Summary Report on the Implementation of the 2015 Accounting Law (From 2017 to the present)

Dear: ………………………………………………………..

In implementation of Resolution No. 30/NQ-CP promulgating the Government's Action Program to implement the Conclusion of the Fourth Plenum of the 05th Central Committee of the Communist Party of Vietnam on strengthening Party building and rectification and the political system; resolutely preventing, repelling, and strictly handling cadres and Party members who have deteriorated in political ideology, ethics, and lifestyle, and exhibiting "self-evolution" and "self-transformation," and the Accounting and Auditing Strategy to 2030 issued with Decision No. 633/QĐ-TTg dated May 23, 2022, of the Prime Minister, the Ministry of Finance is developing a plan to submit to the Government to report to the National Assembly on including the draft Law amending and supplementing the Accounting Law into the National Assembly's legislative and ordinance drafting program for 2024.

To provide a basis for implementation, the Ministry of Finance has drafted a Report summarizing the practical implementation of the Accounting Law, which summarizes and evaluates the situation of implementing the Accounting Law, identifies existing shortcomings, limitations, and inadequacies in its implementation, and proposes necessary amendments and additions to suit practical realities.

We request your organization to provide feedback on the draft Report summarizing the practical implementation of the Accounting Law mentioned above. Specifically, please clearly state any existing problems or obstacles faced by your organization and propose concrete solutions for amendment and supplementation.

Please submit your suggestions to the Ministry of Finance before September 6, 2022, for compilation.

For further details, please contact the Ministry of Finance (Department of Accounting and Auditing Supervision): Mr. Phan Anh Quan – Tel. 024.22202828 (8637); Ms. Tran Huyen Thanh – Tel. 024.22202828 (8636).

We sincerely thank you for your cooperation./.

Recipients:
– As above;
– Minister (for reporting);
– Legal Department;
– Lưu VT, QLKT.

KT MINISTER
DEPUTY

Ta Anh Tuan 

LIST OF ORGANIZATIONS SUBMITTING COMMENTS ON THE FINAL ASSESSMENT OF THE IMPLEMENTATION OF THE ACCOUNTING LAW

I. MINISTRIES AND DEPARTMENTS

1. Ministry of Defence

2. Ministry of Public Security

3. Ministry of Foreign Affairs

4. Ministry of Interior

5. Ministry of Justice

6. Ministry of Planning and Investment

7. Ministry of Industry and Trade

8. Ministry of Agriculture

9. The Ministry of Transport

10. Ministry of Construction

11. Ministry of Natural Resources and Environment

12. Ministry of Information and Communications

13. Ministry of Labour, Invalids and Social Affairs

14. Ministry of Culture, Sports and Tourism

15. Ministry of Science and Technology

16. Ministry of Education and Training

17. Ministry of Health

18. State Bank of Vietnam

19. Government Inspectorate

20. Government Office

21. State Audit Office

22. State Capital Management Committee

II. LOCALITIES

63 provinces and centrally-administered cities.

III. UNIVERSITIES AND INSTITUTES

1. Finance Academy

2. National Economics University

3. Foreign Trade University

4. University of Commerce

REPORT

SUMMARY OF THE PRACTICAL IMPLEMENTATION OF THE 2015 ACCOUNTING LAW

(From 2017 to present)

The Accounting Law of 2015[1] effective from 2017, has approached more general accounting principles and practices, suitable to the conditions and circumstances of Vietnam; it serves as a basis for completing a full legal framework on accounting in a way that is closer to international practices, organizing the implementation of national and local state financial reporting, organizing the implementation of internal audits at enterprises, state agencies, and public service units; supporting and guiding small and micro enterprises to carry out appropriate and effective accounting work.

In implementation of the Government's Action Program in Resolution No. 30/NQ-CP dated March 11, 2022, and the Accounting and Auditing Strategy to 2030 issued with Decision No. 633/QĐ-TTg dated May 23, 2022, the Ministry of Finance reports on the practical implementation of the Accounting Law from 2017 to the present, and proposes additional and amended contents to implement the plan for drafting the Law amending and supplementing the 2015 Accounting Law, as follows:

Part I

LEADERSHIP, DIRECTION, AND ORGANIZATION OF THE IMPLEMENTATION OF THE ACCOUNTING LAW

1. Disseminating, publicizing, monitoring, urging, providing legal support, and guiding the resolution of difficulties and obstacles in the implementation of the Accounting Law.

The Accounting Law No. 88/2015/QH13 was passed by the 13th National Assembly, 10th session, on November 20, 2015, and came into effect on January 1, 2017. The Ministry of Finance has chaired and coordinated with relevant agencies and organizations to carry out activities to disseminate accounting laws to businesses, organizations, and individuals through various forms such as: organizing conferences and seminars to disseminate legal documents; and publishing articles in the mass media.

The Ministry of Finance has also proactively monitored the implementation of the Accounting Law, promptly identifying and receiving feedback from accounting units to provide guidance on resolving and addressing difficulties and obstacles in the practical implementation of the Law. In addition, the Ministry of Finance has actively and proactively coordinated with other organizations and units in training and providing legal support to accounting units in complying with regulations on accounting, finance, budget, taxation, and other laws. These activities have helped the Accounting Law quickly take effect and become a part of daily life, contributing to the development of the Vietnamese accounting sector in particular and the Vietnamese economy in general.

Regarding accounting units, according to the Accounting Law, they all have an accounting department, with assigned accountants, chief accountants, or accounting managers to advise and consult with enterprise, agency, and unit leaders on the application and implementation of the law. These matters not only relate to accounting but also include other relevant issues such as regulations on budget, finance, and taxation; developing internal procedures and regulations; signing and executing contracts; declaring and paying taxes and insurance; and making payments to partners, buyers, and sellers, etc. This helps accounting units fulfill their responsibilities and obligations to the state, employees, and relevant parties in accordance with the law.

2. Directing and organizing the issuance of detailed regulations and guidelines for implementation.

Following the promulgation of the 2015 Accounting Law, the Prime Minister signed Decision No. 196/QD-TTg dated February 01, 2016, promulgating the list and assigning the lead agencies for drafting government and Prime Minister's documents detailing the implementation of laws passed at the 10th session of the 02th National Assembly, including the Accounting Law. The implementation of the Accounting Law has been closely supervised by the Government and the Ministry of Finance through the issuance of decrees and circulars. Since the promulgation of the Accounting Law, numerous documents have been issued by the Government and the Ministry of Finance providing guidance on its implementation, including 05 government decrees and 39 circulars from the Ministry of Finance (see attached appendix).

The aforementioned legal documents have comprehensively covered legal issues in the field of accounting, are quite consistent with practice, and have established a solid legal framework, contributing to the development of accounting activities.

Overall, the detailed implementing guidelines for the Accounting Law were issued promptly, ensuring the set schedule and establishing a comprehensive and consistent legal framework for accounting, in line with other relevant legal documents. These documents, in addition to accounting objectives, also aim to simplify administrative procedures, apply information technology, reduce costs for accounting units and related parties, and are consistent with the country's socio-economic development and international standards and practices. This contributes to bringing the Accounting Law into practice and ensures consistency and effectiveness in its application.

Part II

EVALUATING KEY RESULTS IN THE IMPLEMENTATION OF THE ACCOUNTING LAW

1. Overall assessment

The promulgation of the Accounting Law and its guiding documents over the past nearly six years has created a legal basis for accounting to fulfill its role as an important economic management tool and to create an information system on economics, finance, and budget, serving the economic management and decision-making of the State as well as of each unit, organization, and enterprise. This has contributed to the successful implementation of key solutions for directing and managing the socio-economic development plan according to the Socio-Economic Development Strategy and the Government's Resolutions on key tasks and solutions for directing and managing the implementation of the socio-economic development plan.

The 2015 Accounting Law is a detailed regulation law, inherited from the 2003 Accounting Law, with amendments and additions to some new contents to suit the actual conditions of the economy and society. The detailed regulations include general provisions; accounting work including accounting documents, accounting accounts and accounting books, financial statements; accounting audits; asset inventory, preservation and storage of accounting documents; accounting work in cases of division, separation, merger, acquisition, conversion of type or form of ownership, dissolution, cessation of operations, bankruptcy of accounting units; organization of accounting departments and accounting personnel; accounting service business activities; and state management of accounting.

Accordingly, the 2015 Accounting Law has introduced several fundamental changes compared to the 2003 Accounting Law. For example, the accounting principles section now addresses "fair value" to provide a basis for applying international financial reporting standards in enterprises; it also promulgates relevant accounting standards in this field, including standards on financial instruments, insurance contracts, fixed assets, and investment properties. Furthermore, the 2015 Accounting Law also includes provisions on state financial reporting and internal auditing. These are new issues that the Government has guided and implemented in relevant units over the past period.

To implement the Accounting Law, the Government issued Decree No. 174/2016/ND-CP dated December 30, 2016, detailing several provisions of the Accounting Law regarding accounting work, accounting organizational structure and accounting personnel, accounting service business activities, cross-border accounting service provision, and professional accounting organizations. These are essential provisions, entrusted to the Government for guidance by the Accounting Law to ensure a solid basis for implementation.

Furthermore, the Government has issued Decree No. 41/2018/ND-CP dated March 12, 2018, on administrative sanctions in the field of accounting and independent auditing, which stipulates administrative violations, statute of limitations for penalties, forms of penalties, penalty levels, remedial measures, authority to draw up violation reports, and authority to impose administrative sanctions in the field of accounting and independent auditing.

2. Evaluating the implementation of certain specific provisions in the Accounting Law

2.1. Regarding the content of accounting work

Accounting work encompasses activities such as organizing the collection of accounting information based on accounting documents and records; organizing the classification and recording of data in the unit's accounting database according to the accounting system and ledgers; and organizing the provision of information through financial statements and settlement reports. Accounting regulations fully define the content of accounting work applicable to each type of unit in the field of corporate and state accounting. Accordingly, accounting units implement accounting regulations as prescribed, complying with the provisions of the Accounting Law regarding accounting documents, accounting accounts, ledgers, and financial reports.

