The Knowledge and Skills Gap: Challenges in Training and Self- Training in Environmental Accounting for Vietnam's Accounting Workforce

competency framework for environmental accountants in Vietnam, comprising three main groups: Professional Knowledge: This includes a deep understanding of international sustainability reporting standards and frameworks such as the Global Reporting Initiative , the Sustainability Accounting Standards Board , and the Task Force on Climate-related Financial Disclosures . Additionally, accountants need to master technical methods such as the greenhouse gas inventory process according to the GHG Protocol, methods for valuing environmental assets and liabilities, as well as future regulations on carbon taxes and carbon credit markets. Technical Skills: This focuses on the ability to apply knowledge in practice, including skills in collecting and analyzing non-financial data; designing and operating internal control systems for ESG data to ensure accuracy and reliability; and performing audit procedures or providing assurance services for sustainability reports. Business and Leadership Skills: This group of skills helps add value to environmental accounting information, including strategic thinking to integrate sustainability factors into the business model; effective communication skills to present complex environmental issues to stakeholders; and the ability to work cross-functionally (with engineers, environmental experts, production departments) to lead and manage change throughout the organization. This competency framework will serve as the basis for analyzing, comparing, and evaluating the current state of training in Vietnam in the subsequent sections of the paper. 2.3. Overview of Accounting Education in Vietnam The accounting education system in Vietnam is structured quite tightly under the parallel management of the Ministry of Education and Training and the Ministry of Finance. The Ministry of Education and Training is responsible for issuing the framework curriculum for university and college levels, creating a common knowledge base. Meanwhile, the Ministry of Finance plays a role in professional orientation, issuing accounting standards, and managing professional certification exams, ensuring the quality of graduates for the labor market. JAFM Professional associations such as the Vietnam Accounting and Auditing Association and the Vietnam Association of Certified Public Accountants play an important role in providing continuous professional development and knowledge updates for their members. However, many previous studies have pointed out a significant gap between the content of education at institutions and the practical requirements of businesses (Bui, 2024; Le et al., 2022). The curriculum is often criticized for being heavy on theory and slow to update with new trends in modern accounting, such as digital transformation or the integration of non- financial information. This situation creates a major barrier, making the integration of complex and interdisciplinary content like environmental accounting into the curriculum and the self- training activities of the accounting workforce particularly challenging. Based on the synthesis of foundational theories and analysis of the practical context, the study proposes an analytical framework to systematize the main influencing factors. This framework clarifies the relationship between the influencing factors and the knowledge and skills gap in environmental accounting, as detailed in Figure 1. Figure 1: Analytical framework of factors influencing the knowledge and skills gap in environmental accounting Source: Author's compilation 3. Research Methodology The study was conducted using a qualitative research methodology, in which the two main techniques employed were desk research and content analysis. This method allows for the in- depth synthesis and evaluation of available secondary data to identify trends, requirements, and the current situation regarding environmental accounting competency in Vietnam. The data sources were systematically collected and analyzed, comprising four main groups: (i) Core legal documents: Decree No. 06/2022/NĐ-CP on greenhouse gas emission mitigation and ozone layer protection, and Decision No. 01/2022/QĐ-TTg on the list of sectors and establishments required to conduct greenhouse gas inventories. (ii) Formal training programs: Detailed syllabi of courses related to accounting, auditing, and sustainable development at 05 leading economics-focused universities. JAFM Professional development materials: Content of Continuing Professional Development programs, workshop materials, and professional publications from the Vietnam Association of Certified Public Accountants , ACCA, and CPA Australia in Vietnam. (iv) Corporate reports: Annual reports and sustainability reports for the 2023-2025 period of 15 representative listed companies in the manufacturing, energy, and service sectors. All collected data will be coded, systematized, and cross-referenced with the 'Reference Competency Framework for Environmental Accounting' developed in section 2. Through this process, the study will identify and clarify the specific 'gaps' in the knowledge and skills of the accounting workforce. 4. Research Findings By applying desk research and content analysis of the identified secondary data sources, the study has identified and clarified significant 'gaps' in the knowledge and skills of Vietnam's accounting workforce regarding environmental accounting. These results are analyzed and discussed in detail through the lenses of the formal education system, professional training, and corporate practice. 