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ABC. Most managers and experts agree that a simpler ABC model is more suitable for the
scale of the majority of Vietnamese textile and garment businesses.
- Information technology infrastructure and system quality: Modern equipment
capable of integrating technology and the quality of the information system also have a
relatively significant impact on ABC adoption. Since this model requires real-time, specific,
and continuous information, ensuring adequate infrastructure and high-quality
information technology systems will contribute significantly to ABC adoption.
The factors above confirm that both internal factors (leadership, personnel,
production characteristics) and external factors (competitive pressure, scale of operations)
play a crucial role in the decision to apply ABC in Vietnamese SMEs in the digital economy.
3.3. Discussion
Survey and interview results have confirmed that experts, accountants, and
business managers are aware of, understand, and accept the ABC model for Vietnamese
digital enterprises. This consensus stems from the benefits this model offers. Overall,
both businesses and experts agree that applying the ABC model is a practical solution to
improve operational efficiency and reduce production costs in the digital economy.
However, businesses need a detailed guidance system for implementing the ABC model in
a way that is appropriate to their size and characteristics in order to further improve the
effectiveness of this approach.
Based on theoretical foundations and surveys of the current situation, the
directions for applying the ABC model in Vietnamese textile and garment enterprises to
improve operational efficiency, reduce costs, lower prices, and move towards
digitalization and greening are proposed below.
a. Applying the traditional ABC model to the textile and garment enterprises in
digital economy
In order to apply the traditional ABC model, businesses need to meet the following
conditions:
- A prerequisite for considering the application of ABC (Average Costing Method) is
that the business must have a large proportion of indirect costs relative to its total costs.
ABC focuses on allocating indirect costs more accurately, rationally, and scientifically,
based on cost-benefit theory. Indirect costs need to account for a sufficiently large
proportion of the business's total costs to ensure that the benefits obtained outweigh the
costs incurred in implementing and maintaining the ABC system. Businesses with many
diverse product lines need to allocate indirect costs across multiple product lines; relying
on traditional costing methods can result in discrepancies in costs and prices.
- For large-scale businesses with abundant resources, professional production
processes, clear management systems, and highly qualified management accounting
teams, ABC (Analysis, Accounting, and Control) is characterized by its complexity, high
implementation costs, requirement for measurable information, and large volume of data.
Therefore, only large businesses with modern, professional production processes can
meet the data requirements and implementation costs. Furthermore, businesses also
need a highly qualified management accounting team to design, implement, and maintain
the ABC system. Businesses need vertical integration between departments: Due to the
large volume of data used in ABC and the data collection involving many different
departments, vertical integration between departments is necessary to provide timely
and accurate information.

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