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track and measure their environmental performance, allowing for more transparent and
accountable sustainability reporting (Chen et al., 2015).

The concept of Industry 4.0, which refers to the integration of digital technologies
into manufacturing processes, is particularly relevant to the intersection of DT and GT.
According to Kamble et al. (2019), Industry 4.0 technologies such as IoT, robotics, and
additive manufacturing can significantly reduce energy consumption, material waste,
and production inefficiencies, thus contributing to both digital and green
transformations.
In the Vietnamese context, research by Nguyen et al. (2022) highlights that the
integration of DT and GT is still in its early stages. While many enterprises have started

adopting digital technologies, the implementation of green practices remains limited due
to financial and technological constraints. However, case studies of leading Vietnamese
companies such as VinFast and Masan Group show that businesses that successfully
integrate these two transformations can achieve significant competitive advantages in
both domestic and international markets (Vietnam Investment Review, 2022).
2.4. Challenges in the convergence of digital and green transformation

Despite the potential synergies between digital and green transformation, the
convergence of these two processes presents several challenges. Scholars have
identified several barriers to the successful integration of DT and GT, including financial
limitations, technological gaps, and organizational inertia (Li et al., 2019).
One of the primary challenges is the high cost of both digital and green
technologies. Nguyen et al. (2021) argue that the initial investment required for digital
infrastructure and green technologies can be prohibitive for many enterprises,

particularly SMEs. Additionally, the return on investment (ROI) for sustainability
initiatives may not be immediate, further deterring businesses from pursuing these dual
transformations (Nguyen et al., 2021). While digital technologies such as AI and IoT
hold great potential for green transformation, their adoption requires significant
technical expertise. Research by Pham (2020) highlights that many Vietnamese
enterprises lack the skilled workforce needed to implement and manage these

technologies effectively. Moreover, the absence of adequate digital infrastructure in
rural areas further limits the scope of digital and green transformations (World
Economic Forum, 2021).
Organizational resistance to change is another barrier to the convergence of DT
and GT. Studies show that businesses often face internal resistance when trying to
implement new technologies or sustainability initiatives, particularly if the benefits are
not immediately apparent (Dyllick & Muff, 2016). Overcoming this resistance requires
strong leadership, a clear vision, and a commitment to long-term sustainability goals

(Nguyen & Nguyen, 2021).
2.5. Opportunities in digital and green transformation
Despite these challenges, the convergence of digital and green transformation
presents significant opportunities for businesses. According to McKinsey & Company

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