A Summary of All Accounting Standards in Vietnam

Introduction

Accounting standards are the foundation of financial reporting. They establish principles for how businesses recognize, measure, present, and disclose transactions and balances in their financial statements.

In Vietnam, the primary framework for corporate accounting is the Vietnamese Accounting Standards, commonly known as VAS (Vietnamese Accounting Standards). The Ministry of Finance developed VAS through five major issuance phases between 2001 and 2005. The system currently consists of 26 accounting standards, numbered from VAS 01 to VAS 30, although not every number in the sequence has been issued.

It is important to distinguish VAS from the Vietnamese accounting regime. VAS establishes accounting principles and requirements, while detailed accounting practices for enterprises are also governed by regulations such as Circular 200/2014/TT-BTC, which provides guidance on accounting records, accounts, books, and financial statement preparation. Circular 200 applies to enterprises across sectors and economic forms within its scope.

This article provides a practical summary of all 26 Vietnamese Accounting Standards.

1. VAS 01 – General Standards

VAS 01 – General Standards establishes the fundamental accounting principles underlying Vietnamese financial reporting.

Key principles include:

• Accrual basis

• Going concern

• Historical cost

• Consistency

• Prudence

• Materiality

• Recognition of assets, liabilities, equity, revenue and expenses

VAS 01 is particularly important because it provides the conceptual foundation for applying other VAS standards.

Practical example: A company normally recognizes revenue when the relevant recognition conditions are satisfied rather than simply when cash is received.

2. VAS 02 – Inventories

VAS 02 – Inventories addresses the recognition, measurement and presentation of inventories.

Inventory generally includes:

• Raw materials

• Work in progress

• Finished goods

• Merchandise

• Supplies

A major principle is that inventory is generally measured at the lower of cost and net realizable value.

Cost can include:

• Purchase costs

• Conversion costs

• Other costs incurred to bring inventory to its present location and condition

Practical importance: Companies need appropriate inventory costing methods and must consider whether inventory has become obsolete, damaged or difficult to sell.

3. VAS 03 – Tangible Fixed Assets

VAS 03 – Tangible Fixed Assets governs accounting for physical assets used in business operations.

Examples include:

• Buildings

• Machinery

• Equipment

• Vehicles

• Production facilities

The standard addresses:

• Initial recognition

• Initial measurement

• Depreciation

• Disposal

• Subsequent expenditure

A fixed asset should generally provide future economic benefits and have a reliably measurable cost before it is recognized.

4. VAS 04 – Intangible Fixed Assets

VAS 04 – Intangible Fixed Assets applies to identifiable non-monetary assets without physical substance.

Examples include:

• Software

• Patents

• Copyrights

• Licenses

• Certain technology-related rights

The standard addresses recognition, measurement, amortization and disposal of intangible fixed assets.

Businesses should distinguish between expenditure that qualifies for capitalization and expenditure that should be recognized immediately as an expense.

5. VAS 05 – Investment Property

VAS 05 – Investment Property deals with property held primarily to earn rentals or for capital appreciation rather than for:

• Production or supply of goods or services;

• Administrative purposes; or

• Sale in the ordinary course of business.

Examples may include:

• Buildings held for rental

• Land held for long-term capital appreciation

The accounting treatment differs from owner-occupied property and inventory because the economic purpose of the asset is different.

6. VAS 06 – Leases

VAS 06 – Leases addresses accounting for lease transactions.

The standard distinguishes between:

• Finance leases

• Operating leases

A finance lease transfers substantially all the risks and rewards incidental to ownership of an asset.

This standard is particularly relevant for companies leasing:

• Machinery

• Vehicles

• Buildings

• Production equipment

Important IFRS difference: VAS 06 is significantly different from IFRS 16 Leases, under which most leases are recognized by lessees through a right-of-use asset and lease liability.

7. VAS 07 – Investments in Associates

VAS 07 – Accounting for Investments in Associates deals with investments where an investor has significant influence over another entity.

An associate is generally characterized by significant influence rather than full control.

