Digital Transformation - Driving Force for Economic Recovery and Development

2021 witnessed more Vietnamese digital products aimed at solving Vietnamese problems, more products exported to other countries, and higher technology rankings of Vietnam. In the context of the new normalcy, digital transformation will be the driving force for economic recovery and development.

Fostering sectoral and field development

Speaking at the 3rd National Forum on Vietnam Digital Technology Development, Prime Minister Pham Minh Chinh affirmed that digital transformation is a vital trend of the world and an objective requirement for development. Digital technology is being strongly applied to make a fundamental shift in social life, improve working quality and efficiency, and create new and added values.

In Vietnam, digital transformation helps boost intensive and extensive sustainable development and plays an effective role in the fight against the COVID-19 epidemic and economic recovery and development. Digital transformation serves green transformation, green energy and clean energy, and supports working and study. In 2022 - 2023, it will be the focus of economic recovery and development in the wake of the pandemic.

Remarking on digital technology in the energy sector, Mr. Vo Quang Lam, Deputy General Director of Vietnam Electricity, said that EVN has provided electronic invoices across the system. The electric utility also promotes connectivity with banks and payment intermediaries to serve e-wallet and non cash payment. The group is also considering applying blockchain and AI technology to power production and business.

Tourism is one of the hardest-hit industries on account of the COVID-19 epidemic. Mr. Nguyen Le Phuc, Deputy Director of the Vietnam National Administration of Tourism (VNAT), said that Vietnam has now digitized museums and theaters among others, followed by many localities. Hanoi digitalized the Temple of Literature; Da Nang launched the Da Nang Tourism application; and Hue introduced the VR-enabled Imperial City tour program. By 2022, about 20 tourist attractions across provinces and cities will be digitized and connected with tourism platforms. Many businesses already introduced their own tourism applications in the digital medium such as Vietravel and Flamingo.

Technology helps companies to fight the epidemic and step into the new normal. Digital transformation enables them to optimize production and business activities. Currently, large-scale firms are advancing digital transformation. Technology platforms also assist SMEs to better manage and grow faster.

Developing digital business community

According to Deputy Minister of Information and Communications Pham Duc Long, digital transformation is a megatrend which requires digital technology enterprises to make this happen. They will be the nucleus and the core of national digital transformation.

The country currently has nearly 64,000 digital technology companies, 9.7% more than in 2020. The goal of having 70,000 digital technology firms in 2025 can be achieved next year. Their revenue is now nearly US$140 billion, up 9.3% year on year, nearly 1% higher than the ICT growth. In 2021, despite the strong outbreak of the COVID-19 pandemic, their revenue growth was still nearly 10%. Many Vietnamese companies have shifted to research and master new technologies such as 5G, AI and Bigdata. This is unprecedented.

Mr. Nguyen Van Khoa, General Director of FPT Corporation, called on the Vietnamese digital business community to work together for more robust national digital transformation, establish a powerful nation and particularly build a digital government based on three solid pillars: digital government, digital society and digital economy.

Needless to say, Vietnam is almost ready for a strong digital development. However, according to Minister of Information and Communications Nguyen Manh Hung, one more catalyst is still needed: The Government completes the digital institution, legalizes digital assets, digital products and services protected by law, opens up the space for innovation for digital businesses to enable them to test before being put into administration. The Government needs to invest more in digital technology.

By Ha Thu, Vietnam Business Forum