Which companies must be audited in Vietnam? As a general principle, the mandatory audit in Vietnam depends on the type of entity, its size and its industry at the end of the financial year. Public-interest entities such as listed and public companies, credit institutions, securities companies and insurers, state-owned enterprises, and companies above the statutory size thresholds generally must have their financial statements audited. Many other businesses are asked for an audit by banks, joint-venture partners or parent companies. This guide explains the rules in plain terms for foreign investors, Australian and New Zealand groups with Vietnamese subsidiaries, and Singapore investors.
What Is a Mandatory Audit in Vietnam?
A mandatory audit in Vietnam is an audit that the law requires an entity to obtain each year, regardless of whether its owners want one. An independent auditor reviews whether the financial statements give a true and fair view and comply with Vietnamese Accounting Standards (VAS). The auditor then issues an audit report. A voluntary audit, by contrast, is commissioned for a business purpose, such as a bank loan, a capital raising or a sale to an investor.
Audit Requirements in Vietnam
- Public-interest entities: listed and public companies, and other entities that matter to the financial market.
- Financial institutions: credit institutions, securities companies and insurers, which are also supervised by sector regulators.
- State-owned enterprises and companies with state capital, as defined under current rules.
- Companies above size thresholds for total assets, revenue or headcount in the financial year.
- Entities with specific requirements from regulators, funds or contractual partners.
These categories are a guide only. Thresholds change over time, so check the rules in force at your balance date before deciding.
Vietnam vs Australia, New Zealand and Singapore
| Criteria | Vietnam | Australia | New Zealand | Singapore |
|---|---|---|---|---|
| Who must be audited | Public-interest entities, financial institutions, state-owned enterprises and companies above size thresholds | Public companies and large proprietary companies, tested on revenue, gross assets and employees | Large companies, tested on total assets and revenue, with extra rules for overseas-owned companies | Private companies that do not meet the small company tests on revenue, total assets and employees |
| Who signs the audit report | Auditor licensed to practise at a licensed audit firm | Registered company auditor (check the ASIC register) | Licensed auditor under New Zealand law | Registered public accountant |
| Regulator | Ministry of Finance (audit firm licensing) | ASIC | External Reporting Board for standards; Companies Office for filings | ACRA |
| Accounting standards | VAS; auditing under VSA | AASB | NZ IFRS | SFRS(I) |
| Fees and timing (indicative) | Varies; request a quote | Varies; request a quote | Varies; request a quote | Varies; request a quote |
| Key legal difference | Foreign investors may face conditions on ownership in some sectors | Thresholds have been changed by regulation in the past | Thresholds are inflation-adjusted and reviewed | Small company thresholds are under ACRA review |
Group Reporting: VAS, AASB, NZ IFRS and SFRS(I) Compared
If a Vietnamese subsidiary reports to an Australian, New Zealand or Singapore parent, the group usually needs the local numbers converted into the parent's reporting framework. VAS and international standards differ in areas such as asset revaluation, financial instruments, leases and revenue recognition, so a consolidation pack often needs adjustment entries. Plan this early. The audit of the Vietnamese entity and the group reporting timetable should be agreed together, and the auditor should know which standard the parent uses.
Common Scenarios for Foreign Investors
- A Vietnamese subsidiary that borrows from a bank may need audited statements under the loan terms, even if the law does not require it.
- A company that grew past a threshold during the year may become subject to a mandatory audit from the following year. Review the numbers at each year-end.
- A joint venture with a foreign partner often needs an audit under the shareholder agreement, with reporting in a second format for the partner.
Step-by-Step: Checking Whether Your Company Must Be Audited
- Identify the entity type. A private company, a public company, a listed company, a credit institution and a state-owned enterprise each follow different rules.
- Collect the year-end figures: total assets, total revenue and average headcount for the financial year.
- Compare each figure with the threshold in force at that balance date. Some rules look at more than one year, so check the prior year as well.
- Read the charter, the shareholder agreement, the loan facilities and any partner contracts. These documents often require an audit even when the law does not.
- Record the conclusion in writing. A short memo on file helps if a regulator, bank or investor later asks why an audit was or was not performed.
Why Some Businesses Choose a Voluntary Audit in Vietnam
Many businesses outside the mandatory categories still commission an audit. A bank may ask for audited statements before approving a credit limit. An investor may want independent numbers before buying a stake. A parent company may need an audited pack to consolidate the subsidiary into group accounts in Australia, New Zealand or Singapore. Management may simply want numbers it can rely on when planning prices, costs or expansion. In each case the audit has a clear purpose, and the scope should reflect that purpose.
Documents Usually Requested for an Audit in Vietnam
- Business registration certificate, charter and records of capital changes during the year.
- Annual financial statements, trial balance and general ledger for the main accounts.
- Loan agreements, material commercial contracts and minutes of board or shareholder meetings.
- Asset registers, stocktake records, payroll summaries and headcount records.
- Tax returns and invoice listings for the year, with supporting documents for large transactions.
Providing these documents in an organised way shortens the audit. Where records are in English, keep a Vietnamese summary of the key terms, and the reverse. Our team can read both.
Common Pitfalls for Foreign Investors
Foreign investors often underestimate three issues. The first is timing: a Vietnamese audit must be finished before the filing deadline, and a parent's group reporting calendar may be earlier. The second is standards: a pack prepared only under VAS may not give the parent what it needs under IFRS-based standards, so the scope must say which framework applies. The third is language: an audit report in Vietnamese may need a reliable English translation for the parent's auditors, and the translation should be checked against the original. Agreeing these points at the start avoids rework near the deadline.
Who Should Be Involved on Your Side
A smooth audit usually needs three people on the client side: a finance lead who knows the ledgers, a manager who can approve responses to queries, and an administrative contact who can gather documents. For groups, add a contact at the parent who understands the reporting timetable. Naming these people at the start shortens response times and reduces the number of follow-up requests.
How DAVA supports foreign companies and expats in Vietnam
DAVA operates under the legal entity Công ty TNHH Hãng Định Giá và Kiểm Toán Châu Á (AAVC), which covers valuation and audit. Our valuation team has more than 15 years of experience across real estate, businesses and machinery and equipment, and has provided valuations for courts, government agencies, banks and companies. For foreign clients we usually follow this process:
- An initial call to confirm the purpose, the entity type and the deadline.
- A document checklist in English and Vietnamese, with a scope agreed in writing.
- Audit work with regular updates to your management or to your parent company's finance team.
- Delivery of the report, with a bilingual summary when requested.
Our team can work with you in English; documents can be prepared bilingually.
For Australian clients, you can reach us on WhatsApp at +61 451 710 342 (Qualified AU Pty Ltd). You can also email voan.sgg@gmail.com. Vietnamese contact details are listed at the end of the Vietnamese version of this guide.
Conclusion
Whether a company must be audited in Vietnam depends on its type, size and regulatory status at year-end. Foreign investors should confirm the rules early, prepare documents bilingually, and align the Vietnamese audit with group reporting in Australia, New Zealand or Singapore. Contact DAVA for a scoped quote.
