Page 72 - ISC PROCEEDINGS 21.4

UTILIZING GREY RELATIONAL ANALYSIS (GRA) TO EVALUATE THE
DETERMINANTS OF DIGITAL TRANSFORMATION IN VIETNAM

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Ngo Tuan Anh* , Do Hong Ngoc , Luong Qui Long , Dang Hai Ngoc , Do Anh Duc ,
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3
1
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Ngo Anh Thai 6
1, 2, 3, 4, 5 National Economics University, Hanoi, Vietnam.
6 Phenikaa University, Hanoi, Vietnam.
(*E-mail: ntanh28@gmail.com)

ABSTRACT
Driven by the unwavering dedication of its whole socio-political system, Vietnam is
currently experiencing a strong digital transition. Vietnam's socioeconomic development
has been found to be significantly impacted by digital transformation, both now and in
the near future. As a result, this study looks into the fundamental factors influencing
Vietnam's recent digital revolution. The results indicate that Technical infrastructure is
the primary determinant of digital transformation success in Vietnam, followed by
Institutional quality and Application of information technology. The research develops
strategic policy suggestions for Vietnam to effectively carry out its digital transformation
plan going forward by using the Grey Relational Analysis (GRA) technique to assess the
relative significance of these aspects.
Keywords: Digital transformation; determinants; grey relational analysis.

1. Introduction
In the past two decades, digital transformation has emerged as a central thematic
axis in scholarly research concerning economic growth, innovation, and labor productivity.
On a global scale, digital transformation is regarded not merely as a technological
progression but as a nascent development paradigm wherein data, digital connectivity,
and digital knowledge function as the primary strategic inputs for growth. Accordingly,
international scholarship typically analyzes the nexus between digital transformation and
GDP growth through two principal mechanisms: first, a direct impact channeled through
digital infrastructure and digital capital; and second, an indirect impact facilitated through
productivity, institutional frameworks, and innovation. Koutroumpis (2009) examined
data from 22 OECD nations during the 2002–2007 period and demonstrated that the
expansion of broadband networks generates positive spillover externalities, thereby
enhancing labor productivity and stimulating private investment. Similarly, Atif, Endres,
and Macdonald (2012), in their study of 31 OECD countries, asserted that broadband and
information technology play a role analogous to physical capital within traditional growth
models, thereby exerting a direct influence on GDP.
Minges (2015) synthesized data from 120 countries and concluded that the
adoption of fixed broadband facilitates an increase in per capita GDP of 1.2% to 1.4%,
with more pronounced effects observed in highly digitized economies. Czernich et al.
(2011) also indicated that a 10% increase in broadband penetration can bolster GDP by
0.9% to 1.5%, thereby affirming that investment in digital infrastructure serves as a direct
catalyst for growth. Furthermore, institutional factors associated with e-government have
been proven to exert a positive influence. Ding et al. (2025), utilizing data from 109
nations, demonstrated that e-government contributes to GDP growth, corruption

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