Business Knowledge, Finance & Accounting Knowledge, Lasted News, Legal News

FDI Company Setup in Vietnam: Business License & Complete 2026 Guide

Posted on 30/12/202530/12/2025 by ASS

Why Setting up Company in Vietnam is the Strategic Choice for 2026?

The year 2026 marks a pivotal turning point for foreign investors in Vietnam. With significant reforms in the Law on Investment and a roadmap to reduce conditional business lines, the process for setting up a company in Vietnam is becoming more transparent and streamlined than ever.

However, to operate legally in specialized sectors such as retail, distribution, or logistics, investors must follow a structured path from obtaining an IRC and ERC to securing a specific business license.

1. Why Foreign Investors Need a Clear Roadmap in 2026

Starting a business in Vietnam as a foreigner offers immense potential, but understanding the 2026 regulatory landscape is crucial to avoiding delays or rejected applications.

a. FDI Opportunities in 2026

Vietnam maintains its position as Southeast Asia’s “global factory” based on four key pillars:

Extensive FTA Network: Leverage tariff incentives from the CPTPP, EVFTA, and RCEP.
New Incentive Policies: Strong focus on high-tech projects, circular economy, and renewable energy.
Flexible Ownership Structures: 100% foreign ownership is permitted in most sectors, including manufacturing, IT, consulting, and trading.
Digitalized Procedures: Significant reduction in waiting times through the National Business Registration Portal.

b. When is a Business License (Trading License) Mandatory?

While many sectors are open, a Business License (Trading License or Retail Distribution License) is still mandatory for foreign investors in “conditional” sectors under WTO commitments and Vietnamese Law.

Even with eased regulations, a separate Business License is required after company formation for:

Retail Sales: Directly providing goods to end consumers.
Distribution & Import: Applied to restricted or specialized commodity groups.
Specialized Services: Logistics, education, healthcare, and F&B.
Important Note: By July 1, 2026, sectors like accounting and insurance brokerage will see further liberalization. However, for Retail & Distribution, investors must still seek approval from the Ministry/Department of Industry and Trade.

c. Distinguishing IRC vs. ERC vs. Business License

Understanding these three acronyms is vital for any foreigner setting up a company in Vietnam:

Permit Type	Issuing Authority	Primary Role
IRC (Investment Registration Certificate)	Department of Planning and Investment (DPI)	Approves the investment project (capital, objectives, location).
ERC (Enterprise Registration Certificate)	Business Registration Office	Creates the legal entity and issues the Tax ID.
Business License	Relevant Ministry or Department	Grants permission to operate in conditional sectors (Retail, etc.).

The Standard Sequence: IRC (Project Approval) → ERC (Company Formation) → Business License (For specific sectors).

2. 5-Step Process for Setting Up Company in Vietnam in 2026

The average timeline for completion ranges from 1 to 2 months, depending on the complexity of your business lines.

Step 1: Choose a Legal Structure & Check Ownership Limits

The most common choice is a Limited Liability Company (LLC) due to its flexibility and limited liability protection. Foreigners must verify if their specific sector requires a Joint Venture (JV) with a Vietnamese partner.

Step 2: Obtain the Investment Registration Certificate (IRC)

Investors submit the application to the DPI. Key documents include:

Detailed Investment Project Proposal.
Proof of Financial Capacity (Bank statements or audited reports).
Office Lease Agreement or Memorandum of Understanding (MOU).
Timeline: 15 – 35 working days.

Step 3: Obtain the Enterprise Registration Certificate (ERC)

Once the IRC is issued, the ERC application is typically processed within 3 – 7 working days. This step officially grants your business its legal status.

Step 4: Post-Registration Procedures (Operational Compliance)

Obtaining the ERC is only the beginning. Within 90 days, investors must fulfill these mandatory obligations:

Open a Direct Investment Capital Account (DICA): This is the most critical step. All capital contributions, profit repatriations, and share transfers must flow through this account.
Capital Contribution: Ensure the total committed capital is transferred into the DICA within 90 days of ERC issuance.
Online Investment Reporting: Businesses must report project progress quarterly and annually on the National Investment Information System. Missing these deadlines can lead to heavy administrative fines.
Initial Tax & Accounting Setup: Register digital signatures, set up e-invoice templates, and pay Business License Tax (License Fees). Appointing a Chief Accountant or an outsourced accounting representative is a legal requirement for signing financial statements.

Step 5: Specialized Business License (If applicable)

For retail and distribution entities, authorities will assess the application based on local planning and socio-economic impact. Note the Economic Needs Test (ENT) requirement if you plan to open a second retail outlet or more.

