Impacts of Digital Financial Literacy and Usage of Digital Finance on Financial Inclusion in Vietnam

In light of Vietnam’s shift toward a cashless society and the rapid advances brought by Industry 4.0, this research investigates how digital financial literacy and digital finance contribute to financial inclusion. Using a structured questionnaire grounded in established international standards, the research collects detailed individual-level data from diverse regions in Vietnam. To mitigate issues like reverse causality and endogeneity, two instrumental variables are integrated into the analysis framework. Results reveal a strong, positive: relationship that higher digital financial knowledge and wider access to digital financial services significantly enhance people’s capacity to use and benefit from financial products, a trend accentuated during the COVID-19 pandemic and throughout Vietnam’s economic expansion. These results support global evidence and underscore the necessity of strengthening digital skills and financial technologies to foster inclusive economic growth. The research implementable recommendations for policymakers and organizations seeking to broaden financial inclusion and enrich the academic conversation on this topic in Vietnam.