Impact of industrial revolution 4.0 on Vietnam’s financial market in the period 2018 - 2024

Abstract

This paper investigates the price spillover effects and quantifies the lead-lag relationship between Industry 4.0 assets and Vietnam’s financial market from 2018 to 2024 using daily data. The analysis considers the context of the U.S.-China trade war, the Covid-19 pandemic, and the Russia-Ukraine conflict. Using the spillover index and wavelet analysis, the study reveals a total connectedness of 37.36%, indicating a strong link between Industry 4.0 and the Vietnamese stock market. The correlation is increasingly positive in the long term, while short-term dynamics show negative interactions across time-frequency domains. Industry 4.0 assets play a leading role in most frequency bands. These findings provide valuable insights for investors, portfolio managers, and policymakers in managing risks and responding to market volatility.