Regarding corporate accounting, the Ministry of Finance has issued circulars guiding the general accounting system for units of different types and sizes. These regulations are consistent with the system of 26 Vietnamese accounting standards issued by the Ministry of Finance. Currently, the Ministry of Finance is drafting a corporate accounting system, with additional and revised content to suit practical realities and management requirements.

In the field of state accounting, state accounting units implement accounting regulations appropriate to each sector, such as the accounting regime for administrative and non-business units, the accounting regime for public investment project management boards, the accounting regime for the state budget and treasury operations, the accounting regime for domestic taxes, the accounting regime for tax and other revenues from import and export goods, the accounting regime for public debt, the accounting regime for social insurance and health insurance, etc. These accounting regimes all guide units in the field of state accounting in preparing their financial statements in accordance with the Accounting Law.

2.2. Regarding accounting audit work

The Accounting Law specifically stipulates the competent authorities for inspecting accounting work, covering all units from the central to local levels. It also specifies the content of accounting inspections, the inspection timeframe, the rights and responsibilities of the inspection team, and the rights and responsibilities of the inspected accounting unit. These regulations serve as the basis for ministries, sectors, and localities to organize accounting inspections in accordance with their organizational structure, operational capabilities, and management requirements.

In the field of corporate accounting, the inspection and supervision of the implementation of accounting standards and regulations in enterprises aims to innovate and improve the efficiency of business operations, serving the management and supervision of state capital investment in enterprises. Supervision is also carried out through activities such as auditing financial statements, analyzing, evaluating, and classifying enterprises, inspecting and supervising the implementation of corporate financial mechanisms and policies, and publicly disclosing information on business results and the financial situation of enterprises. These activities are effectively maintained. Requirements for inspecting and supervising the enforcement of accounting laws and regulations, and conducting accounting audits, are implemented according to the provisions of the Accounting Law, Decree No. 174/2016/ND-CP guiding the Accounting Law, and guiding circulars of the Ministry of Finance. Authorized accounting inspection agencies such as state inspectorates and auditors directly carry out the tasks of inspecting and supervising the implementation of legal regulations on accounting.

Regarding state accounting, requirements for inspection and supervision of the implementation of accounting laws and regulations, and accounting audits are carried out according to the provisions of the Accounting Law, Decree No. 174/2016/ND-CP, and the accounting regulations to which the unit is subject. Currently, the supervision of the implementation of accounting laws and regulations at state accounting units is directly carried out by competent accounting audit agencies such as the State Inspectorate and State Audit Office. In addition, units using state budget funds also conduct self-audits according to the guidance in Decision No. 67/2004/QD-BTC dated August 13, 2004, of the Minister of Finance on the promulgation of the Regulation on self-audit of finance and accounting at agencies and units using state budget funds.

2.3. Regarding asset inventory, preservation, and storage of accounting documents.

The Accounting Law stipulates the circumstances under which asset inventory must be conducted, the main contents of preserving and storing accounting documents, including the document retention period, and the responsibilities of the accounting unit in case of loss or destruction of accounting documents.

Specific provisions regarding the preservation and storage of accounting documents are stipulated in Government Decree No. 174/2016/ND-CP dated December 30, 2016, which details certain articles of the Accounting Law, serving as the basis for organizations to implement regulations for both paper and electronic data documents.

2.4. Regarding accounting work in cases where the accounting unit is divided, separated, merged, acquired, changes its type or form of ownership, is dissolved, ceases operations, or goes bankrupt.

The Accounting Law clearly stipulates the scope of work in specific cases, providing a basis for organizations to carry out activities when they arise. When such situations occur in practice, organizations, based on the provisions of the Accounting Law, have organized and carried out accounting work, implemented financial plans, and completed relevant documents to conclude operations at the old units and organize operations at the new units in accordance with the law.

2.5. Regarding the organization of the accounting system and accounting personnel.

The Accounting Law clearly stipulates that accounting units must organize their accounting system, appoint accounting personnel, or hire accounting services; the organization of the accounting system, the appointment of accounting personnel, chief accountants, accounting managers, or the hiring of accounting services and chief accountants shall be carried out in accordance with the Government's regulations. Regarding the legal representative, the Law also stipulates the responsibility of organizing the accounting system, appointing accounting personnel, or deciding to hire accounting service businesses or accounting service sole proprietorships in accordance with the provisions of the Accounting Law. Based on these regulations, all accounting units must organize their accounting system and appoint a head of the accounting system according to the standards and conditions stipulated in the Accounting Law.

Furthermore, the Law also stipulates that accounting units may enter into contracts with accounting service businesses or accounting service sole proprietors to hire accounting services or chief accountant services in accordance with the law.

2.6. Regarding accounting services business activities
The 2015 Accounting Law reflects the provisions on accounting services in the context of integration. With the goal of economic integration in general and the accounting field in particular, the Law's regulations are fundamentally comprehensive and clear, creating favorable conditions for the formation and development of accounting service businesses. With the implementation of the Accounting Law, the Vietnamese accounting services market has achieved remarkable results, gradually meeting the practical requirements of the socio-economic landscape.

However, it can be assessed that the number of accounting service businesses registered to operate is limited and the scale is still quite small because it is just starting out. Although the number of newly established businesses has increased every year[2], the number of new customers only reached 10.970 customers in 2020, an increase of 48% compared to 2019.

2.7. Regarding state management activities

The Accounting Law stipulates that the Government shall uniformly manage the state administration of accounting. The Ministry of Finance is responsible to the Government for the state management of accounting, and has the following tasks and powers: developing and submitting to the Government for decision strategies and policies for accounting development; developing and submitting to the Government for promulgation, or promulgating within its authority, legal documents on accounting; granting, re-granting, and revoking Certificates of Registration for Accounting Services and Certificates of Eligibility for Accounting Services Business; suspending the practice of accounting services and suspending the business of accounting services; regulating the examination, granting, revoking, and managing accounting certificates; conducting accounting audits; auditing accounting service activities; monitoring compliance with accounting standards and accounting regulations; regulating the updating of knowledge for practicing accountants; organizing and managing scientific research on accounting and the application of information technology in accounting activities. Inspect, audit, resolve complaints and denunciations, and handle violations of accounting laws;

Ministries and ministerial-level agencies, within their assigned duties and powers, are responsible for coordinating with the Ministry of Finance to carry out state management of accounting in the sectors and fields under their responsibility.

Provincial People's Committees, within their assigned duties and powers, are responsible for the state management of accounting at the local level.

With the aforementioned regulations, coordination between the Ministry of Finance and related units has not been truly effective, regular, or continuous. Therefore, solutions need to be studied to further improve coordination between ministries and ministerial-level agencies with the Ministry of Finance, in accordance with the tasks and powers of each unit as stipulated by law.

2.8. Regarding the accounting standards system

a) Regarding enterprise accounting standards, between 2000 and 2005, the Ministry of Finance issued 26 enterprise accounting standards. This system of 26 accounting standards and accounting regulations, applicable to all enterprises in all sectors and economic components operating in Vietnam, has significantly contributed to the management and operation of enterprises, reflecting many transactions of the market economy and aligning with the State's management requirements during the period of economic reform and integration into the global economy.

However, during the period 2011-2020, these standards were not fully updated and promulgated in accordance with international standards. Therefore, in response to the demands of the socio-economic landscape, economic integration, and the development of information technology, on March 16, 2020, with the approval of the Prime Minister, the Minister of Finance issued Decision No. 345/QD-BTC approving the Project on the Application of Financial Reporting Standards in Vietnam, which includes the following two objectives:

– Develop plans, roadmaps, and announce and support the application of International Financial Reporting Standards (IFRS) in Vietnam for specific target groups, in accordance with international practices, with the aim of enhancing the transparency and integrity of financial reporting and improving the accountability of businesses to users of financial reports.

– Promulgate and implement a new system of Vietnamese Financial Reporting Standards (VFRS) based on the principle of maximizing the adoption of international practices, while being consistent with the specific characteristics of the Vietnamese economy and the needs of businesses, and ensuring feasibility during implementation.

b) Regarding public accounting standards, on July 31, 2019, the Minister of Finance issued Decision No. 1299/QD-BTC approving the Project for the development and publication of public accounting standards in Vietnam, including the following objectives:

– Research, develop, issue, and publish the Vietnamese Public Sector Accounting Standards (VPSAS) system based on International Public Sector Accounting Standards. The Vietnamese Public Sector Accounting Standards system, applicable to accounting units in the public sector, must ensure the country's economic integration requirements; be consistent with reforms and innovations in Vietnam's economic management and public finance management policies; and serve as a basis for providing timely and accurate financial information to enhance the capacity, efficiency, and transparency in managing government resources.

– The research, development, and publication of the Vietnamese public accounting standards system is linked to the implementation of the project to build a model for preparing state financial statements; serving as the basis and foundation for the system of state financial mechanisms and policies with related legal documents such as the Law on State Budget; the Law on Management and Use of Public Assets; the Law on Public Debt Management; the Law on Management and Use of State Capital Invested in Production and Business at Enterprises; the Law on Securities… which have been and are being reformed to conform to international standards and practices.

– The Vietnamese public accounting standards system serves as the basis for issuing a system of accounting regulations that provide specific guidance suitable for each type of unit and organizational characteristic, in relation to policies and mechanisms on public finance and the state budget.

According to the roadmap of the Project on the Publication of Vietnamese Public Accounting Standards, 21 Vietnamese public accounting standards will be issued and published from 2020 to 2024. In implementing the plan of the Project, by July 2022, the Minister of Finance had issued a Decision to publish 11 Vietnamese public accounting standards.