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3. Required Documents & Checklist

All foreign documents must be Consularly Legalized, translated into Vietnamese, and notarized.

Individual Investors: Notarized passport + Bank balance confirmation.
Corporate Investors: Parent company’s Certificate of Incorporation + Audited financial statements (last 2 years) + Resolution appointing the authorized representative.
Project Documents: Detailed Business Plan and proof of right to use the business location.

4. Vina TPT: Your Trusted Partner for FDI Success in Vietnam

Establishing a legal entity is just the start. To thrive in the Vietnamese market, businesses need a solid foundation in Accounting, Tax, and HR from day one.

Vina TPT is proud to be a strategic partner, helping foreign investors remove language barriers and navigate local legal complexities:

Expert Consulting: From initial setup to tax structure optimization. We keep you updated on the latest regulations, including Global Minimum Tax and 2026 tax incentives.
Payroll & HR Management: We handle labor contracts, Social Health & Unemployment Insurance (SHUI), and Personal Income Tax (PIT) finalization for both expats and locals, ensuring absolute confidentiality.
Lifecycle Partnership: With over 20 years of experience, Vina TPT provides an “All-in-one” ecosystem. You focus on growth; we handle the administration.
No Language Barrier: Our trilingual team (English – Japanese – Vietnamese) ensures transparent communication and seamless management reporting.

Optimize your resources and minimize legal risks with Vina TPT. Contact us today for a 1-on-1 specialized consultation for your 2026 project.

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Accounting & Tax, Business Knowledge, Company Formation, Finance & Accounting Knowledge, Lasted News

Financial statement preparation and compliance in 2025 for Japanese firms

Posted on 05/11/202510/11/2025 by ASS

1. Why 2025 Brings New Financial Reporting Challenges for Japanese Companies in Vietnam

2025 is considered an important milestone for Japanese enterprises operating in Vietnam. The constant change in tax and accounting policies, especially the regulations on Value Added Tax (VAT) and Corporate Income Tax (CIT), makes the preparation of financial statements more complicated and requires higher accuracy than ever.

For foreign-invested enterprises (FDI), especially Japanese enterprises, annual financial statements must be independently audited before being submitted to the tax authorities. This process requires early preparation, data must be complete, clear and can be easily compared with the accounting system at the headquarters in Japan. Compared to domestic enterprises, Japanese companies often spend more time on the comparison, consolidation and review stages, especially when there are differences between Vietnamese and Japanese accounting standards.

2. Key Financial Reports Every Japanese Firm Must Prepare

In Vietnam, all enterprises, especially foreign-invested enterprises (FDI), must prepare a complete set of financial statements according to Vietnamese Accounting Standards (VAS). This set of reports is not only a legal requirement to submit to tax authorities and independent auditors, but also a basis for Japanese enterprises to consolidate financial data with their headquarters in Japan.

The three core reports include: Balance Sheet, Income Statement, and Cash Flow Statement.

Compared to J-GAAP (Japanese Generally Accepted Accounting Principles), VAS has some important differences that Japanese enterprises should note. For example, VAS requires depreciation of fixed assets according to the fixed time frame of the Ministry of Finance of Vietnam, while J-GAAP allows more flexibility based on the actual economic life of the asset. In addition, VAS recognizes revenue when ownership is transferred, not when invoices are issued as in some cases in Japan. Regarding consolidated reporting, VAS applies a different calculation method for minority interests and exchange rate differences than the Japanese standard, so if not adjusted in time, the data when consolidated to the parent company can be significantly different.

Therefore, during the financial statement preparation stage, Japanese companies often have to maintain two sets of data in parallel, one according to VAS standards to serve legal obligations in Vietnam, and one according to J-GAAP to serve the consolidated reporting to the head office. Handling this dual standard requires great care, in-depth understanding of both accounting systems, and close coordination between the internal accounting team, auditors, and consulting units such as Vina TPT Accounting service.

3. Common Pitfalls in Year-End Financial Reporting

When it comes to preparing and submitting financial statements, many Japanese companies in Vietnam often encounter systematic errors that affect the auditing and tax compliance process.

3.1. Consolidation Differences Between Vietnam and Japan

One of the most common issues is the difference in financial statement consolidation between the branch in Vietnam and the headquarters in Japan. Vietnamese Accounting Standards (VAS) have many differences compared to J-GAAP, especially in handling exchange rate differences, classifying fixed assets and recording prepaid expenses.

