Facing the requirements of existence and development, Vietnamese universities have applied many strategic policies, including innovating financial management to attract different financial resources. There is still a lack of quantitative studies examining the role of financial management in the innovation and performance of higher education, and so the objective of this study is to explore the relationship between financial management on innovation and the implementation of higher education in this country. This study was conducted through a cross-sectional survey using a purposive sampling technique (n=200). The structural equation modeling technique is applied to test the research hypotheses. Research results show that the factors of financial management include organization liquidity, ability to control the finances; the financial literacy of employees has a positive and significant relationship with innovation in financial management. The innovation in financial management factor has a positive and significant relationship with innovation in higher education. Still, there is no evidence of the impact of innovation in higher education on higher education performance. The results of this study imply that higher education policymakers in Vietnam need to revise the financial policy of higher education.