As the COVID-19 pandemic continues to dominate the global landscape, there is a pressing need for organisations to re-examine their businesses and priorities in this new normal. No doubt, many are already making changes in the way they run their businesses and the way they make decisions to emerge stronger. Nonetheless, there remains an urgency for the deployment of technologies that help bring greater efficiencies and wider reach in this new digital-first – or digital-only for some – environment.
Artificial Intelligence (AI) and Intelligent Automation (IA) are recognised as key enablers for organisations to repair, rethink and reconfigure to emerge from the pandemic. They allow businesses and governments to adapt their operating models for sustainable competitive advantage as well as make adjustments and fine-tune along the way. And when it comes to customer experience (CX), such technologies have allowed businesses to manage high volumes and sudden spikes in customer requests during times of uncertainty.
Undeniably, the adoption of AI has grown exponentially as a result of the pandemic. In fact, usage of AI-enabled support channels has increased as high as 157% in the Asia Pacific (APAC) since February 2020. Right from the start, AI played a pivotal role in mitigating the effects of the pandemic across sectors. In its most basic usage, it eased the administrative burden by automating processes, prioritising customer queries and intercepting simple and repetitive queries with articles from a help centre.
OpenGov Asia had the opportunity to speak exclusively with Malcolm Koh, Customer Experience Strategist, APAC at Zendesk, a customer service software company with support and sales products designed to improve customer relationships. Malcolm has deep expertise in both operational and strategic elements of customer service delivery with over 20 years of experience spanning 8 industries.
“In 2020, governments and businesses faced exceptional challenges,” notes Malcolm. “Adapting to a world reshaped by COVID-19 has meant significant changes in how they run and interact with their citizens and customers respectively. The massive shift online has accelerated the digitalisation efforts across the private and public sector, casting the spotlight on the importance of great CX.”
The increase in digital adoption has reset the benchmark of customer expectations, in terms of access, ease and turnaround time. Not unsurprisingly, with more platforms and options than ever before, consumers are spoilt for choice in the digital space, and expect more from the businesses they interact with. According to Zendesk, 2 out of 5 customers in APAC say the customer experience is more important to them now than a year ago.
“With this heightened demand for great CX, consumers have adopted new behaviours. They want quick and effective resolutions to their problems – particularly in times of crisis – and are often keen to figure things out themselves first. They also want to reach out to brands through channels they’re already familiar with, such as messaging,” Malcolm adds.
Change alone is not enough
Companies are now looking to integrate these new demands into their overall business, but this is easier said than done. Often bogged down by legacy infrastructure and processes, companies struggle to scale digital solutions quickly enough to meet ever-changing customer needs. Change, then, is not the sole criteria for success. Agility and flexibility are also key ingredients. While those lagging must catch up, everyone must have the ability to adapt quickly to stay ahead of these new challenges and trends, even as they continue to evolve.
Though the introduction of AI to streamline processes and manage spikes in customer queries cannot be built overnight and may not be sufficient in and of itself to satisfy customer service demands, it is necessary to drive greater efficiencies, which ultimately help drive business growth. “Think of AI like a muscle. The more you train it, the stronger and more accurate it will be, “ says Malcolm.
“Being efficient has always existed as a business priority, but what that means to businesses and governments has evolved when it comes to implementation. And AI and automation have been central to that evolution,” he added. For those new to such technologies, starting small helps according to Malcolm. “That way, you can implement small changes and closely measure its effect and progress, which will go a long way to garnering more internal support and influence as change is often a team effort.”
Keeping the human touch with personalisation and empathy
When there’s talk of AI, Malcolm notes that there’s also a common misconception that AI will replace humans. “It is about automating manual, high volume processes where possible to be more productive and redeploying human resources to more complex tasks,” says Malcolm. “While AI has become increasingly sophisticated, the human element and our ability to empathise with the customer is still currently an irreplaceable piece to any successful CX strategy.” In such cases, Malcolm shares that AI-enhanced chatbots “need to know when a customer query is beyond its ability and to facilitate the seamless hand-off to a human agent without requiring the customer to repeat everything again to the agent, which can be incredibly frustrating.”
