The new Circular is expected to take effect from January 1, 2025, and will apply to financial years starting on or after January 1, 2025. This new Circular will replace the Corporate Accounting System issued under Circular 200/2014/TT-BTC, Circular 75/2015/TT-BTC, and Circular 53/2016/TT-BTC.

Circular 200, introduced in 2014, has been in use for a decade nearly. The Ministry of Finance stated, “The practical application of Circular 200 has revealed several shortcomings. Especially for FDI enterprises entering the Vietnamese market, as the Vietnamese accounting system is not consistent with international accounting standards, these businesses have encountered difficulties during the implementation of the system.”

Therefore, it is necessary to draft a new Circular to replace Circular 200, in order to align with international accounting standards and offer more flexibility for businesses. This will help create favorable conditions for economic development, particularly attracting foreign businesses to invest in the Vietnamese market.