Page 77 - ISC PROCEEDINGS 21.4

( ) − ( )

'
( ) =

( ) − ( )

Step 3. Calculate the grey relational coefficient (GRC)
Subsequent to normalization, the relational coefficient at each time point is
calculated as:
' ' ' '
∣ ( ) − ( )∣ + ⋅ ∣ ( ) − ( )∣

0
,
,
0
( ) = ' ' ' '
0
∣ ( ) − ( )∣ + ⋅ ∣ ( ) − ( )∣

0
0
,

Where:
represents the distinguishing coefficient, typically selected as = 0.5 đ to balance
sensitivity.
and represent the minimum and maximum distances within the
, ,
entire dataset, respectively.
Step 4. Calculate the grey relational grade (GRG)
The overall relational grade of variable is calculated as:

1
= ( )
0 0

=1
Alternatively, if incorporating weights ( ):

0 = ( ) ⋅ ( )
0
=1
Step 5. Factor ranking
Higher values of 0 indicate that variable exhibits a greater degree of relational
magnitude, thereby facilitating the determination of the policy prioritization hierarchy.
4. Research results
Table 1. GRA results
No. GRG Rank
Technical infrastructure 0.885 1
Institutional quality 0.782 2
Application of information 0.750 3
technology
Human resource 0.679 4
infrastructure
E-government 0.670 5
E-commerce 0.669 6
Source: Calculation results by the authors' team
The aforementioned results indicate that the "Technical infrastructure " variable
exerts the most substantial impact on digital transformation (0.885), followed
sequentially by the level of Institutional quality, Application of information technology,
and so forth. The authors posit that this finding is logically sound, as these factors exhibit
a mutually reinforcing relationship in driving Vietnam's digital transformation process-
historically, currently, and in the foreseeable future.
5. Policy recommendations
First, capital investment in technological research and development must be
actively incentivized to cultivate a robust domestic ecosystem of digital technology

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