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BIG DATA ANALYTICS AND ARTIFICIAL INTELLIGENCE IN MONITORING
PUBLIC INVESTMENT EXPENDITURE
TOWARDS SMART PUBLIC FINANCIAL GOVERNANCE

Le Thi Ngoc* , Nguyen Thi Ngoc Phuong , Nguyen Van Hai 3
1
2
1 State Treasury of Vietnam, Ministry of Finance, Hanoi, Vietnam.
2 National Economics University, Hanoi, Vietnam.
3 Hanoi Open University, Hanoi, Vietnam.
(*E-mail: ngoclt@vst.gov.vn)

ABSTRACT
Public investment expenditure (PIE) from the state budget in Vietnam during the
2021-2025 period has been maintained at approximately 26-32% of total state budget
expenditure, equivalent to over 6-7% of GDP annually, reaffirming the pivotal role of
public investment in economic growth and infrastructure development. However,
practical implementation has revealed persistent challenges, including slow disbursement,
adjustments to total investment capital, fragmented allocation, and risks of resource
inefficiency and leakage.
In the context of national digital transformation and the need to strengthen fiscal
discipline, this study analyzes the potential application of Big Data analytics (BDA) and
Artificial Intelligence (AI) in monitoring PIE, aiming toward a Smart Public Financial
Management (Smart PFM) model. The research employs institutional analysis, secondary
data synthesis, and international comparative experience to develop an integrated
framework linking state budget (ST) data, public investment management, and e-
procurement systems.
The results indicate three groups of AI tools with high potential: (i) anomaly
detection in expenditure transactions; (ii) machine learning-based project risk scoring;
and (iii) disbursement forecasting to support proactive fiscal management. Effective
implementation requires robust data governance, algorithm transparency, and clear
accountability mechanisms. The study proposes the development of a Smart Treasury
Platform and a comprehensive public financial data governance framework aligned with
the requirements of the digital economy.
Keywords: Big data analytics; AI; public investment expenditure; public financial
management; fiscal oversight; digital government.

1. Introduction
Against this background deep and widespread digital transformation, with AI
reshaping the way governments operate, the need to enhance efficiency, transparency,
and integrity in the management of PIE has become more urgent than ever. From a legal
perspective, the management of PIE in Vietnam is grounded in the Law on the ST and the
Law on Public Investment, both of which emphasize principles of publicity and
transparency, medium-term resource allocation, and strengthened accountability. At the
same time, the national digital transformation orientation under Decision No. 749/QĐ-
TTg has set out the goal of building a digital government, digital economy, and digital
society, thereby establishing an important institutional framework for applying digital
technologies to public financial governance.

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