2.9. Regarding state financial reporting
In implementing the Accounting Law, the Ministry of Finance has developed a Government Decree and guiding documents for preparing state financial statements based on the consolidated financial statements of state agencies, public service units, economic organizations, and other relevant units in the state sector from the 2018 fiscal year. These reports are used to summarize and explain the state financial situation, the results of state financial operations, and cash flows from state financial activities nationwide and at the local level.

Essentially, state financial reports provide information on the state budget revenue and expenditure, state financial funds, public debt, state capital in enterprises, assets, sources of capital, and the use of state capital. However, the information in state financial reports needs to be improved to be more complete and accurate.

2.10. Regarding internal audit

Article 39 of the Accounting Law stipulates internal control and internal auditing, assigning the Government the responsibility to provide detailed regulations on internal auditing in enterprises, state agencies, and public service units. In response to this requirement, the Government issued Decree No. 05/2019/ND-CP dated January 22, 2019, regulating internal auditing in ministries, ministerial-level agencies under the Government; People's Committees of provinces and centrally-administered cities; large-scale public service units that meet the necessary conditions; and enterprises, based on the principles of operational independence, efficiency, and suitability to the organizational structure of each unit. The Ministry of Finance has also issued circulars guiding internal auditing standards and model regulations on internal auditing for these units.

The entities subject to these regulations are required to establish an internal audit department to: Check the suitability, effectiveness, and efficiency of the internal control system; Check and verify the quality and reliability of economic and financial information in financial statements and management accounting reports before submission for approval; Check compliance with operating and management principles, compliance with laws, financial and accounting regulations, policies, resolutions, and decisions of the accounting unit's leadership; Detect loopholes, weaknesses, and fraud in the management and protection of the unit's assets; and propose solutions to improve and perfect the management and operational systems of the accounting unit.

2.11. Regarding the activities of professional organizations
Currently, there are two professional accounting and auditing organizations: the Vietnam Association of Accountants and Auditors (VAA) and the Vietnam Association of Certified Public Accountants (VACPA). Members of both organizations are accountants and auditors working in agencies, organizations, and businesses in Vietnam. Participation in both professional associations is voluntary and not compulsory.

Professional organizations serve as an important bridge between state agencies, businesses, and society; they perform the function of social critique and participate in the drafting of legal documents, reflecting inadequacies and obstacles in law enforcement. Through the activities of professional organizations, the functions and tasks of state management and professional management have become more clearly defined and distinguished. This is an objective reality, stemming from international practice and the necessity of the reform, opening up, and international integration process for the accounting sector in Vietnam.

In recent years, the Ministry of Finance has strengthened state management of accounting based on reforming operational mechanisms and improving the quality of professional management in line with international practices. Maintaining close cooperation between state management agencies and professional organizations aims to enhance the supervision of accounting practice quality, ensuring that practice complies with legal regulations and raising the quality of accounting service providers to the level of developed countries in the region and the world.

2.12. Regarding accounting human resources
We have trained, built, and developed a team of accountants in the fields of state accounting and corporate accounting; a team of auditors and practicing accountants with high professional qualifications, ethics, and professional responsibility. For accounting personnel in the state sector, in addition to meeting general criteria in the field of accounting, they must also have a thorough understanding of specific financial mechanisms in the field of public finance, regulations on domestic state budget management, sources of loans, aid, public investment, etc.

Regularly innovate the methods and training programs for accounting at training institutions; reform regulations and the way accounting examinations are organized. Organize training courses to enhance the knowledge of accounting staff and professionals; update the knowledge of accounting practitioners. The annual supplementary resources from training institutions, universities, and colleges specializing in accounting are numerous and of high quality, with training programs increasingly aligned with practical requirements.

As of December 2021, the number of certified accountants was 1.091, of which 419 were working in accounting service businesses (accounting for 38% of those with certified accountant status).

All practicing accountants hold a bachelor's degree or higher in finance, accounting, auditing, banking, etc., have at least 3 years of practical experience, and have passed a national-level examination to obtain an accountant or auditor certificate. With their work experience and certification, practicing accountants possess comprehensive knowledge of economic law, corporate finance, tax policies, and accounting and auditing. To ensure the quality of services provided, practicing accountants must update their knowledge annually according to the prescribed schedule.

2.13. Regarding international cooperation in the field of accounting
After more than 20 years of integration in the accounting field, Vietnam has undergone fundamental changes in its legal framework, aiming to develop the accounting and auditing profession and services. In practice, Vietnam has established relationships and cooperation with international accounting organizations and countries through agreements signed under the WTO Agreement and the ASEAN Agreement; participation in the ASEAN Coordinating Committee on Professional Accountants Standards; and membership in the ASEAN Federation of Accountants (AFA), the Asia-Pacific Federation of Accountants (CAPA), and the International Federation of Accountants (IFAC).

The Ministry of Finance and professional organizations regularly participate in international and regional conferences and seminars on accounting; participate in signing the ASEAN Mutual Recognition Agreement on Accounting Services; participate in the annual United Nations Conference on Trade and Investment (UNTAC) in Switzerland; and are members of the Asia-Oceania Accounting Standards Group (AOSSG).

Maintain activities to strengthen coordination with international professional organizations operating in Vietnam such as: ACCA, CPA Australia, ICAEW; the World Bank (WB), the Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA)… to support and promote the development of accounting activities. Participate in the meeting of the Emerging Economies Group (EEG).

2.14. Regarding the application of information technology and other activities
In various units, organizations, and businesses, information technology applications have been implemented in management activities and accounting work, in line with the development of the 4.0 technological revolution.

At state management agencies, state budget revenue and expenditure units have implemented substantive administrative reforms with specific and practical solutions; deployed and applied online public services for administrative procedures in the accounting field at the highest level, in accordance with the conditions; and built and compiled data to publicly disclose information on accounting practice to serve the needs of organizations and individuals.

At units, organizations, training institutions, and professional organizations, apply technology in research and training activities; accelerate the digitalization process towards digital transformation in the accounting field in a suitable and effective manner.

Part III

LIMITATIONS AND SHORTCOMINGS IN THE IMPLEMENTATION OF ACCOUNTING LAW

1. The provisions of the Accounting Law have lagged behind reality.

– The accounting environment in Vietnam is constantly changing. Market opening and international integration require timely adjustments to financial and accounting policies and mechanisms; adapting them to various economic sectors, including wholly foreign-owned enterprises and branches of foreign businesses in Vietnam; and deepening international integration commitments, leading to the expansion of business operations overseas. Therefore, accounting regulations need to increasingly align with international practices and standards.

– The scope and subjects of accounting activities are very broad, encompassing units in the public sector and the business sector, with varying scales, organizational characteristics, and levels of state ownership. Therefore, some regulations need to be comprehensive and reasonable. In some cases, more specific regulations are necessary to avoid difficulties in implementation. These regulations can be outlined in guiding documents for the Law; however, the Accounting Law itself needs to include relevant regulations appropriately. For example, regulations on the organization of the accounting department, the titles of accounting personnel, including the chief accountant, and the relationship between the head of accounting and the leadership and related departments within the unit have encountered difficulties, requiring principled regulations for implementation.

– The sense of responsibility and compliance with the law among accounting units, heads of accounting units, and accounting staff in these units is not strict enough, leading to non-compliance with regulations on financial and accounting management, resulting in violations that require handling. Errors can arise from subjective and objective causes; the lack of responsibility towards accounting work leads to financial reporting quality that does not meet requirements, and some errors even stem from subjective reasons on the part of the accounting unit itself and its head. Some accounting units want to have "beautiful" financial statements for various purposes. Therefore, many units have deliberately violated the regulations of accounting standards and accounting systems when preparing and presenting financial statements, resulting in financial statements that do not accurately reflect the unit's financial situation, with dishonest or concealed information.

– The legal framework related to accounting, across different fields, still exhibits certain differences and inconsistencies due to the requirements and nature of management activities. Differences in policy mechanisms related to tax policies or other regulations lead to entities seemingly focusing only on complying with tax policies and completing procedures to fulfill tax obligations, paying less attention to complying with accounting regulations to provide financial information as required by the Accounting Law and accounting standards.

– The technological revolution, along with the demands of digitalization, especially digital transformation, has led to accounting regulations in the current Accounting Law not keeping pace with reality. Units have reported difficulties in signing documents, circulating and processing documents, and storing accounting records, etc. Although economic transactions conducted electronically are currently governed by the Law on Electronic Transactions and other specialized laws, the Accounting Law also needs regulations to clarify and harmonize these provisions with the Law on Electronic Transactions and other relevant legal regulations, and to align with the digital transformation process.

– Current accounting software is quite diverse, with varying quality. This is due to the experience and capabilities of the software providers; the ability of accounting units to understand and specify technical requirements to the software providers; and the understanding and use of applications by accounting staff and employees of accounting units. This reality necessitates appropriate regulations to ensure the quality of accounting software and system applications used by accounting units in their accounting and management work.

2. Some provisions of the Accounting Law have revealed shortcomings and deficiencies.

Despite the significant achievements mentioned above, the 2015 Accounting Law, or more broadly, accounting practices in Vietnam, still face certain difficulties and limitations, specifically:

– The Accounting Law stipulates that assets and liabilities are initially recognized at their original cost. After initial recognition, for certain types of assets or liabilities whose value fluctuates frequently with market prices and whose value can be reliably reassessed, they are recognized at fair value at the end of the financial reporting period. This regulation aims to conform to international practices and fully reflect the value of assets and liabilities. However, in practice, there are still many difficulties in implementation, and therefore, the relevant conditions need to be clearly defined in order to successfully implement recognition at fair value.

– Regarding accounting regulations, according to the Accounting Law, the Ministry of Finance is the agency responsible to the Government for state management of accounting, and therefore has the authority to issue circulars and guiding documents as a specialized state management agency. However, in practice, the system of credit institutions still applies its own accounting system, with contents that have not been updated in a timely manner. Considering the nature of their operations, credit institutions are also businesses with the purpose of conducting business in the monetary and credit sectors, and can be classified under the corporate accounting sector; however, they also have their own unique characteristics due to the nature of their operations. Unifying the accounting system is essential, encompassing aspects such as accounting documents, accounting chart of accounts, accounting books, and financial statements. Therefore, this content needs to be studied and considered to establish unified and appropriate regulations.

