--- title: "The Balance Sheet: How to Read Assets and Liabilities in Vietnam" description: The balance sheet reflects assets and claims at a point in time. At year-end 2023, Vinamilk held 52,673 billion VND in assets matching liabilities and equity. url: https://ginity.vn/en/blog/reading-balance-sheet-vietnam canonical: https://ginity.vn/en/blog/reading-balance-sheet-vietnam markdown: https://ginity.vn/en/blog/reading-balance-sheet-vietnam.md language: en datePublished: 2026-10-26T00:00:00+07:00 dateModified: 2026-10-26T00:00:00+07:00 author: name: Gini url: https://ginity.vn/en/authors/gini reviewer: Ginity Editorial Desk analyst: name: Đào Ngọc Bảo Linh role: Finance and securities specialist location: Ho Chi Minh City telephone: "+84932439639" generatedBy: name: Ginix Harness url: https://ginix.vn desk: id: learn name: Learn investing url: https://ginity.vn/en/learn tickers: - VNM sources: - name: National Legal Database url: https://vbpl.vn/botaichinh/Pages/vbpq-toanvan.aspx?ItemID=66801 title: Enterprise Accounting System under Circular No. 200/2014/TT-BTC - name: National Legal Database url: https://vbpl.vn/TW/Pages/vbpq-toanvan.aspx?ItemID=137176 title: Asset Loss Provisioning Framework under Circular No. 48/2019/TT-BTC - name: Ho Chi Minh Stock Exchange url: https://www.hsx.vn/vi/tin-tuc/cong-bo-thong-tin title: HOSE Listed Company Corporate Disclosure Portal - name: State Securities Commission url: https://congbothongtin.ssc.gov.vn title: Public Company Information Disclosure System IDS - name: Vinamilk url: https://www.vinamilk.com.vn/investor/reports/financial title: Consolidated Audited Financial Statements 2023 - name: Vinamilk url: https://www.vinamilk.com.vn/bao-cao-thuong-nien/bao-cao/2023/chap6.html title: "Annual Report 2023: VAS Financial Statements" publisher: Ginity attribution: 'Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content.' disclaimer: "Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources." usageTerms: https://ginity.vn/ai.txt --- # The Balance Sheet: How to Read Assets and Liabilities in Vietnam > The balance sheet reflects assets and claims at a point in time. At year-end 2023, Vinamilk held 52,673 billion VND in assets matching liabilities and equity. Gini · Learn investing · 2026-10-26 · https://ginity.vn/en/blog/reading-balance-sheet-vietnam _Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_ ## Key takeaways - According to fundamental accounting principles, 100% of company assets always equal total liabilities plus shareholders' equity at any reporting date. - As of December 31, 2023, Vinamilk (VNM) reported total assets of 52,673 billion VND, funded by 35,026 billion VND in equity and 17,647 billion VND in liabilities. - The financial debt to total assets ratio of VNM stood at 16.1% in 2023, reflecting a conservative financial structure with low leverage risk. - Circular 200/2014/TT-BTC mandates segregating short-term and long-term assets around a 12-month operating cycle to measure liquidity accurately. ## 1. What the balance sheet shows and the fundamental accounting equation In the Vietnamese corporate accounting framework, the [balance sheet](/en/glossary/balance-sheet) is a summary financial statement reflecting the aggregate value of all economic assets controlled by an enterprise and the corresponding sources of capital funding those assets at a specific moment in time. This reporting date is typically the final day of a fiscal quarter (March 31, June 30, September 30) or the end of the fiscal year (December 31). The statement functions as a financial snapshot, enabling analysts to evaluate the capital foundation of a business before assessing its operating earnings. Under Circular 200/2014/TT-BTC issued by the Ministry of Finance, the structural architecture of the balance sheet rests on the fundamental accounting equation: $$\text{Total Assets} = \text{Total Liabilities} + \text{Shareholders' Equity}$$ According to fundamental accounting principles, 100% of company assets always equal total liabilities plus [shareholders' equity](/en/glossary/shareholders-equity) at any reporting date. See the full text at [National Legal Database](https://vbpl.vn/botaichinh/Pages/vbpq-toanvan.aspx?ItemID=66801). Every physical, financial, or intangible resource deployed by the corporation