If your company or group operates in Vietnam through a foreign-invested enterprise, you will often need an independent audit of its financial statements. For Australian, New Zealand and Singaporean businesses, the audit for a foreign-owned company in Vietnam is usually also the basis for group reporting to the parent. This guide explains who needs an audit, how the process works, what documents to prepare, and how Vietnamese reporting compares with Australian, New Zealand and Singapore standards.
Which foreign-invested companies need an audit in Vietnam?
Under Vietnamese law, many foreign-invested enterprises must have their annual financial statements audited, and the audit report is normally filed with the financial statements. Whether a particular entity is caught depends on its legal structure, sector and size, and the rules change over time. Confirm the current position before you plan the engagement.
Branches, representative offices and subsidiaries held through several layers can have different obligations. A sensible first step is to map the legal structure and identify which entities need an audit and by when.
Audit process for a foreign-invested company in Vietnam
- Scope and engagement: agree the financial year, the entities covered, the accounting framework and the purpose of the report (tax authority, bank or parent company).
- Engagement letter: confirm scope, timetable, fees and each party's responsibilities.
- Planning: understand the business and internal controls, and assess the risk of material misstatement.
- Fieldwork: test balances and transactions, reconcile receivables and payables, and check inventory, fixed assets and related-party dealings.
- Discussion with management: resolve open points and obtain written explanations.
- Audit report: issued with a management letter if control weaknesses need attention.
Documents to prepare
- Business registration certificate, investment registration certificate or equivalent, company charter and records of capital changes.
- General ledger, trial balance, balance sheet and profit and loss for the audit period.
- Contracts and a schedule of transactions with the parent, sister companies and other related parties.
- Minutes of members' or board meetings and owner decisions relating to capital.
- Fixed asset register, inventory listings and reconciled receivables and payables.
- Tax returns and tax notices for the period, plus any tax inspection records.
- The group reporting pack and the parent's reporting calendar, if applicable.
Group reporting: VAS, IFRS and consolidation to the parent
Vietnamese statutory accounts are prepared under Vietnamese Accounting Standards (VAS). A parent in Australia, New Zealand or Singapore will usually consolidate under IFRS-based standards. Differences in revenue recognition, leases, financial instruments and deferred tax can create reconciling items, so agree the reporting bridge early.
Three points to settle at the start: which framework the Vietnamese audit report covers, what format the group reporting pack takes, and when the parent needs audited numbers. Setting these out before fieldwork starts avoids rework near the parent's deadline.
Vietnam vs Australia, New Zealand and Singapore
| Criteria | Vietnam | Australia | New Zealand | Singapore |
|---|---|---|---|---|
| Accounting standards | Vietnamese Accounting Standards (VAS) | Australian Accounting Standards (AASB), based on IFRS | NZ IFRS, which is fully converged with IFRS Standards | SFRS(I) |
| Audit requirement | Many foreign-invested enterprises need an annual statutory audit | Depends on entity size and type; check with ASIC | Depends on entity type; check with the Companies Office or XRB | Depends on company size and exemption conditions; check with ACRA |
| Fees and timing | Depends on size and scope; a quote follows review of the file | Varies; request a quote | Varies; request a quote | Varies; request a quote |
| Foreign ownership | Permitted in many sectors, subject to sector conditions | Foreign investment rules apply by sector | Foreign investment rules apply by sector | Foreign investment rules apply by sector |
Approximate fee comparison (illustrative figure only, rounded): VND 10 million is roughly AUD 540, NZD 660 or SGD 490. Exchange rates change daily, so treat these as a guide only.
How DAVA supports foreign companies and expats in Vietnam
DAVA is a Vietnamese valuation and audit group operating through Công ty TNHH Hãng Định Giá và Kiểm Toán Châu Á (AAVC). The team has more than 15 years of experience in property, business and equipment valuation, and offices in Ho Chi Minh City, Hanoi and Da Nang. Where audits involve asset values, capital contributions or restructuring, valuation experience helps identify the items that need closer review.
Our team can work with you in English; documents can be prepared bilingually.
- Email: voan.sgg@gmail.com
- WhatsApp for Australian clients (Qualified AU Pty Ltd): +61 451 710 342
Common issues in a new foreign-owned subsidiary
The first audit of a new subsidiary often turns up opening balances that have not been properly documented, capital contributions recorded in the wrong currency, and pre-operating costs that were expensed or capitalised inconsistently. Ask the parent for a mapping of its chart of accounts to the Vietnamese accounting system before the year closes, and agree how foreign currency balances will be translated. Doing this early avoids adjustments late in the process.
Related-party transactions and tax exposure
Intercompany loans, management fees and cost recharges are the areas auditors examine most closely. Each transaction should have a written contract, invoices, evidence of payment and a reconciliation with the counterparty. Pricing that differs from what the parent reports elsewhere will raise questions, so align the documentation before fieldwork.
An audit opinion is not a tax clearance. A clean audit report does not confirm that there is no tax exposure, particularly on related-party pricing. Review tax positions separately with a qualified adviser, and keep that review distinct from the audit engagement.
Timing around the parent's reporting deadline
Work backwards from the date the parent needs its consolidation numbers. Where the Vietnamese statutory deadline falls later than the group deadline, plan interim work during the year and agree a query process so questions are answered within a set number of days. A shared document checklist, updated weekly, is one of the simplest ways to keep the timetable on track.
Choosing an audit firm for a foreign-invested company
When comparing firms, check that the firm is licensed to audit in Vietnam, whether it is a Vietnamese firm or a licensed branch of a foreign firm. Ask about experience in your sector, whether the team can report under the framework your parent uses, and who will handle day-to-day communication. A clear engagement letter with scope, timetable and fees is a good sign of how the engagement will run. Ask for a written quote based on a review of your file.
