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Bookkeeping Guides in Vietnam: Retention of accounting records and supporting documents

According to Article 8, Decree 174/2016/ND-CP guiding some articles on Law on Accounting 2015, accounting documents that have to be archived includes 

  • Accounting records;
  • Detailed accounting books and general accounting books;
  • Financial reports: monthly, quarterly, and annual financial statements; budget statements; consolidated budget statements. 
  • Other related documents, including:
    • Contracts such as loan documents, joint-venture agreements;
    • Administrative accounting reports;
    • Financial statements of completed projects and projects of national importance;
    • Reports on stocktaking and asset valuation;
    • Documents related to inspection and audit;
    • Records on destruction of accounting documents;
    • Decisions on addition of capital from profit, contributions to funds from profits;
    • Documents related to dissolution, bankruptcy, division, consolidation, merger, shutdown, conversion of the enterprise;
    • Documents related to receipt and use of funding or capital;
    • Documents related to taxes, fees, charges and other liabilities to the state;
    • Other documents.

What about the retention of electronic accounting documents?

Decree 174/2016/ND-CP requires an accounting unit to print out accounting records before sending them to archive. The option to archive documents electronically is not available to most entities implementing state accounting.

Then, these documents have to be signed and stamped by the legal representative or chief accountant (or acting chief accountant) if it is required by a competent authority in an investigation or an audit. The electronic accounting documents must be stored safely and accessible.

When should accounting documents be archived?

According to the Law on Accounting 2015 and Decree 174, accounting documents must be retained for a period of 12 months from the conclusion of an accounting year or the completion of specific accounting tasks, such as merger, restructuring, the finalization of an investment project, and similar activities.

Duration of retention of accounting documents in Vietnam

According to Clause 5, Article 41 of the Law on Accounting 2015, retention duration of accounting documents is as follows:

  • At least 05 years: For accounting documents serving management and operation of the accounting unit, including those not directly used for making accounting books and financial statements.
  • At least 10 years, unless otherwise prescribed by law: For accounting documents directly used for making accounting books, financial statements, accounting books, and annual financial statements. 
  • Perpetual retention period: For historical accounting documents or those of economic, national security, or national defense importance.

In details,

Accounting documents to be retained for at least 5 years in Vietnam (Article 12 of Decree 174/2016/ND-CP)

  • Accounting records that are not directly recorded to accounting books and financial statements such as collection notes, payment notes, which are not enclosed with accounting documents.
  • Accounting documents serving management of an accounting unit that are not directly recorded in accounting books and financial statements.
  • In the cases where other laws prescribe that the documents specified in Clause 1 or Clause 2 of this Article have to be retained for more than 5 years, such law shall apply.

Accounting documents to be retained for at least 10 years in Vietnam (Article 13 of Decree 174/2016/ND-CP)

  • Accounting records directly recorded in accounting books and financial statements, statements, detailed accounting books, general accounting books, monthly, quarterly and annual financial statements, annual statements, internal audit reports, accounting document destruction records and other documents directly recorded in accounting books and financial statements.
  • Accounting documents related to liquidation or transfer of fixed assets; reports on stocktaking and asset valuation.
  • Accounting documents of investors, including annual accounting documents and terminal statements of completed Group B and Group C projects.
  • Accounting documents related to establishment, division, consolidation, merger, conversion of the enterprise, dissolution, bankruptcy, shutdown or termination of a project.
  • Relevant documents such as audit documents issued by State Audit Office of Vietnam, inspection documents issued by competent authorities or documents of independent audit organizations.
  • Documents other than those specified in Article 12 and Article 14 of Decree 174/2016/ND-CP.
  • In the cases where other laws prescribe that the documents specified in Clause 1 through 6 of this Article have to be retained for more than 10 years, such law shall apply.

Accounting documents to be permanently retained in Vietnam (Article 14 of Decree 174/2016/ND-CP)

  • State accounting units shall permanently retain the following documents:
    • Annual state budget statements ratified by state budget, annual local budget statements ratified by the People’s Councils;
    • Documents and financial statements of completed Group A projects and projects of national importance;
    • Historical accounting documents or those of economic, national security, or national defense importance.
  • The legal representative of the accounting unit or local government shall identify accounting documents or those of economic, national security, or national defense importance. to be permanently retained.
  • The head or legal representative of the accounting unit shall identify accounting documents to be permanently retained on a case-by-case basis and transfer them to the accounting department or another department for retention in the form of original copies or other forms.

Note: Accounting documents to be permanently retained shall be retained for more than 10 years until they are naturally destroyed.