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ENVIRONMENTAL GOVERNANCE AND CORPORATE

TECHNOLOGY INVESTMENT IN VIETNAM DURING COVID-19

113
Nguyen Thu Ha 112 , Kelvin Lee Yong Ming , Nguyen Thi Huong An 114 ,
115
Nguyen Thi Hang

Abstract: This paper explores the intricate relationship between public administration
performance and corporate technology investment in Vietnam during and after the COVID-19 crisis.
This study highlights the transformation of the local administration, especially environmental
governance in corporate strategies. Employing regression analysis on a comprehensive dataset
spanning 2019 to 2021, including PAPI scores and firm-level investment data, we observe a positive
association between effective environmental governance and firm-level technology investments. The
study contributes to understanding the relationship between environmental governance at the regional
level and its impact on corporate technology activities in Vietnam during and beyond the challenges
posed by COVID-19.
Keywords: provincial administration, environmental governance, science and technology
investment, corporate investment
JEL No: H83, O32

1. Introduction
Amidst the seismic shifts in corporate investment strategies triggered by the global
upheaval of the COVID-19 pandemic, Vietnam, an emerging economy with a growing
innovation focus, is undergoing a transformative paradigm shift. This study
meticulously explores the interplay between public administration performance and
corporate technology investment in Vietnam during the pandemic.

Our research delves deeply into the complex dynamics of corporate technology
investment, spotlighting the pivotal roles played by provincial public administration.
The governance framework in Vietnam, spanning policies, regulations, and
administrative efficiency, profoundly shapes corporate decision-making, particularly
the allocation of resources to technology initiatives. As the pandemic’s disruptive effects
persist, understanding how governance evolves becomes imperative, shaping the
landscape of corporate technology investment.

This paper lays the groundwork by highlighting key factors and questions,
emphasizing the evolving nature of corporate technology investment in Vietnam and the
government’s drive for technological innovation and economic resilience. We spotlight
the changing dynamics of provincial public administration, especially in the pandemic
context, examining how environmental governance interacts with corporate strategies.
Subsequent sections of this research will delve into the nuanced aspects of

governance and public administration and their impact on corporate technology

112 Hanoi Open University, Email: ntha13@hou.edu.vn
113 School of Accounting & Finance, Taylor’s University
114 Hanoi Open University
115 Hanoi Open University

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