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VIETNAM SCALING UP URBAN UPGRADING PROJECT
LONG XUYEN CITY SUB-PROJECT
Credit Number 6055-VN and Credit Number 6056-VN
AUDIT FINANCIAL STATEMENTS
Fiscal year ended 31 December 2023
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VIETNAM SCALING UP URBAN UPGRADING PROJECT
LONG XUYEN CITY SUB-PROJECT
Credit Number 6055-VN and Credit Number 6056-VN
AUDIT FINANCIAL STATEMENTS
Fiscal year ended 31 December 2023
LI3


Vietnam Scaling Up Urban Upgrading Project - Long Xuyen City Sub-project
Credit Number 6055 - VN and Credit Number 6056 - VN
CONTENTS                                                                Page
PART I     INDEPENDENT AUDITORS' REPORT ON
THE FINANCIAL STATEMENTS
Report of the Project Management Unit                         03
Independent Auditors' Report on the Financial Statements   04-05
Audited Financial statements
Statement of Funds and Disbursements                       06
Statement of Funds Balance                                 07
Statement of Designated Account                            08       NG
A
Statement of Withdrawals and Reconciliation of Funds       09
Notes to the Financial Statements                        10-15
PART II    INDEPENDENT AUDITORS' REPORT ON                             16-17
THE INTERNAL CONTROL SYSTEM
PART III   INDEPENDENT AUDITORS' REPORT ON                             18-19
THE COMPLIANCE
PART IV    MANAGEMENT LETTER                                           20-23
2


Vietnam Scaling Up Urban Upgrading Project - Long Xuyen City Sub-project
Credit Number 6055 - VN and Credit Number 6056 - VN
REPORT OF THE PROJECT MANAGEMENT UNIT
Long Xuyen City Urban Upgrading Project Management Unit ("Project Management Unit") presents
this report and the Financial Statements of the Vietnam Scaling Up Urban Upgrading Project - Long
Xuyen City Sub-project ("The Project") for the fiscal year ended 31 December 2023.
The Project
The Project is implemented under the Credit Number 6055 - VN and Credit Number 6056 - VN dated
29 June 2018 between the Government of the Socialist Republic of Vietnam and the International
Development Association ("IDA").
Project Management Unit
Members of the Project Management Unit in the year and to the reporting date are:
Mr. Nguyen Ngoc Kinh           Director
Mr. Pham Vinh Thao             Deputy Director
Mr. Tran Nguyen Phuoc Thanh    Deputy Director
Mrs. Nguyen Thi Phuong Anh     Chief Accountant
Auditors
The auditors of AASC Limited have taken the audit of Financial Statements of the Project.
Responsibilities of the Project Management Unit
The Project Management Unit is responsible for preparing the Project's Financial Statements, including
Statement of Funds and Disbursements, Statement of Funds Balance, Statement of Designated Account
and Statement of Withdrawals and Reconciliation of Funds, which comply with the accounting policies
described in the attached Notes to the Financial Statements. The Project Management Unit assures that
the accounting policies are appropriately selected and consistently applied.
The Project Management Unit assures that the accounting records were fully maintained to prepare
the financial statements in accordance with the applied accounting policies and to disclose, with
reasonable accuracy at any time, the financial position of the Project.
The Project Management Unit is also responsible for maintaining an effective internal control as
management determines necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error, and comply with relevant laws, regulations
and other provisions of the funding agreement that could have a direct and material financial effect on
the Project's Financial Statements.
alf f the Project Management Unit
BAN DQUAN L
,N AN GC AP  .THI
n Ngoc Kinh
rector
An Giang, 20 November 2024
3


