Vietnam Plans to Scrap Accounting Service Licenses as Lawmakers Seek Clear Suspension Rules

Vietnam’s National Assembly discussed amendments to the Accounting Law and Independent Audit Law on the morning of November 13. Lawmakers broadly supported simplifying administrative procedures, scrapping accounting service business licenses and shifting oversight toward subsequent inspections. They also called for clear rules on suspending providers’ operations to protect the continuity of clients’ business.

Vietnam’s National Assembly discusses the impact of accounting service suspensions on clients.（VietVance）

Trần Mạnh Huy, a lawmaker from the Da Nang delegation, said the amendments should make clear that submitting information through the system serves only administrative purposes and must not become a pre-approval step for starting operations. System failures or delays in an authority’s receipt of information should not prevent those who meet the requirements from operating. He suggested reusing data already held in business registration and tax systems, setting a maximum suspension period in law, and distinguishing correctable errors from fraud.

Trần Mạnh Huy of the Da Nang delegation speaks during the discussion.（VietVance）

The draft leaves some suspension periods for the Ministry of Finance to set, while a related draft circular proposes suspensions of up to 24 months in certain cases. Trần Mạnh Huy said a lengthy suspension could threaten a provider’s survival and disrupt clients’ financial reporting and tax obligations. Dương Khắc Mai, a lawmaker from the Lam Dong delegation, proposed that suspension decisions specify the violation, legal basis, scope and duration, and protect the affected party’s right to respond. Providers should also promptly notify clients and properly hand over records, data and work in progress.

Vũ Hồng Quân, a lawmaker from the Gia Lai delegation, said easing entry requirements could give small businesses and household businesses more choice, but minimum requirements were still needed for providers to check documents, flag discrepancies, record how issues were handled and hand over data. He suggested using existing tax authority data to select inspection targets based on risk and avoid duplicate inspections.

Vũ Hồng Quân of the Gia Lai delegation speaks during the discussion.（VietVance）

Finance Minister Ngô Văn Tuấn said Vietnam has about 1.08 million operating businesses, of which about 12,500 use accounting or auditing services. About 2,500 accountants hold practice certificates, but only just over 500 actually provide accounting services. There are 129 accounting service firms and 118 audit firms that also provide accounting services. The drafting agency will continue reviewing practitioners’ rights and obligations, service conditions and rules to prevent conflicts of interest.

Source: VietVance