Moreover, customer engagement today also calls for more personalised experiences. This is where predictive AI technologies come in. Having the trend or history of all interactions people have with a business can be turned into insightful data that allows companies to predict and tailor the customer experience across multiple channels.
Supporting customers on their preferred channels
As a result of the pandemic, Zendesk found that over two-thirds of customers in APAC used a new support channel to get in touch with a business – 70% of which intend to continue using said channel. That is why businesses need to incorporate their services on more channels to address these demands.
Of course, tailor-made omni-channelled services need time, resources and research on how to scale, integrate data and train agents to make the most of the predictive AI approach. But, Malcolm acknowledges, there are a lot of AI tools available that can help in terms of personalising customer experiences and engagement on multiple platforms.
Investing in customer-centric CX reaps long-term benefits
Ultimately, Malcolm believes that businesses “need to be efficient to be agile”. Companies and organisations that are lagging need to move faster by investing in technology and processes that enable them to be customer-centric across the entire organisation.
Whether it involves utilising multiple channels for real-time, personalised customer engagement, implementing better collaboration tools for employees, enhancing efficiency with AI and automation, investing in CX will go a long way to drive sustainable growth in this time of crisis and beyond for companies and businesses in all sectors.
“Businesses need to consider the impact CX has on the bottom line. One in two customers will switch to a competitor after just one bad experience. And when businesses deliver on good CX, three in four are likely to spend more,” says Malcolm.
“AI simply cannot work alone – there’s such a unique interdependence between AI and humans that demands attention. And there’s no one-size-fits-all approach to figuring out the right balance,” Malcolm notes. Businesses need to look at what their customers want and expect from them to inform their decisions. Malcolm firmly believes that this customer centricity is what will help businesses navigate these unchartered waters.
Singapore’s Infocomm Media Development Authority (IMDA) has recently updated its platform known as Chief Technology Officer-as-a-Service (CTO-as-a-Service). The platform enables SMEs to self-assess their digital readiness and needs at any time and from any location, as well as access market-proven and cost-effective digital solutions and engage digital consultants for in-depth advisory and project management services.
This is for any business entity that wants to know how to start going digital, understand what type of solutions to adopt for its specific business challenge, or choose the solution that best meets its needs.
An enterprise can benefit from CTO-as-a-Service through:
- Conduct a self-evaluation of its digital readiness and pinpoint its gaps and needs in terms of digitalisation;
- Study other Small and Medium Sized Enterprises (SMEs) that have carried out digitalisation projects successfully;
- Receive digital solution suggestions based on the business’s needs and profile; and
- Evaluate the features and costs of various digital solutions.
There are more than 450 subsidised digital solutions available for selection, including those that address industry-specific or general business needs, as well as those that serve to streamline operations, increase business sales revenue, or ensure business resiliency.
The business can also work with digital consultants from the designated operators through CTO-as-a-Service, for digital advisory to assist:
- Seek a deeper comprehension of its business priorities and needs;
- Create training plans and digital solutions specifically for its businesses;
- Include fundamental data usage, protection, and cybersecurity risks in the digitalisation process.
The business may also ask digital consultants to assist with project managing the rollout of its digitalisation initiatives.
Eligible businesses can use digital advisory and project management services for free for the first time. Should the businesses want to keep using digital consultants, future usage or service enhancement will be based on commercial agreements.
Any company that satisfies the requirements below is qualified to use free project management and digital advisory services for the first time:
- Licensed and active in Singapore;
- A minimum of 30 per cent local shareholding;
- Enterprise’s group employment size is no more than 200 employees, or the group’s annual sales turnover is no more than S$100 million;
- Has never previously used CTO-as-a-Service digital consultants.
Meanwhile, SMEs are the backbone of Singapore’s economy. They employ two-thirds of the country’s workers and contribute almost half of Singapore’s GDP. Since digital technology is changing every part of Singapore’s economy, SMEs need to take advantage of digital technologies to grow and do well.