– Several regulations regarding accounting practices, from documentation, accounts, accounting books, financial statements, and management reports, need to be reviewed and evaluated to ensure appropriateness. For example, regulations concerning financial statements, such as those concerning content, format, and deadlines for public disclosure, often lead to differing interpretations during implementation, resulting in non-compliance in some cases; and different interpretations by those requiring information regarding access to publicly available financial statements.

– The process of digitalization and digital transformation, and the modernization of information technology in the accounting field, not only requires application in accounting units but also necessitates the amendment and supplementation of legal regulations on accounting to suit the electronic environment. For example, regulations on signatures, accounting record keeping, printing and storing electronic documents, and printing and storing accounting books need to be appropriate to save costs and avoid waste in the printing process while ensuring efficiency and security.

– Regulations concerning accounting units, accounting organizational structures, accounting standards and qualifications, and chief accountant standards and qualifications have encountered practical difficulties. For example, in state-owned accounting units, the arrangement of separate accounting departments, or those under the direct control of departments/divisions, the organization of dependent accounting units, and accounting reporting units, etc., always face difficulties regarding functions, responsibilities, the principle of non-overlapping duties, and the delegation of accounting tasks.

– The 2015 Accounting Law stipulates the conditions for conducting accounting services and organizational methods aimed at developing and improving service quality. However, in practice, shortcomings still exist in the business operations of accounting service enterprises, in business registration, and in the practice of accounting services. Therefore, although the service market has developed, it has not met expectations and the demands of reality. In addition, regulations regarding the responsibilities of both service providers and service recipients need to be clarified, especially for clients that are growing in both scale and number. Furthermore, regulations related to this content in other legal documents also lead to inconsistencies in implementation.

– Regarding professional accounting organizations, the Accounting Law clearly stipulates that these organizations are established and operate in accordance with the law on associations and are responsible for complying with the provisions of the law on accounting. These organizations provide training and update knowledge for accountants and practicing accountants, and perform certain tasks related to accounting activities as prescribed by the Government. However, these professional organizations have not yet developed into self-governing organizations operating in the accounting profession as in other countries, demonstrating an important role and coordinating with state management agencies in developing accounting standards and participating in monitoring the quality of accounting services provided by practicing accountants.

– Regarding the quality of accounting work, this is also a matter of concern. In the past, especially before the Accounting Law was promulgated and accounting regulations and standards were guided, the quality of accounting work was given importance. Legal representatives of accounting units paid attention to accounting organization, operational accounting, statistical accounting, and financial accounting; however, the quality of accounting still did not meet the requirements of management and the demands of society. Instances of dishonest and fraudulent accounting practices occurred and were dealt with by legal authorities; financial reports were not timely and lacked reliability. The reasons for the above shortcomings stem from a lack of legal compliance, which requires comprehensive guidance and strict penalties for violations.

3. Relevant legal regulations have changed.

– Law No. 38/2019/QH14 on Tax Administration, passed by the National Assembly on June 13, 2019, and effective from July 1, 2020, stipulates the application of electronic invoices and documents. The basic content is that businesses must use electronic invoices in transactions involving the sale of goods and provision of services to help overcome fraud in the use of paper invoices, reduce costs for taxpayers, enhance the competitiveness of the entire economy, and build a database of invoices to serve the development of electronic tax management. It also regulates the principles of invoice creation, management, and use; the application of invoices when selling goods and providing services; and the database of electronic invoices and documents…

The above regulations take effect from July 1, 2022; accordingly, agencies, organizations, and individuals are encouraged to apply the provisions on electronic invoices and documents of this Law before July 1, 2022. Based on the provisions of the Law on Tax Administration No. 38/2019/QH14 and related legal documents (Law on Value Added Tax, Law on Accounting, Law on Electronic Transactions, Law on Information Technology), the Government has issued Decree No. 123/2020/ND-CP dated October 19, 2020, regulating invoices and documents; The Ministry of Finance issued Circular No. 78/2021/TT-BTC dated September 17, 2021, guiding the implementation of several provisions of the Law on Tax Administration dated June 13, 2019, and Government Decree No. 123/2020/ND-CP dated October 19, 2020, on invoices and supporting documents. Accordingly, a complete legal basis has been established for the nationwide deployment of electronic invoices and supporting documents, ensuring that electronic invoices will be implemented nationwide by July 1, 2022.

– The Law on Tax Administration has inconsistencies with the Law on Accounting regarding the signing of financial statements. According to the Law on Accounting, the preparer, chief accountant, and legal representative must sign the company's financial statements. However, when submitting financial statements to the tax authorities via the online declaration system, only the legal representative is required to digitally sign, not the accountant/chief accountant. This leads to a lack of consistency between the Law on Accounting and the Law on Tax Administration regarding the signing of company financial statements.

– The Law on Tax Administration stipulates the conditions for providing accounting services to micro-enterprises. Article 150 is supplemented with Article 70a of the Accounting Law, which stipulates that organizations providing tax procedure services may provide accounting services to micro-enterprises if they have at least one person holding an accounting certificate. Meanwhile, the Accounting Law requires accounting service businesses to have at least two practicing accountants with a capital contribution ratio of at least 50% of the charter capital, with the organization's capital accounting for a maximum of 35%, and must be granted a certificate of eligibility to conduct accounting services before providing accounting services. During the provision of accounting services, they must be subject to inspection by the Ministry of Finance regarding professional registration, service provision documents, notification and reporting obligations, etc. Furthermore, the two practicing accountants must be individuals holding professional accounting registration certificates, subject to strict procedures and conditions. However, for tax agents, only one person needs to have an accounting certificate; they do not need to register to obtain a professional accounting service certificate like practicing accountants in accounting service businesses, they do not have to pay certificate issuance fees, they are not required to comply with regulations on notification and reporting obligations, and local tax authorities will inspect tax agents as they would inspect taxpayers, etc.

The aforementioned issues need to be studied to ensure unified and consistent regulations on licenses for practicing and conducting accounting services, in a way that ensures similarity in requirements, procedures, and obligations of accounting service providers.

Part IV

PROPOSED AMENDMENTS AND ADDITIONS

1. Perspectives and objectives

1.1. Perspective

– Recognizing accounting as a crucial management tool in the new stage of socio-economic development of the country, it is necessary to establish and improve the quality of accounting information so that accounting truly becomes an important economic management tool in creating an information system to serve the economic management and decision-making of the State as well as of each enterprise, unit, and organization.

– It is necessary to clearly define short-term and long-term objectives, systematically establish synchronized solutions to further improve the legal framework for accounting, apply standards and professional methods consistent with international practices with a suitable roadmap; strengthen the inspection and supervision of accounting activities to ensure compliance with accounting laws; improve the quality of training and development of human resources; develop and enhance the position of professional organizations; and apply information technology in the management and implementation of accounting regulations.

– Attention should be paid to strengthening and enhancing the role and capacity of state management agencies and professional organizations in formulating the legal framework, organizing implementation, and inspecting and monitoring compliance with accounting laws.

– Develop international integration activities, by implementing international practices to improve the quality of accounting information, contributing to enhancing competitiveness and meeting the requirements of international integration.

– It is necessary to recognize that the development and improvement of accounting processes and techniques must be consistent with the application of information technology, the digital transformation process, and the professional skills and expertise of human resources in units and organizations. Accordingly, appropriate solutions are needed to adapt to the digital transformation process, linked to digitalization activities to reform processes and related administrative procedures towards the goal of digital finance.

1.2. Objectives

– To complete the legal system on accounting in a comprehensive, consistent, and synchronized manner, in accordance with international practices and the conditions of Vietnam, in order to strengthen the role and responsibility of businesses, organizations, and individuals in improving the quality of operations, providing accounting information to serve management, operation, decision-making, and determining the obligations of agencies, businesses, and organizations.

– Develop a legal framework for applying International Financial Reporting Standards (IFRS) and updating the Vietnamese Financial Reporting Standards (VFRS) system based on international practices suitable to Vietnam's market economy; ensure the comparability of economic and financial information of enterprises and organizations in the economy; and facilitate attracting capital from domestic and foreign investors. Publish the Vietnamese public accounting standards system based on international public accounting standards and implement them in accordance with Vietnamese law.

– Develop mechanisms appropriate to the specific characteristics of the field of activity in order to:

+ Strengthen the operational capacity of accounting management and supervision agencies. Improve the effectiveness of accounting management and supervision at enterprises, accounting units, and accounting service providers.

+ Strengthen inspection and supervision activities and implement appropriate sanctions to ensure compliance with the law by accounting units and accounting service providers, thereby improving the quality of financial reporting and accounting services.

– Develop the market, improve the quality and diversify accounting products and services; restructure the demand and supply of accounting services in accordance with legal regulations and the needs of the socio-economic environment. Improve the quality and quantity of accounting experts and practitioners to provide high-quality services; deploy and expand accounting service provision activities to the international market.

– Develop accounting human resources in terms of both quantity and quality to meet practical requirements; Innovate the content, programs, and methods of training and developing human resources, combining theory and practice, and closely linked to the digitalization and digital transformation of accounting. Innovate the process and methods of issuing professional certificates and practice licenses in accordance with international practices and the conditions of Vietnam. Implement solutions to support the improvement of the skills and professional activities of accounting staff working in small, medium, and micro enterprises.

– To promote the role, unify and strengthen the operational capacity of professional accounting organizations in drafting legal documents; training and professional development; and coordinating the inspection and monitoring of compliance with professional standards.

– Develop extensive international integration activities, expand cooperation with international accounting organizations; learn from their experiences to develop the Vietnamese accounting system; enhance the position and effectiveness of Vietnamese accounting in the world and the region.

