Since the mid 1980s, Vietnam has been transitioning from a centrally-planned to a market-based economy.
During the early-to-mid 1990s there was high economic growth and development, but the combined effects of the slow reform process and declining foreign and domestic investment resulting from the regional economic crisis of 1997 slowed growth in the late 1990s.
As part of its efforts to improve the investment climate, the Vietnamese government is undertaking a privatisation (or equitization) program and is revising its investment laws.
In 2007, Vietnams gross domestic product (GDP) was US$70 billion, its GDP per capita was US$818.00 and real GDP growth was 8.5 per cent.
The inflation rate during that year was 8.3 per cent, although recent inflation during 2008 year has been higher. Year-on-year inflation for 2007 and 2008 was 21.4 per cent in April, 25.2 per cent in May and 26.8 per cent in June, according to the Vietnam Chamber of Commerce and Industry.
Vietnam is a signatory to the ASEAN free trade area and is a member of the World Trade Organisation.
Working as a foreign employee Vietnam has a progressive national labour law, the Vietnam Labor Code, which was passed in June 1994 and later amended in 2002, which is designed to regulate working conditions.
Vietnamese and foreign employees are taxed differently. Personal income tax for Vietnamese starts at 10 per cent on monthly earnings after the first VND 4million and rises to a rate of 40 per cent on earnings of more than VND 40 million.
Expatriate earnings are taxed at between 10 per cent and 40 per cent, with the latter rate applying to monthly earnings of more than VND 80 million.
Social insurance of 5 per cent of the total salary is deducted every month where the employment contract exceeds three months.
A maximum of 3 per cent of employees in any company are allowed to be foreigners. The total number of foreigners in any one company is limited to 50 workers. This limits the possibilities for employment in Vietnam for foreigners.
Being recognised as a CPA Members are now able to complete a transitional examination to be recognised as a member of the Vietnam Association of CPAs (VACPA) after recognition of CPA Australia by the Ministry of Finance.
For members of foreign professional bodies to sit exams to convert to the VACPA they must meet the conditions of the Regulations on examinations and certification for auditors and accountants.
These regulations stipulate that:
Expatriates who would like to sit the exams must be entitled for residence in Vietnam, according to the laws of Vietnam.
A person who holds a certificate of a foreign professional body and would like to be granted the Auditor Certificate of Vietnam must sit the exams on related Vietnamese laws. They also must be entitled by the Vietnamese laws to work in the areas of auditing in Vietnam.
Foreign professional bodies are recognized by the Ministry of Finance of Vietnam if they are a member of IFAC and have training content and exams at the same level or higher than the Vietnamese equivalents.
Subject areas covered by the conversion exams include:
economics, investment and corporation legislation
tax and tax management legislation
accounting and corporation accounting legislation
auditing and guaranteed services
finance and financial management
Members must sit an exam covering all five subject areas in order to be granted a certificate.
