PUBLIC SECTOR ACCOUNTING AND THE TECHNICAL AND DATA QUALITY BARRIERS IN VIETNAM’S CURRENT DECENTRALIZED SYSTEM

Abstract

This article analyzes the technical barriers and data quality issues currently impeding the effectiveness of Public Sector Accounting (PSA) within Vietnam’s two-tier governance model.

The technical barriers primarily stem from the lack of synchronization between the Treasury and Budget Management Information System (TABMIS) and the internal accounting systems at the local level. The fact that PSA data, especially at the district/communal level, is often fragmented, non-standardized, and affected by uneven technological capacity, has severely compromised the accuracy and timeliness of information.

The data quality problem directly leads to serious consequences: Difficulties in consolidating financial reports across different levels, increased time and cost for budget finalization processes, and reduced reliability of information. This hinders the provincial authorities’ ability to effectively monitor expenditure performance and make resource allocation decisions based on comprehensive data.

To overcome these challenges, a synchronized technological solution is required, such as upgrading the data infrastructure and applying AI/RPA tools to automate and standardize data from the source, thereby improving the transparency and accountability of the public financial system.