aasc
No: 201124.002/BCTC.FIS2
INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS
To:       Long Xuyen City Urban Upgrading Project Management Unit
Opinion  Vietnam Scaling Up Urban Upgrading Project - Long Xuyen City Sub-project
We have audited the accompanying Financial Statements of the Vietnam Scaling Up Urban
Upgrading Project - Long Xuyen City Sub-project, which comprise Statement of Funds Balance as
at 31 December 2023, Statement of Funds and Disbursements, Statement of Designated Account,
Statement of Withdrawals and Reconciliation of Funds, and Notes to the Financial Statements for
the year then ended, including a summary of significant accounting policies.
In our opinion:
The accompanying financial statements give a true and fair view of the financial position of the
Project, including the balance of the Designated Account as at 31 December 2023, funds
received and disbursements paid, movements of the Designated Account for the year then
ended in accordance with the basis of the principal accounting policies described in the Notes
to the Financial Statements and the provisions of the Credit Number 6055-VN and Credit
Number 6056-VN;
In addition, with respect to Statements of Expenditure, adequate supporting documents have
been fully maintained to support to the replenishment requests submitted to the World Bank.
The disbursement are eligible and in right purposes of the Credit Number 6055-VN and Credit
Number 6056-VN.
Basis of Opinion
We conducted our audit in accordance with International Standards on Auditing ("ISAs"). Our
responsibilities under those standards are further described in the Auditors' Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of Project
Management Unit in accordance with the International Ethics Standards Board for Accountants'
Code of Ethics for Professional Accountants ("IESBA Code"), and we have fulfilled our other ethical
responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of the Project Management Unit for the Financial Statements
The Project Management Unit is responsible for the preparation of the Financial Statements in
accordance with the principal accounting policies described in Notes to the Financial Statements,
and for such internal control as management determines is necessary to enable the preparation of
Financial Statements that are free from material misstatement, whether due to fraud or error.
In preparing the Financial Statements, management is responsible for assessing the Project's
ability to continue as a going concern, disclosing, as applicable, matters relating to going concern
and using the going concern basis of accounting unless management either intends to cease
operations, or has no realistic alternative but to do so.
Auditor's Responsibilities 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 ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
Ll              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.
T:(84) 24 3824 1990 I F:(84) 24 3825 3973 I 1 Le Phung Hieu, Hanoi, Vietnam
aa--           AASC AUDITING FIRM                                                  4


As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Financial Statements, whether due
to fraud or error, design and perform audit procedures responsive to those 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 is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control;
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Project's internal control;
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Project Management Unit;
Conclude on the appropriateness of the Project Management Unit's use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Project's ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditors' report to the related disclosures financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditors' report. However, future events or conditions
may cause the Project to cease to continue as a going concern;                N
Evaluate the overall presentation, structure and content of the Financial Statements, including  -N
the disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with the Project Management Unit regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
C Limited
9 A SC
h Cuong                                 Nguyen Pham Hung
uty General Director                       Auditor in-charge
CPA Registered No.:                           CPA Registered No.:
0744-2023-002-1                               2893-2020-002-1
Hanoi, 20 November 2024
5


Vietnam Scaling Up Urban Upgrading Project - Long Xuyen City Sub-project                                Financial Statements
Credit Number 6055 - VN and Credit Number 6056 - VN                                              Year ended 31 December 2023
STATEMENT OF FUNDS AND DISBURSEMENTS
For the fiscal year ended 31 December 2023
Accumulated to      Year ended     Accumulated
Note        31/12/2022      31/12/2023    to 31/12/2023
VND              VND             VND
I. FUNDS
1. Funds from the World Bank                                        3     151,606,635,916  66,394,097,328  218,000,733,244
2. Funds from the Vietnamese Government                                   231,406,533,422   6,360,501,572  237,767,034,994
383,013,169,338  72,754,598,900  455,767,768,238
II. DISBURSEMENTS
1. Works                                                                  141,195,363,193  69,213,561,318  210,408,924,511
2. Consultants' services                                                   34,129,151,250   1,333,421,232   35,462,572,482
3. Incremental operating costs                                              6,943,463,841              -    6,943,463,841
4. Compensation and site clearance costs                                  186,634,096,734   7,355,484,385  193,989,581,119
5. Other costs                                                              2,126,246,844                  2,126,246,844
4     371,028,321,862   77,902,466,935  448,930,788,797
Ill. FOREIGN EXCHANGE RATE DIFFERENCE                                        531,053,949     (95,349,022)     435,704,927
IV. SURPLUS(DEFICIT)                                                      12,515,901,425  (5,243,217,057)  7,272,684,368
6


