Vietnam Announces Digital Transformation Index Rankings 2021

The central city of Da Nang and the Ministry of Finance have topped the 2021 Digital Transformation Index (DTI) rankings in the cities/ provinces and ministry categories, respectively. The Ministry of Information and Telecommunications (MIC) presented the Index at the third meeting of the National Committee on Digital Transformation, earlier this week.

Da Nang city topped the ranking for cities and provinces, scoring 0.6419 points, 0.1545 higher than the 2020 ranking released last year. Thua Thien-Hue came in second place (0.5872 points) and Ho Chi Minh City climbed two spots to rank third. The top ten also included Bac Ninh, Lang Son, Ninh Binh, Quang Ninh, Thai Nguyen, Binh Phuoc, and Bac Giang.

The Ministry of Finance led the rankings of 17 ministries and ministry-level agencies providing public services, gaining 0.6321 points, 0.13 higher than the previous ranking. It was followed by the Ministry of Planning and Investment and Vietnam Social Security. Also in the top ten were the State Bank of Vietnam (SBV), the Ministry of Trade and Industry, the Ministry of Information and Telecommunications, the Environment and Natural Resources, the Ministry of Culture, Sports and Tourism, the Ministry of Transport, and the Ministry of Home Affairs.

The Vietnam Academy of Science and Technology jumped two spots to rank first among nine ministries and ministry-level agencies that do not offer public services with 0.4736 points. It was followed by Vietnam Television (VTV) and Vietnam News Agency (VNA). VNA led in two indicators on cybersecurity and digital transformation.

The MIC Deputy Minister stated that 2021 was the second year Vietnam had implemented the national programme on digital transformation despite the adverse resurgence of COVID-19. In this context, Vietnam has pioneered the application of various digital apps and platforms, attracting millions of users. He urged ministries and localities nationwide to continue the acceleration of digital transformation.

In February, Da Nang became the second city in Southeast Asia to deploy chatbot tech in tourism. To increase the variety of tourist self-service tools and information channels, the municipal Tourism Department had coordinated with a private artificial intelligence (AI) developer to create and pilot Chatbot Danang Fantasticity, the first automatic tourism information search and support channel via text message conversation in Vietnam.

As OpenGov Asia reported, during its six-month trial, the chatbot was updated with relevant information about famous destinations, events, weather, ATM locations, and hotlines, among others. According to the Da Nang Tourism Promotion Centre, Event Countdown is one of Danang FantastiCity Chatbot’s notable features. The function helps tourists avoid missing out on any ongoing or future events in the city and can even plan routes to the destinations.

By registering with an email or phone number, tourists can receive e-coupon bar codes with price promotions. A wide range of attraction sites, tourist activities, and entertainment outlets around the city offer e-coupons via the chatbot. The technology can also communicate with international tourists as it offers English for all its information categories. The chatbot will be available in Chinese, Korean, and Japanese.

Further, as part of its digital transformation journey, in April, traders at wet markets in Da Nang went cashless using the e-wallet mobile application Viettel Money, under a 4.0 wet market model. Owners of over 1,000 stalls at Da Nang’s three major wet markets, namely Con, Han, and Dong Da, used QR codes that allowed customers to make online payments through access to select banks and Viettel Money.

New Zealand Starts Construction on SouthPAN Uplink Centre

Land Information Minister, Damien O’Connor, has announced the start of construction on New Zealand’s first uplink centre for the Southern Positioning Augmentation Network (SouthPAN) at a recent event in Southland. The move will bring the country closer to world-class satellite positioning services that can enhance search and rescue operations, improve precision farming, and increase safety on construction sites by providing greater accuracy.

According to O’Connor, it will be the first time Satellite Augmented Positioning has been available in the Southern Hemisphere and is expected to benefit the economy by over $860 million in the long term. SouthPAN will boost the accuracy, reliability, and availability of positioning services to as little as 10 centimetres (like GPS). This represents a considerable improvement from the current accuracy range of five to ten metres.

SouthPAN is an open-access digital infrastructure that offers entrepreneurs the chance to develop new services and accelerate economic growth. It provides free access to early Open Services, which allow farmers and growers to leverage invisible fences and drone-based spraying techniques for the effective management of their livestock and crops.

