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Does FDI facilitate digital transformation in developing countries? Evidence from Vietnamese firms

Year: 2026

Type: article

Abstract: This paper investigates whether foreign direct investment (FDI) significantly facilitates the access of firms in developing countries to digital transformation. It also examines if the level of access varies across firms of different geographical regions and operating sectors. Empirical analysis on a sample of more than 8000 firms in Vietnam during 2019 indicates that FDI plays an important role in helping firms cope with challenges raised by Industry 4.0. In addition, it lends support to the hypothesis that this effect is not homogenous. The results are robust to alternative econometric specifications and sample sizes. These findings convey important implications for developing countries’ FDI strategies and policies that aim to promote technological development for digital transformation. Thus, they are of special interest to researchers, policymakers, and industrial practitioners.

Source: Industrial and Corporate Change

DOI: 10.1093/icc/dtag001

Authors: Mai Vu, Giang Nguyen, Thanh Le

Institutions: Foreign Trade University, University of Wollongong

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $4,299