Purpose This study aims to examine the direct impact of digital transformation on human resource efficiency in Vietnamese commercial banks and investigates the distinct moderating roles of labor cost, labor productivity and labor size in shaping this relationship. Design/methodology/approach Using panel data from 12 listed Vietnamese commercial banks (2014–2023), this study uses feasible GLS regression to examine the impact of digital transformation on human resource efficiency. Labor cost, labor productivity and labor size are modeled as moderating variables, while bank-specific financial characteristics are included as controls. Findings The research findings indicate that digital transformation investments by commercial banks enhance human resource efficiency. Moreover, factors such as labor cost, labor productivity and labor size among digitally skilled employees play a moderating role that amplifies the positive impact of digital transformation on human resource efficiency. Consequently, the outcomes of digital transformation among commercial banks vary depending on their operational context. Notably, supported by government policies, Vietnamese banks have accelerated digital transformation, invested in digital talent and achieved positive performance outcomes. Research limitations/implications The study focuses on listed Vietnamese banks and an accounting-based digital transformation proxy, so results may not extend to unlisted banks or other economies. Nevertheless, findings show that digital transformation investments deliver greater human resource benefits when paired with targeted labor spending and productivity gains – guiding managers and policymakers in sequencing digital and human-capital investments. Originality/value By integrating the resource-based view, human-capital theory and lean thinking, this study provides novel emerging-market evidence linking digital transformation to bank-level human resource efficiency and reveals how labor cost, productivity and scale shape its effects—offering policy implications for coordinated technology and skill investments.
Nguyen et al. (2026) studied this question.