Vietnam’s IFRS Sustainability Terminology Translation: Why It Matters

The recent introduction of Vietnamese sustainability terminology under International Financial Reporting Standards (IFRS) marks a significant step toward aligning Vietnam’s accounting practices with global standards.

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The Association of Chartered Certified Accountants (ACCA Vietnam) has recently introduced Vietnamese terminology for sustainability under International Financial Reporting Standards (IFRS) – the first Vietnamese translation of such internal standards – which is expected to serve as a framework for governing the disclosure of information on sustainability and climate risks.

Vietnam is actively updating its accounting regulations to better align with international standards, with a plan to make IFRS mandatory for all enterprises after 2027. Against this backdrop, the terminology translation represents another step forward in Vietnam’s efforts, laying a foundation for the local professional community to access, adopt, and integrate more rapidly with global practices.

ACCA’s Vietnamese terminology translation for financial reporting in 2025

ACCA Vietnam, in collaboration with leading experts, has developed Vietnam’s first Vietnamese-language sustainability reporting terminology, enabling the professional community to access international standards more accurately and consistently and supporting the effective adoption of global frameworks.

The terminology set covers 44 defined terms, presented in both English and Vietnamese. Most terms are drawn from IFRS S1, which sets out general requirements for sustainability-related financial disclosures, and IFRS S2, which focuses on climate-related disclosures.

Erasing language barriers in IFRS sustainability reporting

As IFRS S1 and S2 become key global references for sustainability disclosures, language remains a critical implementation challenge in Vietnam. The introduction of Vietnamese-language sustainability terminology directly addresses this barrier, enabling more straightforward interpretation and more effective application of international standards.

A practical implementation tool for businesses and regulators

High-quality, consistent translation is essential to preserve the original intent of IFRS sustainability standards. Inconsistent terminology risks misinterpretation, undermines comparability, and could lead international partners, banks, and auditors to question or reject sustainability reports.

The terminology functions as both a technical reference and a practical implementation tool. By aligning translated terms with Vietnam’s existing legal and professional framework, it supports consistent application across enterprises, regulators, and assurance providers.

Supporting SMEs while strengthening global alignment and sustainability objectives

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Enhancing internal audit and risk management

Accessible and standardized IFRS sustainability terminology is particularly important for small- and medium-sized enterprises (SMEs), which face increasing transparency requirements despite having limited resources. Clear and consistent guidance helps businesses move beyond a compliance-driven approach and embed sustainability considerations into long-term strategies.

At the same time, the Vietnamese terminology improves the comparability and verifiability of sustainability disclosures, supports integration into academic and professional training, and advances broader national policy objectives, including enhanced transparency and progress toward net-zero commitments.

Business takeaway

The introduction of Vietnamese-language IFRS sustainability terminology lowers implementation risk and costs for businesses as Vietnam moves toward mandatory IFRS adoption after 2027. By removing language barriers and standardizing key concepts under IFRS S1 and S2, the terminology enables more accurate, consistent, and credible sustainability and climate reporting. This helps companies, including SMEs, meet the expectations of investors, lenders, and partners and align more quickly with global practices.

See also: Vietnam Audit Compliance 2026: What FOEs Need to Know

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