The Minister explained that in five years, SouthPAN will allow helicopters and planes to fly safely in weather they are not able to fly in now, minimising disruption due to adverse weather conditions. Furthermore, SouthPAN’s technology will also provide virtual barriers that enhance safety in various industries, such as construction, protecting people from heavy machinery and other potential hazards.

The benefits of SouthPAN’s technology are expected to be widespread, ranging from simple conveniences like providing an accurate location for taxi services to more significant applications, such as improved monitoring of endangered species across conservation areas. The increased precision and reliability of SouthPAN’s services will open new possibilities for a wide range of industries, allowing for better decision-making and more effective operations.

Two 11-metre antennae are being built by a private project contractor at a satellite ground station in Awarua. They will link to a control centre in Invercargill, monitored by operators 24 hours a day.

The country’s future export growth relies on lifting its sustainability credentials, and SouthPAN will help farmers and growers with precision through the application of inputs and improved livestock management, O’Connor noted. “By telling us exactly where we are, SouthPAN will help us tell a story of who we are and how we farm.” SouthPAN is a joint venture with the Australian government to bring high-resolution positioning to Australasia.

The move to launch SouthPAN was announced in September last year. Australia’s Minister for Resources, Madeleine King, had explained that the investment is a major commitment between the Australian and New Zealand governments, providing broad benefits for all of Australasia. “We’ve already demonstrated that industry and the community can use this for ground-breaking applications that increase safety, improve productivity, and drive innovation across a broad range of industries,” King stated.

As OpenGov Asia reported, SouthPAN could generate over AUD$6 billion in benefits to the Australian economy over the next 30 years. The network will enable mining companies to install more accurate collision avoidance systems on automated mining haul trucks or allow visually impaired citizens to navigate cities with pinpoint assistive technologies. Further, it will enable light aircraft to land more safely in remote rural areas in all weather conditions, bringing benefits for essential services such as the Royal Flying Doctor Service and the communities they serve.

Spotlighting Southeast Asia’s Electronics Supply Chain

The Malaysia Ministry of International Trade & Industry (MITI), Malaysian Investment Development Authority (MIDA) and InvestPenang are eager to promote electronics manufacturing in the country. They are partnering to organise a global event for electronics manufacturing and supply chain.

The concentration of much of the world’s semiconductor manufacturing capabilities in Southeast Asia has attracted more global players to the region, as global electronics supply chains are being reshaped by geopolitical forces. According to Linda Tan, the President of the global industry association representing the electronics manufacturing and design supply chain, the timing is ideal for the region to strengthen its position as a vital hub for electronics manufacturing and deepen its integration with global value chains.

The Chief Executive Officer of the Malaysian Investment Development Authority stated that Malaysia has immense potential to expand its robust semiconductor ecosystem and benefit from global demand as the region’s semiconductor hub.

The manufacturing sector, which continues to contribute significantly to the country’s economy, has attracted a steady inflow of high-quality investments, making Malaysia a top investment destination in the region. In 2022, the sector registered a total of RM 84.3 billion (US$ 19.1 billion), accounting for 31.9% of total approved investments in various economic sectors.

The electrical and electronics (E&E) industry emerged as the top-performing industry within the manufacturing sector, receiving a total of approved investments of RM 29.3 billion (US$ 6.6 billion). This achievement highlights Malaysia’s commitment to maintaining its strong position as a vital player in the global semiconductor industry.

The theme of the event is “Boosting Agility and Resiliency for the Electronics Supply Chain” and will address the challenges posed by the current economic downturn and ongoing disruptions, and explore ways to build a more robust supply chain.

Global leaders in the industry will gather to examine strategies for the electronics industry to strengthen its supply chain and enhance its agility and resiliency. Industry leaders explore ways to capitalise on Southeast Asia’s strengths, boost global supply chain resilience, and position the industry for future growth and innovation. There will be vital discussions on crucial areas of semiconductor industry growth such as sustainability, smart manufacturing, smart mobility, smart MedTech, and workforce development.

The Chief Minister of Penang stated that the upcoming event aligns with Penang’s longstanding efforts to enhance its competitiveness in the global arena. Penang has established a significant presence in the semiconductor industry and is recognised for its expertise across the value chain.

