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Ho Chi Minh Wants Digital Economy to Contribute 25% to GRDP by 2025

A crucial task to recover and develop its local economy in the post-pandemic era is to promote all-around digital transformation. Ho Chi Minh City’s digitisation programme, issued in July 2020, aims for the digital economy to contribute 25% to its gross regional domestic product (GRDP) by 2025, and 40% by 2030. This year, the city wants to raise the digital economy’s proportion in the GRDP to 15%. It has prioritised ten sectors for digitisation: healthcare, education, transport, finance/banking, tourism, agriculture, logistics, environment, energy, and human resources training.

Speaking at a seminar on 25 March, the Director of the Municipal Department of Information and Communications, Lam Dinh Thang, noted that because of the pandemic, HCM City’s economy is facing an array of considerable difficulties and challenges. The city views implementing comprehensive digital transformation and developing a digital economy as the most important tasks for recovery. He also claimed it would ramp up investment and innovation in digital administration and smart city building.

According to reports, experts have suggested that in terms of digital infrastructure, HCM City should complete general and specialised databases in its smart city project, boost the building of information security mechanisms to encourage enterprises to go digital, and enhance cybersecurity measures. Regarding digital business, they recommended the city survey companies’ demands and devise different programmes supporting firms to innovate, apply technology, and shift to digital business models. Pham Binh An, the Deputy Director of the HCM City Institute for Development Studies, stated that local authorities should improve their capacity to assist digital technology start-ups, facilitate digital business and e-commerce activities, and connect more e-commerce firms with manufacturers.

Earlier this month, the city unveiled its official digital transformation portal. With a modern, simple, and assessable user interface, the portal offers an overview of the city’s related plans, digital progress, news, and cooperation activities. The site also features a multi-media library. The Deputy Director of the Department, Vo Thi Trung Trinh, noted that via the portal, city leaders can receive ideas, suggestions, and plans from local residents, organisations, and businesses.

As OpenGov Asia reported earlier, city officials and civil servants can promptly systematise and adjust the municipal digital transformation documents, programmes, and projects. Meanwhile, experts, the general public, organisations, and enterprises can access and learn information about local transformation. They can search for applications and public services that are being provided on digital platforms, Trinh added. People can also send feedback and recommendations to the authorities through the site, she said.

Ho Chi Minh City has plans to establish at least two technology innovation centres from now through 2025 to help businesses completely digitise operations, according to the municipal people’s committee. They will strengthen supply chains, transfer technologies and innovations, research digital products, increase the awareness of digital transformation, promote an innovation ecosystem for start-ups, and help businesses develop digital products. Moreover, they will tie up with prominent global partners for digitisation and funding to evaluate the effectiveness of digital products and support the creation of digital solutions.


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