kỷ yếu hội nghị khoa học sinh viên

Tr−êng §¹i häc Hμ Néi
KHOA QUẢN TRỊ KINH DOANH – DU LỊCH
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Th¸ng 5 – 2010


Héi nghÞ khoa häc Sinh viªn Khoa Qu¶n trÞ kinh doanh - Du lÞch

Th¸ng 5 - 2010

MỤC LỤC
1. AN EXPLORATORY RESEARCH INTO WALKING TOUR DEVELOPMENT
IN HANOI .................................................................................................................. 3
Written by: Nghiem Truong Son (3K-08), Tran Thu Phuong (4K-07)
Luu Thi Hoang Oanh, Bui Phan Phuong Thao, Nguyen Thi Thu (2D-07)
Supervisor: Nguyen Duc Hoa Cuong

2. ROLE OF AUDIT IN VIETNAM ........................................................................... 18
Written by: Pham Quynh Anh, Nguyen Thi Thu Phuong (1KT-08)
Nguyen Thi Lien, Le Thi Huyen Trang (2KT-08)
Vu Thi Ngoc (3KT-08), Dang Anh Thu (1KT-08)
Supervisor: Chu Huy Anh

3. MANAGEMENT ACCOUNTING: FRAMEWORK AND PRACTICES IN
VIETNAM CASE STUDY:NATEXCO .................................................................. 30
Written by: Tran Hong Nhung, Nguyen Thi Hoai Thu (1KT -07)
Tran Duy Nam, Vu Phuong Thao, Bui Thi Hai Yen (2KT -07)
Supervisor: Do Van Anh

4. ACCOUNTING FOR FIXED ASSETS................................................................... 42

Written by: Nguyen Thi Ha, Hoang Thu Hang
Bui Thi Minh Hoat, Le Thi Kim, Dinh Thi Thoi
Supervisor: Dinh Le Mai

5. SCIENTIFIC RESEARCH PAPER REPOS CONTRACTS: LAW AND
APPLICATIONS IN VIETNAM ............................................................................. 70
Written by: Nguyen Hong Hanh
Tran Viet Kien, Nguyen Thi Quyen
Supervisor: Nguyen Quynh Anh

6. DANCE WITH VIETNAM INFLATION 2005-2010............................................. 84
Written by: Nghiem Truong Son, Pham Thanh Cong (BA-08)
Le Bich Thuy (AC-07), Bui Thu Van (BA-07)
Supervisor: Pham Thi Hoa Nhai

7. COUNTRY RISK ANALYSIS IN VIETNAM ....................................................... 98
Written by: Nguyen Thi Dieu Tuyet (3TC07), Nguyen Van Trang (2TC07)
Nguyen Thi Bich Phuong (3TC07), Luong Thu Huong (3TC07)
Supervisor: Nguyen Thu Huong

8. THE IMPORTANCE OF PHYSICAL EVIDENCE IN SEVICES
ORGANIZATION.................................................................................................. 120
Written by: Le Tuyet Lan, Thieu Thi Thuy Linh (BA08)
Luu Dieu Linh, Nguyen Thanh Huyen (BA08)
Supervisor: Tran Tuan Anh

9. MARKETING AFTER CRISIS ............................................................................. 135
Supervisor: Ngo Phuong Dung
Written by: Nguyen Thi Thu, Nguyen Thi Hoa (TR-06)
Vu Thi Thin, Hoang Thi Thanh Huyen, Do Thi Phuong (TR-06)

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10. COUNTRY RISK ANALYSIS IN VIETNAM ..................................................... 169
Written by: Dang Thu Trang, Nguyen Thi My Hanh (3K-07)
Tran Thi Quynh Trang (3K-07), Phung Thi Anh (2K-07)
Supervisor: Nguyen Thu Huong

11. GAP BETWEEN ORDINANCE AND SMALL-SCALE RETAILERS’
MANAGEMENT ON FOOD HYGIENE AND SAFETY .................................... 196
Written by: Nguyen Thi Thanh Huong (3K-08)
Hoang Thu Ha (CN2-08), Nguyen Thi Thuy (2KT-07)
Supervisor: Nguyen Thi Cuc

12. The development of Standby Credit and its application in Vietnam...................... 209
Written by: Le Thi Thu Huong, Nguyen Thi Thanh Nga
Nguyen Thi Ha Nhung, Nguyen Phuong Van
Supervisor: Phan Thi Kim Ngan

13. BILL OF LADING AND ENDORSEMENT PROCESS ...................................... 225
Written by: Nguyen Van Anh (FB-07)
Kieu Thi Thu Hang, Nguyen Le Quyen (FB-07)
Supervisor: Phan Thi Kim Ngan

14. EFFECTIVENESS OF INNOVATIVE TRAINING ............................................. 240
Written by: Do Duc Thu (4K -07)
Duong Hong Hanh, Nguyen Hai Yen (1D-07)

Supervisor: Nguyen Le Phuong Tram

15. ANALYSIS OF THE DEPENDENCE OF TOURISM REVENUE ON THE
NUMBER OF VISITORS, INVESTMENT, CPI .................................................. 256
Written by: Hoang Thi Hue, Ngo Van Lung (TR-08)
Supervisor: PhD DAO Thanh Binh

16. THE FACTORS AFFECTING STATISTICS FINAL RESULTS OF FMT
STUDENTS............................................................................................................ 268
Written by: Pham Viet Dung, Luu Dieu Linh (BA-08)
Nguyen Thi Dung (BA-08)
Supervisor: PhD. Dao Thanh Binh


Héi nghÞ khoa häc Sinh viªn Khoa Qu¶n trÞ kinh doanh - Du lÞch

Th¸ng 5 - 2010

AN EXPLORATORY RESEARCH
INTO WALKING TOUR DEVELOPMENT IN HANOI
Written by: Nghiem Truong Son (3K-08), Tran Thu Phuong (4K-07),
Luu Thi Hoang Oanh, Bui Phan Phuong Thao, Nguyen Thi Thu (2D-07)
Supervisor: Nguyen Duc Hoa Cuong
ABSTRACT
This paper aims to analyze the potentiality of walking tour in Hanoi and find out
problems which is needed to improve for further development of walking tour in Hanoi.
Basing on both primary and secondary method, the information collected through real
experiences of tourists in Hanoi and tourist information center (HaproTic) which are
conducted through interview and observe. We also gathered some information about
traffic, transportations and attractions in the internet through reliable sources. From

those, we can conclude that
I. INTRODUCTION
Being well-known as a City of Peace and ranked the sixth in top ten most attractive
cities in Asia according to Travel and Leisure magazine of the US in 2007, is one the of
top ten best shopping cities in Asia, of top ten best city for leisure in Asia by online
tourism magazine Smart Travel Asia (2009), Hanoi, a thousand year city, is likely to be
an ideal destination for tourists from all over the world. Looking at many neighbor
countries such as Thailand, Singapore, Malaysia which have utilized Tourism as an
engine to boost their economies, Vietnam generally and Hanoi particularly must take
action to make tourism become a key industry soon.
Besides many popular types of traveling such as cycling tour, in-seat coaching tour,
walking tour could be a trend to develop in Hanoi because Hanoi has many potentials to
nurture it.
Thus, this paper focus on analyzing some aspects of Hanoi ranging from attractions,
transportation, information system… to find out problems which is needed to improve
to develop walking tour and also give some recommendations and potential walking
tours for further development.
II. LITERATURE REVIEW
1. The walking tour concept
Nowadays, tourism is defined by most of the countries as the chief industry to
develop economy because tourism has become a popular global leisure activity.
However to meet the demand of all the customers, tour operators have to create a wide
range types of tours in term of tour styles (luxury tours, budget tour) or tour activity
types (adventure tours, eco-tours…) and another type of tour which depends on
transportation options such as motor coach tours, train tours, bicycling tours… Among
them walking tours has become a popular trend for many tourists. Walking tour may
refer to either a multi-day trip or a full day or partial day trip of one or more destinations