Vietnam Scaling Up Urban Upgrading Project
Long Xuyen City Sub-project                                 Financial Statements
Credit Number 6055 - VN and Credit Number 6056 - VN   Year ended 31 December 2023
STATEMENT OF FUNDS BALANCE
As at 31 December 2023
Note      31/12/2023      31/12/2022
VND             VND
Surplus
Surplus as at begining                           12,515,901,425  28,431,214,740
(Deficit) in the year                            (5,243,217,057)  (15,915,313,315)
Surplus as at closing                             7,272,684,368  12,515,901,425
Represented by:
Current assets                                   12,120,426,513  13,660,043,716
Cash on hand                                      7,492,111,487    854,122,760
Cash at bank, Treasury                      5     4,528,782,202  12,734,379,096
Other receivables                           6       99,532,824      71,541,860
Current liabilities                               4,847,742,145   1,144,142,291
Other payables                              7     4,847,742,145   1,144,142,291
Net worth                                         7,272,684,368  12,516,901,425
7


Vietnam Scaling Up Urban Upgrading Project
Long Xuyen City Sub-project                                  Financial Statements
Credit Number 6055 - VN and Credit Number 6056 - VN    Year ended 31 December 2023
STATEMENT OF DESIGNATED ACCOUNT
For the period:  From 01/01/2023 to 31/12/2023
Account number:  126001126868
Bank:           Vietnam Joint Stock Commercial Bank for Industry and Trade - An Giang Branch
Address:        No. 270 Ly Thai To, My Long Ward, Long Xuyen City, An Giang Province
Credit No:      6055-VN and 6056-VN
Note          USD            USD
PART A: ACTIVITIES
Opening balance                                                      343,008.34
Add: Total amounts deposited by the World Bank                      1,736,646.00
Deduct: Total amounts withdrawn                                    (1,909,532.23)
Closing balance                                                      170,122.11
PART B: RECONCILIATION
1. Amount advanced by the World Bank                                 425,525.89
2. Add: Amount supplemented by the World Bank                       1,736,646.00
3. Deduct: Amount recovered by the World Bank                      (1,632,433.91)
4. Present outstanding amount advanced to                             529,737.98
5. Closing balance                                                   170,122.11
6. Add:
Amounts withdrawn and not yet claimed        (i)     359,587.87                     0
Overseas bank charges                                    28.00
359,615.87        I
7. Total advances accounted for                                       529,737.98
(i) Amounts disbursed for Works.
iL


Vietnam Scaling Up Urban Upgrading Project - Long Xuyen City Sub-project                             Financial Statements
Credit Number 6055 - VN and Credit Number 6056 - VN                                            Year ended 31 December 2023
STATEMENT OF WITHDRAWALS AND RECONCILIATION OF FUNDS
Credit Number 6055-VN and Credit Number 6056-VN
For the fiscal year ended 31 December 2023
Withdrawal applications                 Amount claimed                   Amount received
Goods, Works,
Consultants'
services and
Non - consulting
No.               Date  Currency    Advance        services          Total  Date            Amount      Variances Note
(a)                      (b)         (b)-(a)
Credit No. 6055-VN
Designated account              2,712,546.00   1,992,021.78   4,704,567.78              1,736,646.00  (2,967,921.78)
34-LONGXUYEN   13/01/2023  USD  1,328,838.00     336,103.48    1,664,941.48 27/01/2023  1,328,838.00  (336,103.48)  [11
40-LONGXUYEN   08/10/2023  USD    407,808.00    1,296,330.43   1,704,138.43 18/10/2023   407,808.00  (1,296,330.43)  [11
41-LONGXUYEN   30/11/2023  USD    975,900.00     359,587.87    1,335,487.87                      -   (1,335,487.87)  [2]
Direct payment                           -   30,549,469,700  30,549,469,700           25,533,870,000  (5,015,599,700)
36-LONGXUYEN   15/06/2023  VND            -    8,549,700,800  8,549,700,800 06/07/2023  8,549,700,800          -
37-LONGXUYEN   07/07/2023  VND            -    3,464,973,500  3,464,973,500 27/07/2023  3,464,973,500          -
39-LONGXUYEN   11/09/2023  VND            -    5,940,376,200  5,940,376,200 28/09/2023  5,940,376,200          -
42-LONGXUYEN   05/12/2023  VND            -    4,414,795,000  4,414,795,000 27/12/2023  4,414,795,000          -
44-LONGXUYEN   07/12/2023  VND            -    3,164,024,500  3,164,024,500 27/12/2023  3,164,024,500          -
45-LONGXUYEN   20/12/2023  VND            -    5,015,599,700  5,015,599,700                      - (5,015,599,700)  [2]
Total in USD                    2,712,546.00    1,992,021.78   4,704,567.78             1,736,646.00  (2,967,921.78)
Total in VND                              -   30,549,469,700  30,549,469,700          25,533,870,000  (5,015,599,700)
[1] Total amount of USD 1,632,433.91 recovered by the World Bank in 2023.
12] Amounts disbursed/recovered by the World Bank in 2024.
9
.~ ....           . ...


