THE IMPACT OF DIGITAL TRANSFORMATION ON THE OPERATIONAL EFFICIENCY OF VIETNAMESE COMMERCIAL BANKS

Digital transformation has emerged as a vital strategic priority for the banking sector, reshaping operational structures and redefining efficiency benchmarks in the digital economy. This study employs a qualitative, descriptive, and analytical approach to examine the impact of digital transformation on the operational efficiency of Vietnamese commercial banks. The research is based on a comprehensive analysis of secondary data sources, including industry reports, government policy documents, and published financial statements of major Vietnamese banks between 2016 and 2023. The study identifies that digital transformation has significantly improved the operational efficiency of commercial banks through enhanced automation, digitized customer services, and optimized internal processes. Digital technologies such as core banking upgrades, online payment systems, and data analytics have enabled faster transaction processing, cost reduction, and improved customer satisfaction. However, the analysis also highlights key challenges that hinder full digital integration, including limited digital infrastructure in smaller banks, high implementation costs, cybersecurity risks, and skill gaps among employees. The disparities between state-owned and private banks remain notable, with private institutions demonstrating stronger innovation capacity and adaptability. The findings suggest that while digital transformation has yielded tangible efficiency gains, its long-term success depends on strategic alignment between technology adoption, human resource development, and regulatory modernization. The study contributes to the literature on banking digitalization in emerging economies by providing contextual insights into Vietnam’s transformation process. It also offers policy implications for fostering a resilient, inclusive, and technology-driven banking system that supports sustainable financial development.