Abstract This paper investigates whether foreign direct investment (FDI) significantly facilitates the access of firms in developing countries to digital transformation. It also examines if the level of access varies across firms of different geographical regions and operating sectors. Empirical analysis on a sample of more than 8000 firms in Vietnam during 2019 indicates that FDI plays an important role in helping firms cope with challenges raised by Industry 4.0. In addition, it lends support to the hypothesis that this effect is not homogenous. The results are robust to alternative econometric specifications and sample sizes. These findings convey important implications for developing countries’ FDI strategies and policies that aim to promote technological development for digital transformation. Thus, they are of special interest to researchers, policymakers, and industrial practitioners.

This paper proposes a two-stage framework integrating Data Envelopment Analysis (DEA) and fuzzy multi-criteria decision-making methods to evaluate the performance of logistics firms in Vietnam. In the first stage, DEA models (CCR, BCC, and SBM) are employed to measure relative efficiency and identify benchmark firms among 15 leading logistics companies. In the second stage, FAHP–FTOPSIS is used to incorporate qualitative and sustainability-oriented criteria and to provide a comprehensive ranking of the efficient firms. The results indicate that a considerable proportion of firms operate below the efficiency frontier, implying substantial opportunities for resource optimization. Environmental and technological dimensions are found to be the most influential factors, while companies implementing green distribution strategies and strong data security practices consistently achieve higher rankings. Sensitivity analysis confirms the robustness and stability of the proposed framework. This study contributes by bridging operational efficiency assessment with broader strategic and sustainability considerations, overcoming the limitations of single-method evaluations used in prior research. The integrated DEA–FAHP–FTOPSIS approach offers managers a practical tool to diagnose weaknesses, prioritize improvement actions, and benchmark against top performers. In addition, it offers policymakers valuable insights to support digital transformation and green logistics initiatives in developing economy contexts.

This study examines the impact of working capital management (WCM) on firm profitability with a particular focus on financial sustainability in an emerging market context. Utilizing panel data from 649 non-financial enterprises registered on Vietnamese stock markets from 2019 to 2023, company profitability is represented by return on assets (ROA), while working capital management is assessed through the cash conversion cycle (CCC) and the current ratio (CR). To account for any nonlinear effects, squared terms of CCC and CR are included in the regression models. The empirical study uses pooled ordinary least squares (OLS), fixed-effects (FEM), and random-effects (REM) estimators. The results provide strong evidence of nonlinear relationships between working capital management and corporate profitability. The CCC has a U-shaped relationship with ROA. This means that both extremely aggressive and unduly relaxed working capital practices can hurt profits. On the other hand, the CR shows an inverted U-shaped relationship with profitability. The study contributes to the field of sustainable finance by demonstrating that effective management of working capital enhances the resilience of firms in Vietnam and fosters long-term economic success.

ABSTRACT In this paper, we examine the effect of bribery on innovation performance and whether bank finance serves as an effective channel of the impact. In doing so, we compute an innovation performance index for Vietnamese small and medium enterprises. We then conduct mediation analysis on the triad of bribery, bank finance and innovation performance using a large panel of almost 13,000 private manufacturing firms in Vietnam from 2007 to 2015. Empirical results indicate a positive effect of bribery on firm innovation and that firm borrowing significantly mediates this relationship. Specifically, bribery increases firm borrowing from banks, which in turn enhances innovation. We then enrich our study with a provincial level dataset that covers 63 provinces in Vietnam over the 2010–2019 period. We find that at the provincial level, bribery turns out to hinder technological improvement instead. The overall findings imply that bribery creates a negative externality that distorts the allocation of resources. While bribery may be beneficial to firms that are engaged in undertaking it, the social cost it imposes on society outweighs any private benefits it generates. The results convey important policy implications for policymakers wishing to promote a healthy innovation culture and a sustainable economic development path for society.

