Digital Transformation and Its Relationship with Operational Efficiency: An Experimental Study at Vietnamese Joint-Stock Commercial Banks

Abstract:

This study investigates the impact of digital transformation on the operational efficiency of joint-stock commercial banks in Vietnam during the period 2015–2023. The research data were collected from audited financial statements, macroeconomic indicators, and annual reports of 29 listed banks operating in the Vietnamese market. To assess the extent to which digital transformation influences bank performance, the study employs several quantitative methods, including Data Envelopment Analysis (DEA), Tobit regression, Ordinary Least Squares (OLS), Fixed Effects Model (FEM), Random Effects Model (REM), and Feasible Generalized Least Squares (FGLS). The findings reveal that digital transformation has not yet generated a clearly positive impact on operational efficiency across the banking sector during the study period. The effects vary significantly among banks, with larger institutions—those investing early in digital infrastructure and diversifying revenue through non-interest income streams—tending to perform more efficiently. In contrast, smaller banks with higher operating costs and limited resources face greater challenges in adopting digital transformation effectively. Based on these findings, the study proposes several managerial and policy implications to guide joint-stock commercial banks in shaping more effective digital strategies. It also offers empirical insights for regulators, investors, and policymakers to support and accelerate the digital transformation process within Vietnam’s banking sector.