According to i-Glocal’s analysis (2024), many Japanese FDI enterprises often have to prepare separate financial statements and consolidated reports in parallel, making the data reconciliation process complicated and prone to errors.

3.2. Lack of Valid Expense Documentation

Another common error is the lack of valid documents for deductible expenses. The 2023 report of the General Department of Taxation of Vietnam shows that more than 30% of tax inspection reports of FDI enterprises are related to invalid invoices, documents or incorrect accounting of deductible expenses.

These errors often lead to adjustments to taxable profits, collection of corporate income tax (CIT) and late payment penalties, directly affecting the reputation and financial planning of the parent company.

3.3. Exchange Rate Handling Issues

The handling of exchange rates is also a cause of discrepancies in financial statements. According to Circular 200/2014/TT-BTC, enterprises must use the actual exchange rate at the time of the transaction and prepare financial statements in Vietnamese Dong (VND).

However, many Japanese companies still use internal exchange rates according to Japanese accounting standards, leading to discrepancies when preparing reports to send to Vietnamese tax authorities, especially in the handling of foreign currency revenue and expenses.

3.4. Late Audit Submission and Transparency Requirements

Some Japanese enterprises in Vietnam also have problems submitting audit reports on time or not meeting financial transparency requirements. According to Vietnam Briefing (2024), all FDI enterprises must complete independent audits and submit financial reports within 90 days of the end of the fiscal year.

If the report is submitted late or does not meet standards, the enterprise may be subject to administrative fines, restricted from repatriating profits and face difficulties in renewing its investment license.

These risks not only increase compliance costs, but also directly affect the reputation and progress of consolidated reporting in Japan. Therefore, Japanese enterprises need to focus on controlling documents, complying with VAS and preparing financial records from the beginning to avoid being passive during the audit period.

In summary, full compliance with Vietnamese Accounting Standards (VAS) and financial statement regulations not only helps Japanese enterprises ensure financial transparency and accuracy, but also minimizes tax and audit risks. Proactively reviewing periodically and coordinating with professional accounting units in Vietnam is an important step to maintain stability in financial management and strengthen trust with Japanese management agencies and partners.

EXPERT YEAR-END FINANCIAL REPORTING SUPPORT

4. Outsourced Bookkeeping: The Smart Way to Stay Compliant

Faced with a large volume of accounting work and strict compliance requirements, more and more Japanese enterprises in Vietnam choose outsourced bookkeeping instead of maintaining an in-house accounting team. This solution helps save on personnel costs, ensures accuracy in reporting, and easily coordinates with auditors and tax authorities. Vina TPT Accounting service provides a complete outsourced bookkeeping service exclusively for Japanese enterprises, including: bookkeeping, preparing bilingual financial statements (English – Japanese – Vietnamese), and reviewing data before auditing. Vina TPT’s outstanding strength is its team of experts who can communicate fluently in Japanese, understand Japanese accounting standards (J-GAAP) and Vietnamese regulations (VAS), helping customers easily exchange, compare and consolidate financial data.

5. How Vina TPT Supports Japanese Firms for 2025 Compliance

Entering 2025, when the demand for financial transparency is increasing, Japanese enterprises need a partner who not only does accounting but also accompanies them throughout the entire compliance process.

Vina TPT Accounting service provides comprehensive solutions including:

Preparing and reviewing bilingual financial statements (Japanese – Vietnamese): ensuring easy to understand, accurate and ready for audit.
Consulting on consolidated reports for Japanese corporations: supporting data conversion from VAS to J-GAAP or IFRS.
Consulting and coordinating audits: working directly with independent auditors, helping to reduce review time and limit post-audit adjustment risks.
Monitoring and updating the latest tax – accounting policies: ensuring reports are always in compliance with the regulations of the Ministry of Finance of Vietnam.

With a team of experienced accountants and auditors fluent in three languages (Japanese, English, Vietnamese), Vina TPT helps Japanese enterprises in Vietnam maintain a transparent accounting system, comply with and optimize operating costs in accordance with international standards and Vietnamese law.

For comprehensive advice on financial statement preparation, auditing and tax compliance solutions in 2025, contact VinaTPT.

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Accounting & Tax, Lasted News

Tax Incentive in Vietnam 2025: Comprehensive Guide to Optimize Profits under New CIT Law

Posted on 20/10/202509/04/2026 by ASS

Overview of corporate tax incentives in Vietnam 2025 under the new CIT Law

Tax Incentive: Comprehensive Guide to Corporate Tax Incentives in Vietnam 2025 – Optimize Profits with New CIT Law

With Vietnam’s Corporate Income Tax (CIT) Law 2025 officially in force from October 1, 2025, investors and CFOs are reassessing how to leverage tax incentives to strengthen profitability and compliance.

From 10 – 17% preferential CIT rates to multi-year tax holidays, the new regime gives both domestic and foreign companies more tools to optimize profits but only if you understand the rules.

In this guide, you’ll learn:

What a tax incentive is and why it matters for 2025
The main types of corporate tax incentives available in Vietnam
Key eligibility requirements and risk management
How to prepare and apply effectively with professional support

I. What is a Tax Incentive and Why Do Businesses Need to Know in 2025?

A tax incentive is a government policy designed to reduce or exempt tax liabilities for businesses that invest in targeted sectors or locations, with the aim of encouraging sustainable growth, innovation, and foreign direct investment (FDI).

Under the CIT Law 2025, tax incentives in Vietnam have evolved to:

Support the digital economy and green/clean industries.
Attract FDI via extended tax breaks and preferential schemes.
Motivate companies to reinvest profits inside Vietnam rather than only extracting them.

In today’s competitive ASEAN environment, understanding tax incentives isn’t optional, it’s a survival and growth strategy.

The standard corporate income tax rate remains 20 %. However, preferential rates are flexibly applied:

15 % for enterprises with annual revenue ≤ VND 3 billion
17 % for enterprises with revenue over VND 3 billion up to VND 50 billion
In specific cases (e.g., foreign-owned enterprises, cooperatives…) where cost/expense determination is difficult, a direct tax rate on revenue may apply

II. Key 2025 Updates: Major Types of Corporate Tax Incentives in Vietnam

1. Expanded deductible expenses under the 2025 CIT Law

Enterprises are now allowed to deduct additional expenses related to scientific research, digital transformation, testing new technologies, emission reduction, and community activities. This aims to create favorable conditions for businesses to pursue sustainable growth and innovation.

2. Incentives by sector, location, and investment project

Investment projects in high-tech sectors such as semiconductor production, AI, data centers, automobile manufacturing, and electronic device production are eligible for a preferential tax rate of 10% for up to 15 years.
Expansion projects applying clean technologies or contributing to environmental improvements may also qualify for tax exemptions or reductions if they meet specific requirements.

3. Clear incentive rules to avoid overlapping

If an enterprise falls under multiple incentive categories, it has the right to choose the most favorable one.
In cases where preferential provisions exist under specialized laws, the 2025 CIT Law will take precedence, except for specially regulated circumstances.

4. Loss carry-forward and Science & Technology Development Fund

Enterprises are allowed to carry forward losses continuously for up to 5 years.
They may allocate up to 20% of annual taxable income to establish a Science & Technology Development Fund, provided it is used for the correct purposes.

To explore how our consulting team can help you secure and optimize CIT incentives effectively, visit our dedicated Tax Consulting Service page for more details.

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III. Common Mistakes and How to Avoid – Plus Profit Optimization

Even with the best intentions, many businesses still miss out on their tax incentive benefits due to simple yet costly mistakes. Below are the most common pitfalls and how to fix them effectively.

Late or incomplete applications: One of the most frequent issues arises from delayed or missing documentation.
How to avoid: Ensure all required forms and supporting evidence are submitted before your project begins generating income to maintain eligibility.
Ignoring Permanent Establishment (PE) rules: With the 2025 update redefining PE status, overlooking this change can lead to unexpected tax liabilities.
How to avoid: Reassess your operational and contractual structure under the new PE definition to avoid misclassification.
Overlooking Double Taxation Treaties (DTT): Many foreign investors fail to leverage DTT benefits, leading to duplicate tax payments.
How to avoid: Coordinate early with professional consultants to utilize DTT relief and minimize cross-border tax exposure.
Unclear bookkeeping and expense tracking: Incomplete financial records can weaken your eligibility for incentives and invite compliance risks.
How to avoid: Implement digital accounting and reporting systems to ensure transparency and traceability.
No profit optimization strategy: Securing an incentive is only the first step, maximizing its impact requires strategic planning.
How to avoid: Partner with Vina TPT’s tax consultants to align your incentive structure with long-term financial goals and ROI optimization.

