000091322 EFFECTS OF ACCOUNTING INFORMATION SYSTEM ON THE ROLE OF MANAGEMENT ACCOUNTANT IN VIETNAM THE CASE OF SMES IN ARTS AND CRAFTS INDUSTRY ẢNH HƯỞNG CỦA HỆ THỐNG THÔNG TIN KẾ TOÁN ĐẾN VAI TRÒ CỦA KẾ TOÁN VIÊN QUẢN LÝ TẠI VIỆT NAM TRƯỜNG HỢP CỦA CÁC DOANH NGHIỆP VỪA VÀ NHỎ TRONG NGÀNH NGHỆ THUẬT VÀ THỦ CÔNG
Overview o f the re s e a rc h
Globalization is the defining driver of today’s business landscape, influencing the economy, society, and the environment, and virtually all companies have felt its impact As firms strive to be more successful, the definition of success varies between outsiders and insiders To investors and creditors, success means a high stock price, generous dividends, timely interest payments, and healthy financial ratios To insiders—directors, department heads, and management accountants—success exists only when personnel tasks are completed and predefined objectives are met, with management accounting depending on information that is reliable and relevant In short, globalization creates a dual perspective on business performance: external financial metrics and internal information quality that together enable sustained progress.
The fact that Vietnam officially became W TO member on January 11th
2007 brought a mix of opportunities and threats for local businesses as barriers to exporting and importing were reduced by regulatory changes, making it easier for Vietnamese firms to source materials from abroad and to export their products to international markets Both local and foreign companies benefited from lower import taxes for trading in Vietnam, while competition in key markets intensified With a sizable share of Vietnamese consumers showing a preference for foreign products, sales of local goods declined in certain segments The evolving landscape meant more opportunities and risks for local businesses, and in particular, the work of management accountants became increasingly complex as they navigated these changes.
Advances in computer science and technology have made many tasks easier, and accounting is no exception Accounting information systems (AIS) are among the key tools designed to deliver reliable and relevant information to management accountants AIS supports effective decision making across the organization and is vital to business performance; its effectiveness is one of several decisive factors contributing to overall business success (Borthick & Clark, 1990; Curtis, 1995; Rahman et al., 1988; Wilkinson, 1993; Wilkinson et al., 2000).
The effectiveness of Accounting Information Systems (AIS) has long been a focus of academic inquiry, with researchers asking how AIS influences managerial decisions A 2008 study by Sajady, Dastgir, and Hashem Nejad, published in the International Journal of Information Science & Technology (Vol 6, No 2), reports that AIS can improve managers’ decision-making In contrast, a 2009 study examining the Vietnamese logistics sector—“Interaction of Management Accounting Information System and Logistics Functions: A Case of a Developing Country – Vietnam” by Hamid Pourjalali and Michele Pomberg—finds AIS ineffective for decision making Similar conclusions have appeared in Vietnamese magazines, reflecting ongoing debate about AIS effectiveness in different industries This ambiguity motivates further inquiry into the actual impact of AIS within Vietnamese organizations Consequently, my graduation research aims to explore how AIS affects the role of management accountants in Vietnam’s arts and crafts manufacturers.
Scope o f the re s e a rc h
This study examines the impact of Accounting Information Systems (AIS) on the role of management accountants within Vietnam's Arts and Crafts industry By focusing exclusively on this sector, the research investigates how AIS-enabled reporting, budgeting, and cost management support management accountants in planning, control, and strategic decision-making The Arts and Crafts industry is selected due to its pivotal contribution to Vietnam's economy and its significance in exporting, making AIS adoption particularly relevant for improving competitiveness and export performance.
Effects o f AIS on the role o f management accountants in Vietnam:
The case o fSM E s in Arts and Crafts industry' activities to be specific Detail description will be stated in section 4 o f ' ‘Literature Review" chapter.
This thesis focuses exclusively on Vietnamese small and medium enterprises (SMEs), which account for approximately 97% of all Vietnamese businesses, as documented by tapchicongsan.org.vn and the Ministry of Planning and Investment From this SME population, the scope is narrowed to manufacturing firms that directly produce arts and crafts products.