Purpose This paper aims to examine the sequential mediating effects of sustainability efforts (SE) on sustainable supply chain performance (SP) in the emerging economy of Vietnam. Besides, it examines the moderation of expertise in big data analytics (BDE) in the association between social sustainability efforts (So-SE) and SP. Design/methodology/approach This research tests hypotheses using partial least squares structural equation modeling using 372 Vietnamese business surveys. Findings The results show that the linkage of environmental sustainability efforts (En-SE) and SP is successively mediated by supplier sustainability efforts (Su-SE) and So-SE. Furthermore, BDE positively moderates the effect of So-SE on SP. Research limitations/implications This study has managerial implications for Vietnamese supply chain managers regarding the sequential mediation of SEs and the moderation of BDE in improving SP. It also enhances the understanding of SE, BDE and SP in the emerging market of Vietnam. Originality/value The original value is derived from the comprehension of the impact of sequential mediation of SEs on SP for firms in Vietnam. The inclusion of a recently discovered mechanism that illustrates the moderation of BDE in the relationship between So-SE and SP further emphasizes this point. These contributions are of interest to academics and business professionals.

Abstract This paper studies the survival dynamics of household businesses in a developing country context using a high-frequency database of tax-registered firms in Vietnam. We document new stylized facts on firm turnover by distinguishing between permanent closures (exit) and temporary suspensions of operations—an important, yet often overlooked, margin of adjustment. While annual permanent closure rates for tax-registered household businesses are relatively low at 4–5 percent, temporary suspensions are far more prevalent: approximately a quarter of firms suspend operations each year, with an average duration exceeding 2.5 months. Suspension filings display strong seasonal patterns and serve as leading indicators of eventual exit. We exploit the COVID-19 pandemic as a quasi-natural experiment to show that household businesses suspend operations to cope with unanticipated shocks, and document sharp but short-lived increases in suspensions, particularly in services and occupations requiring high levels of face-to-face interaction. The findings highlight the importance of incorporating temporary suspensions into firm dynamics analyses and underscore the value of tax-based administrative data to study small business behavior in developing economies.

This study investigates the optimization of reverse logistics in manufacturing enterprises, emphasizing its role as an essential component of modern supply chain management and a strategic instrument for sustainable development. The paper first reviews and systematizes the theoretical foundations of reverse logistics, clarifying its concepts, characteristics, and scope of application, as well as its linkages with supply chain management and the circular economy. On this basis, an analytical framework is developed to evaluate the level of reverse logistics implementation in manufacturing firms in Vietnam, with a focus on product return management, reverse material flow handling, internal coordination mechanisms, and the integration of environmental objectives into production and business strategies. The analysis of empirical evidence highlights several key challenges in the adoption of reverse logistics, including limitations in managerial capabilities, infrastructure, financial and technological resources, and insufficient awareness of the long-term economic and environmental benefits. In response, the study proposes a set of comprehensive and feasible solutions aimed at improving internal governance, enhancing coordination across supply chain stages, and promoting the adoption of management models consistent with circular economy principles. These measures are expected to improve operational efficiency, reduce environmental impacts, and strengthen the competitive position of manufacturing enterprises in the context of economic integration and increasing sustainability requirements.

ABSTRACT Digital transformation is increasingly recognized as a key driver of sustainability, yet empirical insights into how firms leverage digital capabilities to advance the circular economy through green innovation remain limited. Drawing on dynamic capability theory, this study investigates how digital sensing, capturing, and transforming capabilities facilitate firms' green transition, which subsequently drives green product and process innovation, enhancing circular economy performance. Using survey data from 310 manufacturing and service firms in Vietnam, hierarchical regression, polynomial regression, and response surface analysis were employed. Findings reveal that digital sensing and transforming capabilities significantly advance the green transition, whereas digital capturing capability has no significant effect. The green transition positively influences both green product and process innovations. Furthermore, balanced growth in these innovations enhances circular economy outcomes, while imbalances detract from performance. Mediation analysis highlights the central role of green transition and green product innovation in linking digital capabilities to circular outcomes. This study contributes to the literature by elucidating the pathways through which digital transformation promotes sustainability and provides managerial implications for integrating digital and environmental strategies to create circular value.

