Introduction
Entrepreneurship is widely recognized as a pathway for reducing poverty (Dzingirai, Reference Dzingirai2021; George, Merrill, & Schillebeeckx, Reference George, Merrill and Schillebeeckx2021). While the role of traditional entrepreneurship in poverty alleviation is well-documented, less is known about digital entrepreneurship (DE), the pursuit of entrepreneurial opportunities enabled by digital technologies (Nambisan, Reference Nambisan2017). DE offers unprecedented opportunities to create jobs, expand market access, and empower disadvantaged groups (Kraus, Palmer, Kailer, Kallinger, & Spitzer, Reference Kraus, Palmer, Kailer, Kallinger and Spitzer2019). Yet, many small-scale entrepreneurs struggle to adopt digital tools due to limited digital literacy (DL; Mei, Miao, & Lu, Reference Mei, Miao and Lu2022), constraining the potential of DE to address poverty.
Existing research has highlighted the benefits of digitalization for firm performance (Oggero, Rossi, & Ughetto, Reference Oggero, Rossi and Ughetto2020; Zhu, Liu, & Chen, Reference Zhu, Liu and Chen2020) and its role in poverty alleviation in countries such as India and China (Si, Yu, & Wu, Reference Si, Yu and Wu2015). However, there remains a lack of understanding of the mechanisms linking DL to poverty reduction. In particular, the role of a digital entrepreneurial mindset (DEM), the cognitive orientation that enables entrepreneurs to identify and pursue digital opportunities, remains underexplored. Vietnam, a rapidly developing economy with ongoing digital transformation and poverty reduction initiatives, provides a compelling context to investigate this relationship.
This study is exploratory in nature, employing a qualitative, multiple case study design to uncover how DL fosters a DEM and, in turn, enables poverty reduction through digital-based entrepreneurial innovation. Data were collected through semi-structured interviews with digital entrepreneurs across different provinces in Vietnam. This design allows for an in-depth understanding of the cognitive and contextual factors shaping the DE–poverty nexus in an emerging economy.
Guided by Social Cognitive Career Theory (SCCT) and the human capability approach (HCA), the study addresses two research questions: (1) How does DL shape the development of a DEM? and (2) Does this mindset translate into tangible poverty alleviation outcomes in Vietnam? By integrating SCCT and HCA, the study theorizes that digital skills enhance individual capabilities and self-efficacy, which empower entrepreneurs to create value and break cycles of poverty.
This research provides three significant contributions. First, it offers theoretical contributions by extending SCCT and HCA to the DE domain, clarifying the mediating role of DEM between DL and poverty reduction. Second, it provides empirical contributions by presenting qualitative evidence from Vietnam – an understudied yet increasingly relevant context in the Asian digital economy. Together, these insights enrich our understanding of how digital capabilities translate into socioeconomic empowerment and inclusive growth. Finally, beyond its scholarly value, this study holds growing relevance in the Asian region, particularly for Chinese scholars, policymakers, and practitioners. While there are notable parallels between Vietnam and China, such as political, geographical, and cultural environments, key distinctions also exist in economic and technological developments. Understanding DL, DEM, and poverty reduction in the Vietnamese context offers valuable lessons for regional collaboration in DE and poverty alleviation. Insights from this study may foster cross-border research partnerships, inform investment strategies by Chinese businesses in Vietnam, and support policy dialogue aimed at promoting shared prosperity and sustainable development across Asia.
Research Site
Vietnam has prioritized digital transformation as a strategy to enhance productivity, competitiveness, and economic growth, with the government targeting the digital economy to contribute approximately 30% of GDP by 2030 (Do, Reference Do2023; Mai, Reference Mai2021). Among Vietnamese cities, Da Nang stands out as a strategic hub in central Vietnam, with a population of 1.65 million, robust infrastructure, and proactive government initiatives supporting tourism, high-tech industries, and economic development (Lang, Reference Lang2024; Vietnam Airlines, 2023).
Despite its rapid growth and digital advancement, Da Nang still faces persistent poverty, with over 14,000 poor or near-poor households. Local authorities have implemented targeted programs, including job placement, livelihood support, and educational initiatives, as part of the National Target Program for Sustainable Poverty Reduction (2021–2025) (DaNang Today, 2022; Phuong, Reference Phuong2023). Digital platforms have increasingly supported these efforts, providing access to welfare programs and new income opportunities for disadvantaged groups (UNDP Vietnam, 2022).