Therefore, conclusion m ade from this thesis can only be referring to the whole manufacturing SMEs o f A rts and Crafts industry in Vietnam.
Rationale o f the research
This study evaluates the effectiveness of Accounting Information Systems (AIS) in supporting the role of management accountants within Vietnam’s arts and crafts manufacturing sector, focusing on how AIS aids managers in pricing decisions, the preparation of the master budget, and the controlling process Four research questions—and the four corresponding hypotheses—drive the investigation, with detailed descriptions provided in section 2.2 of Chapter Three The research specifically targets arts and crafts manufacturers in Vietnam, aiming to reveal the extent to which AIS enhances managerial decision-making, budgeting accuracy, and internal controls in this industry.
•> Are management accountants aware o f the AIS?
**** Does AIS provide information for management accountants to help managers in pricing decision?
Does AIS provide information for management accountants to help managers in preparing master budget?
♦t* Does AIS provide information for management accountants to help managers in controlling process?
Effects o f AIS on the role o f m anagem ent accountants in Vietnam:
The case o f SMEs in Arts and Crafts industry
Significant o f the research
Low prioritization of an Accounting Information System (AIS) by management accountants has inspired this study The research aims to provide empirical evidence on the effectiveness of AIS in shaping the role of management accountants within small and medium-sized enterprises (SMEs) in the arts and crafts industry, and to identify the deep reasons for the system’s neglect despite its proven success in other developing contexts such as the United States and Australia.
Structure o f the re s e a r c h
The research is divided into six chapters.
Chapter 1 is the introduction o f research, which give some overview o f the research and its scope Besides, the overall purpose o f thesis through research question is also pointed out.
The next chapter presents a literature review that introduces key terms and theories used in research, organized into three sections The first section covers the terminology of AIS (Accounting Information System), its components, limitations, and benefits, and discusses AIS applications in Vietnam The second section defines the history and development of management accounting and explains the role of management accountants and their main duties in the decision‑making process The final section of chapter two explores the relationship between AIS and management accountants.
Chapter 3 presents the research methodology, detailing the data sources used, the hypotheses tested, and the questionnaire design It also provides information on the study population and sampling method, as well as the procedures for data collection, processing, and analysis.
Chapter Four presents the findings from the questionnaire data, with respondent personal information described using descriptive statistics to characterize the sample A z-test is applied to assess population effects, focusing on how the Accounting Information System (AIS) influences the role of management accountants in Vietnam.
The case o fS M E s in Arts and Crafts industry proportion is use for the remaining twenty-three questions After that, general arguments are provided to conclude this chapter.
Chapter 5 identifies the study's limitations and proposes actionable avenues for future research to overcome these constraints, while the final chapter offers a clear conclusion that summarizes the work, highlights the key findings, and explains their real-world implications.
Effects o f AIS on the role o f management accountants in Vietnam:
The case ofSM E s in Arts and Crafts industry
Effects o f AIS on the role o f management accountants in Vietnam:
The case ofSM E s in Arts and Crafts industry>
Accounting Information S y s te m
Information System (I S )
Information systems are the combination of hardware, software, and telecommunications networks that people build and use to collect, create, and use data, especially in organizational settings This terminology clearly defines the components and the purpose of information systems To enhance readability, this terminology is presented as a graph, helping readers visualize how hardware, software, and networks integrate to support data capture and data creation in organizations.
Figure 1 : Information System - its components and process.
(Source: Youtube.com / Diagram R epresentation o f an Inform ation System)
To understand the flow of information in an information system, we first identify the components that appear in the diagram The primary element is users—people who rely on the system’s outputs, such as accountants, salespersons, engineers, clerks, customers, managers, or the corporation itself For example, a corporation uses information from the system to plan and manage operations, interact with customers and suppliers, and compete in the marketplace The purposes of the system are driven by user needs, defining what must be achieved in a given situation Another component, sometimes confused with users, is the participants—processors or operators who work directly with the system.
