Foreign Firms Allowed to Pick Accounting Currency Unit

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Jan. 26 – Vietnam’s Ministry of Finance is now allowing foreign firms in the country to choose the currency unit they want to use for accounting purposes.

Previously, accounting records were required to be maintained in Vietnamese dong. Foreign companies wanting to use another currency for their financial records needed to submit an application form to the ministry.

The chosen accounting currency unit must be mainly used for a foreign company’s banking transactions, services and selling prices quotations.
It is also allowed to use the same foreign currency as the currency unit to account for revenue, employee salary and payment of material costs.

Authorities have been working towards strengthening its corporate accounting system. Foreign direct investment to Vietnam in 2009 was hit by the global downturn sliding by 70 percent from the previous year earlier US$21.48 billion.