The Japan International Cooperation Agency (JICA) will assist Vietnam’s Ministry of Finance (MOF) in improving capacity for the application of international financial reporting standards (IFRS) with an aim to boost transparency of financial information.

Chief Representative of JICA Vietnam Office Akira Shimizu (left) and Vu Duc Chinh, director of MOF's Accounting and Auditing Policies Department. Photo: JICA Vietnam

Under the Record of Discussions (R/D) signed on December 22, JICA will support the MOF’s Accounting and Auditing Policies Department (AAPD) in the implementation of a project on IFRS application, which might be conducted from April g 2021 to March 2024.

AAPD Director Vu Duc Chinh said the ministry is aware of benefits brought about by applying IFRS and the feasibility of the application in Vietnam. The JICA’s support is crucial for the ministry in the process.

Chief Representative of JICA Vietnam Office Akira Shimizu said both the MOF and JICA are aware of the requirement of the modernization in the accounting sector. The application of IFRS is believed to boost reliability and transparency of financial statements amid the increasing demand for international capital market among Vietnamese businesses.

The project on IFRS includes three components that cover the building of applicable rules and legal framework to apply IFRS in Vietnam; improving state agencies and businesses’ capacity and understanding of IFRS; and assessing the impact of voluntary applying of IFRS.