The overall accounting of the State Treasury is the most complex operational process in the public financial management system. It's not simply a matter of adding up numbers, but rather a process of collecting, processing, eliminating internal transactions, and consolidating reports from tens of thousands of budget units, budget levels, and off-budget state financial funds.
Why should we pay special attention to the State Treasury's overall accounting system by 2026? Firstly, it is the most important tool for the Government to fulfill its accountability to the National Assembly and the people regarding the management and use of public resources. Secondly, in an economy that demands flexibility, data from this system provides real-time data that helps policymakers make accurate decisions on public investment, public debt control, and money supply regulation. Successfully implementing the State Treasury's overall accounting system is the strongest commitment to transparency from Vietnam to international financial institutions such as the International Monetary Fund (IMF) and the World Bank.
Legal framework and operating standards for the State Treasury General Accounting system.
To ensure authenticity and accuracy, the State Treasury's general accounting operations are built on a solid legal foundation. By 2026, the system of legal regulations will have been perfected to be fully compatible with international standards.
- Accounting Law and State Budget LawThese are two laws that regulate the scope, subjects, and principles of accounting. In particular, the amendments to the guiding circulars in the 2024-2025 period have created a favorable environment for electronic data connectivity.
- Decree 25/2017/ND-CPThis document defines the responsibilities of the State Treasury in presiding over the preparation of the State Financial Statements. By 2026, post-audit procedures based on this Decree will be fully automated.
- The Vietnamese Public Sector Accounting Standards (VPSAS): The full application of VPSAS standards in the overall accounting of the State Treasury is a significant leap forward. It not only aligns Vietnam's financial language with international standards (IPSAS), but also makes it easier for foreign investors to assess the risk and potential of the Vietnamese market through public financial indicators.
The most significant breakthrough is the radical shift from cash-based accounting to accrual-based accounting. This allows the State Treasury's general accounting system to reflect not only existing cash flows, but also contingent liabilities, infrastructure asset values, and resource assets, which were previously often overlooked in traditional reports.
Modern operating procedures of the State Treasury General Accounting system.
By 2026, the State Treasury's overall accounting process will no longer consist of thick stacks of paper documents. Instead, it will be a closed-loop process on a digital platform with three key stages:
Collecting and digitizing multidimensional data.
The State Treasury acts as a massive data receiving funnel from first-level budget units, tax authorities, customs, and project management boards. Information collection for the State Treasury's general accounting is now carried out through the National Data Interconnection Platform. All transactions, from public procurement and salary payments to infrastructure investments, are recorded immediately using unique identifiers, ensuring that input data is always clean and accurate.
Processing logic and excluding insider transactions.
This stage requires the highest level of expertise. In the state financial system, expenditures from one level may become revenues for another. To avoid "inflating" the scale of finances, the State Treasury's general accounting system must use automated algorithms to reconcile and eliminate internal transactions. For example, aid from the central budget to local budgets must be deducted during consolidation to accurately reflect the actual revenue and expenditure of the entire nation.
Analyze, approve, and publish the report.
After the data is compiled, the State Treasury's overall accounting reports will be reviewed by an AI system to detect unusual fluctuations. These results are then confirmed by the State Audit Office before being submitted to the Government and the National Assembly. Transparency is demonstrated by the fact that key indicators are updated on the dashboard at the Ministry of Finance's electronic portal, allowing all citizens to monitor the use of tax money.
See more: Instructions on the procedure for submitting reports to the State Accounting Office.
Strategic reports in the State Treasury General Accounting
The final product of the State Treasury's overall accounting work is a set of four key reports, each playing a different role in national governance:
- State financial statement: This is the national balance sheet. It shows how much assets the State holds (from cash and foreign exchange reserves to infrastructure projects such as highways and airports) and how much domestic and international debt it has.
- Report on the performance of state finances: Reflects the efficiency of the system's operation. Within the State Treasury's overall accounting system, this report helps assess whether revenue from taxes and fees is sufficient to cover operating costs and generate a surplus for development investment.
