This study investigates the impact of digital transformation on the credit activities of 25 Vietnamese commercial banks from 2016 to 2024. Utilizing secondary data and panel data regression techniques, specifically the Generalized Least Squares (GLS) model to correct for heteroskedasticity and autocorrelation, the research evaluates how digital transformation (measured by the ICT Index) affects credit expansion and credit risk of commercial banks in Vietnam. The empirical findings reveal a dual positive effect: digital transformation significantly promotes credit capacity while effectively reducing the credit risk of commercial banks in Vietnam. Further analysis demonstrates that human resource infrastructure strongly drives lending expansion, whereas robust technical infrastructure plays a crucial role in minimizing credit risks. However, the study notes that the benefits of digitalization exhibit a lagged effect, requiring time for new system integration, employee training, and cultural adaptation. Based on these results, the research recommends that commercial banks synchronize their investments in both advanced technology and high-quality human capital. Additionally, it urges policymakers and the State Bank of Vietnam to expedite a comprehensive legal framework, including a Regulatory Sandbox, to ensure sustainable banking operations in the digital era.
