RMIT Vietnam NewsIndustry sets sights on international standards

Industry sets sights on international standards

Wednesday, January 28, 2015 - 14:28
Panel discussion.
Corporate governance development workshop in Ho Chi Minh City.
Head of Centre of Commerce and Management, Professor Raymond Gordon (second from right) with RMIT Vietnam business educators.

Vietnam’s accounting profession has come a long way in working towards meeting international standards and will continue to improve.

This was the message delivered to around 200 senior business leaders and corporate governance professionals at a seminar in Ho Chi Minh City.

It was the first as part of a series through the KPMG-RMIT Centre of Governance.

Professor Brendan O’Connell, RMIT University’s Deputy Head Industry Engagement from the School of Accounting, shared the importance of reforms in accounting, governance and regulatory standards using the International Financial Reporting Standards (IFRS).

As per his findings, he said the accounting profession in Vietnam has come a long way in a relatively short time but many barriers still exist toward full implementation of IFRS.

“There’s a need of urgent reforms in terms of training of accountants and regulators in IFRS, greater impetus from the government and moves to improve the reliability of asset prices,” Professor O’Connell said.

KPMG in Vietnam’s Head of Advisory Mr John Ditty highlighted the importance of standards such as the IFRS in corporate governance.

“Adequate and effective corporate governance is critical in supporting boards and management to navigate through changing market conditions,” Mr Ditty said.

“While the scores suggest that Vietnam has performed relatively well in some of the key areas of director independence, roles of the board and shareholder rights, there are still areas including board diversity, risk governance and assurance we could look to improve.”

At the seminar, experts from different industries shared practical advice and experience to work towards improving corporate governance development in Vietnam, balancing between corporate governance rules and flexibly putting it into practice.

The seminar attracted many business leaders from corporations such as Vinamilk and Ho Chi Minh City Stock Exchange.

The topic was also presented at a seminar in Hanoi the same week.