Circular 99 - VAS

Enterprises must now establish clear internal governance mechanisms. Defining responsibilities and approval authority for all accounting transactions. Ensuring accounting processes comply with both enterprise law and accounting regulations. Maintaining documentation to support accountability and traceability of financial activities. 

The intent is to create a stronger control environment where data accuracy and transparency are protected by design, not just by audit. 

While Vietnamese Dong (VND) remains the default accounting currency, Circular 99 allows enterprises to use a foreign currency as their accounting currency under specific conditions. 

An enterprise may adopt a foreign currency if that currency is: 

• Used primarily for pricing goods and services; 

• Used for paying major costs such as raw materials or capital expenses; 

• The currency in which the enterprise raises and settles most financing activities. 

When a foreign currency is used: 

• The enterprise must clearly disclose the chosen currency and conversion method. 

• All regulatory financial statements must still be translated into VND for submission to authorities. 

• Any change in accounting currency must be justified by a significant business shift and converted using the average transaction exchange rate of the main bank on the date of change. 

Circular 99 introduces a more flexible chart of accounts. Enterprises can now adjust account codes, rename accounts, or add sub-accounts to reflect their business model as long as the structure still supports required financial statement indicators. 

Notable updates include: 

• The addition of Account 215 – Biological Assets, separating these from tangible fixed assets. 

• The simplification or consolidation of several older accounts to reduce duplication and improve clarity. 

This flexibility allows modern accounting software to be configured more efficiently, accommodating industry-specific needs without violating compliance rules. 

Enterprises are now granted more autonomy to design their own voucher and bookkeeping templates. Circular 99 reduces the number of standardized book templates from 45 to 42, reflecting a focus on digital record-keeping and automation rather than manual forms. 

However, all documentation must still meet the basic requirements for authenticity, traceability, and completeness as prescribed by the Law on Accounting.

Terminology and format have been updated to better reflect global accounting practices. 

• “Balance Sheet” is now referred to as the “Statement of Financial Position.” 

• Enterprises are required to prepare annual financial statements. Interim (quarterly or half-year) reports are optional unless otherwise required by law. 

• Consolidation requirements are clarified: head offices must combine financial data from all branches and subsidiaries, eliminating internal transactions to present a unified picture of the enterprise’s financial position. 

Circular 99 emphasizes centralized accounting under the head office. Branches are no longer required to prepare independent financial statements unless mandated by separate regulations. All internal transactions between units must be identified and eliminated during consolidation to ensure accuracy and prevent duplication of income or expenses.