Vietnam Scaling Up Urban Upgrading Project                  Financial Statements
FlLong Xuyen City Sub-project                                          FnnilSaeet
Credit Number 6055 - VN and Credit Number 6056 - VN  Year ended 31 December 2023
NOTES TO THE FINANCIAL STATEMENTS
For the fiscal year ended 31 December 2023
1. Background
Vietnam Scaling Up Urban Upgrading Project - Long Xuyen City Sub-project ("the Project") is
implemented under the Credit Number 6055 - VN and Credit Number 6056 - VN dated 29 June
2018 between the Government of the Socialist Republic of Vietnam and the International
Development Association ("IDA").
Total budget of the the Credit Number 6055 - VN and Credit Number 6056 - VN are respectively
SDR 103,200,000 and USD 100,000,000 for 7 sub-projects. In which, the credit amount allocated
to Long Xuyen City Sub-project are SDR 14,742,857 and USD 20,000,000 respectively.
The main objective of the Project is to improve access to basic infrastructure in low-income areas,
strengthen connectivity of key infrastructure networks, and at the same time enhance the capacity of
urban areas, on integrated urban planning to respond to climate change in the Participating Cities.
The Project includes the following components:
Component 1: Tertiary Infrastructure upgrading in low-income areas;
Component 2: Priority primary and secondary Infrastructure;
Component 3: Resettlement sites;
Component 4: Project Management support.
The Project officially came into operation since 24 December 2018 and was closed on 28 June 2024.
The Project is managed by Long Xuyen City Urban Upgrading Project Management Unit, and its
office is located at No.99, extended Nguyen Thai Hoc street, My Hoa ward, Long Xuyen city, An
Giang province.
2. Principal Accounting Policies
a. Basis of accounting                                                                1H
The annual accounting period commenced from the 1st January to the 31st December.
The financial statements are prepared under cash basis. Accordingly, receipts are recognized by
the Project when received, rather than the right to receive, and disbursements are recognized
when being paid, rather than the obligation to pay.
The financial statements are prepared in accordance with the requirements of the World Bank and
presented in Vietnam Dong (VND), except for the Statement of Designated Account and Statement
of Withdrawals and Reconciliation of Funds, which are prepared in United State Dollar (USD) and
Vietnam Dong (VND).
The principal accounting policies are summarized as below:
b. Foreign currencies
Funds received from the World Bank in foreign currencies are translated into VND using actual
exchange rates announced by the Vietnam Joint Stock Commercial Bank for Industry and Trade
- An Giang Branch at dates of funds received or at dates of direct payments made to
contractors/suppliers.
Transactions in foreign currencies are translated to VND under actual exchange rates of the
serving bank on their transaction dates. All exchange differences from these transactions are
recorded as "Exchange rate differences" account and presented as "Exchange rate differences"
on the Statement of Funds and Disbursements.
10