- Cash flow statement: Provides information on the country's liquidity, helping the government coordinate cash flow smoothly and avoid capital stagnation or localized cash shortages.
- Explanatory report on state financial statements: This is the most important part of the overall accounting of the State Treasury, providing a detailed explanation of the accounting policies applied, major fluctuations, and potential future financial risks.
Technological breakthroughs elevate the overall accounting work of the State Treasury.
By 2026, technology will no longer be a supporting tool but will become the foundation of the overall accounting system of the State Treasury.
- Artificial intelligence (AI) and machine learning: AI is trained to identify spending patterns. If a budget unit exceeds its spending limit or shows signs of splitting contracts into smaller packages to circumvent regulations, the State Treasury's overall accounting system will immediately issue an early warning signal, helping to prevent waste and corruption at its source.
- Blockchain technology in data security: To ensure the integrity of financial ledgers, large budget transactions have begun to be tested for recording on a blockchain platform. This makes the overall accounting data of the State Treasury impossible to tamper with illegally, creating absolute trust among stakeholders.
- Big Data and Forecasting Analytics: Possessing a massive database accumulated over many years allows the State Treasury to forecast budget revenue and expenditure trends with an accuracy of up to 951 TP3T. This transforms the State Treasury's overall accounting report from a tool for past statistics into a compass for the future.
Real-world challenges and adaptation solutions for 2026
The State Treasury's general accounting system still faces significant challenges in its practical operation:
- The issue of public asset valuation: Valuing non-financial assets such as land, mineral resources, or cultural heritage for inclusion in the State Treasury's overall accounting system remains a difficult problem. The current solution is to apply valuation methods based on market prices combined with long-term use value.
- Local infrastructure synchronization: Some remote areas still face difficulties in connecting to real-time data. The State Treasury is promoting the provision of cloud accounting platforms to help these units conveniently prepare comprehensive State Treasury accounting reports.
- Human resource quality: State accountants not only need to be proficient in their profession but also possess the mindset of a data analyst. Continuous training and certification of experts in state treasury accounting is a top priority for the finance sector today.
Towards the goal of a Digital Treasury by 2030 and a Treasury with 3 zeros.
The overall accounting work of the State Treasury is the foundation for realizing the goal of a "Treasury with 3 zeros":
- No cash
- No paper documents
- No customers at the office.
When all transactions are digitized, the generation of consolidated reports will happen almost instantly.
By 2030, the State Treasury's general accounting system will become part of the national open data ecosystem. There, not only managers but also research organizations, businesses, and citizens will be able to access deidentified public financial data to support economic development and social oversight.
Conclude
In the context of public financial management increasingly demanding transparency, speed, and predictability, the general accounting work of the State Treasury has gone far beyond the role of a purely accounting operation to become a strategic foundation in national macroeconomic management.
From consolidating budget data, controlling public assets, managing public debt to providing information for policy planning, the State Treasury's general accounting is central to the modern public finance system. 2026 marks a significant shift as the State Treasury moves closer to a digital treasury model, operating based on real-time data, artificial intelligence, and international public accounting standards.
The completion of the State Treasury's overall accounting system not only helps the Government enhance its accountability to the National Assembly and the people, but also builds strong trust with international financial institutions such as the International Monetary Fund (IMF) and the World Bank. This is a crucial foundation for Vietnam to promote sustainable growth, attract investment, and improve national competitiveness in the digital age.
For businesses, organizations, and even citizens, understanding the operational mechanisms of the State Treasury's general accounting system not only helps them grasp the true nature of public finance but also enhances their awareness of their responsibility to monitor and contribute to the development of the national economy.
If your business needs in-depth consulting on public accounting, financial reporting standardization, tax compliance control, or updates on the latest financial policies for 2026, proactively connecting with a reputable professional firm like MAN – Master Accountant Network This will help mitigate risks and optimize operational efficiency in a sustainable manner.
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Content production by: Mr. Le Hoang Tuyen – Founder & CEO of MAN – Master Accountant NetworkCPA Vietnam auditors with over 30 years of experience in accounting, auditing, and financial consulting.
