Does a foreign-invested company have to audit its financial statements?

by HaTrang

Auditing financial statements in order to evaluate the truthfulness and reasonableness of financial statements in accordance with accounting standards and accounting regimes promulgated by competent agencies and organizations; increase users’ confidence in financial statements. Does a foreign-invested company have to audit its financial statements? Let’s find out with LSX Lawfirm.

Legal grounds

Law on Independent Audit 

Decree No. 17/2012/ND-CP

Does a foreign-invested company have to audit its financial statements?

Clause 1, Article 15 of Decree No. 17/2012/ND-CP guiding the Law on Independent Audit has regulations on enterprises and organizations; whose annual financial statements are required by law to be audited; paid for by enterprises. Branches of foreign auditing firms in Vietnam audit, including:

Audited units Enterprises and organizations whose annual financial statements are required by law to be audited by auditing firms; or branches of foreign auditing firms in Vietnam, include:

  • Firstly, foreign-invested enterprises;
  • Secondly, credit institutions established and operating under the Law on Credit Institutions, including foreign bank branches in Vietnam;
  • Thirdly, financial institutions, insurance enterprises, reinsurance enterprises, insurance brokerage enterprises, branches of foreign non-life insurance enterprises.
  • Lastly, public companies, issuers and securities trading organizations.”

Therefore, foreign-invested enterprises have to have their annual financial statements audited.

Time limit for making audit report?

For enterprises that are required by law to have their financial statements audited; they need audit their financial statements before submitting financial statements as prescribed. The financial statements of the enterprises must attach the audit report to the financial statements; when submitting them to the State management agencies and superior enterprises.

Besides, the annual financial statements of the accounting unit need to submitt to the competent state management agency within 90 days from the end of the annual accounting period as prescribed by law.

Who to contact to audit financial statements?

Foreign-invested enterprises should contact auditing firms and branches of foreign auditing firms in Vietnam to get certificates of eligibility for audit service business.

Besides, the Ministry of Finance publishes the list of practicing auditors and auditing firms on the system

Contact LSX Law firm

Finally, hope this article Does a foreign-invested company have to audit its financial statements is useful for you.

If you have any questions please contact Lawyer X for quick and best legal services: +84846175333 or email:

Related questions

What are the rights and obligations of foreigners working in foreign-invested projects?

Foreigners working in foreign-invested projects are entitled to the customs regime; immigration, residence and travel in the Vietnamese territory, the right to information and communication accordingly the provisions of Vietnamese law: remittance abroad salary and other lawful income. At the same time, these people working must respect Vietnamese law; fulfill their obligations as committed to investors; and pay income tax under the law on an income of Vietnam. 

Rights of foreign investors?

Firstly, be assured of capital and assets under their ownership;
Secondly, to transfer profits, principal, and interests of foreign loans, investment capital, money, and other assets under their lawful ownership to their home country; or another country;
Thirdly, to reach an agreement with the business cooperation party; the Vietnamese joint-venture party on choosing the form of arbitration; or court to settle disputes arising in the investment process;
Besides, enjoy the customs regime, entry, residence, and travel in Vietnam; accordingly the provisions of the competent state agencies of Vietnam

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