September 18, 2024

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Hanoi: Leading Vietnam’s Digital Transformation

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As the capital city of Vietnam and a major administrative hub, Hanoi prioritises digital transformation to improve governance, streamline administrative procedures, and foster better connections with citizens and businesses.

Hanoi’s digital transformation journey is complex, given its status as a sprawling metropolis with over 10 million residents and numerous administrative units. The city is divided into 30 district-level and 579 communal-level units, making digital integration a formidable task.

Ha Minh Hai, Vice Chairman of the municipal People’s Committee, identifies several key challenges in this process. Among these are a shortage of skilled personnel, increasing workloads, and delays in developing specialised databases, particularly in land management.

Despite these difficulties, Hanoi has made remarkable progress in recent years, particularly during the 2022-2023 period. This progress is attributed to the strong resolve of the city’s leadership and the active involvement of the entire political system. The city’s leadership has driven initiatives that accelerated digital transformation and produced positive outcomes.

One of the significant milestones in Hanoi’s digital transformation efforts is the implementation of a “zero fee” policy for online public services. This policy eliminates service fees for digital transactions, making it easier and more cost-effective for residents to access essential services online.

Additionally, Hanoi has fully adopted digital signatures across its unified document management and administration system. This move has led to 100% compliance from the city’s government agencies, streamlining the process of document handling and reducing bureaucratic delays.

Hanoi’s local government service platform (LGSP) has also seen significant enhancements. It has been integrated with seven municipal information systems/databases and 14 national and ministerial information systems/databases. This integration facilitates better data sharing and improves the efficiency of various administrative processes.

The city has also rolled out several information systems and applications to better serve its citizens and businesses. As of June 2024, Hanoi officially launched the digital citizen app iHaNoi, which provides residents with a range of services and information at their fingertips.

The municipal electronic health records system has also been introduced, aiming to improve the management and accessibility of health-related data. Additionally, Hanoi is piloting a transport-ticket-card application designed to streamline public passenger transport.

Another notable initiative is the testing of cashless parking systems. These systems are designed to enhance transparency in fee collection and reduce congestion in downtown areas. By implementing these digital solutions, Hanoi aims to improve the efficiency of urban management and provide a more seamless experience for its residents.

Despite the impressive progress, Hanoi continues to face challenges in its digital transformation journey. The city’s efforts to address these challenges include ongoing investments in technology infrastructure, training programs for staff, and collaborations with technology partners. These measures are intended to address the identified obstacles and further advance Hanoi’s digital capabilities.

OpenGov Asia reported that Prime Minister Pham Minh Chinh tasked Hanoi with leading the national digital transformation by developing a robust digital economy, enhancing online public services and promoting digital literacy.

Key goals include digitising 80% of administrative procedures, implementing electronic health records and advancing cashless payments. Hanoi is also expected to strengthen digital infrastructure and cybersecurity while effectively communicating progress to the public.

The city’s commitment to digital transformation is evident in its proactive approach to adopting new technologies and integrating them into everyday governance. Hanoi’s experience highlights the importance of a comprehensive strategy that includes technological innovation, effective leadership, and stakeholder engagement.

As Hanoi continues to navigate the complexities of digital transformation, its efforts serve as a model for other cities in Vietnam and beyond. The city’s achievements demonstrate that with determination and strategic planning, even the most challenging obstacles can be overcome, paving the way for a more connected and efficient future.

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