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where the primary method of transportation is walking. Walking tour can be led by a
tour guide or be self-guided. Your tour will probably involves a morning walk with
sightseeing
stops,
lunch,
a
longer
afternoon
walk
and
dinner
( Commonly, walking tours take place when
distance between destinations is not too long and accessibility for walking tourists is
somewhat convenient. By participating in walking tour, tourist can take advantage of
seeing destinations in great detail and also saving a large expenditure for transportation.
2. Typical walks in major cities
™ The Classic Walk in Paris ( />Duration: 3.5 hours
Distance: 4 miles or 6.4 km
The Classic Walk offers a whole overview of Paris. Virtually most of major sites in
the city center are covered:
- The Eiffel Tower: the symbol of Paris
- Notre Dame: the most famous cathedral in the world
- Napoléon’s Tomb: the resting place of the most famous Frenchman in history
- Louvre Museum: one of the grandest museum in the world, include the most
famous works: Mona Lisa, Venus de Milo….

- Musee D’ Orsay: the museum hosts a world-class collection of Impressionists paintings.
- Tuileries Garden: Former Royal Garden in the middle of the city
- Champs- Elysees: the most famous avenues in the world. Its sidewalk are lined
with café, cinemas, 5-star hotels and shops.
™ The French Revolution Walk ( />Duration: 2 hours
Distance: 2.3 miles or 3.7 km
The French Revolution Walk will enlighten you to the significance of one of the
most important events in modern history. Revive the troubled period leading up to some
famous events in France.
™ Fashion walking tour ( />Duration: 2 hours
The tour is conducted by the fashion specialists; it is an enjoyable mixture of
history, anecdotes, and trivia associated with fashion. The tour guide will show you both
famous names and introduce you some lesser treasures. You also can go inside the
shops and purchase what you want.
™ Vatican walking tour ( />Duration: 3 hours

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The Vatican is one of the most famous interesting and breathtaking beautiful sites in
the world. The tour will take you to some major attractions as well as some lesser
known spots, and provide you a broad base for understanding the history, architecture,
and politics of the Vatican.
The highlights of the tour include:
- Vatican Museums
- Sistine Chapel

- St. Peter’s Basilica
™ Ancient and Old Rome walking tour
( />Duration: 3 hours
The tour covers all the well known sites of ancient and old Rome including:
- Colosseum (interior visit)
- Roman Forum (interior visit)
- Capitoline Hill
- Trevi Fountain
- Pantheon (interior visit)
- Piazza Navona
3. Hanoi with walking tour
™ Hanoi – A legendary city with significant collections of major cultural and
historical attractions
Hanoi – the beautiful capital of Vietnam strategically lies at the center of the
triangular basin of the Red River. It original named Thang Long (City of the Ascending
Dragon) and was first the capital of Vietnam in A.D.1010. With the 1000 years history
and culture and the topography of many lakes and rivers, Hanoi have many attractions
both cultural, historic and natural ones. And it is very potential for walking tour because
most of these attractions were located closed to others. It means that tourists can visit
these attractions by their feet instead of other kinds of transport
ƒ Mentioned about Hanoi, we can not forget many rich historic attractions such as
Hanoi Old Quarter, Temple of Literature, Ba Dinh Quarter, Flag Tower, Ho Chi Minh
Mausoleum…
Van Mieu – Quoc Tu Giam is a famous historical and cultural relic consisting of the
Temple of Literature and Vietnam’s first University. The Temple of Literature was built
in 1070 in honour of Confucius, his followers, and Chu Van An, a moral figure in
Vietnamese education. Quoc Tu Giam, or Vietnam’s first university, was built in 1076.
It was the first educational school for royal family members, and it was later opened to
talented students. The site preserves historical vestiges of a 1000 years old civilization
such as status of Confucius and his disciples, and ancient construction such as Khue

Van Pavillion, and Worshipping Hall.

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Another attraction which is also very familiar and attractive with tourists who come
to Hanoi is Hanoi Old Quarter. It is a unique antique quarter which represents eternal
soul of the city. In Hanoi Old Quarter, beside traditional buildings, there are cultural,
historic and religious buildings and traditional restaurants. Nowadays, the Old Quarter
still maintains Vietnamese and Asian architecture and creates a complexity of unique
architecture. Two examples of cultural and historic buildings which still remained are
87, Ma May Street (built in XIX century with old traditional architecture) and 38, Hang
Dao Street (original was communal house built in XVII, now has combination of
traditional and modern architecture). Now, in Hanoi Old Quarter, there are walking
streets and night markets which were established to promote walking tour.
ƒ Being a long-standing urban area, Hanoi is also very well-known with its
religious attractions like Quan Su temple, Tran Quoc pagoda, One-Pillar pagoda…
Quan Su Temple was built in the 15th century under the Le dynasty. According to
Hoang Le Nhat Thong Chi, during Emperor Le The Tong’s seign, the Emperor ordered
to construct a building called Quan Su (Embassy) to receive foreign ambassadors to
Thang Long. Because those ambassadors were all Buddhist, they decided to build a
temple on the premises for worship. Today only the temple remains. In 1934, the
General Buddhist Society of Tonkin was founded and choosed as its headquarters.
One-Pillar Pagoda is a historic Buddhist temple in Hanoi. It is regarded alongside
the Perfume Pagoda, as one of Vietnam’s two most iconic temples. The temple is
designed to resemble a lotus blossom, which is Buddhist symbol of purity, since a lotus

blossoms in a muddy pond. In 1954, The French Union forces destroyed the pagoda
before withdrawing from Vietnam after the First Indochina War, it was rebuilt
afterwards.
ƒ Beside those cultural and historic attractions, Hanoi is also proud of its natural
attractions which mostly are beautiful lakes and rivers such as West Lake, Sword Lake,
Truc Bach Lake, Red River…
Sword Lake – the beautiful basket of flowers inside Hanoi, a mirror-like green lake
with Ngoc Son Temple, The Huc Bridge, Pen Tower in the surrounding is a part of the
Red river. Sword Lake used to be called Luc Thuy Lake (or Green Water Lake) since
the water was green all the year round. In 15th century, it was named Hoan Kiem Lake
(Sword Lake) after the legend of Emperor Le Thai To.
Cuisine of Hanoi is also very attractive. It is not only diversified but also simple and
sophisticated, for example Thanh Tri Cuon Cake, Pho, Com (green rice), Bun,… And it
is considered as a attraction to attract tourists come to Hanoi.
™ However, its inner transportation is inappropriate and problematic for
designing walking tours
It will be difficult for a visitor to enjoy a walking tour in Hanoi without an
appropriate transportation system. It cannot argue that because this is a walking tour