Da Nang’s advanced digital infrastructure, high internet penetration, and tech-savvy workforce create an enabling environment for DE. Smart city initiatives, e-government programs, and industrial park development have facilitated the creation of thousands of jobs and attracted domestic and foreign investment (BIC Construction Architectural JSC, 2024; Hoai, Reference Hoai2024). Moreover, the city’s focus on inclusivity ensures that DE and digital services reach marginalized communities, positioning Da Nang as a promising context for studying the links between DL, DEM, and poverty reduction. Please see Table 1 for information about industrial parks in Da Nang City.
Industrial parks in Da Nang City
Table 1 Long description
The table lists seven industrial parks in Da Nang City with their area in hectares, ward or commune and district location, and main industry focus or site features. The largest site is Da Nang Hi-Tech Industrial Park at 1,129.76 hectares in Hoa Lien commune, Hoa Vang district, described as having six functional zones spanning production, research, training, administration, infrastructure, logistics, and services. Mid-sized parks include Hoa Khanh Industrial Park at 423.5 hectares and Lien Chieu Industrial Park at 373.5 hectares, both in Lien Chieu district and oriented toward diverse manufacturing and heavy industry, including construction materials and chemicals. Hoa Cam Industrial Park is 150 hectares and focuses on garments, electronics, components, and mechanical industries. Three parks are 50 hectares each: Da Nang Industrial Park, Da Nang Seafood Service Industrial Park, and Hoa Khanh Extended Industrial Park; the seafood service park emphasizes proximity to port, airport, and rail links supporting maritime trade and fishing. Overall, Lien Chieu district hosts multiple parks with heavy industry and manufacturing themes, while Son Tra includes a general industrial park and a logistics-oriented seafood service park. Industry descriptions are qualitative and may overlap across parks, so comparisons beyond area and stated focus should be treated as indicative rather than exhaustive.
Source: BIC Construction Architectural JSC (2024).
In general, the city’s combination of economic vitality, governmental support, and technological readiness makes it an ideal site for understanding the practical mechanisms through which DE can contribute to sustainable development in emerging economies.
Theoretical Background
Digital Literacy and Digital Entrepreneurship Mindset
DL has been identified as critical, providing entrepreneurs with the awareness, skills, and capabilities to access, manage, and leverage digital tools effectively (Honig & Samuelsson, Reference Honig and Samuelsson2015; Wibowo, Narmaditya, Saptono, Effendi, Mukhtar, & Mohd Shafiai, Reference Wibowo, Narmaditya, Saptono, Effendi, Mukhtar and Mohd Shafiai2023; Wibowo, Narmaditya, Sebayang, Mukhtar, & Shafiai, Reference Wibowo, Narmaditya, Sebayang, Mukhtar and Shafiai2023). DL equips individuals to harness technology for innovation, improve processes, and communicate effectively, thereby expanding entrepreneurial opportunities and fostering digital business creation (Kraus et al., Reference Kraus, Palmer, Kailer, Kallinger and Spitzer2019; Nambisan, Reference Nambisan2017; Oggero et al., Reference Oggero, Rossi and Ughetto2020).
The SCCT provides a framework for understanding how DL influences DEM. SCCT emphasizes the interplay of self-efficacy, outcome expectations, and goal orientation in shaping individuals’ behaviors (Lent & Brown, Reference Lent and Brown2006; Reference Lent and Brown2019). Applied to entrepreneurship, DL enhances entrepreneurial self-efficacy, enabling entrepreneurs to identify digital opportunities, integrate resources, and pursue innovative solutions. DL also shapes outcome expectations and goal-directed behavior, motivating individuals to engage in digital entrepreneurial activities with confidence in potential economic and social gains (Belchior & Lyons, Reference Belchior and Lyons2021; Segal, Borgia, & Schoenfeld, Reference Segal, Borgia and Schoenfeld2002).
