent to SDO625 million) is to be financed by counterpart government funding for Enterprises Development Agency The Project operated from 6 December 2013 and ended on 10 July Principal accounting policies 21 Basis of combination of combined financial statements The combined financial statements are prepared by combining the financial statements of the Project Management nit and National Foundation for Science and Technology Development (NAFOSTED) n this combined financial statements, all receipts and disbursements are added together line by line Transactions and balances between Project Management nit and NAFOSTED (if any) are eliminated on combination

14 Vietnam nclusive nnovation Project Credit Agreement No5249-VN 22 Basis of accounting The cornbined financial statements are expressed in Vietnamese Dong ("VND"), except for the statements of designated accounts and statement of withdrawals which are expressed in nited States Dollar ("SD") These combined financial statements are prepared in accordance with requirements of the World Bank and Decision QD-BTC dated 30 March 2006 issued by the Ministry of Finance of Vietnam and nternational Public Sector Accounting Standards The combined financial staternents are prepared under the historical cost convention and on cash basis of accounting for financial reporting Accordingy, receipt is recognized when received rather than when the right to receive the income arises and expenditures are recognised when paid rather than when the obligation to pay them arises Except for bank interest which is recognized when the obligation to pay them arises 23 Foreign currency translation Foreign exchange differences are not cash flows However, the effect of exchange rate changes on cash and cash equivalents is reported separately in the statement of sources and uses of funds in order to reconcile fund balances at the beginning and the end of the period 24 Bank interest payable n accordance with Circular No 108/2007/TT-BTC dated 07 September 2007 issued by the Ministry of Finance, the Project can use bank interest earned from the Credit fund to pay for bank charges The remaining interest earned frorn the Credit fund accounts after deduction of bank charges is payable to the Government rather than treated as a source of income for the Project Bank charges and interest used to finance bank charges are recorded as the Preject's expenditure and income respective[y 25 Accounting period The Project's accounting period is from 1 January to 31 Decernber The Project's grace period is started on 1 January 2017 and ended on 10 Ju[y Credit fund from DA g 4 Counterpart fund Period from January 2017 Year ended to 10 July December 2016 SD VND S[D VND Refunded to [DA (230,12841) {5,174,268,439) (4,000,00000) (90,160,000,000) g(230,12841) (5,174,26,439) (4,000,00000) (90,160,000,000) Period from January 2017 to Year ended 10 July Decerber2016 VND VND Operating costs 1,076,189,120 2,524883,505 5 Otherfund Period from January 2017 Year ended to 10 July December2016 VND VND Bank interest (*) 4,082,976 7,346,510 ( Bank interest from the Designated accounts is used to cover bank charges g 12

15 wm aaraagaug amrw Wea a aan a WWa e Vietnam nclusive nnovation Project Credit Agreement No5249-VN 6 Expenses by activities and by sources of fund for the period from 1 January 2017 to 10 July PM Credit fund Counterpart Other Credit fund Counterpart Other from DA fund fund Total from DA fund fund Total Expenditures by categories VND VND VND VND SD SD SD SD Technical assistance, consultants 1,500,012, ,500,012,471 66, ,89213 Workshops and trainings Equipment 30, ,000,000 1, ,34590 Operating costs ,925 1,076,189,120-1,376,424,045 13, , ,636,60 Bank charges and costs of bid evaluation - - 7,961,690 7,961, ,830,247,396 1,076,189, ,690 2,914,398,206 81, , ,22426 Expenditures by activities Component : Capacity Building and Global Knowledge Transfer Component V: Project Management and Monitoring & Evaluation (M&E) 1,830247,396 1,076,169,120-2,906,436,616 81, , ,87463 Othem - - 7,961,690 7,961, ,830,247,396 1,076,189,120 7,961,690 2,914,398,206 81, ,322, ,22425 During the period, there were only expenditures incurred at the Project Management nit 13

16 Vietnam nclusive nnovation Project Credit Ag reement No5249-VN 7 Cash at bank Designated accounts of the Credit fund Original 10 July December 2016 Original currency SD VND currency SO VND - PM - 238, ,428,939,122 Designated accounts of the Credit fund - NAFOSTED Bank account - PM () 36, ,844,140 Bank account - NAFOSTED , ,633,157,069 nterest account in SD - PM , ,668,313 nterest account in SD - NAFOSTED ,187, ,682,753 nterest account in VND - NAFOSTED 216,42 4,919,181 (*) Balance of bank account s kept for payment of audit fee ,738, ,718, ,366,438 14

