REPORTING RESPONSIBILITIES IN PUBLIC SECTOR ACCOUNTING IN VIETNAM - IN THE CONTEXT OF THE CURRENT TWO-TIER GOVERNMENT SYSTEM

Abstract

Under the two-tier government model (central and local), reporting responsibilities are clearly defined in legal documents such as the Law on Accounting and the State Budget Law. However, practical implementation still faces many challenges. At the central level, management agencies like the Ministry of Finance and the State Treasury have made significant efforts to synthesize and disclose financial information using modern systems. Despite these efforts, a lack of completeness persists because they use a cash basis of accounting. This prevents reports from fully reflecting the overall state of public assets and debt. At the local level, a lack of synchronized information technology and limited capacity among accounting staff are major obstacles. The complex relationship between central and local budgets also makes it difficult to synthesize and reconcile data.

This article primarily focuses on the following topics: The general context and importance of public sector accounting. Reporting responsibilities in public sector accounting.The two-tier government context in Vietnam.The theoretical basis and legal framework for reporting responsibilities in public sector accounting. The current status of reporting responsibilities in public sector accounting in Vietnam.Models of national approaches to decentralized management and reporting responsibilities. Solutions to enhance reporting responsibilities in public sector accounting.

Moving forward, it is essential to perfect the legal framework and apply international public sector accounting standards (IPSAS) to transition to an accrual basis of accounting. It’s also vital to promote the use of information technology and upgrade the financial management system to ensure connectivity and synchronization between different government levels. These measures will advance public sector accounting reform in Vietnam, helping to build a strong and reliable public finance system.