– Promote the application of information technology in line with the digital transformation process in building the legal framework and organizing its implementation at the units; build a database related to accounting to serve the operations of the units and accounting management and supervision activities.

2. Propose specific amendments to the Accounting Law.

2.1. Review regulations to align with the digitalization and digital transformation process in accounting.

Current regulations regarding accounting documents, ledgers, financial statements, and other accounting materials are primarily paper-based, with additional provisions for electronic transactions. Therefore, regulations concerning electronic accounting documents, the creation and storage of accounting documents, and the signing of accounting documents should be primarily electronic. Paper-based transactions should be regulated more frequently and are expected to decrease further with digital transformation. The goal is to provide organizations with a basis for processing and storing information using applications, thereby reducing the wasteful printing and conversion of accounting documents to paper format.

Regulations regarding accounting documents and ledgers are established for manual, paper-based accounting activities. For example, regulations stipulate that when writing documents, ink must be used; numbers and writing must be continuous and uninterrupted; blank spaces must be crossed out; documents must be prepared in the required number of copies; documents must be signed with indelible ink; signatures on documents must be consistent; a seal must be affixed to the accounting ledger; accounting ledgers must be written in ink; no additions should be made above or below entries; no overlapping entries; no line breaks; if entries do not fill a page, the unused portion must be crossed out; when a page is full, the total must be summed and transferred to the next page… Regulations regarding computerized accounting and electronic data are only supplementary and therefore not comprehensive.

Regarding the retention period, the Accounting Law (Article 41) stipulates the preservation and storage of accounting documents[3]. In practice, some accounting documents are stipulated to have a retention period of 5 years, 10 years, however, these documents are the basis for preparing and are related to permanently stored accounting documents. Therefore, the above regulation will cause difficulties in determining the destruction of accounting documents with different retention periods in the same file. This issue is even more difficult when storing on a computer, when the data are linked together, forming a database, the destruction of accounting documents will affect all the data of the unit.

To meet the requirements of digitalization and digital transformation, some provisions in the Accounting Law need to be studied and amended as follows:

– Review regulations on accounting documents and ledgers, and correct accounting errors that are not in line with current information technology applications; they need to be amended accordingly.

– Review regulations regarding signatures on accounting documents (sign all copies with blue ink), accounting records, and other related content, in order to make appropriate revisions for creation, circulation, processing, and storage using electronic means, iCloud, etc.

– Review regulations related to economic transactions in the electronic environment, the practical application of information technology and digital technology in economic transactions, and the practical implementation of regulations on electronic transactions. These contents need to be consistent and synchronized with the nationwide deployment of electronic invoices.

2.2. Regarding accounting standards for businesses

The 2015 Accounting Law (Article 7) assigns the Ministry of Finance the responsibility to regulate accounting standards and professional ethics standards for accountants based on international accounting standards adapted to the conditions of Vietnam. In practice, the Ministry of Finance has issued 26 enterprise accounting standards, along with accounting regulations applicable to all enterprises in all sectors and economic components operating in Vietnam. However, during the period 2011-2020, these standards were not fully updated and issued. Therefore, in response to the demands of the socio-economic landscape, economic integration, and the development of information technology, after reporting to the Prime Minister, on March 16, 2020, the Minister of Finance issued Decision No. 345/QD-BTC approving the Project on the Application of Financial Reporting Standards in Vietnam.

The implementation of accounting standards is a long-term plan, therefore the Accounting Law may need clearer regulations allowing businesses in Vietnam to apply international financial reporting standards under the guidance of the Ministry of Finance. In addition, consideration could be given to establishing an accounting standards committee under the Ministry of Finance, clearly defining the committee's authority so that its members are appointed by the Ministry of Finance but have the power to make independent decisions on professional and operational matters, and to make decisions collectively…

2.3. Regarding currency in accounting

The Accounting Law (Article 10) stipulates that “The currency used in accounting is the Vietnamese Dong, with the national symbol “đ” and the international symbol “VND”. In cases where economic and financial transactions arise in foreign currency, the accounting unit must record them in the original currency and in Vietnamese Dong at the actual exchange rate, unless otherwise stipulated by law; for foreign currencies that do not have an exchange rate with the Vietnamese Dong, they must be converted through another foreign currency that does have an exchange rate with the Vietnamese Dong. An accounting unit whose main receipts and disbursements are in one foreign currency may choose that foreign currency as the accounting currency, is legally responsible, and must notify the directly managing tax authority. When preparing financial statements for use in Vietnam, the accounting unit must convert to Vietnamese Dong at the actual exchange rate, unless otherwise stipulated by law.”

In practice, difficulties have arisen in implementing the above regulations because, in reality, if a business has a functional currency other than VND, it must use that functional currency according to accounting standards. The current Accounting Law's provision allowing businesses to choose VND as their accounting unit is inconsistent with accounting standards and has caused difficulties for businesses in practice. Therefore, further research and clear regulations regarding functional currencies and reporting currencies are needed.

2.4. Regarding the use of numbers in accounting

The Accounting Law (Article 11) stipulates that a period (.) must be placed after the thousands, millions, and billions digits; and a comma (,) must be placed after the units digit when there are digits remaining. This regulation is not in line with the current application of information technology, which arises directly in the production environment of application systems, causing difficulties for accounting work, especially for units using accounting software provided by foreign companies. In this case, units have to reconfigure the system, increasing costs while reducing system performance due to the need to convert to Vietnamese regulations.

Therefore, this content requires research into appropriate regulations that meet the requirements of digitalization and digital transformation in the accounting field. Accordingly, there should be flexible regulations consistent with international practices, but attention should be paid to transitional provisions in implementation.

2.5. Regarding the translation of accounting documents and records.

The Accounting Law (Article 11) stipulates that the language used in accounting is Vietnamese. If a foreign language must be used on accounting documents, ledgers, and financial reports in Vietnam, both Vietnamese and the foreign language must be used simultaneously. In practice, translating the aforementioned accounting documents, ledgers, and financial reports presents a challenge for businesses, including in the archiving of accounting documents.

This issue requires further study and clearer regulations, specifically focusing on requiring the translation of documents directly related to accounting entries or payments, such as invoices or other related documents.

2.6. Regarding extended accounting periods

The Accounting Law (Article 12) stipulates that if the first or last accounting year is shorter than 90 days, it may be combined with the following or preceding accounting year to form a single accounting year; the first or last accounting year must be shorter than 15 months. In this case, the inconsistent use of day and month units leads to practical difficulties because three consecutive months can be 90 days or more. If the entity applies a full three months, the total number of days may exceed 90 days.

Therefore, this content needs to be reviewed to standardize the unit of measurement based on time, avoiding practical difficulties.

2.7. Regarding prohibited conduct in the accounting profession

The Accounting Law (Article 13) prohibits hiring entities that do not meet the business requirements for accounting services to provide accounting services. This provision is inconsistent with the reality of accounting services and makes it difficult to control and handle violations. Currently, this regulation is similar to that for auditing services.

Regarding this matter, a review is needed to clarify the conditions for providing accounting services, aiming to develop the market, reduce costs, and minimize human resources for businesses. Furthermore, the Decree on administrative penalties in the field of accounting should be reviewed to ensure its provisions align with the Accounting Law.

2.8. Regarding the sealing, temporary seizure, and confiscation of accounting documents and records.

For paper-based accounting documents, regulations on sealing, temporarily detaining, and confiscating accounting documents, especially accounting vouchers, have been widely implemented without problems or affecting accounting records. However, for electronic vouchers and electronic accounting documents, activities such as sealing, temporarily detaining, and confiscating data are not clearly defined, lacking a basis for the delivery and receipt of accounting documents. Even if delivery and receipt occur, it could affect data in the accounting ledger or the unit's database.

Therefore, it is necessary to review and regulate appropriately the temporary seizure or confiscation of accounting documents. The competent state agency must make photocopies of the seized or confiscated documents, sign and confirm the photocopies, and hand them over to the accounting unit; at the same time, a record must be made clearly stating the reason, the quantity of each type of accounting document seized or confiscated, and signed and stamped.

2.9. Regulations on accounting records

– Clause 2 of Article 25 stipulates that "Each accounting unit shall use only one accounting system for one accounting year." This regulation is not entirely clear, complete, or consistent with Clause 10 of Article 13, which prohibits "Establishing two or more financial accounting systems." In practice, an entity may need to open accounting books for management accounting purposes. The regulation mentioned above is unclear regarding the financial accounting system, making it unsuitable for opening a system of books for management accounting purposes.

– Some regulations regarding accounting records, for example, regulations on recording and correcting accounting records, are still mainly based on manual recording, while nowadays accounting records in most units are primarily recorded electronically. Electronic recording is only stipulated in Clause 7, Article 26, which states, "Accounting units are allowed to record accounting records electronically…". This regulation does not cover all units and is therefore unsuitable in the context of current and future trends in the application of technology in accounting.

2.10. Regarding financial statements

The Accounting Law (Article 29) stipulates that the financial statements of an accounting entity are used to summarize and explain the financial situation and operating results of the accounting entity. The financial statements of an accounting entity include: Statement of Financial Position; Statement of Operating Results; Statement of Cash Flows; Notes to the Financial Statements; and other reports as prescribed by law.

The current law, which specifically lists the names of financial statements for accounting entities, may lead to difficulties in determining the reporting categories for accounting entities that comply with international accounting standards. This is especially challenging for small and very small businesses, particularly in terms of organizing their accounting departments.

When hiring accounting services, it's necessary to consider regulations requiring the preparer, chief accountant, and legal representative to sign the financial statements of the business or accounting unit. Typically, many countries only stipulate that the legal representative is legally responsible for the company's financial statements. Even if the legal representative hires an organization or individual to perform accounting or accounting services for them, they remain legally responsible. This is why they need to find a reputable and high-quality accounting service provider.

