Accounting service business conditions to be eased, service providers expanded

Accounting service business conditions to be eased, service providers expanded

Lawmakers agreed that the amendments were needed to strengthen the legal framework, improve financial reporting quality and enhance State management of accounting and auditing activities.

The 16th National Assembly discussed amendments to the Law on Accounting and the Law on Independent Auditing. — VNA/VNS Photo

The 16th National Assembly discussed amendments to the Law on Accounting and the Law on Independent Auditing on November 13, with lawmakers supporting moves to ease business conditions, expand the pool of accounting service providers and improve financial transparency.

Lawmakers agreed that the amendments were needed to strengthen the legal framework, improve financial reporting quality and enhance State management of accounting and auditing activities.

Thái Thị An Chung, a deputy from Nghệ An Province, called for consistency between the draft amendments and the Law on Investment, particularly regarding business condition reforms.

She noted that accounting services had been removed from the list of conditional business lines under amendments to the Law on Investment, shifting the focus from controlling market entry to overseeing service quality.

However, the draft amendments require individuals signing financial statements for clients and those providing chief accountant services to hold a certificate of competence in the field.

Chung said the legal nature and scope of the certificate should be clearly defined to avoid effectively reinstating abolished business conditions through another mechanism. Requirements directly affecting the right to practise and the legal responsibilities of service providers should be clearly stipulated in the law.

She also called for clearer rules governing cross-border accounting services. Under the draft, foreign individuals and organisations providing accounting services to Vietnamese clients without a commercial presence in the country must partner with domestic service providers.

While supporting regulation to ensure legal compliance, professional accountability and data security, she said the law should distinguish cross-border services from internal accounting operations within multinational corporations and technical support activities.

Given the growing use of overseas shared-service centres and centralised accounting systems, she urged lawmakers to clarify the scope of regulation, assess whether mandatory partnerships were necessary in all cases and ensure consistency with Việt Nam's international commitments.

Safeguarding service quality

Vũ Hồng Quân, a deputy from Gia Lai Province, supported the removal of business conditions and expansion of service providers. Quân said the changes would give businesses more choices and reduce costs, particularly for household businesses and micro- and small-sized enterprises.

However, he noted that accounting errors could accumulate and affect production costs, business performance and tax obligations if not detected early.

Many clients lack sufficient accounting and financial knowledge to assess service quality. The draft law should thus establish safeguards to ensure that expanding access to services also supports sound and sustainable business development, he said.

Quân proposed clarifying minimum professional requirements, including checking documents, notifying clients of discrepancies, maintaining records of adjustments and ensuring proper handover of accounting data.

Service contracts should clearly specify the scope of work, professional responsibilities and obligations of both parties. Providers should explain key financial figures, discrepancies and outstanding issues, while clients must supply accurate information.

He also called for clearer provisions protecting service providers' professional independence, including the right to refuse or terminate contracts when clients request unlawful actions.

In response to lawmakers, Minister of Finance Ngô Văn Tuấn said the primary objective of accounting and auditing is to provide truthful and reliable financial information and build trust among users of financial statements.

Demand for accounting and auditing services is rising as businesses expand and policies encourage household businesses to convert into enterprises, increasing the need for outsourced services.

The amendments aim to cut business conditions, streamline administrative procedures and enable more qualified accounting professionals to enter the market, he said.

The ministry will review lawmakers' recommendations to clarify the rights and obligations of accounting professionals and service providers, as well as eligibility requirements, prohibited practices and conflicts of interest.

Improving corporate governance is an urgent priority, with accounting and independent auditing playing an important role in ensuring transparency and compliance with Vietnamese law and international practices, the finance minister said.

On the same morning, the National Assembly also discussed tax arrangements for power build-operate-transfer project enterprises covered by Government guarantees and commitments on taxation. 

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