The Ministry of Finance of Vietnam recently launched the first set of Public Sector Accounting Standards (VPSAS), in full compliance with International Public Sector Accounting Standards. A set of 21 standards will be applied between now and 2024.

This event marks an important milestone in Vietnam’s quest to establish a good public financial reporting framework in line with the development of the consolidated whole of Government Financial Statements.

The launch and application of VPSAS standards in Vietnam will provide a reliable basis for the evaluation of the financial performance of the public sector, leading to improved decision-making and enhanced accountability. It also supports Vietnam in improving its sovereign credit rating by having better fiscal disciplines and as a result, could help lower borrowing costs.

The development of the first set of VPSAS is supported by the Public Financial Management Analytical and Advisory Assistance Program in the 2016-2021 phase, co-financed by the Swiss Secretariat for Economic Affairs and the Global Affairs Canada, and entrusted through the World Bank. The program’s overall objective is to support Vietnam’s reforms in Public Financial Management at both national and sub-national levels.

Reportedly, more than 40 countries have adopted IPSAS international public accounting standards, including many countries in the region like Indonesia, Malaysia, the Philippines and Singapore.