Vietnam finance ministry to slash half of business conditions

18-Aug-2018 Intellasia | Hanoi Times | 6:14 AM Print This Post

The decision is unprecedented not only to the Ministry of Finance, but also to other ministries and government agencies.

As per the government’s request, the Vietnamese Ministry of Finance (MoF) has proposed removing 51.4 percent business and investment conditions under the ministry’s administration and revising 16 decrees from various fields, local media reported.

With regard to accounting, the MoF is expected to remove three conditions for provision of transboundary accounting services stipulated in Article 30 under Decree No. 176, elaborating of some articles of the Law on Accounting.

This includes “allowed to provide accounting services as prescribed by law of the nation where its headquarters are situated (home country)”, “purchase professional liability insurance for its accounting practitioners who work in Vietnam”, and “does not incur administrative penalties for violations against regulations on provision of transboundary accounting services in Vietnam over the last 12 months”.

In terms of the Law on Independent Audit, the second paragraph of Article 6 under Decree No.17 will be removed, for which the representative of member being an audit organisation is no longer required to be an auditor.

On the eligibility required for practicing auditors and auditing firms accredited to provide audit services for public interest entities, the MoF decided to shorten the time period from the minimum of 36 to 24 months required for auditing firm operating in Vietnam, removing conditions of auditing firm must audit at least 20 public interest entities per year.

Moreover, a quality control system and professional liability insurance are no longer required for accrediting auditing firms, which will be checked in post-review.

According to requirements on insurance business, the MoF removes conditions for insurance businesses, foreign branches, insurance brokerage businesses and insurance agents, such as to have corporate charter, or organisation and operation regulation that must comply with the Decree on insurance business and relevant regulations.

On conditions for establishment of Vietnamese insurance businesses, they are no longer required to be an enterprise operating in the field of finance, banking or insurance, aiming to allow enterprises in different background to establish insurance business.

Additionally, the MoF also removes experience conditions for insurance agents.

For securities investment and trading conditions, the MoF reduces the minimum charter capital required for securities traders from VND100 billion (Us$4.3 million) to VND50 billion (US$2.15 million); CEO from having at least three years’ experiences in services departments in the field of finance, banking and/or securities in finance, accounting and/or investment department of other enterprises and having at least three years’ experience in administration to two years.


Category: Finance, Vietnam

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