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[Research Contribution] A Model for Assessing the Impact of Accounting Data Analytics on Sustainable Information Presentation in the Public Sector

27 December, 2025

Keywords: public sector, data analytics, sustainable information, financial reporting

The Vietnamese government’s orientation towards sustainable development applies to all public and private sector entities. To provide information for implementing activities in line with sustainability goals, data from financial and accounting work plays a crucial and central role in assessment. In practice, evaluating financial or non-financial information is not simple, making data analytics necessary to help users fully understand the results produced and to align them with each entity’s sustainability criteria. This study by an author from the University of Economics Ho Chi Minh City (UEH) proposes a comprehensive assessment model that clarifies the mechanism by which accounting data impacts the effectiveness and reliability of sustainability reporting.

The Global Context and the Role of the Public Sector in Sustainable Development

Faced with growing challenges such as resource depletion, environmental degradation, and social inequality, the need for a sustainable economy and society has become more urgent than ever. Sustainability has thus become a top priority for organizations worldwide, especially in a global business context fraught with environmental and social risks (Carvajal & Nadeem, 2023).

Sustainability reporting—also known as non-financial or ESG reporting—is seen as a tool for organizations to demonstrate responsibility and transparency in achieving sustainability goals. These reports provide stakeholders with reliable assessments of environmental and social impacts, regardless of short-term economic performance.

In this context, the public sector plays a unique role by promoting public welfare, protecting resources, and fostering collaboration with society and the private sector to realize sustainable development goals. However, unlike financial reporting, sustainability reporting is not yet mandatory in many countries. High implementation costs and unclear benefits have made many organizations hesitant, although experts argue that the long-term benefits of these reports far outweigh the costs, helping to build trust and credibility in the eyes of the community.

Trends in Digital Transformation and Innovation in Public Sector Sustainability Reporting

Public sector organizations (PSOs) are increasingly using sustainability reporting as a communication and governance tool to enhance transparency and strengthen accountability, although they still lag behind the private sector. In addition, digital transformation and artificial intelligence (AI) are creating opportunities for innovation in public service delivery, encouraging citizen participation in policymaking and monitoring. These advancements are also contributing to the formation of smart cities, aiming for a more sustainable society.

Academics are currently developing theoretical frameworks and empirical evidence on the application of the SDGs in public financial management to improve non-financial reporting, integrate environmental, social, and governance (ESG) factors into decision-making, and promote a sustainable public sector.

Research Gaps and the Need for New Approaches in the Public Sector

The link between digital technology and accounting is attracting growing interest in the private sector, but related research in the public sector remains limited. Early studies have primarily focused on the potential of the internet and web platforms as channels for citizens to access public financial information, enhancing transparency and community participation in policy evaluation. The integration of emerging technologies like AI, big data, and automation into public governance is opening up significant innovation opportunities in financial and non-financial reporting, helping to change how stakeholders interact with and monitor organizational performance.

However, in developing countries, the quantity and quality of sustainability reports remain low. In Vietnam specifically, most academic research has focused on international public sector accounting standards and financial information quality, while sustainability reporting in the public sector remains an under-researched area—reflecting a significant gap in efforts to connect digital technology with sustainable development in modern public governance.

The call to expand research on sustainability reporting is gaining traction among academics and public accounting professionals, with a focus on the role of practitioners and accountants in promoting sustainable development (Manes-Rossi et al., 2020). However, most prior studies have concentrated on the intention to adopt or continue using these reports, while the intention to change behavior—a key factor in the innovation process—remains underexplored.

In response, this study proposes a new approach by combining the Push-Pull-Mooring (PPM) model and the Capability-Opportunity-Motivation-Behavior (COM-B) model. This framework is used to analyze the impact of digital technology and behavioral factors on the role of stakeholders in preparing public sector sustainability reports, helping to bridge the current theoretical and practical gaps.

Applying Data Analytics and Governance Innovation to Enhance Transparency and Sustainable Development in the Public Sector

This study develops and validates a new conceptual framework to analyze the relationship between Accounting Data Analytics (ADA) and the Quality of Digital Sustainability Reporting (QDSR), while also examining the mediating role of a Sustainable-Governance-Oriented Internal Control System (SGICS).

The research employs a three-stage mixed-methods approach, including expert interviews, document analysis, and a quantitative survey of public sector organizations in Vietnam. The qualitative stage helped identify measurement variables and key issues through semi-structured interviews and a review of specialized literature. Subsequently, quantitative data was collected through two survey waves and analyzed using the PLS-SEM model in SmartPLS 4.1.0.3 to test the relationships between the factors in the model.

The research confirms that ADA has a positive and significant impact on the Quality of Digital Sustainability Reporting (QDSR) in both survey periods (2023–2024). This is one of the earliest empirical findings demonstrating the prominent role of ADA in enhancing the effectiveness of sustainability reporting in the public sector.

The results also expand our understanding of the application of AI, particularly generative AI based on large language models (LLMs), in accounting information systems. The integration of LLMs helps PSOs collect, process, and analyze big data (both structured and unstructured), detect anomalies, forecast risks, and enhance transparency through real-time reporting—all of which are key factors for QDSR.

Furthermore, SGICS was found to be a partial mediator in the relationship between ADA and QDSR. This indicates that a sustainability-oriented internal control system (integrating SDGs and green innovation) not only mitigates reporting risks but also enables PSOs to leverage ADA more effectively.

This finding also reinforces previous research on the role of accounting information systems in promoting internal control, showing that AI helps strengthen the monitoring and operational control capabilities of PSOs.

From these findings, the author proposes the following policy implications:

At the organizational level (PSOs), there is a need to:

Prioritize the implementation of ADA to enhance the quality of digital sustainability reporting.
Invest in digital infrastructure, modern technology, and the automation of accounting processes.
Strengthen the role of the accounting team in developing the accounting information system.
Establish continuous training programs on AI and digital transformation for accounting personnel.
Improve the SGICS with a proactive orientation to ensure risk control and enhance operational effectiveness.

At the government and policymaking level, there is a need to:

Issue legal frameworks, incentive policies, and support programs for the digital transformation process in PSOs.
Provide digital skills training for public officials and support the development of internal digital training platforms for PSOs.
Create mechanisms for financial and advisory support to help PSOs overcome technical and capacity barriers during digitalization.

At the international standards level (IPSASB), there is a need to:

Prioritize refining the process for preparing and presenting digital sustainability reports.
Establish requirements for integrating digital technology and AI into public accounting, and expand standards to cover social, environmental, governance, and green growth issues in a manner appropriate for the digital age.

Authors: Assoc. Prof. Dr. Pham Quang Huy, MA. Vu Kien Phuc – University of Economics Ho Chi Minh City

This article is part of the series spreading research and applied knowledge from UEH with the message “Research Contribution For All.” UEH cordially invites readers to look forward to the next UEH Research Insights newsletter.

News, photos: Authors, UEH Department of Communications and Partnerships

Chân Trang (1)