This study examines the relationship between dividend policy, cash holdings, and earnings management (EM) behavior among listed firms in Vietnam over the period 2016 to 2024. Grounded in agency theory and the free cash flow theory, the research empirically investigates the effect of dividend policy and cash holdings on the level of EM, utilizing four widely recognized EM measurement models. The dataset consists of 10,057 firm-year observations analyzed using fixed effects regression models, controlling for firm and year fixed effects. The findings indicate a statistically significant negative association between dividend policy and EM, suggesting that firms with higher dividend payouts tend to engage less in earnings management. Conversely, cash holdings exhibit a positive and significant relationship with EM, implying that firms with higher levels of cash reserves are more likely to manipulate earnings. Among control variables, state ownership and profitability are found to be negatively related to EM. These findings provide important empirical evidence on the role of financial policy instruments in mitigating managerial opportunism via earnings management. The study offers implications for investors, corporate managers, and policymakers in designing effective financial oversight mechanisms in emerging markets such as Vietnam.

In Vietnam's real estate sector, where informal institutions like political connections are exceptionally influential, this study addresses a critical governance paradox: the effectiveness of formal monitoring mechanisms, such as high-quality audits, in constraining the earnings management behavior driven by these connections. The main objective of the study is to clarify the complex interaction between formal (audit) and informal (political connections) governance mechanisms, while also considering the differences in this impact between state-owned and private enterprises. By employing a panel dataset of 677 firm-year observations from 71 listed firms over the 2015-2024 period, the study applies a Fixed Effects Model (FEM) with an interaction term, combined with robust checks. The empirical results show that political connections have a positive and statistically significant relationship with earnings management, whereas audit quality (represented by the Big 4) has a constraining effect. However, the most core and significant contribution of the study is that the moderating role of audit quality is not statistically significant for the full sample. Deeper analysis by ownership type reveals a heterogeneous mechanism of impact: while the monitoring role of Big 4 audits is almost completely neutralized in state-owned enterprises, it exerts a strong effect and nearly eliminates the negative impact of political connections in private enterprises. From this, we conclude that the effectiveness of formal governance mechanisms is not absolute but depends heavily on the institutional context and ownership structure, highlighting that high-quality audit is an effective "check" against risks from political capital, but primarily in the private sector.

Financial distress prediction plays a crucial role in corporate risk management, investment decisionmaking, and financial stability, particularly in emerging markets where firms are more vulnerable to economic shocks. The real estate sector in Vietnam is characterized by high leverage, long investment cycles, and strong sensitivity to macroeconomic fluctuations, making early detection of financial distress especially important. In this context, traditional statistical models often face limitations due to their reliance on linear assumptions and their inability to handle complex and imbalanced data. This study aims to enhance financial distress prediction by applying machine learning techniques to listed real estate firms in Vietnam. Using firm-level financial data collected from Vietnamese stock exchanges over the period 2019–2023, the study constructs a binary financial distress variable based on return on assets (ROA). Several widely used machine learning algorithms, including Logistic Regression, Random Forest, Support Vector Machine, and XGBoost, are employed and systematically compared. To address the inherent class imbalance in financial distress data, a data balancing technique is incorporated into the modeling process, and model performance is evaluated before and after data balancing. The proposed research framework integrates data exploration and preprocessing, data balancing, and model development and evaluation. Model performance is assessed using multiple evaluation metrics that are appropriate for imbalanced classification problems. By explicitly examining the impact of data imbalance on prediction performance, this study provides empirical evidence on the importance of data preprocessing in financial distress forecasting. The findings offer practical insights for investors, financial institutions, and policymakers in developing more effective early warning systems for financial distress in the Vietnamese real estate sector.

This research seeks to examine the effect of audit quality on the financial performance of non-financial listed firms in Vietnam during the period 2014–2023, with a sub-period analysis of pre- and post-COVID-19 outbreak. It considers major determinants of audit quality, including Big 4 auditors and audit rotation, as well as financial variables such as leverage, size, and industry type. The results indicate that companies audited by the Big 4 tend to have better financial performance, which is attributed to higher transparency and credibility in financial reporting. Nonetheless, the positive relationship was weakened during the COVID-19 period, as increased economic uncertainty limited the contribution of audit quality to maintaining firm value. Most importantly, the study concludes that audit rotation, measured by the frequency of auditor changes, has no statistically significant impact on financial performance. This suggests that the length of auditor rotation, within the current regulatory context, may not significantly affect audit quality and corporate performance. Furthermore, financial leverage consistently has a negative effect on firm value, highlighting the importance of effective capital structure management. These findings underscore the need to reinforce audit quality standards and reconsider audit rotation policies to enhance auditor independence, ensure continuity, and develop auditor expertise. Such measures are essential to promote greater financial transparency, restore investor confidence, and improve efficiency amid economic turmoil.

