Vietnam’s regulation on public sector accounts

1. Accounts give a regular, continuous, and systematized reflection of assets, receipt and use of funds financed by state budget and other fund sources; revenues and expenditures on activities, performance, and other sources at public sector entities.

2. Classification of accounts:

- Accounts on balance sheet including type 1 to type 9 and to be double recorded (double-entry bookkeeping).

- Accounts off balance sheet including type 0 and to be single recorded (non double-entry bookkeeping). Accounts off balance sheet relating to state budget or derived from state budget (account 004, 006, 008, 009, 012, 013, 014, 018) must be included in state budget entries by years (previous year, this year, following year (if any)) and at other needs of state budget.

- If an economic event occurs relating to receipt and use of fund financed by state budget; foreign aid or loans; fund of which a given amount is deducted or withheld, the accountant shall do accounting for both on and off balance sheet accounts according to state budget entries and appropriate years.

3. Selection of account system:

- Public sector entities shall, according to the account system issued herewith, select certain accounts for them.

- The entity may add more accounts in any of the following cases:

+ Add extra detailed accounts prescribed in the list of account systems in Appendix 02 hereof shall be added to serve the entity’s needs.

- Extra accounts of the same level with those prescribed in the list of account systems in Appendix 02 hereof shall be added with the Ministry of Finance’s consent in writing.

4. The list of account systems, documents explaining contents, structure and methods of recording of accounts are specified in Appendix 02 of Circular No. 107/2017/TT-BTC.

Circular No. 107/2017/TT-BTC of the Ministry of Finance of Vietnam takes effect from November 24, 2017.

- Nguyen Trinh -

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