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then feet will be the only one means to travel. Besides, a transportation system is
developed to add more conveniences for traveler.
First of all, the most important factor that, in order to walk along a street, is
pavement. In Hanoi nowadays, many streets have a large and nice pavement not only in

using mean but also in the aesthetic mean. However, in the streets that almost every
visitor to Hanoi will walk in maintain a situation of bad pavement, those are Old
Quarters. In the survey we have been conducted, many visitors claimed that pavements
in Old quarters are very narrow; sometimes they have to walk in the road instead of the
pavement.
The road system in Hanoi is the second significant factor. Besides some main roads
for instance Trang Thi, Le Dai Hanh, etc which are very huge, streets in the blocks are
small and crowded. Too many transports circulation around the street make visitors feel
terrible and scared.
In order to travel to the walking streets, travelers need some transports to take them
from their hotels or from airport to Hanoi’s center. Some will be suggested as taxies,
buses, and motor taxies.
Taxies will be the most useful transport. It can be easy to order, able to pick up a
number of people, convenience for changing the route if necessary, cheap by
international standards and a safe way to travel around at night. Average tariffs are
about 10,000d per kilometer.
The bus systems in Hanoi have improved in the past few years but are light years
behind Hong Kong and Bangkok and, in general, buses are not a practical way to get
around town. Even this kind of system is much cheaper but obviously it has more
disadvantages than taxies.
Getting around by motor taxies is easy as long as you don't have a lot of luggage. It
is not a convenience transport for traveler, because they have to negotiate the price
beforehand.
Beside those transports above, traveler can find cyclo, or hide a motorbike or
bicycle to enjoy their moment in Hanoi.
III. RESEARCH METHODOLOGY
In order to fulfill this research, two surveys and one observation were conducted in
two different days and all data colleted are quantitative.
The first survey was carried out on 1 May 2010 from 8.45am to 11.30am around
Sword Lake in the form of personal interviews. One or two researchers interviewed one

tourist and took note what he or she said. In this survey, 17 tourists, both Vietnamese
and foreigners, were randomly chosen to answer various open-end questions ranging
from their motivation to travel, their likes and dislikes in Hanoi, their evaluation about
Hanoi attractions, transportation, and especially about Walking tour. Basing on
experiences from many surveys before, the research group decided to hang on a banner
with slogan “if you love Hanoi, please tell me” to attract tourist’s attention first, then
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asked them to join the survey instead of blocking them on the way and ask for their
cooperation. Furthermore, everyone who participated in the survey received small gift
that is a couple of Vietnamese in traditional dress. As a result, the majority of
interviewees were people who approached us first due to their curiosity and then
expressed their willingness and happiness to take part in the survey. Thus, we got very
good responses from tourists in this survey.
On 11 May 2010, the research group divided into two sub-groups to conduct both a
survey and an observation simultaneously from 4pm to 6 pm. The first sub-group
carried out the survey around Sword Lake and in front of Hapro TIC, a free information
center in Dinh Tien Hoang street in the purpose of figuring out how tourists evaluate the
quality of information system in Hanoi that is one of key factor influencing walking
tours. Once again, a semi-structure interview with open-end questions was used to
collect quantitative data. Especially for the tourists who were out of Hapro TIC, besides
questions relating to general information system in Hanoi, the research group focused
on asking them about their assessment on the quality of information given by this
center. At the end of each interview, respondents were asked to provide their personal
information comprising name, nationality, and email address to make valid references

for the research.
At the same time, another sub-group conducted observation inside Happro Tic
center to evaluate attitude and working style of the staff, facilities and design of the
center. In addition to observing, we also played a role a person who need information
about some destinations in Hanoi to have short interview with the staff so as to evaluate
the quality of information they provided to tourists. Moreover, we also collected many
cards and brochures there to appraise effectiveness of these materials.
Right after each survey and observation, all information collected was entered in
database in order to make deep analysis.
IV. FINDINGS
1. Motivation for traveling to Hanoi
Although most of tourists interviewed are repeated travelers, only one-third of them
have traveled to Hanoi before. However, it is hard for first time tourists to Hanoi to
answer the question why they want to travel to Vietnam generally and to Hanoi
particularly. Some stated that they wanted to be here just for relaxation; some other said
they would like to discover Vietnamese culture and history through their travel. For
those who have visited Vietnam several times before, it is Vietnamese culture, history
and especially Vietnamese people who are very friendly and hospitable that attract them
to come back Hanoi. As one Japanese tourist who has been to Vietnam six times and in
Hanoi three times revealed, he loved Hanoi Old Quarter atmosphere that was hard to
describe by word. Meanwhile, another American journalist who has ever traveled to
Hanoi seven times tenderly looked at the research group and said “I come back here
because of you”. Noticeably, no matter what their motivations are, Hanoi Old Quarter,
Sword Lake, Ho Chi Minh Mausoleum, West Lake, Temple of Literature, and some
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Museums where Vietnamese culture and history are deeply reflected are places that they
have visited or want to visit the best.
2. Likes and dislikes of tourists in Hanoi
Among some common activities that tourists often participate in Hanoi, going
shopping and enjoying Vietnamese traditional food are favorite ones of many
interviewees. They love hanging out Hanoi Old Quarter to watch and purchase small
handicraft souvenirs such as wooden objects, toys, silk clothes, brocades for themselves,
and/or for their families and friends at home. Despite the fact that these products are
very nice and Vietnamese, it is strongly recommended by one tourist that different
shops had better sell different products in order to make shopping experience of tourists
more diverse and exciting. Further, one respondent showed his wish for watching the
hand-made items making process when going shopping in order to learn more about
Vietnamese culture in more creative and exciting way. This can be a good
recommendation for tourism makers to add more value for tourist during their trips. In
terms of food and beverage, the great majority of tourists asked expressed their
preference on traditional Vietnamese dishes; even some gave great praises for authentic
Vietnamese food. Interestingly, one Japanese tourist could name some well-known
Vietnamese food such as pho, spring roll, vermicelli and grilled chopped meat in
Vietnamese. Besides, it is not surprising that every tourist asked stated that they would
like and always come to small family-own shops to enjoy their meals instead of going to
luxury restaurants where Vietnamese taste seems to be weaker than the former.
Attentively, some of them asked showed their good experiences on enjoying food from
street vendors like Vietnamese people often do. In contrast to many foreigners who feel
afraid of eating food sold in the street because of hygiene matter, these tourists
expressed their willingness to expose to very Vietnamese lifestyle. It is quite interesting
that one Greek journalist revealed bread with pâté in the street was his favorite breakfast
everyday in Hanoi.
In addition to some quite popular activities that tourists want to take part in during
their stay in Hanoi, some respondents who are male journalists and engineer, have

special interests in learning more about architecture, particularly French buildings in
Hanoi. This interest possibly pertains to their jobs and genders. Thus, those prefer
spending time walking around Hanoi Opera house and its environs to satisfy their like to
going shopping in Hanoi Old Quarter or in open markets.
However, in addition to several compliments on attractiveness of many beauty
spots, of Vietnamese culture and history, and friendliness of the local people in Hanoi of
tourists, there are some comments on keeping public sanitation in Hanoi because they
saw many litters scatter on the ground. Therefore, Hanoi would be more beautiful if
both everyone is more aware of keeping environment clean and the local authorities
implement stricter regulations to rule their behaviors.

