Focus on accounting reforms in Vietnam

Professor Brendan O’Connell, Deputy Head of Industry Engagement in the School of Accounting, spoke to about 200 business leaders and corporate governance professionals in Ho Chi Minh City as part of a seminar series by the KMPG-RMIT Centre of Governance.

Professor O’Connell shared the importance of reforms in accounting, governance and regulatory standards using the International Financial Reporting Standards (IFRS).

He said the accounting profession in Vietnam had come a long way in a relatively short time but many barriers still existed toward full implementation of IFRS.

“There’s a need for urgent reforms in terms of training of accountants and regulators in IFRS, greater impetus from the government and moves to improve the reliability of asset prices,” he said.

KPMG in Vietnam’s Head of Advisory, John Ditty, highlighted the importance of the standards in corporate governance.

“Adequate and effective corporate governance is critical in supporting boards and management to navigate through changing market conditions,” Mr Ditty said.

“While the scores suggest that Vietnam has performed relatively well in some of the key areas of director independence, roles of the board and shareholder rights, there are still areas including board diversity, risk governance and assurance we could look to improve.”

The seminar attracted business leaders from corporations such as Vinamilk and Ho Chi Minh City Stock Exchange.

Industry experts shared practical advice and experience of working towards improving corporate governance development in Vietnam, balancing between corporate governance rules and flexibly putting them into practice.

The topic was also presented at a seminar for business leaders in Hanoi.