originates from two distinct funding channels: credit extended by external creditors (liabilities) or capital contributed and accumulated by equity shareholders (equity). The balance sheet connects directly with the other two core financial statements. Closing cash and cash equivalents form the terminal point of the cash flow statement, while retained earnings within equity represent cumulative net profits from the income statement, net of distributed shareholder dividends. This structural tie means that any movement on the income statement or cash flow statement ultimately leaves an exact trace on the balance sheet at the end of the reporting cycle. When an enterprise generates accounting profit, that surplus either expands cash holdings, funds inventory accumulation, reduces outstanding bank borrowings, or compounds within retained equity reserves. Under Vietnamese Accounting Standards (VAS 21), fixed assets, property, and plant equipment are recorded according to historical cost principles minus accumulated depreciation, rather than regular fair value markups. Consequently, book values reflect historic cash outlays rather than immediate liquidation proceeds. Land use rights acquired decades ago, for example, remain on the balance sheet at their historical cost less statutory amortization, often diverging from prevailing commercial real estate market prices. Commercial banks present assets by descending liquidity rather than current versus non-current categories, but industrial and trading enterprises must strictly observe the 12-month classification threshold. Corporate financial analysts frequently distinguish between operating assets and non-operating financial assets. Operating assets comprise working capital balances, production machinery, and commercial trademarks necessary for generating daily sales. Non-operating assets represent surplus liquidity, such as term bank deposits and speculative financial investments, which generate standalone interest or dividend income without directly touching factory production lines. When progressing through the [reading financial statements](/en/learn/financial-statements) curriculum, investors analyze the balance sheet across two linked components: 1. **Assets:** Economic resources controlled by the entity that are expected to generate future economic benefits. Under Circular 200/2014/TT-BTC, assets are divided into short-term assets (expected to be realized, sold, or consumed within 12 months or a normal operating cycle) and long-term assets (realization period exceeding 12 months). Items appear in order of descending liquidity, beginning with cash, bank deposits, accounts receivable, and inventory, moving down to tangible fixed assets, long-term investments, and construction in progress. Tangible fixed assets such as production machinery and dairy processing factories are distinguished from intangible assets such as enterprise software licenses and patents, with cumulative depreciation presented as negative deductions below historical gross cost. 2. **Liabilities and Equity:** Capital claims establishing legal rights over corporate assets. Liabilities encompass present obligations arising from past transactions that require settlement through outflows of cash or other resources. Shareholders' equity represents the residual interest in corporate assets after deducting all creditor claims. It reflects the capital cushion protecting debt holders against operating losses. ## 2. How to read assets and liabilities using Vinamilk 2023 audited figures To demonstrate practical balance sheet analysis, we examine the audited consolidated financial statements for fiscal year 2023 of Vietnam Dairy Products Joint Stock Company (ticker: VNM), listed on the Ho Chi Minh Stock Exchange (HOSE). See the full text at [Vinamilk](https://www.vinamilk.com.vn/investor/reports/financial). According to the independent audit report prepared by KPMG Limited, as of December 31, 2023, Vinamilk reported total assets of 52,673 billion VND, representing an increase of 4,190 billion VND compared to 48,483 billion VND recorded at December 31, 2022. The table below outlines the primary assets and liabilities categories of Vinamilk across both fiscal year-ends: | Balance sheet item (Unit: Billion VND) | December 31, 2022 | December 