Abstract
The objective of this chapter is to study the current evolutionary stage of management accounting practices (MAPs) in Vietnam. It explores the extent to which various MAPs are implemented in Vietnamese enterprises using a survey to collect information and the IFAC model as an international measure. Of the 700 companies that received the questionnaires, 250 provided usable responses, a 35.7% response rate. The results indicate that the majority (66.8%) of Vietnamese enterprises are in the first two stages of the IFAC model. Fewer enterprises (33.2%) have reached Stages 3 and 4, the higher evolutionary stages of the IFAC model. It is found that the most widely adopted MAPs in Vietnamese enterprises are standard costing, absorption costing, budgeting for product cost controlling, budgeting for revenue, financial ratios analysis, profitability ratio analysis, and profit analysis for products. Additionally, the respondents report that the most important roles of management accounting in their enterprises are to evaluate enterprise performance, to use for planning and controlling, and to help make decisions on production or investment. Few enterprises appreciate the roles that modern management accounting play in enhancing resource efficiency and reducing waste. Therefore, this research provides empirical evidence on the advancement of MAPs as employed by Vietnamese enterprises. For researchers and managers in Vietnam and other countries, it sheds light on the current stage of Vietnamese management accounting practices based on an international measure.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Abdel-Kader MG, Luther R (2006) Management accounting practices in the British food and drinks industry. Br Food J 108(5):336–357
Abdel-Kader MG, Luther R (2008) The impact of firm characteristics on management accounting practices: a UK-based empirical analysis. Br Acc Rev 40(1):2–27. https://doi.org/10.1016/j.bar.2007.11.003
Adams HA, Do TL (2005) VN GAAP and VN GAAS: convergence to international accounting and auditing principles. National Political Publisher, Hanoi
Chenhall RH, Langfield-Smith K (1998) Adoption and benefits of management accounting practices: an Australian study. Manag Acc Res 9(1):1–19
Chu T (2004) Accounting changes in a transition economy: the case of Vietnam. Doctoral thesis, University of Wollongong
Dang VT (2008) Vietnamese accounting and auditing: strong and steady advances after 20 years of Doi Moi. Acc Mag 77(April). (in Vietnamese)
Dao TH (2015) Improving the management accounting system in steel production enterprises in Vietnam. Doctoral thesis, National Economics University, Hanoi, Vietnam. (In Vietnamese)
Dinh PT (2003) Completing cost accounting systems to enhance business management in Vietnamese air transportation companies. Doctoral thesis, National Economics University, Hanoi, Vietnam. (In Vietnamese)
Doan NPA (2012) Research on the factors affecting the application of strategic management accounting techniques in Vietnamese enterprises. J Econ Dev Vietnam 264(October): 9–15. (In Vietnamese)
Doan NPA, Nguyen DT, Mia L (2011) Western management accounting practices in Vietnamese enterprises: adoption and perceived benefits. Pac Account Rev 23(2):142–164
Duiker WJ (1983) Vietnam: nation in revolution. Westview Press, Boulder, CO
Duong TMHT (2004) Building management accounting systems in Vietnamese textile companies. Doctoral thesis, University of Economics Ho Chi Minh City, Vietnam. (In Vietnamese)
Giang TX (2002) Organizing management accounting systems and business analysis in state owned enterprises in Vietnam. Doctoral thesis, Academy of Finance, Hanoi, Vietnam. (In Vietnamese)
Ho VN (2010) Organizing cost management accounting systems in Vietnamese taxi enterprises. Doctoral thesis, Academy of Finance, Hanoi, Vietnam. (In Vietnamese)
International Federation of Accountants (IFAC) (1998) International management accounting practice statement: management accounting concepts, New York
Le DT (2002) Management accounting and analysis of costs at industrial firms in Vietnam (PhD thesis, Academy of Finance, Vietnam) (In Vietnamese)
Luu THN (2000) Completing organization of management accounting in Vietnamese petroleum enterprises. Doctoral thesis, National Economics University, Vietnam. (In Vietnamese)
Mahfar R, Omar NH (2004) The current state of management accounting practice in selected Malaysian companies: an empirical evidence, international business management conference 2004. Universiti Tenaga Nasional, Kajang, Malaysia, pp 50–61
McLeod MW (1991) The Vietnamese response to French intervention, 1862-1874, 1st edn. Praeger Publishers, New York
Micheline R, Nguyen CP (2007) The new system of business accounting in Vietnam: an empirical evaluation. Chaire d’information financiere et organisationnelle [Chair of financial and organizational information]
