Vietnam: Government's accounting account for foreign loans and repayments

Circular 74 stipulates the system of accounting account combinations in the accounting of loans and debt repayment of the Government of Vietnam, consisting of 5 independent segments that serve the detailed accounting of arising transactions according to the requirements of public debt management and laws on borrowing and debt repayment.

The name and number of characters in each segment of the accounting account combination system are defined as follows:

Circular 74 discusses the accounting account combination system built on the principle of arranging independent code segments, each containing different information according to management requirements. The list of detailed values for each code segment is supplemented and modified as necessary according to practical requirements.

The accounting account combination system and the combination of code segments are designed and structured to meet management requirements, ensuring the following criteria:

- Compliance with the Law on State Budget, the Law on Accounting, and the Law on Public Debt Management;

- Fully reflecting the professional activities related to borrowing and debt repayment;

- Facilitating the application of software; the collection, processing, exploitation, and provision of information using information technology programs and applications developed in the unit.

In addition, Circular 74 also regulates the accounting account code as follows:

- The account is a form of classifying loan and debt repayment objects by term and loan purpose, serving data organization, thereby extracting reports based on different criteria.- The accounting account code has 5 characters, established based on the criteria and information reporting requirements about public debt in accordance with the law.

More details can be found in Circular 74/2018/TT-BTC of the Ministry of Finance of Vietnam, effective from January 1, 2019.

-Thao Uyen-

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