Accounting setup for companies entering Vietnam

• Limited liability company (LLC): the standard vehicle for trading, services and manufacturing. Full CIT, VAT and audit obligations, and it can invoice locally.
• Representative office: may only conduct market research and liaison work. It cannot generate revenue, so there is no CIT or VAT, but payroll, PIT and expense reporting still apply.
• Branch: permitted in limited sectors such as banking and some services. It can trade, and its results are attributed to the foreign parent.
• Joint stock company: suited to multiple investors or a future capital raise, with heavier governance requirements.

• The tax code is issued with the enterprise registration certificate and serves as your tax identification number.
• Register the entity with the local tax department covering your registered address.
• Declare and pay the annual business licence fee after establishment.
• Register an authorised legal representative and, in most cases, a chief accountant.
• Activate e-tax filing and a digital signature token before the first return is due.

• VAT registration is part of tax registration; there is no separate threshold-based application for a licensed enterprise.
• Register your e-invoice provider and invoice template with the tax authority before issuing the first invoice.
• Confirm whether you file monthly or quarterly based on prior-year revenue; new entities normally start quarterly.
• Declare the credit method for VAT so input tax on setup costs is recoverable.

• Use the uniform chart of accounts prescribed by the Ministry of Finance.
• Keep account names in Vietnamese, or bilingual for head-office readability.
• Set the reporting currency to Vietnamese dong unless a functional currency election applies.
• Map VAS accounts to your group reporting structure at setup, not at year end.
• Confirm the financial year; the calendar year is standard, and alternatives require approval.

• MISA and Fast Accounting: widely used Vietnamese packages aligned to VAS out of the box.
• Bravo: a common choice for larger local operations.
• Xero or QuickBooks: used for group reporting, but must be paired with a compliant VAS ledger.
• SAP or Oracle: viable for larger groups with a VAS localisation layer.
• Whatever the platform, e-invoicing must be issued through a licensed Vietnamese provider.

• A direct investment capital account is required to receive charter capital from abroad.
• A separate current account handles day-to-day operating transactions.
• Expect to provide the investment registration certificate, enterprise registration certificate, charter and legal representative identification, notarised and legalised where needed.
• Charter capital must be contributed within 90 days of the enterprise registration certificate.
• Payments above the cash threshold must go through the bank to stay deductible.

• Register e-tax filing, a digital signature and an e-invoice template.
• Declare and pay the business licence fee.
• Appoint a chief accountant or an outsourced equivalent.
• Open the statutory ledger under VAS and register the accounting policy with the tax authority.
• Set up payroll, social insurance and personal income tax withholding.
• File VAT and PIT returns on the applicable monthly or quarterly cycle.
• Make quarterly CIT prepayments.
• Appoint a licensed audit firm by the fourth quarter.
• File audited financial statements and the CIT finalisation within 90 days of year end.

• Trading before e-invoicing is registered, leaving revenue undocumented.
• Running only group books, then reconstructing a VAS ledger under audit pressure.
• Contributing charter capital late or through the wrong bank account.
• Forgetting foreign contractor tax on head-office charges and overseas services.
• Paying cash for deductible expenses above the threshold.
• Treating the audit as optional because the entity is small or dormant.

Bringing in a local accounting partner at market entry means the chart of accounts, e-invoicing, payroll and filing calendar are correct from the first transaction — instead of being rebuilt during your first audit.