Circular No. 60-TC/CĐKT guides the implementation of accounting and auditing work for enterprises and organizations with foreign investment capital in Vietnam.

MINISTRY OF FINANCE ********	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ********
NUMBER: 60-TC/CĐKT	HA NOI, SEPTEMBER 1, 1997

 

CIRCULAR

GUIDELINES FOR THE IMPLEMENTATION OF ACCOUNTING AND AUDITING WORK FOR ENTERPRISES AND ORGANIZATIONS WITH FOREIGN INVESTMENT CAPITAL IN VIETNAM ISSUED BY THE MINISTRY OF FINANCE NUMBER 60-TC/CĐKT ON SEPTEMBER 1, 1997

BASED ON THE STATUTE ON ACCOUNTING AND STATISTICS PUBLISHED PURSUANT TO DECREE NO. 6LCT/HĐNN - 8, MAY 20, 1988 OF THE STATE COUNCIL OF THE SOCIALIST REPUBLIC OF VIETNAM;
BASED ON THE REGULATIONS ON THE ORGANIZATION OF NATIONAL ACCOUNTING ISSUED PURSUANT TO DECREE NO. 25-HĐBT, MARCH 18, 1989 OF THE COUNCIL OF MINISTERS (NOW THE GOVERNMENT);
BASED ON ARTICLE 37 OF THE LAW ON FOREIGN INVESTMENT IN VIETNAM PASSED BY THE NATIONAL ASSEMBLY ON NOVEMBER 12, 1996 (HEREINAFTER REFERRED TO AS THE FOREIGN INVESTMENT LAW) AND ARTICLES 65, 66, 67, 68, 69, CHAPTER VIII OF DECREE NO. 12/CP, FEBRUARY 18, 1997 OF THE GOVERNMENT PROVIDING DETAILED REGULATIONS FOR THE IMPLEMENTATION OF THE FOREIGN INVESTMENT LAW IN VIETNAM (HEREINAFTER REFERRED TO AS DECREE 12/CP);
BASED ON SECTION V - LABOR FOR FOREIGN ORGANIZATIONS AND INDIVIDUALS IN VIETNAM, FOREIGN LABORERS WORKING IN VIETNAM, LABOR ABROAD OF THE LABOR CODE OF THE SOCIALIST REPUBLIC OF VIETNAM PUBLISHED PURSUANT TO DECREE NO. 35L/CTN, JULY 5, 1994 (HEREINAFTER REFERRED TO AS THE LABOR CODE).
THE MINISTRY OF FINANCE REGULATES AND GUIDES THE IMPLEMENTATION OF ACCOUNTING AND AUDITING WORK FOR FOREIGN-INVESTED ENTERPRISES AND BRANCHES OF FOREIGN LAW FIRMS IN VIETNAM AS FOLLOWS:
1. In this Circular, the term foreign-invested enterprise shall be understood to include the following entities:

I. SCOPE OF APPLICATION

1.1. Foreign-invested enterprises; industrial zone enterprises; export processing zone enterprises; parties involved in business cooperation contracts, build-operate-transfer (BOT) contracts, build-transfer-operate (BTO) contracts, and build-transfer (BT) contracts implementing investment under three forms: business cooperation based on business cooperation contracts, joint ventures, and wholly foreign-owned enterprises.

Foreign-invested enterprises operate in all sectors including insurance enterprises, banking enterprises, and credit organizations.

1.2. Branches of foreign law firms operating in Vietnam according to the regulations on the practice of foreign law firms in Vietnam (hereinafter referred to as branches of foreign law firms).

II. GENERAL PROVISIONS

1. Foreign-invested enterprises must comply with accounting and statistical systems pursuant to the Statute on Accounting and Statistics, the Regulations on the Organization of National Accounting, current legal documents on accounting and auditing, Article 37 of the Foreign Investment Law, Articles 65, 66, 67, 68, 69, Chapter VIII of Decree 12/CP, Article 23, Chapter III of the Practice Regulations, and the provisions set forth in this Circular.

2. Foreign-invested enterprises must be subject to supervision and inspection by financial authorities and relevant management agencies in the implementation of accounting work.