This paper investigates how provincial environmental governance shapes firms’ technology upgrading during the COVID-19 shock and early recovery in Vietnam. Using 1,886 firm-year observations for 2019–2021, the analysis combines the environmental governance sub-index of the Provincial Governance and Public Administration Performance Index with listed firms’ financial statements from FiinPro and applies panel regression models with rich fixed effects and event-time specifications to estimate the impact of environmental governance on corporate technology investment. The results reveal a robust positive association between effective environmental governance and technology upgrading, with stronger effects for pollution-intensive firms, financial institutions, and firms headquartered in export-oriented Southeast provinces. Event-time estimates further show that this relationship intensifies during the lockdown period and remains significant in the initial reopening phase, suggesting that capable local administration lowers uncertainty and transaction costs for digital and green investment when firms are under stress. These findings indicate that environmental governance functions as an important but often overlooked driver of the digital–green shift in an emerging economy context. Policymakers can foster resilient, innovation-led growth by strengthening provincial environmental governance capacity, integrating environmental management with industrial and digital transformation programs, and targeting support to small and medium-sized enterprises that face greater constraints in financing and implementing digital–green technologies.

Type of the article: Research ArticleAbstract Board characteristics play a critical role in shaping corporate transparency and preventing financial misreporting in emerging markets. This study investigates how the independence, size, gender diversity, and meeting frequency of boards of directors influence the likelihood of financial statement fraud among listed firms in Vietnam, while also examining the moderating effect of audit committees. Using a balanced panel dataset of 2,584 firm-year observations from 323 non-financial companies listed on the Ho Chi Minh City and Hanoi Stock Exchanges during 2015–2022, logistic regression analysis (Stata 17) was used to test the proposed hypotheses. The results show that board independence and board size significantly reduce the likelihood of financial statement fraud, aligning with agency and resource dependence theories. Although gender diversity has no significant effect in the baseline model, it becomes negatively significant when the audit committee is included, indicating that effective oversight enhances the governance role of diverse boards. Additionally, the previously positive relationship between meeting frequency and fraud becomes insignificant when an audit committee is present, confirming its neutralizing effect. These findings highlight that the audit committee is a vital governance mechanism that enhances monitoring quality, reinforces accountability, and promotes ethical behavior. The study provides important insights for regulators and firms in Vietnam by emphasizing the need to strengthen audit committee independence, promote board diversity, and advance professional governance to reduce fraudulent reporting and support sustainable corporate integrity in emerging economies.

Purpose This study aims to examine how supply chain orientation affects export performance in the context of environmental uncertainty. Design/methodology/approach This study used a cross-sectional design. Structural equation modeling (SEM) was used to analyze data collected from 127 manufacturing firms in Vietnam. Findings The findings showed a positive relationship between supply chain orientation and export performance. This relationship is stronger in cases of high supply uncertainty but weaker under high demand uncertainty. Research limitations/implications This study suggests that future research could extend the Contingent-Resource-Based View by incorporating firm positions in global value chains as a contextual factor that shapes the relationship between supply chain orientation and export performance. Practical implications Firms can improve their export performance by aligning their supply chain orientation with the dimensions of environmental uncertainty. Social implications Policymakers can support export-oriented manufacturers by developing policies that enhance firms’ supply chain orientation. Originality/value This study contributes to the literature by being one of the first to empirically examine the moderating effects of supply and demand uncertainty on the relationship between supply chain orientation and export performance.

ABSTRACT Sustainable performance (SUPE) remains a critical priority for businesses. However, empirical evidence quantifying the roles of accounting practices and innovation in achieving SUPE is still limited. This study investigates the indirect impact of environmental management accounting (ENMA) on SUPE through the mediating role of sustainable innovation. Additionally, it examines whether a proactive sustainability strategy (PRSS) strengthens the relationship between ENMA and sustainable innovation. Data were collected via an online survey of 339 chief executive officers (CEOs) and chief financial officers (CFOs) from manufacturing firms in Vietnam and analyzed using SmartPLS version 4.1.1.2. The results reveal that: (1) ENMA positively influences sustainable innovation; (2) sustainable innovation significantly enhances SUPE; (3) sustainable innovation mediates the relationship between ENMA and SUPE; and (4) PRSS positively moderates the relationship between ENMA and sustainable innovation. These findings contribute to the advancement of dynamic capability and stakeholder theories. Specifically, PRSS serves as a mechanism for identifying stakeholder needs and transforming external pressures into enhanced ENMA capabilities, thereby promoting sustainable innovation and, ultimately, SUPE.

