Ministry of Finance officially launches development of 42 Vietnamese Financial Reporting Standards (VFRS):
Rolling issuance in 2026–2029, mandatory application expected from 01 January 2031
On 13 October 2026, the Department of Accounting and Auditing Management and Supervision under the Ministry of Finance (MOF) held a conference to launch the development of the Vietnamese Financial Reporting Standards (VFRS). At the conference, the MOF announced the roadmap for drafting 42 VFRS based on the 2026 edition of IFRS. The full set of standards is expected to apply mandatorily and uniformly nationwide from 01 January 2031. Enterprises outside the scope of IFRS application will move from VAS to VFRS.
1. Two directions for reforming financial reporting standards
Application of full IFRS
- 2026: The MOF has issued a regulation allowing enterprises in the International Financial Centre (IFC) to apply full IFRS. The eligible entities are set out in Article 2 of Circular No. 118/2026/TT-BTC dated 18 August 2026. The Circular takes effect from 01 January 2027.
- Towards 2027: The MOF plans to extend full IFRS application to eligible enterprises. This group covers large listed public companies, banks and financial institutions, large state-owned and private economic groups, and FDI enterprises. This is a policy direction only; no specific regulation has been issued yet.
Development of VFRS for all other enterprises
- The current VAS framework will be converted and upgraded to VFRS through progressive convergence, aligning as closely as possible with IFRS.
2. Principles for developing VFRS
According to Director General Dang Quyet Tien, VFRS must achieve two objectives:
- Promote growth and integration. Financial statements of Vietnamese enterprises should be recognised in international markets.
- Ensure long-term sustainability. The standards should not need adjusting or rebuilding only 5–10 years after issuance.
The approach distinguishes three cases:
- Where international content is already appropriate, it will be adopted.
- Where Vietnamese specifics work better, they will be progressively incorporated.
- Where Vietnamese practice is not yet ready, a gradual adaptation roadmap will be designed.
3. VFRS Drafting Team
The MOF has issued a Decision establishing the VFRS Drafting Team. The Team is led by Director General Dang Quyet Tien and has 216 members. Members include MOF officials and experts from audit firms, enterprises, training institutions, universities and professional associations.
4. Roadmap for drafting the 42 standards
The guiding principle of the roadmap is "launch all at once, issue on a rolling basis." Accounting standards are interlinked and cross-reference one another, so all 42 standards will be researched at the same time. Issuance is divided into three phases:
| Phase | Period | Number of standards to be drafted and issued |
| 1 | 2026 – 2027 | 10 |
| 2 | 2027 – 2028 | 21 |
| 3 | 2028 – 2029 | 11 |
| Total | 42 |
Standards that are simple, short, close to Vietnamese practice or disclosure-oriented will be issued first. More complex standards, which require policy issues to be resolved, will be issued in later phases.
Expected list by phase (as presented at the conference):
Phase 1 (2026 – 2027)
| No. | VFRS | Equivalent IFRS |
| 1 | Operating Segments | IFRS 8 – Operating Segments |
| 2 | Disclosure of Interests in Other Entities | IFRS 12 – Disclosure of Interests in Other Entities |
| 3 | Subsidiaries without Public Accountability: Disclosures | IFRS 19 – Subsidiaries without Public Accountability: Disclosures |
| 4 | Statement of Cash Flows | IAS 7 – Statement of Cash Flows |
| 5 | Basis of Preparation of Financial Statements (formerly: Accounting Policies, Changes in Accounting Estimates and Errors) | IAS 8 – Basis of Preparation of Financial Statements |
| 6 | Events after the Reporting Period | IAS 10 – Events After the Reporting Period |
| 7 | Related Party Disclosures | IAS 24 – Related Party Disclosures |
| 8 | Earnings per Share | IAS 33 – Earnings per Share |
| 9 | Interim Financial Reporting | IAS 34 – Interim Financial Reporting |
| 10 | General Requirements for Disclosure of Sustainability-related Information | IFRS S1 – General Requirements for Disclosure of Sustainability-related Financial Information |
| 11 | Climate-related Disclosures | IFRS S2 – Climate-related Disclosures |
Note: The list presented shows 11 items for 2026–2027, including IFRS S1 and IFRS S2. This differs from the 10 standards announced for Phase 1. The official list will be confirmed when the MOF issues the relevant Decision.
Phase 2 (2027 – 2028) – standards presented
| No. | VFRS | Equivalent IFRS |
| 12 | Conceptual Framework for Financial Reporting | Conceptual Framework for Financial Reporting |
| 13 | Business Combinations | IFRS 3 – Business Combinations |
| 14 | Non-current Assets Held for Sale and Discontinued Operations | IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations |
| 15 | Exploration for and Evaluation of Mineral Resources | IFRS 6 – Exploration for and Evaluation of Mineral Resources |
| 16 | Consolidated Financial Statements | IFRS 10 – Consolidated Financial Statements |
| 17 | Joint Arrangements | IFRS 11 – Joint Arrangements |
| 18 | Revenue from Contracts with Customers | IFRS 15 – Revenue from Contracts with Customers |
The remaining Phase 2 standards and the full Phase 3 list have not yet been disclosed in detail.
5. Six-step process for each standard
- Prepare a policy summary report
- Draft the standard
- Hold peer reviews and consultation workshops
- Conduct technical appraisal
- Submit the VFRS for issuance by Decision
- Issue the Circular and guidance materials
6. Form of issuance and effective date
- By batch (2026–2029): Each batch of standards will be issued by Decision of the Minister of Finance. The purpose is to publish the standards early, so that enterprises, the public and training institutions have time to study them and prepare personnel.
- After all 42 standards are completed (expected in 2029): The MOF will issue a Circular making the standards mandatory and uniform nationwide. Application is expected from 01 January 2031.
- This approach avoids financial statements being prepared partly under VAS and partly under VFRS, which would reduce comparability and transparency.
💡 Recommendations for enterprises
- Monitor each Decision publishing VFRS. These Decisions are not yet mandatory, but they provide a basis for early preparation. Phase 1 focuses on presentation and disclosure standards, including sustainability-related and climate-related disclosures.
- Assess the gap between VAS and IFRS now. VFRS is built on IFRS 2026, so most of this assessment can be reused for the transition to VFRS.
- Plan for personnel, systems and accounting software ahead of the fiscal year beginning on or after 01 January 2031. Plans should cover comparative information for the preceding year.
- Consider electing full IFRS if your enterprise falls within the groups expected to become eligible from 2027: large listed companies, financial institutions, large economic groups and FDI enterprises.
This newsletter is prepared by Crowe Vietnam for general information purposes only and does not constitute advice for any specific case. Enterprises should refer to the original legal instruments and consult professional advisors before applying the above to their particular circumstances.
