Background

Pursuant to Government Decree No 215/2013/NĐ-CP, the Ministry of Finance is responsible for setting accounting standards for business entities in Vietnam.

Accounting Standards

All domestic companies, listed and unlisted, are currently required to use the Vietnamese Accounting Standards (VASs), which have been developed by the Ministry of Finance of Vietnam. Generally, the VASs were based on IASs that were issued up through 2003, though some modifications were made to reflect local accounting regulations and environment. None of the IASB's amendments to IASs nor new IFRSs have been adopted. National standards are required for SMEs.

Sustainability Disclosure Standards

In 2019, the State Securities Commission (SSC) issued the Corporate Governance Code of Best Practices, encouraging public and listed companies in Vietnam to comply. This code provides a comprehensive framework aimed at enhancing the governance standards of public companies, and emphasizes transparency, accountability, and ethical conduct within corporate structures. The code also requires detailed disclosure of both financial and non-financial information, promoting transparency in terms of environmental impact, labor practices, and corporate governance policies. By integrating ESG considerations into the corporate governance framework, the SSC’s code encourages companies to adopt sustainable practices, manage risks effectively, and engage in responsible business conduct, aligning with international ESG standards and contributing to sustainable economic growth in Vietnam.