2.11. Regarding enhancing openness and transparency

The Accounting Law (Article 31) has stipulated the content of public disclosure of financial reports for budget-using units, non-budget-using units, accounting units using public contributions, and accounting units engaged in business activities. However, the form and time of public disclosure (Article 32) are not clearly defined for accounting units, and the forms of public disclosure are not uniform, leading to units doing it formally and superficially [4]. Access to public information by interested users of the reports is limited in practice, or in other cases, is bound by law regarding confidentiality.

In addition, it is necessary to review and ensure consistency and suitability with the subjects, content, and forms of public disclosure of financial reports of other laws[5]. Some specific directions for public disclosure of financial reports:

– Revise the regulations on the content and format of financial statement disclosure to make them more specific and clear.

– Supplement regulations to clarify the scope of public disclosure of financial reports; the recipients of publicly disclosed financial report information; specify or consider removing the requirement to disclose only certain indicators of financial reports, instead requiring the disclosure of the entire financial report, not just certain contents.

– Regarding the form of disclosure, there should be mandatory forms such as posting on the website/portal of the enterprise or accounting unit; in addition, other forms of disclosure can be chosen.

2.12. Regarding internal audit

The Accounting Law (Article 39) stipulates that internal audit has the following tasks: Checking the appropriateness, effectiveness, and efficiency of the internal control system; Checking and verifying the quality and reliability of economic and financial information in financial statements and management accounting reports before submission for approval; Checking compliance with operating and management principles, compliance with laws, financial and accounting regulations, policies, resolutions, and decisions of the accounting unit's leadership; Detecting loopholes, weaknesses, and fraud in the management and protection of the unit's assets; proposing solutions to improve and perfect the management and operational system of the accounting unit.

The government issued Decree 05/2019/ND-CP on January 22, 2019, detailing regulations on internal auditing in enterprises, state agencies, and public service units. The Ministry of Finance also issued circulars guiding internal auditing standards and model regulations on internal auditing for these units. However, to date, difficulties still arise in organizing the internal audit apparatus, ensuring independence, and avoiding an increase in the size of the internal audit structure at both central and local levels.

2.13. Regarding accounting units

The Accounting Law (Article 49) stipulates the organization of the accounting system of an accounting unit, the responsibilities of the legal representative of the accounting unit in organizing the accounting system, assigning accounting personnel, or deciding to hire accounting services. However, the definition of which unit is an accounting unit is not clearly stated in the Law, only stipulating that units subject to the Accounting Law that prepare financial statements are considered accounting units. Meanwhile, the regulations on units preparing financial statements are outlined in the Circulars guiding the accounting system, issued by the Ministry of Finance.

In reality, very small-scale units, especially in the public sector, also have to organize an accounting system, while the unit's organizational structure does not have enough people to set up an accounting system[6]. In some cases, the accounting system is set up in the departments and divisions of the unit and cannot be organized into a separate department, so it is very difficult to organize and manage the work. In fact, some dependent accounting units still organize an accounting system because they identify themselves as accounting units and prepare financial reports.

According to current regulations, accounting units are required to prepare financial statements, including micro-enterprises. In practice, requiring micro-enterprises subject to a fixed corporate income tax rate to also prepare financial statements is inconsistent with reality, management requirements, and the conditions of these businesses. However, it is necessary to determine whether these types of businesses are considered accounting units, as they operate independently and are also required to declare and pay taxes according to tax laws.

Given the aforementioned difficulties, more appropriate regulations are needed regarding accounting units, or clearer regulations are required regarding reporting units. This would clearly define which units are responsible for preparing financial statements and which units must organize their own accounting systems, thereby reducing social costs and resolving difficulties and obstacles for units and businesses.

2.14. Regarding regulations for accountants

– The Accounting Law (Article 54) stipulates the standards, rights, and responsibilities of accountants. Specifically, it stipulates that accountants must have professional qualifications in accounting (chief accountants must have at least a secondary level qualification). Furthermore, Clause 5, Article 18 of Decree 174/2017/ND-CP stipulates: "A person with professional qualifications in accounting is someone who has graduated from a vocational secondary school, college, university, or postgraduate program in finance, accounting, or auditing at vocational secondary schools, colleges, universities, or academies in Vietnam and abroad…". This regulation is inconsistent with the reality of the training fields and specializations in the current education system. In practice, there are many cases where university graduates in fields other than finance, accounting, or auditing (for example, business administration) have their transcripts clearly stating: accounting, auditing, or financial management. These cases are considered to have professional qualifications in accounting.

– The Accounting Law (Article 54) stipulates the standards and conditions for a chief accountant, stating "Having a chief accountant training certificate." Currently, chief accountant training certificates include those for businesses and public administrations. However, the Accounting Law and its guiding decrees do not specify whether a chief accountant with a business training certificate can be appointed as a chief accountant in state-owned entities, and vice versa. Decree 174/2017/ND-CP stipulates the same standards and conditions for chief accountants and accounting managers, causing difficulties in implementation, because if someone already meets the standards for an accounting manager, the unit can appoint a chief accountant. Furthermore, some individuals hold domestic or foreign accounting or auditing certificates but lack the opportunity to obtain a chief accountant certificate, thus failing to meet the requirements for appointment as chief accountant, as these certificates cannot replace the chief accountant training certificate.

– The Accounting Law (Article 53) stipulates that the chief accountant of a state agency, organization, public service unit using state budget funds, and enterprises in which the State holds more than 50% of the charter capital, in addition to the duties specified in Clause 1 of this Article, also has the duty to assist the legal representative of the accounting unit in supervising the unit's finances. Thus, the provision in the Law (Clause 2, Article 53) does not address the duties of the chief accountant in accounting units that are agencies responsible for collecting and disbursing state budget funds at all levels; and organizations and public service units that do not use state budget funds, in assisting the legal representative of the accounting unit in supervising the unit's finances.

Based on the above reality, it is necessary to review and amend regulations on accountants, accounting managers, and chief accountants to suit current and future realities.

2.15. Regarding the accounting organizational structure, the chief accountant

Currently, the Accounting Law (Article 54) stipulates that a chief accountant certificate is required for appointment, but there is no provision for an accountant or auditor certificate. In reality, those with professional qualifications and accountant or auditor certificates often lack the time to pursue further training to obtain a chief accountant certificate. Therefore, the criteria and conditions for appointing a chief accountant should include a chief accountant certificate or an accountant/auditor certificate.

Since the regulations stipulate the same standards for chief accountants and accounting managers, for small and micro-enterprises, appointing an accounting manager without requiring a chief accountant would be impractical.

It is necessary to add a regulation stating that the chief accountant must be responsible for the financial reports during the period in which they are assigned as chief accountant.

Based on the practical implementation of the Accounting Law, some opinions suggest that appointing a chief accountant in state-owned or public sector accounting units is not truly necessary. For small-scale units, having to establish an accounting unit would create difficulties. However, if an accounting department is not established, appropriate regulations regarding reporting and budget execution are necessary. Therefore, this issue needs thorough research to ensure it aligns with the requirements of public budget and financial management at both the central and local levels.

2.16. Regarding accounting services business activities

– The Accounting Law (Article 59) stipulates that foreign accounting service businesses may contribute capital with individuals to establish accounting service businesses. However, Clause 4 of Article 59 stipulates that foreign accounting service businesses operating in Vietnam must contribute capital to accounting service businesses already established and operating in Vietnam. In practice, proving the existence of foreign accounting service businesses is difficult, and management is ineffective in reality; therefore, this regulation is requested to be reconsidered.

– The Accounting Law stipulates the conditions for granting a Certificate of Eligibility to conduct accounting services. During its implementation, practical difficulties have arisen. Regarding this matter, it is necessary to clearly specify whether one or all legal representatives must be practicing accountants, in the following two cases:

+ For limited liability companies and partnerships, it is advisable to stipulate that only one legal representative, director, or general director must be a practicing accountant. It is not recommended to require all legal representatives to be practicing accountants, as businesses may operate in multiple sectors, with multiple legal representatives each responsible for different areas.

+ The regulations should clarify that if there are multiple legal representatives, all legal representatives of an accounting service business must be practicing accountants.

– In addition, the following regulations need to be reviewed and adjusted:

+ Review and ensure regulations are consistent with WTO commitments regarding not restricting foreign investors from establishing accounting service businesses in Vietnam.

+ Review and amend the business conditions for private enterprises, suggesting that they should only require one practicing accountant or at least one practicing accountant, instead of requiring two practicing accountants.

+ Review and amend the regulation requiring the removal of the phrase "accounting services" from the company name. In practice, a company's name may only contain the phrase "accounting," but it cannot be required to remove it (similar to Article 13).

+ Regarding Clause 4 of Article 61, it is proposed to remove the requirement for employment contracts for practicing accountants. The reason is that the application for a certificate of eligibility to conduct accounting services already includes a copy of the full-time employment contract with the accounting service business unit as part of the individual's accounting practice registration dossier.

+ We propose revising the regulations regarding the re-issuance of Certificates of Eligibility for Accounting Services when there are changes to the information on the Certificate of Eligibility for Accounting Services concerning the legal representative, director, or general director (instead of just a change of surname and given name as currently), and considering removing the case of changing the address of the branch office providing accounting services.

+ Review the regulation on revoking the business license for accounting services if violations related to maintaining business conditions are not rectified within 60 days from the date of suspension. It is proposed to add a regulation stating that within 06 months from the date of not meeting the business conditions for accounting services, the business license will be revoked. This is because in reality, many businesses do not meet the business conditions for accounting services but do not notify the Ministry of Finance, thus avoiding warnings and business suspensions. When the violations are discovered, the suspension period has already expired, making it impossible to revoke the business license.

+ In fact, if someone does not meet the registration requirements, they are naturally not allowed to practice accounting. Therefore, we should consider removing Point b, Clause 6, Article 69, which states that accountants who do not meet the registration requirements will have their accounting services suspended.