The SMEs Go Digital programme, which was started by the IMDA in April 2017, is meant to make going digital easy for SMEs. More than 80,000 SMEs have used the programme’s digital solutions.
Enterprises can also use advanced and integrated solutions to improve their capabilities, strengthen business continuity measures, and build longer-term resilience. Solutions that are supported by government agencies solve common problems at the enterprise level on a large scale, help enterprises adopt new technologies, and make it easier for enterprises to do business within or across sectors.
IMDA works with sector-led agencies and industry players to find advanced and integrated digital solutions that can be supported and are relevant to their sectors. Companies that want to use these solutions can check the IMDA website to find out when they can apply for each one.
Costs for hardware, software, infrastructure, connectivity, cybersecurity, integrations, development, improvement, and project management can be covered by funding support. With this, the agency has kept helping businesses, and the list of solutions that are supported will grow, with an emphasis on AI-enabled and cloud-based solutions.
Taiwan City Science Lab @ Taipei Tech demonstrated a series of cutting-edge AI applications. The lab exhibit advanced AI applications and their research and development results, such as the mobile robot, a AI robotic fish and Campus Rover.
The cross-disciplinary R&D and teaching laboratory aims to be a global technology and talent exchange platform. Massachusetts Institute of Technology (MIT) and Taipei Tech are coming together to jointly established City Science Lab @ Taipei Tech.
“Through developing advanced AI technology and big data system, we plan to make Taiwan the island of high-end technology,” said Yao Leehter, Taipei Tech Chair Professor of the Department of Electrical Engineering.
Yao indicated that Taipei Tech alums highly support the lab. The lab also collaborates with Kent Larson, the leader of MIT City Science Lab, the City Science Lab @ Taipei Tech aims to be an international platform for technology and talent exchange.
Taipei Tech adopts and jointly promotes with MIT to implement the Undergraduate Scientific Research Programme. Known as UROP, the programme provides sufficient resources for students and cultivates a new generation of scientific researchers. The collaboration was initially rolled out in 1969 by MIT’s first President, William Rogers.
For students to learn the most modern and state-of-the-art technology applications, the lab provides advanced equipment for R&D purposes, such as mobile robots. The agile, mobile robot can adapt to complex terrains and is equipped with LIDAR, infrared, and stereo vision sensors, which can draw 3D point cloud maps in real-time and detect and dodge obstacles. The mobile robot is used in decommissioned nuclear power plants, factories, construction sites, and offshore drilling oil platforms. Another mobile robot use case is for patrol, troubleshooting, and leak detection.
In addition, the lab also showcased its R&D results which are the AI robotic fish to the advanced instrumental equipment. The robotic fish is a streamlined robot designed to resemble a real fish. The fish robot comprehends and mimics the motion model of swimming fish through machine learning.
The robot can swim underwater in a simulated way. To perfectly mimic the fish movement, researchers have spent significant time collecting massive movement data from real fish, documenting, and analysing the swimming performance. Afterwards, they utilised AI technology and programme coding to control the motoric movement of the robotic fish.
The team then spent a year adjusting the robotic fish to make the swim movement look like a real fish. Machinery fish propulsion efficiency and excellent swimming performance are considered one of the most critical subjects in bionics.
“The robotic fish is useful for biological research and can also be used to carry out underwater operations and examine water quality,” said Yao.
Recently, the fish robot was involved in movie production. During the designing process, the production house team suggested adding a “cloth” on the fish with fish skin and fish scale to make it more lifelike. The company also came up with the idea to use a magnet to stick the fish scale on the body of the robotic fish. Taiwan Textile Research Institute and the local design research group joined the brainstorming and production process to finish the golden fish’s final look onscreen.
Moreover, The Campus Rover, developed by the team of Professor Yao in cooperation with the Taipei Tech Department of Industrial Design, demonstrated practical AI applications in real life. For example, campus or express hospital service can use the self-charging robot to ensure delivery safety.