The standard addresses:

• Recognition of investments

• Measurement

• Changes in investment value

• Presentation and disclosure

This standard becomes particularly important for groups of companies and investment structures.

8. VAS 08 – Financial Reporting of Interests in Joint Ventures

VAS 08 – Financial Reporting of Interests in Joint Ventures addresses accounting for investments and interests in joint ventures.

It covers situations where two or more parties jointly control an economic activity.

Important areas include:

• Jointly controlled operations

• Jointly controlled assets

• Jointly controlled economic entities

• Financial statement presentation

9. VAS 10 – Effects of Changes in Foreign Exchange Rates

VAS 10 – Effects of Changes in Foreign Exchange Rates deals with foreign currency transactions and foreign operations.

This is particularly important for:

• Importers

• Exporters

• Foreign-invested enterprises

• Companies with foreign currency loans

• Multinational groups

The standard addresses:

• Initial recognition of foreign currency transactions

• Translation at reporting dates

• Exchange differences

• Translation of financial statements of foreign operations

Foreign exchange accounting can have a significant impact on profit and loss, particularly for companies with substantial foreign currency exposure.

10. VAS 11 – Business Combinations

VAS 11 – Business Combinations deals with accounting for business combinations.

Examples include:

• Acquisitions

• Mergers

• Corporate restructuring transactions

The standard addresses issues such as:

• Identification of the acquiring entity

• Measurement of assets and liabilities acquired

• Goodwill

• Negative goodwill

• Financial statement presentation

Business combination accounting is especially important for corporate groups involved in mergers and acquisitions.

11. VAS 14 – Revenue and Other Income

VAS 14 – Revenue and Other Income establishes principles for recognizing revenue and other income.

It covers revenue from activities such as:

• Sale of goods

• Rendering of services

• Interest

• Royalties

• Dividends

Revenue recognition generally depends on whether the relevant risks, rewards, economic benefits and measurement conditions have been satisfied.

VAS 14 and IFRS 15

One of the most important differences for accounting professionals is that VAS 14 is not equivalent to IFRS 15.

IFRS 15 uses a comprehensive five-step revenue recognition model based on contracts with customers, while VAS 14 uses a more traditional approach.

12. VAS 15 – Construction Contracts

VAS 15 – Construction Contracts deals with revenue and costs associated with construction contracts.

It is relevant to:

• Construction companies

• Infrastructure projects

• Engineering businesses

• Long-term construction arrangements

A key issue is determining when revenue and costs should be recognized over the contract period.

13. VAS 16 – Borrowing Costs

VAS 16 – Borrowing Costs addresses costs associated with borrowing funds.

Borrowing costs may include:

• Interest expense

• Certain financing-related costs

• Other costs associated with borrowing

An important issue is determining when borrowing costs can be capitalized into the cost of a qualifying asset rather than immediately expensed.

Example: Interest incurred during the construction of a qualifying production facility may potentially be capitalized when the relevant conditions are satisfied.

14. VAS 17 – Income Taxes

VAS 17 – Income Taxes deals with accounting for corporate income tax.

The standard addresses:

• Current income tax

• Deferred income tax

• Temporary differences

• Deferred tax assets

• Deferred tax liabilities

Deferred tax accounting is important because accounting profit and taxable profit may differ.

Example: An accounting depreciation method may differ from the tax depreciation method, creating a temporary difference and potentially a deferred tax balance.

15. VAS 18 – Provisions, Contingent Assets and Contingent Liabilities

VAS 18 deals with uncertain future obligations and potential assets.

It addresses:

• Provisions

• Contingent liabilities

• Contingent assets

A provision may be recognized when the relevant conditions are satisfied, including the existence of a present obligation and the ability to make a reliable estimate.

Examples:

• Litigation provisions

• Warranty obligations

• Restructuring obligations

• Environmental obligations

16. VAS 19 – Insurance Contracts

VAS 19 – Insurance Contracts addresses accounting for insurance contracts.

