Vietnam Signals Renewed Focus on Digital Economy and Transformation

Vietnam's Prime Minister Pham Minh Chinh chaired the 8th meeting of the National Committee on Digital Transformation on April 24 on strategies to strengthen the digital economic sector, a crucial part of Vietnam's broader economic restructuring for the 2021-2025 period.

Prime Minister Chinh outlined a three-pronged strategy for digital transformation. Firstly, he emphasized the need for institutional reforms, particularly those that facilitate the digital transition.

Then, the PM highlighted the significance of skilled human resources as central to successful transformation. Finally, the Prime Minister stressed the importance of robust digital infrastructure.

Digital Transformation as a National Priority

The Prime Minister's emphasis on digital development has been persistent. He has consistently presented it as a key solution to several national challenges. Digital transformation, the premier believes, helps reduce bureaucracy and the associated costs faced by citizens and businesses.

Additionally, it is seen as a key tool in increasing transparency and combatting corruption.

The COVID-19 pandemic's economic disruptions have only intensified the Vietnamese government's focus on fostering growth and resiliency through a vibrant digital economy. As traditional economic drivers falter, Vietnam looks to technology-enabled economic sectors to pave a path towards sustainable growth.

Measuring Progress and Sharing Best Practices

During the meeting, Prime Minister Chinh urged delegates to critically assess Vietnam's progress in digital transformation. He emphasized the need for evidence-based evaluations, highlighting both successes and persistent obstacles.

The objective, the Prime Minister stated, is to learn from best practices within the nation to scale the most effective digital transformation strategies.

Challenges and Breakthroughs

Despite Vietnam's strides in digital transition, challenges persist, particularly with inadequate digital infrastructure in some regions and cybersecurity issues hampering widespread digital adoption. To tackle these hurdles, the National Committee on Digital Transformation has laid out its 2024 Work Plan, delineating four crucial pillars of development.

Firstly, fostering the growth of the IT industry within Vietnam is prioritized, aiming to bolster its domestic technology sector to wield greater economic influence and reduce dependence on external tech solutions.

Secondly, the focus extends to digitalizing traditional economic sectors, recognizing the importance of integrating digital strategies to enhance productivity and competitiveness, thereby modernizing existing industries.

Thirdly, there's an emphasis on digital governance, with a commitment to leveraging digital platforms to streamline government operations, promote transparency, and bolster citizen engagement, both internally within government processes and externally in citizen-government interactions.

Lastly, Vietnam seeks to harness the power of digital data as a catalyst for innovation and economic advancement. This involves strategic data management practices, emphasizing robust data collection and security measures to cultivate a flourishing digital ecosystem.

Ambitious Aims

Analysts note that Vietnam has set ambitious targets, including doubling the digital economy's contribution to GDP to 30 percent by 2030 from the 16.5% last year. However, concrete, well-defined implementation plans are crucial to translate these goals into tangible outcomes.

The committee's 2024 Work Plan lays out several potential strategies. Among these are the establishment of special economic zones focused on technology and innovation.

Additionally, it calls for greater investment in digital skills training and policies to promote non-cash payments worth trillions of Vietnamese Dong in daily transactions.

Vietnam's revitalized focus on its digital economy offers great promise but will require concerted efforts, streamlined implementation, and continuous adaptation to overcome the hurdles standing in the way of success.