FINANCIAL REPORTING TRANSPARENCY, INDEPENDENT AUDIT, AND FDI ATTRACTION INTO THANH HOA’S STARTUP ECOSYSTEM

Abstract

The study assesses the impact of financial reporting transparency and independent audit on FDI attraction into Thanh Hoa’s startup ecosystem using a systematic review and secondary data analysis. Findings indicate that improvements in information quality (the IFRS/VFRS roadmap, compliance with the Law on Independent Audit, and enhanced institutional transparency) are positively associated with FDI and are amplified by local institutional quality. For startups/SMEs, standardized financial statements and audited reports shorten due diligence, lower transaction costs, and raise “investability.” The study proposes three solution sets: a tiered IFRS/VFRS roadmap coupled with co-financing for first-time audits; a provincial XBRL-based financial reporting data infrastructure; and ecosystem coordination alongside an “IFRS for Startups” program.