Studying the Relation between Environmental Cost Management Accounting and Financial Performance at Manufacturing Enterprises in the Northern Region of Vietnam

Environmental cost management accounting has become a handy tool for managers to track and manage environmental costs effectively, contributing to enhancing the financial performance of businesses. This article focuses on the relationship between environmental cost management accounting and the financial effectiveness of manufacturing businesses in Northern Vietnam. A survey was conducted on 323 manufacturing businesses in Northern Vietnam using questionnaires and regression models. The results show that the overall financial performance of these businesses is in good shape. Analysis of financial performance parameters indicates that revenue generation and profitability have improved, profit-making ability is on the rise, and a general perception that environmental cost management accounting is well-practiced leads to increased revenue, profits, and better financial performance. The structures of implementing environmental cost management accounting have a positive and significant impact on the financial effectiveness of businesses. The results imply that promoting the application of environmental cost management accounting is a prerequisite for enhancing the financial effectiveness of businesses in Northern Vietnam.