Abstract This paper investigates whether foreign direct investment (FDI) significantly facilitates the access of firms in developing countries to digital transformation. It also examines if the level of access varies across firms of different geographical regions and operating sectors. Empirical analysis on a sample of more than 8000 firms in Vietnam during 2019 indicates that FDI plays an important role in helping firms cope with challenges raised by Industry 4.0. In addition, it lends support