Studying Determinants Affecting the Implementation of Environmental Cost Accounting in Manufacturing Enterprises in the Northern Region of Vietnam

Abstract

This paper aims to discuss the determinants playing momentous roles in the implementation of environmental cost accounting in manufacturing enterprises in the Northern region of Vietnam: awareness of accountants, production field, company size, legislation, pressure from involved parties, and human resources. To assist not only managers but also the government of a country where "environmental cost accounting" is still a new definition, such as Vietnam, in promoting the implementation process of environmental cost accounting, a special approach combining the TPB model with five accounting theories has been developed. Data of this research is collected by giving out survey questionnaires to accountants, auditors, and managers working in manufacturing firms in the Northern region of Vietnam. Evaluation of the answers’ quality shows that there are 215 samples deemed as valid. Testing Cronbach’s Alpha, exploratory factor analysis, Pearson Bivariate Correlations, and binary regression show that there are four factors that have a positive impact on the application of environmental cost accounting, with accountant awareness having the greatest impact. The other two factors, human resources and regulation, are, on the other hand, barriers to implementing environmental cost accounting in manufacturing businesses. The authors then used the findings to make recommendations for each factor to aid in the implementation of environmental cost accounting in Vietnamese manufacturing firms. Keywords: environmental cost accounting, manufacturing enterprises, Vietnam. DOI: 10.7176/RJFA/13-6-01 Publication date: March 31 st 2022