Through these mechanisms, DL fosters DEM – the attitudes, competencies, and ways of thinking necessary to recognize, develop, and manage digital ventures. Entrepreneurs with a strong DEM are better positioned to embrace innovation, leverage technology, and generate value in digital markets. By integrating DL with SCCT, this study proposes that enhancing digital skills and knowledge strengthens self-efficacy, goal orientation, and positive outcome expectations, thereby cultivating DEM. This framework highlights the crucial role of DL in enabling entrepreneurs to thrive in the digital economy and, ultimately, contribute to economic empowerment and poverty reduction.
Digital Entrepreneurial Mindset, Entrepreneurial Innovation, and Poverty Reduction
Poverty is increasingly understood not only in terms of material deprivation but also through the HCA, which emphasizes individuals’ freedoms, competencies, and opportunities to achieve valued goals (Sen, Reference Sen1989). From this perspective, entrepreneurial capabilities enable individuals not only to succeed personally but also to generate employment, increase income, and contribute to broader societal development (George et al., Reference George, Merrill and Schillebeeckx2021; Kolade, Reference Kolade2018).
The DEM extends this approach to the digital economy, reflecting entrepreneurs’ ability to recognize and exploit digital opportunities for competitive advantage (Dalimunthe, Reference Dalimunthe2019). Entrepreneurs with DEM engage in digital entrepreneurial innovation, leveraging technologies such as web platforms, mobile tools, cloud computing, and big data to develop new products, services, and business models (Nambisan, Reference Nambisan2017; Naminse, Zhuang, & Zhu, Reference Naminse, Zhuang and Zhu2019).
DE has both economic and social implications. Economically, it drives poverty reduction by creating new businesses, generating income, and fostering job creation. Socially, it expands human capabilities, develops markets, and strengthens institutional frameworks, improving quality of life for disadvantaged populations (George et al., Reference George, Merrill and Schillebeeckx2021).
Thus, DEM is expected to positively influence entrepreneurial innovation, which in turn contributes to poverty alleviation. By equipping entrepreneurs with knowledge, skills, and resources to navigate the digital economy, societies can leverage DE as a mechanism for inclusive growth. Integrating HCA with DEM provides a compelling framework for understanding how digital skills and innovation can expand opportunities, empower individuals, and reduce poverty.
The proposed theoretical framework is presented in Figure 1.
Theoretical framework
Methods
Research Design
This study employs a qualitative, exploratory research design, using semi-structured interviews to gain an in-depth understanding of how entrepreneurs perceive and apply DL and DEM in relation to poverty alleviation. An exploratory approach is particularly appropriate because the intersection of DL, DEM, and poverty alleviation in the context of developing economies – especially Vietnam – remains under-researched and conceptually evolving. At this stage of the subtopic’s development, exploratory inquiry allows researchers to uncover emerging patterns, generate new theoretical insights, and identify context-specific factors that may not yet be captured in existing frameworks (Alvesson & Gabriel, Reference Alvesson and Gabriel2013; Stebbins, Reference Stebbins2001).
Semi-structured interviews were selected to provide flexibility for probing participants’ experiences while ensuring that core themes, including DL, DEM, and poverty alleviation, were consistently addressed (Köhler, Smith, Bhakoo, Reference Köhler, Smith and Bhakoo2022). The conversational nature of this method enables the exploration of unexpected avenues while maintaining comparability across participants, thereby facilitating rich and nuanced data collection.
Data Collection and Sample
The study targeted entrepreneurs in Da Nang City, Vietnam, who were either current or former business owners and engaged in DE, such as creating digital products or using digital solutions to enhance operations.
Semi-structured interviews, guided by 14 predeveloped questions adapted from prior research, were conducted, recorded, and transcribed. The transcripts were analyzed using NVivo 12 and thematic analysis techniques, enabling the researchers to categorize data into key themes aligned with the study’s conceptual framework.
Results
Overview of Participants
The sample included 11 entrepreneurs (three female, eight male) operating across diverse sectors, including technology, tourism, finance, education, manufacturing, and commercial services. All participants had at least two years of entrepreneurial experience, and their businesses were classified as small or medium-sized enterprises (SMEs) employing fewer than 100 staff. A summary of the participants’ profiles is provided in Table 2.
