NetSuite Localization for Vietnam: How to Stay VAS-Compliant While Using Your Parent COA

Global enterprises expanding into Vietnam face one recurring challenge: How can they comply with Vietnamese Accounting Standards (VAS) while still maintaining the same Chart of Accounts (COA) used by their parent company – typically under US GAAP, IFRS, or SFRS?

1. Vietnam’s Accounting Rules: Circular 200 and 133

In Vietnam, companies cannot freely design their own Chart of Accounts (COA).
The Ministry of Finance defines the COA structure through two main regulations:

Circular	Applies to	Purpose
Circular 200	Medium and large enterprises	Comprehensive accounting and reporting framework
Circular 133	Small and medium enterprises	Simplified version of VAS

All companies operating in Vietnam must:

• Use the account numbers and structure defined in these circulars.
• Prepare financial statements following the official VAS formats (Balance Sheet, Income Statement, etc.).

Therefore, multinational groups need a system that allows:

1. Full compliance with Circular 200 or 133, and
2. Consistent reporting with the parent company’s COA.

NetSuite’s Localization for Vietnam provides this flexibility through two main mechanisms:
(1) Multibook Accounting, and (2) Account Mapping (COA Translation).

2. Overview of the Two Mechanisms

Approach	How It Works	Best For	Example
Multibook Accounting	Records each transaction in multiple general ledgers (books) simultaneously.	Large enterprises requiring strict audit and compliance.	One purchase recorded under both US GAAP and VAS.
Account Mapping	Records once under the parent COA, then automatically “translates” it into VAS format for reporting.	Companies seeking faster setup and lower cost.	“Raw Material” (parent COA) maps to “152 – Nguyên liệu, vật liệu” (VAS COA).

3. Multibook Accounting – Parallel Ledgers

Concept

Multibook Accounting in NetSuite allows a single financial transaction to be automatically recorded in multiple general ledgers (“books”), each using its own accounting standard — such as VAS, IFRS, US GAAP, or Tax.

Example Transaction	Book	Accounting Rule Applied
Purchase of office furniture	Primary Book: VAS	Recorded under “211 – Tangible Fixed Assets” per Circular 200
	Secondary Book 1: IFRS	Recorded as “Property, Plant & Equipment” under IFRS
	Secondary Book 2: Tax Book	Recorded according to Vietnamese tax depreciation rules

Availability and Licensing

• Multibook Accounting is available only in the NetSuite OneWorld module.
  It is not included by default. To use this feature, the customer or partner must raise a support ticket with Oracle NetSuite to enable Multibook functionality.
• Customers using the NetSuite SuiteSuccess edition will not have Multibook Accounting included.
  To activate it, an upgrade to OneWorld is required.

Once enabled, Multibook allows configuration of separate books for:

• VAS (Vietnam Local GAAP)
• IFRS
• Tax Reporting
• Parent GAAP (e.g., US GAAP or SFRS)

Example in Action

A manufacturing company records a purchase of a new production machine.
NetSuite automatically generates three sets of journal entries:

Book	Account	Description
VAS Book	211 – Tangible Fixed Assets	Recorded according to Circular 200
IFRS Book	Property, Plant & Equipment	Recorded using IFRS depreciation method
Tax Book	TSCĐ – Khấu hao thuế	Recorded according to Vietnamese tax rules

Result:

• Auditors can review each ledger separately.
• All reporting standards remain consistent.
• One transaction produces all required books automatically.

Advantages and Limitations

Advantages	Limitations
Strong audit readiness	Requires NetSuite OneWorld module
Separate ledgers per accounting standard	Additional license and configuration effort
Full compliance for multi-standard reporting	Larger data volume and maintenance complexity

4. Account Mapping – Automatic COA Translation (Parent → VAS)

Concept

All transactions are entered once under the parent company’s COA.
NetSuite’s localization layer then automatically maps these accounts to their corresponding VAS-compliant accounts defined in Circular 200 or 133.

COA Context	Account Number	Account Name	Based on
Parent Company COA	1205	Raw Material	US GAAP / IFRS
Vietnam (VAS COA)	152	Nguyên liệu, vật liệu	Circular 133

How It Works

Step	Action	Description
1	Record transaction	The accountant enters transactions using the parent COA (e.g., “1205 – Raw Material”).
2	Apply mapping layer	The localization engine automatically applies the mapping rule (1205 → 152).
3	Generate local reports	Reports are formatted automatically according to Circular 200 or 133 (Balance Sheet, P&L).

Example in Action:
A Vietnam subsidiary purchases raw materials.

• The accountant records the transaction under 1205 – Raw Material (parent COA).
• The localization layer maps it to 152 – Nguyên liệu, vật liệu (VAS COA).
• Reports generated for local authorities comply with VAS, while global consolidation remains seamless.

Advantages and Limitations

Advantages	Limitations
Only one data entry required	Mapping setup requires local expertise
Complies with Circular 200/133 automatically	Mapping documentation needed for audit
No extra license cost	Slightly slower report generation if mapping tables are large

5. Technical Comparison

Feature	Multibook Accounting	Account Mapping
Transaction Entry	Recorded multiple times	Recorded once
Storage Volume	High	Low
VAS Compliance	Native per book	Achieved through mapping
Circular 200/133 Compatibility	Yes	Yes
Audit Readiness	Strong	Requires mapping documentation
Implementation Cost	Higher (OneWorld license + consulting)	Lower (custom mapping setup)
Ease for Users	Complex	Simple

6. IFRS 2025 Transition in Vietnam

Vietnam plans to adopt IFRS starting in 2025.
NetSuite supports both methods for this transition:

Method	IFRS Adaptation	Example
Multibook Accounting	Add an additional IFRS Book alongside VAS.	Record VAS + IFRS + Tax in separate books.
Account Mapping	Extend the mapping table (Parent → IFRS, Parent → VAS).	Map “1205 – Raw Material” → IFRS “PPE” → VAS “152”.

7. Real-World Use Cases

Company Type	Preferred Method	Reason	Example
Large manufacturing or listed corporations	Multibook Accounting	Strong audit control and multi-standard reporting	Group with subsidiaries in Vietnam and the US
Trading or service companies	Account Mapping	Lower cost and faster implementation	Technology service company with centralized reporting
Hybrid enterprises	Combination of both	Balance between accuracy and efficiency	Multibook for Fixed Assets, Mapping for Expenses

8. Choosing the Right Approach

If your priority is…	Choose
Full audit transparency and strict compliance	Multibook Accounting
Efficiency, simplicity, and lower cost	Account Mapping
Flexibility across standards	Hybrid approach

Both approaches ensure:

• Full compliance with Vietnamese Accounting Standards (VAS)
• Seamless integration with the parent company’s COA
• Readiness for the IFRS 2025 transition