Digital Transformation in the Accounting Sector of Vietnamese SMEs

Digital transformation is reshaping the accounting practices of small and medium-sized enterprises (SMEs) in Vietnam. This paper presents a qualitative analysis of the drivers, challenges, and implications of accounting digitization in Vietnamese SMEs, drawing on current literature, industry reports, and practitioner insights. The national context is considered, highlighting how government initiatives and market forces spur digital adoption, while resource constraints and skill gaps impede progress. Key digital technologies – including cloud-based accounting systems, enterprise resource planning (ERP), artificial intelligence (AI), and robotic process automation (RPA) – are examined in terms of their adoption and impact on accounting processes. The findings indicate that Vietnamese SMEs pursue digital transformation to enhance operational efficiency, decision-making, and competitiveness, yet face significant obstacles such as high implementation costs, limited IT infrastructure, resistance to change, and regulatory misalignment. These challenges have critical implications: business processes are being reengineered for real-time financial reporting, the accounting workforce must acquire new digital skills, and regulators are gradually updating frameworks (e.g., e-invoicing mandates) to accommodate digital practices. The discussion is structured to provide a critical review of existing research and practice, without offering explicit recommendations, focusing instead on understanding the transformative changes and their implications for the accounting function in Vietnamese SMEs.