September 8, 2024

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Vietnam’s Ambitious Goals for Digital Transformation

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Prime Minister Pham Minh Chinh has called for intensified efforts and resolve to accelerate digital transformation, which is vital for national development. He made this appeal while chairing a government hybrid conference with leaders from various ministries, sectors, and centrally-run cities and provinces on July 19.

Image credits: Vietnam Plus

As Chairman of the National Committee on Digital Transformation, he outlined five key areas of focus: developing digital human resources, citizens, skills, and talent; prioritising resources for the digital economy and government; expanding digital infrastructure comprehensively and efficiently; digitalising and integrating artificial intelligence in management; and enhancing mechanisms, policies, and institutions for digital transformation with an emphasis on decentralisation.

He urged officials, particularly those in leadership roles, to pioneer digital transformation initiatives. This includes accelerating the development of institutional frameworks to support digital transformation in line with international standards, promoting the digital economy, society, and citizenship, and strengthening cybersecurity, information safety, and national cyber sovereignty. Furthermore, he emphasised the importance of cultivating a digital culture that aligns with Vietnamese cultural identity amidst international integration.

PM Chinh underscored the need for effective digital transformation across all ministries and localities to benefit people and businesses. Resources should be allocated to develop digital infrastructure, platforms, and human resources. He mandated that essential public services go online for easier access and cost savings, and stressed supporting emerging economic sectors while balancing the interests of the state, citizens, and businesses for sustainable growth.

He directed all ministers, sector heads, and city and provincial chairpersons to handle their work digitally and use e-signatures by the end of this year, with lower-level officials and staff to follow by June 2025.

During the conference, participants evaluated the current state of digital transformation and proposed solutions to accelerate progress. Key areas of discussion included building and connecting databases, applying technological platforms in administrative management, and developing digital infrastructure.

Vietnam has made significant strides in digital government, with 43 out of 53 essential public services available online. In 2022, the country exported $117.3 billion worth of digital products and earned $13 billion from software and IT services. Major tech companies have invested in Vietnam, with others like Nvidia and Apple planning to invest, particularly in electronics, semiconductors, and AI research and development.

E-commerce revenue increased to $20.5 billion in 2023, up from $13.7 billion in 2021. Cashless payments have become widespread, with 87% of adults having bank accounts, exceeding the 80% target set for 2025. Essential databases for population, tax, insurance, business, and education training are now operating stably, contributing to the nation’s digital transformation efforts.

Vietnam and Thailand have been identified as the fastest-growing e-commerce markets in Southeast Asia, according to a recent report. Vietnam has surpassed the Philippines to become the region’s third-largest e-commerce market.

In 2023, the top eight e-commerce platforms in Southeast Asia reached a GMV of $114.6 billion, a 15% increase from the previous year. Vietnam and Thailand led this growth with GMVs rising by 52.9% and 34.1%, respectively. Vietnam, with annual growth rates of 16-30%, is focusing on cross-border e-commerce as a key economic driver.

Vietnamese businesses have significantly increased their international reach, with many small and medium-sized enterprises achieving substantial annual revenues. The Vietnamese government is actively promoting digital transformation and sustainable e-commerce development, supported by the Ministry of Industry and Trade and the E-Commerce and Digital Economy Agency.

Prime Minister Pham Minh Chinh has issued directives to enhance state management in e-commerce and digital business, emphasising legal framework improvements, simplified customs procedures, and better technological solutions. These efforts aim to ensure sustainable growth in Vietnam’s digital economy and improve global market access for Vietnamese businesses.

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