February 23, 2024

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Vietnam Develops Plans to Accelerate Digital Transformation

Prime Minister Pham Minh Chinh has called for fundamental and comprehensive reforms in digital transformation to enhance labour productivity and the competitiveness of both enterprises and the nation. These reforms are aimed at promoting the development of an independent and self-reliant economy that can integrate extensively and effectively with the global economy.

Chinh, who is also Chairman of the National Committee for Digital Transformation, said that digital transformation is a critical and ongoing task that must be implemented at all levels, sectors, and localities, with active participation from the entire population. However, there is a need to prioritise tasks efficiently to prevent redundancy and unnecessary expenditure.

At present, all enterprises have e-invoices while e-commerce revenue accounts for 7.5% of the total retail value. Up to 75% of households have broadband Internet access, 30.07% of small and medium-sized enterprises use digital platforms, and 85% of the population use smartphones. As of late February, over 177 million files were processed on the National Public Service Portal, over 8 million of which were in a digital format.

The Prime Minister highlighted that digital government is a crucial driving force that is leading the development of a digital economy, digital citizenship, and digital society. He emphasised that people and businesses should be at the centre of these digital efforts and that they should be provided with high-quality services.

Regarding future key tasks, he asked the National Committee for Digital Transformation and relevant steering committees of ministries, agencies, and localities to develop plans that focus on the theme of the National Year of Digital Data, with clear roadmaps, goals, and responsibilities for those involved.

The government intends to launch 53 key public services in line with Scheme 06 and the PM’s Decision 422/QD-TTg. It will connect online public services with the National Public Service Portal to save time and costs and mitigate corruption and fraud. Citizens are not required to submit residential status certificates while handling administrative procedures, the Minister stressed.

He also assigned specific tasks to the Ministry of Public Security, the Ministry of Information and Communications, the Ministry of Justice, the State Bank of Vietnam, the Ministry of Labour, Invalids and Social Affairs, and the Ministry of Natural Resources and Environment.

Last year, Vietnam ranked 63rd out of 113 global economies in a global ranking of digital environments and support systems for entrepreneurs, according to the Asian Development Bank (ADB). The Global Index of Digital Entrepreneurship Systems (GIDES) put Singapore in the first place, followed by the United States and Sweden. In Asia, Indonesia ranked 71st, India ranked 75th, and the Philippines ranked 79th. 17 of the 21 developing Asian economies included are ranked toward the bottom, underscoring the need for these economies to nurture digital entrepreneurship.

As OpenGov Asia reported, digital entrepreneurship helped economies stay afloat during the COVID-19 pandemic, and it has the potential to become a major engine of growth and innovation in the post-pandemic world. For this to happen, there needs to be a supportive environment enabled by conducive policies and incentives. While the environment for Asia’s digital entrepreneurs made substantial strides in the past couple of years, there’s still a lot of room for improvement.


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