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coverage, ensuring that 80% of the population possesses electronic payment accounts
and that the nation maintains its position within the top 30 global leaders in cybersecurity
and safety.
Digital transformation can be conceptualized as both a novel input within the
production function and a channel for knowledge and productivity spillovers throughout
the entire economy. It is noteworthy, however, that the majority of international
scholarship focuses on the aggregate or linear impact of digital transformation on GDP,
while offering limited consideration for the relative importance of varying digital sub-
factors. This represents a significant academic lacuna, particularly within the context of
developing economies like Vietnam, where digital transformation structures remain
asynchronous and investment resources are constrained. Consequently, identifying the
degree of congruence between specific digital transformation factors and GDP growth-
rather than merely measuring average impacts-holds practical significance not only for
academic inquiry but also for the formulation of focused digital development policies
tailored to the specific capacities and conditions of individual nations. Researching digital
transformation, particularly the factors influencing its progression in Vietnam today, plays
a vital role in identifying the relative weight of these components, thereby facilitating the
proposal of appropriate policy recommendations for the success of Vietnam's digital
transformation efforts in the coming period.
2. Theoretical framework
Schumpeter’s theory of innovation (1911)
According to Joseph Schumpeter, economic development is predicated not merely
on the accumulation of traditional production inputs-such as capital or labor-but primarily
stems from the process of innovation. He contended that economic growth occurs when
individuals create "new combinations" of existing factors, encompassing products,
production processes, markets, supply sources, or organizational methods. Whenever a
new combination emerges, it precipitates a revolutionary shift, catalyzing the formation
of entirely nascent industries and business models.
In this process, the entrepreneur occupies a central role. They are the agents who
venture to recombine elements in novel configurations, assume inherent risks, and
generate new value for society. Schumpeter conceptualized this phenomenon as
"creative destruction" - a process whereby the emergence of the new renders the old
obsolete and causes its eradication, thereby propelling the economy toward a more
advanced state of development. According to his theoretical perspective, the economy
does not operate in a static equilibrium but functions rather as a dynamic system,
perpetually evolving driven by continuous innovation. Extrapolating from the
Schumpeterian approach, the digital economy can be observed as a quintessential
manifestation of the innovation mechanism within the contemporary era. The
proliferation of information technology, the Internet, big data, and artificial intelligence
has engendered novel combinations encompassing knowledge, technology,
organizational structures, and market dynamics. The digitalization process not only
facilitates improvements in productivity but also catalyzes the creation of a vast array of
unprecedented products, services, and business models, such as e-commerce, online
payment systems, and the sharing economy.
Within this context, factors such as research and development (R&D) activities and
the quality of human capital can be regarded as innovative resources in the
Schumpeterian spirit. When these resources coalesce, they engender new combinations

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