Information processes involve seven essential steps: collecting, organizing, analyzing, storing, processing, transferring, and delivering data to users Data appear in diverse formats—numbers, audio recordings, images, videos, templates, graphs, and more—and originate from two sources: primary data collected firsthand and secondary data from published media and the Internet When secondary data do not satisfy a specific purpose, data can be collected using methods such as surveys and observations Primary data, gathered directly for a task, are then processed to become useful information Although information systems do not have to be computer-based, the rapid development of information technology and computer science means most modern information systems are computer-based.
Depending on the user’s needs, a specific purpose is entered into the information system, after which participants begin their work by initiating the seven-step information process For example, a manufacturing manager who needs to determine the total cost incurred by his department for the month can use this workflow to assess cost efficiency and overall performance, while the system delivers timely notifications of the results to support informed decision-making and performance optimization.
Effects o f AIS on the role o f management accountants in Vietnam:
Within the SMEs in the arts and crafts industry, cost allocation is managed through the operators’ information system This approach uses both secondary data for allocating costs and primary data to assess efficiency through performance ratios The resulting insights are then extracted from the system and delivered to the designated users for decision-making.
Information systems (IS) can be classified into two complementary types: Management Information System (MIS) and Accounting Information System (AIS) These two systems do not operate in isolation; they integrate to support the organization in achieving its overall business objectives A Management Information System (MIS) provides timely information to help the organization manage itself efficiently and effectively, analyzing and facilitating strategic and operational activities An Accounting Information System (AIS), on the other hand, specializes in accounting and financial activities The next section will focus on describing AIS in more detail.
Accounting Information System ( A I S )
An Accounting Information System (AIS) is a collection of data and processing procedures that produces information users rely on It covers the AIS components and its main functions: first, the AIS collects and stores data related to specific business events, resources, and actors, and then it transforms that data into information that supports managerial decision making.
(about those issues) And AIS then provides adequate control to ensure that the availability o f business's resources when needed, and accuracy and reliability o f information.
Effects o f AIS on the role o f management accountants in Vietnam:
The case ofSM E s in Arts and Crafts industry’
Effects o f AIS on the role o f managem ent accountants in Vietnam:
The case o f SM Es in Arts and Crafts industry’
Figure 2: AIS and its components
AIS consist o f six main components:
An accounting information system (AIS) centers on the people who use it, categorized as insiders and outsiders Insiders such as accountants and managers rely on AIS to collect, store, manage, process, retrieve, and report financial data, while outsiders like consultants and auditors analyze the business in their own way; for example, auditors use AIS to evaluate the organization’s internal controls A well-designed AIS ensures authorized users have consistent access to the same information and facilitates data sharing across departments to solve organizational issues In practice, a Sales Department manager can base next month’s forecast on historical data from the Accounting Department, with the forecast automatically informing Production about material requirements, which is then checked against current inventory to decide whether to procure more from suppliers When a purchase is approved, the AIS notifies the Accounting Department to process payment Overall, AIS streamlines business processes, improves accuracy, and enables smoother cross-functional workflows.
An AIS (Accounting Information System) encompasses its procedures and software, and today it is largely automated thanks to advances in information technology (IT) and computer science (CS) Historically, AIS was paper-based and required substantial effort from participants, but modern AIS software automates many processes and improves efficiency The software outputs of AIS are used to predict and forecast outcomes across nearly every aspect of the business cycle, supporting informed decision-making For an AIS to be effective, it must deliver high data quality, reliability, and robust security.
Data is the third key element It encompasses all the information a business needs, both financial and non-financial, and it should be complete, timely, and accurate The exact data required will vary with the nature of each business; for example, manufacturers track production costs and related production metrics, while retail businesses may not require the same production data.
An AIS includes Information Technology Infrastructure (ITI), the hardware that runs the software—such as personal computers, printers, and faxes A well-designed ITI should be compatible, optimized for performance, and capable of fast operation To adapt to changing business conditions, this infrastructure requires periodic maintenance, timely replacement, and regular upgrades.
Internal control is a key aspect of an Accounting Information System (AIS), which can be secured with a strong password and enhanced with biometric options like voice and fingerprint recognition In Vietnam, the deployment of AIS is transforming the role of management accountants by delivering more accurate data, real-time reporting, and better decision support, while strengthening risk management and compliance Consequently, management accountants in Vietnam are evolving from traditional record-keepers into strategic partners who analyze financial information, monitor controls, and drive performance through automated processes and actionable analytics.