Vietnam Scaling Up Urban Upgrading Project
Long Xuyen City Sub-project                                 Financial Statements
Credit Number 6055 - VN and Credit Number 6056 - VN  Year ended 31 December 2023
c. Funds and Disbursements
Funds:
f  Funds received from the World Bank are recorded when remittance made into Designated
Account or direct payment made to contractors/suppliers;
o. Counterpart funds of the Vietnamese Government are recorded when payments are made
directly from the Vietnamese Government to contractors/suppliers of the Project or funds are
remitted for settlement of the Project's activities.
Disbursements:
i. Disbursements are recognized when payments are made by the Project to contractors/ suppliers.
d. Designated account
Designated Account is the deposit account in USD opened at Vietnam Joint Stock Commercial
Bank for Industry and Trade - An Giang Branch for the Project's activities. Payments made via
the Designated Account are for eligible expenditures of the Project in accordance with the
provisions of the Credit Number 6055-VN and Credit Number 6056-VN.
There is no interest with this account under prevailing rule.
3. Funds received from the World Bank
Year ended 31/12/2023     Accumulated to 31/12/2023
USD Equivalent to VND       USD  Equivalent to VND
Credit No. 6055-VN
Designated Account  1,736,646.00  40,860,227,328  3,328,041.00  77,309,574,603
(USD)
Direct payments (VND)            25,533,870,000              113,283,543,050
Credit No. 6056-VN
Designated Account                           -  1,185,287.37  27,407,615,591
(USD)
66,394,097,328             218,000,733,244


Vietnam Scaling Up Urban Upgrading Project
Long Xuyen City Sub-project                                Financial Statements
Credit Number 6055 - VN and Credit Number 6056 - VN  Year ended 31 December 2023
4. Disbursements
Disbursements by categories and funds
Year ended 31/112/2023
Credit         Credit
No.6055-VN     No.6056-VN  Counterpart fund      Total
VND            VND           VND            VND
Works            69,213,561,318                          -   69,213,561,318
Consultants'      1,096,779,232           -     236,642,000   1,333,421,232
services
Incremental                                -
operating costs
Compensation                               -   7,355,484,385  7,355,484,385
and site
clearance costs
Other costs
70,310,340,55035              7,592,126,385  77,902,466,935
Accumulated to 31/12/2023
Credit         Credit     Counterpart
No.6055-VN     No.6056-VN          fund          Total
VND            VND           VND            VND
Works           182,901,996,011  27,387,989,000  118,939,500 210,408,924,511
Consultants'      4,013,715,482            -  31,448,857,000  35,462,572,482
services
Incremental                               -    6,943,463,841  6,943,463,841
operating costs
Compensation                              - 193,989,581,119  193,989,581,119
and site
clearance costs
Other costs                                -   2,126,246,844  2,126,246,844
186,915,711,493  27,387,989,000 234,627,088,304 448,930,788,797
12


Vietnam Scaling Up Urban Upgrading Project
Long Xuyen City Sub-project                                 Financial Statements
Credit Number 6055- VN and Credit Number 6056 - VN   Year ended 31 December 2023
Disbursements by components and funds
Year ended 3111212023
Credit         Credit                        Total
No.6055-VN     No.6056-VN  Counterpart fund
VND            VND           VND            VND
Component 1:      9,550,132,398            -    3,576,281,752  13,126,414,150
Tertiary
infrastucture
Upgrading in Low
Income Areas
Component 2:     60,760,208,152            -    3,975,844,633  64,736,052,785
Priority Primary
and Secondary
Infrastucture
Component 3:                               -      40,000,000     40,000,000
Resettlement Sites
Component 4:                 -
Project
Mangement
Support
Investment                                                               -
preparation
70,310,340,55035              7,592,126,385  77,902,466,935    AM
Accumulated to 31/12/2023
Credit         Credit     Counterpart
No.6055-VN     No.6056-VN          fund          Total
VND            VND           VND            VND
Component 1:     23,334,379,961            -   39,091,093,105  62,425,473,066
Tertiary
Infrastucture
Upgrading in Low
Income Areas
Component 2:    160,664,870,880            -   90,168,568,523 250,833,439,403
Priority Primary
and Secondary
Infrastucture
Component 3:                 -  27,387,989,000  73,467,629,491 100,855,618,491
Resettlement Sites
Component 4:      2,916,460,652            -   10,140,431,185  13,056,891,837
Project
Mangement
Support
Investment                                 -   21,759,366,000  21,759,366,000
preparation
186,915,711,493  27,387,989,000 234,627,088,304 448,930,788,797
The Project's 100% eligible disbursements (including tax) in the categories of Goods, works,
consultants' services and non-consulting services are financed as the Credit No. 6055-VN and
the Credit No. 6056-VN.
13


