IMPACTS OF DIGITAL TRANSFORMATION ON THE COMPETITIVENESS OF VIETNAMESE COMMERCIAL BANKS

This study investigates the impact of digital transformation on the competitiveness of Vietnamese commercial banks. Given the rapid technological advancements of the Fourth Industrial Revolution and the increased competition from Fintech and Bigtech firms, Vietnamese commercial banks are compelled to adopt innovative financial technologies. Moreover, the COVID-19 pandemic has further accelerated digital transformation, necessitating widespread adoption of digital services. By analyzing panel data from 29 banks over 12 years, the study evaluates variables such as ICT Index, bank size, and financial ratios. Findings suggest a positive impact on bank competitiveness, with certain variables showing significance. This study is essential for understanding the current landscape and prospects of Vietnamese banking amidst ongoing digital transformation, providing actionable recommendations, and aiming to guide policymakers, regulatory bodies, and industry stakeholders in formulating policies to enhance the banking sector's competitive capacity.