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Vietnam launches digital transformation campaign

Image credit: Ministry of Information and Communications

The Ministry of Information and Communications (MIC) launched a campaign in Hanoi on 22 May to step up digital transformation using cloud computing technology.

At the launch ceremony, the MIC Minister, Nguyen Manh Hung, said that domestic telecom companies have mastered the technology and built basic platforms for distant learning, health check-ups and treatment, accounting, and cyber-security and safety, among others.

Vietnam now has 27 data centres with over 270,000 servers belonging to eleven local enterprises, he added.

The domestic cloud computing market is worth nearly US $200 million and growing more than 30% annually. Vietnamese firms, however, account for just 20% of the market.

The Minister noted that successful digital transformation would help Vietnamese firms save costs, maintain operations, and overcome difficulties, especially amid the COVID-19 pandemic.

The Deputy Director-General of the MIC’s Information Security Authority, Nguyen Khac Lich, also announced a set of technical criteria in choosing cloud computing platforms in service of e-government.

Those meeting the criteria will be announced in the near future.

Eleven domestic cloud computing enterprises have committed to offering a 20% discount to new users until 22 July, to stimulate demand.

Furthermore, according to a recent study, telecoms, IT, and clean technologies are among a few of the country’s sectors that have the potential for high growth in the next three years.

The others include clean agriculture, retail, and healthcare and pharmaceuticals.

The report said this also reflects the current development trend of promoting technologies in parallel to protect local firms. They, therefore, have enhanced clean technologies, applying IT in automation, machine learning, and data exchanges to reduce time, and saving costs as well as strengthen connections with other countries.

Additionally, the demand for healthcare has been always a top priority, especially amid the outbreak of the novel coronavirus.

The private economic sector has seen strong development in the period, continuing to be the main momentum of the economy with the highest CAGR of 30.1%.

The number of businesses in the sector also made up the highest portion of 74.2%. The private companies have proven their potential for the country’s economic development in recent years due to their stable growth and increasing contribution.

The sector has created 42% of the country’s GDP, contributing 30% to the state budget and employing 85% of the total labourers nationwide.

The stable economy and high GDP growth in recent years in Vietnam have been a good foundation for the development of service and technology sectors, especially food and beverage, retail, telecommunication, and IT.

In the report, the surveyed firms said the growth of the local and regional markets in the past five years has been the biggest contribution to their growth, followed by the development of new products, expanding existing markets, new market segments, and the availability of skilled labourers at competitive costs.

The survey also revealed that the effects of COVID-19, the rising of rivals and the increase of inputs and complicated administrative procedures have been challenges for the businesses.

The enterprises said they would focus on four strategies to overcome the difficulties including increasing revenue in existing markets, improving product quality, introducing new products, and reducing costs.


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