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3. Opinions on walking tour in Hanoi
When being asked about whether they had ever heard or joined in a Walking tour
before, roughly a half of them replied “No” because they seemed to be unclear about
what a walking tour was. Most of them appropriately thought about traveling on foot
without using any kind of transportation during the tour. This reveals that walking tour
appears to be a quite new term for tourists even though they have ever experienced it
many times or were joining it at the time the survey was being carried out. After being
explained shortly and clearly what a walking tour was, a small number of them
expressed their willingness to combine public transportation means with walking in the
trip as provided that they have a good guide. As several tourists complained,
Vietnamese tour guides are now quite bad at both foreign language and tourism
knowledge. For this reason, tourists often rely on their guidebooks and personal maps.

In fact, currently, most of time, foreign tourists travel on foot and sometimes take a taxi
rather than using other public transportation means like bus, cyclos or motorbikes to
travel in Hanoi because of many reasons. Firstly, the traffic in Hanoi is too heavy,
dangerous and different from their home countries for them to travel. Even some
Vietnamese tourists asked also expressed their dislike in traveling by these modes. For
this reason, one tourist suggested that Hanoi should block some streets suitable for
walking in certain holidays in order to give tourists a chance to enjoy their own walking
tours without any disturb of heavy traffics. Besides, one Japanese civil engineer gave a
comment on improving infrastructure to make traveling on road more smoothly.
Moreover, the instruction of each bus routine at bus stops is in Vietnamese only so that
foreign tourists feel very hard to travel by bus. Worthy saying that the poor instruction
in bus stops as well as from the board hung on the bus makes Vietnamese travelers
misunderstand and lost many times. Additionally, one tourist even exclaimed “terrible”
when he was asked about the signpost on the roads because he did not see any signposts
during his stay in Hanoi. Actually, there is the extreme shortage of signposts on the road
not only in multilingual but also in Vietnamese that makes tourists find more difficult in
their trips. It is Vietnamese people who feel confused when looking at the signposts in
Vietnamese because they are simply the names of streets or roads without any arrows
that show directions. Thus, all of the foreign tourists asked stated that they completely
rely on their guidebook and personal map to find the way. However, some tourists who
used taxi to travel complained that they felt dissatisfied because of being differently by
taxi drivers.
In the respect of ideal time and the length of walking tours, the great majority of
tourists asked want to join a walking tour in autumn and spring, especially in the
morning when the weather is cool and fine. A minority of them was willing to travel in
afternoon summer when the sun burns less hot. According to the majority of
respondents, they would like to take part in a walking tour that lasts from 0.5 to 3 hours
per day only. However, some other were willing to participate in a tour that takes 8
hours in maximum or even the whole day starting from the morning until the night.

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Only one out of 17 tourists desires to join a walking tour at night. This is possibly
attributable to the shortage of night activities in Hanoi. Thus, firstly, it is a good idea if
there are different walking tours designed with different themes and itineraries
according to seasonal changes and time in a day in Hanoi. Next, in order to encourage
tourists to take longer walking tour, it is highly recommended that besides famous and
popular water puppetry performance in Hanoi, more entertainment activities bearing
strong Vietnamese characteristics like bamboo singing (ca tru performance), and Xam
singing, traditional music instruments like monochord, Vietnamese two-chord fiddle
can be performed around Sword Lake in certain days under the control of the local
authority to make Hanoi have more distinctive melody. Equally important, some
Vietnamese traditional folk games such as man chess, swinging; walking on stills may
be organized in parks to arouse the image of very traditional Vietnam in the heart of
busy Hanoi. Furthermore, a night walking tour with food and beverage theme will offer
tourists very great nights in Hanoi. In addition to 30% some of tourists asked love
traveling with family and friends, other expressed their want to travel with strangers
who may come from different countries with different languages. There are some
reasons for this. Different from some tourists who like traveling with strangers because
they are confident in speaking some foreign languages; most of respondents show their
willingness to and interest in learning new things from new friends coming from
different cultures. For them, using body language is the best solution. Especially, some
of interviewees wish to have their travel partners are the local people so as to learn more
about Vietnamese people and have better guidance in some cases. Furthermore, except
for one-third of tourists surveyed is reluctant to travel with kids under 10 or the old

people due to their believed that different tastes and health conditions between this
group and them may affect their travel negatively, the majority of tourists expressed
their readiness to travel with such partners.
4. Tourist information is the main drawback for promoting walking tours in Hanoi
™ Guidebook and website are the main tourist information channels before the trip
Among the above problems, the most outstanding issue is about information system
for tourists. Most of the tourists stated that before traveling to Vietnam, they only
obtained needed information about Vietnam from guidebooks. During their journey,
they also utilized their guidebook as a direction tool to find the way to the destinations.
In addition, they also base on other sources of information, for instance their relatives,
friends, and searching on Google. Only few tourists have ever visited Vietnam websites
to find out information, however they did not highly appreciate quality and value of
these websites. According to Steven Bugg, a tourist from Australia who traveled to
Hanoi to visit his relatives, some tourism websites of Vietnam in general and Hanoi in
particular upload too general information about destinations. Moreover the information
is mainly for the purpose of commercial such as selling tours, hotel rooms. Therefore
the information appears too bias to him and he can’t absolutely trust in the information
for the tour. To prove for his statement, we tried visiting some tourism websites of

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Vietnam
such
as
www.dulichvn.org.vn,

www.vietnamtourism.gov.vn,
www.vietnamtourism-info.com, www.vietnam-tourism.com.vn, ,
and also read Vietnam guide book online of Lonely Planet to compare the information
from two sources. Actually, these websites only contain some basic information about
tourist agency, restaurants, hotels, and typical attractions. They lack a very important
part about transportation systems which helps tourists to find the way from the
destination to other destinations on your own. While, the guidebook is possible of
providing more detailed information about how and by what means of transportation
which can help them to travel from this destination to other destination. This information
is particularly important for developing walking tour for self-guided tourists.
™ Provision of tourist information in Hanoi could be improved
During their trips, tourists can base on a variety of sources to search information for
their trips such as signposts, hotels, information centers, tour guides, or local people.
However, in Hanoi, most of these sources have not been developed to serve for walking
tourists effectively.
In term of signposts system, in some famous destinations for walking tour in the
world such as Paris or Romeo, signposts systems are considered as an important
element for the success of these destinations, they are designed and positioned
appropriately for all tourists being able to find their way without difficulty. Mr Cuong,
lecturer of Hanoi University said that when he traveled to Paris, he could find the way
to all destinations by himself just by basing on the direction of the signposts. However,
to Hanoi, signposts system actually is an imperative issue. Mr Steven Bugg claimed that
“It is very terrible, should keep it better”. As well, the other tourists complained that
they rarely saw the signposts on the road; furthermore all of them are in Vietnamese
without translation into English and other languages. Therefore they had to find the way
by their own map and guidebook and sometimes they might loose their ways.
Another tool which tourists can take advantage of asking free information is the
information center. In Hanoi, there are two centers like this: one located in Noi Bai
airport and the other located in Dinh Tien Hoang Street named Happro Tic. However,
when we interviewed to 3 tourists around Hoan Kiem Lake, all of them said that they