Summary of participants’ profile
Table 2 Long description
The table lists 11 coded participants and summarizes their industry, job title, years of experience, and approximate organization size by employee range. Participants come from technology (3), tourism (2), finance (1), education (1), manufacturing (2), and commercial services (2). Most roles are CEO, with three participants labeled CEO–President (one in technology, one in manufacturing, one in commercial services). Years of experience span from 2 to 8 years, with the highest experience in tourism (8 years) and several participants at 2 years across technology and commercial services. Organization size ranges from under 10 employees to 50–100 employees; the 50–100 range appears in tourism and manufacturing, while technology and commercial services include smaller firms under 10 or 10–50. Overall, the sample emphasizes senior leadership in small to mid-sized organizations, and the employee counts are grouped into broad ranges rather than exact totals.
Source: Author’s own work.
Digital Foundations
Entrepreneurs’ digital foundations were shaped by early exposure to technology, often beginning in childhood, which fostered confidence and familiarity with digital tools. Technology played a central role in both personal and professional contexts, supporting communication, information management, and business operations. While technical skill levels varied, participants emphasized the strategic application of technology over deep technical expertise as crucial to operational success, efficiency, and innovation (Figure 2).
Key components of digital foundations in entrepreneurial development
From Digital Literacy to Entrepreneurial Mindset
The role of digital literacy in entrepreneurial intent and decision making
DL was reported as a critical factor in shaping entrepreneurial intentions and decision-making. Some participants viewed DL as directly influencing business ideas by helping them recognize opportunities and innovate solutions. Others emphasized an indirect role, with DL enhancing confidence and operational efficiency, particularly in managing processes and problem-solving. Across perspectives, DL served as both a source of inspiration and a practical tool, enabling entrepreneurs to leverage trends, adapt to market demands, and strategically apply technology in their ventures (Figure 3).
The role of digital literacy in shaping entrepreneurial intent and decision-making
The integral role of digital literacy in entrepreneurial innovation and business operations
DL also played a pivotal role in entrepreneurial innovation and business operations. Participants highlighted its contribution to customer relationship management, product development, marketing, financial management, and internal communication. Digital tools improved operational efficiency through resource optimization, data-driven decision-making, and workflow automation. Entrepreneurs emphasized the transformative role of e-commerce and social media in reaching broader markets, acquiring customers, and scaling businesses. Technology was seen as enabling adaptability, productivity, and innovation across functions, thereby enhancing both economic and social impact (Figure 4).
The integral role of digital literacy in entrepreneurial innovation and business operations
Figure 4 Long description
The diagram illustrates the role of digital literacy in entrepreneurial innovation and business operations. At the top, a central node represents the integral role of digital literacy. From this node, branches extend downward, dividing into three main categories: enhanced communication and collaboration, improved resource optimization and innovation and technology′s role in business functions. Each category further branches into specific areas. Enhanced communication and collaboration include internal communication and customer relationship management. Improved resource optimization and innovation cover product development, marketing, financial management and data-driven insights. Technology′s role in business functions encompasses e-commerce, social media and workflow automation. Each subcategory is connected by arrows indicating the flow of influence and impact, highlighting how digital literacy contributes to various aspects of business operations and innovation.
Societal contexts and entrepreneurial intent
Entrepreneurial intentions were shaped by broader societal contexts, including digital transformation trends and disruptive events such as the COVID-19 pandemic. Participants recognized that high DL provided a competitive advantage in seizing emerging opportunities. DL enabled entrepreneurs to respond effectively to disruptions, explore new sectors, and innovate to meet changing societal needs (Figure 5).
Societal influence and disruptive events shaping entrepreneurial intent in digital literacy
Challenges and risks of technology integration
Despite its benefits, integrating technology posed significant challenges and risks. Entrepreneurs reported difficulties merging new systems with existing processes, selecting appropriate technologies from a crowded market, and ensuring employee adoption. Financial risks were significant, as poor decisions could lead to wasted investments. Additionally, security vulnerabilities, fraud, and intellectual property concerns emerged as potential pitfalls. Entrepreneurs emphasized that insufficient DL could exacerbate these challenges, highlighting the importance of digital competence for successful technology adoption (Figure 6).
The challenges and risks of technology integration in entrepreneurial innovation
Digital Entrepreneurship, Innovation, and Poverty Reduction
Entrepreneurs emphasized both the direct and indirect social contributions of their ventures, particularly in alleviating poverty. Businesses generated stable employment, including flexible online opportunities, while promoting skill development for employees. Digital platforms enabled underrepresented groups, such as women and people with disabilities, to participate in economic activities, fostering financial independence and societal inclusion. Technology facilitated business scaling, market expansion, and ecosystem development, enhancing both economic growth and social impact. These findings underscore the integral role of DE in job creation, skill-building, inclusivity, and poverty reduction (Figure 7).
