Vietnam

The financial reporting framework in the Socialist Republic of Vietnam is established under the Law on Accounting No. 88/2015/QH13, effective January 1, 2017. The Law on Accounting sets out the general requirements for maintaining accounting records and preparing financial statements for entities operating in Vietnam. The Ministry of Finance is the statutory authority responsible for issuing accounting standards and related regulations.

Vietnam Accounting Standards are issued by the Ministry of Finance and are based on earlier versions of International Financial Reporting Standards. Entities are required to prepare financial statements in accordance with Vietnam Accounting Standards and related guidance issued by the Ministry of Finance. In 2020, the Ministry of Finance approved a roadmap for the adoption of International Financial Reporting Standards. Under this roadmap, certain public interest entities and large enterprises are permitted to apply IFRS on a voluntary basis during a transitional period, with mandatory application for specified entities to be determined in accordance with the implementation plan issued by the Ministry of Finance. Other entities continue to apply Vietnam Accounting Standards unless they elect to apply IFRS under the approved framework.

The Law on Independent Audit No. 67/2011/QH12 governs audit activities in Vietnam. The law establishes the requirement for statutory audits for certain entities, including listed companies, credit institutions, foreign invested enterprises, and other entities as defined by legislation. The Ministry of Finance is responsible for regulating audit activities, including licensing auditors and audit firms and issuing auditing standards.

Vietnam Standards on Auditing are issued by the Ministry of Finance and are based on International Standards on Auditing. Audits of financial statements that are subject to statutory audit requirements must be conducted in accordance with Vietnam Standards on Auditing and applicable regulations issued by the Ministry of Finance.

The accountancy profession in Vietnam operates under a shared regulatory model. The Ministry of Finance serves as the primary regulatory authority for both accountants and auditors. The Ministry of Finance is responsible for issuing professional standards, establishing qualification and examination requirements, licensing auditors and audit firms, setting continuing professional development requirements, and conducting inspections and oversight activities.

The Vietnam Association of Certified Public Accountants operates as a legally recognized professional accountancy organization under the supervision of the Ministry of Finance. Membership in the Vietnam Association of Certified Public Accountants is mandatory for practicing auditors. Accountants who are not engaged in statutory audit may join professional organizations on a voluntary basis.

The Vietnam Association of Certified Public Accountants participates in professional development activities, supports implementation of professional standards, and carries out certain delegated responsibilities, including quality assurance reviews, in accordance with regulations issued by the Ministry of Finance.

Vietnam does not have a fully independent audit oversight authority separate from the Ministry of Finance. Oversight of the audit profession is carried out by the Ministry of Finance in accordance with the Law on Independent Audit No. 67/2011/QH12 and related implementing regulations.

Under the Law on Independent Audit, the Ministry of Finance is responsible for regulating audit activities, including the licensing and registration of auditors and audit firms, issuing auditing standards, conducting inspections of audit firms, and taking disciplinary measures in cases of non compliance with applicable laws and professional requirements. The Ministry of Finance also establishes requirements for continuing professional development and oversees the implementation of those requirements.

Quality assurance reviews of audit firms are conducted by the Vietnam Association of Certified Public Accountants under delegation from the Ministry of Finance. The Ministry of Finance retains supervisory authority over the quality assurance system and may conduct its own inspections as part of its regulatory oversight responsibilities.

Vietnam is not a member of the International Forum of Independent Audit Regulators.

Vietnam Association of Accountants and Auditors (VAA)

The Vietnam Association of Accountants and Auditors was established in 1994 under a Decision of the Prime Minister and operates in accordance with its Charter approved by the Ministry of Home Affairs. The Association is a professional organization representing accountants and auditors working in various sectors, including business entities, public sector institutions, and academia. Under its Charter and applicable regulations, the Vietnam Association of Accountants and Auditors promotes the development of the accounting and auditing profession, provides professional training and continuing professional development, contributes to research and policy consultation in the areas of accounting and auditing, and participates in the dissemination and implementation of professional standards issued by the Ministry of Finance. The Association does not have statutory authority to issue accounting or auditing standards or to license auditors. The Vietnam Association of Accountants and Auditors is an Associate of the International Federation of Accountants and is a member of the ASEAN Federation of Accountants.

