September 17, 2024

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Vietnam’s Digital Future: Two-Pillar Strategy for Transformation

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Vietnam’s Prime Minister Pham Minh Chinh, who chairs the National Committee for Digital Transformation, has underscored the need for a comprehensive digital transformation strategy in Vietnam, emphasising two foundational pillars: enhancing internal administrative procedures and improving public services for citizens and businesses. In a national conference held on August 31, 2024, connecting central ministries, agencies, and 63 cities and provinces, PM Chinh articulated his vision for the future of Vietnam’s digital landscape.

Image credits: Vietnam Plus

The Prime Minister highlighted the importance of legalisation, digitisation, and automation as pivotal breakthroughs in the digital transformation journey.

He outlined the goal of achieving the “four nos”: no paperwork, no cash transactions, no contact unless legally necessary, and ensuring no one is left behind. These objectives are part of a broader strategy to streamline administrative processes and elevate the efficiency of public services.

PM Chinh stressed the need for enhanced decentralisation and delegation of authority, coupled with effective resource allocation. He emphasised that improving execution capacity, clearly defining responsibilities for individuals and sectors, and strengthening monitoring and inspection are crucial. To support these efforts, the Prime Minister called for increased transparency, simplified administrative procedures, and better integration and sharing of data.

Another key aspect of PM Chinh’s strategy is the investment in digital infrastructure and the promotion of dialogue to address emerging challenges. He highlighted the importance of enforcing discipline and eliminating negative practices that could hinder progress. The development of digital knowledge and skills is also a priority, with a focus on cultivating a digital workforce capable of navigating new challenges in the evolving tech landscape.

A major component of PM Chinh’s plan involves shifting from a “passive” to a “proactive” approach in how public services are delivered. By leveraging data effectively, the government aims to enhance the quality of services provided to citizens. The Prime Minister has set a target for 2025, requiring all administrative procedures to be fully digitised and at least 80% of these procedures to be processed online. This goal aligns with Project 06, which envisions the digital provision of 53 essential public services.

PM Chinh also emphasised the need to improve Public Administrative Service Centres and one-stop-shop units, transforming them into digital hubs that offer seamless, boundary-free services to both citizens and businesses. This transformation is particularly aimed at supporting vulnerable groups and ensuring equitable access to public services.

Vietnam has made notable progress in its digital transformation journey. Currently, 82.2% of households use broadband fibre-optic internet, and 84% of mobile phone subscribers own smartphones. The VNeID electronic identification system has 55.25 million active accounts, covering nearly 73% of the population. Public satisfaction with the resolution of administrative procedures has increased from 90% in 2022 to 93% as of August 2024.

In terms of international rankings, Vietnam’s online public services have improved, now ranking 76th out of 193 countries, a rise of five places since 2020. Open data has also seen progress, moving to 87th place, up 10 positions from 2020. Since 2021, Vietnam has streamlined nearly 3,000 business regulations, decentralised around 700 administrative procedures to local authorities, and expanded online public services to 4,400, representing 70% of all procedures available on the National Public Service Portal.

These advancements reflect Vietnam’s commitment to building a more efficient, transparent, and citizen-centric government, with continued efforts to enhance digital infrastructure and service delivery.

Vietnam’s comprehensive approach to digital transformation aims to build a more efficient, transparent, and citizen-centric government, setting the stage for continued advancements in the nation’s digital economy and public service delivery.

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