The case o fSM E s in Arts and Crafts industry
Effects o f AIS on the role o f management accountants in Vietnam:
Small and medium-sized enterprises (SMEs) in the arts and crafts sector rely on automated information systems (AIS) to manage sensitive data To protect this information, access to critical fields should be limited to authorized personnel only The AIS faces threats from viruses, hackers, and power surges that can compromise data integrity and disrupt operations Therefore, an IT manager or administrator needs to implement a robust access-control framework and comprehensive security measures to mitigate external threats and safeguard business continuity.
An Accounting Information System (AIS) delivers higher quality information—more useful, understandable, timely, and pertinent—reducing uncertainty and boosting relevance, which leads to more effective decision making An AIS enables a business to adapt quickly to operational or environmental changes, making it more competitive within its field It also accelerates the flow of information among staff With automation and computerized processes, AIS reduces human errors, thereby increasing the value provided by accountants.
AIS has two sides: while it offers powerful capabilities, it also comes with notable limitations The system is complex and comprises many components, which makes it hard to use and to train staff on Training programs are often lengthy, and employee turnover can create a skill gap that takes even longer to fill AIS also faces external threats: as a computerized system, it relies on electricity, so power outages can crash the system and risk losing all or part of the data Regular backups help mitigate this risk, and antivirus software can protect against malware Yet even with these safeguards, risk can never be eliminated completely, so there remains a chance of information loss.
In summary AIS is the process that matches the need o f business to their own requirement The bigger-sized companies are: the more complex the system
AIS and its effectiveness
AIS is a dual-purpose accounting information system: it supports accountants in registration, accounting, and reporting duties while also delivering information of the highest quality to inform managers’ decision-making Because managers have diverse information needs, there is no single standard dataset suitable for the entire business operation The effectiveness of an AIS hinges on users’ perceived usefulness of the information for decision making and monitoring, which depends on the organization’s ability to coordinate and control the information produced by the AIS.
An Accounting Information System (AIS) is effective when its outputs comply with internal policies and meet managerial needs for operation issues, managerial reports, budgeting, and controlling The quality of information hinges on three dimensions: scope, timeliness, and aggregation Scope distinguishes between financial and non-financial data, and internal versus external information For example, in pricing decisions, a manager cannot rely solely on internal data if the firm operates in a competitive market; external information about competitors' price trends must be considered Even with a broad scope, information loses value if it is not timely Aggregation refers to how information is collected and summarized; if data come from unreliable sources or are summarized subjectively, the resulting information is of low quality and cannot support effective decision making.
Effects o f AIS on the role o f management accountants in Vietnam:
The case o fS M E s in Arts and Crafts industry>
Whether the information generated by an AIS is satisfactory depends on several internal and external factors Internally, the system’s sophistication level—reflected in the organization’s application portfolio—positively affects AIS effectiveness, a relationship demonstrated by Ismail and King (2007) Manager participation matters as well: when managers are involved in defining information needs, discussing the effects of alternative actions with accountants, and implementing the chosen solution, outcomes are likely to be better than when the accountant acts alone Another internal factor is the manager’s knowledge of AIS and accounting; with accounting knowledge, managers can better understand information requirements and, using their awareness of the capabilities of existing and new technologies, select an AIS that fits the organization’s demands Externally, factors such as vendors, consultants, government assistance, and accounting firms influence AIS effectiveness, since advice from these experts broadens the organization’s perspective on information needs and processing capacity.
Although numerous studies confirm the benefits of an accounting information system (AIS) for organizations, these advantages are not yet fully recognized in Vietnam In practice, AIS in Vietnam often merely records events rather than functioning as an autonomous, decision-support tool, and information related to planning, control, and decision making is not widely utilized The root cause appears to be incomplete knowledge about planning and control processes As a result, the impact of AIS on the role of management accountants in Vietnam is limited: management accountants remain focused on routine data recording and transactional tasks instead of providing strategic planning, performance monitoring, and decision-support insights Improving awareness and proficiency in AIS planning and control could expand the strategic contribution of management accountants within Vietnamese enterprises.