Ministry of Finance Vietnam (MoF) (2020) Decision No. 345/QD-BTC dated on 16 March 2020: Approving the proposal of applying International Financial Reporting Standards (IFRSs). (In Vietnam)
Nguyen TQ (2004) Building economic information system to enhance business management in Vietnamese telecommunication enterprises. Doctoral thesis, National Economics University, Vietnam. (In Vietnamese)
Nguyen DD (2006) Discussing the methods to organize management accounting of enterprises in our current situation. Financ Acc Res 1(30):20–23. (In Vietnamese)
Nguyen H (2012) Organization of cost management accounting in Vietnamese confectionery companies. Doctoral thesis, National Economics University, Vietnam. (In Vietnamese)
Nguyen TPD (2013) The evolution of management accounting practices in Vietnam: empirical evidence from Vietnamese food and beverage enterprises. Doctoral thesis, Tohoku University, Japan
Nguyen TN (2018) Environmental cost management accounting in steel production enterprises in Vietnam. Doctoral thesis, National Economics University, Vietnam. (In Vietnamese)
Nguyen TPD, Aoki M (2014) The evolution of management accounting practices in Vietnam - a survey research on Vietnamese food and beverage enterprises, the Keizai Gaku. Annual Report of the Economic Society (Tohoku University) 74(4):167–184
Nguyen TPD, Pham TTH (2018) The adoption of target costing in a Vietnamese manufacturing enterprise. Proceedings of “1st international conference on contemporary issues in economics, management and business (1st CIEMB 2018)”. ISBN: 978-604-65-3728-1. National Economics University, Vietnam, pp 43–56
Nguyen CP, Richard J (2011) Economic transition and accounting system reform in Vietnam. Eur Acc Rev 20(4):693–725
Nishimura A (2003) Management accounting: feed forward and asian perspectives. Palgrave Macmillan, Hound mills, Basingstoke, Hampshire
Pham VD (1997) Direction on building content and application of management accounting in Vietnamese enterprises
Pham Q (2002) Direction on building a system of management accounting reports and application on Vietnamese enterprises. Doctoral thesis, National Economics University, Hanoi, Vietnam. (In Vietnamese)
Pham TT (2007) Building a management accounting system for costs in Vietnamese pharmaceutical companies. Doctoral thesis, National Economics University, Vietnam. (In Vietnamese)
Pham NT (2010) Building content and organization of management accounting for small and medium enterprises in Vietnam. Doctoral thesis, University of Economics Ho Chi Minh City, Vietnam. (In Vietnamese)
Pham HH, Tower G, Scully G (2011) De jure convergence between Vietnamese and international accounting standards, 20011 AFAANZ conference, Darwin, Australia
Spraakman G (2010) The impact of information technology on management accounting practices. https://doi.org/10.2139/ssrn.1734052. Accessed 8 March 2020
The National Assembly (2015) Vietnamese Accounting Law. No. 88/2015/QH 2013 on Accounting dated on 20 November 2015
Tran HK (1996) Vietnam’s economy: the period 1945–1995 and its perspective by the year 2020. Statistical Publishing House, Hanoi
Tran DKN (1998) Discussing the the method in calculation of break-even point in manufacturing enterprises. Acc Mag 3:34–35 (Vietnamese)
Tran TT (2015) Research on responsibility accounting in Vietnam cement production enterprises. Doctoral thesis, National Economics University, Vietnam. (In Vietnamese)
Truong BT (2003) Applying cost volume profit - CVP model in business risk analysis. Econ Dev J 71:23–24 (Vietnamese)
Truong BT (2009) Cost accounting system with target costing. J Sci Technol Da Nang Univ 3:23–29. (In Vietnamese)
Vietnam General Statistics Office (2019) Statistical yearbook of Vietnam 2018. Statistical Publishing House, Hanoi
Vo BTM (2011) A study of the development of accounting in Vietnam. Doctoral thesis. RMIT University
World Bank (2016) Report on the observation of standards and codes: accounting and auditing module Vietnam. Hong Duc Publishing House, Vietnam
World Bank (2020) GDP Growth annual (Vietnam). https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=VN. Accessed 8 March 2020
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Nguyen, T.P.D., Nguyen, T.H.T., Nguyen, T.H.L., Nguyen, T.H.H. (2021). Management Accounting Practices in Vietnamese Enterprises. In: Rickards, R.C., Ritsert, R., Terdpaopong, K. (eds) Management Accounting in China and Southeast Asia. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-66245-5_7
Download citation
DOI: https://doi.org/10.1007/978-3-030-66245-5_7
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-66244-8
Online ISBN: 978-3-030-66245-5
eBook Packages: Business and ManagementBusiness and Management (R0)