Page 562 - ISC PROCEEDINGS 21.4

3. Research methods and findings
3.1. Research methods
This study employed research method with the following activities:
- Collecting books, newspapers, and documents related to the ABC model and
Vietnamese textile and garment businesses in the digital economy.
- Conducting interviews with accounting experts from VAA (Vietnam Association of
Accountants), experts from VITAS, and the Ministry of Industry and Trade regarding the
current situation and prospects for applying the ABC model in Vietnamese SMEs in the
digital economy.
- Sending survey questionnaires to businesses that have implemented smart
factories such as Phong Phu, May 10, Vinatex, May Duc Giang, May Song Hong, Hoa Tho,
An Phuoc, May Chau Asia, etc., to collect qualitative information related to the
application of the ABC model in businesses, including types of costs, cost groups,
allocation methods, allocation criteria, cost standards, etc. The survey period was from
April 2025 to December 2025.
- Observe the application of the ABC model at companies such as Asian Garment
Company, Song Hong Garment Company, Viet Tien Garment Company, Hoa Tho Garment
Company, etc., to assess the practical feasibility of the ABC model.
3.2. Findings
3.2.1. Characteristics of Vietnamese textile and garment businesses in the digital
economy
Textiles and garments have been one of Vietnam's key export items in recent years.
Textiles were among the top 10 export sectors of Vietnam in 2024 (Customs Department).
According to the Vietnam Textile and Garment Association's 2025 summary report, textile
and garment export turnover were expected to reach US$46 billion, increased by 5.6%
compared to 2024. Furthermore, 2025 showed many positive signs for the Vietnamese
textile and garment industry, such as: a trade surplus of US $21 billion, continuing to
make a significant contribution to the national trade balance. The localization rate is
expected to reach approximately 52%, demonstrating significant progress in proactively
securing raw materials and components.
The number of businesses in the textile and garment industry is constantly
increasing. According to statistics from the General Statistics Office (GSO) and the
Vietnam Textile and Garment Association (VITAS), as of 2023, there were approximately
7,000 textile and garment businesses nationwide. Of these, 80% were small and medium-
sized enterprises (SMEs), and 40% were FDI enterprises. Meanwhile, many large
companies from China, Japan, India, South Korea, and Taiwan are investing in smart
factories in Vietnam. The industry employs 3 million workers, with 70% of its capacity
dedicated to production. The total number of Vietnamese textile and garment businesses
has been trending upwards from 2011 to 2023, significantly contributing to the industry's
consistent ranking among Vietnam's key export items. Only 30% of businesses (including
foreign-invested enterprises and large domestic enterprises) have applied automation to
individual production stages. Of these, less than 5% have plans to implement fully
connected automation technology.
The textile and garment industry experienced significant market fluctuations and
international policy changes in 2025. Specifically, escalating US-China trade tensions led
to tariffs on many textile and garment products, coupled with a complex geopolitical
landscape and reduced purchasing power in the US and EU. As consumers tightened their

561