In a process that could be compared to travelling through a wormhole, researchers from the Massachusetts Institute of Technology, California Institute of Technology, Harvard University, and other institutions sent quantum information across a quantum system. The Sycamore quantum processor device was used in this experiment, which pave the way for more quantum computer research into gravitational physics and string theory in the future.
Calculations from the experiment showed that qubits moved from one system of entangled particles to another in a model of gravity, even though this experiment didn’t produce a disruption of physical space and time in the sense that might understand the term “wormhole” from science fiction.
A wormhole connects two far-off regions of spacetime. Nothing is allowed to travel through the wormhole in the general theory of relativity. But in 2019, some scientists hypothesised that an entangled black hole-created wormhole might be passable.
By introducing a direct interaction between the distant spacetime regions and using a straightforward quantum dynamical system of fermions, physicists have discovered a quantum mechanism to make wormholes traversable. This type of “wormhole teleportation” was also created by researchers using entangled quantum systems, and the outcomes were confirmed using classical computers.
In this experiment, researchers used the Sycamore 53-qubit quantum processor to teleport a quantum state from one quantum system to another to send a signal “through the wormhole.” The research team had to find entangled quantum systems that behaved as predicted by quantum gravity while also being small enough to run on current-generation quantum computers.
Finding a simple enough many-body quantum system that maintains gravitational properties was a key challenge for this work. The team gradually reduced the connectivity of highly interacting quantum systems using machine learning (ML) techniques to accomplish this. Each example of a system with behaviour that is consistent with quantum gravity that emerged from this learning process only needed about 10 qubits, making it the ideal size for the Sycamore processor.
It was crucial to find such tiny examples because larger systems with hundreds of qubits would not have been able to function on the quantum platforms currently in use. The team observed the same information on the other 10-qubit quantum system on the processor after inserting a qubit into one system and sending an energy shockwave across the processor after doing so.
Depending on whether a positive or negative shockwave was applied, the team measured how much quantum information was transferred between two quantum systems. The researchers demonstrated that a causal path between the two quantum systems can be established if the wormhole is kept open for enough time by the negative energy shockwaves. It is true that the qubit that was inserted into one system also appears in the other.
The team then used conventional computer calculations to confirm these and other properties. Running a simulation on a traditional computer is not like this. A conventional simulation, which involves the manipulation of classical bits, zeros, and ones, cannot create a physical system, even though it is possible to simulate the system on a classical computer and this was done as described in this paper.
Future quantum gravity experiments could be conducted using more advanced entangled systems and larger quantum computers because of this new research. This research does not replace direct observations of quantum gravity, such as those obtained through the Laser Interferometer Gravitational-wave Observatory’s detection of gravitational waves.
Dr Andrew Lensen from the School of Engineering and Computer Science and Dr Marcin Betkier from the Law School are eager to ensure AI has a significant role in the justice system. The researchers based in New Zealand built an Artificial Intelligence (AI) algorithm that predicts the length of court sentences.
But the question that may arise is whether the AI algorithm is fair enough to hand down the sentences. In the current justice system, society trusts judges to hand down fair sentences to the accused based on their knowledge and experience.
But how about AI? Can it judge better because it can eliminate the potential for bias and discrimination? And can AI substitute the judge’s knowledge and experience with its ability to analyse and predict large amounts of data?
Dr Andrew is optimistic that AI can help better sentencing performance in the court. The confidence comes from the use of AI to predict some criminal behaviour, such as financial fraud. Even though he has not tested the algorithm model in the courtroom to deliver sentences, he is confident in his idea that AI can have a role in the sentencing process.
Dr Andrew says when judges handle a case in the court, they have some “inconsistency” when passing a sentence for a convicted criminal. The inconsistency comes from a judge’s consideration of individual circumstances, societal norms and the sense of justice.
The moral decision and the sense of humanity are based on their experience and even sometimes change the law. Each judge uses their prudence in deciding the outcome of a case. Another “undesirable inconsistency” occurs as bias or even extraneous factors like hunger. Research in Israeli courts has shown that the percentage of favourable decisions drops to nearly zero before lunch.
