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INTRODUCTION
1. Essential of the dissertation
Nowadays, leather and footwear is the third largest export sector in Vietnam.
Erwin Schweisshelm (2016) There are about 700 enterprises operating in the leather
and footwear industry, attracting more than one million workers. Export turnover of
the whole industry reached US$ 16.2 billion in 2016, and nearly reached US$ 18
billion in 2017 (Vietnam Leather, Footwear and Handbag Association, 2016a). Under
the common goal of development till 2020, Vietnam Leather and Footwear Industry
will become an important spearhead export industry of the national economy,
continuing to hold a position in the group of world-leading producing and exporting
Leather - Footwear products countries as well as creating more jobs for the society
(Ministry of Industry and Trade, 2010).
The cost management accounting information system is a collection of
information on resources, such as people and equipment, which is to convert financial
data and other data into information on the cost of utility for the manager (Bodnar &
Hopwood, 2001). Not only that, but also a set of related activities, documents and
technologies designed to collect data, process and report information to a group of
internal decision makers (Hurt & Zhen, 2008). The cost management accounting
information system reflects the implementation of input and output costs in the course
of production and business. The cost management accounting information system
helps the administrator understand the current situation of production and business
activities of the enterprise, thereby helping the administrators make timely adjustment
and supplement policies for the production and business activities of the enterprise.
The cost management accounting information system provides information to help
business administrators choose the most optimal business plan among different types
of business plans. The cost management accounting information system is very
essential and useful for the enterprises, helping administrators make the right and
timely decisions. (Dao Thuy Ha, 2015; Le Thi Minh Hue, 2016).
However, some studies and reports show that the leadership of Vietnamese
leather and footwear enterprises are facing obstacles in making decisions: The main
reason is due to the slow access to cost accounting information management, unclear
and consistent information with not high applicability. (Lac Phong, 2016). For finding
the cause of this issue, according to the survey results of leather and footwear
enterprises, only a small number of enterprises have had cost management accounting
information system, mainly foreign-invested enterprises, while the rest of the domestic
enterprises have not organized the cost management accounting information system
because they are not aware of the importance of the information provided by the cost
management accounting in term of business management, or they do not know how to
organize the cost management accounting information system.
Stemming from the above reasons, the dissertation "Organizing the cost
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management accounting information system in Vietnamese leather and footwear
enterprises" was selected by the postgraduate student as the topic of his dissertation to
evaluate the current situation and propose solutions to improve the organization of cost
management accounting information system (AIS) in Vietnamese leather and footwear
enterprises.
2. Research targets
General target: Organizing the cost management AIS in Vietnamese leather
and footwear enterprises.
Specific targets:
(1). Generalize the theoretical basis of the organization of the cost management
AIS, the organizational factors that affect the quality of the the cost management
accounting information in manufacturing enterprises.
(2). Survey into the cost management AIS in Vietnamese leather and footwear
enterprises.
(3). Perform an analysis of organizational factors affecting the quality of the
cost management accounting information in Vietnamese leather and footwear
enterprises.
(4). Suggest solutions which may improve the cost management AIS in
Vietnamese leather and footwear enterprises.
3. Research methodology
This dissertation applies a research methodology combining qualitative and
quantitative research methods. Including:
Secondary data related to general information on the sector or field of research,
etc. is collected through the Ministries’ document system, published research works,
books, magazines. websites of Ministry of Industry and Trade, Vietnam Leather,
Footwear and Handbag Association, Vietnam Leather and Footwear Association, and
websites such as www.moit.gov.vn, www.lefaso.org.vn, www.sla.org.vn. Research of
the above documents gives an overview of Vietnam leather and footwear industry, the
characteristics of the leather and footwear industry, and the contributions of the leather
and footwear industry to the national economy. In addition, other documents which are
scientific research works at home and abroad, and magazines, theses, dissertations, etc.
are also used to summarize and develop basic theoretical issues about the cost
management accounting information and the cost management AIS in manufacturing
enterprises, hence they will be applied to the Vietnamese leather and footwear
enterprises.
For the primary data: The primary data system was collected on the basis of
conducting surveys and investigation in Vietnamese leather and footwear enterprises,
through in-depth interviews and questionnaires. The interview should focus on the
objects as follows: Representatives of Vietnamese footwear enterprises and experts in
the cost management accounting information system in order to identify problems,
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policies and ways for organizing the cost management AIS in Vietnamese footwear
enterprises as well as designing questionnaire. The questionnaire was used to collect
information on the real state of the organization of the cost management AIS in the
Vietnamese leather and footwear enterprises by consulting managers and accountants
in some Vietnamese leather and footwear enterprises.
For data processing tools, this dissertation mainly applied statistical methods of
description and linear regression using SPSS software and applied a number of other
methods such as generalization, collection, summary, analysis, thinking, statistics and
comparisons to make specific assessments and evaluation, hence provide specific
solutions to improve the the cost management AIS.
4. Object and range of research
Object: Research into organizing the cost management AIS in Vietnamese
leather and footwear enterprises.
- Range:
(1). Professional operation: The cost management accounting information
system in Vietnamese leather and footwear enterprises.
(2). Research space: Leather and Footwear enterprises operating in Vietnam.
Researching enterprises operating in the South of Vietnam. According to industry
statistics, leather and footwear enterprises are mainly distributed in the southern
provinces of Vietnam (accounting for 80% of the total number of enterprises
nationwide in 2018), ensuring the representation for the research crowd. In addition,
the sampling method is convenient because the author lived and worked in Dong Nai
province, so that the survey was conducted at businesses in the South of Vietnam.
