Digital transformation in FDI enterprises: The crucial role of Lawyers and Accountants

Digital transformation is becoming an inevitable trend in global business operations, especially for foreign direct investment (FDI) enterprises in Vietnam. In this context, the role of lawyers and accountants is increasingly important to ensure compliance with legal regulations, optimize business operations, and mitigate legal risks.

Digital Transformation in FDI Enterprises

Digital transformation in FDI enterprises involves the application of technology to management, production, and business activities. Key digital transformation trends include:

· Digitizing documents and operational processes: Reducing paperwork, utilizing electronic contracts, and digital signatures.

· Applying artificial intelligence (AI) and big data analytics: Leveraging data analysis to optimize business strategies.

· Using modern accounting and financial software: Supporting tax reporting, financial statement preparation, and internal control.

The Role of Lawyers in Digital Transformation

1. Ensuring Legal Compliance

Lawyers play a critical role in advising and ensuring businesses comply with legal regulations related to digital transformation, including:

· Enterprise and investment laws: Guiding FDI enterprises through legal procedures when changing business models.

· Electronic transactions and digital signatures laws: Ensuring the legality and validity of electronic contracts and invoices.

· Personal data protection regulations: Assisting businesses in complying with customer data security requirements under Decree 13/2023/ND-CP on personal data protection.

2. Preventing Legal Risks

· Lawyers help businesses identify risks related to intellectual property, privacy, and cybersecurity.

· Advising companies on developing internal policies that align with Vietnamese laws and international standards.

· Supporting dispute resolution related to contracts, data, or legal liabilities.

The Role of Accountants in Digital Transformation

1. Implementing Financial Technology

· Accountants assist FDI enterprises in adopting accounting software, ensuring financial data is digitized and processed accurately.

· Utilizing modern financial analysis tools to support business decision-making.

2. Ensuring Compliance with Accounting and Tax Regulations

· Digital transformation must comply with the Accounting Law 2015 and the Tax Administration Law 2019.

· Accountants ensure financial reports are prepared according to Vietnamese Accounting Standards or IFRS if adopted by the FDI enterprise.

· Assisting businesses in fulfilling e-tax obligations, ensuring timely tax declaration and payment.

3. Financial Control and Fraud Prevention

· Accountants play a key role in internal control, detecting and preventing financial fraud.

· Monitoring transparency in digital transactions and ensuring the legality of financial flows within the enterprise.

Conclusion

Digital transformation presents numerous opportunities but also legal and financial challenges for FDI enterprises. Lawyers and accountants play indispensable roles in ensuring legal compliance, optimizing financial management, and mitigating risks. Businesses should proactively collaborate with legal and financial experts to implement digital transformation effectively and sustainably

Written: Pham Uyen Thy 

Date: 14/02/2025