Digital transformation indicators and GRDP in the former Hau Giang Province, Vietnam: An exploratory analysis for 2015-2023

Abstract

In the context of the Fourth Industrial Revolution, digital transformation has become a crucial driver of economic growth. In Vietnam, this process has made a positive contribution to economic development, particularly in the information and communication technology (ICT) sector. In Hau Giang Province (before the administrative merger) in 2025, digital transformation has yielded promising results; however, its specific impact on economic growth has not been comprehensively assessed. This study examined the relationship between digital transformation and economic growth in Hau Giang during the period 2015-2023. Data from the Hau Giang Statistical Yearbook and reports from the Department of Information and Communications were used to estimate an Ordinary Least Squares (OLS) regression model using STATA software. The results indicate that digital transformation positively impacts Gross Regional Domestic Product (GRDP). Specifically, information technology infrastructure (HTCN) and investment capital (K) have significant effects, whereas information technology human resources infrastructure (HTNL) has not demonstrated a clear impact, indicating the need for greater investment in workforce training. Based on the research findings, the paper proposes several solutions, including investment in IT infrastructure development, encouraging businesses to adopt digital technologies, enhancing workforce training, and providing incentives for digital transformation projects. These solutions will enable Hau Giang to effectively leverage digital transformation, foster sustainable economic growth, and establish a modern digital economy.