have never visited as well heard about the center at the airport. In our subject opinion,
location of this center is not proper due to the reason that when tourists get off their
flights, they have searched enough information to get to their hotel; therefore they want
to come to the hotel immediately for check-in process before doing the other things.
Hence, most of them ignored the center. Whereas, in the center of Hanoi there is only
one center which is located near Hoan Kiem Lake, the other areas such as Ho Chi Minh
mausoleum and West Lake also very popular for tourists haven’t any centers which can
support for tourists to find the information.
About Hapro Tourism Information Center or Hapro TIC (www.ticvietnam.com)
which is established in 2006, it has contributed a big role in providing tourists with free
information and knowledge of Hanoi in particular and Vietnam in general. Hapro TIC

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has two other centers in Da Nang and Ho Chi Minh cities. Hanoi-based Hapro TIC is
mainly composed of an information service section with 2 agents (4 in total with 2 work
shifts), free Internet access section, tour booking services, and Vietnam culture and
tourism books for sale. Besides, Hapro TIC in Hanoi also rent its center to other extra
services including Hanoi Moment’s souvenir boutique, Asiana Travel Mate’s travel
services, Gloria Jean’s Coffees, and currency exchange service by Lien Viet Bank.
Hapro TIC provides free information service assists travelers to find information
and direction faster, which helps develop Hanoi tourism industry. Besides, its good
facilities support travelers to search for information like Internet free access, free maps,
and stocks of various kinds of pamphlets and brochures. Additionally, it also has a
group of English-proficient agents with good behavior, attitude, knowledge and

communication skills. All interviewed customers were quite satisfied with the provided
effective information or service and want to use it again.
Despite all its strengths, Hapro TIC also incurs some problems in its operation
process. English and Vietnamese are the main languages used to assist travelers;
therefore, targeted customers are limited to only Vietnamese, English native speakers
and ESL speakers. Furthermore, four agents in free information section is a modest
number compared to an increasing number of walking travelers to Hanoi.
In addition, this center also faces with problem of outside decoration and location.
The center place is difficult to be recognized among thousands of shops and stalls on
Dinh Tien Hoang Road, while its decoration is not outstanding enough to catch up
tourists. Hence, tourists can mistake it with other shops and ignore them. Even when we
asked a tourist come from Melbourne, Australia – Mr. Greg Woods who stood in front
of the tourism information center, he did not know about this center. The reason he
stood there only because he wants to use free internet of the center to contact with his
relatives. And even us, when we came there to collect information, we also had to spend
some minutes to find this center, because the company’s name board is hang up too high
compare with the view of the viewers; moreover it is hidden by the trees in front of it
which has hampered the service access. Owing to these reasons, when we interviewed
three tourists around Hoan Kiem Lake, none of them know about this center.
Besides Happro Tic, around Hoan Kiem Lake there are also some others small
stores named information center; however, in reality it is only for the purpose of
booking tour but not providing free information for tourists.
The other source of information which tourists can get is from their hotels.
However, the tourist who has asked his hotel to get information said that the hotel just
provided him with general information and they still had to base on the other sources.
This is also a weakness which needs to be improved more for a better tourism
information system in Hanoi to develop walking tour as well as other forms of tours.

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™ Conclusions
Drawing from the findings, there are some problems to develop WT in HN and the
problem of ineffectiveness information is the most outstanding one. In brief,
information system includes these main following problems:
- Shortage of websites about Vietnam and Hanoi tourism with detailed tips and
advice for walking travelers
- Ineffective signposts system both in quality and quantity
- Lack of free information center for walking tourists
- Unqualified tour guide both in foreign languages and tourism knowledge
V. RECOMMENDATIONS
Drawing from all findings above, there are some recommendations to improve the
ineffectiveness of providing information for traveling in Hanoi generally and for
developing walking tour in Hanoi particularly. First, it is highly appreciated if all of
official tourism websites provide more detailed information about traveling in Hanoi to
tourists, especially information related to events, activities that celebrate up coming
1000-year-old Thang Long anniversary.
Second, the large number of signposts with detailed instructions in some popular
foreign languages besides Vietnamese such as English, French, German, Spanish,
Japanese, Korean, Chinese need to be installed in higher density in order to help
travelers locate themselves as well as find the way easily. In addition to signposts, it is a
good idea to put some big map boards in some places which have large spaces like
Tokyo does. Furthermore, it is necessary to set up multilingual instruction boars and
maps at every bus stop to encourage tourists to use public transportation more and more.
Next, both state-owner and private organizations should join hand to establish more
tourism information centers that follow Hapro TIC model around Hanoi, especially in

places where are highly concentrated by tourists such as around West Lake, Temple of
Literature, museums, parks, markets… Further, in addition to professional staff, it is
students who are major in tourism or culture, history from Universities and colleges in
Hanoi could contribute to the success of these centers by work there in form of
internship. More to the point, it is better if the staff in these centers can speak some
popular foreign languages such as French, Spanish, German, Japanese, Korean, Chinese
besides English only because those from these nations constitutes a large proportion in
the total number of tourists to Hanoi now.
Additionally, the Hanoi authority is strongly recommended to require all taxi drivers
to post the tariff up clearly, then regularly examine their odometers as well as strictly
punish lawbreakers to assure the rights and reinforce belief of travelers. Moreover,
information pertaining to taxi price as well as that of other means of public
transportation should be placed both in websites and map boards on the roads.
Equally important, Hanoi should have more rigid regulations for tour guide
qualification. In order to be a tour guide of Hanoi, a person has to receive a certificate

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that demonstrates both his foreign language skills and tourism knowledge. Hanoi may
also establish a forum for tour guides to update information of Hanoi and to learn more
from one another as well.
VI. FOUR SUGGESTED TOUR PROGRAMMES IN HANOI
1. A walk through three religions of Vietnam
Our first suggested itinerary is “Three integrated religions in Vietnam” tour which
introduces history and influences of three main religions in Vietnam. They are

Confucianism, Taoism, and Buddhism. First, tourists gather in front of Temple of
Literature (Confucianism) to discover the first Vietnamese university. Then we move by
bus or bike to West Lake area where we visit Quan Thanh Temple (Taoism) and Tran
Quoc pagoda (Buddhism).
Temple of
Literature
(Confucianism)

Quan Thanh
temple
(Taoism)

