VietNamNet Bridge – The State Bank of Vietnam (SBV) has released document 8598, asking state-owned commercial banks to have their 2005 business reports audited by foreign auditing firms.

From 2006, state-owned banks must have annual financial reports audited in accordance with international standards. The auditing results must be reported to SBV for the central bank’s consideration and report to the Government.

SBV Governor Le Duc Thuy has also asked state-owned banks to submit the 2005 audited financial reports before October 31, 2006.

It is not compulsory for joint-stock banks and joint-venture banks to have financial reports audited in accordance with international standards; however, they are encouraged to do that.

SBV’s decision on requesting state-owned commercial banks should be considered as a step toward implementing the Prime Minister’s instruction on following international standards in auditing.

Vietnamese state-owned banks have entered the restructuring process, under which, the banks have shifted to pursue an international accounting system instead of a Vietnamese one.

The State Bank of Vietnam has asked for the Prime Minister’s permission to apply a new scheme on internal auditing for a trial period. At first, an internal auditing division will be set up at the Vietnam Bank for Foreign Trade (Vietcombank), and if successful, a similar division will also be set up at other state-owned commercial banks.

Phuoc Ha