InvestPenang, the state’s investment promotion agency, is committed to supporting the growth of emerging subsectors and expanding the semiconductor industry’s scope in Penang. Through these efforts, the state aims to strengthen its semiconductor ecosystem and offer a diverse portfolio of capabilities.

According to market research, the global semiconductor market had a size of US$ 527.88 billion in 2021 and is expected to grow from US$ 573.44 billion in 2022 to USD 1,380.79 billion in 2029, with a CAGR of 12.2% during the forecast period.

The global semiconductor market saw a growth of 6.8% in 2020 compared to the previous year. Despite the unprecedented and significant impact of the global COVID-19 pandemic, the semiconductor industry experienced positive demand worldwide, surpassing pre-pandemic levels.

The growth of the semiconductor market can be attributed to the increasing consumption of consumer electronics devices worldwide. Furthermore, the emergence of artificial intelligence (AI), the Internet of Things (IoT), and machine learning (ML) technologies are providing new opportunities for market development as these technologies aid memory chips in processing large amounts of data in less time. Additionally, the rising demand for faster and more advanced memory chips in industrial applications is expected to drive market growth during the forecast period.

Coordinated Push for Digitalisation in Indonesia

The Coordinating Minister for Maritime Affairs and Investment shared strategic goals and progress towards digitalisation in each sector in the Indonesia Maju cabinet. In his speech at the SPBE Summit 2023 for the Electronic-Based Government System, Luhut Binsar Pandjaitan, emphasised that all parties involved in digitisation must work together.

The action was taken to speed up the digitalisation process in Indonesia within the context of achieving digital sovereignty. Using the PeduliLindungi app during the Covid-19 outbreak was cited as an example of Indonesia’s successful large-scale digitalisation.

“We contribute greatly to the digitalisation process. Digitisation has increased our taxable income. There are a lot of bright young folks working on outstanding app creation now. I’d want us to work on this together,” Luhut stated when he visited the event in Jakarta. “I believe what’s here is good. It’s just how we connect it to save unnecessary funds.”

When Deputy VII Arif Mustofa spoke on behalf of Coordinating Minister for Political, Legal, and Security Affairs (Polhukam) Mahfud MD, he noted that his party was coordinating the digitalisation of services in the Polhukam sector, including everything from the management of the most recent cases to population services.

Mahfud explained that the Coordinating Ministry for Political, Legal, and Security Affairs is in charge of technical coordination for five different digital services, including the management of integrated crime cases using IT, online SIM issuance services, government information services and SPBE infrastructure services, state apparatus infrastructure services, regional government services, and population data.

Meanwhile, Expert Staff for Bureaucratic Transformation Aris Darmansyah Edisaputra spoke on behalf of Coordinating Minister for Human Development and Culture (PMK) Muhajir Effendy to say that the ministry’s efforts to speed up the PMK sector, mainly through digitalisation, continue unabated.

Presidential Regulation 132 of 2022 indicated that the acceleration of achievements in education, health, and social welfare also follows the national SPBE architectural strategic initiative. Since these three areas contribute to human and cultural development, Muhadjir argues they require substantial SPBE support in integrated digital services for each area.

Then, as Expert Staff for Digital Transformation Creativity and HR Edwin Rizal Manansang highlighted for Coordinating Minister for the Economy Airlangga Hartarto, digitisation in the economic sector has been running, notably for electronic payments.

In the business world, digital services are centred on a few key goals. The first involves improving the efficiency of a payment gateway or integrated payment system that links together different types of government digital services, such as immigration services, that are projected to be completely functional at airport checkpoints by the end of the first quarter of this year. According to Airlangga, this service will be integrated into the non-tax state revenue (PNBP) business process to improve the state’s revenue reporting system.

Indonesia’s digitalisation initiatives have steadily improved. Evidence of this may be seen in the rising levels of contentment with official online services. To give one concrete example, the National Public Service Complaint Management System – Services People’s Online Aspirations and Complaints (SP4N-LAPOR!) has a customer satisfaction rate of 73.7%. A total of 1,123 people participated in the study, which was conducted in 2022.

