Vietnam accounting standards update 2026
Beyond just a change in accounting techniques, Circular No. 99/2025/TT-BTC is considered a significant shift in accounting thinking, moving from adhering to standardized forms to serving management based on the nature of transactions. This requires businesses to proactively review and comprehensively upgrade their accounting systems according to Vietnam accounting standards update 2026.
1. The new accounting framework
Circular No. 99/2025/TT-BTC (Circular 99), guiding the accounting regime for businesses, was issued by the Ministry of Finance on October 27, 2025, replacing Circular No. 200/2014/TT-BTC (Circular 200). It takes effect from January 1, 2026, and applies to fiscal years beginning on or after this date. The Circular was developed in the context of the amended and supplemented Accounting Law, with the aim of strengthening decentralization, reducing administrative procedures, and enhancing the role of internal business governance.
In discussions with the business community in Ho Chi Minh City regarding this new policy, Ms. Ha Thi Phuong Thanh, Deputy Head of the Audit Management and Supervision Department (VAS to IFRS transition Vietnam update), stated that Circular 99 was developed based on the following principles: inheriting the still relevant provisions of Circular 200; amending and addressing the shortcomings of the old mechanism; adopting international practices based on Vietnamese Accounting Standards (VAS); strengthening decentralization and delegation of authority to businesses; and creating proactiveness and flexibility in accounting for economic transactions.
Circular 99 provides guidance on financial reporting reform Vietnam FDI documents, accounting account systems, accounting record keeping, and financial statement preparation. A key highlight is the regulation on internal governance and control (Article 3).
According to regulations, businesses are responsible for developing their own internal governance regulations or equivalent documents to clearly define the rights, obligations, and responsibilities of departments and individuals involved in the creation, execution, management, and control of economic transactions.
Accounting regulation changes Vietnam impact
In addition, accounting personnel are given clearer authority. If an accountant has a different professional opinion from the Chief Accountant or the legal representative, they have the right to reserve their opinion and report it to a higher level. If they still have to implement the superior’s decision, the accountant is protected and not held responsible for its implementation.
Regarding the currency in accounting, Circular 99 continues to affirm that the Vietnamese Dong is the accounting currency according to the Accounting Law, while also providing more detailed guidance on the criteria for businesses to choose a foreign currency as their accounting currency. In addition, businesses are free to design, modify, and supplement accounting documents, ledgers, and accounting chart of accounts, but they must issue accounting regulations or equivalent documents and be held legally responsible.
Circular 99 also introduces many significant changes to the accounting chart of accounts and accounting methods for important transactions. It also allows businesses to add items to financial statements, provided they comply with the principles of preparation, presentation, and full disclosure.
2. Businesses need to proactively update their practices.
In an interview with a reporter from the Vietnam Financial Times regarding Circular 99, Ms. Nguyen Thi Thuy Duong, General Director of Hinh Lam Tax Consulting Services Co., Ltd., stated that although this circular applies to all businesses currently operating under Circular 200, large, multi-sector businesses will be most strongly impacted, followed by foreign-invested enterprises (FDI).
To avoid risks due to policy updates and system errors, according to Ms. Duong, the first thing businesses need to do is review and update their internal regulations. If a business arbitrarily opens additional accounts or modifies document templates without issuing corresponding new accounting compliance Vietnam foreign companies, the resulting transactions may be rejected by the tax authorities due to insufficient legal basis.
In addition, businesses need to upgrade their information technology systems, especially accounting software, to update the new account list and convert balances from the accounting system under Circular 200 to Circular 99 by January 1, 2026.
Vietnam Accounting Standards (VAS) For Foreign Companies
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Another important aspect is retraining the accounting staff to focus on the nature of transactions. Ms. Duong emphasized that Circular 99 is closer to International Financial Reporting Standards (IFRS), requiring accountants not only to memorize account numbers but also to understand the economic nature of transactions, such as valuing assets at fair value or making provisions for losses on biological assets. These aspects require a higher level of expertise than before.
At the same time, businesses need to review the compatibility between accounting regulation changes Vietnam impact and tax. Although the accounting regime under Circular 99 is more flexible, businesses must still fulfill their tax obligations according to the Tax Law. Clearly identifying the differences between accounting profit and taxable income arising from the application of the new principles is necessary to avoid the risk of being subject to retroactive corporate income tax collection.
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