The case o f SMEs in Arts and Crafts industry
Management A c c o u n tin g
M anagement Accounting, definition and history path
Accounting, which is the language o f business, provide information about financial performance and status o f organization It is the process o f identifying, measuring, and com m unicating economic information to various users (Homgen, Harrison Bamber: A ccounting 6th edition) Base on those categories, accounting is classified into two field; Financial A ccounting (FA) and M anagement Accounting (MA) FA is legally requirement o f providing reports about business performance and position at the period end to external users while there is no legally requirement about the providing insights into performance o f business to internal users by MA Due to not requiring by law, there is no pre-determined format for
MA while several different regulatory define format o f FA, such as Company Law, A ccounting Standards, Stock Exchange.
M anagement A ccounting is the process o f identification, measurement, accumulation, analysis, preparation, interpretation and communication o f information used by m anagem ent to plan, evaluate and control within an entity and to assure appropriate use o f and accountability for its resources (CIMA definition) It emphasizes on the ‘in fo rm a tio n ", specifically, the management accounting information They are both financial and non-financial, and could be seen in form o f financial ratio, variance analysis, and budget forecast Noted that financial and managem ent accounting are prepared using the same pool o f data, but ways o f processing are different, result in different information.
According to CIMA's definition, the core functions of management accounting are identifying and classifying data, modifying, analyzing and interpreting it, and communicating information to support decision-making When a management issue is identified, stakeholders determine the kinds of data required and group them for efficient handling The subsequent steps—modifying, analyzing and interpreting—are carried out within the AIS framework, shaping how information is prepared and presented In Vietnam, these AIS-driven processes influence the role of management accountants by redefining data collection, analysis, and interpretation tasks and emphasizing clear, actionable communication of insights.
SMEs in the arts and crafts industry respond to user demand by analyzing information, which can be expressed not only as numeric data but also as ratios or graphs Once this information is compiled, it is communicated to the manager to support planning, controlling, and decision-making For example, in a price-related issue, data on the cost of production is identified and then divided into groups such as material cost, labor cost, and overhead cost, with smaller subgroups like direct and indirect costs when needed.
Effects o f AIS on the role o f management accountants in Vietnam:
The case o fS M E s in Arts and Crafts industry
HISTORY OF THE MANAGEMENT ACCOUNTING
• Identifying and • Planning and ôInformation • Adding more value Controlling costs controlling provided system
In the accounting industry, MA has a long developed history o f more than
Over six decades, management accounting (MA) has progressed through four stages, as described in figure 3 In the initial stage, MA focused on identifying and controlling costs Its role expanded to support senior management by delivering information across the organization to aid planning and decision making By the mid‑1980s, MA remained a tool for providing timely information, but its use broadened to analyze entire processes and even redesign systems The fourth stage, starting in 1995, added value through the integration of information technology and knowledge resources to evaluate individual business problems Despite nearly 30 years of development, Vietnam’s MA has largely remained at the second stage—planning and controlling—and has yet to generate more value for companies.
Management accounting (MA) has gained widespread adoption across industries, even in organizations without a legal mandate to implement it MA offers several benefits, including increased operational efficiency, stronger planning for diverse activities, and robust means to measure and evaluate performance through budgetary control and standard costing Yet MA has notable limitations It relies on data from financial accounting (FA), which are historical, while MA is used to plan and decide on future activities It involves many estimates, so accuracy cannot be guaranteed Interpretations of MA results can be biased by an accountant’s personal judgments, potentially favoring individual interests over the organization’s broader objectives Moreover, effective MA requires knowledge across multiple domains—statistics, economics, and the organization’s specific industry—so gaps in any one area can weaken the analysis.
M anagement Accountant and its role in O rganization
Management accountants supply business data and analysis to managers to support decision‑making and organizational control They plan, review, and administer accounting systems and procedures, analyze the organization’s information needs, advise on financial planning and risk management, and generate management reports They oversee accounting work, provide insight into cost performance, and back benchmarking and continuous improvement initiatives Taken together, these activities help ensure that management decisions lead to future stability, growth, and profitability The role blends accounting proficiency with business-management capabilities, and in Vietnam, the impact of Accounting Information Systems (AIS) on this role includes enhanced data availability, real‑time reporting, stronger internal controls, and improved cost management.