Vietnam Scaling Up Urban Upgrading Project
Long Xuyen City Sub-project                                 Financial Statements
Credit Number 6055 - VN and Credit Number 6056 - VN  Year ended 31 December 2023
5. Cash at bank, Treasury
31/12/2023     31/12/2022
VND            VND
Designated Account (USD)                       4,131,419,195  8,143,011,439
Current accounts (VND)                              370,155        646,712
Cash at Treasury (VND)                           396,992,852  4,590,720,945
4,528,782,202  12,734,379,096
6. Other receivables
31/12/2023    31/12/2022
VND            VND
Advances to staff (i)                             98,166,979    70,452,572
Bank charges                                       1,365,845      1,089,288
99,532,824    71,541860
(i) Advances to the project staff for project management expenses
7. Other payables
31/12/2023    31/12/2022
VND            VND
Payable to Planning and Finance Department (i)   100,000,000    100,000,000
Payable of PMU's operating source for             98,365,245  1,019,541,480      A
other projects (i)
Tax payable on be half (ii)                       55,689,845     24,600,811
Payable of Contractor's Performance Security and  4,593,687,055         -
Environmental and Social Performance Security
4,847,742,145 1,144,142,291
(i) Borrowing funds to pay for project management expenses
(ii) Financial obligations on land arising in collected compensation for site clearance from people
to remit into the State budget
8. Subsequent events
There have been no significant events occurring after the reporting date, which would require
adjustments or disclosures to be made in the Financial Statements.
9. Corresponding figures
The corresponding figures are the financial statements for fiscal year ended 31 December 2022
which were audited by AASC Limited.
14


Vietnam Scaling Up Urban Upgrading Project
Long Xuyen City Sub-project                                  Financial Statements
Credit Number 6055 - VN and Credit Number 6056 - VN   Year ended 31 December 2023
10. Approval of the Financial Statements
The financial statements were approved by Project Management Unit for issuance on 20 November
B ANQUiN LY+
D)UAN
J     I~NNGCG(P  THI;
enNgoc Kinh                                 Nguyen Thi Phuong Anh
Director                                        Chief Accountant
An Giang, 20 November 2024
MT
Sc
15


