FINTECH DEVELOPMENT AND ESG IN VIETNAM: CHALLENGES AND OPPORTUNITIES IN THE ERA OF DIGITAL TRANSFORMATION

Abstract

FinTech (FT) has recently attracted substantial scholarly attention as a pivotal driver of sustainable development, with a distinctive influence on environmental, social, and governance (ESG) outcomes. This study seeks to advance the existing discourse by investigating the effect of FT on ESG factors within the context of Vietnam. Employing data spanning the period from 1996 to 2023, the research utilises the ARDL Bound testing approach to examine the relationship both in the short term and over the long term. The results indicate that FT negatively affects ESG in the short run, whereas it exhibits a significant positive impact on ESG in the long run. The reliability of these findings is further validated through Fully Modified OLS (FMOLS) and Canonical Cointegration Regression (CCR) methods. These findings underscore the necessity for tailored FT policies that consider the specific environmental and socio-economic contexts, thereby enhancing ESG performance and supporting sustainable development in Vietnam.