Workers fight for survival as prices soar HA NOI — As the lunar New Year festival approaches, the prices

of goods have soared as usual. But the increase has come earlier this year. As the Vietnamese dong continues Consumers buy food at the Dich Vong to depreciate, people have been faced with wholesale market in Ha Noi. People, increased living costs. especially low-income earners, are facing a price hike of goods as the Vietnamese Ta Van Sy, a labourer at HCM City's Tan dong continues to depreciate. — Tao Industrial Park, said last month he had to VNA/VNS Photo The Duyet send his wife and children back to their native province to cut costs as his family relies solely on his modest salary of VND2 million (US$102) a month. "It is impossible to resist the price storm now," says Sy, "I work on Sunday to send extra money to my wife and children in the countryside." To cope, workers have cut daily expenses dramatically. Another worker, Pham Thi Vy, also earns about VND2 million a month and uses almost all of it to pay for food, electricity, water and her brother's school tuition. Vy says she recently moved into a 10q.m room with a friend to save money. As of mid-August, the monthly price for a room near the industrial parks and export processing zones in HCM City increased by between VND50,000 (US$2.5) and VND100,000 ($5.1). Prices for foods like rice, cooking oil, meat, and vegetables have also increased to dizzying levels. Nguyen Thi Nhung, an employee at a State enterprise in Ha Noi, jokes that shopping in supermarkets is harder than performing magic tricks. "I have very little money and everything is expensive and all prices are increasing," Nhung says. Economist Ngo Tri Long, former deputy head of the Market and Price Research Institute, attributes rising prices to multiple causes. He says the exchange rate rise between Vietnamese dong and the US dollar is one factor. Long says Viet Nam has been exposed to dollarisation (the holding by residents of foreign currency), meaning the impact of the rate adjustment may have been even stronger once imported goods are sold and people convert dollars to dong.

water. and oil and gas.2 trillion in value ($960 million) or an increase by between 20 and 22 per cent compared with the earlier months. To reduce pressure. — VNS .5 million) with preferential interest rates to help them stock goods for the lunar New Year period. an expert at the Ha Noi Socio-Economic Development Institute. says deputy head of Ha Noi Market Watch Vuong Tri Dung. says this will not be effective enough to stabilise market prices. He says Ha Noi will have to import pork from other provinces because it has met only 70 per cent of the city's demand. But Nguyen Minh Phong. The economist also attributes price rise to the loss of consumer confidence and to the trend among traders of hoarding rice to export to neighbouring countries. a situation Long says will immediately affect prices." Long says. According to deputy director of the Ha Noi Industry and Trade Department Nguyen Van Dong. the total commodity circulation in February will be about VND19. The inability to meet consumption demand will encourage hoarding or the spread of false information to raise prices and earn illegal profits. Phong suggests the State satisfy demand for foreign currencies among enterprises and apply drastic measures to stabilise the price of products like electricity. coal. causing increased input costs to produce goods."The rate adjustment has devaluated the dong. Ha Noi authorities have decided to lend enterprises VND400 billion ($20.

Financial Reporting Framework in Vietnam (updated September 2009) All domestic companies. listed and unlisted. Generally. None of the IASB's amendments to IASs nor new IFRSs have been adopted. Contingent Liabilities and Contingent Assets VAS 19 Insurance Contracts VAS 21 Presentation of financial statements VAS 22 Disclosures in the financial statements of banks and similar financial institutions .August 2006 VAS 01 Framework VAS 02 Inventories VAS 03 Tangible fixed assets VAS 04 Intangible fixed assets VAS 05 Investment property VAS 06 Leases VAS 07 Accounting for investments in associates VAS 08 Financial reporting of interest in joint ventures VAS 10 The effects of changes in foreign exchange rates VAS 11 Business Combinations VAS 14 Revenues and other incomes VAS 15 Construction contracts VAS 16 Borrowing costs VAS 17 Income taxes VAS 18 Provisions. the VASs were based on IASs that were issued up through 2003. Vietnamese Accounting Standards . are currently required to use the Vietnamese Accounting Standards (VASs). The table below lists VASs in force at August 2006. though some modifications were made to reflect local accounting regulations and environment. which have been developed by the Ministry of Finance.

