Factors affecting accrual accounting reform and transparency of performance in the public sector in Vietnam

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This study was conducted to determine the factors and their influence on accrual accounting reform in the public sector in Vietnam. Combining qualitative and quantitative research methods based on empirical surveys of 268 accountants, controllers, and auditors working in state agencies such as the Department of Finance, state treasuries and agencies receiving revenues from the state budget in 2019. This study shows that six factors influence the reform of the accounting system in the public sector in Vietnam to accrual-based: accounting staff – especially their expertise, competence, and work experience; training and support of the consulting experts; costs of the accounting reform; level of information technology application; funding and assistance from international organizations; legal environment.
At the same time, the accrual-based accounting reform will have a positive impact on improving the transparency and efficiency of public sector operations in Vietnam. Among the factors affecting accounting reform, the legal environment factor is the most influential determinant, followed by the contingent of accountants. The study’s limitation is that the new experimental investigation is only conducted with a small sample size and in a short period. However, the research results are also a useful reference for those who are interested in the context that Vietnam is preparing to have strong reforms in accounting in the public sector in the coming time.

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    • Figure 1. Conceptual model
    • Figure 2. Testing of CFA (standardized estimates)
    • Figure 3. Testing of SEM (unstandardized estimates)
    • Table 1. Demographic characteristics of respondents
    • Table 2. Test results of Cronbach’s Alpha coefficients on scales
    • Table 3. Results of EFA test
    • Table 4. Composite reliability and variance extracted test
    • Table 5. Results of hypotheses testing
    • Table 6. Factors affecting the accrual accounting reform in Vietnam’s public sector
    • Table 7. Test results of the differences between 2 groups of interviewees
    • Table 8. Test results of the differences between genders
    • Conceptualization
      Phuong-Nguyen Thi Thanh, Hai-Phan Thanh, Tung-Nguyen Thanh
    • Funding acquisition
      Phuong-Nguyen Thi Thanh, Tung-Nguyen Thanh
    • Project administration
      Phuong-Nguyen Thi Thanh
    • Resources
      Phuong-Nguyen Thi Thanh, Hai-Phan Thanh, Tung-Nguyen Thanh
    • Supervision
      Phuong-Nguyen Thi Thanh
    • Writing – original draft
      Phuong-Nguyen Thi Thanh, Hai-Phan Thanh, Tung-Nguyen Thanh, Tien-Vo Thi Thuy
    • Writing – review & editing
      Phuong-Nguyen Thi Thanh, Hai-Phan Thanh, Tung-Nguyen Thanh, Tien-Vo Thi Thuy
    • Investigation
      Hai-Phan Thanh, Tien-Vo Thi Thuy
    • Methodology
      Hai-Phan Thanh
    • Software
      Hai-Phan Thanh
    • Formal Analysis
      Tung-Nguyen Thanh
    • Validation
      Tien-Vo Thi Thuy
    • Visualization
      Tien-Vo Thi Thuy