The case o f SMEs in Arts and Crafts industry skills management accountants have, the higher level o f achievement the organization is.
Management accounting serves as an information provider for planning, controlling, and decision making within an organization A decision is the selection among two or more alternatives; if only one option exists, no decision is required Daily, routine decisions occur regularly, while non-routine or special‑case decisions—such as accepting or rejecting a special order or launching a new product line—demand deeper analysis Decision making is a fundamental activity at all levels, from simple everyday choices to more complex strategic judgments.
Effects o f AIS on the role o f m anagem ent accountants in Vietnam:
The case o f SM Es in Arts and Crafts industry>
2 Search for alternative courses o f action * m m â
Figure 4: The decision making process
(Source: C A T - Paper MAI; Management Information)
The decision process consists of seven steps, with the first five forming the planning cycle and the last two the controlling cycle It begins by defining a clear objective—specifying what you want to achieve and where you want to be—so the entire process stays aligned After the objective is set, alternative courses of action are identified and the relevant data for each option are gathered; some information is immediately evident, while other data may be missing and require additional processing If critical information isn’t readily available, it’s prudent to delay the decision until it can be obtained Once all necessary information is collected, the most suitable alternative is selected and implemented with care Following implementation, actual outcomes are compared to the planned results to detect variations, evaluate their impact, and take corrective actions as needed.
To illustrate this process, imagine a director reviewing the income statement and identifying labor costs as too high, with the objective of reducing labor costs as the first step Management then seeks alternative actions, and with two straightforward options—reduce headcount or cut wages per employee—both risk union protests Therefore, the accountant gathers data on potential losses from such protests (strikes, productivity declines) and analyzes the pros and cons of each option to balance trade-offs and select the most reasonable approach for careful implementation After the plan is put into action, the accountant measures actual labor costs against the budget, computes variances, and, if necessary, takes corrective actions to bring results back in line with the target.
3 AIS and role o f management accountant in pricing decision, master budget preparation and controlling
Output of an Accounting Information System (AIS) is the information used in business operations as a whole, while the core role of the management accountant is to collect and provide this information to top managers for planning, controlling, and decision-making Therefore, the management accountant acts as a communicator between the AIS and managers, translating data into actionable insights In Vietnam, the effects of AIS on the role of management accountants include more timely access to data, improved performance measurement, enhanced control, and greater advisory support to top management in strategic and operational decisions.
SMEs in the arts and crafts sector select and present information that is relevant and reliable to address managerial issues As noted in the introduction, the study concentrates on the impact of Accounting Information Systems (AIS) on the roles of management accountants, with a focus on pricing decisions, the preparation of the master budget, and controlling.
As a manufacturing company, pricing decisions are among the most crucial managerial choices because they directly affect profitability and, in turn, performance evaluation In setting prices, managers must weigh both internal and external information External insights—such as competitor price trends, prevailing economic conditions, and demand trends—are provided by the marketing and other departments, while internal data come from AIS through management accountants Information on direct material cost, direct labor cost, manufacturing overhead, and the desired profit margin is essential for price determination An effective AIS delivers this information promptly, helping managers set prices that align with cost structures and profitability goals.
The master budget is an overall plan that coordinates the acquisition and use of resources, articulating managerial policies and goals for a specific period It is especially crucial for manufacturing companies, where resources such as materials, labor, and cash are most prone to change, and it helps managers identify actions needed to achieve organizational goals and participate in financing activities when funds may be insufficient for future operations Preparing a master budget involves setting objectives, selecting the best action alternatives, forecasting sales and production levels, estimating related costs, and projecting cash flow Management accountants collect and compile the information used at each stage and deliver timely insights to the responsible managers An Accounting Information System (AIS) is viewed as enhancing the role of management accountants by improving information quality and timeliness.