3. All foreign-invested enterprises must register their accounting system and obtain approval from the Ministry of Finance before implementation.

4. Foreign-invested enterprises must conduct accounting work according to the Vietnamese Enterprise Accounting System. In cases where foreign-invested enterprises have legitimate reasons to apply other common accounting systems, they must obtain written approval from the Ministry of Finance.

5. Foreign-invested enterprises must adhere to the accounting system registered and approved for application at the enterprise (including any additions or modifications to the approved accounting system).

6. When there is a need to supplement or modify the registered and approved accounting system, foreign-invested enterprises must clearly explain the reasons for the change and obtain written approval from the Ministry of Finance before implementation.

7. In the case of joint ventures that hire management organizations to manage business operations: In all cases, the joint venture is responsible under the law for the activities of the management organization in fulfilling contracts, as well as for the figures in financial reports. The management organization must comply with the provisions of this Circular as with the entities specified in Point 1.1, Part I - Scope of Application.

8. The fiscal year of foreign-invested enterprises must align with the tax year, which can be the calendar year or a consecutive twelve-month period registered by the enterprise.

9. Annual financial statements of foreign-invested enterprises must be audited by an independent auditing company legally operating in Vietnam.

10. Foreign-invested enterprises must publicly disclose annual financial statements and information about the situation and results of business operations to users of information as prescribed.

11. Requirements for accounting work

Accounting work of foreign-invested enterprises must ensure truthfulness, completeness, accuracy, timeliness, continuity, and systematicness regarding: the current status and changes in various types of assets, sources of capital, expenses, product costs, service costs, labor costs, revenue, income from business operations; compliance with tax laws and other obligations to the Vietnamese State as stipulated in the Investment License (for directly foreign-invested enterprises) or the Operating License (for branches of foreign law firms).

12. When foreign-invested enterprises cease operations for any reason, they must provide written notice and prepare financial statements up to the date of cessation for submission to the Ministry of Finance.

A. PROVISIONS ON THE IMPLEMENTATION OF THE ACCOUNTING SYSTEM

III. SPECIFIC PROVISIONS

1. Whether applying the Vietnamese Accounting System or another common accounting system, foreign-invested enterprises must comply with the following provisions:

1.1. Foreign-invested enterprises must apply an accounting system suitable for their business sector and field of operation.

1.1. A foreign-invested enterprise must apply an accounting system appropriate to its business sector and field of operation.

1.2. The unit of currency used for accounting records is the Vietnamese Dong. A foreign-invested enterprise may use a foreign currency unit for bookkeeping and preparing financial reports but must register this in the accounting system it seeks to apply and obtain approval in writing from the Ministry of Finance before implementation.

Other units of currency different from the officially approved unit of currency shall be recorded in their original form and converted into the officially approved unit of currency according to the transaction exchange rate of the economic activity or the exchange rate published by the State Bank of Vietnam at the time of occurrence of the economic activity.

1.3. The units of measurement (physical goods and time) applied in accounting records are the officially recognized units of measurement in Vietnam. Other units of measurement (if any) must be converted into the officially recognized units of measurement in Vietnam. A foreign-invested enterprise may also use additional supplementary units of measurement for bookkeeping.

1.4. Accounting records shall be made using Arabic numerals and Vietnamese language, or simultaneously with Vietnamese and another commonly used foreign language, and must be recorded in the Articles of Association of the foreign-invested enterprise and in the registered accounting system.

2. Fiscal Year

2.1. The fiscal year of a foreign-invested enterprise must comply with the tax calculation year stipulated in Article 60 of Decree 12/CP. The fiscal year can be the calendar year or twelve consecutive months starting from the beginning of a quarter, and must be registered in the accounting system sought to be applied.

2.2. The first fiscal year is calculated from the date of issuance of the Investment License (or Branch Establishment Permit for Foreign Law Firm) to the end of the approved fiscal year.

2.3. Accounting periods within the fiscal year are:

- Month: From the 1st day to the last day of the month.

- Quarter: From the 1st day of the first month of the quarter to the last day of the last month of the quarter.