Judges must ensure similar offences should receive similar penalties in different courts with different judges. Usually, to enhance sentence consistency, the justice system has prepared guidelines as a reference. This inconsistency area is the pain point where AI can help.
How AI Helps Judges
Most modern AI is machine learning, a machine learning algorithm that could learn the patterns in a database to predict patterns and outcomes. Therefore, AI can provide better sentence suggestions after the computer algorithm learns the patterns within a set of data.
Dr Andrew’s machine learning algorithm trained with 302 New Zealand assault cases. The sentences in those cases are between 0 and 14.5 years of imprisonment. The model quantifies sentences based on certain phrases and terms when calculating the sentence. Then the algorithm built a model that can predict the length of a sentence for a new case and explain why it made certain predictions.
The relatively simple model worked quite well within the average error of the model in under 12 months. The model associates the words or phrases such as “sexual”, “young person”, “taxi” and “firearm” with longer sentences. While shorter sentences were given to cases with words like “professional”, “career”, “fire” and “Facebook”.
Beyond Decision Making
In the future, AI could be used as an evaluation tool for judges. They could understand better their sentencing decisions and perhaps remove extraneous factors. The models also have the potential to be used by lawyers, providers of legal technology and researchers, to analyse the sentencing and justice system. Moreover, AI also can be used for controversial sentences and help create some transparency around controversial decisions.
Of course, the use of AI in the justice system may still be controversial. Most people are still keen that the final assessments and decisions on justice and punishment should be made by human experts. But maybe it is the right time need to give an opportunity to an “algorithm” or “AI” in the judicial system for the common good.
New Zealand is not the only country that explores the use of Artificial Intelligence (AI) in courtrooms. Several other countries like China and Malaysia have done similar things. In China, robot judges can decide on a small case. While in Malaysia, some courts have used AI to recommend sentences for offences such as drug possession.
The Counter Ransomware Task Force (CRTF), which was formed to bring together Singapore Government agencies from various domains to strengthen Singapore’s counter-ransomware efforts, has issued its report.
Singapore’s efforts to promote a resilient and secure cyber environment, both domestically and internationally, to combat the rising ransomware threat are guided by the recommendations in the CRTF report.
According to David Koh, Commissioner of Cybersecurity, Chief Executive of CSA and Chairman of the CRTF, ransomware poses a threat to both businesses and individuals. Economically, socially, and even in terms of national security, it can be detrimental. Both internationally and across domains, ransomware is a problem.
“It requires us to collaborate and draw on our knowledge in a variety of fields, including cybersecurity, law enforcement, and financial supervision. It also necessitates that we work with like-minded international partners to identify a common problem and develop solutions,” David explains.
He exhorts businesses and individuals to contribute as well, strengthening the nation’s overall defence against the ransomware scourge.
Cybercriminals use malicious software known as ransomware. When ransomware infects a computer or network, it either locks the system or encrypts the data on it. For the release of the data, cybercriminals demand ransom money from their victims.
A vigilant eye and security software are advised to prevent ransomware infection. Following an infection, malware victims have three options: either they can pay the ransom, attempt to remove the malware, or restart the device.
Extortion Trojans frequently employ the Remote Desktop Protocol, phishing emails, and software vulnerabilities as their attack vectors. Therefore, a ransomware attack can target both people and businesses.
The ransomware threat has significantly increased in scope and effect, and it is now a pressing issue for nations all over the world, including Singapore.
The fact that attackers operate internationally to elude justice makes it a global issue. Ransomware has created a criminal ecosystem that offers criminal services ranging from unauthorised access to targeted networks to money laundering services, all fed by illicit financial gains.
Singapore must approach the ransomware issue as a cross-border and cross-domain problem if it is to effectively combat the ransomware threat.
Other nations should adopt comparable domestic measures to coordinate their financial regulatory, law enforcement, and cybersecurity agencies to combat the ransomware issue and promote international cooperation.
