The rapid advancement of technology poses both opportunities and significant challenges for the banking sector. This chapter investigates the impact of technology investment on the financial stability of Vietnamese commercial banks, utilizing unbalanced panel data from 26 banks over the period 2011 to 2022. The analysis reveals a negative overall relationship between technological investment and financial stability. However, the effect differs across bank sizes: while the evidence is inconclusive for smaller banks, technology investment appears to contribute to increased instability among larger banks. Additionally, financial stability is found to be influenced by other key factors, including bank size, financial structure, liquidity risk, and broader economic growth. The chapter concludes by discussing policy implications for macro-level management and bank governance aimed at safeguarding financial stability within the banking system.