It is particularly relevant to:

• Insurance companies

• Insurance contract liabilities

• Insurance-related revenue and expenses

The standard provides specific accounting requirements for insurance activities.

17. VAS 21 – Presentation of Financial Statements

VAS 21 – Presentation of Financial Statements establishes general requirements for financial statement presentation.

It covers the presentation of:

• Balance sheet

• Income statement

• Cash flow information

• Notes to financial statements

The standard emphasizes consistency, comparability and appropriate classification and disclosure.

VAS 21 is therefore one of the most important standards for anyone preparing or reviewing Vietnamese financial statements.

18. VAS 22 – Supplementary Financial Statement Disclosures for Banks and Similar Financial Institutions

VAS 22 establishes additional presentation and disclosure requirements for banks and similar financial institutions.

It recognizes that financial institutions have different:

• Assets

• Liabilities

• Risk profiles

• Sources of income

• Financial instruments

Consequently, their financial statements require additional information compared with ordinary trading or manufacturing companies.

19. VAS 23 – Events After the Balance Sheet Date

VAS 23 – Events After the Balance Sheet Date deals with events occurring between:

The financial statement reporting date → and → the date the financial statements are authorized for issue.

Events may be:

Adjusting events

These provide additional evidence about conditions that already existed at the reporting date.

Non-adjusting events

These relate to conditions that arose after the reporting date.

Example: A major fire occurring after year-end may be a non-adjusting event but could require disclosure if material.

20. VAS 24 – Cash Flow Statements

VAS 24 – Cash Flow Statements establishes requirements for preparing cash flow statements.

Cash flows are generally classified into:

1. Operating activities

2. Investing activities

3. Financing activities

Cash flow information helps users understand:

• How the company generates cash

• Where cash is invested

• How financing is obtained

• Whether reported profits are supported by cash generation

21. VAS 25 – Consolidated Financial Statements and Accounting for Investments in Subsidiaries

VAS 25 addresses consolidated financial statements and investments in subsidiaries.

It is particularly important for corporate groups.

The standard covers:

• Parent companies

• Subsidiaries

• Group consolidation

• Elimination of intra-group transactions

• Presentation of consolidated financial statements

For example, if Company A controls Company B, the group may need to prepare consolidated financial statements rather than simply presenting the parent company's individual financial statements.

22. VAS 26 – Related Party Disclosures

VAS 26 – Related Party Disclosures establishes requirements for disclosing relationships and transactions involving related parties.

Related parties may include:

• Parent companies

• Subsidiaries

• Associates

• Key management personnel

• Entities under common control

• Other qualifying related parties

Disclosures can include:

• Nature of relationships

• Transactions

• Outstanding balances

• Other relevant information

The Ministry of Finance has specifically addressed the interaction between VAS 26 and related-party definitions in other Vietnamese laws, emphasizing that companies may need to consider additional requirements under legislation such as the Enterprise Law and Securities Law.

23. VAS 27 – Interim Financial Reporting

VAS 27 – Interim Financial Reporting addresses financial statements prepared for periods shorter than a full financial year.

Examples include:

• Quarterly reports

• Semi-annual reports

Interim reporting allows investors, lenders and management to receive financial information more frequently.

24. VAS 28 – Segment Reporting

VAS 28 – Segment Reporting addresses financial information relating to different business or geographical segments.

For example, a diversified group might operate:

• Manufacturing

• Retail

• Financial services

• Technology

Segment reporting can help users understand which parts of the business generate revenue, profits and risks.

25. VAS 29 – Accounting Policies, Accounting Estimates and Errors

VAS 29 deals with three important accounting areas:

Accounting policies

These are the specific principles and methods used by an entity in preparing financial statements.

Accounting estimates

These are amounts subject to estimation because they cannot be measured with complete precision.

Examples include:

• Useful lives

• Provisions

• Bad debt estimates

Accounting errors

The standard establishes principles for correcting material accounting errors.

This standard is particularly important when preparing comparative financial statements and determining whether adjustments should be prospective or retrospective.

