Challenges for electronic invoicing systems: A quantitative study of Vietnamese SMEs

1.10.2013 Bachelor of International Business Author Hoang Ngo Group or year of entry GloBBA 2010 Title of thesis Challenges for electronic invoicing systems: A quantitative study of Vietnamese SMEs Number of report pages and attachment pages 64+8 Thesis advisor(s) Heli Kortesalmi, Mika Mustikainen, Jutta Heikkila Alongside the traditional paper invoice, there is another type of invoice that has been around for over a decade but is less popular and less known to firms – the electronic invoice. Today, the e-invoice has gained the attention of many countries in, for example the EU, and Latin America, owing to its major cost saving and increased productivity benefits. In Vietnam, there have been regulations on e-invoices but firms do no show much interest in the system. So far, there have not been any studies about e-invoices in Vietnam and there is thus a great need to carry out a research that could give benefits to all involved parties and to promote the use of the e-invoicing system. This thesis is a quantitative study, aiming to investigate the current barriers, from Vietnamese SME perspectives, of implementing the e-invoice system. Further more, the study also provides an answer to the reasons for long-term use of paper invoice. Companies’ future plans regarding e-invoice are also considered. The thesis is divided into 3 parts: theoretical framework, methodology and results. In general, e-invoices are not popular in Vietnamese SMEs. The adoption rate is low and respondents have relatively little knowledge about the system. Moreover, there are certain barriers to e-invoices, most notably the lack of IT capability, extra investments needed and the paper invoice itself. These factors must be tackled effectively by all the involved parties, in order to increase e-invoice popularity amongst Vietnamese firms, especially SMEs. The future of the e-invoice in Vietnam seems undetermined, since the majority of firms are reluctant to adopt the system in the near future.