Accounting & Tax

Financial Statements in Vietnam: Components, Documents & Process

Posted on 21/10/202631/10/2026 by VINA TPT

Most international investors and FDI finance directors expanding business in Vietnam are already familiar with International Financial Reporting Standards (IFRS). However, in Vietnam, a company’s set of financial statements must be prepared under Vietnamese Accounting Standards (VAS) and must comply with the strict form system issued by the Ministry of Finance. Due to differences in accounting substance and recognition principles, the two sets of figures often show differences in both value and the timing of revenue and expense recognition.

Entering the 2026 accounting period, the preparation of financial statements Vietnam officially applies the new regulations under Circular 99/2025/TT-BTC (replacing Circular 200/2014/TT-BTC). This article analyzes in detail the structure of the four mandatory financial statements, the signing and filing rules for FDI companies, the list of documents that need to be prepared, and the standardized 8-step book-closing process for companies.

1. What Financial Statements in Vietnam Include

Under Article 17 of Circular 99/2025/TT-BTC, applicable to financial years beginning on or after 01 January 2026, a complete set of annual financial statements of a company includes the following four constituent reports:

Statement of Financial Position (Form B01-DN): The new legal name replacing the concept of “Balance Sheet,” presenting in aggregate all Assets, Liabilities, and Equity of the company at the book-closing date.

Income Statement (Form B02-DN): Presenting an overview of revenue, expenses, and net profit from business activities and other activities during the financial year.

Cash Flow Statement (Form B03-DN): Presenting cash inflows and cash outflows during the period from operating activities, investing activities, and financing activities (prepared under the direct or indirect method).

Notes to the Financial Statements (Form B09-DN): Providing detailed explanations of the accounting policies applied, movements of significant line items, and financial commitments not yet recognized in the numerical statements.

VAS Financial Statements under Circular 99/2025

Circular 99/2025/TT-BTC officially takes effect from 01 January 2026, completely replacing Circular 200/2014/TT-BTC. The new points that directly affect VAS financial statements for 2026 include:

Standardizing the name of Form B01-DN as the Statement of Financial Position.

Granting companies the initiative to add or amend level-2 and level-3 accounts and reporting forms, provided that the company issues an internal accounting regulation.

Adding certain new accounting accounts to meet new legal requirements (such as the account reflecting additional Corporate Income Tax expense under the global minimum tax rules – Pillar Two).

Raising standards for the internal control system and the transparency of figures.

Technical recommendation: FDI companies need to proactively work with their accounting software provider to update the chart of accounts and forms under Circular 99/2025/TT-BTC before the 2026 book-closing period, in order to avoid non-compliance risks during independent audit.

2. Audit, Signing and Filing Rules for FDI Companies

Foreign-invested companies (FDI) in Vietnam are subject to strict management regarding annual financial statement obligations:

Mandatory audit obligation: All FDI companies are required to have their annual financial statements audited by an independent audit firm legally operating in Vietnam, regardless of capital size or profit/loss status (as prescribed in Article 37 of the Law on Independent Audit 2011 and Article 15 of Decree 17/2012/NĐ-CP).

Signing responsibility: Financial statements must bear the signatures of the preparer, the Chief Accountant (or the person in charge of accounting), and the Legal Representative of the company (under Article 29 of the Law on Accounting 2015).

Filing deadline: No later than 90 days from the end of the financial year, the company must complete submission of the financial statements together with the independent audit report (as prescribed in Articles 25–26 of Circular 99/2025/TT-BTC). For the 2026 financial year calculated on a calendar-year basis, the final filing deadline is 31 March 2027.

Receiving authorities: The company submits the financial statements simultaneously to the directly managing Tax Authority, the Statistics Authority, the Business Registration Authority (Department of Planning and Investment), and the Management Board of the Industrial Park/Export Processing Zone (if the company is located in such a zone).

Accounting currency conversion: In cases where the company is approved by the Ministry of Finance to use a foreign currency as its accounting currency, the financial statements submitted to state authorities must be converted into Vietnamese Dong (VND) at the prescribed exchange rate.

Penalties for late filing: Under Decree 41/2018/NĐ-CP (as amended by Decree 102/2021/NĐ-CP and the latest updating documents), late filing of financial statements for less than 3 months is subject to a fine of 5–10 million VND; late filing of 3 months or more, or failure to attach the audit report, is subject to a fine of 10–20 million VND.

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3. Documents to Prepare Before Closing the Books

To ensure the process of preparing financial statements and the audit proceeds on schedule, companies need to proactively prepare a complete set of source documents before 31 January 2027:

Bank balances: Full 12-month statements of all VND and foreign-currency current accounts and the Direct Investment Capital Account (DICA).