Vietnam Association of Certified Public Accountants

The Vietnam Association of Certified Public Accountants was established in 2005 pursuant to the Law on Independent Audit No. 67/2011/QH12 and related regulations issued by the Ministry of Finance. The Association operates under the supervision of the Ministry of Finance and represents certified public accountants and audit firms engaged in statutory audit services. In accordance with the Law on Independent Audit and implementing regulations, the Vietnam Association of Certified Public Accountants participates in professional activities delegated by the Ministry of Finance, including organizing continuing professional development, supporting the implementation of auditing and ethical standards, conducting quality assurance reviews of audit firms, and contributing to consultation processes on draft legislation and professional standards. Membership in the Vietnam Association of Certified Public Accountants is mandatory for practicing auditors. The Association does not have independent authority to issue standards, as standard setting authority rests with the Ministry of Finance. The Vietnam Association of Certified Public Accountants is a Member of the International Federation of Accountants and is a member of the Confederation of Asian and Pacific Accountants.

In accordance with the Law on Independent Audit No. 67/2011/QH12, the Ministry of Finance is responsible for establishing and supervising the quality assurance review system for audit firms and auditors in Vietnam. Circular No. 157/2014/TT-BTC sets out the framework for inspection and quality assurance reviews conducted by the Ministry of Finance and other competent authorities.

Vietnam Standards on Quality Control were developed based on ISQC 1 and have been adopted nationally. However, the International Standards on Quality Management, including ISQM 1, ISQM 2, and the revised ISA 220, have not yet been adopted and made effective. Draft standards aligned with the new quality management framework remain under review.

Accordingly, while a mandatory QA review system exists for statutory audits, the system does not yet incorporate the full quality management framework in effect as of the time of the assessment. The extent of adoption is therefore assessed as Partially Adopted.

Current Status: Partially Adopted

The requirements for initial and continuing professional development for accountants and auditors in Vietnam are established under the Law on Accounting No. 88/2015/QH13, the Law on Independent Audit No. 67/2011/QH12, and related regulations issued by the Ministry of Finance. The Ministry of Finance establishes educational requirements, administers professional examinations, sets practical experience requirements, and prescribes continuing professional development obligations for practicing auditors.

Although the national framework establishes education, examination, and experience requirements for certification, the International Education Standards have not been formally adopted or incorporated into the legislative or regulatory framework. The SMO Action Plan indicates that the International Education Standards are not currently embedded in national education requirements.

Accordingly, the International Education Standards in effect as of the time of the assessment have not been adopted. The extent of adoption is therefore assessed as Not Adopted.

Current Status: Not Adopted

The Law on Independent Audit No. 67/2011/QH12 authorizes the Ministry of Finance to issue auditing standards applicable in Vietnam. Vietnam Standards on Auditing have been developed based on the clarified International Standards on Auditing and were issued together with Vietnam Standards on Quality Control aligned with ISQC 1.

The auditing standards in force are based on the clarified ISA platform and do not reflect the International Standards on Auditing in effect as of the time of the assessment. Draft standards aligned with ISQM 1, ISQM 2, and the revised ISA 220 have been submitted for approval but have not yet been promulgated.

Accordingly, because the national auditing standards are based on a pre-2018 version of International Standards on Auditing and do not reflect the ISA Handbook in effect as of the time of the assessment, the extent of adoption is assessed as Not Adopted.

Current Status: Not Adopted

Under the Law on Accounting No. 88/2015/QH13, the Ministry of Finance is responsible for establishing ethical requirements applicable to professional accountants in Vietnam. Professional accountancy organizations are not required to issue separate ethical codes.

