In Vietnam, digital transformation has been considered as the leading strategy of commercial banks, especially in terms of credit risks. Therefore, theymust identify how their digital transformation affects their credit risks tomaintain effective operation and steady growth in a complex and changing market environment. Our study takes 29 commercial banks in Vietnamfrom 2014 to 2022 as the research object to test the impact of bank digitaltransformation on credit risk. In particular, the level of digital transformation of banks is measured by the ICT Index. The ICT Index is the officialmeasure that evaluates the level of information technology application nationwide each year, with separate indicators for ministries and branches.Banks in Vietnam also use the ICT Index to assess their readiness and ability to apply information technology in the digital transformation process.Various regression models including Pooled Ordinary Least Squares (OLS),Fixed Effects Model (FEM), Random Effects Model (REM), Generalized LeastSquares (GLS) are applied using STATA 17. Research results show that creditrisk is affected by 5 factors: the information technology development andapplication readiness index (ICT Index), inflation rate (INF), return on equity(ROE), loans to customers (LOAN), and operational diversification (NIIC).On that basis, the study proposes recommendations for commercial banksto promote their digital transformation process. In addition, the state andpolicymakers also have appropriate measures to promote digital transformation in the Vietnamese banking system.