～Learn why stocktaking is essential for retailers in Vietnam, from inventory visibility and financial closing to accurate profit calculation and transparent inventory valuation.～
Why Is Stocktaking Necessary?
Accurate inventory visibility is essential for successful retail operations.
In the retail industry, stocktaking is one of the most important activities for maintaining effective store management. Stocktaking can generally be divided into two types: book inventory, which refers to inventory recorded in accounting or inventory management systems, and physical stocktaking (physical inventory count), which involves counting actual products in stores, stockrooms, or warehouses.
The inventory shown in records does not always match the actual inventory available on-site. Differences can occur due to operational errors, processing delays, damaged goods, theft, or other factors. To identify and correct these discrepancies, retailers need to conduct regular physical inventory counts.
However, stocktaking is not simply about counting products accurately. It is a process that provides reliable data for business decisions. Objectivity and integrity are equally important, as inventory figures should not be affected by fraud, bias, or internal manipulation. This is one reason why many retailers use third-party stocktaking services. An independent service provider can conduct inventory verification from a neutral perspective, helping improve the credibility of inventory records.
As Vietnam’s retail industry continues to expand, with modern retail formats such as convenience stores, supermarkets, specialty stores, and shopping malls becoming increasingly widespread, inventory accuracy has become more important than ever. Demand fluctuations related to Tet holiday demand, public holidays, seasonal campaigns, back-to-school periods, year-end promotions, tourism activity, and major shopping events can create additional inventory management challenges. In this environment, regular and reliable stocktaking plays a critical role in supporting sustainable business growth.
Purpose of Stocktaking ①: Financial Closing and Profit Determination
One of the primary purposes of stocktaking is to determine the value of inventory required for financial closing. Without knowing how much inventory a business actually holds at the end of an accounting period, it is difficult to calculate profit accurately.
Retailers purchase products and generate revenue through sales. However, not all products purchased during an accounting period are sold within that same period. By confirming remaining inventory and determining its value accurately, businesses can calculate cost of goods sold and gross profit with greater precision.
Accurate profit calculations form the basis for tax reporting, management analysis, budgeting, and future business planning. For this reason, stocktaking conducted at the time of financial closing is considered a fundamental business process in retail operations around the world, including Vietnam.
Stocktaking also contributes to greater transparency in inventory valuation. Various valuation methods are commonly used, including the retail inventory method, specific identification method, average cost method, and first-in, first-out (FIFO) method. Because different methods may produce different financial results, companies should apply inventory valuation consistently and avoid changing methodologies without careful consideration.
When inventory is evaluated using consistent rules and supported by reliable stocktaking data, businesses can improve the credibility of their financial information and strengthen confidence in management decision-making.
In addition, accurate inventory records serve as the foundation for digital inventory management initiatives and automated ordering systems. When inventory data is inaccurate, replenishment decisions can become unreliable, potentially leading to inventory shortages or excess stock. Regular stocktaking helps ensure that operational systems are supported by dependable data.
For more information about our stocktaking services, please refer to the page below.
👉 Stocktaking service – AJIS Vietnam
Editor: AJIS Group
AJIS Group is a global corporate group led by AJIS Co., Ltd., which has been a leading provider of stocktaking services and retail support services in Japan. The Group operates in the United States, China, Hong Kong, Taiwan, South Korea, Singapore, Malaysia, Thailand, Vietnam, and the Philippines.
With a proven track record of working with more than 3,000 companies and supporting a cumulative total of over one million stores annually, AJIS Group helps address a wide range of challenges faced by the retail and distribution industries. Its services include stocktaking, store operations support, sales floor improvement, and promotional support.
By providing practical services tailored to the market characteristics of each country and region, AJIS Group contributes to improving store operational efficiency and enhancing the value of sales floors.
