Audit and Compliance in Vietnam: A Guide for Foreign Investors
The Vietnamese Law on Accounting governs the principles for accounting, audits, and organizational structure, for businesses to stay compliant in Vietnam.
The tax year in Vietnam is determined according to the calendar year, and a Vietnamese-based auditing company must conduct the audit. The financial reports should then be submitted to the local tax authority, Ministry of Finance, and the statistics office 90 days before the end of the fiscal year.
Investors should be aware that the audit and compliance requirements are different for foreign-owned enterprises (FOE) and representative offices (RO).
Investors should also seek the advice of registered local advisors to ensure that all aspects of reporting are in compliance with prevailing local laws and regulations.
Fiscal periods
FOEs can choose from four fiscal periods with the 12-month period beginning on the first day of each quarter:
- January 1 – December 31;
- April 1 – March 31;
- July 1 – June 30; or
- October 1 – September 30.
Accounting standards
In addition to the Accounting Law, local and international companies are obligated to adhere to the Vietnamese Accounting Standards (VAS), which has been developed by the Ministry of Finance, when documenting financial transactions. The VAS provides guidelines for bookkeeping, financial reporting, and financial statement preparations.
There are industry-specific accounting guidelines for businesses engaging in insurance, securities, as well as funds management.
The government aims to replace VAS and adopt the International Financial Reporting Standards (IFRS) by 2025. The IFRS is a set of global accounting standards that apply to all financial reporting, quality control, and auditing standards relating to all profit-oriented entities…
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This article is produced by Vietnam Briefing, a premium source of information for investors looking to set up and conduct business in Vietnam. The publishing site is subsidiary of Dezan Shira & Associates, a leading foreign investment consultancy in Asia with over 27 years of experience assisting businesses with market entry, site selection, legal, tax, accounting, HR and payroll services throughout the region.