The impact of digital transformation on trade performance in Vietnam

Abstract

This paper examines the impact of digital transformation on trade performance of Vietnam in a global context. Using a gravity model based on panel data from 48 trading partner countries of Vietnam during the period 2007- 2022, the research examines the relationship between variables reflecting the level of digital transformation and indicators of trade performance. The findings indicate that digital transformation has a positive effect on trade activities. However, the extent of the influence of digital transformation components, including the digital Government, the digital economy, and the digital society, on trade varies. These results provide important theoretical and practical implications for the formulation of policies to promote the application of digital transformation in trade activities, thereby enhancing Vietnam's competitiveness in the international market.