Religions in Hanoi have not been totally discovered and studied. This walking tour
can give travelers unique amazing experiences of Hanoi religions’ philosophies and
history. The walking tour will be carried out in the morning or afternoon. Specially
travelers can take rest time for shopping, snack, and entertainment at West Lake area.
2. A night walk in Hanoi’s Old Quarter
The purpose of this walking tour is to enjoy the peaceful, quiet and glistening
atmosphere of Old Quarter’s nightlife and enjoy night dishes in Hanoi, which have
potential for main tourism products of Hanoi. Our tour will have the following itinerary
in order: first night market of Old Quarter (from Dong Xuan market and Hang Ngang
Street to Hang Dao Street), then to Ta Hien Street, Hang Bong Street, Hang Gai Street,
Tong Duy Tan Street and finally Cam Chi Street. Taking part in this itinerary, walking
tourists can go shopping in night market of Old Quarter, and then visit Ta Hien Street,
which is famous for beer bars for foreigners. Afterward, tourists can enjoy Hanoi’s
night nosh on Tam Thuong gate, Hang Gai Street, Tong Duy Tan Street and Cam Chi
Street, which are cuisine streets of Hanoi, and To Tich and Ly Quoc Su Streets. Here
you can enjoy baked cuttle-fish, Pho, fried fermented pork roll, noodle, pickled fruit
juice, etc. It is noted that night market in Old Quarter only open on Saturday and
Sunday. It means that this tour will operate on Saturday and Sunday. The reasons why

we want to suggest this tour because walking tour in night will avoid many problems
like too heavy traffic, dirty dust and vendors which a walking tour in day will suffer. In
addition, in summer, the weather of night is better than that of day.
3. A walking tour for architecture lovers
This walking tour program is intended for people in love with Hanoi architecture
which is a blend of French and Vietnamese. Its time schedule is from 8 a.m. to 8 p.m.

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Tourists will start walking from Sword lake in Dinh Tien Hoang Street, turn to Ly Thai
To Street to visit Hanoi Opera House, then to Ngo Quyen Street where The North
palace (Bac Bo Phu) are situated. Next, tourists travel along Tran Hung Dao Street
where many French-style buildings exist to Phan Boi Chau Street where they can enjoy
delicious lunch in Quan Ngon restaurant. After having lunch, tourists can travel to Dien
Bien Phu Street to visit Hanoi Flag Tower Contemplation, come to Hoang Dieu road
where Thang Long Imperal City is located, and from Phan Dinh Phung road to Hung
Vuong road to visit Presidential palace, Ho Chi Minh Mausoleum, and One Pillar
Pagoda is next door. From Hung Vuong road, tourists turn to Tran Phu street and travel
to Tong Duy Tan Street and Cam Chi Alley by bus or on foot to enjoy dinner. The tour
will end at Cam Chi Alley.
4. A fashion and art themed walking tour in Hanoi
The walking tour is likely to last 3 hours from 8 a.m. to 10 a.m. Walking travelers
will begin the trip at Apricot gallery on 40B Hang Bong Street, which is one of the
capital's most successful galleries gathering the top-ranking artists from different
generations. Next, Tan My Design in 66 Hang Gai Street is a new shopping experience

in Hanoi, which combines feelings of old Hanoi with modern contemporary architecture
and design. Tan My Design features some of Vietnam’s finest designers – Fashion,
Accessories and Home wares as well as Tan My Design’s own brand. Then tourists can
have a chance to visit Khai Silk in 96 Hang Gai Street, one of the Vietnam’s most
successful chains of silk boutiques which specialize in clothes and other silk products.
Afterward, tourists travel to Vietnamese House on 92 Hang Bac Street for a collection
of gems, handicrafts, small ceramics, etc. and the final destination is Furniture gallery
on 8B Ta Hien Street for furniture products. The tour program may include some
services such as English speaking tour guide, shopping, Hanoi’s finest espresso, and
light meals at Tan My Design café. For more information for this walking tour program,
tourists
can
refer
to
these
websites
as
follows:
/> />VII. CONCLUSION
In this research report, we would like to portray the general picture of walking tour
in Hanoi, Vietnam. From the first step, we provided you with our research methodology
and the process of finding. Problems for walking travelers have been deeply analyzed
and synthesized to offer you the most insightful view on Hanoi tourism service
situation, especially its information system and effectiveness. Meticulous
recommendations are also given with the best consideration many factors of information
on websites, street signposts, tour guide qualification, and models of free information
center multiply. Unfortunately, due to the lack of human capacity and time resource, the
report may contain some unavoidable errors or mistakes. To some extent, we, however,
believe that this report can be helpful

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REFERENCES
No author, “Walking tour”, [online]. Available at URL:
(Accessed 10 May, 2010)
No author, “The Classic Walk”, [online]. Available at URL:
(Accessed 10 May, 2010)
No author, “The French revolution walk”, [online]. Available at URL:
(Accessed 10 May, 2010)
No author, “Fashion walks”, [online]. Available at URL:
`

(Accessed 10 May, 2010)

No author, “Vatican walking tour”, [online]. Available at URL:
(Accessed 10 May, 2010)
No author, “Ancient and old walking tour”, [online]. Available at URL:
(Accessed 10 May, 2010)
No author, “Vietnam cultural profile”, [online]. Available at URL:
(Accessed 12 May, 2010)
No author, “Welcome to Tan My Design”, [online]. Available at URL:
(Accessed 12 May, 2010)
No author, “Shopping in Hanoi”, [online]. Available at URL:
/>(Accessed 12 May, 2010)
Tic Tourism information center, “The window to Vietnam”, [online]. Available at URL:

(Accessed 12 May, 2010)
No author, n.d, “Tourist Attractions”, [online]. Available at URL:
(Accessed 10 May, 2010)
Frommer “Introduction to Hanoi”, [online]. Available at URL:
/>1.html (Accessed 10 May, 2010)

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ROLE OF AUDIT IN VIETNAM
Written by: Pham Quynh Anh, Nguyen Thi Thu Phuong (1KT-08)
Nguyen Thi Lien, Le Thi Huyen Trang (2KT-08)
Vu Thi Ngoc (3KT-08), Dang Anh Thu (1KT-08)
Supervisor: Chu Huy Anh
ABSTRACT
Independent or external audit is playing an increasingly important role in Vietnamese
economy. Not only does it strengthen investors ‘confidence in enterprises’ businesses but
independent audit also enhances the managerial effectiveness by providing the managers with
advisory. Based on the secondary data, this research gives an overview of the development and
scale of Vietnamese independent audit industry. Especially, the study focuses on the roles of
independent audit in Vietnamese economy, the achievements it has gained and the drawbacks it
has overcome. From these points, some recommendations are suggested to improve the
independent audit practices in Vietnam.