26. VAS 30 – Earnings per Share

VAS 30 – Earnings per Share (EPS) addresses the calculation and presentation of earnings per share.

It covers:

• Basic EPS

• Diluted EPS

EPS is particularly relevant for listed companies and companies with publicly traded shares because it helps investors assess earnings attributable to each ordinary share.

Summary Table of the 26 Vietnamese Accounting Standards

VAS	Accounting Standard	Main Topic
VAS 01	General Standards	Fundamental accounting principles
VAS 02	Inventories	Inventory recognition and measurement
VAS 03	Tangible Fixed Assets	Property, plant and equipment
VAS 04	Intangible Fixed Assets	Intangible assets
VAS 05	Investment Property	Property held for rental/capital appreciation
VAS 06	Leases	Finance and operating leases
VAS 07	Investments in Associates	Significant influence investments
VAS 08	Joint Ventures	Joint venture interests
VAS 10	Foreign Exchange	Foreign currency transactions
VAS 11	Business Combinations	Mergers and acquisitions
VAS 14	Revenue and Other Income	Revenue recognition
VAS 15	Construction Contracts	Construction revenue and costs
VAS 16	Borrowing Costs	Interest and qualifying assets
VAS 17	Income Taxes	Current and deferred tax
VAS 18	Provisions & Contingencies	Provisions and contingent items
VAS 19	Insurance Contracts	Insurance accounting
VAS 21	Financial Statement Presentation	Presentation and disclosure
VAS 22	Banks & Similar Institutions	Supplementary bank disclosures
VAS 23	Events After Reporting Date	Subsequent events
VAS 24	Cash Flow Statements	Operating, investing and financing cash flows
VAS 25	Consolidation	Subsidiaries and consolidated accounts
VAS 26	Related Parties	Related-party disclosures
VAS 27	Interim Reporting	Interim financial statements
VAS 28	Segment Reporting	Business/geographical segments
VAS 29	Policies, Estimates & Errors	Accounting changes and corrections
VAS 30	Earnings per Share	Basic and diluted EPS

The complete list of 26 standards and their five issuance phases is consistent with current Vietnamese accounting references.

The Five Issuance Phases of VAS

The 26 standards were introduced through five major decisions of the Ministry of Finance:

Phase 1 – 2001

Four standards:

• VAS 02

• VAS 03

• VAS 04

• VAS 14

Phase 2 – 2002

Six standards:

• VAS 01

• VAS 06

• VAS 10

• VAS 15

• VAS 16

• VAS 24

Phase 3 – 2003

Six standards:

• VAS 05

• VAS 07

• VAS 08

• VAS 21

• VAS 25

• VAS 26

Phase 4 – 2005

Six standards:

• VAS 17

• VAS 22

• VAS 23

• VAS 27

• VAS 28

• VAS 29

Phase 5 – 2005

Four standards:

• VAS 11

• VAS 18

• VAS 19

• VAS 30

These five issuance phases resulted in the current framework of 26 VAS standards.

VAS vs IFRS: What Is the Difference?

One of the most important issues for Vietnamese accountants is understanding the difference between VAS and IFRS.

VAS was developed with reference to international accounting standards, but it is not identical to IFRS.

Some important areas where differences can arise include:

Topic	VAS	IFRS
Revenue	VAS 14	IFRS 15
Leases	VAS 06	IFRS 16
Financial instruments	Limited dedicated VAS framework	IFRS 9
Investment property	VAS 05	IAS 40
Fixed assets	VAS 03	IAS 16
Intangible assets	VAS 04	IAS 38
Inventory	VAS 02	IAS 2
Income taxes	VAS 17	IAS 12
Consolidation	VAS 25	IFRS 10
Associates	VAS 07	IAS 28
Business combinations	VAS 11	IFRS 3
Cash flows	VAS 24	IAS 7
Accounting policies/errors	VAS 29	IAS 8
EPS	VAS 30	IAS 33
Provisions	VAS 18	IAS 37

Therefore, an organization reporting under VAS cannot simply assume that its accounting policies comply with IFRS.