17 Vietnam nclusive nnovation Project Credit Agreement No5249-VN 8 Other payables 10 July December 2016 VND VND Audit fee 820,844,140 - Bank nterest - PM () 706,342 6,608,313 Bank interest - NAFOSTED () 9,187,743 10,723,923 Others 300, ,738,225 19,692,236 () Bank interest is payable to the State Budget at end of the Project, details as below: Period from 1 January 2017 Year ended to 10 July December 2016 SD VND SD VND Opening balance of bank interest account 1, ,121,522 1, ,296 Bank nterest earned ,082, , Deduction for bank charges (357,76) (7,961,690) (74769) (16,238,842) Refund to World Bank (32657) (7,267,496) Transferred from interest account to designated accounts - Remittance fee for one time advance - (400) (87,480) Foreign exchange differences (6571) (2,081,227) - (237,144) Closing balance of bank interest account ,894,085 1, ,121,522 Bank charge paid by designated accounts - Bank charge paid by designated accounts - (17162) (3,729,266) Payable to the State Budget ,894, ,392,

18 a Vietnam nclusive nnovation Project Credit Agreement No5249-VN *9 Reconciliation of amount on the statement of DA loan withdrawal to expenditures Loan Total amount per Statement of Loan withdrawals (Note 3) Period from January 2017 to 10 July 2017 SD Add: Amount claimed n the period 869,67233 Amount transferred from Nafosted 72,83605 Difference in exchange rate Les Amount spent in 2014 and reimbursed during period (1,1419) a Amount spent in 2015 and reimbursed during period (552,48877) Amount spent in 2016 and reimbursed during period (307,51238) 3Total expenditure of credit fund (Note 6) 81,55230 *10 Approval for issuance of the combined financial statements The combined financial statements were approved by the Board of Management and authorised for issue 93eoclaino muto h saeeto D onwtdaa toe p n iue eidfo aur 07t 10Jly21 3nHa un Doan Thi Thanh Ha Loa1S Director Senior Accountant ToaSmutprSaeeto onwtdaas(oe3 1

19 8 Vietnam nclusive nnovation Project Credit Agreement No5249-VN a B * Part 1 Auditors' Report on the Compliance 17 a

20 S a 3 * GrantThornton ndependent Auditors' Report on the Compliance the Vietnam nclusive innovation Project Credit Agreement No5249-VN for the period from 1 January 2017 to 10 July 2017 To: The Project Management nit We have audited the accompanying combined financial statements of Vietnam nclusive nnovation Project ("the Project") under Credit Agreement No5249-VN between the Socialist Republic of Vietnam and nternational Development Association ("ida"), including the balance sheet as at 10 July 2017, the statement of sources and uses of funds, statement of designated accounts and statement of loan withdrawals for the period from 1 January 2017 to 10 July 2017 and the notes thereto (collectively referred to as "Combined financial statements') and have issued our report thereon dated 30 August 2017 We conducted our audit in accordance with nternational Standards on Auditing The Project Management nit's responsibility 8 The Project Management nit is responsible for complying with Applicable Laws, Regulations and the Procurement Procedures and other Provisions of the Grant Agreement and other Guidance from World Bank Auditors' responsibility 3 Our responsibility is to express an opinion on the Project's compliance with the requirements, based on our procedures- We conducted our engagement in accordance with the nternational Standards Assurance on Engagement 3000, "Assurance Engagements other than Audits or Reviews of Historical Financial nformation", issued by the nternational Auditing and Assurance standards Standards requires Board that Those we comply with ethical requirements and plan and perform 3 our procedures to obtain reasonable assurance about whether, in all material respects, the Project has complied with the requirements An assurance engagement to report on the compliance with regulatory and contractual 3 requirements at a project involves performing procedures to obtain evidence about whether the project's activities are free of material non-compliance with the requirements The procedures selected depend on the auditor's 3 judgment, including the assessment of risks that the Project does not comply with the requirements and whether such non-compliance could have a direct and material effect on the Project's 3 combined financial statements- Our procedures included testing the compliance with the requirements that we consider necessary to provide reasonable assurance that the requirements are complied by the Project K We believe that the evidence we have obtained is sufficient and appropriate to provide a * basis for our opinion *18 5Grant Thornton (Vietnam) Limited A member of Grant T noernatonal oeornxon Ltd (tgtl') GTL and the member rms are not a isndaependen by qy te me mber fiw es r thordvide partnership Sem r'ces are delivered