Digital innovation venturing’s impact on poverty reduction
Figure 7 Long description
The diagram illustrates the impact of digital innovation on poverty reduction through a hierarchical structure. At the top, ′Digital Innovation′s Impact on Poverty Reduction′ is the central node. It branches into five main categories: ′Community Impact,′ ′Inclusive and Flexible Employment Opportunities,′ ′Job Creation through Digital Innovations,′ ′Skill Development and Workforce Usability,′ and ′Technology as a Catalyst for Economic Growth.′ Each category further divides into subcategories. ′Community Impact′ includes ′Social and Charitable Initiatives.′ ′Inclusive and Flexible Employment Opportunities′ branches into ′Flexible Work for Marginalized Groups′ and ′Improved Job Stability and Financial Independence.′ ′Job Creation through Digital Innovations′ splits into ′Direct Employment Opportunities′ and ′Indirect Employment Creation.′ ′Skill Development and Workforce Usability′ includes ′Development of Resilient Workforce′ and ′Training and Upskilling of Employees.′ Finally, ′Technology as a Catalyst for Economic Growth′ branches into ′Ecosystem Creation through Technology′ and ′Scaling Economic Opportunities.′.
Government Support and Policy Implications
Participants highlighted the supportive role of the Danang City government in fostering entrepreneurship through incubators, educational programs, and investment opportunities. Entrepreneurs stressed the need for holistic government support, combining infrastructure development, educational reform, and policy initiatives to enhance digital skills and prepare a tech-savvy workforce. Strengthening education and incubator programs was viewed as crucial to minimizing future skills gaps, ensuring businesses can adapt to technological evolution, and ultimately supporting poverty reduction (Figure 8).
Suggestions for government support in fostering digital entrepreneurship
Discussion
The findings demonstrate a dynamic, mutually reinforcing relationship among DL, DEM, entrepreneurial innovation, and poverty reduction. DL forms the foundation by equipping entrepreneurs with the technical knowledge and confidence to navigate digital tools and identify emerging opportunities. High DL enables individuals to recognize market gaps, anticipate technological trends, and apply skills strategically, fostering a mindset oriented toward innovation and value creation.
Entrepreneurs with strong digital skills develop a mindset that combines technical proficiency with entrepreneurial creativity, allowing them to conceptualize solutions to real-world problems and generate scalable business opportunities. This mindset drives entrepreneurial innovation, manifested in improved business processes, adoption of digital tools, and the creation of new ventures. Through such innovation, businesses can expand efficiently, respond to market needs, and integrate technology into operations to enhance productivity and reach.
Entrepreneurial innovation directly impacts poverty reduction by generating stable employment and income, particularly for marginalized groups, such as stay-at-home parents or individuals with disabilities. Digital platforms facilitate flexible work arrangements and provide broader market access, enabling businesses to grow while simultaneously creating economic opportunities for communities. Additionally, as firms reinvest in employee training and skill development, they strengthen human capital, workforce resilience, and digital competencies, further enhancing long-term socioeconomic benefits.
Overall, the framework depicts a self-reinforcing cycle: DL develops a DEM, which fuels entrepreneurial innovation. This innovation generates employment and promotes economic empowerment, further strengthening digital skills within the community. Over time, this cycle contributes to a robust local economy where DE not only transforms individual businesses but also promotes sustainable socioeconomic development. Figure 9 highlights how integrating DL into entrepreneurship can simultaneously advance business success and societal well-being, providing a model for leveraging the digital economy to alleviate poverty.
