A Timetric briefing service

PKF Vietnam targets rapid post-crisis revenue growth

21 December 2009 by Nicholas Moody

PKF Vietnam is planning for rapid revenue increases following its promotion to full membership status as the country’s economy looks for a quick turnaround from the financial crisis.

PKF International promoted its Vietnamese member from correspondent to full membership status last month after a two year process to meet the network’s audit quality control standards.
The firm has six partners, all trained at BDO Vietnam, and 95 staff in its Hanoi, Ho Chi Minh City and Da Nang offices. PKF Vietnam’s most recent fee income was VND14 billion ($751,702).

PKF International liaison partner Pham Tien Hung said the firm wants to become a top ten firm within the next three to five years. He currently ranks it as the 15th-largest firm in the country.

PKF Vietnam has set itself aggressive targets, aiming for about 35 percent growth per annum over the next three years with the goal of tripling its current size within five years.

The Vietnam Association of Certified Public Accountants estimated in 2008 the total revenue of all accounting firms in Vietnam was about $100 million. This is split between about 26 international network or association member firms and the Big Four.

The public accounting industry in Vietnam is not large due to the problems with the current legal framework, according to Hung. However, he expects it to develop quickly in the near future once the legal framework has been improved and the country recovers from the financial crisis.

“We think the industry will grow faster in the future,” said Hung.

The firm provides audit and assurance services which make up about 80 percent of its revenue, tax services (9 percent) and consulting, such as valuation, bankruptcy and M&A services, accounts for 11 percent. Hung said this year PKF Vietnam and PKF Malaysia have established a joint venture in Vietnam to provide corporate finance services, targeted diversification of services and promoting growth.

PKF Asia-Pacific regional director Stephen Darley said the admission complemented the balance of PKF member firms across the Southeast Asian region.