3. Deadline for submission and publication of financial statements

- Quarterly report: No later than 15 days from the end of the quarter.

- Annual report: Within three months from the end of the fiscal year of the foreign-invested enterprise.

4. Place of submission of financial statements

Financial statements of foreign-invested enterprises shall be submitted to the Ministry of Planning and Investment, the Ministry of Finance, the General Statistics Office, the local Tax Authority (where the enterprise's headquarters is located), and the joint venture capital contributors.

5. Audit of financial statements

The annual financial statements of foreign-invested enterprises must be audited by an independent auditing company in Vietnam or another independent auditing company legally operating in Vietnam before submission and public disclosure. The audit report attached to the annual financial statement must bear the signature of an auditor holding a certificate issued by the Ministry of Finance of Vietnam, or a national audit qualification certificate of the home country recognized by the Ministry of Finance of Vietnam and registered in the list of auditors with the Ministry of Finance; the signature of the company director and the stamp of the auditing company. Underneath the auditor's signature, the full name and number of the auditor's certificate (qualification) must be clearly stated.

6. Organization of accounting work

6.1. Foreign-invested enterprises must implement accounting work contents including: Accounting voucher system, accounting account system, accounting ledger system, financial reporting system, accounting document storage system.

6.2. To carry out accounting work, foreign-invested enterprises organize their own accounting department or may hire an independent accounting service organization legally operating in Vietnam.

6.2.1. In the case where a foreign-invested enterprise organizes an independent accounting department:

a. Must allocate sufficient accounting staff according to the standard positions prescribed for accounting staff. Accounting staff must be guaranteed independence in professional and business matters to perform accounting work. Accounting staff shall not concurrently undertake the task of protecting assets and accounting functions while performing accounting work.

b. The head of the accounting department is the Chief Accountant or Head of Accounting Department. The Chief Accountant (or Head of Accounting Department) assists the General Director, or the Director of the foreign-invested enterprise in organizing and directing all accounting, statistical, and economic information work at the enterprise.

- The Chief Accountant of a foreign-invested enterprise is selected and appointed in writing by the Board of Management (for joint ventures), the General Director, or the representative authorized to reside permanently in Vietnam (for wholly foreign-owned enterprises). When there is a change in the Chief Accountant, the foreign-invested enterprise must formally notify the Ministry of Finance in writing within twenty days.

- The Chief Accountant must have a professional degree (graduation certificate) in accounting or finance at least at the college level; have attended a chief accountant training course (for Vietnamese); possess necessary knowledge about economics, technology, and finance; have organizational, leadership, guidance, inspection, analysis capabilities regarding financial, accounting, statistical, economic information, and economic accounting work. The person appointed as Chief Accountant must have at least three years of practical experience in accounting work if they hold a bachelor's degree, or five years if they hold a college degree.

- The Chief Accountant must be subject to professional financial and accounting supervision by the Vietnamese financial authorities.

c. Vietnamese accounting staff (including the Chief Accountant) hired by foreign-invested enterprises must be those who have been trained in finance and accounting and introduced by a recruitment service organization established under Vietnamese law (as stipulated in Article 132 of the Labor Code).

Accounting staff (including the Chief Accountant) at foreign-invested enterprises must enter into labor contracts with the enterprise and comply with Articles 131, 132, and 133 of Part V of the Labor Code; they must demonstrate their professional competence as required by Points 6.2.1.b and 6.2.1.c before state management agencies with relevant functions.

d. A foreign-invested enterprise must have a plan to train accounting staff to meet the requirements for performing accounting work according to Vietnam's accounting regulations, including other commonly used accounting systems approved by the Ministry of Finance.

6.2.2. In the case of hiring an independent accounting service organization legally operating in Vietnam to perform accounting work based on an economic contract signed between both parties, the provided accounting services must comply with accounting regulations as if the enterprise were conducting its own accounting work in accordance with the enterprise accounting system and the provisions of this Circular.

7. Accounting Work

7.1. Initial Recording: All economic activities occurring in the business operations of a foreign-invested enterprise must be recorded in accounting vouchers according to the registered model.

