China: Regulatory tightening meets opportunity
China’s accounting sector is undergoing a rapid evolution, marked by regulatory enforcement, digital innovation, and ESG alignment. Mandatory ESG disclosure begins in 2026, and capital markets have been revitalised through the STAR Market's new Growth Tier. (STAR: China’s Science and Technology Innovation Board—a stock exchange platform under the Shanghai Stock Exchange that focuses on high-tech and strategically emerging industries.)
Cathy Zhang
Cathy Accounting Firm
“The growth in demand is now coming from areas such a tech starts and inbound Foreign Direct Investment advisory services, which are growing 25% year on year,” says Cathy. “Niche services are commanding 30% to 50% higher fees than standard audits.”
Low-cost automation is putting pressure on traditional services like bookkeeping and tax compliance. While audit remains steady due to legal requirements, competition and fee compression are widespread, especially among SMEs and SOEs.
Chinese firms are also seeing increased demand for cross-border M&A, international tax planning, and overseas IPO support. “This trend aligns with China’s push for global economic integration and the need for professional services to mitigate regulatory and operational challenges abroad,” notes Cathy.
Talent shortages are also acute, particularly for professionals with expertise in international standards and analytics. But firms that can adapt are well placed to grow, particularly in cross-border services, green finance, and digital transformation.
Vietnam: Aligning reforms with global standards
Vietnam is pushing through reforms in tax, accounting, and enterprise law to attract investment and integrate more deeply with global markets. New rules on audit rotation, IFRS adoption, and the establishment of international financial centres are reshaping expectations. Pham comments:
Pham Thi Huong
Vietnam Auditing and Valuation Company Limited (AVA)
“Customer demand is stable in growth, but changeable in nature. FDI enterprises and large corporations increasingly require specialised accounting services, such as preparing financial statements under international standards (IFRS), tax advisory, transfer pricing, risk management and accounting data analysis.
SMEs remain the main customer group but primarily seek low-cost outsourced accounting services. Public sector clients and state-owned enterprises are showing increased demand due to financial standardisation requirements, especially in the context of converting public service units into companies.”
According to Pham, fee pressure is high, particularly in outsourced services.
“There is intense price competition among small and medium-sized service providers, particularly in outsourced accounting. Many firms are accepting price cuts to retain clients in the short term, leading to reduced profit margins, while clients are increasingly comparing pricing details and demanding additional value-added services without increasing their budgets. This is putting a lot of pressure on accounting firms, who must invest more in automation and process standardisation to reduce costs and maintain profitability.”
Pham also highlights the staffing challenges local firms face.
“The supply of entry-level accountants is large, but they often lack analytical, communication and language skills. Accountants with experience in IFRS, international taxation, M&A or ERP systems are rare and in high demand and it is a challenge to recruit for mid- to senior-level positions. Salaries are just not competitive enough compared to the finance–banking sector, work pressure is high, and training opportunities are limited.”
Outlook: Navigating complexity through capability
China and Vietnam are both managing growing pains—balancing regulatory pressure with rising client expectations. For firms across the region, success will lie in specialisation, strategic talent management, and embracing change across both compliance and advisory services.