31, 2023 | 2023 Share (%) | | --- | --- | --- | --- | | **A. SHORT-TERM ASSETS** | **31,560** | **35,936** | **68.2%** | | 1. Cash and cash equivalents | 2,300 | 2,912 | 5.5% | | 2. Short-term investments (bank deposits) | 17,414 | 20,137 | 38.2% | | 3. Short-term trade accounts receivable | 6,009 | 6,096 | 11.6% | | 4. Net [inventories](/en/glossary/inventory) | 5,538 | 6,128 | 11.6% | | 5. Other short-term assets | 299 | 663 | 1.3% | | **B. LONG-TERM ASSETS** | **16,922** | **16,737** | **31.8%** | | 1. Fixed assets (gross cost less depreciation) | 11,758 | 12,185 | 23.1% | | 2. Other long-term assets (prepayments, associates) | 5,164 | 4,552 | 8.7% | | **TOTAL ASSETS** | **48,483** | **52,673** | **100.0%** | | **C. LIABILITIES** | **15,666** | **17,647** | **33.5%** | | 1. Short-term liabilities (financial debt: 8,218) | 15,357 | 17,139 | 32.5% | | 2. Long-term liabilities (financial debt: 238) | 309 | 509 | 1.0% | | **D. SHAREHOLDERS' EQUITY** | **32,817** | **35,026** | **66.5%** | | 1. Share capital (contributed charter capital) | 20,899 | 20,899 | 39.7% | | 2. Investment and development fund | 5,253 | 6,164 | 11.7% | | 3. Undistributed cumulative profit after tax | 3,824 | 3,926 | 7.5% | | 4. Non-controlling interests and other reserves | 2,841 | 4,037 | 7.6% | | **TOTAL LIABILITIES AND EQUITY** | **48,483** | **52,673** | **100.0%** | Source: Audited consolidated financial statements for fiscal year 2023 of Vietnam Dairy Products Joint Stock Company (VNM), audited by KPMG. According to reported figures in Vinamilk's 2023 audited statements, short-term assets dominated the asset base at 35,936 billion VND, representing 68.2% of total assets. A defining characteristic of Vinamilk's liquidity structure is its large reserve of cash and interest-bearing term deposits. Liquid funds combining cash and cash equivalents (2,912 billion VND) with held-to-maturity short-term investments (20,137 billion VND) totaled 23,049 billion VND, comprising 43.8% of aggregate assets. This cash buffer provides stable net financial interest income and guarantees operational liquidity during commodity price shocks. Regarding operational working capital, Vinamilk reported short-term trade receivables of 6,096 billion VND and inventories of 6,128 billion VND. On the short-term liability side, trade payables to suppliers stood at 3,806 billion VND. Net working capital, defined as short-term assets minus short-term liabilities, reached positive 18,797 billion VND (35,936 minus 17,139). This substantial surplus confirms that permanent equity capital finances short-term working needs, shielding operations from sudden credit contractions. According to audited figures, at the reporting date of December 31, 2023, retaining 3,806 billion VND in supplier payables with zero interest expense demonstrated strong commercial bargaining power with dairy raw material vendors. This working capital dynamic allows the enterprise to finance receivables and stock holdings largely through trade credit provided by partner supply chains. On the funding side, Vinamilk reported total shareholders' equity of 35,026 billion VND at December 31, 2023, underwriting 66.5% of total corporate assets. The equity structure contained 20,899 billion VND in contributed charter capital, while accumulating 6,164 billion VND in investment development funds and 3,926 billion VND in undistributed profit after tax. This internal capital accumulation illustrates a conservative financial policy that funds automated dairy farms without equity dilution. By funding long-term factory equipment out of retained corporate cash flow, the company avoids relying on speculative debt financing. See the full text at [Vinamilk Annual Report 2023](https://www.vinamilk.com.vn/bao-cao-thuong-nien/bao-cao/2023/chap6.html). According to Vinamilk's 2023 audited financial report, total liabilities amounted to 17,647 billion VND, making up 33.5% of total capital resources. Short-term [financial debt](/en/glossary/financial-debt) stood at 8,218 billion VND within 17,139 billion VND of short-term liabilities. Long-term liabilities recorded 509 billion VND, of which long-term borrowings from credit institutions stood at 238 billion VND. According to Ginity calculations based on the 2023 audited statements, total financial debt (short-term 8,218 plus long-term 238) was 8,456 billion VND. The financial debt to total assets ratio of VNM stood at 16.1% (8,456 divided by 52,673). This indicates a conservative leverage stance relative to consumer manufacturing peers on HOSE. According to Ginity calculations, Vinamilk's current ratio (short-term assets divided by short-term liabilities) stood at 2.10 times at December 31, 2023 (35,936 divided by 17,139). Excluding 6,128 billion VND in inventory, the quick ratio registered at 1.74 times at year-end 2023 ((35,936 minus 6,128) divided by 17,139). The cash ratio reached 1.34 times ((2,912 plus 20,137) divided by 17,139), proving that Vinamilk possessed 1.34 VND of cash and liquid deposits for every 1 VND of immediate short-term obligations due. ## 3. Three common balance sheet pitfalls for individual investors When examining balance sheet disclosures, retail investors frequently encounter structural misinterpretations regarding asset quality and leverage risk: ### Equating asset expansion with operating strength A common mistake is assuming that double-digit asset growth automatically reflects corporate prosperity. According to standard accounting principles, expanding balance sheet footings indicate worsening operational health if growth is driven by uncollected [trade accounts receivable](/en/glossary/accounts-receivable) or stale inventory. Loose credit terms extended to distressed distributors inflate nominal assets while generating no cash inflows. According to Circular 48/2019/TT-BTC issued by the Ministry of Finance, overdue receivables past 6 months to under 1 year require a 30% bad debt provision, 1 to 2 years require 50%, 2 to 3 years require 70%, and periods exceeding 3 years demand a 100% write-off. Companies that delay booking mandated credit loss provisions overstate net carrying values relative to recoverable cash value. A similar distortion arises when inventory net realizable value falls below historical cost without inventory impairment reserves. If unsellable finished dairy goods or raw imported milk powders spoil, carrying them at historical cost misleads readers about true asset liquidity. See the full text at [National Legal Database](https://vbpl.vn/TW/Pages/vbpq-toanvan.aspx?ItemID=137176). ### Overlooking asset-liability maturity mismatches Sound capital structure management requires long-term capital (equity and long-term borrowings) to finance long-term assets. A dangerous practice in capital-intensive sectors is rolling over short-term bank credit lines under 12 months to fund multi-year factory construction or land acquisition with 3-year to 5-year payback cycles. According to cash flow management principles, long-term assets cannot generate immediate operating cash to repay short-term principal notes. When domestic credit quotas tighten or commercial banks pause revolving credit lines, entities suffer severe refinancing pressure due to an inability to liquidate incomplete capital projects. Analysts track net working capital to identify this maturity mismatch early. When net working capital turns negative, short-term debt exceeds short-term assets, indicating that short-term bank loans fund illiquid fixed property. This structure leaves the firm exposed to sudden lending rate revisions and bank roll-over refusals during periods of monetary tightening. ### Ignoring off-balance-sheet liabilities and commitments The balance sheet displays recognized contractual debt liabilities, but omits debt repayment guarantees provided to affiliates, long-term operating lease commitments, and pending civil litigation damages. According to Circular 200/2014/TT-BTC, material contingent liabilities must be described within the Notes to the financial statements. Analysts must read the footnotes alongside primary statements to identify conditional guarantees capable of becoming formal liabilities. Because Vietnam has not yet mandated IFRS 16 rules that capitalize operating leases into balance sheet debt and right-of-use assets, long-term retail store leases and warehouse commitments remain entirely off the main balance sheet under current VAS rules. For goodwill originating from corporate acquisitions, Vietnamese rules require systematic amortization against administrative expenses over a maximum period of 10 