Influx of US players will help bring auditing sector to account


American auditing firms have recently been given the green light to do business in Vietnam. The Ministry of Finance's Bui Van Mai, director of the Accounting Policy Department, discusses the move with VIR.

With US auditing firms coming into the market on an equal footing, do you see big changes ahead for Vietnam's auditing industry?

Not at present. It's important to point out that the auditing market in Vietnam is still relatively small and fighting to establish itself.

Then there is the fact that we already have foreign-owned auditing firms operating here and these have paved the way for increased competition.

Would you say US auditing firms are welcome here in Vietnam?

Of course they are. When their customers come to invest in Vietnam, they should have access to auditing services of their choice.

What kind of pressure do you see being applied to Vietnam's domestic auditing firms as a result of increased competition?

I agree that with the arrival of the US firms, there will be an increase in overall competition. That said, I don't believe the state-run auditing firms need worry too much about losing ground.

What about the privately run domestic auditing firms, will they be able to keep pace with the changes?

I believe so. They have developed a comfortable niche in recent years and are growing quickly. Let's not forget that there are many market sectors here in Vietnam, creating demand for a variety of firms and services.

How well established is the domestic auditing industry here?

At present, Vietnam has 3,000 auditors, 600 of which have advanced certification. In line with other countries in the region, every auditor has university credentials in finance, accounting, law, and foreign languages.

You will admit however, that domestic firms have made mistakes, as in the recent case of the Ha Long canned food company?

Of course there are mistakes made, that's a risk of auditing. But lets not forget that some first-world auditing giants have made mistakes, as has been clearly shown by recent events.

VIR - (11/03/2003)