Accounting vouchers generated from outside Vietnam must be registered in advance and their main contents must be translated into Vietnamese. Accounting vouchers must be original copies, photocopies, or faxes which do not have legal validity.

7.2. A foreign-invested enterprise can only apply one officially registered accounting system. The basis for recording in the accounting books is the accounting vouchers. Accounting books must be clearly, continuously, systematically recorded and cannot be erased or altered.

7.3. A foreign-invested enterprise must register with the local Tax Authority (where tax registration is made) the use of two accounting books: General Ledger and Journal, or Register of Accounting Vouchers (number of pages and cross-stamping seal).

General Ledger and Journal, or Register of Accounting Vouchers of the enterprise without confirmation from the local Tax Authority will not be accepted legally.

7.4. If a foreign-invested enterprise records accounting entries on pre-printed accounting books, it must affix a cross-stamping seal and have sufficient signatures of the bookkeeper and the person responsible for the legal liability of the enterprise on all books used during the fiscal year.

7.5. In the case where accounting books are recorded using computers:

- The enterprise must manually record the closing figures of the fiscal year for each general ledger account on the General Ledger that has been registered at the local Tax Authority.

- At the end of the accounting period (after completing the bookkeeping and preparing financial statements), the foreign-invested enterprise must print the accounting books, bind them into volumes, affix a cross-stamping seal, and have sufficient signatures of the preparer and the person responsible for the legal liability of the enterprise on all accounting books used during the fiscal year. At the end of the month, after fully reflecting all transactions, the accountant must copy all pages of the accounting books onto floppy disks (at least two copies) and seal them according to the sealing regulations for files.

8. Financial Statements

- The financial statements of a foreign-invested enterprise must be prepared fully and submitted within the prescribed time limit to the relevant entities as stipulated in Point 4, Section A, Part III.

- The financial statements of a foreign-invested enterprise must be prepared based on the data recorded in the accounting books from valid and lawful accounting vouchers.

- Financial statements must ensure completeness, truthfulness, accuracy, comparability, understandability, and must have the full signature of the person responsible for the legal liability of the enterprise (General Director or Director and Chief Accountant).

9. Inventory Verification

- During the fiscal year, a foreign-invested enterprise must conduct inventory verification at least once and is required to conduct a comprehensive inventory verification of all assets of the enterprise at the end of the fiscal year.

- The results of the inventory verification are reflected in the inventory verification report and the consolidated report of the inventory verification results.

- The consolidated report of the inventory verification results must be attached to the financial statements.

- A foreign-invested enterprise is responsible for ensuring the consistency between the actual value of assets (inventory data) and the data recorded in the accounting books, accounting reports, and financial statements.

10. Strictly Prohibited for Foreign-Invested Enterprises:

- To forge accounting vouchers, record books, and prepare false accounting reports;

- To destroy accounting vouchers, books, and reports before the retention period expires as stipulated by current regulations;

- To misrepresent figures, submit false reports, or force others to misrepresent figures; to use invalid forms and vouchers inconsistent with the registered and approved accounting system;

- To keep any form of off-book records regarding: Assets, materials, sales revenue, other income...

B. Registration and Procedures for Registering Accounting Systems

1. A foreign-invested enterprise must register with the Ministry of Finance the Accounting System to be applied in the enterprise and must obtain written approval from the Ministry of Finance before implementation.

1.1. Before registering the accounting system, a foreign-invested enterprise must select and clearly define the Accounting System applicable to the industry and business sector according to the national economic classification.

1.2. A foreign-invested enterprise must complete the registration of the Accounting System within the prescribed time limit from the date of issuance of the Investment License or Business License. From the effective date of the Investment License or Business License, all economic activities of the foreign-invested enterprise must be recorded in the accounting books.

1.3. When wishing to make changes to the content of the registered Accounting System that has been approved, a foreign-invested enterprise must request in writing from the Ministry of Finance and can only implement these modifications upon written approval from the Ministry of Finance.

2. Time Limit for Registering and Approving Accounting Systems

2.1. Time Limit for Application and Extension of Registration

2.1.2. In case for some reason, a foreign-invested enterprise has not been able to register the Accounting System according to the prescribed deadline, it must submit a letter requesting an extension of the registration of the Accounting System to the Ministry of Finance, stating the reasons and must obtain approval in writing from the Ministry of Finance.

A foreign-invested enterprise must promptly complete the procedures to register the Accounting System according to the extended deadline.

2.2. Time limit for processing the registration dossier

2.2.1. Within twenty days from the date of receipt of a valid registration dossier of the Accounting System of a foreign-invested enterprise, the Ministry of Finance will issue a formal opinion in writing regarding the registration of the accounting system of the enterprise.

2.2.2. In cases where the documents in the registration dossier of the Accounting System of a foreign-invested enterprise are incomplete or unclear as stipulated, the Ministry of Finance will request the foreign-invested enterprise to explain and supplement the documents. The waiting time for the foreign-invested enterprise to explain and supplement the documents does not count towards the response time as specified in Point 2.2.1, Section B.

3. Registration dossier

3.1. When registering the Accounting System with the Ministry of Finance, a foreign-invested enterprise shall submit a registration dossier including: 3.1.1. A letter of registration of the accounting system (according to Form Appendix No. 01). 3.1.2. Investment License (Certified copy, or certified by the Ministry of Planning and Investment).

3.1.3. Appointment and nomination of the Chief Accountant by the Board of Directors or General Director; labor contract signed between the Chief Accountant and the General Director, the Director of the enterprise.

3.1.4. Professional certificates, qualifications (graduation certificates) in the field of accounting - finance; Certificate of having completed the Chief Accountant training program of the Chief Accountant (certified copy).

- Foreign language professional qualification certificates must be certified by a notary office.

3.1.5. Documentation explaining the applied accounting system (in cases of supplementation, reduction, modification of the Vietnamese enterprise's Accounting System or application of another common accounting system).

- In cases where the supplementation, modification, or detailed application of the Vietnamese enterprise's Accounting System at foreign-invested enterprises is proposed to suit the characteristics of production and business activities, detailed documents of the proposed supplementation, modification content (accounting voucher system, accounting account system, accounting ledger system, accounting recording method, financial reporting system) must be submitted. These documents must include classified lists of each item of the proposed supplementation, modification system, accompanied by sample forms and explanations.

- In cases of applying another common accounting system: When registering another common accounting system, a foreign-invested enterprise must clearly explain the reason for choosing another common accounting system; simultaneously submitting a set of documents on the entire accounting system that the foreign-invested enterprise proposes to apply, including the documents specified in Point 3, Section D - Case of applying another common accounting system.

3.2. The dossier sent to the Ministry of Finance includes four sets (bound in volumes):

One set: To be kept at the Ministry of Finance

One set: To be submitted to the local tax authority

Two sets: To be kept at the enterprise.

Registration dossiers of the Accounting System that have been approved will be stamped as registered before circulation.

C. CASE OF APPLYING THE VIETNAMESE ENTERPRISE ACCOUNTING SYSTEM

1. A foreign-invested enterprise applying the Vietnamese Enterprise Accounting System must comply with and implement all current regulations on accounting vouchers, accounting account systems, accounting ledger systems, financial reporting systems, and accounting document storage as prescribed.

2. In cases where it is necessary to supplement, reduce, or modify the content and methods of accounting to suit the characteristics of production and business activities, the enterprise must submit to the Ministry of Finance for review and approval. Any supplementation, reduction, or modification must ensure compliance with and respect for the general principles of the Vietnamese Enterprise Accounting System. A foreign-invested enterprise may only implement a modified Vietnamese Enterprise Accounting System after obtaining written approval from the Ministry of Finance.

- Documents submitted to the Ministry of Finance for supplementation, reduction, or modification of the Vietnamese Accounting System to be applied are regulated in Point 3.1.5 - Section B - Part III.

3. A foreign-invested enterprise registering the application of the Vietnamese Accounting System will be provided with favorable conditions and guidance during the registration and implementation process.