IV. What Should Businesses Prepare to Seize Opportunities from the 2025 CIT Law?

To stay ahead of regulatory changes and fully capitalize on new incentives, businesses must prepare proactively and strategically:

Review and assess impact: Conduct a detailed analysis of current financial performance, income, expenses, and business operations. Identify any necessary adjustments to comply with the new Corporate Income Tax (CIT) Law.
Understand eligibility criteria for incentives: Study the specific requirements for benefiting from the 2025 CIT incentives. Ensure your business meets all conditions before submitting any application.
Update accounting and financial systems: Make sure your accounting software and bookkeeping procedures comply with new regulations on revenue and expense recognition.
Train internal teams: Equip your finance and accounting personnel with updated knowledge through training sessions or specialized CIT 2025 courses.
Seek expert consultation: Engaging professional tax advisors is a smart move to avoid compliance risks and legally optimize your tax obligations.

Instead of navigating complex tax regulations on your own, you can connect directly with VINA TPT – trusted partner specializing in tax, accounting, and financial consulting ready to support your business in maximizing benefits under the 2025 CIT Law.

Conclusion

Tax incentives in Vietnam are more than just government policy, they’re a strategic growth lever for businesses preparing to thrive in the 2025 landscape.

Key takeaways:

Vietnam offers preferential CIT rates of 10 – 17% for up to 30 years.
Incentives now extend to green, digital, and financial sectors.
Compliance and timing remain critical to securing approval.

V. Why Partnering with Vina TPT Is the Most Effective Way to Leverage Tax Incentives?

The 2025 CIT incentives offer substantial opportunities to reduce tax burdens and enhance profits, but leveraging them effectively isn’t always simple. Businesses must interpret complex eligibility criteria, prepare accurate documentation, and meet strict compliance deadlines. Without expert guidance, it’s easy to miss optimal incentive schemes or face regulatory risks. That’s why partnering with a professional tax consulting firm becomes a strategic advantage.

Vina TPT Tax Service is a trusted advisor to hundreds of FDI and domestic enterprises, including manufacturing, technology, and service companies across Vietnam. Our team consists of senior tax consultants and legal experts with over 15 years of experience in tax planning, accounting compliance, and investment incentives.

We provide end-to-end support, including:

Assessing eligibility for tax incentives under the 2025 CIT Law
Structuring incentive applications for maximum tax savings
Preparing and submitting exemption/reduction dossiers
Designing long-term tax strategies aligned with business growth objectives
Conducting compliance audits and managing tax risks

With Vina TPT Tax Service, businesses are not only compliant but also positioned to optimize costs and secure sustainable profitability through legally maximized tax benefits.

Contact Vina TPT today and ensure your business fully capitalizes on Vietnam’s 2025 tax incentive opportunities.

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Accounting & Tax, Finance & Accounting Knowledge, Lasted News

How Outsourced Full-Service Accounting Empowers FDI Companies in Vietnam

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

Full-service accounting solutions for FDI companies in Vietnam

1. How Full-Service Accounting Supports FDI Companies in Vietnam

With the growth rate of Foreign-capital enterprises in Vietnam (more than 36 billion USD of registered capital in 2024 according to the Ministry of Planning and Investment), more and more multinational enterprises are facing accounting and tax complexities. A Japanese company operating in Vietnam must both prepare reports according to Vietnamese Accounting Standards (VAS) for domestic management agencies and ensure IFRS standards to send to the parent company. Without a professional full-service accounting system, the risk of data errors, late submission of reports or administrative fines is very high.

At the strategic level, full-service accounting is not only an accounting support service, but also acts as a “financial arm” to help Foreign-capital companies optimize capital management, improve internal control processes and minimize legal risks. A typical case is Samsung in Vietnam: huge transaction volume, many supply chains and factories force them to standardize reports on digital platforms. This is an example showing that outsourced accounting can bring long-term sustainability to the operations of Overseas-invested companies

2. Key Advantages of Outsourced Accounting

When choosing outsourced full-service accounting, companies can receive the following practical values:

Saving costs & resources: Instead of maintaining a cumbersome internal accounting department, enterprises only need to pay service fees according to demand, avoiding the burden of fixed costs.
Ensuring legal compliance: Professional service providers always update the latest regulations on tax and accounting, helping enterprises avoid the risk of administrative fines.
Transparency & international standards: Financial reports are standardized according to both Vietnamese law and IFRS, supporting reconciliation and transparency when sent to the parent corporation.
Optimizing financial management: Not only stopping at accounting, this service also provides in-depth financial analysis, helping the leadership have a comprehensive view to make strategic decisions.