2.17. Regarding the provision of accounting services

The Accounting Law stipulates that to establish an accounting service business, there must be at least two people with accounting certificates, including the business director who must have held a professional accounting certificate for at least two years. The business can be established as a limited liability company with two or more members (similar to independent auditing firms) and has charter capital as prescribed by the Government. Those with professional accounting certificates working in the business must contribute at least 50% of the unit's charter capital.

However, current regulations may restrict the development of accounting service providers. Furthermore, these regulations are inconsistent with the provisions of the Tax Administration Law regarding the provision of accounting services to micro-enterprises.

Therefore, it is necessary to review the conditions for practicing and registering accounting services to ensure that the regulations are consistent with reality and aligned with other legal regulations on accounting practice.

2.1.8. Regarding professional accounting organizations

The Accounting Law (Article 70) stipulates the following regarding professional accounting organizations: “Professional accounting organizations are established and operate in accordance with the law on associations and are responsible for complying with the provisions of the law on accounting. Professional accounting organizations provide training and update knowledge for accountants and practicing accountants, and perform certain tasks related to accounting activities as prescribed by the Government.”

Currently, the professional accounting organization, the Vietnam Association of Accountants and Auditors, has been transformed into an association. The establishment and operation of the association are carried out in accordance with the law on associations, with the responsibility to comply with accounting laws; however, there are no specific legal regulations on associations yet.

To implement the Accounting and Auditing Strategy until 2030, based on the provisions of the law on associations, it is necessary to study appropriate regulations in the Accounting Law so that professional associations can effectively participate in the development of accounting and auditing legislation, the drafting and promulgation of legal regulations related to the operational responsibilities of professional accounting and auditing organizations; and the development of a unified, self-governing, professional organizational model in accordance with international practices, attracting a large number of members. This includes improving the effectiveness of participation in the development and critique of mechanisms and policies; enhancing the capacity to manage and supervise compliance with professional standards and ethical standards for accountants and auditors; inspecting the quality of services and providing professional knowledge and ethical training for accounting and auditing practitioners; and organizing examinations and issuing professional certificates in accordance with the law.

Specifically, research is needed to assign professional activities in accordance with the law and the capacity of professional associations, following a suitable roadmap, ensuring stability and accountability under the law.

2.19. Regarding state management of accounting

In addition to studying regulations to ensure effective coordination among units and the implementation of the overall state administrative reform program for the period 2021-2030, research is needed to clarify the decentralization of management, inspection, and supervision in the Accounting Law to ensure feasibility and effectiveness in practice.

Research is needed to further clarify in the Accounting Law the responsibilities of agencies and units in guiding accounting practices for banks and credit institutions.

2.20. Regarding accounting software

Current accounting software is quite diverse, with varying quality. This is due to the experience and capabilities of the software providers; the ability of accounting units to understand and specify technical requirements to the software providers; and the understanding and use of applications by accounting staff and employees of accounting units.

This reality necessitates new, principled regulations in the Accounting Law, outlining professional requirements to ensure the quality of accounting software and system applications used by accounting units in their accounting and management work.

3. Relevant actions needed to implement the Accounting Law

3.1. Issuing and publishing accounting standards systems

– Determine the appropriate reporting framework for each type of enterprise to improve the efficiency of financial and accounting information[7]. Implement the application of international financial reporting standards in Vietnam according to the roadmap determined by the Ministry of Finance for enterprises that have the need and are eligible to apply. Develop and organize the implementation of Vietnamese financial reporting standards in accordance with international practices and Vietnamese conditions to replace the Vietnamese enterprise accounting standards system. Issue appropriate accounting guidance documents for small, medium and micro enterprises.

Regarding the financial reporting standards system, clearer guidance is needed, along with ensuring the conditions for using fair value in the recognition and presentation of financial statements. This is a rather complex issue, and to date, there are still obstacles in preparing the conditions for its implementation.

– The Vietnamese public accounting standards system is published based on international public accounting standards, in line with the trend of reforming public finance management and the state budget in Vietnam. The Vietnamese public accounting standards system ensures the establishment of a unified basis for accounting record-keeping, serving as a benchmark and framework for preparing and presenting financial information for accounting units in the state sector, state financial reporting, and local governments.

3.2. Strengthening the capacity of accounting management and supervision agencies and improving the effectiveness of inspection and supervision of compliance with accounting laws.

– Enhance the capacity of agencies directly responsible for accounting management and supervision; develop appropriate solutions to attract high-quality personnel to effectively and efficiently perform accounting management and supervision tasks. Research international experiences and implement suitable plans to organize activities based on a consultative accounting model, aiming to make decisions consistent with international practices, Vietnamese law, and the unit's specific circumstances.

– Innovate and effectively implement the content, methods, and conditions for managing and supervising accounting activities. Strengthen coordination with agencies and units responsible for inspecting and supervising financial reports and compliance with accounting laws. Collaborate with professional organizations, training institutions, and experts with practical experience in accounting to enhance professional training in accounting, foreign languages, and skills in inspecting and supervising financial reports and compliance with accounting laws.

– Based on functions and responsibilities, ensure sufficient human resources to monitor compliance with accounting regulations by state-owned and private enterprises and organizations. Focus on mechanisms for monitoring compliance with accounting standards by listed companies and other companies with public interest. Ensure conditions are in place to improve the effectiveness of managing and supervising the accounting services market; strictly handle cases of violations of accounting standards and professional ethics as prescribed by law.

– Specifically define the responsibilities and obligations of businesses, accounting units, and individuals in enhancing the transparency of financial information, ensuring equal access to financial reports and other financial information for investors and stakeholders.

– Strengthen inspection and supervision activities to ensure compliance with legal regulations and professional standards of accounting firms and accounting units; accounting service providers; and the organization of information systems and the use of software for accounting work in accounting firms and accounting service providers. Effectively implement the public disclosure and transparency of economic and financial information of accounting firms, agencies, and economic organizations; paying particular attention to entities with public interest.

– Strengthen the inspection and guidance of the effective implementation of internal audit activities at enterprises, People's Committees of provinces and centrally-administered cities, Ministries, ministerial-level agencies, agencies under the Government and large-scale public service units according to the regulations of the Government and guidance of the Ministry of Finance[8].

3.3. Developing the accounting services market

– Define criteria for public interest entities by adding necessary subjects, along with stricter and more effective requirements for public disclosure and transparency of financial statements to ensure public interest and the overall sustainable development of the economy. Research and identify the subjects for annual financial statement audits as large-scale public service units, especially those that are self-sufficient in both investment and operating expenditures, and those that are self-sufficient in operating expenditures.

– Develop criteria and guidelines regarding the scale, quantity, and quality of accounting service businesses to meet practical requirements, through improving the mechanisms and conditions for practicing the profession; increasing the quantity and quality of the accounting workforce; and effectively implementing solutions for the supply of services to enhance the quality of accounting services.

 – Completing and implementing legal regulations, creating the basis and conditions for negotiating and participating in international agreements and mutual recognition of accounting services with countries in the region and around the world.

3.4. Developing professional associations

– Based on the provisions of the law on associations and the law on accounting, develop and promulgate legal regulations related to the operational responsibilities of professional accounting organizations; build a unified, self-governing, professional organizational model for professional activities, in accordance with international practices, attracting a large number of members to participate.

– Improve the effectiveness of participation in the development and critique of mechanisms and policies; enhance the capacity to manage and supervise compliance with professional standards, ethical standards and regulations of accountants; inspect the quality of services and provide professional knowledge and ethical training for accounting practitioners.

– Conduct research to transfer professional activities in accordance with the law and the capacity of professional associations according to a suitable roadmap, ensuring the principles of stability and legal accountability.

 – Expanding cooperative relationships with professional organizations in the region and around the world to enhance the effectiveness of professional associations and contribute to promoting accounting integration.

3.5. Developing human resources in accounting.

– Innovate the content, programs, and methods to improve the quality of training and development of accounting human resources, combining theory and practice, and closely linked to the digitalization and digital transformation of accounting. Pay attention to a high-quality workforce in accounting to serve the needs of businesses, accounting units, and other organizations throughout the economy in the context of increasingly deep integration.

– Innovate the methods of learning, organizing exams, and issuing accounting certificates, ensuring that the knowledge and skills meet international requirements and practices, and guarantee mutual recognition within the region and worldwide.

– Enhance the discipline, professional competence, and professional ethics of accountants through the reform of regulations on training content and format, and updating knowledge; pay attention to and encourage international professional certification training programs to access knowledge and skills for professional practice in accordance with international practices.

– Innovate the content, format, and curriculum of training and professional development for chief accountants; develop content and programs for annual updating of professional knowledge and skills for chief accountants of public interest organizations.

– There are support solutions to improve the skills and professional performance of accounting staff working in small, medium, and micro-enterprises.

3.6. Strengthening and expanding international cooperation activities.

– Strengthen relationships and seek assistance from international professional accounting organizations and non-governmental organizations in research and exchange of accounting experience; provide technical support for innovation in accounting professional management models as well as other professional accounting techniques.

– Studying models from developed countries to apply to Vietnam in organizing and managing financial reporting audits and supervision; developing and applying financial reporting standards; developing accounting techniques and practices; developing accounting services; and improving the model for training, testing, and certifying accountants.

– Research and implement solutions to strongly promote the integration of accounting and accounting services markets with countries around the world and in the region.

– Strengthen ASEAN cooperation in the field of mutual recognition of accounting services, expand the exchange of professional accountants according to ASEAN standards, increase the number of Vietnamese accountants who have obtained ASEAN professional accounting certifications and participate in providing accounting services in ASEAN countries.

– Participate in the development of international financial reporting standards and public accounting standards by the International Accounting Standards Committees. Continue to support professional organizations in fulfilling their roles as members of the International Federation of Accountants (IFAC), the ASEAN Federation of Accountants (AFA), and the Confederation of Asian-Pacific Accountants (CAPA).