D. CASE OF APPLYING ANOTHER COMMON ACCOUNTING SYSTEM

1. The Ministry of Finance will only consider and approve the application of another common accounting system (other than the Vietnamese Enterprise Accounting System) in the following situations:

- A foreign-invested enterprise with 100% foreign capital proves that it cannot and is not convenient for management if it follows the Vietnamese Enterprise Accounting System, thus must choose another common accounting system.

- A foreign-invested enterprise operating in special sectors where there are no accounting regulations and guidelines in Vietnam.

2. A foreign-invested enterprise proposing to apply another common accounting system must adhere to the following principles:

2.1. Only allowed to apply another common accounting system on four aspects: Forms of the accounting voucher system; list, content, and accounting methods of the accounting account system; forms and recording methods of the accounting ledger system; forms, indicators, and preparation methods of financial reports.

2.2. Must comply with and implement the general principles of the Vietnamese Enterprise Accounting System concerning the accounting voucher system and the accounting ledger system.

3. Documentation of the proposed accounting system to be applied (submitted together with the registration dossier of the Accounting System as stipulated in Point 3.1.5 - Section B - Part III) must include the following contents:

- Accounting policies, principles, and standards applied by the foreign-invested enterprise.

- The list of accounting vouchers to be applied, classified according to six criteria: wage labor, inventory, sales, currency, fixed assets, and production and business operations; accompanied by samples of vouchers to be officially applied.

For self-printed sales invoices, in addition to being submitted in the Registration File for Accounting System, enterprises must submit them to the General Department of Taxation for registration and must obtain approval.

- The list of accounting accounts system (code, name, nature) classified according to the correct principles of account classification, accompanied by documentation explaining the content and methods of accounting entries of the accounts; the relationship between accounts and the general accounting chart regarding the use of the account system (for accounts reflecting major economic transactions related to assets, sources of business capital, and reports on business results).

- The list of the accounting ledger system to be applied (classified according to the system of general ledgers and detailed ledgers), accompanied by samples of official ledgers to be applied; a diagram illustrating the process of recording from original vouchers to general ledgers, detailed ledgers, and financial statement preparation; explanation of the recording method and the relationship between the general ledger system and the detailed ledger system.

Regarding the form of accounting ledgers to be applied, only one of the four common accounting forms currently used in Vietnam may be selected (Journal Ledger, Voucher Journal, Common Journal, Journal-Voucher).

- The list of financial reporting system, accompanied by samples and explanations of the calculation and preparation methods for indicators in financial reports.

The financial reporting system includes: Balance Sheet, Income Statement, Cash Flow Statement, and Notes to Financial Statements.

E. AUDITING WORK AT ENTERPRISES WITH FOREIGN INVESTED CAPITAL

1. For enterprises with foreign invested capital:

1.1. All enterprises with foreign invested capital must conduct audits concerning both compliance with accounting work and financial reports.

1.2. The annual financial report of enterprises with foreign invested capital must be audited by an independent auditing company in Vietnam or another independent auditing company legally permitted to operate in Vietnam, in accordance with the law on auditing, before submission to relevant authorities and public disclosure.

1.3. The audit report must be attached to the annual financial report of enterprises with foreign invested capital when submitting to relevant authorities and publicly disclosing the financial report.

1.4. The audit report includes the following main contents:

1.4.1. Confirmation of the objectivity, truthfulness, and reasonableness of the financial report and accounting figures.

1.4.2. Comments and evaluations on the implementation of accounting work; compliance with the accounting system registered and approved by the Ministry of Finance; compliance with laws, regulations, and accounting rules.

1.4.3. Recommendations.

1.5. The audit report must bear the signature and clearly state the full name and auditor certificate number of the auditor, the signature of the director, and the seal of the independent auditing company.

2. For independent auditing companies when conducting annual financial report audits for enterprises with foreign invested capital:

2.1. Independent auditing companies can only conduct audits based on accounting documents of enterprises with foreign invested capital that have been implemented according to the registered accounting system and approved for application by the Ministry of Finance.

2.2. An independent auditing company that has provided accounting services to establish financial reports for enterprises with foreign invested capital cannot conduct audits on the same financial report.