The theoretical framework of digital literacy’s pathway to poverty reduction through entrepreneurship
Figure 9 Long description
It begins with ′Digital Literacy,′ which connects to ′Digital Entrepreneurial Mindset.′ This leads to ′Entrepreneurial Innovation,′ and finally to ′Poverty Reduction.′ Each main component has associated subpoints: - Digital Literacy: • Early Exposure to Technology • Importance of Digital Skills in Personal and Professional Life • Importance of Digital Skills in Business • Importance of Digital Skills in Education - Digital Entrepreneurial Mindset: • Impact of Digital Literacy on Entrepreneurial Decision Making • Societal Influence on Entrepreneurial Mindset • Role of Digital Literacy in Entrepreneurial Decision Making • Societal Influence on Entrepreneurial Mindset - Entrepreneurial Innovation: • Enhanced Communication and Collaboration • Impact on Research and Development and Innovation • Impact on Business Operations • Impact on Business Functions - Poverty Reduction: • Community Impact • Job Creation through Digital Economy • Inclusive and Empowered Economic Opportunities • State Contribution to Economic Growth.
Contributions
Theoretical integration of digital literacy, entrepreneurial mindset, and innovation for poverty reduction
This study contributes to theory by integrating SCCT and the HCA into a unified framework explaining how DL fosters entrepreneurial innovation that drives poverty alleviation. While SCCT emphasizes the role of self-efficacy and outcome expectations in career and entrepreneurial choices, HCA explains how skill acquisition enhances productivity and socioeconomic advancement. By linking these perspectives, the study advances the theoretical understanding of how digital skills translate into innovative entrepreneurial behavior and economic empowerment. This integration extends both theories beyond individual-level cognition and education to community-level socioeconomic outcomes.
Conceptualization of a self-reinforcing digital entrepreneurship cycle
This study also contributes a novel conceptual framework illustrating a self-reinforcing cycle linking DL, DEM, entrepreneurial innovation, and poverty reduction. The findings show that DL enhances entrepreneurial mindset, which stimulates innovation. Innovation, in turn, generates employment and community wealth, leading to further improvements in DL through experience and reinvestment. This cyclical model extends existing theories by explaining not only the antecedents of DE but also its recursive and community-level effects, offering a new lens for understanding the sustainability of digital ecosystems in emerging markets.
Advancement of poverty alleviation theory through digital empowerment
Finally, the study advances the theoretical understanding of poverty reduction by positioning DL and entrepreneurship as central mechanisms of empowerment rather than mere technological or economic interventions. Unlike prior models that treat technology adoption as a linear input-output process, this study shows that digital competencies catalyze innovation-driven pathways for sustainable poverty reduction. This theoretical refinement contributes to the growing field of digital development studies, emphasizing the human and cognitive dimensions of technological empowerment.
Empirical evidence from an emerging economy context
Empirically, the study provides the first evidence from Da Nang City, Vietnam, showing how DL, DEM, and entrepreneurial innovation interact to reduce poverty. Previous studies have largely examined DE in developed economies, often neglecting its implications in lower-middle-income contexts. By analyzing data from an emerging economy, this research demonstrates that digital skills not only enhance entrepreneurial capabilities but also serve as a mechanism for inclusive growth. The results confirm that DE can be a powerful tool for socioeconomic development in transitional economies, filling an important empirical gap in the DE literature.
Implications for the Chinese Context
The findings of this study strongly align with China’s ongoing digital transformation agenda and its national strategy to promote ‘mass entrepreneurship and innovation’ (大众创业, 万众创新). China’s rapid expansion of digital infrastructure and high smartphone penetration have fostered an enabling environment for DE, particularly in rural and underdeveloped areas (China Daily, 2025). The demonstrated relationship between DL and DEM provides theoretical support for understanding how China’s investments in DL initiatives, such as rural e-commerce training and digital upskilling programs, can enhance entrepreneurial capacity. By cultivating a digital mindset among small business owners and rural entrepreneurs, these initiatives help bridge the digital divide and advance China’s broader goals of inclusive development and poverty alleviation (Mei et al., Reference Mei, Miao and Lu2022; World Bank, 2019).
Furthermore, the cyclical model of DL, DEM, and innovation identified in this study reflects China’s broader transition from a manufacturing-based to an innovation-driven economy. This model offers valuable insights for policymakers seeking to strengthen the digital entrepreneurial ecosystem. Reinforcing DE through targeted education, incubation programs, and platform-based support can accelerate China’s progress toward sustainable poverty reduction and digital inclusion, outcomes that are also relevant for other emerging economies, undergoing similar digital transformations (China Daily, 2025; World Bank, 2019).
