IMPACTS OF DIGITAL TRANSFORMATION ON PRODUCTIVITY IN VIETNAMESE ENTERPRISES
Le Thi Hau1, Phan Thi Bich Nguyet2, Nguyen Thi Hong Nham2, and Le Van2
1Thuy Loi University, 2University of Economics Ho Chi Minh City (UEH)
Abstract: This study aims to assess the impact of digital transformation through indicators of technology use, technology application, and software on labor productivity in Vietnamese enterprises. The research data includes 24,221 observations with seven main variables: labor productivity, labor skill level, capital intensity, enterprise age, and variables representing digital transformation. Using panel data regression combined with quantile regression testing, the study identified a non-linear relationship and the moderating role of capital intensity and labor skill level on the research objective. The results show a positive impact of technological innovation on labor productivity in Vietnamese enterprises. Specifically, the use of software solutions creates the most stable and sustainable impact, while the application of infrastructure technology shows a clear threshold effect, only creating a significant productivity boost in enterprises with high absorption capacity (75th percentile or higher). The research findings also highlight a paradox in the competition between physical capital and digital transformation, where in capital-intensive businesses, the marginal effectiveness of digital transformation tends to decrease. This research is relevant to the context of a developing economy, where a shortage of human resources’ capacity to absorb the benefits of digital transformation is a major obstacle preventing the realization of these benefits. This study implies solutions related to shifting policies from mass infrastructure support to supporting digital skills training and strategic management consulting for Vietnamese businesses before large-scale technology investments.
Key words: Technology innovation; digital transformation; productivity; enterprise.
VOLUME 10 ISSUE 08 2026: 1 – 23