PKF Vietnam aims for rapid growth1 December 2009 by Nicholas Moody
PKF Vietnam is planning for rapid revenue growth 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 member last month after a two-year process to meet the network’s audit quality control standards.
The firm has six partners, who 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 VND14,000 millon ($766,000).
PKF International liaison partner Pham Tien Hung said the firm wants to become a top 10 firm within the next three to five years. He currently ranks PKF Vietnam as the 15th largest firm in the country.
PKF Vietnam has set aggressive targets, aiming for 35 percent growth per year over the next three years. The goal is for the firm to triple in size in five years.
The Vietnam Association of Certified Public Accountants estimated the total revenue of all accounting firms in Vietnam was about $100 million in 2008. This is split between the Big Four and 26 international mid-tier network and association member firms.
Vietnam’s public accounting industry is not large due to the problems with the current legal framework, according to Hung. However, he expects it to develop in the near future once the legal framework has been improved and the country recovers from the financial crisis.
PKF Vietnam’s Da Nang office was established late last year when it took over a small local CPA firm, but Hung said it is hoped that after three years the firm will grow with the economic development of Vietnam’s central region.
The firm provides audit and assurance services, which make up about 80 percent of its revenue, tax services (9 percent) and consulting (11 percent), which includes services such as valuation, bankruptcy and M&A services. This year PKF Vietnam and PKF Malaysia also established a joint venture in Vietnam to provide corporate finance services.
PKF Asia Pacific regional director Stephen Darley said the admission complemented the balance of strong PKF member firms across the South-East Asia region.