The Role of Lean Accounting in Enhancing Financial Decision-Making in Vietnamese Small and Medium-sized Enterprises

This research investigates the role of lean accounting in enhancing financial decision-making in Vietnamese SMEs, addressing the gap in existing studies regarding the practical adoption and challenges of lean accounting in developing economies. The study aims to explore how SMEs integrate lean accounting into budgeting, forecasting, and cost management, as well as to identify barriers hindering its adoption. A qualitative research approach was employed, utilizing semi-structured interviews with 15 SME owners, financial managers, and accountants, alongside document analysis and field observations across 10 SMEs in Hanoi, Ho Chi Minh City, and Da Nang. The findings reveal that lean accounting improves cost efficiency, enhances financial transparency, and supports agile decision-making, but adoption is limited due to organizational resistance, lack of training, financial constraints, and technological barriers. The study highlights the need for government incentives, professional training programs, and digital tool adoption to promote lean accounting. These results are significant as they provide actionable recommendations for SME owners, policymakers, and educators to facilitate lean accounting integration, ultimately improving SMEs' financial agility, competitiveness, and long-term profitability in Vietnam’s evolving business environment.