Three significant results were the culmination of the CRTF’s work. For government agencies to collaborate and create anti-ransomware solutions, they first developed a comprehensive understanding of the ransomware kill chain.
Second, it examined Singapore’s stance on paying ransom to cybercriminals. Third, for the government to effectively combat ransomware, the CRTF suggested the following policies, operational plans, and capabilities under four main headings:
Pillar 1: Enhances the security of potential targets (such as government institutions, critical infrastructure, and commercial organisations, especially small and medium-sized businesses) to make it more difficult for ransomware attackers to carry out successful attacks.
Pillar 2: To lower the reward for ransomware attacks, disrupt the ransomware business model.
Pillar 3: To prevent ransomware attack victims from feeling pressured to pay the ransom, which feeds the ransomware industry, support recovery.
Pillar 4: Assemble a coordinated international strategy to combat ransomware by cooperating with international partners. Singapore should concentrate on and support efforts to promote international cooperation in three areas that have been identified by the CRTF: law enforcement, anti-money laundering measures, and discouraging ransom payments.
The appropriate government agencies will take the recommendations of the CRTF under consideration for additional research and action.
An international team led by The Chinese University of Hong Kong (CUHK)’s Faculty of Medicine (CU Medicine) has successfully developed the world’s first artificial intelligence (AI) model that can detect Alzheimer’s disease solely through fundus photographs or images of the retina. The model is more than 80% accurate after validation.
Fundus photography is widely accessible, non-invasive and cost-effective. This means that the AI model incorporated with fundus photography is expected to become an important tool for screening people at high risk of Alzheimer’s disease in the community. Details have been published in The Lancet Digital Health under the international journal The Lancet.
Limitations of Alzheimer’s disease current detection methods
In Hong Kong, 1 in 10 people aged 70 or above suffers from dementia, with more than half of those cases attributed to Alzheimer’s disease. This disease is associated with an excessive accumulation of abnormal amyloid plaque and neurofibrillary tangles in the brain, leading to the death of brain cells and resulting in progressive cognitive decline.
The Clinical Professional Consultant of the Division of Neurology in CU Medicine’s Department of Medicine and Therapeutics stated that memory complaints are common among middle-aged and elderly people, and are often considered a sign of Alzheimer’s disease.
It is sometimes difficult to make an accurate diagnosis of Alzheimer’s disease based on cognitive tests and structural brain imaging. However, methods to detect Alzheimer’s pathology, such as an amyloid-PET scan or testing of cerebrospinal fluid collected via lumber puncture, are invasive and less accessible.
To address the current clinical gap, CU Medicine has led several medical centres and institutions from Singapore, the United Kingdom and the United States to successfully develop an AI model using state-of-the-art technologies which can detect Alzheimer’s disease using fundus photographs alone.
Studying disorders of the central nervous system via the retina
The S.H. Ho Professor of Ophthalmology and Visual Sciences and Chairman of CU Medicine’s Department of Ophthalmology and Visual Sciences explained that the retina is an extension of the brain in terms of embryology, anatomy and physiology. In the entire central nervous system, only the blood vessels and nerves in the retina allow direct visualisation and analysis.
Thus, it is widely considered a window through which disorders in the central nervous system can be studied. Through non-invasive fundus photography, a range of changes in the blood vessels and nerves of the retina that are associated with Alzheimer’s disease can be detected.
The team developed and validated their AI model using nearly 13,000 fundus photographs from 648 Alzheimer’s disease patients (including patients from the Prince of Wales Hospital) and 3,240 cognitively normal subjects. Upon validation, the model showed 84% accuracy, 93% sensitivity and 82% specificity in detecting Alzheimer’s disease. In the multi-ethnic, multi-country datasets, the AI model achieved accuracies ranging from 80% to 92%.