START YOUR OUTSOURCED ACCOUNTING TODAY

3. Streamlining Financial Operations Through Full-Service Accounting

To maximize the benefits of outsourced full-service accounting, FDI enterprises need to pay attention to some important points:

Choose a reputable partner: Priority should be given to companies with experience working with FDI, understanding Vietnamese law and familiar with international standards.
Ensure data security: Accounting is directly related to sensitive financial data, so it is necessary to choose a supplier with a standard security system.
Define a clear scope of services: Depending on the scale, enterprises can choose a service package including payroll, tax reporting, financial statements or a full-package.
Periodic monitoring and evaluation: Enterprises should establish a mechanism to control and evaluate service quality to ensure long-term accuracy and suitability.

4. Enhancing Compliance and Accuracy with Professional Accounting Solutions

In Vietnam, Vina TPT has been a reliable choice for many Foreign Direct Investment companies. With a team of experts who have a deep understanding of Vietnamese accounting laws and rich experience in implementing financial reports according to international standards, Vina TPT full-service accounting solutions not only brings peace of mind in terms of compliance, but also acts as a strategic advisor.

To give Foreign Direct Investment companies a clearer view of how these solutions work in practice, here’s what Vina TPT’s full-service accounting actually delivers in each key stage of financial management.

Vina TPT’s full-service accounting service does not stop at bookkeeping or basic reporting, but covers the entire financial management process of Cross-border investment companies. First, Vina TPT collects and standardizes accounting data, compares data from many sources and ensures compliance with Vietnamese accounting and tax standards, and prepares reconciliation reports according to IFRS or US GAAP when requested by the parent company. Next, Vina TPT’s team of experts will prepare bilingual financial reports (Vietnamese – English or Japanese), including balance sheets, business performance reports, cash flow statements and report notes, satisfying both domestic management agencies and the parent group.

In addition, Vina TPT also conducts compliance reviews and adjustments before the settlement period, checks tax obligations according to investment certificates, mandatory audit requirements and related legal regulations to promptly detect and handle errors. For multinational corporations, Vina TPT supports the preparation of financial consolidation packages, synthesizing data from many subsidiaries or branches in Vietnam to send to the head office in accordance with standards and on time.

Thanks to Vina TPT’s full-service accounting service, Cross-border investment companies can completely focus on core business activities, while all financial and accounting issues are handled professionally, transparently and always in accordance with international standards.

With the support of reputable partners like Vina TPT, Foreign-capital enterprises can completely rest assured to expand their operations, seize opportunities and affirm their position in the Vietnamese market.

From compliance to growth – let Vina TPT full-service accounting solutions guide your FDI success.

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Lasted News, Accounting & Tax

International Accounting Standards for FDI Companies in Vietnam

Posted on 11/09/202506/10/2025 by ASS

1. Why International Financial Reporting Standards (IFRS) Matter for FDI in Vietnam

International accounting standards (IFRS) are essential for FDI companies in Vietnam, helping them navigate cross-border challenges, multiple currencies, and regulatory differences. By adopting international accounting standards, Foreign-capital enterprises in Vietnam can ensure financial transparency and gain stronger investor confidence.

For FDI enterprises in Vietnam, aligning with IFRS not only enhances global credibility but also ensures smoother cooperation with local regulators under Vietnamese Accounting Standards (VAS). Many multinational corporations entering Vietnam, from manufacturing to technology, have already integrated IFRS into their reporting structures to strengthen trust with stakeholders.

2. Challenges of Implementing International Accounting Standards in Vietnam

The International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB), are designed to harmonize financial reporting worldwide. These international accounting standards are now considered the backbone of global accounting, shaping modern accounting norms across markets.

For Overseas-invested companies in Vietnam, IFRS is not just about compliance – it establishes a transparent reporting foundation that appeals to global investors while also meeting the requirements of the Ministry of Finance and Vietnamese tax authorities. According to the IFRS Foundation, more than 140 jurisdictions already require or permit IFRS, proving its growing global influence.

3. How IFRS Supports Global Accounting for FDI in Vietnam

Each IFRS requirement reflects how international accounting standards are applied in practice, ensuring that FDI Vietnam businesses maintain consistency with global reporting.

3.1 IFRS 3: Business Combinations

Mergers, acquisitions, and joint ventures are common in FDI. IFRS 3 provides guidelines on goodwill, fair value measurement, and disclosure, ensuring clarity in reporting cross-border investments.

3.2 IFRS 9: Financial Instruments

Many FDI companies in Vietnam use derivatives, foreign loans, or complex contracts. IFRS 9 ensures accurate classification and measurement, minimizing risks related to misreporting.

