Digital transformation is profoundly reshaping banking operations and governance models across emerging economies; however, the pace of digitization does not necessarily translate into commensurate governance capabilities. This study examines the case of Vietnam to elucidate the transition from transaction digitization to organizational transformation and digital governance, while drawing broader implications for emerging markets. The research employs a combination of structured literature analysis, secondary data, and descriptive statistics from the State Bank of Vietnam, the World Bank, the International Monetary Fund (IMF), the Asian Development Bank (ADB), the Bank for International Settlements (BIS), the Financial Stability Board (FSB), the Organisation for Economic Co-operation and Development (OECD), and international research studies. The findings indicate that the level of digitization in Vietnam’s banking sector has increased rapidly. Four years after the implementation of Decision No. 810/QD-NHNN, numerous core banking operations have been fully digitized, while at many credit institutions, more than 90% of transactions are conducted through digital channels. During the first eleven months of 2024, cashless payments reached 15.92 billion transactions, representing an increase of 56.94%; QR-code transactions rose by 106.68% in volume and 84.77% in value. Nevertheless, digital financial inclusion remains uneven across gender and income groups. At the same time, increasing digitization has intensified risks associated with data, artificial intelligence, model risk, cybersecurity, and third-party dependencies. The study argues that the relationship between technology and performance is not linear. Sustainable value emerges only when technology and data are effectively absorbed through dynamic capabilities and transformed into digital governance capabilities. Accordingly, the study proposes a framework of technology and data → dynamic capabilities → digital governance capabilities → performance, resilience, and financial inclusion, thereby shifting the focus from “how far digitization has progressed” to “how effectively what has been digitized is governed.”

Dr. Luu Ngoc Tho,"From Digitization to Digital Governance: The Dynamic Capabilities of Vietnam’s Banking Sector in Risk Governance and Financial Inclusion—Implications for Emerging Markets" International Journal of Advanced Multidisciplinary Research and Educational Development, V2(5): Page(794-801) September - October 2026. ISSN: 3107-6513. www.ijamred.com. Published by Scientific and Academic Research Publishing.