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Vietnam to Formulate National Strategy on Digital Economy

Vietnam’s Prime Minister, Pham Minh Chinh, recently urged the Ministry of Information and Communications (MIC) to finalise and submit a national strategy on developing the digital economy and society by August this year. According to a press release, several other countries have already introduced strategies and programmes on digital transformation in a bid to optimise opportunities from the fourth industrial revolution (Industry 4.0).

In Vietnam, the digital economy and society have been growing rapidly, supported by the well-developed telecom and IT foundation, high Internet coverage, and a huge number of Internet users. The country is located at the centre of the Southeast Asian region and is poised to be a global hub of digital technology and the digital economy.

However, the country is coping with several limitations, including a favourable legal system for the digital economy, and especially a strategy on digital economy and digital society. The new strategy is expected to set a sound direction for ministries, sectors, and localities to get involved in the field.

In 2020, Vietnam kicked off a national digital transformation programme, under which the country will renovate management and administration activities of the government, production and business activities of enterprises, and the overall way of living and working. It aims to develop a safe, humane, and wide digital environment. The national digital transformation programme has the dual purpose of both developing the digital government and economy and establishing Vietnamese digital businesses with a global capacity.

In a press statement, MIC Minister, Nguyen Manh Hung, said that if Industry 4.0 is considered an institutional revolution, with changes in management and business models, Vietnam has many opportunities. It will be the revolution of new technologies in physics, biology, artificial intelligence, big data, IoT, and 3D printing, which can create landmark changes in the way people live. The Politburo has issued Resolution 52, which defines eight groups of policies for Vietnam to actively participate in the Industrial Revolution 4.0:

  • Renewing thinking, unifying awareness, strengthening the Party’s leadership, State management over the Industrial Revolution 4.0
  • Perfecting institutions to facilitate the 4th Industrial Revolution and digital transformation
  • Developing essential infrastructure, especially digital infrastructure
  • Developing the national innovation capacity
  • Human resource development
  • Developing priority industries and technologies
  • International integration
  • Promoting digital transformation

Vietnam’s digital economy will likely reach US$52 billion in value by 2025, as OpenGov Asia had reported. With the gross merchandise value (GMV) of its Internet economy accounting for over 5% of the country’s GDP in 2019, Vietnam is emerging as the most digital of all economies in the region.

Last year, the Vietnamese internet economy continued to record double-digit growth, at 16% year-on-year, the highest in Southeast Asia. All sectors except travel continued to grow in 2020, of which transport and food, and online media grew 50% and 18% compared to 2019. Only online travel dropped 28% in terms of GMV but is expected to grow 25% by 2025. This year’s seismic consumer and ecosystem shifts have advanced the Internet sector in unimaginable ways, putting it in a stronger position than ever.

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