Invoices and documents: All input and output invoices that have been reconciled and matched with the tax authority’s invoice management system.

Receivables/payables and contracts: Debt confirmation reconciliation minutes as of 31 December with customers and suppliers, and major economic contracts still in effect.

Assets and inventories: Fixed asset register, depreciation schedule, together with cash count minutes and physical inventory count minutes as of 31 December 2026.

Labor and tax: 12-month payroll, social insurance payment documents, and tax returns (VAT, PIT, FCT) filed during the year.

Foreign currency and related-party transactions: Schedule of foreign-currency balances, year-end exchange rates, and list of transactions arising with related parties within the group.

4. How Financial Statements Are Prepared: Step by Step

To complete a standard set of annual financial statements that fully meets audit requirements and does not generate risks during tax finalization, companies need to follow a rigorous book-closing process. Below are the 8 standard implementation steps that help the accounting department comprehensively control figures from source documents through to the issuance of the official report:

Step 1: Reconcile bank deposit balances, receivable/payable balances, and perform physical inventory counts.
Step 2: Review the set of accounting documents and process any missing invoices or documents that do not meet VAS validity requirements.
Step 3: Record year-end closing entries: depreciation of fixed assets, allocation of prepaid expenses, recognition of provisions, and revaluation of foreign-currency monetary items.
Step 4: Close the general ledger and prepare the Trial Balance.
Step 5: Generate the four financial statements according to the form system of Circular 99/2025/TT-BTC.
Step 6: Reconcile consistency between the financial statements and the periodic tax returns already filed, and review related-party transaction files.
Step 7: Hand over the data to the independent audit firm and perform adjusting entries according to the auditor’s recommendations.
Step 8: Complete legal signing and finalize submission of the reports to the competent authorities within the prescribed deadline.

5. How Financial Statements Link to Tax Finalization

Audited financial statements are the most important legal basis for determining Corporate Income Tax obligations for the year. The accounting profit before tax figure on the financial statements (Form B02-DN) is the starting point for adjusting increase/decrease differences under tax law, thereby determining taxable income for Corporate Income Tax.

The deadline for submitting the Corporate Income Tax finalization dossier coincides with the deadline for submitting financial statements (the last day of the third month from the end of the financial year, under Article 44 of the Law on Tax Administration 2019). Where the company has related-party transactions, the financial statements must be submitted together with the related-party transaction information appendices under Decree 132/2020/NĐ-CP.

(Note: To learn more about annual tax finalization regulations, please refer to the article Annual Tax Finalization in Vietnam 2026. In addition, the obligation to report FDI investment project implementation status on the fdi.gov.vn system is an independent reporting obligation, detailed in the article on FDI Investment Reporting Requirements.)

6. Year-End Financial Statement Support at Vina TPT

With its position as an advisory firm with more than 20 years of experience supporting FDI companies, Vina TPT provides a comprehensive solution for the 2026 annual financial statement period:

Standardized financial statement preparation: Perform the full recording and preparation of financial statements in exact accordance with the forms prescribed in Circular 99/2025/TT-BTC.

Audit representation: Work directly with independent audit firms and explain figures in depth until the official audit report is issued.

Bilingual management reports: Provide a standardized periodic monthly/quarterly management reporting system in bilingual (Japanese – English – Vietnamese) format to help the Parent Company easily control finances.

Senior specialist team: Directly performed by specialists holding CPA and ACCA certificates with more than 20 years of FDI advisory experience.

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Conclusion

The set of financial statements in Vietnam consists of four standard reports under VAS, must be independently audited for FDI companies, and must be submitted to the competent authorities within 90 days. Early preparation of documents from January is the key factor that enables companies to proactively control figures and complete compliance obligations on time.

Please send information about your financial year and current book status to receive the document preparation checklist and a free book-closing roadmap.

Accounting & Tax, Finance & Accounting Knowledge, Lasted News, Tax Knowledge

Preparing Detailed Financial Statements for FDI Companies

Posted on 23/09/202527/03/2026 by ASS

Financial statements for FDI companies in Vietnam

1. Understanding the Importance of Accurate Financial Statements

For Foreign Direct Investment companies in Vietnam, financial statements are not only mandatory legal documents to comply with the law. They are also a tool to help clarify financial situations and build solid reputation with investors and management agencies. Financial statements, if done correctly and sufficiently, will help enterprises face and manage risks very well. At the same time, it also helps companies make more effective management, investment and business decisions. This is also one of the important factors determining sustainable development for enterprises, not just Foreign-capital companies in Vietnam.

2. Key Components of FDI Financial Statements

A standard set of financial statements of a company usually includes:

Balance sheet – showing assets, liabilities and equity.
Income statement – reflecting revenue, expenses and profits.
Cash flow statement – tracking cash flow and liquidity.
Notes to financial statements – explaining accounting policies and adjustments.

