The case for adopting international reporting requirements in Vietnam
Francois Denimal, Managing Director at FIS, an international provider of financial services technology, has emphasised that Vietnam’s banking sector must adopt international reporting standards and financial regulations to compete on the world stage.
Vietnam’s economy has been growing at pace, and after demonstrating a world-leading response to Covid-19, should continue to grow in 2020, even as countries around the world face financial crises.
However, Denimal picks out one crucial thing that could prevent this upward trajectory from continuing: Vietnam needs to speed up alignment with international reporting standards and regulations, or risk being left behind.
Investors need to know that their money is safeguarded. To that end, compliance with the Basel Accords would reduce the risk for foreign investors. However, Vietnam has been slow to implement Basel I and II, and the deadline has now been extended to 2023.
Also crucial to ensuring international confidence is implementing global reporting standards. Over 144 jurisdictions mandate the International Financial Reporting Standards (IFRS) to make business information transparent and clear. While Vietnam has a plan to implement IFRS by 2025, this is well behind the global trend, and could slow down economic growth.
We’d go even further – to truly take advantage of their current economic and pandemic-beating success, Vietnam should quickly implement essential international financial regulation and adopt XBRL reporting within the IFRS framework. This would offer the transparency, speed and usability that investors need to enable Vietnam’s continued meteoric rise.
Read Francois Denimal’s article here.