(3). Research period: Survey data on Vietnamese leather and footwear
enterprises was collected from 2015 to 2018.
5. Scientific significance and practical theory
Theory: The dissertation provides an overview of issues related to the
organization of the cost management accounting information system and the
organizational factors affecting the quality of the cost management accounting
information.
Practical theory: This dissertation makes clear about the fact of the cost
management accounting information system in Vietnamese leather and footwear
enterprises.
Applicability: This dissertation builds a model of organizational factors
affecting the quality of the cost management accounting information in Vietnamese
leather and footwear enterprises. This model helps Vietnamese leather and footwear
enterprises build and complete the cost management accounting information system
organization in general and the organization of the cost management accounting
information system in particular. On the other hand, this dissertation suggests solutions
which may improve the cost management AIS in Vietnamese leather and footwear
enterprises.
6. Structure of the dissertation
In addition to the introduction and general conclusion, the dissertation is
designed into 4 chapters:
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Chapter 1: Make research overview, determine research issues and research
methodology.
Chapter 2: Fundamental theory and general theory of organization of the cost
management accounting information system in manufacturing enterprises.
Chapter 3: Research results of the real state of organizing the cost management
accounting information system in Vietnamese leather and footwear enterprises.
Chapter 4: Solutions to organize the cost management accounting information
system in Vietnamese leather and footwear enterprises.
CHAPTER 1: MAKE RESEARCH OVERVIEW, DETERMINE RESEARCH
ISSUES AND RESEARCH METHODOLOGY
1.1. Overview
Through the overview of the formation and development of the accounting
management in Vietnam, it is found that the accounting management integration in
Vietnam has undergone a strong development through 4 stages. Stage 1: the primitive
stage of the accounting management of which the focus is to research into the content
of the accounting management. Stage 2: This stage has applied content of the
accounting management and the cost management accounting to specific industries.
Stage 3: This stage has focused on building a model of the cost management
accounting for specific industries. Stage 4: This stage has focused on organizing the
cost management AIS for specific industries. During the stage of research into
organizing the cost management AIS for specific industries, no research papers on the
organization of the cost management AIS in footwear enterprises has been performed
in such a way of its effectiveness, especially in terms of quality of the cost
management accounting information.
1.2. Research gaps and determination of research issues
For the model for organization of the cost management AIS: in the research
papers on building the model of the cost management accounting by (Nguyen Hoan,
2012); Pham Thi Thuy (2007); (Tran The Nu, 2011; Tran Thi Thu Huong, 2014) and
organizing the cost management AIS by Nguyen Thanh Hung, 2017), the author has
realized that when it comes the model for organization of the cost management AIS,
previous studies have acknowledged the model of organization of the accounting
management from the perspective of human organization. Accordingly, the
accounting management apparatus is organized in conjunction with the financial
accounting apparatus or accounting management apparatus organized independently
from the financial accounting apparatus, and no research papers on the model for
organization of the cost management accounting information system under the
information system of the cost management accounting has been performed.
Therefore, this is the research gap of the dissertation in term of the model for
organization of the cost management AIS.
For the content of model for organization of the cost management AIS:
research paper by Ho My Hanh (2013) may access to the content of information
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system according to the following contents (1) The organization of information system
on cost estimate; (2) The organization of the information system on cost payment; (3)
The organization of cost information control. Research paper by Le Thi Hong (2016)
may access to the contents of the cost management AIS according to the following
contents (1) Cost identification; (2) Information flow chart; (3) Operation procedure of
the cost management AIS; (4) Technical means of the cost management AIS; (5)
Internal control over the cost management AIS. Research paper by Nguyen Thanh
Hung (2017) may access to the contents of the cost management AIS according to the
following contents (1) Organizing the process of collecting - processing - providing
the cost management accounting information; (2) Organizing the system of support
facilities; (3) Organizing the control of the cost management accounting information.
Thus, no research papers on the cost management AIS in terms of the components that
constitute the cost management AIS has been performed. Therefore, this is also the
research gap of the dissertation in term of the the cost management AIS.
For the factors affecting the organization of the cost management AIS:
research paper by Ho My Hanh (2013) has not mentioned the model of factors
affecting the organization of the cost management AIS; Research paper by Le Thi
Hong (2016) may refer to the model of factors causing the reduction of the cost
management AIS; Research paper by Ngguyen Thanh Hung (2017) may refer to
factors affecting the organization of the cost management AIS in the service
enterprises, such as (1) Quality of input data; (2) Support facilities; (3) Human
resources for accounting; (4) Vision and commitment of the administrators. Thus, the
author thinks that the output of the cost management AIS organization is the quality of
cost management accounting information provided for the administrators. Therefore,
the research gap of the dissertation is determined to be building a model of
organizational factors that affect the quality of the cost management accounting
information and analyzing the degree of impact of each organizational factor on the
quality of the cost management accounting information.
Determining research issues: Based on an overview of the research and
identifying research gaps, the author chose to research into the organization of the cost
management AIS in Vietnamese footwear enterprises with an approach based on the
components that constitute the information system and the research questions,
including:
Question 1: What is the theoretical foundation for the the cost management
AIS in manufacturing enterprises?
Question 2: How is the organization of the cost management AIS implemented
in reality?
Question 3: How do organizational factors affect the quality of the cost
management accounting information in Vietnamese leather and footwear enterprises?