During the trip to Vietnam, Ms. Lucia Real-Martin, Director of ACCA's emerging markets-Asia signed strategic partnership MOU with six local major universities and associations. The agreement is to increase supportive efforts and improve quality of training and accountants and auditors in the area of accounting and finance in Vietnam. Lucia talks with Vietnam Business Forum about Accounting and Finance profession issues in Vietnam.
Please give your comments on the role of auditors and accountants in the current economic context, especially in Vietnam?
Vietnam has a large, young dynamic and fast learning population, growing industries and ever-increasing consumer demand. With these advantages, the country continues to be an attractive destination for foreign investors and international professionals. In this new, challenging economic context, accountants have changed from the traditional role of book-keepers to more strategic decision makers. They are also seen as absolutely key to designing and implementing a successful longer-term strategy to ensure the cash flow as well as the financial stability of enterprises.
We should always be mindful that accountants play a pivotal role in business because the information they collate, analyse and disseminate is crucial to the health of businesses and markets. Building and maintaining confidence in the accounting profession among investors, managers, board members, governments and the public will help to promote accurate disclosure, mitigate the impact of future financial shocks and promote improved approaches to risk management.
In that context, ACCA is the leading international accountancy professional qualification that not only provides technical knowledge on areas such as management and financial accounting, auditing, tax, and risk management but also equips professionals with the management and leadership knowledge they need to effect change and profitability in their businesses. Additionally, practical experience requirements and professional ethics training is paramount for an ACCA trainee to be fully qualified as a professional accountant and an ACCA member.
In your opinion, how can Vietnamese auditors and accountants best adapt to such changes and economic challenges in Vietnam?
In the wake of the global financial crisis, finance professionals have been uniquely equipped to address issues that have risen rapidly to the top of the business agenda.
Around the world, professional accountants have risen to this challenge and Vietnam auditors and accountants have just best adapted to such changes. They have been providing leadership, advice and support to businesses, governments, regulators and standard setters to find a way through one of the toughest business environments we have ever known. Vietnam will be in need of high-quality, skilled accountants who understand the business environment and how organisations operate and can contribute to the running of efficient, effective and strong organisations. We believe there will be an increased need for highly-talented professionals, particularly in emerging markets, such as Vietnam. That means that organisations need to be prepared to invest in their finance professionals to ensure that they are seen as leaders in the business and are central to decision-making.
Professional accountants already bring value through financial analysis, forecasting and an ethical approach. By enhancing their expertise in risk management, internal control and strategic decision-making, we believe accountants will be at the heart of business in the future. As the economy recovers, accountants should also be in a position to help create the infrastructure and develop codes of governance that bring about responsible and sustainable business practices for the future. We also see the need for the role of the auditor to be enhanced and expanded.
As well as reporting on historic financial statements, auditors can meet stakeholders' needs better by including a review of risk management and governance arrangements. They should also report on the assumptions underlying the business model and whether these seem reasonable or optimistic. Greater communication of findings is needed for investors and other stakeholders, and in order to meet their needs, we believe auditors should ultimately report on real-time information.
What kind of support has ACCA provided for the development of the Accounting and Finance profession over the last eight years since establishing official presence in Vietnam?
ACCA has been present in Vietnam as the first international accountancy body established in both Hanoi and HCMC since 2002 and almost 10 years later, we are training over 5,000 trainees to become ACCA professional accountants in Vietnam. Worldwide, ACCA has over 140,000 members and 404,000 students.
Since the beginning, ACCA has aimed to be a strategic partner of government agencies in developing the local Accounting and Audit profession to global standards. The collaboration can be seen on a range of issues to strengthen and support the accounting profession in Vietnam including training and knowledge sharing.
ACCA has been a strategic partner with local professional associations, employers, learning providers and universities among others in developing the accounting and audit curriculum in line with international standards to train the future finance and accounting leaders of Vietnam.
In past years, in term of legislation reinforcement, ACCA has contributed and co-organized workshops with relevant government and professional agencies to provide input from leading law makers and industry experts to the drafting of the Law on Independent Audit, and the initial development of the Vietnam Accounting Standards.
How important is the Vietnamese market to ACCA’s global strategy in the future?
ACCA has always considered Vietnam a very important emerging market. With a large young and dynamic population and a favourable business environment, the country has definite advantages that inspire our continued commitment to making it a strategic market for ACCA.
Despite the global economic crisis, Vietnam has continued to make many important reforms, and is one of the fastest developing business environments in the region. The government has implemented many important regulatory changes over the past years, which have improved business sentiment, encouraged and facilitated foreign investors and global bodies, like us, in our operation. These changes have made the Vietnamese economy very attractive, resulting in increased investment by many developed countries and international enterprises.
We appreciate the work of Vietnam’s governing authorities and accountancy professional bodies such as - MOF, Vietnam State Audit, VAA, VACPA and VTCA for their efforts of speeding up international economic integration and strengthening the capability of Accountancy, Finance and Auditing at all levels.
In the next five years, with the mission to offer first choice qualifications to people of ability and ambition, ACCA will continue with to work closely with leading universities and tuition providers in training future accounting and finance professionals.
The MoUs that I recently signed with RMIT Vietnam, University of Economics HCMC, University of Economics and Law (HCMC) Academy of Finance, Foreign Trade University and National University of Economics (Hanoi) on this trip to Vietnam will be the foundation for further cooperation and support to the accountancy profession and education in Vietnam.
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