|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies||No. Vietnam has not adopted IFRS Standards. National standards are required.|
|IFRS Standards are permitted but not required for domestic public companies|
|IFRS Standards are required or permitted for listings by foreign companies||No.|
|The IFRS for SMEs Standard is required or permitted||No. National standards are required.|
|The IFRS for SMEs Standard is under consideration||No.|
Pursuant to Government Decree No 215/2013/NĐ-CP, the Ministry of Finance is responsible for setting accounting standards for business entities in Vietnam.
The Accounting Law enacted in 2003 (English translation) establishes the legal framework for Vietnamese Accounting Standards for public and private sectors.
Accounting standards are issued by the Ministry of Finance of Vietnam and are known as Vietnamese Accounting Standards (VAS). The Department of Accounting and Auditing Policy of the Ministry of Finance has formed the Vietnamese Accounting Standards Board (VASB) to develop and approve the standards. To date the Ministry of Finance has issued 26 VAS (these were issued from 2001 to 2005), plus additional mandatory implementation guidance known as ‘circulars’.
Some Vietnamese companies prepare financial statements using IFRS Standards for the purpose of reporting to foreign investors. However, those IFRS financial statements are supplementary financial statements published in addition to – not instead of – financial statements prepared using Vietnamese Accounting Standards (VAS). The VAS financial statements are the statutory and primary financial statements.