Type of the article: Research Article AbstractThe synergy between industrialization and environmental sustainability, known as the “twin transition,” has become a critical strategic imperative for emerging economies. This study aims to empirically examine the direct impact of green innovation on economic performance and the moderating role of digital transformation within the context of Vietnam. Data collected from a stratified random sample of 384 C-suite executives and senior managers within the manufacturing and service sectors across Vietnam’s key economic zones were analyzed using hierarchical linear regression. The quantitative analysis reveals that green innovation has a positive, moderate direct impact on economic performance (β = 0.24, p < 0.001). Furthermore, digital transformation demonstrates a strong independent direct effect on performance (β = 0.31, p < 0.001) and acts as a significant moderator (β = 0.19, p < 0.01). The inclusion of this interaction term significantly increased the model’s explanatory power (ΔR2 = 0.04, p < 0.01), providing statistical confirmation that firms with high digital capabilities realize substantially greater financial benefits from green investments compared to those with low digital maturity. Ultimately, these findings conclude that digital transformation is a dynamic capability that unleashes the financial value of sustainability strategies, offering a roadmap for integrated smart-green investments.
Purpose Innovation is widely considered a key driver of socioeconomic development. Despite ongoing efforts to enhance innovation, Vietnam continues to face challenges that hinder its innovation capacity. This study aims to investigate the effects of global value chain (GVC) participation on the innovation of Vietnamese firms during 2005–2023. Design/methodology/approach Using firm-level data from the World Bank’s Enterprise Survey over the period 2005–2023, the authors apply a probit model to quantify the effects of GVC engagement on firm innovation. To address potential endogeneity concerns, the authors use an instrument variable approach for estimation. Findings The findings show that firms participating in GVCs are more likely to introduce new products and new processes compared with non-GVC firms, with profound effects observed for small and medium firms. Factors such as firm age, credit line, official employee training program and informal competition also contribute positively to innovation, whereas higher production capacity appears to reduce the likelihood of introducing new products and processes. Originality/value This study contributes to the existing literature on the relationship between GVC participation and firm-level innovation. Based on these findings, several policy implications are proposed to support firms in participating in GVCs and promoting their innovative activities. In addition, the study provides broader insights by analyzing a diverse range of firms, thereby capturing potential heterogeneity in innovation activities related to firm size and ownership structure.
This study examines the relationship between environmental, social, and governance (ESG) disclosures and firm profitability in Vietnam, a transitional emerging economy characterized by significant state ownership and evolving corporate governance structures. Drawing on stakeholder, agency, and resource dependence theories, and building on prior ESG-performance research largely conducted in developed markets (Alareeni & Hamdan, 2020; Rahi et al., 2024), we investigate whether the financial effects of ESG disclosures are contingent on governance conditions. Using panel data from 147 Vietnamese listed firms over the period 2014-2023 and fixed-effects regressions with Driscoll-Kraay robust standard errors, we analyze the effects of environmental (E), social (S), and governance (G) disclosures on return on assets (ROA). The results indicate that social and governance disclosures are positively associated with profitability, whereas environmental disclosure shows no significant short-term effect. Moreover, state ownership weakens the positive impacts of environmental and governance disclosures, board gender diversity amplifies the effect of governance disclosure, and board independence unexpectedly reduces the performance gains from environmental and social disclosures. These findings contribute to the ESG literature by demonstrating that ESG value creation is highly context-dependent and shaped by ownership structure and board characteristics, offering new evidence from an underexplored emerging market setting.
This study explores the impact of trade openness and foreign direct investment (FDI) on economic growth and sustainable socioeconomic development in Southeast Asian countries, considering their diverse economic structures and policy frameworks. Utilizing panel ARDL methods, the findings demonstrate that trade openness and FDI significantly drive economic growth, with differential effects across the region. Advanced economies like Singapore and Brunei capitalize on robust financial systems and global market integration to maximize economic benefits. Industrializing nations, including Malaysia, Thailand, Indonesia, Vietnam, and the Philippines, leverage FDI and export growth but face challenges from inadequate infrastructure and governance issues, limiting equitable socioeconomic outcomes. Less-developed countries such as Myanmar, Laos, Cambodia, and Timor-Leste struggle to harness globalization's potential due to weak industrial bases and institutional barriers, exacerbating vulnerabilities to market volatility. The study underscores the need for robust economic policies, transparent governance, and sustainable strategies to balance economic growth with social inclusion and environmental protection, contributing to resilient socioeconomic development in Southeast Asia.
This study investigates the post-pandemic economic recovery of 534 individual household businesses in Vietnam, examining how internal and external factors influence their recovery outcomes. Specifically, it considers the role of key variables such as business characteristics, management capacity, external support, and the business environment in shaping post-COVID business recovery. Data were collected through a structured questionnaire across various sectors and analyzed using SPSS and AMOS to examine the relationships among these variables. The findings reveal that internal factors significantly influence recovery outcomes; for instance, a business's scale, sector, and owner experience show strong associations with better post COVID recovery performance. Strong management capacity particularly sound financial management and adaptability is also critical for overcoming challenges and building resilience. External support, notably government aid and community backing, positively influences recovery, while the broader business environment (e.g., market stability and competition) moderates these effects. Economic recovery among these household businesses is evidenced by increased revenue, higher profitability, and greater business sustainability. Although the study focuses on Vietnam's household businesses, which may limit generalizability to other contexts, it offers a nuanced view of how internal and external factors collectively drive recovery. These insights provide practical guidance for policymakers and business owners in developing targeted support measures, strengthening management practices, and fostering an enabling environment to ensure a sustainable and resilient post-pandemic recovery.