This distinction is especially important for FDI companies, multinational groups, listed companies, companies preparing IFRS conversion adjustments, and businesses reporting to overseas shareholders.

VAS and Circular 99/2025/TT-BTC: Do Not Confuse Them

A common mistake among accounting students and practitioners is treating Vietnamese Accounting Standards (VAS) and Circular 99/2025/TT-BTC as the same thing. They are not.

VAS establishes accounting standards and fundamental accounting principles for financial reporting.

Circular 99/2025/TT-BTC, issued by the Ministry of Finance on October 27, 2025, provides guidance on the enterprise accounting regime, including accounting documents, accounting accounts, accounting books, and the preparation and presentation of financial statements. It officially took effect on January 1, 2026, and applies to financial years beginning on or after January 1, 2026. It replaces Circular 200/2014/TT-BTC, subject to specific transitional exceptions.

One useful way to understand the framework is:

Accounting Law and related legislation↓Vietnamese Accounting Standards (VAS)↓Circular 99/2025/TT-BTC – Enterprise Accounting Regime↓Company accounting policies↓Accounting transactions and journal entries↓Financial statements and disclosures

What Does Circular 99/2025/TT-BTC Cover?

Circular 99/2025/TT-BTC provides guidance on several important areas of enterprise accounting, including:

• Accounting documents and supporting records

• Accounting accounts

• Accounting books

• Recognition and recording of accounting transactions

• Financial statement preparation

• Financial statement presentation

• Accounting policies and related requirements

• Specific accounting treatments for different types of transactions

The Circular also introduces a number of changes compared with the previous accounting regime. For example, certain account names have been changed, and the financial statement presentation framework has been updated.

Therefore, when preparing Vietnamese financial statements from 2026 onward, companies should consider Circular 99/2025/TT-BTC together with the applicable VAS standards and other relevant Vietnamese laws and regulations.

Important Transitional Point

Although Circular 99/2025/TT-BTC generally replaces Circular 200/2014/TT-BTC from January 1, 2026, certain provisions relating to accounting for the equitization of state-owned enterprises under Circular 200 continue to apply until a replacement regulation is issued.

This means that it is more accurate to say:

Circular 99/2025/TT-BTC replaces Circular 200/2014/TT-BTC for the enterprise accounting regime from 2026, subject to specified transitional provisions.

Why This Update Matters

The distinction between VAS and Circular 99/2025/TT-BTC is particularly important for:

• Vietnamese accountants

• Chief accountants

• External and internal auditors

• Finance managers

• CFOs

• Tax professionals

• Foreign-invested enterprises

• Multinational companies operating in Vietnam

• Companies preparing VAS-to-IFRS conversion adjustments

VAS determines the underlying accounting principles, while Circular 99 provides the detailed framework for applying the enterprise accounting regime in practice.

Accordingly, a company preparing its 2026 Vietnamese financial statements should no longer rely on Circular 200 as the primary enterprise accounting regime. The starting point should be Circular 99/2025/TT-BTC, together with the applicable VAS standards and other relevant regulations.

Conclusion

Vietnam's accounting framework should therefore be understood as a combination of Vietnamese Accounting Standards (VAS) and detailed accounting regulations issued by the Ministry of Finance.

The 26 VAS standards provide the core accounting principles covering areas such as inventories, fixed assets, revenue, income taxes, leases, financial statements, consolidation, related parties, accounting policies and earnings per share.

For the practical operation of the enterprise accounting system, Circular 99/2025/TT-BTC is now the key regulation from 2026, replacing Circular 200/2014/TT-BTC for the enterprise accounting regime, subject to specified exceptions.

For accounting professionals, therefore, understanding Vietnam's accounting framework requires knowledge of three interconnected layers:

VAS → Circular 99/2025/TT-BTC → Company Accounting Policies

This framework provides the basis for recording transactions and preparing Vietnamese financial statements, while companies with international reporting requirements may additionally need to reconcile their VAS financial statements to IFRS.

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