3.3 IFRS 16: Leases

FDI enterprises leasing factories or offices in Vietnam must record lease liabilities and right-of-use assets. This affects financial ratios and gives stakeholders a more realistic picture of obligations.

3.4 IAS 21: Effects of Foreign Exchange

Operating in Vietnam often means dealing with currency fluctuations. IAS 21 provides guidance on translating VND into the reporting currency while maintaining accuracy.

3.5 IFRS 15: Revenue Recognition

Revenue is a critical metric. IFRS 15’s five-step model ensures consistency in how FDI companies record sales, service contracts, or long-term projects in Vietnam.

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4. Challenges of Implementing IFRS in Vietnam

For many FDI Vietnam enterprises, aligning with global accounting norms is challenging due to limited resources and evolving regulations.

4.1 Diverse Regulatory Environments

Vietnam has introduced a roadmap to adopt IFRS by 2025, but many companies still balance both IFRS and VAS reporting. This dual system creates additional workload.

4.2 Resource Constraints

Smaller businesses may lack trained these standard experts. Recruiting and training staff to understand both VAS and IFRS is often costly.

4.3 Currency Volatility

Frequent changes in exchange rates complicate IAS 21 application, particularly for companies in manufacturing and export sectors.

4.4 Training and Technology Gaps

Keeping finance teams updated on evolving the standards requires ongoing investment in training and accounting technology.

These issues highlight why partnering with professional accounting services becomes essential.

5. The Role of Accounting Services in IFRS Compliance

Partnering with a trusted provider like Vina TPT accounting service company makes International Financial Reporting Standards adoption smoother and more reliable for foreign investors.

Expertise and Compliance: Specialists understand both IFRS and VAS, ensuring dual compliance.

Cost Efficiency: Outsourcing avoids the expense of building in-house teams.
Scalability: Services expand alongside your operations in Vietnam.
Technology Integration: Using advanced accounting software ensures efficiency and accuracy.

For example, Vina TPT assists businesses in preparing consolidated financial statements, handling audits, and ensuring compliance with both international and Vietnamese standards.

6. Steps to Adopt IFRS in Vietnam

These steps help Overseas-invested companies move from basic compliance to full integration with international accounting standards, aligning with global accounting practices.

Assess Current Practices: Conduct a gap analysis between existing VAS practices and IFRS requirements.
Engage Professional Support: Work with Vina TPT Accounting Service for tailored IFRS solutions.
Train Finance Teams: Continuous education ensures accounting staff stay updated with IFRS changes.
Implement Technology Solutions: Adopt cloud-based accounting systems compatible with IFRS for greater efficiency.
Monitor Compliance: Regular reviews and audits strengthen long-term transparency and accuracy.

7. The Future of IFRS Adoption in Vietnam

Vietnam’s Ministry of Finance has outlined a roadmap for International Financial Reporting Standards adoption, aiming for wider use among listed and large-scale enterprises by 2025. This transition will push more Foreign Direct Investment companies to align with international practices, making professional support even more crucial.

Additionally, new global trends – such as ESG reporting and digital accounting systems – are shaping the next generation of financial transparency. Companies that prepare early will have a competitive advantage in Vietnam’s market.

As IFRS framework becomes the benchmark for Foreign Direct Investment enterprises, choosing Vina TPT accounting service company ensures compliance with international accounting standards while supporting long-term growth.

Explore Vina TPT’s comprehensive accounting and IFRS solutions designed to support FDI companies operating in Vietnam.

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

Accounting Services in Vietnam for FDI Compliance.

Posted on 19/08/202521/01/2026 by SEN

What service do FDI company need to stay compliant in vietnam

As Vietnam’s economy thrives with a surge in foreign direct investment (FDI), the demand for accounting services in Vietnam has become critical for businesses to comply with local regulations and optimize operations. This comprehensive guide explores accounting solutions, from compliance to outsourcing, empowering you to make informed decisions. Discover how VINA TPT Company Limited, a leading provider, can support your business needs.

What Are Accounting Services in Vietnam?

Accounting services in Vietnam encompass professional solutions that help businesses manage finances, adhere to legal requirements, and produce accurate reports. Distinguished by local standards like Vietnamese Accounting Standards (VAS) and the transition to International Financial Reporting Standards (IFRS), these services are vital in an open economic landscape.

Daily bookkeeping, including bank transactions and asset management.

Preparation of financial statements compliant with VAS/IFRS, tailored for FDI companies.

Tax advisory and lawful cost optimization.

Audit support and financial due diligence.