Vietnam, in particular, presents a compelling comparative case for Chinese policymakers and entrepreneurs. The two countries share structural and political similarities, making Vietnam a natural extension for Chinese business expansion and collaboration. Vietnam’s geographic proximity, trade-agreement advantages, competitive labor costs, and stable political environment make it an attractive investment destination for Chinese entrepreneurs who are familiar with the regional context.
At the same time, important distinctions exist. While both countries have made significant technological strides, China’s R&D capabilities, scale, and technological depth far surpass those of Vietnam, where constraints such as limited human capital, funding, and technological infrastructure remain. Therefore, Chinese entrepreneurs should tailor their strategies to Vietnam’s developmental stage by adopting a hybrid model: investing in R&D, human capital, and technology transfer, areas where Vietnam faces shortages, while leveraging Vietnam’s young, skilled, and cost-effective workforce, supply chain integration, openness to foreign R&D, and government incentives.
Finally, given Vietnam’s smaller population, territory, and resource base compared to China, Chinese firms should pursue focused and strategically targeted investments. By aligning their strengths with Vietnam’s developmental needs, Chinese businesses can both create mutual economic value and contribute to the region’s shared goals of sustainable, inclusive digital growth.
Limitations
Despite the rich, context-specific insights gained through semi-structured interviews, this study has several limitations. First, the study relied on thematic qualitative analysis without quantitative measures of poverty alleviation. Future research could address this by incorporating statistical data, developing multi-level Human Poverty Indices, or using mixed-method designs. Second, the data were collected exclusively from entrepreneurs in Da Nang City, limiting the scope for broader generalization. Additionally, data were gathered from August 2023 to May 2024, potentially missing temporal shifts in DE, technology adoption, or poverty reduction initiatives. Third, reliance on self-reported information introduces the possibility of response bias, as participants may interpret their experiences aligned with perceived expectations. Finally, the cross-sectional design does not capture longitudinal changes, underscoring the need for future studies.
Conclusion
The study offers practical implications for policymakers, educators, and entrepreneurs. Strengthening digital infrastructure, integrating technology-driven curricula, and supporting skill development are essential strategies to enhance DL, nurture entrepreneurial capacity, and promote sustainable economic growth. These measures can enable DE to serve as a powerful tool for poverty alleviation and inclusive development in Vietnam.
If this article could provide one message, it would be that DL is a critical driver of economic development and social empowerment, particularly in regions where traditional entrepreneurial approaches may be less effective in addressing contemporary economic challenges. Digital literacy enforces entrepreneurs’ digital mindsets and, in turn, promotes entrepreneurial innovation that can help alleviate poverty.
Data available statement
The study materials are available in the Open Science Framework (OSF): https://osf.io/gyarp/overview?view_only=4e6169688127429a832e4475245297ed
Loan Ngoc Tuong Pham (Lnp16@psu.edu) is an assistant professor of business at Penn State University–Scranton. Her research interests include leadership, ethics, human resource development, entrepreneurship, public organizations, and cross-cultural management. She has published work in high-quality journals such as the International Journal of Manpower, Asia Pacific Business Review, Leadership & Organization Development Journal, Public Organization Review, and the Journal of Asia Business Studies, among others.
Minh Nhat Nguyen (minh.nguyen244@rmit.edu.vn) is a lecturer in the Economics and Finance Department at RMIT University, Vietnam. His expertise spans cyber security behavior, entrepreneurship, educational technologies, and supply chain management. Throughout his career, he has contributed extensively to academic literature and has published in international journals and conferences. One of his papers was recognized as a Top Trending Article of 2024 by the International Journal of Production Research.
Nhan Truong Thanh Dang (nhandtt@hub.edu.vn) is the Head of the Management Division in the Faculty of Business Administration at Ho Chi Minh University of Banking, Vietnam. She has a decade of experience in teaching and research. Her primary research interests include human resource management, organizational behavior, entrepreneurship, and business development.
Lam Dang Nguyen (lnguyen@commonwealthu.edu) is a professor and Chair of the Department of Management and Co-director of the Global Business Institute at the Commonwealth University of Pennsylvania. He is also a research fellow at the University of Economics Ho Chi Minh City. He has served as Guest Editor for special issues in high-quality journals such as the International Journal of Public Administration. His research has been widely published, including in the International Journal of Manpower, Asia Pacific Business Review, Leadership & Organization Development Journal, and other reputable outlets.
