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THE IMPACT OF THE DIGITAL ECONOMY ON SUSTAINABLE DEVELOPMENT
IN VIETNAM

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Tran Phuong Thao* , Nguyen Xuan Quang , Bui Thi Minh Tam 3
1, 2, 3 Hanoi Open University, Hanoi, Vietnam.
(*E-mail: thaotp@hou.edu.vn)

ABSTRACT
This research examines how the expansion of the digital economy influences
sustainable development in Vietnam. Drawing on time-series data from 2015 to 2024, it
evaluates the progress of the digital economy and explores its impact on sustainability
outcomes. The analysis also considers several related determinants, such as innovation
and research activities, the business environment, human capital, and overall economic
growth, to better understand their roles in shaping sustainable development. The
empirical findings reveal that the digital economy significantly contributes to promoting
sustainable development. Moreover, greater investment in science and technology, along
with improvements in human capital quality, strengthens this positive effect. These
results provide valuable implications for policymakers and managers seeking to advance
sustainable development amid ongoing digital transformation. In general, the study adds
to the existing body of literature by offering deeper insights into how regions can
effectively support sustainable development in the digital era.
Keywords: Digital economy; research and innovation; sustainable development;
economic growth; human capital.

1. Introduction
In Vietnam, green growth and sustainable development have been given high
priority by the Party and State in recent years. The national strategies emphasize the
greening of economic sectors by transforming the growth model towards eco-friendly
practices, adopting circular economy principles and ensuring the efficient use of natural
resources and energy through science and technology. Simultaneously, digital
transformation and the development of sustainable infrastructure are highly considered
as key factors for improving growth quality, strengthening competitiveness, and
mitigating environmental impacts.
Amid the Fourth Industrial Revolution, Vietnam has proactively advanced the digital
economy as a key driver of growth. Significant improvements in technological
infrastructure—especially the expansion of 4G coverage to more than 95% of
households—have enabled the rapid development of new sectors such as e-commerce
and the sharing economy. At the same time, breakthroughs in digital technologies,
including artificial intelligence and blockchain, have become important catalysts for
national economic expansion (Horoshko et al., 2021; Pang et al., 2024). The digital
economy also facilitates the spread of knowledge and the exchange of information across
innovation networks, allowing firms to adopt advanced technologies, enhance cost
efficiency, and foster innovation (Han et al., 2023). As a result, it contributes significantly
to the shift toward more sustainable and environmentally friendly production models.
Recent research has increasingly emphasized its role in promoting green development at
the regional level (Gao et al., 2022; Hosan et al., 2022; Cai, 2023; Zheng & Wong, 2024).

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