4.1. Analysis of the 'Gap' in Formal Education at Universities An analysis of the detailed syllabi of courses in the Accounting - Auditing faculties of 05 leading economics universities in Vietnam reveals a picture with many shortcomings. Specifically, only 1 out of 5 universities offers a specialized elective course on 'Sustainability Accounting' (3 credits). At the other 4 universities, content related to environmental accounting is only modestly integrated, with a duration of 2 to 3 sessions within courses like 'Advanced Management Accounting' or 'Accounting Information Systems 3'. This content mainly stops at introducing concepts of environmental costs and sustainability reporting, without delving into the technical aspects of identification, measurement, recording, and presentation of information according to international standards like the GRI Standards or the newly issued standards by the International Sustainability Standards Board . Furthermore, no university has made environmental accounting a compulsory subject in the undergraduate curriculum. The 'gap' in formal education can be explained by three main reasons. First, environmental accounting and ESG (Environmental, Social, and Governance) issues are a relatively new field in Vietnam, and legal requirements like Decree 06/2022/NĐ-CP have only recently come into effect and started to create initial pressure. Second, there is a serious shortage of well-trained faculty with deep expertise and practical experience in this field to develop and teach new courses. Third, the inertia and delay in updating the framework curriculum by the Ministry of Education and Training, as well as by the universities themselves, are inherent barriers that slow down the integration of new, interdisciplinary, and urgent knowledge into the formal curriculum. 4.2. Analysis of the 'Gap' in Professional Training and Certification A review of the history of Continuing Professional Development programs by the Vietnam Association of Certified Public Accountants and thematic workshops by ACCA Vietnam during the 2023-2025 period shows a significant increase in the number of events related to sustainability reporting. Specifically, at least 8 workshops were held, attracting great interest from the accounting and auditing community. However, a content analysis reveals that these courses are mainly introductory, updating general trends and overviews of new standards (e.g., IFRS S1 and IFRS S2), with an average duration of only JAFM about 4 hours per workshop. Currently, there is no in-depth, specialized certification program from Vietnam on environmental accounting or sustainability reporting. The dynamism of professional associations shows that they are responding quickly to market demands and new regulations. However, these efforts are merely initial steps, serving as a stopgap for immediate information needs rather than creating a systemic change in the competency of the accounting workforce. Another major barrier is cost. Prestigious international certifications like the FSA (Fundamentals of Sustainability Accounting) Credential from SASB can cost over $1,000 USD, not including other review costs. This fee is a significant financial obstacle for the majority of Vietnamese accountants if they have to pay for it themselves, limiting access to international standard knowledge. 4.3. Analysis of the 'Gap' through the Lens of Corporate Reporting Practices A content analysis of 15 annual reports and sustainability reports from listed companies in the manufacturing, energy, and service sectors shows that the quality of environmental information disclosure is highly inconsistent. Only 4 out of 15 reports had detailed notes on environmental costs (such as waste treatment costs, pollution prevention costs) and were reviewed by an independent party. Notably, in the remaining 11 out of 15 reports, environmental information was often presented qualitatively, in a narrative style, and placed in a separate section compiled by the Public Relations (PR) or Marketing department. Key quantitative indicators such as greenhouse gas emissions (Scope 1, 2, 3), water consumption per unit of product, etc., were often omitted or presented without a clear measurement basis and lacked third-party assurance. This situation indirectly but clearly reflects the skills shortage within the accounting and finance teams themselves. The fact that environmental information is 'pushed' out of the scope of financial reporting and handled by non-financial departments indicates that the accounting department is not yet truly involved or lacks the capacity to collect, process, measure, and present this data reliably. Accountants seem to be struggling to integrate non-financial information into the traditional bookkeeping and reporting processes, leading to companies disclosing environmental information merely for 'window-dressing' purposes rather than treating it as a core part of operational performance. 4.4. Synthesis of Challenges in Accountants' Self-Training Efforts From the analyses above, the study synthesizes four main challenges that an accountant in Vietnam faces when attempting to self-train and enhance their competency in environmental accounting: Lack of systematic resources in Vietnamese: Most standard-setting documents, in-depth guidelines, and case studies are published in English. This is a major language barrier, limiting the ability of the majority of accountants to access and conduct in-depth research. 'Information noise' from multiple standards: The simultaneous existence of various guidance frameworks and reporting standards (GRI, SASB, TCFD, and now IFRS S1, S2) creates a complex 'matrix' of information, leaving self-learners unsure where to start and which standard is appropriate for their company. Lack of motivation and support from the organization: As the analysis in section 4.3 shows, many companies have not yet truly recognized the strategic importance of environmental accounting. Consequently, they do not provide time and are unwilling to invest in costs for employees to attend specialized training courses, which reduces the self-development motivation of the workforce. JAFM Barriers of cost and time: The pressure of daily work makes it difficult for accountants to find enough time to self-study a completely new field. Combined with the cost barrier of high- quality courses, self-training becomes extremely difficult. Table 1: Summary of Knowledge and Skill Gaps in Environmental Accounting Category Manifestation of the 'Gap' Evidence / Indicative Data Formal Education - Lack of specialized, compulsory subjects. - Superficial, introductory integrated content. - 1/5 universities have an elective course; 4/5 only integrate 2-3 sessions. - No compulsory subjects. Professional Training - Short-term courses, lacking in-depth knowledge. - No domestic professional certification. - CPD courses by VACPA, ACCA are mainly general introductions (~4 hours duration). - High cost of international certifications (>$1,000 USD). Corporate Practice - Inconsistent quality of environmental reporting. - Limited involvement of accountants in the reporting process. - 4/15 reports were reviewed; 11/15 reports were prepared by PR/Marketing departments. - Lack of quantitative data