The Impact of Digital Transformation Readiness on Trade: Insight from Vietnam’s Network Readiness and Digital Provisions in Trade Agreements

The evolution of digital provisions in preferential trade agreements has raised the crucial role of digitalization in cross-border trade. The paper examines the effects of digitalization on Vietnamese exports in the moderating role of deep trade agreements. The paper incorporates the composite index of network readiness that captures the complex system of the digital economy, where technology has induced transformation, and humans conduct and benefit from an adequate scientific governance structure. Based on firm heterogeneity, the results indicate the significant impacts of digitalization on Vietnam’s exports across sectors. The findings indicate that Vietnam should reap the benefits of digitalization and deep regional integration by improving its digital capabilities, developing digital trade infrastructure, and aligning its regulatory environment.