replace the respective accounting regulations. and features topical matters that would be of interest to our clients and our professionals. Philippines. 04. Many of our clients have asked for more information about the implications from recent pronouncements. 02. Indonesia. This newsletter is directed towards meeting these requests. The following standards. and Vietnam. You can access the newsletter on our Point of View Page. accounting estimates and errors VAS 30 Earnings per Share Deloitte Southeast Asia Financial Reporting Newsletter The Deloitte Southeast Asia (SEA) Assurance & Advisory Services Group has published the inaugural issue of a newsletter focussing on financial reporting issues from a Southeast Asia perspective. which have been approved by the Minister of Finance and are required to be applied to enterprises of all economic sectors throughout Vietnam. The newsletter brings together recent updates on financial reporting developments both internationally and within the region. though not identical to. industry-specific accounting issues. Specific accounting regulations will be amended and supplemented in accordance with these standards.VAS 23 Events after the balance sheet date VAS 24 Cash flow statements VAS 25 Consolidated financial statements and accounting for investments in subsidiaries VAS 26 Related party disclosures VAS 27 Interim financial reporting VAS 28 Segment reporting VAS 29 Changes in accounting policies. and 14 are effective for 2002 reporting. Standards Nos. the related International Accounting Standards IAS). This newsletter is a collaborative effort among the Deloitte member firms operating in Brunei. Guam. Singapore. 03. and differences between IFRSs and local GAAP. the remaining standards are effective for 2003 reporting: • VAS 01 Framework . Malaysia. Thailand. April 2003 Update • New Vietnam accounting standards based on IAS Vietnam has begun to adopt of a body of Vietnamese Accounting Standards (VAS) that are based on.

and the auditing standards will be based International Standards on Auditing (ISAs) approved by the International Auditing Practices Committee of the International Federation of Accountants (IFAC). covering inventory. .• • • • • • • • • VAS 02 Inventories VAS 03 Tangible Fixed Assets VAS 04 Intangible Fixed Assets VAS 06 Leases VAS 10 The Effects of Changes in Foreign Exchange Rates VAS 14 Revenue and Other Incomes VAS 15 Construction Contracts VAS 16 Borrowing Costs VAS 24 Cash Flow Statement Click here to download a Comprehensive Summary of the New VAS (PDF 187k) prepared by VACO-Deloitte Touche Tohmatsu. MOF is developing a new accounting law which. April 2001 Update In an effort to further develop the auditing activities in Vietnam. if enacted. with effect from 15th January 2001: • • • • • • Standard 250 Consideration of laws and regulations in an audit of financial statements Standard 310 Knowledge of the business Standard 500 Audit evidence Standard 510 Initial engagement . which many in the business sector believe is not suitable to economic activities of a market economy. the Ministry of Finance (MOF) has adopted the following new auditing standards. The new law would replace the 1998 ordinance on accounting and statistics. MOF has considered the country's commitment to liberalising financial services such as insurance. January 2001 Update The Ministry of Finance (MOF) has adopted program for creating a system of accounting and auditing standards for Vietnam.opening balances Standard 520 Analytical procedures Standard 580 Management representations Vietnam now has ten standards on auditing. The standards will be applicable to all enterprises and auditing firms operating in Vietnam. auditing. and accounting in drafting the new law. The Vietnamese Standards on Accounting and Auditing Committee of the MOF has completed reviewing the first four drafted accounting standards. The Ministry of Finance is working to develop additional VAS. is planned to go into effect as planned early next year. The accounting standards will be based on International Accounting Standards (IASs) approved by the International Accounting Standards Committee. On the accounting side.

intangible assets. tangible assets. MOF plans to have national accounting standards that are in line with IAS. It is envisaged that these accounting standards will be finalised in the second quarter of 2001. October 2000 Update Decrees issued by the Ministry of Finance (MOF) provide some guidance on accounting standards that companies doing business in Vietnam must follow. MOF plans to complete and issue all accounting standards that are in line with IAS by the year 2003. are also required to follow this accounting system. Those four standards will cover accounting for inventory. Comments obtained from the members of the Committee are currently being considered. with very few exceptions. The Accounting and Auditing Department of the MOF is currently drafting its first four accounting standards. intangible assets. Domestic companies must follow the Vietnamese Accounting System (VAS). and revenue.tangible assets. MOF issued a letter confirming its position to require that all foreign companies that have not applied VAS to start applying VAS from 1 January 2001. Recently. In line with the MOF's intention to implement a uniform accounting system. . Foreign companies. a dialogue between MOF officials and foreign companies' representative is scheduled to take place in early October to discuss the possibility of extending the implementation beyond 1 January 2001. which it expects to issue before the end of the year. and revenue.