The Role of Technological Absorption Capacity in Enhancing Business Performance in Vietnam

In the context of vigorous digital transformation and technological innovation, enhancing technological absorptive capacity has become a critical factor for businesses to improve performance and maintain competitive advantages. In Vietnam, the ability of enterprises to adopt and apply technology remains limited due to disparities in workforce qualifications, insufficient research and development capabilities, and ineffective collaboration between businesses and scientific and technological organizations. Additionally, investment capital for technology is constrained, while the legal environment and supportive policies have not kept pace with the rapid development of the digital economy, creating numerous barriers in the process of innovation and technology adoption. This study aims to analyze the role of technological absorptive capacity in business performance in Vietnam, identify key challenges, and propose solutions to enhance the ability of enterprises to adopt and apply technology effectively.