Title: Does digital transformation promote economic growth? New evidence in Vietnam

Authors: Doan Hong Hanh; Nguyen Ngoc-Duy Phuong; Cong Tam Trinh

Addresses: Center for Public Administration, International University, Ho Chi Minh City, Vietnam; Vietnam National University, Ho Chi Minh City, Vietnam ' School of Economics, Finance, and Accounting, International University, Ho Chi Minh City, Vietnam; Vietnam National University, Ho Chi Minh City, Vietnam ' Ho Chi Minh City University of Economics and Finance, Dien Bien Phu, Gia Dinh Ward, Ho Chi Minh City, Vietnam

Abstract: This paper investigates the relationship between digital transformation and economic growth in Vietnam using panel data from 63 provinces between 2020 and 2022. The results of the feasible generalised least squares (FGLS) estimation revealed that digital transformation and its dimensions, including digital government, digital economy, and digital society, significantly influence economic growth. However, their impacts vary significantly between developed and developing provinces, demonstrating the crucial role of regional development heterogeneity. Traditional drivers of economic growth, such as financial development, inflation, and government spending, also differ in effect between the two income-based regional groups. These findings provide valuable recommendations for policymakers in Vietnam to promote and sustain the development of the digital transformation sector as a key contributor to growth and prosperity.

Keywords: digital transformation; economic growth; policymakers; Vietnam; FGLS estimation.

DOI: 10.1504/JIBED.2026.155050

Journal for International Business and Entrepreneurship Development, 2026 Vol.18 No.1, pp.1 - 29

Received: 15 May 2025
Accepted: 23 Jan 2026
Published online: 24 Jul 2026 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article