Data from throughout the country shows that AP4N-LAPOR! complaints typically receive a response within 6.1 days. Regarding following up on complaints, the city government of Surabaya is among the quickest in Indonesia, taking only 0.6 business days or around 2 hours. In 2022, the provincial government of East Java handled 6,160 reports and followed up on 97% of them. In addition, the SP4N-LAPOR Administration has issued a Decree to all East Javan provinces and municipalities, and 90% (35 out of 39) of districts/cities have some action plan.

Vietnam Protecting Online Consumer Rights

The Ministry of Industry and Trade has been focusing on protecting consumer rights online amid the boom of e-commerce and the digital economy since the COVID-19 pandemic. The Ministry launched Consumer Rights Day on World Consumer Rights Day, which is marked every year on 15 March.

The Ministry has stressed the importance of consumer protection in building a healthy environment and promoting socioeconomic development. This year’s event highlighted information transparency and safe consumption.

Despite the implementation of the Law on Consumer Rights Protection on 1 July 2011, there has been a persistent prevalence of consumer rights violations across multiple levels, with a growing level of complexity. Entering the post-COVID-19 period, e-commerce, especially borderless trade, has made consumer rights protection a new focus as there were several risks consumers face online. These risks include the sale of counterfeit and substandard products, as well as the misuse of personal information for fraudulent purposes.

The Vietnam Competition and Consumer Authority is preparing to revise the Law on Protection of Consumer Rights to ensure that the legislation stays up-to-date with the evolving landscape. The proposed amendments to the law are expected to be presented for approval at the National Assembly’s meeting in May.

Tran Huu Linh, General Director of the Vietnam Directorate of Market Surveillance, noted that apart from the online shopping trend, there has been an increase in trade fraud and risks to consumers, including fake and poor-quality products. According to statistics from the Ministry, over 1,660 online kiosks offering more than 6,400 products were taken down, and five e-commerce websites accused of selling counterfeit and/or uncertified products were blocked last year.

Linh emphasised that safeguarding consumer rights in the online realm was a priority for the market watch, particularly considering Vietnam’s ambition to become a frontrunner in digital economy development within the region. The government has set a goal for the digital economy to contribute 20% to the country’s GDP by 2025.

Owners of many online stores are prioritising consumer protection as one of their key business strategies. The official urged consumers to make orders from licensed platforms or official stores to ensure their rights are protected. The Deputy Director of the Vietnam Competition and Consumer Authority, Nguyen Quynh Anh, explained that consumer protection needs to have stronger and more substantive changes, which requires the active participation of businesses.

“We used to think that consumer protection was the matter of the State management agency and the consumers. Now, enterprises will be a more important subject in the consumer protection process,” Anh said. It is crucial for enterprises to recognise their responsibility in safeguarding consumer rights and ensuring that consumers have access to reasonably priced and safe products and services.

In 2020, Vietnam approved a National Digital Transformation Programme by 2025, with an orientation toward 2030. The strategy helps accelerate digital transformation through changes in awareness, enterprise strategies, and incentives toward the digitalisation of businesses, administration, and production activities.

The programme targets businesses, cooperatives, and business households that want to adopt digital transformation to improve their production, business efficiency, and competitiveness. The plan aims to have 80% of public services at level 4 online. Over 90% of work records at ministerial and provincial levels will be online while 80% of work records at the district level and 60% of work records at the commune level will be processed online.

The Philippines Completes Ground Station Network

The Philippines’ Department of Science and Technology (DOST) has finally opened the third Ground Receiving Station (GRS) in the province of Dumangas, Iloilo. This brings the total number of ground stations in the country to three.

The facility helps the DOST get the most out of its ability to send commands and images to Philippine satellites in orbit, like the Diwata-2 and others. Researchers at all three stations can use the facilities remotely and at the same time, thanks to the Iloilo GRS.

With the Iloilo GRS in place, there are now ground stations on three of the Philippines’ main island groups: Luzon, Visayas, and Mindanao. This strengthens its capacity to understand weather and lightning data, inevitably advancing the potential for disaster risk reduction and management.

This also gives scientists a chance to work on agricultural management projects and use technology to learn more about the maritime domain and even environmental issues like natural and man-made disasters.

