Purpose -The purpose of this paper is to examine the recent accounting regulations designed to facilitate international harmonization in Vietnam and to show how Vietnam developed an accounting system that harmonizes with international standards while preserving macroeconomic control. Design/methodology/approach -This paper is developed using the theoretical framework on globalisation. Findings -The recent development of accounting aims to implement Vietnam's commitment to harmonize its accounting system with the world. This process has faced some difficulties due to national particularities such as Vietnam's economic system and accounting tradition. This paper shows that the regulators have been careful in their approach to develop and find ways to combine or adapt when pushing for accounting development: a co-existence of vietnamese accounting standards and a uniform accounting system. This point differs from the Anglo-Saxon world, but is comparable to China.Research limitations/implications -The different approach to developing accounting regulation in Vietnam reflects the key role of the State in preserving governmental control while harmonizing with international standards. Practical implications -This paper studies the influence of globalization on accounting development in Vietnam. It suggests that developing accounting practices in a country in harmony with international standards faces obstacles previously evidenced in the literature, such as economic system and accounting tradition. The study also provides insight into problems encountered by regulators who are incorporating international accounting standards into national accounting regulations. These problems suggest that international accounting standard setters and accounting regulators may face issues similar to those in Vietnam. Originality/value -This paper contributes to the literature on international accounting harmonisation by illustrating the need for considering national particularities as factors that will affect the rate of harmonisation with international accounting standards.
Purpose The paper aims to examine how the change in political ideology and institutions affects corporate governance (CG) of the state-owned enterprise (SOE) in Vietnam, as well as its consequences. Design/methodology/approach To link macro-level institutional change to micro level of the reform process of the Vietnamese SOE governance, we draw from the “Varieties of Capitalism” (VoC) framework adopt a triangulation approach for data collection. Findings The paper shows the CG of SOEs is a variant of capitalist CG. Changes in the function, state control and structure of governance in the Vietnamese SOEs have been shaped by the political ideology and institution. It also shows that the political and bureaucratic interferences of the state in SOEs are for political interests rather than for firms’ effectiveness. Research limitations/implications The political ideology has existed in major aspects of the governance structure of the SOEs as a part of the party’s effort to maintain its economic legitimacy and a government of “control and domination”. Practical implications The findings of this study can be seen as a reference for the Vietnamese Government and governments of other developing countries in making incremental improvements in existing institutions rather than choosing the “best” model of CG. Originality/value The paper contributes to the literature by applying the VoC framework to analyse the change in SOE governance in a transition country while preserving the communist ideology. It can deepen our understanding of the SOE governance in Vietnam and enrich comparative studies of CG in the transition countries.
This paper's aim is to explore how institutional pressure exerted on regulators influenced the their decision to adapting a capitalist accounting system in the national accounting during Vietnam's reforms and integration process into the global economy. Based on the institutional theory, the paper shows that in the first phase Vietnam adapted the former socialist accounting system, moving towards a private capitalist accounting model but preserving many fundamental peculiarities of the accounting system under a centrally planned economy. In the second phase, facing situations where there are uncertainties about the proper approach to set accounting standards, regulators have sought standards of the IASB that are viewed as being more legitimate and "mimic", regardless of their actual usefulness in Vietnam's context. As a result, besides potential benefits, the Vietnamese accounting standards are less efficient for the domestic enterprises. Instead of applying the accounting standards, the domestic enterprises prefer to continue to use the Uniform Accounting System to prepare the financial statements. Those problems suggest that accounting regulators in transitional and developing countries may face issues similar to those in Vietnam.
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