THE SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

Ho Chi Minh City, 11st August 2021

THEORETICAL AND PRACTICAL CONTRIBUTION

Thesis: FACTORS AFFECTING THE IMPLEMENTATION OF MANAGEMENT

ACCOUNTING TECHNIQUES IN SMALL AND MEDIUM PRODUCTION
ENTERPRISES IN VIETNAM
Major: Accountancy Code: 9340301
Ph.D. student: Nguyen Thi Huyen Tram Intake: 2014
Institution: University of Economic Ho Chi Minh City
Supervisor: Associate Professor Dr. Vo Van Nhi
Summary of theoretical and practical contribution:
1. Contribution of study on theoretical aspects
This work has contributed some additional knowledge related to management accounting
techniques in SMEs in the manufacturing sector in developing countries, including Vietnam, in
particular.
- The thesis has found out four factors affecting the implementation of management
accounting techniques in SMEs in the manufacturing sector in Vietnam. In which, there are three
factors belonging to the contigency theory, that is the strength of the competitive market, the
view of the business owner, advanced technology and a factor in institutional theory, which is
the imitation. The discovery of an institutional factor affecting the implementation of
management accounting techniques for SMEs in the manufacturing sector in Vietnam is a new
contribution of the topic.
- The topic has developed additional observed variables for the scale of the strength of the
competitive market and the scale of views of business owners. The additional observed variables
help the collected data achieve greater accuracy. In the future, scholars can inherit these scales to
continue implementing topics related to management accounting techniques.
 - Although SMEs still receive a lot of attention from scholars, there are not many
academic studies on management accounting in SMEs in Vietnam, including the implementation
of management accounting techniques. It is important to promote awareness and knowledge of
management accounting techniques in SMEs in Vietnam so that businesses can implement it,
thereby benefiting from the market and reducing failure. Therefore, this work hopes to motivate
scholars to continue adding new techniques to consider implementing management accounting
techniques in SMEs in manufacturing in Vietnam.
2. Contribution of study on practical aspects
Based on the conclusions drawn from the results of this work, the author proposes some
management policy implications for each factor affecting the implementation of management
accounting techniques in SMEs in manufacturing sector:
* The strength of the competitive market.
The research results have proven that the strength of the competitive market is one of the
factors that really has a strong relationship with the implementation of management accounting
techniques in SMEs in the Vietnamese manufacturing sector. Therefore, the author proposes
some solutions to increase the strength of the competitive market as follows: (1) The
Government needs to continuously improve the commercial business environment to create a
fair competition space for industries as well as business types of enterprises, continuous changes
will create pressure for businesses to change and increase their competitiveness. When the
competitive pressure increases, businesses are forced to pay attention to their operational
efficiency if they want to outlast and grow, so they will have the need to use many sources to
make decisions. (2) The professional associations need to enhance their role in the international
integration context because one of the important commitments when Vietnam joins the WTO is
that the State will not interfere deeply in economic activities. Therefore, in addition to being a
representative to fight for the rights and interests of enterprises, the Association also has to
contribute to trade promotion, investment, human resource training, consulting and sharing
experiences, and providing other necessary services for businesses ... (3) Businesses need to be
more proactive in enhancing their competitiveness to maintain and phát triển strongly in the
international integration context. Proactively learn and update business knowledge from
advanced countries through training courses organized by the association to grasp the growth
trends of domestic and international markets, adjust the action plan to achieve the goal.
 * Owner's participation
The research results have proved that Owner's participation is one of the factors related to
the implementation of management accounting techniques in SMEs in the Vietnamese
manufacturing sector. To help change the view of the business owner in a positive direction, the
author suggests some ideas: (1) The Government should have encouraging and supportive
decisions to raise awareness of the role of business owners in the implementation of
management accounting techniques, recognizing the richness of management accounting
techniques as well as the benefits of these techniques. (2) The professional knowledge training
courses on financial accounting are still regularly and widely held, but the training courses on
management accounting skills are still not popular. Therefore, the Association needs to organize
more seminars and training courses on accounting management to help businesses understand
and apply management accounting in their business activities. (3) Business owners need to
accumulate and regularly update knowledge of management accounting and change perceptions
of management accounting. Business owners need to have a correct view of management
accounting, and most importantly, be proactive and promote the implementation of management
accounting in their business activities in order to achieve the highest management efficiency.
* Advanced technology
The research results have proven that advanced technology is one of the factors related to
the implementation of management accounting techniques in SMEs in the Vietnamese
manufacturing sector. Therefore, the author proposes a number of solutions to enhance the
application of advanced technology in enterprises as follows: (1) The Government needs to
distribute the budget to finance science and technology projects and programs in order to
motivate enterprises to quickly apply advanced technology to their operations. Building a strong
connection between enterprises and science and technology management agencies to promote
research and application of science and technology. In addition, the Government also needs to
develop regulations and regulations to support enterprises importing advanced and modern
machinery to encourage enterprises to boldly innovate technology. (2) The Professional
Associations need to arrange and organize seminars, sharing experiences and advantages when
applying advanced technology. In addition, Associations continue to organize programs to honor
successful businesses because they boldly invest in advanced technology in production and
business activities to motivate other businesses. (3) Businesses also need to actively improve
internal resources to be able to stand firmly in the international marketplace. To cope with
competitive pressure, businesses need to be proactive, they should not only rely on the
Government's policies and support, but also need to develop a roadmap to invest in improving
production equipment and technology, modernizing machinery and equipment, boldly
abandoning outdated equipment.
* Imitation
The research results have proven that imitation is one of the factors that have a
relationship to the implementation of management accounting techniques in SMEs in the
Vietnamese manufacturing sector. Therefore, in order to increase the mutual imitation, the
author proposes a number of solutions: (1) The Government should quickly issue guidelines on
management accounting techniques, especially advanced management accounting techniques.
Currently, the documents related to management accounting are still quite few, so businesses are
also facing many difficulties in learning new management accounting techniques. (2) The
Professional Association continues to closely link with the media to organize and widely
promote programs honoring successful entrepreneurs and businesses. This is an opportunity for
business people to exchange and share business secrets. Through that, the program will find new
typical faces and effective business models to serve as examples and motivations for other
businesses to learn and strive. In addition, the Association needs to learn more from neighboring
countries and advanced countries in the world by participating in seminars or exchanging
personnel, inviting experts to be consulted on management accounting. (3) Businesses need to be
properly aware of the role of professional associations, many businesses still think that
associations are just a place to meet and exchange experiences of people with the same purpose.
This place is just an icon, not real power, no voice about hot and urgent issues in society, so
many businesses have not thought of joining the association. However, the association's role in
the new era has changed, the association in the new period serves as a bridge between businesses
and the world, between businesses and public authorities, and between businesses. Actively
participating in the Association will not only create opportunities for businesses to quickly grasp
the regulations issued by the State, but also help businesses learn and share knowledge and
experiences from domestic and international businesses.
Ph.D. student
 Nguyen Thi Huyen Tram

Nguyễn Thị Huyền Trâm