(aasc
No.: 201124.002/BCTC.FIS2
INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL SYSTEM
To:       Long Xuyen City Urban Upgrading Project Management Unit
Vietnam Scaling Up Urban Upgrading Project - Long Xuyen City Sub-project
We have audited, in accordance with the International Standards on Auditing, the Financial
Statements of the Vietnam Scaling Up Urban Upgrading Project - Long Xuyen City sub-project
("the Project") for the fiscal year ended 31 December 2023 and issued the auditors' report thereon
dated on 20 November 2024 expressing an opinion on those Financial Statements.
In connection with our audit of the Financial Statements, we also examined the effectiveness of
internal control over compliance with requirements that could have a direct and material financial
effect on the financial statements as well as the internal control over financial reporting for the fiscal
year ended 31 December 2023.
Responsibilities of the Project Management Unit
The Project Management Unit is responsible for maintaining an effective internal control over
compliance with requirements that could have a direct and material financial effect on the financial
statements as well as the internal control over financial reporting.
Auditor's Responsibility
Our responsibility is to express an opinion on the effectiveness of internal control based on our
examination.
Our examination was conducted in accordance with the International Standard on Assurance  >
Engagements (ISAE) 3000 (Revised). 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 has maintained an effective internal control over compliance
with requirements that could have a direct and material financial effect on the financial statements
as well as internal control over financial reporting.
Our examination included obtaining an understanding, testing, and evaluating the design and operating
effectiveness of the internal control, and performing other procedures as we considered necessary in
the circumstances to obtain sufficient appropriate evidence to provide a basis for our opinion.
Because of the inherent limitations of internal control over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to
error or fraud may occur and not to be prevented or detected on a regular basis. In addition,
projections of any evaluation of the effectiveness of the internal control over financial reporting to
future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
LI
T:(84) 24 3824 1990 I F:(84) 24 3825 3973 I 1 Le Phung Hieu, Hanoi, Vietnam 14OL S
AASC AUDITING FIRM                                                  16


Auditors' opinion
In our opinion, the Project has maintained an effective internal control over misstatements that
could have a direct and material financial effect on the Project's Financial Statements for the fiscal
year ended 31 December 2023.
ited
CING TY
AAS
Cuong                                  Nguyen Pham Hung
Deputy General Director                       Auditor in-charge
CPA Registered No.:                            CPA Registered No.:
0744-2023-002-1                               2893-2020-002-1
Hanoi, 20 November 2024
[1
117


aasc
No.: 201124.002/BCTC.FIS2
INDEPENDENT AUDITORS' REPORT ON THE COMPLIANCE
To:       Long Xuyen City Urban Upgrading Project Management Unit
Vietnam Scaling Up Urban Upgrading Project - Long Xuyen City Sub-project
We have audited, in accordance with International Standards on Auditing, the Financial Statements
of the Vietnam Scaling Up Urban Upgrading Project - Long Xuyen City Sub-project ("the Project")
for the fiscal year ended 31 December 2023 and issued the auditors' report thereon dated on 20
November 2024 expressing an opinion on those Financial Statements.
In connection with the audit of the Financial Statements, we also performed procedures on the
Project's compliance with the Credit Number 6055 - VN and the Credit Number 6056 - VN, law
and regulations that have a direct and material effect on the Project's financial statements for the
fiscal year ended 31 December 2023 ("the Requirements").
Responsibilities of the Project Management Unit
The Project Management Unit is responsible for complying with the Requirements applicable to
the Project.
Auditor's Responsibility
Our responsibility is to express an opinion on the Project's compliance with the Requirements
based on our procedures. We limited our tests of compliance to the Requirements, and we did not
test compliance with all laws and regulations applicable to the Project.
We performed our work in accordance with the International Standard on Assurance Engagements
(ISAE) 3000 (Revised). 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 has complied with the Requirements.
An assurance engagement to report on the compliance with the Requirements at the Project
involves performing procedures to obtain evidence about whether the Project's activities are free of
material non-compliance with the Requirements, including obtaining an understanding of the
internal control relevant to the Project's compliance with the Requirements. The procedures
selected depend on the auditors' 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 financial effect on the Project's financial statements. Our procedures included testing the
compliance with the Requirements we consider necessary to provide a reasonable assurance that
the Requirements are complied by the Project.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
T:(84) 24 3824 1990 I F:(84) 24 3825 3973 I 1 Le Phung Hieu, Hanoi, Vietnam
AASCAUDITING FIRM                                                  18


Auditors' opinion
In our opinion, the Project has complied with the Requirements that could have a direct and
material financial effect on the Project's Financial Statements for the fiscal year ended 31
December 2023.
o     -ited
C ONG TY
IACH tHNHIEM HiUI UI
*HANG KIEM TO
I   AASC
DoIa      ong                                 Nguyen Pham Hung
, -eneral Director                          Auditor in-charge
Registered No.:                           CPA Registered No.:
0744-2023-002-1                               2893-2020-002-1
Hanoi, 20 November 2024
19
119