Accessibility, non-invasiveness and high cost-effectiveness of the AI model using fundus photography help the detection of Alzheimer’s cases both in the clinic and the community
A Professor of Medicine and Director of the Therese Pei Fong Chow Research Centre for Prevention of Dementia at CU Medicine stated that in addition to its accessibility and non-invasiveness, the accuracy of the new AI model is comparable to imaging tests such as magnetic resonance imaging (MRI).
It shows the potential to become not only a diagnostic test in clinics but also a screening tool for Alzheimer’s disease in community settings. Looking ahead, the team aims to validate its efficacy in identifying high-risk cases of the disease hidden in the community, so that various preventive treatments such as anti-amyloid drugs can be initiated early to slow down cognitive decline and brain damage.
The Associate Professor in the Department of Ophthalmology and Visual Sciences at CU Medicine said that in addition to applying novel AI technologies in the model, the team also tested it in different scenarios. Notably, their AI model retained a robust ability to differentiate between subjects with and without Alzheimer’s disease, even in the presence of concomitant eye diseases like macular degeneration and glaucoma which are common in city-dwellers and the older population.
Their results further support the hypothesis that the team’s AI analysis of fundus photographs is an excellent tool for the detection of memory-depriving Alzheimer’s disease. To move this research towards clinical application, the team is developing an integrated, AI-based platform to combine information from both blood vessels and nerves of the retina captured by fundus photography and optical coherence tomography for the detection of Alzheimer’s disease. Their findings should provide more evidence to move AI from code to the real world.
The Ministry of Information and Communications (MIC) announced it would roll out Internet advertising management measures at a conference in Hanoi earlier this week. Participants at the event discussed how advertising in cyberspace has become the norm. Domestic and foreign firms choose it because it is easier to access customers and it offers flexible costs and larger reach. However, the limited management of ads poses potential risks to the safety of brands, the Ministry has said.
According to a press release by MIC, ad agents affirmed that without the cooperation of cross-border platforms in modifying algorithms to filter and censor content, ad violations will remain rampant. The Ministry will penalise agents and brands that cooperate with platforms that do not fall in line with MIC regulations. On the other hand, the Ministry will support ads on domestic and foreign digital platforms that comply with domestic laws, MIC’s Deputy Minister, Nguyen Thanh Lam, noted. This will protect brands and build a healthy, safe, and fair ad business environment.
The Ministry will also increase inspection and clampdown on violations of Internet ads activities, he said. Cross-border ad firms that fail to comply with Vietnam’s laws will not be allowed to operate in the country. MIC has also generated a Whitelist consisting of licensed e-newspapers, magazines, general information websites, and social media. Other websites, registered accounts, and information channels are also in the pipeline for the list, the release said. The list will be publicised on the portals of the Ministry and Authority of Broadcasting and Electronic Information. Ad service providers, agents, and brands were also urged to use the list for their work.
Nearly 80% of the population in Vietnam are digital consumers, as OpenGov Asia reported earlier in October. Over the past year, the average contribution of e-commerce to total retail has continued to grow at 15%. Higher than growth in India (10%) and China (4%), with an online-to-total retail share of 6%. Now that the world is in the post-pandemic stage, regional consumers are prioritising an integrated shopping experience, combining online and in-person services. During the ‘discovery’ phase of their shopping, 84% of Vietnamese shoppers use the Internet to browse and find items. This is a period when they use more platforms than ever before, with the dominance of the e-commerce market accounting for 51% of online spending.
At the same time, social networking sites account for nearly half of online discoveries, including images (16%), social media videos (22%), and related tools such as messaging (9%). These tools were paramount channels for 44% of survey respondents. Consumers’ openness to interaction and experimentation has also led to behavioural changes, with 64% of respondents saying they have interacted with a business account in the past year. As customers seek more engagement, the content creation economy is able to grow exponentially.
In the context of digital consumption, Vietnamese users switch brands more often and increase the number of platforms they use to find a better value, with 22% of online orders made on various e-commerce platforms. The number of online platforms Vietnamese consumers use has doubled from 8 in 2021 to 16 in 2022. Therefore, it is important to put in place proper ad regulations as Internet usage grows.