Vietnam's accounting requirements are set out in the Law on Accounting (Law 88/2015) and the Vietnamese Accounting System (VAS). Foreign-owned companies must maintain VAS-compliant books, prepare annual financial statements in Vietnamese, and have them audited by a Vietnamese-licensed audit firm. This guide explains how the requirements work in practice: what VAS is, what books must be maintained, how the financial statements are structured, when the statutory audit applies, how to reconcile to IFRS, and how to design the chart of accounts for both statutory and management reporting.
Vietnamese Accounting System (VAS)
The Vietnamese Accounting System (VAS) is the set of accounting standards issued by the Ministry of Finance. The standards are broadly similar to IFRS but with local differences in: revenue recognition (some industry-specific rules), lease accounting (operating vs finance), deferred tax (limited application), impairment of assets (different triggers), and government grants (specific Vietnamese rules).
VAS applies to all entities registered in Vietnam, regardless of ownership. Foreign-owned companies, joint ventures, and local companies are all subject to VAS for statutory reporting.
VAS standards are updated periodically. The Ministry of Finance has been progressively converging VAS with IFRS, with significant changes in 2025 (revenue recognition, leases, fair value measurement). Companies should monitor MoF updates.
Statutory books and records
Required statutory books include: cash book, general ledger, sub-ledgers (receivables, payables, fixed assets, inventory), tax registers, and supporting documentation. All books must be in Vietnamese.
Books can be maintained manually or via accounting software. Manual books must be bound and approved by the tax authority before use. Electronic books are permitted under specific conditions (digital signatures, audit trail, retention).
Books must be closed monthly within a reasonable time (typically 10–20 working days of month-end). Year-end close is tied to the statutory audit cycle (February–March for calendar-year companies).
Source documentation: invoices (VAT invoices for VAT-able purchases, ordinary invoices for non-VAT purchases), contracts, bank statements, expense approvals, payroll records. Source documents must be retained for at least 10 years.
Annual financial statements
Annual financial statements include: balance sheet (Form B01-DN), income statement (Form B02-DN), cash flow statement (Form B03-DN), notes to the financial statements, and a management report.
The financial statements must be in Vietnamese. English translations may be prepared for management purposes but are not the statutory version.
The financial statements are filed with the tax authority alongside the CIT finalisation return (within 90 days of fiscal year-end).
The financial statements are signed by the legal representative and the chief accountant (where appointed). The auditor's opinion is attached for entities subject to statutory audit.
Statutory audit obligation
A statutory audit is required for: joint-stock companies, limited liability companies with 2+ members, FDI companies, and entities in certain regulated sectors (banks, insurance, securities, etc.).
The auditor is appointed by the shareholders (or members) and is typically a Big-4 or top-tier Vietnamese-licensed audit firm. The appointment is for one year and renewable.
The audit is typically conducted February–March for calendar-year companies. Fieldwork is 2–6 weeks depending on the entity's size and complexity. The auditor issues an opinion (unqualified, qualified, adverse, or disclaimer) and a management letter.
An unqualified opinion is the standard expectation for a well-run company. Qualified or adverse opinions are serious and may trigger follow-up action by the GDT.
IFRS reconciliation
Most FDI parents report under IFRS (or US GAAP, FRS 102, etc.). The Vietnam VAS financial statements must be reconciled to the parent's reporting framework for group consolidation.
Common reconciliation items: revenue recognition (long-term contracts, multi-element arrangements), lease accounting (operating vs finance under VAS vs IFRS 16), deferred tax (limited under VAS), impairment of assets (different triggers), and government grants (different presentation).
The reconciliation is typically prepared quarterly, with adjustments documented in a reconciliation package. The package includes the VAS financial statements, the IFRS-equivalent statements, and the difference schedule.
Chart of accounts
The chart of accounts (COA) is the structured list of accounts used for recording transactions. A typical FDI COA has: 4-digit VAS code for statutory reporting, 6-digit group code for management reporting, mapped monthly.
The COA is designed at onboarding and reviewed quarterly. Common accounts: cash and banks, receivables, inventory, fixed assets, payables, short-term and long-term loans, equity, revenue, cost of goods sold, operating expenses, finance income/expenses, tax expenses.
Sub-ledgers track inter-company balances, fixed assets, and bank reconciliation details. The COA should align with the parent's reporting structure to enable seamless consolidation.
Record retention
Accounting records must be retained for at least 10 years. The retention period starts from the end of the fiscal year to which the records relate.
Records may be retained in electronic form under specific conditions: digital signatures, audit trail, GDT-recognised e-archive provider. The GDT can request access to electronic records during an audit.
Loss or destruction of records triggers penalties and may lead to a reconstructed assessment by the GDT, which is typically unfavourable to the taxpayer.
Records stored abroad are subject to specific rules: the GDT must approve offshore storage, and the records must be made available on request.
Common accounting mistakes
The most expensive accounting mistakes: (1) failing to maintain VAS-compliant books, (2) missing source documentation, (3) incorrect accruals and prepayments, (4) failing to reconcile inter-company balances, (5) ignoring the IFRS-to-VAS reconciliation.
The most common avoidable penalty: late filing of the annual financial statements with the tax authority. The penalty is small but signals poor compliance.
The most expensive avoidable penalty: qualified or adverse audit opinion. The GDT treats qualified opinions as a red flag and triggers deeper review.
Frequently asked questions
The most common questions our tax and accounting team receives about vietnam accounting requirements: vas, books, financial statements, audit.
What is VAS?
What is the difference between VAS and IFRS?
What books must a company maintain?
When is a statutory audit required?
How long does a statutory audit take?
Can English be used in financial statements?
What is the record retention period?
What is a qualified audit opinion?
What is the typical audit fee?
How is the IFRS reconciliation prepared?
This guide is published by Vietnam Tax Advisory. It is general in nature and based on publicly available Vietnamese law and GDT practice as of 18 June 2026. It does not constitute professional tax or legal advice. For advice specific to your situation, contact us via the contact page.