Part A: Introduction
In recent years, Vietnam’s economy has been rapidly developing with the

integration into the world economy. As a result, the demand of audit in general and
independent audit in particular are increasingly higher and higher. Despite being a new
profession in Vietnam, the number independent auditing firms has been rising over the
years. Their efforts are to bring about transparent financial statements, ensure the
compliance of the laws, and help investors make accurate decisions. Although the
profession is still young and still needs a lot of improvement, independent audit has made
many undeniable contributions to the development of a healthy economy in Vietnam.
Particularly, the purpose of our research is to give a panorama of auditing in
Vietnam with scale, development, competitive advantages and disadvantages of
Vietnamese auditing firms, then analyze the main roles of auditors to the economy and
to other interested parties. Therefore, our research is divided into three main contents:
the overview of Vietnamese independent auditing, the development and roles of
independent auditing in Vietnam, and recommendations to the development of
Vietnamese auditing system in the future.
Part B: Findings
I. Overview of the audit in Vietnam
Audit is a large topic that the research cannot focus on all sides of the field,
therefore, it only concentrate on Vietnam’s external audit, which is getting more and
more interest of public today
1. Overview of independent audit of Vietnam
1.1 Development
Independent audit is one of 3 types of audit classified by subject, which includes
State audit and internal audit. Independent audit is periodic or specific purpose (ad hoc)

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audit conducted by external (independent) qualified accountant(s). Its objective is to
determine, among other things, whether (1) the accounting records are accurate and
complete, (2) prepared in accordance with the provisions of GAAP, and (3) the
statements prepared from the accounts present fairly the organization's financial
position, and the results of its financial operations. Therefore, it is necessary for
businesses in a market economy that is typical of competition. Being aware of the
important role of independent audit in the development of the economy, on May 13
1991 the government decided to establish two independent audit firms, namely Vietnam
audit company (VACO) and Vietnam audit service company(ASC) according to
decision 164-5-TC/QD/TCCB, now Vietnam audit and accounting company (ASSC),
which initiated the independent audit practice in Vietnam. 19 years has seen the
dramatic growth of Vietnamese independent audit in both quantity of firms and auditors
force and range of service.

2200

2500
2000
1500
1000
500
0

622

2000
1500

1234

1500171

108

1000

531

500

34

13
2

0

200
150
100
50
0

N u m b e r o f a u d it
fi r m s

Scale of Vietnamese Independent audit
Num ber of
c e r ti fi e d a u d i to r s

B illio n s V N D

Growth in revenue of Vietnames e
independent audit indus try

Certified auditor
Firm

1991 2001 2005 2009

1991

2005

2009

Year

year
Revenue(billions VND)

Source: VACPA
Figure 1: Growth in revenue of Vietnamese independent audit industry
Figure 2: Scale of Vietnamese Independent audit
Two graphs above illustrate the expansion in scale of Vietnamese independent audit
in terms of revenue and quantity of firms as well as the increase in certified auditors.
1.2 Scale
Top ten audit firms in Vietnam 2009
BDO Vietnam

Mazars
AISC
G.T
AASC
A&C
Deloitte
PwC
E&Y
KPMG

31,805
37,200
39,113
62,134
77,384
89,616
266,324
273,130.41
323,089
333,669
Revenue (million VND)

Source: VACPA

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Currently, independent audit firms are classified into 3 types: 136 limited
companies, 23 member firm of international network, 6 foreign companies, and 6
partnership companies, and vary in scale. While foreign companies account for 55%
market share, the rest firms are small and medium enterprises. In terms of revenue, in
top ten audit firms earning the biggest revenue, 5 of them are foreign companies and 5
ones are member firms of international network.
2. Legal framework for Vietnamese audit practices.
Up till now, legal framework established for ground rules in Vietnamese
independent auditing has consisted of decrees and circulars and regulations of the
government and Ministry of Finance (MOF), Vietnamese standards of auditing as well
as accounting law.
2.1 Decrees, circulars and regulations relating independent audit
The Vietnamese government issued decree 105-2004 and decree 30-2009 to
regulate auditors, audit firms, the validity of audit results, the cases that are required to
be audited and other things relating to independent audit. According to these decrees, in
order for an audit firm to be established and to operate in Vietnam, it must meet the
following requirements:
1) The firm must employ at least 3 auditors holding the auditing license, including
Director or General director. If the firm is a joint-venture firm or a limited liability
company, Director or General director must own at least 10% of chartered capital.
Director or General Director must have 3-year experience of auditing after gaining the
auditing license and must not hold administrative or managerial position in other firms.
2) Within 30 days since obtaining operating license, the audit firm must inform
MOF of the establishment of the auditing firm and the list of auditors employed by the
auditing firm.
3) While operating the firm must have at least 3 full-time auditors. Violating this
condition in 6 consecutive month, the firm must stop provide auditing service.
Besides the above decree, the MOF issued the circular 60/2006 to give the detailed
guideline of standards, conditions to establish and operating of auditing firms.

In addition to decrees and circulars, regulations are imposed to control the quality of
accounting and auditing service and to select the auditing firms to undertake the audit of
the stock issuers, listed companies and securities trading companies.
2.2 Vietnamese standards of auditing
Standards of auditing are basic principles of auditing profession and relations
derived from the auditing process. To date, the MOF has issued 37 standards in 7
batches to offer auditors guidelines and directions to apply.
In response to the development and growing role of independent auditing, the
independent auditing law has built and it is going to be passed by National Assembly in
May 2010.

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3. Pros and cons of Vietnamese auditing
3.1 Competitive advantages of Vietnamese auditing
As the globalization and the integration of Vietnam into the world market,
Vietnamese auditing system has developed as well as massively increasing quantity of
auditing firms. This leads to a fierce competition among auditing firms, especially
between Vietnamese ones and foreign ones in way of involving customers. In one
current statistic, “these foreign firms, Ernst & Young Vietnam, KPMG Vietnam and
PricewaterhouseCoopers, serve many large multinational companies and together with
Deloitte Vietnam, hold a 55 percent market share” (2010, audit giants raise eye-brows
with loss report). Therefore, only residual 45 percent of market share is for domestic
firms, which requires them to make differentiation and build their own brand.
The first superior point is the low fees of auditing services. In the opinions of Bui

Van Mai, Secretary General of the Vietnam Association of Certified Public Accountants
(VACPA), to the same client, foreign firms in Vietnam often charge a very high fee, 10
times to even 20 times as much as local firms do. There are many inverse explanations
about this situation. In terms of positive attitude, local firms can reduce their cost to
charge lower because of the government’s favor and guarantee. Meanwhile, beside tax
obstacle, foreign firms in Vietnam impose a very high price as taking advantage of
reputation from parent companies. However, the others think that owing to auditing
procedure deduction, domestic firms are possibly competitive to multinational firms,
following mistakes in the results. Actually, to kill off local firms, many foreign
companies also keep price below cost, this leads to a loss of VND 96 billion (US 5
billion) of three biggest auditing firms. Therefore, it is undeniable that lower price is a
competitive advantage of Vietnamese auditing firms.
Secondly, local firms also understand domestic market more widely than foreign
ones. It is obvious to see that from the option of target customer of the local ones.
Vietnamese auditing market can be divided into three segments with three main kinds of
client: multinational groups, big invested Vietnamese companies, and small and
medium scale enterprises. Both international accounting firms and foreign auditing
firms choose conglomerates, which have large operation and finance scale. However,
“Vietnamese accounting firms mainly serve Vietnamese companies. Big auditing firms
serve big Vietnamese corporations, while smaller firms serve smaller companies which
do not intend to attract foreign investment” (2010, saigontiepthi, Low fees cause
auditing firms’ losses). Beside the reason of insufficient technique and human resource,
local firms choose this kind of client because they are an expertise in this segment. They
truly understand characteristics of culture, economic and politics, so they can give
auditing services such as financial statements or advisory plans under the Vietnamese
law and the government policy.
3.2 Competitive disadvantages of Vietnamese auditing
Although Vietnamese auditing firms are now confident to compete with foreign
firms, they also have weaknesses that need to be improved. After 15 years of growth,
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the gap between local firms and international firms has been narrower. However,
“According to the Vietnam Association of Certified Public Accountants, local auditing
firms are understaffed as there are only around 1,100 certified auditors in the country
and just 111 of them have international qualifications. On average each auditor has to
audit 46 companies and organizations a year” (2010, audit giants raise eye-brows with
loss report). It means that our firms are in short of quality and professionalism, also
raising difficulty for Vietnamese auditing firms to gain the market share from foreign firms.
Furthermore, one problem is about reputation and prestige. Obviously, international
firms have reached worldwide, so they are very famous and believable. Meanwhile,
local firms are even newly born and developed, and the target market is only domestic
clients, which makes us less competitive. As a result, in the programs out of border,
international firms are prospective.
To improve these main weak points, local firms need to upgrade quality of services,
technique, and human resource. Many firms become members of big international
auditing firms to have support from parent companies. Other firms cooperate to help
each other with holding seminars, workshops of professional skills. It is also the main
way of development in Vietnamese auditing firms for the time going.
II. Role of external audit
The market economy requires all enterprises, which operate in all sectors, must have
accurate, timely, and reliable financial information. All annual results of operation of all
enterprises are reflected on financial statements including: balance sheet, income
statement, cash-flow statement, and presentations of financial statement. Because of
many different causes, the business- owners who are in charge of issuing financial
statements want to conceal the loss or weak points of financial results. Conversely,

