Accounting in Vietnam

Our service offers full accounting services and guidance in compliance with Vietnamese Accounting Standards (VAS), ensuring full compliance and smooth business operation for your Vietnam subsidiary.

Accounting Services in Vietnam

Through our team of Vietnam and international accounting experts, we provide a full Vietnam accounting solution for all types of Vietnam entity including Limited Liability Companies (LLC) and Joint Stock Companies (JSC).

We ensure accounting and financial reporting is fully compliant with Vietnamese regulations, while simultaneously ensuring transparency and alignment with the expectations of international management.

Via our outsourced Vietnam accounting services, we not only alleviate the administrative burden but also provide our clients with access to qualified Vietnamese CPAs, licensed tax advisors, and accountants experienced in all aspects of accounting in Vietnam.

Benefits of our Vietnam Accounting Services

Banking & Treasury Services

Setting up payment cycles, designing checks-and-balances, processing scheduled and ad-hoc payments to third parties, and managing operational communication with banks.

Handling of Inward and Outward International Payments

Providing clarity on Vietnam’s foreign exchange regulations, declaring and clearing funds received from abroad or payments made overseas, handling currency conversions, and advising on the tax impact of inbound and outbound transactions.

Custody of Company Stamps

Safeguarding company stamps and essential company documentation (including business licenses and statutory records), designing control and approval processes, and processing stamp-use requests.

VAT Invoicing

Issuing and verifying VAT invoices, purchasing official VAT invoice books or e-invoices from local authorities, and advising on associated tax obligations.

Expense Reimbursements

Designing reimbursement processes, collecting supporting documents, and processing reimbursements following approval.

Improve Your Company’s Accounting Processes

Vietnam Accountancy, Bookkeeping, and Financial Reporting Services

We assist our clients with a full range of accounting services in Vietnam—day-to-day bookkeeping, monthly accounting, and preparation of financial reporting—customized according to each client’s requirements:

Setting up accounting processes and creating financial reporting packages in line with VAS.
Performing on-site or off-site bookkeeping.
Preparing statutory financial reports (Balance Sheet, Trial Balance, Income Statement, etc.) and submitting them to Vietnamese authorities.
Preparing customized financial reports, management accounts, forecasts, and cashflows.
Providing direct, real-time access to accounting and reporting.
Assisting with budget preparation, forecasting, and analyzing financial positions.
Seconding accounting professionals to support local accounting teams.
Advising on Vietnamese accounting policies and procedures.

Vietnam Accounting Guide

In Vietnam, foreign-invested enterprises (FIEs) and local companies alike must maintain accurate accounting records in accordance with Vietnamese law and principles, typically filing tax returns on a monthly or quarterly basis (depending on specific regulations). The accounting framework is governed by the Vietnamese Accounting Standards (VAS), which broadly line up with the International Financial Reporting Standards.

Although accounting as a profession is well-established, the complexity of Vietnam’s evolving regulatory environment can pose compliance challenges. Below, we discuss the difference between accrual-based and cash-based accounting and how each relates to Vietnamese Accounting Standards.

The Basis of Cash- vs. Accrual-Based Accounting

Cash-Based Accounting:
Revenues and expenses are recorded upon actual receipt and payment. All amounts paid or received in the current accounting period are booked, even if they do not strictly belong to this period.
Accrual-Based Accounting:
Revenues and expenses are recorded when earned or incurred, regardless of the actual cash transaction date. This approach aligns income and expenses with the period to which they relate.

The Limitations of Cash-Based Accounting

Lack of Reflection on Fixed Assets
Purchases of fixed assets are expensed immediately (rather than capitalized and depreciated), distorting financial statements over time.
Failure to Accurately Reflect Liabilities
Liabilities are recognized only upon payment, potentially omitting important payables from current financial statements.
Difficulty Conducting Cost & Expense Analysis
Limited data can hinder comprehensive decision-making, supervision, and budget preparation.
Incomplete Accounting Information
Cash-based reports may not fully capture assets, liabilities, or overall financial health.

Vietnamese Accounting Standards

For-profit enterprises in Vietnam are typically required to adopt accrual-based accounting under VAS to reflect the true financial condition and performance of the business. Nevertheless, in some limited cases (e.g., certain public entities), a cash-based approach may apply.

MSA Takes Care of All Your Vietnam Accounting Needs

For guidance on Vietnamese Accounting Standards, advice on financial reporting obligations, or to implement a full Vietnam accounting solution for your local enterprise, please contact us. Our local Vietnamese professionals, under European management, ensure compliance with current laws and regulations, safeguarding your foreign investment in Vietnam.

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