The Iloilo GRS is one of the ground stations used to control the Diwata-2 microsatellite. It records the temperature, humidity, and data of multiple locations in real time. When the Diwata comes within the horizon of the GRS, it can talk to the microsatellite four times a day.

The number of images downloaded per day ranges between 40 and 50. The images are distributed to government agencies and local government units for disaster assessment, environmental monitoring, and maritime surveillance applications.

Through the project Understanding Lightning and Thunderstorms for Extreme Weather Monitoring and Information Sharing (ULAT), DOST-ASTI and Hokkaido University in Japan collaborated to build the Iloilo satellite tracking antenna. The project is also supported by the Japan International Cooperation Agency (JICA) and the Japan Science and Technology Agency (JST) as an Official Development Assistance (ODA) project.

The Iloilo GRS houses a 3.5-meter Earth Observation satellite tracking antenna, which supplements the activities and functions of the DOST’s two other ground stations.

The first satellite ground station, which houses a 3.7-meter antenna, was established in 2016 at the DOST Advanced Science and Technology Institute (ASTI) Building in Quezon City. The second one in Davao, which is equipped with a 7.3-meter tracking antenna located in the Civil Aviation Authority of the Philippines, was inaugurated in 2019.

The researchers from DOST-Philippine ASTI’s Earth Data Resource and Observation (PEDRO) Centre began testing the Iloilo GRS antenna until it is fully operational in 2022.

Aside from helping DOST-ASTI, the GRS in Iloilo is also meant to help the local community. It will do this by providing satellite image services to meet the needs of the local community in areas like monitoring mangroves and other agricultural areas. DOST also wants to teach people in the community how to use remote sensing applications to get the most out of the satellite images they are given.

Additionally, DOST-ASTI, Isabela State University (ISU)-Cauayan City Campus, DOST-Region 2, a blockchain technology startup, and Mindanao State University-Iligan Institute of Technology recently signed a Memorandum of Understanding (MoU) to support Computer Software Division (CSD) projects in the areas of Internet-of-Things, Blockchain, and AI technologies.

The MOU was signed with the assistance of ISU-Cauayan City Campus and DOST Region 2 to promote the use of the Kooha application in state universities and colleges, local government units, and the public and private sectors.

One goal is to make a system and do state-of-the-art research in Blockchain technology. Another goal is to find new ways to make machine learning and deep learning processes and methods more systematic and efficient for ASTI-ALaM (Automated Labeling Machine) and MSU-IIT.

The MoU is the beginning of a formal agreement between these agencies to promote, use, and keep these DOST-ASTI technologies going.

AI Could Contribute US$15.7 Trillion to Global Economy by 2030

The Comptroller and Auditor General of India (CAG), Girish Chandra Murmu, stated that by 2030, artificial intelligence (AI) could add US$ 15.7 trillion to the global economy. However, he has also expressed concerns about maintaining ethical standards in audits and safeguarding privacy in relation to the use of AI.

At a recent event, he explained that democratising AI technology is inevitable and has the potential to lead to socioeconomic growth, and it could be used to benefit citizens and the country through targeted and timely intervention. The CAG added that AI has the potential to solve issues in areas like healthcare, retail, finance, agriculture, food, water resources, environment and pollution, education, special needs, transportation, energy, public safety, disaster, management, and judiciary.

He also addressed concerns related to transparency and fairness. According to the official, these issues include the impact of AI on privacy, bias, and discrimination in AI systems, and an inadequate understanding of AI algorithms by the public. He highlighted the need for responsible AI.

While recognising the importance of sustainability, growth, and the role of emerging technologies, Murmu stated that responsible AI and the blue economy represent new-age opportunities and concerns. He explained the importance of prioritising the blue economy, which is an economic system that includes various policies and operational dimensions focused on conserving marine and freshwater environments while promoting their sustainable use. The blue economy aims to produce food and energy, support livelihoods, and act as a driver for economic advancement and welfare.

With the rapid growth of AI and machine learning (ML), experts predict that most businesses will shift to AI-powered systems, apps, security systems, data analysis, and other applications in the future. AI is expected to add US$ 967 billion to India’s economy by 2035 and US$ 450–500 billion to India’s GDP by 2025, accounting for 10% of the country’s US $5 trillion GDP target.