Effects o f AIS on the role o f management accountants in Vietnam:
The case o f SMEs in Arts and Crafts industry
Control in the decision‑making process is driven by the control cycle, where a good accounting information system (AIS) provides managers with the information they need, though the data are not handed to them directly Management accountants serve as the link between managers and the AIS, selecting reliable and relevant information that enables comparisons of actual performance with the plan, identifying and evaluating variances, and taking corrective actions when necessary.
Chapter 1, Article 3 of Decree No 56/2009/ND-CP, issued on June 30, 2009, defines Small and Medium Enterprises (SMEs) as registered businesses that are small in terms of capital, the number of employees, or revenue Based on total capital—which corresponds to total assets reported on the balance sheet—or the average annual number of employees, three levels of SMEs are specified.
Effects o f AIS on the role o f management accountants in Vietnam:
The case ofSM E s in Arts and Crafts industry
Micro Enterprises Small-sized Enterprises Medium-sized Enterprises
N um ber o f employees Total capital Number o f employees Total capital N umber o f employees
Between over 20 billion and VND 100 billion
Between over 20 billion and VND 100 billion
Between over 10 billion and VND 50 billion
T able 1: C ategories o f business in SM Es
Small and medium-sized enterprises (SMEs) play a vital role in Vietnam’s economy despite limitations in capital and workforce At the Creativity Conference, research from university–industry collaborations shows that as of May 2010 there were about 500,000 registered businesses with a total registered capital of VND 2,514 billion, of which 97% were SMEs, contributing 40% of GDP and employing more than half of the country’s total labor force (Tapchicongsan.org.vn & the Ministry of Planning and Investment).
4.2 A rts and C rafts in d u stry
Arts and Crafts manufacturers belong to the second sector of SMEs—Industry and Construction They are micro enterprises when their annual workforce is fewer than 10 employees They qualify as small-sized firms if their average annual employment ranges from 10 to 200 employees or if their maximum owner equity capital reaches up to 20 billion VND Enterprises with capital between 20 and 100 billion VND or employing 200 to 300 people per year are categorized as medium-sized.
Exports play a crucial role in Vietnam’s foreign trade and drive its economic development Vietnamese arts and crafts enjoy higher profit margins than other local products, fueling a steady rise in export value In 2010, arts and crafts accounted for about 7.3% of Vietnam’s total exports, highlighting its growing importance Consequently, arts and crafts has become one of the leading sectors in Vietnam’s export activities.
Effects o f AIS on the role o f m anagem ent accountants in Vietnam:
The case o f SM Es in Arts and Crafts industry
Effects o f AIS on the role o f management accountants in Vietnam:
The case o f SMEs in Arts and Crafts industry’
Value of Arts & Crafts exporting
Figure 5: Status o f Vietnam’s Arts and Crafts exporting activity
(Source: General Statistics Office and International Trade Center)
The arts and crafts industry encompasses wood and wood-related production, bamboo products, ceramics, embroidery, and lacquerware The left line chart shows a slight increase in the share of arts and crafts in total export value, while the right-hand chart reveals a significant rise in arts and crafts exports, with value doubling over five years Despite these positive signals, many companies in this sector filed for bankruptcy in recent years, especially after the global financial crisis of 2008, as orders fell by more than half Mr Dang Quoc Hung, director of Kim Boi LLC, discussed these industry hardships in an interview with Baomoi.com.
2012 that their company lost about 60% o f order in comparison with that period in 2011.
Business representatives report difficulties in securing loans from commercial banks; although banks have policies to boost investment lending, SMEs often lack sufficient assets to pledge as collateral and typically have modest credit ratings In addition, inflation driven by economic crisis raises costs and compresses profit margins, and the growing network of intermediary firms between SMEs and exporters adds another hurdle From an accountant’s viewpoint, other factors may explain performance issues, such as the accountant’s effectiveness or weaknesses in the company’s Accounting Information System (AIS) This thesis investigates whether AIS affects the role of management accountants in Vietnam’s arts and crafts industry.
Effects o f AIS on the role o f m anagem ent accountants in Vietnam:
The case o fS M E s in Arts and Crafts industry’
Effects o f AIS on the role o f management accountants in Vietnam:
The case o f SMEs in Arts and Crafts industry
C H A PTER III: RESEARCH M ETHO DO LO G Y