The Impact of Foreign Ownership on Digital Transformation and Bank Performance: Evidence from Listed Banks in Vietnam

Wissem Ajili Ben Youssef, Najla Bouebdallah and Duong Thi Thuy Linh

Chapter 10 in Innovating Finance for a Sustainable Future:Integrating FinTech, Blockchain and Generative AI, 2026, pp 299-329 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This study examines the influence of foreign ownership on digital transformation and financial performance among 27 listed commercial banks in Vietnam. Using panel data regression models, we investigate the relationship between foreign ownership levels, digital transformation indicators, and bank performance metrics over a five-year period (2019–2023). In addition to SPSS, we use Smart PLS to conduct structural equation modeling (SEM), allowing for a deeper examination of the complex interrelationships among the variables. The findings reveal that foreign ownership has a positive and significant influence on both digital transformation efforts and overall bank performance. This research contributes to the literature by offering empirical evidence from an emerging market context, highlighting how foreign investment can act as a catalyst for digital innovation in the banking sector. Despite the multifaceted nature of these dynamics, the results suggest that well-executed digital strategies—underpinned by strong technological infrastructure—can substantially enhance bank performance over time. These insights carry significant implications for policymakers, investors, and banking executives seeking to align foreign investment with digital transformation goals in Vietnam’s evolving financial landscape.

Keywords: Generative Artificial Intelligence; Technology–Organization–Environment (TOE); ESG Factors; Sustainability; Blockchain; Supply Chain Finance; Trade Finance; FinTech; Customer Loyalty; Mobile Banking; Perceived Risk; Trust; Personalization; Digital Banking Adoption; Customer Behavior; Digital Innovation; Retail Banking; CSR; Foreign Ownership; Digital Transformation; Bank Performance; Big Four; Auditing; Intention to Use; Risk Assessment; Risk Mitigation; CAMELS-Based Framework; Banking; Qualitative Approach; Quantitative Approach; Case Study; Vietnam Banking Sector (search for similar items in EconPapers)
JEL-codes: G21 G23 G28 O33 Q56 (search for similar items in EconPapers)
Date: 2026
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