Page 317 - Ebook HTKH 2024

DEVELOPMENT OF GREEN FINANCE – A SOLUTION FOR

VIETNAMESE TRANSPORT ENTERPRISES TOWARDS GREEN
GROWTH GOALS

Vu Bich Thuy
157

Abstract: Since the emergence of environmental cost accounting in the 1990s, it has rapidly
spread as an effective tool for environmental management. Leading the way in applying environmental
cost accounting to improve ecological efficiency and input resources are advanced businesses in
developed countries, especially in Europe, North America, Japan and Korea. Although environmental
cost accounting is commonly applied in developed countries, it is still quite new to developing countries
in general and Vietnam in particular. In the current integration trend and with the environment being
seriously polluted, Vietnam needs to learn from experiences from developed countries to develop
policies and guidelines on the application of cost accounting. suitable environment, thereby creating a
solid step for Vietnamese businesses in the process of economic integration. The article mentions
environmental cost accounting in some countries around the world and lessons learned for Northern
Vietnam Textile and Garment enterprises.
Keywords: Environmental cost accounting, lessons, Northern Vietnam textile enterprises

1. Introduction
Sustainable accounting has become a primary goal for organizations through the
development of traditional accounting systems, which include environmental cost
accounting.
Environmental accounting was first developed in Norway in the early 1970s and

has been refined and expanded through various stages. Today, environmental cost
accounting is considered an economic tool with numerous utilities and is widely applied
in developed countries such as the United States, Europe, and Japan, with increasing
adoption by developing countries, including Vietnam. However, the practice of
environmental cost accounting varies depending on the level of development and
governmental regulations in each country. In reality, environmental issues and costs
have been addressed early on, but they have not been clearly delineated in the recording,

summarizing, and provision of information, nor has there been a clear distinction
between financial accounting and environmental accounting. Nowadays, environmental
cost accounting is increasingly being refined, with more enterprises adopting it to
provide useful information for decision-making and meeting the information needs of
stakeholders, especially in developed countries.
The textile industry is one of the largest export sectors with rapid growth rates,

playing a crucial role in economic development and job creation for millions of workers.
However, it is also a major contributor to environmental pollution and degradation,
adversely affecting human health. To overcome these limitations and help textile
enterprises achieve sustainable development goals, the use of environmental cost
accounting tools is an effective solution.

157 Faculty of Accounting, Trade Union University, PhD student in Accounting at Academy of Finance,
Email: thuyvb@dhcd.edu.vn
309