those who are interested in financial results and financial situations of enterprises
(investors, shareholders…) want honesty and transparency. Those factors lead to
formation of independent audit companies. The independent audit companies have highly
professional staff to providing reliable information for both internal and external users.
1. For internal users:
Audit plays an important role in operating business of any enterprises of various
types and sizes.
Firstly, the managers of the enterprise need honest and transparent information on
financial reports to decide right actions in all phases of management. It is obvious that
business owners cannot control all the thousands and thousands of financial transactions
happen in the enterprises. Only an audit can provide such information: the receipts of
capital, monitoring and managing all the business activities.
Secondly, independent auditors contribute professional guidance and improve
accounting activities in the companies. All activities, especially financial activities are
the combination of the various specific transactions. Whereas, the regulations and
policies from the government always change in the different period of time. The

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auditors’ comments will help business owners to detect errors and violation of law. It
not only helps businesses limit the risk but also find out potential financial strengths in
the internal business.
Last but not least, audit ensures the transparency of financial information of the
companies. At the present, Vietnam is implementing open door policy, multilateral
investment both not only in domestic but also oversee so the government is very

interested in attracting investments from abroad (direct and indirect). These foreign
investors always require audited financial statements to evaluate exactly the financial
situation of the companies, which they intend to invest. It is said that the transparency is
the most valuable asset to the enterprise itself. When a company can be trusted with by
investors, business partners, it will create better conditions for raising capital, finding
the potential business partners, obtaining bank loan, etc.
2. For investors
Transparency in financial reporting is extremely important especially to investors.
Investors make investing decisions based on financial reporting of the companies.
Transparency of the financial statements is essential for financial decision making of
investors. The more transparent information investors get the less risk they can
encounter. Investors would make noise if they rely on dubious financial statements.
It can be argued that one of the most reliable resources for investors is independent
audit. The main purpose of an audit is to enhance the transparency of financial situation
and management system by providing written reasonable assurance from an
independent source. It should provide a “true and fair view” of financial statements in
accordance with an accounting standard.
In the process of preparing and declaring financial information, there are a lot of
problems arising such as benefit contradictions and differences in information using
objectives. Those factors lead to lack of reliability and certainty in accounting
information. In fact, a lot of companies intentionally make financial statement beautiful
by “cooking books” to attract investment or capital. The reason for this practice is that
the company is under pressure to achieve the objectives and plans of revenues, profits or
maintain market shares. To create profitable figures, they would find many ways to
overstate revenues and assets, understate expenses and liabilities, or make improper use
of reserves. This is not too difficult to implement because the accounting standards are
flexible, allowing the application of various accounting methods and many professional
assessment of the subjective view of the managers. Some common practices the
companies often abuse are transactions hiding, accounting standard variation or timing
obscurity and so on. The “create” practice is quite difficult to be detected by investors,

because investors normally do not have adequate level of profession to understand
financial information. Obscure statements also hide the level of debt, thereby also
hiding potential bankruptcy of the company. Even, in many cases, it is difficult to
examine whether accounting information is right or wrong. Therefore, investors really
need professionalism and credibility from the third party-independent audit.

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Héi nghÞ khoa häc Sinh viªn Khoa Qu¶n trÞ kinh doanh - Du lÞch

Th¸ng 5 - 2010

In recent years, due to rapid economic growth, there are more and more commercial
and financial frauds in Vietnam. Although these fraudulent were not as serious as the
cases of other countries, they have had negative impact on Vietnam economy and
created bad publicity on Vietnamese companies especially the ones listed on the stock
market. According to Stox.vn statistics, as of 20.4.2009, of 357 listed companies, at
least 194 companies have a difference of business results before and after auditing. For
many companies, difference between business operating results was quite large (over
10%). Some typical example can be mentioned are financial fraud of Bong Bach Tuyet
Company, Bien Hoa Join-stock company- Bibica, and the latest case come from
Vinaconex with 263,292 billion VND difference between before and after auditing
financial statement. In this situation, the role of audit becomes more and more important.
In summation, independent audit plays an important role in public and investing
community. It helps to ensure the transparency of financial information, which is crucial
for investment decision. It also contributes to the consistency of economic growth.
III. Achievements and scandals of Vietnam’s audit
1. Achievements
1.1 Establishment of the Vietnam Association of Certified Public Accountants

(VACPA)
The Vietnam Association of Certified Public Accountants (VACPA) is an
organization of practicing auditors in Vietnam. Before VACPA’s establishment on 15
April 2005, the Ministry of Finance directly manages and operates all auditing
activities. The foundation of the association meets the development requirements of
accountancy profession in Vietnam. The objectives of VACPA are to maintain and
develop accountancy profession, improve quality of accounting, auditing and financial
advisory services in Vietnam through training technical update courses, professional
ethics and service quality control, information exchange for its members, as well as to
integrate with other associations in the region and all over the world.
1.2 Promulgation of ethical standards in Accounting and Auditing practice
Standard of morality is a sensitive concept of any industry existing in society, in the
field of accounting and auditing this standard is extremely important and required high
level. According to Ms. Trinh Hong Nguyet, General Secretor of Vietnam Association
of Certificated Public Accountants (VACPA), the Standard of morality is built to bring
the independence, objective, prudence, and confidentiality. Declared in December 1,
2005, the principles are the first official correspondence, which consists of a variety of
rules and guidelines applying the standards of morality for the accountants as well as
auditors in order to make the profession of the auditing in Vietnam.
1.3 The transformation of management model and ownership of auditing
enterprise
The decree 105/2005/NP-CP on independent auditing has exposed some
inadequacies. As a result, the Prime Minister issues the decree 113/2005/ND-CP that

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