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

In: Innovating Finance for a Sustainable Future Integrating FinTech, Blockchain and Generative AI

Author

Listed:
  • Wissem Ajili Ben Youssef
  • Najla Bouebdallah
  • Duong Thi Thuy Linh

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.

Suggested Citation

  • Wissem Ajili Ben Youssef & Najla Bouebdallah & Duong Thi Thuy Linh, 2026. "The Impact of Foreign Ownership on Digital Transformation and Bank Performance: Evidence from Listed Banks in Vietnam," World Scientific Book Chapters, in: Wissem Ajili Ben Youssef & Najla Bouebdallah (ed.), Innovating Finance for a Sustainable Future Integrating FinTech, Blockchain and Generative AI, chapter 10, pages 299-329, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9781800618572_0010
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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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