The growth of the accounting sector in Vietnam is closely tied to the rise of foreign enterprises, necessitating specialized solutions. For instance, a Japanese company in Ho Chi Minh City might require bilingual accounting services to meet internal and legal demands.

Benefits of Outsourcing Accounting Services in Vietnam

Outsourcing accounting services in Vietnam offers tangible benefits, especially for small and medium enterprises (SMEs) and FDI companies. Compared to in-house management, this approach saves costs, time, and reduces legal risks.

Cost savings: Avoid investing in expensive staff and software, paying only for service packages as needed.

Access to local expertise: Teams with deep knowledge of Vietnamese tax laws minimize penalty risks.

Focus on core business: Free up resources to focus on strategic growth rather than bookkeeping.

Rapid regulatory updates: Providers like VINA TPT stay updated with the latest regulations.

For example, a U.S. company in Da Nang cut administrative costs by 30% by outsourcing to VINA TPT while ensuring timely VAT compliance. This highlights the practical value of outsourcing amid Vietnam’s growing international investment climate.

Key Types of Accounting Services Available in Vietnam

1/ Bookkeeping and Financial Reporting

Bookkeeping and financial reporting form the backbone of accounting services in Vietnam, ensuring transparent business operations.

Record daily transactions, reconcile bank accounts, and manage assets.

Prepare financial statements per VAS, with IFRS conversion support when required.

Utilize accounting software like MISA or Fast for enhanced efficiency.

A small business in Ho Chi Minh City improved report accuracy to 95% by adopting this process with expert assistance.

2/ Tax Compliance and Advisory

Tax compliance is mandatory, and accounting services in Vietnam help businesses optimize financial obligations.

Tax Type	Rate (%)	Filing Period
VAT	0, 5, 8, 10	Monthly/Quarterly
CIT	15-17-20	Annually
PIT	5-35	Quarterly

File and submit VAT, CIT, and PIT taxes on time.
Offer tax optimization, VAT refund assistance, and dispute resolution.
Provide expertise in transfer pricing and Global Minimum Tax (Pillar Two).

Download Vietnam Tax Handbook For Investor

3/ Payroll and HR Services

Payroll and human resource management are crucial, particularly for foreign workers in Vietnam.

Calculate salaries, contribute to social and health insurance.

Assist with work permits and visas for foreign employees.

Draft labor contracts and manage personnel records.

Outsourcing saves 20% of administrative time compared to in-house management, especially in Ho Chi Minh City and Da Nang.

4/ Chief Accountant Appointment

Under Vietnamese law, companies must appoint a chief accountant, a need this service addresses.

Ensure compliance with related legal requirements.

Reduce internal management burdens for small businesses.

Outsourcing this role with VINA TPT helps new companies avoid violations.

5/ Audit Assistance and Due Diligence

Audit support and financial due diligence are essential for large enterprises.

Prepare documents for annual audits.

Conduct financial due diligence for M&A, adhering to Vietnamese standards.
Assist in explanations to regulatory bodies.

How to Choose the Right Accounting Service Provider in Vietnam

How do you select the ideal accounting services in Vietnam provider? Consider these key factors.

Experience: Teams with over 10 years in the field.

Certifications: Chief accountant and tax advisory credentials from the Ministry of Finance.

Bilingual support: Essential for FDI companies.

Factor	In-house	Outsourced
Cost	High (salaries, software)	Low (package-based)
Expertise	Limited	High (specialists)

VINA TPT offers bilingual (Vietnamese/English/Japanese) services and international certifications, surpassing many competitors.

Top Accounting Firms and Providers in Vietnam

Leading accounting services in Vietnam providers include:

Company	Strength	Contact
Acclime	Comprehensive FDI support	www.acclime.com
TMF Group	Global services	www.tmf-group.com
VINA TPT	Holistic solutions, expert team	www.vinatpt.com

VINA TPT stands out with over 20 years of experience, offices in Ho Chi Minh City and Da Nang, and a team led by Mr. Lê Quốc Duy—a renowned consultant for Japanese and international firms, contributing to Mizuho Asia Report and Japanese journals.

Frequently Asked Questions (FAQs)

What are the main taxes for foreign companies in Vietnam? VAT, CIT, and PIT with specific rates per regulation.

How much do accounting services cost in Vietnam? Ranges from $85-800/month depending on the package; contact VINA TPT for a quote.

Is outsourcing compliant with Vietnamese law? Yes, when using reputable providers like VINA TPT.

What documents are needed for tax filings? Invoices, financial statements, and labor contracts.
How to process a VAT refund? Reach out to VINA TPT for step-by-step assistance.

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