Is it mandatory to appoint a chief accountant in an agricultural enterprise with less than 10 employees in Vietnam?
- Is it mandatory to appoint a chief accountant in an agricultural enterprise with less than 10 employees in Vietnam?
- Is the chief accountant in an enterprise that is not funded by the state budget and whose charter capital is smaller than 10 billion dongs in Vietnam required to have a university degree?
- Can an enterprise in Vietnam hire an accounting service provider to act as a chief accountant?
Is it mandatory to appoint a chief accountant in an agricultural enterprise with less than 10 employees in Vietnam?
Under the provisions of Article 20 of Decree 174/2016/ND-CP, there are regulations on chief accountants and acting chief accountants as follows:
Chief accountants and acting chief accountant
1. An accounting unit must have a chief accountant, except for those specified in Clause 2 of this Article. In the cases where a unit is not able to appoint a chief accountant at the time, it may appoint an acting chief accountant or outsource chief accountant works. An acting chief accountant will hold the position for up to 12 months, after which a chief accountant shall be appointed.
2. Acting chief accountant:
a) An accounting unit that has only one accountant or part-time accountant, budget accounting and finance units of communes shall appoint only acting chief accountants, not chief accountants.
b) Micro-enterprises defined by the law on provision of assistance for small and medium enterprises may appoint acting chief accountants without having to appoint chief accountants.
…
Thus, enterprises are required to appoint a chief accountant, except for micro-enterprises.
According to the provisions of Clause 1, Article 5 of Decree 80/2021/ND-CP on the criteria for identifying small and medium-sized enterprises:
Criteria for identification of SMEs
1. Any micro-enterprise in the field of agriculture, forestry, aquaculture; industry and construction that has an average annual number of employees who participate in social insurance not exceeding 10 people, total revenue in the year not exceeding 3 billion VND or total capital of the year not exceeding 3 billion VND.
Any micro-enterprise in the field of commerce and services that that has an average annual number of employees who participate in social insurance not exceeding 10 people, total revenue in the year not exceeding 10 billion VND or total capital of the year not exceeding 3 billion VND.
...
According to the above regulations, micro-enterprises are defined as follows:
- Have no more than 10 employees participating in social insurance, the total revenue in the year not exceeding 3 billion VND or total capital of the year not exceeding 3 billion VND: For any micro-enterprise in the field of agriculture, forestry, aquaculture; industry and construction.
- Have no more than 10 employees participating in social insurance, the total revenue in the year not exceeding 10 billion VND or total capital of the year not exceeding 3 billion VND: for any micro-enterprise in the field of commerce and services.
Thus, agricultural enterprises exporting Vietnamese agricultural products with less than 10 employees participating in social insurance and the total revenue in the year not exceeding 3 billion VND or total capital of the year not exceeding 3 billion VND are not required to appoint a chief accountant.
However, if the enterprise does not meet the above criteria to be identified as a micro-enterprise, it is mandatory to appoint a chief accountant under the law.
Is the chief accountant in an enterprise that is not funded by the state budget and whose charter capital is smaller than 10 billion dongs in Vietnam required to have a university degree?
In Clause 3, Article 21 of Decree 174/2016/ND-CP on standards and requirements to be satisfied by chief accountants and acting chief accountant:
Standards and requirements to be satisfied by chief accountants and acting chief accountant
...
3. The chief accountants and acting chief accountants of the following accounting units must have at least a professional intermediate certificate in accounting:
a) Professional agencies affiliated to the People’s Committee of the province if they have their own accounting apparatus (except for those mentioned in Clause 2h of this Article);
b) Vertically organized central authorities in district authorities; provincial authorities in district authorities;
c) political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations of districts funded by state budget;
d) Management boards of projects having their own accounting apparatus are funded by state budget, except for those in Clause 2g of this Article;
dd) Budget accounting and finance unit of communes;
e) Public service agencies other than those specified in Clause 2c of this Article;
g) Enterprises established and operating within Vietnam’s law that are not funded by the state budget and whose charter capital is smaller than 10 billion dongs;
h) Cooperatives, cooperative associations whose charter capital is smaller than 10 billion dongs.
...
Under this regulation, not all chief accountants must also have a university degree. Only a professional intermediate certificate in accounting is required when working as chief accountant at accounting units as prescribed above.
Thus, chief accountants working in enterprises established and operating within Vietnam’s law that are not funded by the state budget and whose charter capital is smaller than 10 billion dongs are only required to have professional intermediate certificates in accounting.
Can an enterprise in Vietnam hire an accounting service provider to act as a chief accountant?
Under Article 22 of Decree 174/2016/ND-CP, sole proprietorships may hire accounting service providers to do their accounting works or chief accountant’s works.
The person hired to provide accounting services has the rights and responsibilities of the chief accountant specified in Article 55 of the Accounting Law.
The legal representative of the accounting unit is responsible for his/her decision outsourcing the chief accountant’s works.
LawNet