A study of the development of accounting in Vietnam
Creators: name: Bui, Thanh
Publisher: name: RMIT University
Year: 2024

description: This is an historical study on the development of accounting in Vietnam, by examining the role of the state in the evolving professionalization of the accounting profession in the colonial and post-colonial periods. The Vietnamese accounting profession has been defined by the state, given that the development has been led by the state and subject to state regulations. Puxty et al. (1987) work which recognizes the State, Market and Community principles has provided the theoretical framework, to help understand the factors underpinning the development of the accounting profession in Vietnam.<br><br>Three following research questions addressed in this study include:<br><br>1.How have external factors, such as the influence of the French, the United States, China and the Soviet Union, contributed to the development of the accounting profession in Vietnam?<br><br>2. How has the internal environment in Vietnam, including the impact of political and economic policies, contributed to the development of the accounting profession in Vietnam?<br><br>3. What is the predominant model of the accounting profession adopted in Vietnam in 2010?<br><br>The main findings from the research suggest that despite French rule for more than eighty years, the development of the accounting profession in Vietnam in the colonial and post-colonial periods was not initiated nor influenced by the French, or the Americans. This is a distinctive difference in the development of the accounting profession between Vietnam, as an ex-French colony, compared to that which occurred in most ex-British colonies.<br><br>It is argued in this study that the Vietnamese Communist Party (VCP)/State has played a dominant role in the development of accounting in the country in the post-colonial periods, by regulating accounting practice. The case of Vietnam, therefore, differs to that in most other Southeast Asian countries, due to the direct involvement of the VCP, through accounting regulations. The Vietnamese experience suggests that the state, led by the VCP, has followed its own path as a socialist country, by directing and playing an influential role in the development and accounting practice as well as the training of the accounting profession, in order to facilitate achievement of the state’s political and economic policies. This was achieved in spite of Vietnam’s colonial heritage, unlike the path followed in many other former colonies.<br><br>By legislation, the State, through the MoF, maintains its monopoly in the accounting and auditing certification, practice and the regulatory process. The implementation of the Vietnamese CPA exams and the existence of the professional code of ethics support the existence of an accounting profession in Vietnam. In addition, the membership of the VAA to IFAC and the AFA in 1998 and of the VACPA to CAPA in 2010, is another important and significant event in the development and professionalization of accounting in Vietnam. These developments are indicative of the recognition of the existence of the accounting profession in Vietnam, and the VACPA as a professional accounting body in the Asia-Pacific region.<br>