Study the Factors Affecting the Readiness to Apply International Financial Reporting Standards of Small and Medium Enterprises in Hanoi

This study explores the factors affecting the readiness of Small and Medium Enterprises (SMEs) in Hanoi City in adopting International Financial Reporting Standards (IFRS). Through qualitative research, the study found that the level of IFRS adoption in SMEs is relatively low, with larger firms and firms with international operations more likely to adopt IFRS. Key factors influencing IFRS readiness include organizational dimensions such as firm size, resources, management perceptions, and expertise; environmental factors such as competition, market demand, and internationalization; and institutional factors such as government policy, regulation, and support. SMEs see benefits such as improved access to capital, enhanced credibility, better decision-making, internationalization support, and regulatory compliance. However, they also face challenges including complexity and cost, lack of expertise, resource constraints, regulatory burdens, and resistance to change. Based on the results of the study, recommendations for policymakers and regulators include providing regulatory support, fostering professional networks, addressing resource constraints, raising management awareness, and fostering a positive organizational culture to facilitate the transition of SMEs to IFRS.