Each component plays an extremely important role, indispensable to create a complete financial report. If done correctly and sufficiently, this will be considered the most comprehensive picture of the financial situation of the enterprise.

3. Aligning Financial Reporting with International Standards

Because many Overseas-invested companies operate internationally and across borders, it can be seen that standardizing financial reports according to standards such as IFRS is very necessary and not an easy task for many enterprises. In Vietnam, the accounting system mainly follows Vietnamese Accounting Standards (VAS), however, enterprises may need to perform dual reporting to simultaneously meet domestic requirements and satisfy obligations to foreign parent companies. This will certainly help reports to always be transparent, consistent and support cross-border transactions more conveniently and easily.

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4. Common Challenges in Preparing Detailed Reports

Businesses always face many difficulties and challenges when making reports, specifically:

Difficulties in consolidating reports of many subsidiaries.
Errors in classifying expenses and revenues.
Errors in converting foreign currencies.
Pressure in submitting financial reports and tax obligations.
Limited human resources with knowledge of both VAS and IFRS.

If not handled promptly, these issues can lead to administrative fines, loss of reputation and impact on long-term financial strategies.

5. Practical Steps to Ensure Accuracy and Compliance

To ensure accurate and compliant financial reporting, Overseas-invested companies can apply:

5.1 Data Collection & Standardization

The first and most important thing is to collect accounting data from various sources: internal ERP systems, branches, subsidiaries or reports from departments (sales, purchasing, production, etc.). Enterprises need to compare, eliminate errors and ensure that all data is recorded on time and consistently. At the same time, all data must be standardized according to tax regulations and Vietnamese accounting standards (VAS), from document formats, account systems to transaction codes. This is the foundation to help avoid errors when preparing financial statements or when performing consolidation later.

5.2 Financial Statement Preparation

Once the data has been standardized, the next step is to prepare a complete set of financial report:

Balance Sheet: reflects all assets, liabilities and equity.
Income Statement: summarizes revenue, expenses and profits.
Cash Flow Statement: tracks cash inflows and outflows to assess liquidity.
Notes to the Accounts: explains accounting policies, calculation methods and important adjustments.

For Foreign Direct Investment companies, in addition to VAS, the enterprise also needs to prepare a reconciliation report to meet IFRS or US GAAP if required by the parent corporation. This requires in-depth data analysis and processing skills to ensure compatibility between the two accounting systems.

5.3 Compliance Review & Adjustments

Before finalizing the report, the enterprise needs to conduct a tax and legal compliance check:

Check with the Investment Certificate and the terms of capital contribution.
Ensure compliance with statutory audit requirements and current Vietnamese accounting laws.
Check and adjust items that may generate tax risks, such as transfer pricing, exchange rate differences, or deductible expenses.

This review helps the enterprise minimize the risk of being subject to additional collection or administrative fines, while strengthening its reputation with management agencies and investors.

5.4 Consolidation & Reporting

For multinational corporations, the final step is to prepare a consolidation package to send to the parent company or regional headquarters. This includes:

Group-level consolidation: consolidating data from multiple subsidiaries, branches, or investment projects in Vietnam.
Preparing bilingual reports (Vietnamese – English) to satisfy both domestic authorities and the needs of the parent corporation and international investors.

This process requires high accuracy to avoid errors during consolidation, while also complying with strict reporting deadlines for both Vietnam and the parent company.

To ensure that your financial statements fully comply with Vietnamese accounting standards (VAS) and IFRS, enterprises should cooperate with reputable accounting and auditing service providers such as full-service accounting from Vina TPT for inspection and consultation. Professional service providers in Vietnam often have a team of tax and accounting experts with over 10 years of experience, ready to support from the data preparation stage, compliance review to report consolidation, helping businesses minimize risks and save time.

6. How Vina TPT Bookkeeping Supports FDI Companies in Streamlining Financial Reporting

With a team of experienced experts in supporting Foreign Direct Investment Companies in Vietnam, Vina TPT has services such as Preparation Financial Statement – Consolidated Report, helping businesses build detailed, accurate and transparent financial statements. Vina TPT supports businesses with needs for:

Preparing financial report according to VAS and IFRS standards.
Consolidating reports, processing foreign currency items.
Checking compliance before tax settlement.
Applying digital solutions to optimize the process.

Vina TPT’s services are diverse, accurate and transparent, so customers can rest assured to use them. Thanks to that, enterprises can focus on growth, while still ensuring that the reporting system meets international standards.

Ready to simplify your financial reporting? Contact Vina TPT today and ensure your financial statements meet both VAS and IFRS.

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