The Impact of Digital Transformation on the Economic Growth of Provinces in Vietnam: A Case Study of Spatial Correlation

Abstract

The explosive development of digital technology, automation, and artificial intelligence has made digital transformation a key factor in promoting the development of the global economy, including in Vietnam and its provinces. Moreover, provincial economies are increasingly interconnected, allowing the effects of digital transformation to extend to neighboring provinces through economic and social links. Moran’s I test shows that the economic growth of provinces is not independent, and there is interaction between neighboring provinces. The spatial autoregressive fixed-effects model (SAR-FEM) shows that traditional economic factors such as population, budget revenue, and export value have a positive impact on a province’s internal growth. In addition, digital transformation plays an important role in facilitating spillovers to neighboring provinces, contributing to shaping the development of the economic structure of provinces in line with modern trends.