2.3. An independent auditing company conducting financial report audits for enterprises with foreign invested capital must have independent legal status and must ensure objectivity and impartiality during the audit at the audited enterprise with foreign invested capital.

2.4. Independent auditing companies must be responsible under the law for the independence, impartiality, and truthfulness of the audit results.

IV. PROVISIONS ON CHANGES TO APPLIED ACCOUNTING SYSTEMS

1. Enterprises with foreign invested capital that had registered the Vietnamese Accounting System before January 1, 1996, must implement the transition to comply with the current Enterprise Accounting System issued by Decision No. 1141 TC/QĐ/CĐKT dated November 1, 1995, of the Ministry of Finance.

2. Enterprises with foreign invested capital that had registered and were accepted for other common accounting systems not covered by Section D - Part III after a one-year period (from the date this Circular takes effect) must switch to applying the Vietnamese Enterprise Accounting System and must re-register the applied accounting system at the Ministry of Finance in accordance with the provisions of this Circular.

3. Enterprises with foreign invested capital that have been granted Investment Licenses or Operating Licenses up to now but have not yet registered their accounting systems with the Ministry of Finance should promptly complete necessary procedures and register the applied accounting system in accordance with the provisions of this Circular.

V. IMPLEMENTATION AND EFFECTIVE DATE

This Circular replaces Circular No. 84 TC/CĐKT dated October 23, 1993, of the Ministry of Finance and takes effect from the date of issuance.

Entities subject to Article 1.1, 1.2 - Part I - Scope of Application of this Circular must strictly comply with all provisions of this Circular. Any violation of the provisions of this Circular will be handled according to the Accounting and Statistics Ordinance dated May 10, 1988, and the Administrative Penalty Regulations of the Socialist Republic of Vietnam.

State agencies with relevant functions are responsible for guiding, directing, and inspecting enterprises under their management in accordance with the provisions of this Circular.

During the implementation of this Circular, if there are difficulties or obstacles, please report to the Ministry of Finance for timely resolution.

Vu Mong Giao (Signed)

 

MODEL OF OFFICIAL LETTER

REGISTRATION OF ACCOUNTING SYSTEM (ANNEX 01)

Name of unit:...	SOCIALIST REPUBLIC OF VIETNAM
Official address:...	Independence - Freedom - Happiness
Letter number:...
Tel:...; Fax:...
Re: Registration of accounting system	...day... month... year...

Respected: Ministry of Finance (Accounting System Department)

- Based on the Law on Foreign Investment in Vietnam adopted by the National Assembly on November 12, 1996.

- BASED ON Decree 12/CP dated February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam.

- BASED ON Circular... TC/CĐKT, dated... / ... / 1997 of the Ministry of Finance regarding "Guidelines for Accounting and Auditing Work for Enterprises and Organizations with Foreign Investment in Vietnam".

Company Name:…

Industry:…

Pursuant to Investment License (Operating License) number:…, dated... month... year... of the Ministry of Planning and Investment (Ministry of Justice).

Request to register the application of accounting system as follows:

1. Applicable Accounting System: Vietnam (or foreign).

Of the industry: …(industry, construction, agriculture, services,...)

- Initial Document System:…

- Account System:…

- Accounting Ledger System: (Choose one of the four accounting forms: General Journal, Bookkeeping Voucher, Journal Voucher, Journal - Ledger).

- Financial Reporting System: Balance Sheet, Income Statement, Cash Flow Statement, Notes to Financial Statements.

2. Language Used in Accounting: Vietnamese and…

3. Currency Unit Used in Accounting:…

Other currencies arising must be converted into…according to the transaction exchange rate of the economic activity occurring, or the rate published by the State Bank of Vietnam at the time of occurrence of the economic activity.

Measurement Units Used in Accounting: In accordance with the officially applied measurement system in Vietnam.

4. Accounting Period Applied: First Accounting Period: From... to...

Subsequent Accounting Periods: From... to…annually.

5. Depreciation System:…

Request the Ministry of Finance to consider and approve

Credit organization branch in province/city and basic credit cooperative…
(Signature and stamp)

Place of Receipt:
- As above
- To be kept at the unit