and third- party assurance. Self-training Efforts - Difficulties in accessing materials, choosing a learning path, and lack of motivation. - Materials are predominantly in English. - Multiple standards (GRI, SASB, IFRS) cause information noise. - Companies do not invest in training. Source: Author's compilation 5. Conclusion and Implications 5.1. Conclusion This study confirms the existence of a profound and multifaceted 'competency gap' in environmental accounting (EA) among the accounting workforce in Vietnam. This gap is not an isolated issue but a systemic challenge, stemming from both the 'supply' side—the formal and professional training systems which are inadequate, lacking depth, and slow to update— and the 'demand' side—the limited awareness and requirements from businesses, which have not yet created a sufficient impetus for change. This synchronous deficiency is creating a significant barrier, slowing down the process of integrating sustainability factors into the accounting and reporting activities of Vietnamese enterprises in the context of international integration. 5.2. Contribution of the Study Academically, this paper is one of the pioneering studies in Vietnam to systematize and analyze the challenges in EA training and self-training based on a review of multi-source literature, including scientific works, training curricula, and corporate reports. The study provides a panoramic view, clearly identifying the 'bottlenecks' in the education system, professional training, and corporate practice. These results are not only valuable for reference but also serve as an initial scientific basis, providing direction for more in-depth empirical research in the future. JAFM 5.3. Policy Implications and Solutions From the research findings, the paper proposes several synergistic policy implications and solutions for relevant stakeholders: For higher education institutions: There is an urgent need to review and reform the accounting and auditing training curricula. In the short term, it is necessary to develop and introduce EA as a compulsory subject or at least a specialized elective, instead of just integrating a few introductory sessions. Enhancing collaboration with businesses to build practical case studies on environmental reporting in Vietnam will help improve the applicability and appeal of the subject. For professional associations (typically VACPA): They need to take the lead in developing and issuing a competency framework and specific professional ethics standards for 'sustainability accountants.' More importantly, researching and developing 'made in Vietnam' professional certification programs in EA with content relevant to the domestic context and at a reasonable cost will be a crucial lever to encourage the accounting community to participate in training. For state management agencies (Ministry of Finance, Ministry of Education and Training): The Ministry of Finance should soon issue circulars and detailed guidelines on accounting for environmental costs and the non-financial indicators to be presented in reports. Concurrently, there should be coordination to create incentive mechanisms and policies (such as tax incentives, financial support) for universities and businesses to invest in research, training, and the application of 'green skills' in the accounting field. For accountants themselves: Each accountant needs to clearly recognize that EA is no longer a distant concept but an inevitable trend in the profession. There is a need to shift from a passive to a proactive mindset, viewing the acquisition of sustainability-related accounting skills as a strategic investment for their future and personal development. 5.4. Limitations and Future Research Directions The study has certain limitations. As the primary method was desk research, the paper could not directly survey and capture the perceptions, attitudes, and practical experiences of individual accountants. The analysis of corporate report quality is also only an indirect indicator of the accounting workforce's competency. To overcome these limitations and deepen the findings, future research should be conducted using empirical approaches. Specifically, quantitative studies through large-scale surveys are needed to assess the prevalence of the competency gap and influencing factors. Simultaneously, qualitative studies such as in-depth interviews with experts, managers, and accountants, or case studies at enterprises, will provide deeper and more multidimensional insights into this issue. JAFM References ACCA. (2023). Green finance skills: The guide. The Association of Chartered Certified Accountants. Retrieved from https://www.accaglobal.com/gb/en/professional- insights/pro-accountants-the-future/green-finance-skills.html Bebbington, J., & Larrinaga, C. (2014). Accounting and sustainable development: An exploration. Accounting, Organizations and Society, 39(6), 395–413. Bui, T. (2024). A study of the development of accounting in Vietnam (Doctoral dissertation, RMIT University). CIMA. (2019). CGMA Competency Framework. The Chartered Institute of Management Accountants. Retrieved from https://www.cgma.org/resources/tools/competency- framework.html Deegan, C. (2002). The legitimising effect of social and environmental disclosures – a theoretical foundation. Accounting, Auditing & Accountability Journal, 15(3), 282– 311. DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160. Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman Publishing. Government of Vietnam. (2022). Decree No. 06/2022/NĐ-CP dated January 7, 2022, on the mitigation of greenhouse gas emissions and protection of the ozone layer. Retrieved from https://thuvienphapluat.vn/van-ban/Tai-nguyen-Moi-truong/Nghi-dinh-06-2022- ND-CP-giam-nhe-phat-thai-khi-nha-kinh-va-bao-ve-tang-o-don-500104.aspx IFAC. (2021). International Education Standard 2, Initial Professional Development – Technical Competence (Revised). International Federation of Accountants. Retrieved from https://www.ifac.org/system/files/publications/files/IAESB-IES-2-Revised.pdf LE, D. T. H., NGUYEN, L. D. B., PHAN, C. L. N., VU, T. M., & PHAN, H. T. (2022). Factors affecting training quality and student satisfaction: An empirical study in Vietnam. The Journal of Asian Finance, Economics and Business, 9(4), 391-398. Vietnam Accounting and Auditing Association . Retrieved from https://vaa.net.vn/ Vietnam Association of Certified Public Accountants . Retrieved from https://vacpa.org.vn/