The Ministry of Finance adopted the 2014 International Code of Ethics for Professional Accountants, which was issued through Circular No. 70/2015/TT-BTC and has remained in effect since 2015. Although subsequent editions of the International Code of Ethics, including the 2018 restructured Code and later revisions, have been translated and submitted for consideration, they have not yet been promulgated by the Ministry of Finance.

Accordingly, because a pre-2018 version of the International Code of Ethics has been adopted and the Code in effect as of the time of the assessment has not been adopted in its entirety, the extent of adoption is assessed as Not Adopted.

Current Status: Not Adopted

Public sector accounting standards in Vietnam are established by the Ministry of Finance under the Law on Accounting No. 88/2015/QH13 and related regulations governing public financial management. The Ministry of Finance is responsible for issuing accounting standards applicable to public sector entities.

In recent years, the Ministry of Finance has issued Vietnamese Public Sector Accounting Standards developed based on International Public Sector Accounting Standards. These standards are being issued in phases as part of a roadmap toward accrual-based public sector accounting reform. Additional standards remain under development and implementation timelines are determined by the Ministry of Finance.

Accordingly, because IPSAS have not been adopted in their entirety for all public sector entities and national standards are being implemented on a phased basis, the extent of adoption is assessed as Partially Adopted.

Current Status: Partially Adopted

The investigation and disciplinary framework applicable to professional accountants and audit firms in Vietnam is established under the Law on Independent Audit No. 67/2011/QH12 and related implementing regulations issued by the Ministry of Finance. The Ministry of Finance is responsible for oversight, investigation, and enforcement, including the imposition of administrative sanctions.

Recent legislative developments, including Law No. 56/2024/QH15 and Decree No. 228/2025/ND-CP, have strengthened enforcement provisions, including increased administrative penalties, expanded audit coverage, and extended statutes of limitation. The Ministry of Finance operates the investigation and disciplinary system and may impose sanctions on individuals and firms that fail to comply with professional and regulatory requirements.

VACPA participates in investigation and disciplinary processes under the supervision of the Ministry of Finance and contributes to quality assurance and compliance monitoring activities. However, the investigation and disciplinary system is primarily operated by the Ministry of Finance rather than independently by the professional accountancy organization.

While an operational investigation and disciplinary system exists for professional accountants and audit firms, there is no confirmation that the system incorporates all detailed SMO 6 requirements in effect as of the time of the assessment. Accordingly, the extent of adoption is assessed as Partially Adopted.

Current Status: Partially Adopted

Accounting standards in Vietnam are established under the Law on Accounting No. 88/2015/QH13. The Ministry of Finance is responsible for issuing accounting standards applicable to entities operating within the jurisdiction.

Under Decision No. 345/QÐ-BTC dated March 16, 2020, the Ministry of Finance approved a roadmap for the application of International Financial Reporting Standards in Vietnam. The roadmap includes a preparation phase, followed by a voluntary adoption phase for specified parent companies and certain foreign-invested entities. Future mandatory application is subject to further determination by the Ministry of Finance based on the evaluation of the voluntary phase.

Vietnamese Accounting Standards remain applicable for most entities, and IFRS Standards are not required for all domestic publicly accountable entities. International Financial Reporting Standards in their entirety and without modification in effect as of the time of the assessment have therefore not been mandated for all publicly accountable entities.

Accordingly, because IFRS Standards are permitted on a voluntary basis and are not required for all publicly accountable entities, the extent of adoption is assessed as Partially Adopted.

Current Status: Partially Adopted

Relevant Organizations

• Bahamas Institute of Chartered Accountants (BICA)

Relevant Legislation

• Bahamas Institute of Chartered Accountants Act, 2015
• Public Accountants Act, 1991
• Public Accountants Regulation (Rules of Professional Conduct), 1993

Relevant Publications

• BICA, SMO Action Plan, Month YEAR.
• International Monetary Fund, The Bahamas: Financial Sector Stability Assessment, 2013.
• IFRS Foundation, “IFRS Application Around the World—Jurisdictional Profile: Bahamas,” June 2016.