21 * 0 GrantThornton Auditors' opinion n our opinion, the Project was, in all material respects, in compliance with Applicable Laws, Regulations and the Procurement Procedures and other Provisions of the Credit Agreement No 5249-VN and other Guidance from the World Bank that could have a direct and material financial effect on the Project's Combined financial statements for the period from 1 January 2017 to 10 July 2017, This report is intended for the information of the PM of the Project and the World Bank 46 N (VETNAM) LMTED N CO^NG TVY' GAT 0 0 Au cticing Certificate No Deputy General Director Pham Thu Trang Auditor's Practicing Certificate No Auditor Hanoi, Vietnam 30 August GaiTono ita )LmtdAlrgt eevd

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23 GrantThornton ndependent Auditors' Report on the nternal Control over financial reporting the Vietnam nclusive nnovation Project Credit Agreement No5249-VN for the period from 1 January 2017 to 10 July 2017 To: The Project Management nit We have audited the accompanying combined financial statements of Vietnam nclusive nnovation Project ("the Project") under Credit Agreement No, 5249-VN between the Socialist Republic of Vietnam and nternational Development Association ("DK), including the balance sheet as at 10 July 2017, the statement of sources and uses of funds, statement of designated accounts and statement of loan withdrawals for the period from 1 January 2017 to 10 July 2017 and the notes thereto (collectively referred to as "Combined financial statements") and have issued our report thereon dated 30 August 2017 We conducted our audit in accordance with nternational Standards on Auditing, The Project Management nit's responsibility The Project Management nit is responsible for designing and maintaining effective internal control over compliance with requirements that could have a direct and material financial effect on the combined financial statements as well as over financial reporting for the purpose of properly preparing and presenting the combined financial statements so as to mininnise errors and frauds and take responsibility for its assetcris as to the effectiveness of such internal control Auditors' responsibility Our responsibility s to express an opinion on the Project's combined financial statements and on the design and operation of controls over financial reporting, based on our procedures, We conducted our engagement in accordance with the nternational Standards on Assurance Engagement 3000, "Assurance Engagements other than Audits or Reviews of Historical Financial nformation", issued by the nternational Auditing and Assurance Standards Board That standard requires that we comply with ethical requirements and plan and perform our procedures to obtain reasonable assurance about whether, in all material respects, the Project's combined financial statements are fairly presented and the controls are suitably designed and operating effectively An assurance engagement to report on the description, design and operating eftectiveness of controls at a project involves performing procedures to obtain evidence about the disclosures in the project's description of its system and design and operating effectiveness of controls The procedures selected depend on the auditor's judgment, including the assessment of risks that the Project's Combined financial statements is not fairly presented, and that controls are not suitably designed or operating effectively Our procedures included testing the operating effectiveness of those controls that we consider necessary to provide reasonable assurance that the control objectives were achieved We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion, 21 Grant Thornton (Vietnam) Limited A member of Grant Thornton nternational Ltd ('GTL') GTL and the member firms arc not a worldwide partnership Services are delivered independently by the member firms

24 " 0 GrantThornton Auditors' opinion n our opinion, in all material respects, the Project's internal controls over financial reporting were suitably designed throughout the period from 1 January 2017 to 10 July 2017 and the controls tested, which were those necessary to provide reasonable assurance that the control objectives were achieved, operated effectively throughout the year C NrMt& og TNHH CRANT T Z ded for the information of the PM of the Project and the World Bank (VETNAM) LMTED Auditor's Practicing Certificate No Deputy General Director Pham Thu Trang Auditor's Practicing Certificate No Auditor Hanoi, Vietnam 30 August r n h r i ii L :i l i,i,?v d

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