Drivers of Green Economic Performance in Vietnam: The Interplay of Digitalisation, Green Finance, and Institutional Quality

Abstract

Background: The green economy is an essential trend for nations seeking to achieve economic growth while maintaining environmental sustainability. However, as this remains a relatively nascent issue in Vietnam, raising awareness of the green economy and its role in sustainable development is vital at this stage.

Objective: This study aims to explore the determinants of green economic performance and emphasise the moderating role of institutional quality. Furthermore, it integrates technological, financial, and institutional perspectives to provide an empirical basis for policy design in the Vietnamese emerging economy.

Methodology: The research utilised a mixed-methods design. In the qualitative phase, 30 experts from government, academia, and business were interviewed to refine constructs relevant to Vietnam’s green transition. In the quantitative phase, 666 valid responses were collected over a five-month period in 2025 from business managers across five major cities.

Results: The findings indicate that green economic performance is strongly influenced by digitalisation, green technology, green innovation, and green financing. While green technology demonstrates the most significant immediate effect, green financing plays a crucial role in raising awareness of the circular economy and in promoting the adoption of renewable energy sources.

Conclusion: A green economy successfully combines economic growth with environmental protection while minimising the negative impact on natural resources. The study presents a scientific rationale for a strategic direction that enables Vietnam to achieve its dual goals of economic development and environmental preservation.

Unique Contribution: This study offers theoretical insights and empirical evidence regarding the moderating influence of institutional quality. It demonstrates that a green economy is not only a mechanism for environmental protection but also a driver of economic growth and improved quality of life.

Key Recommendations: The government should recognize that green growth facilitates economic restructuring driven by innovation-led models. To achieve economic prosperity, environmental sustainability, and social equity, the author proposes effective governance measures grounded in these findings, including specialized green finance mechanisms and robust innovation incentives.