years, steadily depreciating recognized intangible assets and reducing equity buffers across future periods. ## 4. Where to find audited statements on HOSE and corporate portals Original financial filings can be retrieved directly from regulated public disclosure systems: 1. **Exchange Disclosure Portals:** The company disclosure portal at [Ho Chi Minh Stock Exchange](https://www.hsx.vn/vi/tin-tuc/cong-bo-thong-tin) and Hanoi Stock Exchange ([hnx.vn](https://hnx.vn)) provides official quarterly reports, semi-annual reviews, and annual audited packages. See the full text at [Ho Chi Minh Stock Exchange](https://www.hsx.vn/vi/tin-tuc/cong-bo-thong-tin). 2. **State Securities Commission Reporting Portal:** The IDS disclosure portal at [State Securities Commission](https://congbothongtin.ssc.gov.vn) maintains regulatory archives for public issuers trading across HOSE, HNX, and UPCoM markets. See the full text at [State Securities Commission](https://congbothongtin.ssc.gov.vn). 3. **Issuer Investor Relations Portals:** Public companies publish audited reports, annual reports, and shareholder assembly resolutions bearing auditor endorsements in original PDF formats. See the full text at [Vinamilk](https://www.vinamilk.com.vn/investor/reports/financial). Under disclosure standards established by Circular 96/2020/TT-BTC, public companies must publish audited annual financial statements within 90 days following fiscal year-end (no later than March 31). Quarterly statements must appear within 20 days post quarter-end (extended to 30 days for consolidated groups). When reviewing annual filings, analysts follow a systematic three-stage inspection sequence. First, verify the independent auditor's report to confirm an unmodified opinion. Second, inspect the balance sheet to assess working capital buffers and net debt positions. Third, cross-reference material balance sheet lines with corresponding disclosure notes to verify debt covenants, bank pledges, and inventory valuation policies. Step-by-step verification of reported numbers: - **Checking on HOSE:** Navigate to the disclosure section at [Ho Chi Minh Stock Exchange](https://www.hsx.vn/vi/tin-tuc/cong-bo-thong-tin), submit ticker `VNM`, select 2023 Financial Statements, and open the audited consolidated PDF bearing KPMG signatures. - **Checking on the SSC Portal:** Open the public filing system at [State Securities Commission](https://congbothongtin.ssc.gov.vn), select the HOSE exchange, enter ticker `VNM`, and select Annual Consolidated Financial Statements to view regulatory filings. - **Checking on the Vinamilk IR Portal:** Access the financial reports section at [Vinamilk](https://www.vinamilk.com.vn/investor/reports/financial), select fiscal year 2023, and download the audited consolidated financial statement to verify asset, debt, and equity line items. Having evaluated asset structures and funding sources, investors can proceed to the second module in the [reading financial statements](/en/learn/financial-statements) course to examine how corporations transform these resources into net revenue and operating margins on the income statement. Analysts can also utilize [Ginity financial analysis tools](/en/tools) to monitor balance sheet ratios and leverage metrics across all listed equities. ## Sources - National Legal Database: [Enterprise Accounting System under Circular No. 200/2014/TT-BTC](https://vbpl.vn/botaichinh/Pages/vbpq-toanvan.aspx?ItemID=66801) (22/12/2014) - National Legal Database: [Asset Loss Provisioning Framework under Circular No. 48/2019/TT-BTC](https://vbpl.vn/TW/Pages/vbpq-toanvan.aspx?ItemID=137176) (08/08/2019) - Ho Chi Minh Stock Exchange: [HOSE Listed Company Corporate Disclosure Portal](https://www.hsx.vn/vi/tin-tuc/cong-bo-thong-tin) (24/10/2026) - State Securities Commission: [Public Company Information Disclosure System IDS](https://congbothongtin.ssc.gov.vn) (23/10/2026) - Vinamilk: [Consolidated Audited Financial Statements 2023](https://www.vinamilk.com.vn/investor/reports/financial) (28/03/2024) - Vinamilk: [Annual Report 2023: VAS Financial Statements](https://www.vinamilk.com.vn/bao-cao-thuong-nien/bao-cao/2023/chap6.html) (28/03/2024) --- _Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content._ _Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources._