{"id":476,"date":"2020-03-07T00:55:43","date_gmt":"2020-03-06T15:55:43","guid":{"rendered":"http:\/\/suzuki-global.com\/?p=476"},"modified":"2021-11-18T11:58:57","modified_gmt":"2021-11-18T02:58:57","slug":"vietnam-accounting-and-bookkeeping-and-currency","status":"publish","type":"post","link":"https:\/\/suzuki-global.com\/en\/vietnam-accounting-and-bookkeeping-and-currency\/","title":{"rendered":"Vietnamese accounting, bookkeeping and currency"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">This time, I would like to introduce the outline of accounting and bookkeeping in Vietnam.<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">Vietnam is currently using its own<a href=\"https:\/\/suzuki-global.com\/en\/vietnam-accounting-standards-and-accounting-period\/\"><span style=\"color: #0000ff;\">Vietnam Accounting Standard<\/span><\/a>, We are improving the so-called VAS. By 2025, most recognized in the world<a href=\"https:\/\/suzuki-global.com\/en\/vietnams-ministry-of-finance-announces-mandatory-ifrs\/\"><span style=\"color: #0000ff;\">IFRS<\/span><\/a>There are many reports that it will be integrated into. Under such circumstances, it is important for corporations investing in Vietnam to properly understand the regulations and rules related to accounting and bookkeeping in Vietnam. Therefore, this time, I will introduce the accounting and bookkeeping in Vietnam in an easy-to-understand manner.<\/span><\/p>\r\n<ul>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Vietnam employs a unified set of accounting and bookkeeping known as the Vietnam Accounting Standards (VAS).<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Investors need to be prepared for the future, as Vietnam is considering introducing IFRS, the world&#039;s most popular accounting language, by 2025.<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Understanding regulations related to accounting and bookkeeping is an important cost consideration for investors.<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400;\">Vietnamese accounting and bookkeeping<\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">Vietnam has adopted a uniform accounting and bookkeeping standard, which shows how the costs and revenues of companies operating in the border need to be recorded. Known as the Vietnamese Accounting Standards (VAS), these generally accepted accounting principles (GAAP) serve as the primary guideline for how accounts and books are created and recorded.<\/span><\/p>\r\n<h2><span style=\"font-weight: 400;\">Vietnamese accounting framework<\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">Foreign-affiliated companies operating in Vietnam are required by law to record in accordance with Vietnam Accounting Standards (VAS) when conducting financial transactions. Foreign companies can choose to maintain two accounting records. One is based on VAS and the other is integrated exclusively for overseas headquarters.<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">In reality, many foreign companies book their accounts in accordance with VAS and prepare their financial statements separately for each quarter in accordance with International Financial Reporting Standards (IFRS).<\/span><\/p>\r\n<h2><span style=\"font-weight: 400;\">Vietnamese accounting and bookkeeping currency<\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">Perhaps the most important factor in bookkeeping is the currency unit. This is a very important factor that has a significant impact on foreign exchange gains\/losses, foreign currency translation adjustment accounts, etc. when the organizational structure is such that Vietnam has a parent company overseas and a local subsidiary in Vietnam. is.<\/span><\/p>\r\n<h2><span style=\"font-weight: 400;\">Vietnamese accounting currency selection<\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">In Vietnam, foreign currency can be selected as the accounting currency unit. However, once a foreign currency is selected as the display currency, a company cannot change the foreign currency except in special circumstances, such as when there is a significant change in the company&#039;s transactions.<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">In addition to preparing financial statements in a foreign currency of their choice, companies must convert their financial statements to Vietnamese dongs before submitting them to Vietnamese authorities. For this reason, many companies use the Vietnamese dong as the display currency.<\/span><\/p>\r\n<h2><span style=\"font-weight: 400;\">What you need for Vietnamese accounting<\/span><\/h2>\r\n<ul>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Whether it is Vietnamese (can be written together with foreign language)<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Vietnam Dong (VND) is used as accounting currency, but foreign-affiliated companies (FIE) can select foreign currency<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Vietnam Chart of Accounts Compliance<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Preparation and signature of VAS-compliant financial statements and company judgment<\/span><\/li>\r\n<\/ul>\r\n<h2><span style=\"font-weight: 400;\">Future of accounting in Vietnam<\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">The Vietnamese government will now adopt the International Financial Reporting Standards (IFRS) as an alternative to VAS. The government wants to implement IFRS by 2025, which was a request from listed and FDI companies. This is in line with international accounting standards, and has been evaluated as important in order to increase the transparency and effectiveness of corporate governance.<\/span><\/p>\r\n\n<div class=\"elementor-widget-wrap\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4c438e0d elementor-widget elementor-widget-spacer\" data-id=\"4c438e0d\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2ca0056c elementor-cta--layout-image-left elementor-cta--skin-classic elementor-animated-content elementor-bg-transform elementor-bg-transform-zoom-in elementor-widget elementor-widget-call-to-action\" data-id=\"2ca0056c\" data-element_type=\"widget\" data-widget_type=\"call-to-action.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<a href=\"https:\/\/suzuki-global.com\/en\/contact\/\" class=\"elementor-cta\">\n\t\t\t\t\t<div class=\"elementor-cta__bg-wrapper\">\n\t\t\t\t<div class=\"elementor-cta__bg elementor-bg\" style=\"background-image: url(http:\/\/suzuki-global.com\/wp-content\/uploads\/2020\/03\/Recruit-woman.jpg);\"><\/div>\n\t\t\t\t<div class=\"elementor-cta__bg-overlay\"><\/div>\n\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-cta__content\">\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<h2 class=\"elementor-cta__title elementor-cta__content-item elementor-content-item\">\n\t\t\t\t\t\tBookkeeping and accounting in Vietnam<br>Please feel free to contact SAC.\t\t\t\t\t<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-cta__description elementor-cta__content-item elementor-content-item\">\n\t\t\t\t\t\tSAC&#039;s specialized staff will provide solid support.\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-cta__button-wrapper elementor-cta__content-item elementor-content-item\">\n\t\t\t\t\t<span class=\"elementor-cta__button elementor-button elementor-size-sm\">\n\t\t\t\t\t\tContact us\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-ribbon elementor-ribbon-right\">\n\t\t\t\t<div class=\"elementor-ribbon-inner\">Contact us<\/div>\n\t\t\t<\/div>\n\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2b70f922 elementor-widget elementor-widget-spacer\" data-id=\"2b70f922\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>This time, we will introduce an overview of accounting and bookkeeping in Vietnam. Vietnam is currently in the process of converting to IFRS.<\/p>","protected":false},"author":1,"featured_media":479,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[6,72],"tags":[65],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/posts\/476"}],"collection":[{"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/comments?post=476"}],"version-history":[{"count":3,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/posts\/476\/revisions"}],"predecessor-version":[{"id":1435,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/posts\/476\/revisions\/1435"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/media\/479"}],"wp:attachment":[{"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/media?parent=476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/categories?post=476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/tags?post=476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}