Companies operating in Vietnam, including foreign-invested enterprises, must keep statutory books under Vietnamese Accounting Standards (VAS), which differ in several respects from IFRS/US GAAP (e.g., differing treatment of certain provisions, revenue recognition nuances, and fixed asset depreciation rules) — foreign parent companies typically need a reconciliation/mapping process between VAS-based local statutory accounts and their group's IFRS/GAAP consolidated reporting. Bookkeeping must be maintained in Vietnamese (with a foreign-language version permitted alongside, not instead of, the Vietnamese version), using VND as the functional currency for statutory books even if the company also tracks USD internally.
The VAS-vs-IFRS gap trips up multinational finance teams every year at group consolidation time — budgeting for a proper conversion/mapping process (either via your local accounting firm or an in-house controller familiar with both frameworks) avoids scrambling at year-end.
Key Facts
Statutory accounting must follow Vietnamese Accounting Standards (VAS), issued by the Ministry of Finance, which differ from IFRS in areas like provisioning, certain revenue recognition timing, and fixed asset treatment.
Bookkeeping records must be maintained in Vietnamese and in VND as the base currency — a parallel foreign-language/foreign-currency record can be kept for internal/group reporting purposes but doesn't replace the Vietnamese statutory books.
Annual financial statements (balance sheet, income statement, cash flow statement, notes) must be prepared and, for most companies above certain size/type thresholds (including all foreign-invested enterprises), independently audited by a licensed Vietnamese audit firm.
The fiscal year is the calendar year by default, though companies can apply to the tax authority to use an alternative 12-month period.
E-invoicing (hóa đơn điện tử) is mandatory for all VAT-registered businesses, integrated with the tax authority's system — proper e-invoice issuance is central to VAT input credit claims and general bookkeeping accuracy.
Most foreign-invested companies engage a local accounting/audit firm (Big 4 or reputable local firms) given the VAS complexity and language requirement, rather than attempting fully in-house bookkeeping without local expertise.
Steps
Set up VAS-compliant bookkeeping from day one — Engage a qualified local accountant or accounting firm to establish Vietnamese-language, VND-based statutory books compliant with VAS from the company's first transactions.
Implement e-invoicing — Register and integrate an e-invoicing system connected to the tax authority before issuing any invoices, since this underpins both VAT compliance and clean bookkeeping.
Arrange the annual independent audit — Engage a licensed Vietnamese audit firm well before fiscal year-end to review and audit annual financial statements, a mandatory step for foreign-invested enterprises.
Build a VAS-to-IFRS/GAAP reconciliation process — If reporting to a foreign parent under IFRS or US GAAP, establish a clear mapping/reconciliation process between local VAS statutory accounts and group reporting requirements.
File annual financial statements — Submit audited annual financial statements to the tax authority and statistical office within the statutory deadline after fiscal year-end.
Costs
Local accounting/bookkeeping service: USD 100-500+/month depending on transaction volume
Annual independent audit: USD 1,000-5,000+ depending on company size/complexity
Timelines
Annual financial statement filing deadline: Within 90 days of fiscal year-end (aligned with CIT finalization)
Required Documents
VAS-compliant bookkeeping records (Vietnamese language, VND)
E-invoices for all sales and purchases
Annual audited financial statements
Fixed asset register and depreciation schedules
Common Mistakes
Attempting to run bookkeeping solely in a foreign language/currency without maintaining the mandatory Vietnamese/VND statutory books.
Not budgeting for the mandatory annual independent audit, which surprises founders used to jurisdictions with higher audit exemption thresholds.
Discovering VAS-to-IFRS reconciliation gaps only at group consolidation time instead of building the mapping process from the start.
Using non-compliant invoicing instead of the mandatory e-invoice system, corrupting both VAT credit claims and the integrity of the books.