Vietnam Government Clarifies Penalties For Accounting Administration Failures

The Vietnamese government recently issued official notes to clarify administration penalties. Companies and entities operating in the country should be aware of the penalties, and work with a local partner to help ensure compliance.

Decree No. 41/2018/ND-CP, dated 12 March 2018 and replacing Decree No. 105/2013/ND-CP, regulates administration penalties given for accounting issues and fraud. It sets a maximum penalty of VND100 million for organisations and takes effect on 1 May 2018.

Vietnam sets strict requirements for the format of the accounting vouchers, books, charts of accounts, financial statements and company governance, and this decree shows even a minor transgression could result in significant financial penalties, as detailed below.