In December, OpenGov Asia reported that India ranked 32^nd among 181 nations in the AI Readiness Index 2022. The government claimed that the world is beginning to see the impact of India’s National AI Strategy, published in 2018. The quality of India’s IT talent pool is a contributing factor.

The country has developed several initiatives aimed at embedding AI use throughout all levels of government and society, as well as ensuring that technological developments reinforce India’s place in the international realm. For example, its draft National Data Governance Framework aims to transform and modernise the government’s data collection and management processes and systems. The government has also set a target to train three million government officials in AI and other emerging technologies.

Recently, the National Institute of Transforming India’s (NITI Aayog) Atal Innovation Mission decided to upskill the education sector by adding IT skills to the formal curriculum. The larger aim is to align the National Education Policy 2020’s (NEP 2020) guidance to increase the pace of tech integration for youth, bridge the future skills gap in the country, and optimise the current infrastructure (including Atal Tinkering Labs) towards making India AI-ready.

The new methodology will enable the shift in teaching pedagogies from traditional to digital with several additional benefits and increased efficiency. Integrating AI with lesson plans and making them part of everyday teaching-learning activities can help enable the students to imbibe the digital-first mindset.

Vietnam Ramps up Mobile Communication Safety

The Ministry of Information and Communications (MIC) is cracking down on telecom carriers that do not stop junk SIM cards in the market. Mobile network operators have been instructed by the Authority of Telecommunications (AOT) to ensure that all the necessary authentication information of the subscriber is provided when registering.

Telecom carriers need to update procedures and regulations on registering subscribers’ information following Decree 49/2017. In addition, mobile network operators are required to uphold their commitments with MIC and comply with the requests outlined in the legal documents issued by AOT. The agency intends to collaborate with local information and communications departments to oversee and inspect enterprises’ implementation process.

Enterprises that engage in serious violations, such as providing services to new subscribers with insufficient or inaccurate information or selling pre-entered SIM cards with activated mobile services, will be forced to halt the registration of new subscribers, the government has said.

MIC is considering strict punishment like suspending the right to register new subscribers for 3-6 months if telcos are found committing violations of regulations on mobile subscriber management. This is the first time that MIC has put in place heavy sanctions on mobile network operators.

Experts have noted that despite measures to punish violators, junk SIM cards still exist because the regulations are not respected. Despite making repeated promises to prevent the circulation of junk SIM cards, telecom carriers have failed to effectively address the issue and junk SIM cards are still in circulation.

According to MIC, Vietnam has 126 million mobile subscribers, and the market has become saturated. Annually, telecom carriers vie for 800,000 new subscribers, but they cannot alter their market share by simply competing for new subscribers. Hence, it is imperative to strengthen the registration process for new subscribers.

In Ho Chi Minh City, it is not hard to buy a pre-activated SIM card from popular carriers like state-run Viettel for only US$ 3-8.5 without the need to produce identification documents. It can be used instantly when inserted into a mobile phone. The price of a junk SIM card depends on the specific number and current promotion programmes of mobile service providers. For instance, at present, the price for a card from Viettel is US$ 6.8.

By combining junk SIM cards with popular communication apps, criminals can spread fake news or images, building their credibility and gaining the trust of their victims for future scams. The use of virtual phone numbers that are not tied to any specific location or physical device makes managing them extremely challenging. Criminals are exploiting this to activate Over-the-Top (OTT) applications with ease, which can be used for illegal activities.

After 31 March, a large number of mobile subscribers without standardised information will be deactivated. The Deputy Head of the Vietnam Telecommunications Authority explained that it is not feasible to prohibit individuals from owning multiple SIM cards as they may require them for business purposes. However, to limit the use of SIM cards for malicious activities, when an individual wants to own more than three SIM cards, they must sign a contract with the mobile carrier.

The official also highlighted that one of the key priorities of the telecoms industry for 2023 is to fully resolve the problem of SIM cards with incorrect or missing identity information of their owners. Additionally, efforts will be made to raise public awareness about the risks of using junk SIM cards.

March 28, 2023

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