For the auditing industry, which is a high-pressure and seasonally characterized industry, regulations on overtime, night work, occupational health care, and work arrangements play a key role in reducing stress, occupational burnout, and enhancing human resource retention. The purpose of this paper is to analyze, evaluate, and measure the factors of working conditions and employee income affecting the retention of audit human resources in domestic independent audit firms in Vietnam. We use both qualitative and quantitative research methods. Data are collected from auditors working in domestic independent audit firms through survey forms. The results show that the retention of audit human resources in domestic independent audit firms is influenced by two factors: working conditions and employee income. Of which, working conditions have the greatest influence. Based on the research results, we propose some recommendations to promote the retention of audit human resources in domestic independent audit firms in Vietnam.

Purpose This study investigates how institutional quality (IQ) affects corporate cash holdings (CHs) in Vietnam – an emerging market where institutional frameworks are evolving and increasingly gaining policy attention. It further examines economic uncertainty as a mediating channel in this relationship. Design/methodology/approach This study utilizes a panel dataset comprising 15,461 firm-year observations from 1,558 publicly listed firms in Vietnam over the period 2008–2022. We employ the fixed effects (FE) regression models to estimate the impact of IQ on corporate CHs. The analysis is further extended to explore the role of economic uncertainty in this relationship. Findings The results indicate that higher IQ significantly reduces corporate CHs, primarily by lowering firms’ precautionary demand for cash. In addition, the study finds an inverse relationship between IQ and economic uncertainty, alongside a positive relationship between economic uncertainty and corporate CHs. These findings suggest that part of the effect of IQ on CHs operates through its ability to reduce economic uncertainty, thereby diminishing the need for precautionary cash reserves. Originality/value This study highlights the influence of IQ on one of the most critical corporate decisions – CH – in the context of an emerging economy undergoing active institutional reform. By doing so, it underscores the pivotal role of IQ not only in shaping firms’ financial behavior but also in promoting economic stability, enhancing resource allocation efficiency and supporting the development of a more robust financial system.

ABSTRACT Despite growing interest, the existing literature on corruption and corporate cash holdings remains inconclusive. Using a sample of 1,172 listed firms in Vietnam over the period 2006–2022, this study contributes to this stream of literature by investigating the relationship between local corruption and corporate cash holdings and the conditioning effects of anti-corruption efforts including the ongoing anti-corruption campaign. We find that firms appear to hold more cash in response to higher local corruption, supporting the bribery hypothesis. Local corruption also exacerbates the problem of corporate excessive cash holdings. The relationship between local corruption and corporate cash holdings in Vietnam is linear and persistent, which contrasts with some non-linear cross-country evidence provided by previous studies. Moreover, the intensity of anti-corruption efforts reduces firms’ incentives to hold more cash for bribery purposes. Similarly, in more corrupt regions, corporate cash holdings decrease during the period of the anti-corruption campaign.

Purpose The study aims to shed light on the dynamics of ethical climate formation at workplace through interactionist perspective. The authors investigate how knowledge-sharing behaviors influence ethical climates and how these effects change as individuals move from stage to stage of their career paths. Design/methodology/approach The authors used a quantitative survey design and used stratified random sampling to collect data from 263 auditors working at various audit firms in Vietnam. Findings The authors found that knowledge-sharing fosters benevolent and principled ethical climates. Moreover, in the later career stages, the influence of knowledge-sharing on these climates intensifies. Practical implications The findings offer insights for auditing firms and regulators in designing knowledge-sharing and ethics training programs tailored to career stages. Originality/value By integrating temporal career progression and social dynamics, this study advances interactionist theory and addresses a gap in understanding the micro-foundations of ethical climate formation.