Improving Digital Accounting Effectiveness in Vietnam’s Digital Transformation: Theoretical Analysis and Solutions

Digital transformation is reshaping accounting practices worldwide, requiring a shift from traditional manual methods to digital accounting systems. This paper provides a theoretical framework for digital accounting and examines its role in the broader digital transformation agenda, with a focus on Vietnam. The current status of digital accounting adoption in Vietnam is analyzed, highlighting progress and persistent challenges such as limited technology integration, skill gaps, and regulatory hurdles. Drawing on literature and Vietnamese policy documents, the study proposes strategic solutions to enhance the efficiency and effectiveness of digital accounting. Key recommendations include strengthening top management support and digital awareness, upgrading legal frameworks (e.g., e-transactions laws and accounting standards) to accommodate digital records, investing in robust IT infrastructure and cybersecurity, and developing human resources through education and training in digital skills. The paper also emphasizes the Vietnamese government’s initiatives such as mandatory e-invoicing and national digital transformation programs and recommends further support for small and medium-sized enterprises (SMEs) in their digital accounting journey. The findings contribute to a deeper theoretical understanding of digital accounting in an emerging economy and offer practical insights for policymakers and practitioners to leverage accounting digitization for Vietnam’s sustainable development in the digital era.