3.7. Application of information technology and other activities

– Regarding technology application: Continue to review, reduce, and simplify administrative procedures to create favorable conditions and save time and costs for businesses, accounting units; accounting service businesses and accounting professionals. Effectively apply the achievements of information technology development to meet the requirements of the digitalization and digital transformation process in accounting activities at state agencies, businesses, and accounting units.

– Regarding other activities:

+ Effectively and qualitatively implement the preparation of state financial reports to fully reflect information on the assets, resources, and obligations of the Government and local authorities, serving as a basis for planning mechanisms and policies for financial and budgetary management.

+ Develop a data system to support the management and supervision of the accounting services market; connect information between accounting management and supervision agencies and the securities market; ensure transparent and timely disclosure of information to the market regarding accounting firms and practicing accountants.

+ Relevant units shall coordinate in organizing information and data systems on the financial information of enterprises and accounting units, serving the data exploitation for public services by organizations and individuals, ensuring that official information is used in economic relations and transactions.

+ Organize the financial accounting system at state accounting units in a streamlined and efficient manner. Implement solutions to improve the quality of preparing and presenting state financial reports, and enhance the accountability of units in managing and effectively utilizing state assets and resources from the central to local levels.

Appendix

GUIDELINES FOR ACCOUNTING LAW

(1) Decree No. 174/2016/ND-CP dated December 30, 2016 of the Government detailing some articles of the Accounting Law;

(2) Decree No. 25/2017/ND-CP dated March 14, 2017 of the Government on State Financial Report;

(3) Decree No. 41/2018/ND-CP dated March 12, 2018 of the Government on regulations on administrative sanctions in the field of accounting and independent auditing;

(4) Decree No. 05/2019/ND-CP dated January 22, 2019 of the Government regulating internal audit;

(5) Decree No. 102/2021/ND-CP dated November 16, 2021 of the Government amending and supplementing a number of Articles of Decrees on administrative sanctions in the fields of tax, invoices; customs; insurance business, lottery business; management and use of public assets; practicing thrift and combating waste; national reserves; state treasury; accounting, independent auditing;

(6) Circular No. 53/2016/TT-BTC dated March 21, 2016 amending and supplementing a number of articles of Circular 200/2014/TT-BTC dated December 22, 2014 guiding the accounting regime for enterprises;

(7) Circular No. 133/2016/TT-BTC dated August 16, 2016 guiding the accounting regime for small and medium-sized enterprises;

(8) Circular No. 271/2016/TT-BTC dated November 14, 2016, stipulating the fee rates, collection and payment procedures for appraisal fees for granting Certificates of Registration for Professional Practice and Certificates of Eligibility for Business in Accounting and Auditing Services;

(9) Circular No. 292/2016/TT-BTC dated November 15, 2016 guiding the annual knowledge update for practicing accountants and those registered to practice accounting services;

(10) Circular No. 296/2016/TT-BTC dated November 15, 2016 guiding the issuance, revocation and management of Certificates of Registration for Accounting Services;

(11) Circular No. 297/2016/TT-BTC dated November 15, 2016 on the issuance, management and use of Certificates of eligibility to conduct accounting services;

(12) Circular 317/2016/TT-BTC dated December 7, 2016, guiding accounting applicable to the Vietnam Environmental Protection Fund, issued by the Minister of Finance;

(13) Circular No. 24/2017/TT-BTC dated March 28, 2017 guiding the accounting regime for cooperatives and cooperative unions;

(14) Circular 77/2017/TT-BTC dated July 28, 2017 guiding the State Budget accounting regime and State Treasury operations issued by the Minister of Finance;

(15) Circular No. 91/2017/TT-BTC dated August 31, 2017 of the Ministry of Finance regulating the examination, issuance and management of Auditor Certificates and Accountant Certificates;

(16) Circular No. 107/2017/TT-BTC dated October 10, 2017 guiding the accounting regime for administrative and non-business entities;

(17) Circular No. 16/2018/TT-BTC dated February 7, 2018 guiding some Articles on financial regime for credit institutions and branches of foreign banks;

(18) Circular No. 23/2018/TT-BTC dated March 12, 2018 guiding accounting for secured warrants for securities companies that are issuing organizations;

(19) Circular No. 74/2018/TT-BTC dated August 16, 2018 guiding the accounting regime for loans and debt repayments of the Government and local authorities; statistics and monitoring of relending and government guarantees;

(20) Circular 99/2018/TT-BTC dated November 1, 2018, guiding the preparation of consolidated financial statements of state accounting units that are superior accounting units, issued by the Minister of Finance;

(21) Circular No. 102/2018/TT-BTC dated November 14, 2018 guiding social insurance accounting;

(22) Circular 103/2018/TT-BTC dated November 14, 2018, guiding accounting applicable to the "For the Poor" Fund, issued by the Minister of Finance;

(23) Circular 108/2018/TT-BTC dated November 15, 2018, guiding the accounting of national reserves, issued by the Minister of Finance;

(24) Circular 109/2018/TT-BTC dated November 15, 2018 on guiding the accounting regime applicable to the Debt Repayment Accumulation Fund issued by the Minister of Finance;

(25) Circular 112/2018/TT-BTC dated November 15, 2018 of the Ministry of Finance amending and supplementing a number of articles in Circular 174/2015/TT-BTC dated November 10, 2015 of the Ministry of Finance guiding accounting for tax and other revenue activities for exported and imported goods issued by the Minister of Finance;

(26) Circular No. 132/2018/TT-BTC dated December 28, 2018 guiding the accounting regime for micro-enterprises;

(27) Circular No. 133/2018/TT-BTC dated December 28, 2018 guiding the preparation of state financial reports;

(28) Circular No. 05/2019/TT-BTC dated January 25, 2019 guiding accounting applicable to microfinance institutions;

(29) Circular No. 44/2019/TT-BTC dated July 19, 2019 amending and supplementing a number of Articles of Circular 292/2016/TT-BTC dated November 15, 2016 of the Minister of Finance guiding the annual knowledge update for practicing accountants and those registered to practice accounting services and Circular No. 296/2016/TT-BTC dated November 15, 2016 of the Minister of Finance guiding the issuance, revocation and management of Certificates of Registration for practicing accounting services;

(30) Circular 70/2019/TT-BTC dated October 3, 2019 on guiding the accounting regime for commune budgets and finances issued by the Minister of Finance;

(31) Circular 76/2019/TT-BTC dated November 5, 2019, on guiding the accounting of transportation and irrigation infrastructure assets issued by the Minister of Finance;

(32) Circular 79/2019/TT-BTC dated November 14, 2019, on guiding the accounting regime applicable to project management boards using public investment capital, issued by the Minister of Finance;

(33) Circular No. 89/2019/TT-BTC dated December 26, 2019 guiding accounting applicable to the Vietnam Securities Depository Center;

(34) Circular No. 19/2020/TT-BTC dated March 31, 2020 amending Circular No. 77/2017/TT-BTC dated July 28, 2017 guiding the State Budget Accounting Regime and State Treasury operations issued by the Ministry of Finance;

(35) Circular 39/2020/TT-BTC dated May 15, 2020 amending the reporting regime in the Circular in the field of accounting and independent auditing;

(36) Circular 40/2020/TT-BTC dated May 15, 2020 on guiding the reporting regime in the field of accounting and independent auditing under Decree 174/2016/ND-CP dated December 30, 2016 guiding the Accounting Law and Decree 17/2012/ND-CP dated March 13, 2012 guiding the Independent Auditing Law;

(37) Circular 66/2020/TT-BTC dated July 10, 2020 promulgating the model regulations on internal audit applicable to enterprises;

(38) Circular 78/2020/TT-BTC dated August 14, 2020 on guiding accounting for civil enforcement operations;

(39) Circular No. 08/2021/TT-BTC dated January 25, 2021 promulgating internal audit standards and professional ethical principles;

(40) Circular 09/2021/TT-BTC dated January 25, 2021 on guiding the inspection of accounting service activities;

(41) Circular 26/2021/TT-BTC dated April 7, 2021 on guiding accounting work when converting public non-business units into joint-stock companies;

(42) Circular No. 39/2021/TT-BTC dated June 1, 2021 amending and supplementing a number of articles of Circular No. 133/2018/TT-BTC dated December 28, 2018 of the Ministry of Finance guiding the preparation of state financial statements;

(43) Circular 88/2021/TT-BTC dated October 11, 2021, guiding the accounting regime for business households and individual businesses, issued by the Minister of Finance;

(44) Circular 90/2021/TT-BTC dated October 13, 2021, guiding accounting applicable to non-budgetary State financial funds issued by the Minister of Finance.

[1] Accounting Law No. 88/2015/QH13 dated November 20, 2015.

[2] In 2018 there were 91 businesses, an increase of 12,8% compared to 2017; in 2019 there were 118 businesses, an increase of 30% compared to 2018; in 2020 there were 148 businesses, an increase of 25,4% compared to 2019; in 2021 there were 153 businesses, an increase of 3% compared to 2020.

[3] Clauses 1, 2, and 3 stipulate that accounting documents must be stored for a period of 5 years, 10 years, and permanently.

[4] For example, the unit implements one of the forms of public disclosure such as publishing publications; written notices; posting; posting on the electronic information website; other forms as prescribed by law.

[5] For example, the Law on Credit Institutions, the Law on Securities, the Law on Investment, the Law on Insurance Business, etc., have specific regulations.

[6] Some provincial-level social organizations, such as the Association of the Blind and the Association for the Promotion of Learning, are identified as accounting units. However, the organizational structure is not sufficient to form an accounting system at the unit.

[7] Reporting framework for enterprises includes: Enterprises applying international financial reporting standards; enterprises applying Vietnamese financial reporting standards; enterprises applying the accounting regime for small and medium-sized enterprises, enterprises applying the accounting regime for micro-enterprises.

[8] According to the provisions of Decree No. 05/2019/ND-CP dated January 22, 2019 of the Government on Internal Audit.