Rules for using chart of accounts for public sector accounting in Vietnam as of January 1, 2025

Rules for using chart of accounts for public sector accounting in Vietnam as of January 1, 2025 (Internet image)

Regarding this matter, LawNet would like to answer as follows: 

On April 17, 2024, the Minister of Finance issued Circular 24/2024/TT-BTC on providing guidelines for public sector accounting in Vietnam.

Rules for using chart of accounts for public sector accounting in Vietnam as of January 1, 2025

Specifically, Clause 2, Article 5, Circular 24/2024/TT-BTC stipulates the classification and rules for using chart of accounts for public sector accounting in Vietnam as follows:

- Accounts on the balance sheet include accounts of type 1 to 9, and are recorded applying double-entry bookkeeping (i.e. every entry shall be recorded in both sides of an account). These accounts are used for reflecting assets, funding sources, revenues, and expenses and determining business performance of a unit during the accounting period, which are used as the basis for making financial statements.

- OBS accounts are accounts of type 0, and are recorded applying single-entry bookkeeping (i.e. every entry shall only be recorded in one side of an account).  OBS accounts 005, 006, 007, 008, 009, 010, 011, 012, 013 are used for reflecting the receipt and use of funding of which the amounts used must be recorded in detail at the end of year according to list of state budget entries as the basis for making final statements. To be specific:

+ OBS accounts used for statement of state budget-derived funding (accounts 005, 006, 007, 008, 009, 010, 011) shall be recorded in detail according to the list of state budget entries and budget year, and in a manner meeting other management requirements for statement of state budget-derived funding set out in regulations of law on state budget.

+ OBS accounts used for statement of funding derived from deducted/retained amounts of collected fees, and revenues earned during operation of which the amounts used must be recorded and reported according to the list of state budget entries (accounts 012, 013) shall be recorded in detail according to the list of state budget entries and in a manner meeting other management requirements for statement of these funding sources.

- If an economic/financial transaction involves the receipt and use of domestic funding derived from state budget, or funding derived from deducted/retained amounts of collected fees, and revenues earned during operation of which the amounts used must be recorded and reported according to the list of state budget entries, it shall be recorded on both on-balance and OBS accounts and in detail according to the list of state budget entries and appropriate budget year.

- If an economic/financial transaction involves the receipt and use of foreign aid amounts or foreign loans for implementing projects, it shall be recorded as state budget revenue or expense in accordance with regulations of law in force. After it is recorded as state budget revenue or expense, it must be also recorded on OBS accounts for making final statements as prescribed in Circular 24/2024/TT-BTC.

More details can be found in Circular 24/2024/TT-BTC which comes into force from January 1, 2025.

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