Vietnam to benefit significantly from a digital economy

A workshop entitled “The potential of Vietnam’s digital economy” held by the Vietnam National Innovation Center (NIC) and Google on October 18 discussed the outlook for Vietnam’s digital economy to 2030.

If fully utilized, digital technology could bring Vietnam VND1.733 quadrillion ($74 billion) by 2030, with production, agriculture and food, and education and training likely to benefit the most, according to a report from AlphaBeta.

The report also pointed out that Vietnam holds many advantages in having a digitized economy, with a large proportion of its population being familiar with technology and owning a smartphone, and in having the second-largest growth rate in the internet economy in Southeast Asia. The digital economy is becoming an important development feature and trend in the country, Deputy Minister of Planning and Investment Tran Duy Dong said in commenting about Vietnam’s potential.

Mr. Jacques Morisset, World Bank Lead Economist and Program Leader for Vietnam, recommended the country focus on three priorities: upgrading digital skills for employees, encouraging businesses to innovate, and enhancing access to and the quality of information in order to move towards a contactless economy and become a high-level economy.

It is expected that digital technology will be applied in aspects such as pandemic prevention and business activities. Technologies in new business models are expected to help increase revenue and save on productivity costs, thus creating significant economic value and contributing to GDP growth.

In order to realize the potential digital technology possesses, the Ministry of Planning and Investment has coordinated with international associations and corporations to advise on and propose major issues regarding mechanisms and policies and the transformation of traditional economic models into digital models. The NIC, meanwhile, has cooperated with partners to organize training and capacity building for businesses.

However, Vietnam still faces challenges in legal regulations, limited digital connectivity, a shortage of digitally skilled human resources, and connectivity problems.