MODERATING ROLE OF DIGITAL GOVERNMENT FOR FOSTERING FINTECH DEVELOPMENT: A CASE STUDY OF THE EMERGING ECONOMY IN VIETNAM
DOI:
https://doi.org/10.18623/rvd.v22.n7.4045Keywords:
Legal Framework, Fintech Development, Digital Government, Technological Infrastructure, Emerging EconomyAbstract
The rapid expansion of financial technology (Fintech) has significantly transformed financial systems in emerging economies, yet the determinants of fintech development remain insufficiently explored in transitional contexts such as Vietnam. This study investigates the policy-related and institutional factors contributing to fintech development in Vietnam, with particular emphasis on the moderating role of digital government. Using a mixed-methods approach, qualitative insights were first obtained through in-depth discussions with 35 finance and banking experts in Ho Chi Minh City to refine the research constructs and questionnaire design. Subsequently, quantitative data were collected via an online survey of 577 banking professionals working in fintech-related roles across five major Vietnamese cities. The proposed research model was empirically tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The findings reveal that technological infrastructure, legal framework, innovation culture, customer behavior, finance and economic conditions, and digital government all exert positive and significant effects on fintech development. Among these factors, customer behavior emerges as the most influential determinant. Significantly, digital government not only directly enhances fintech development but also positively moderates the relationship between technological infrastructure and fintech development, strengthening the effectiveness of digital infrastructure investments. This study contributes to fintech literature by integrating digital government as both a direct driver and a moderating mechanism within an emerging economy context. The results offer valuable policy implications for governments seeking to foster sustainable fintech ecosystems through coordinated digital governance and regulatory strategies.
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