Joint efforts needed to promote digital economy in Vietnam

The “E-Conomy SEA 2021” report, co-released by Google, Bain and Temasek, shows that Vietnam’s internet economy in 2021 reached 21 billion USD and contributed 5% of GDP. It is seven times higher than in 2015 and the figure is projected to hit 57 billion USD in 2025, ranking second in Southeast Asia.

Such figures show that Vietnam has a golden opportunity to promote the internet economy, especially digital transformation platforms in the digital economy. The Vietnamese government aims to have the digital economy contribute 20% of GDP by 2025 and 30% by 2030. Recently, the Prime Minister issued the decision to approve the national strategy on digital economy and digital society development, and selected October 10 as National Digital Transformation Day.

Currently, ministries and agencies are making determined efforts to accelerate digital transformation to fulfil the 2025 target. Some sectors are witnessing smooth-sailing progresses while certain traditional sectors are facing numerous difficulties. Therefore, digital transformation should rely on unity, sharing and connectivity. People and enterprises need to join hands in the efforts to raise the contribution of the digital economy.

In the past two years of being affected by COVID-19, many enterprises have undergone rapid changes and digital transformation has created a new resource, namely data, which has become a resource for the digital economy to grow and open a new space for development.

It is both an opportunity and a challenge, because collecting data is already not easy, and how to put such data into use is another challenge for localities and enterprises. Once again, data will open new development opportunities for Vietnam, a country with a large population and a fast-rising number of enterprises.

After two years of implementing the National Digital Transformation Programme, preparations are nearing completion. To date, the majority of agencies and localities have formulated their digital transformation plans. Awareness about digital transformation has been increased in agencies and local governments at all levels as well as most sectors of the economy. National databases are being formed and are growing rapidly, from demographic data to corporate, land and insurance data.

However, Vietnam’s new development space lacks planning and well-designed combinations. Data is scattered and not open enough; human and financial resources for digital transformation are not concentrated; and digital transformation platforms and solutions are being developed without any planning or orientation.

International experience suggests that in order to accelerate the digital economy, it is necessary to have the joint efforts of all ministries, agencies, localities and especially the business community. In Vietnam, 95% of enterprises are small and medium-sized enterprises (SMEs) with a fast rate of digital transformation rate, but their foundation and internal strengths remain limited. Enterprises specialising in IT and digital transformation should take action to approach SME customers in order to promote digital economic development.

Digital technology companies are making efforts to develop high-quality digital transformation platforms and solutions, to invest in and accelerate the application of new technologies, as well as to collaborate to create a digital ecosystem to assist government agencies and enterprises with digital transformation. Enterprises have pledged to stand ready to work with the government, ministries, agencies and localities to develop the digital economy and accelerate digital transformation.